Updated presentation on our re-start plans for the past producing Puffy Lake Mine.
Auriga Gold Corp. is an emerging Canadian gold producer focused on re-starting the Puffy Mine and expanding gold resources on its Puffy and Nokomis gold deposits (collectively the "Maverick Gold Project"). The Company plans to upgrade and expand the resources at the Maverick Gold Project, initiate test mining, complete feasibility studies of mineral reserves, and bring the Puffy Mine back into production. The Puffy Mine includes a 1,000 tpd flotation mill with a replacement value in excess of $50 million, over 7,000 meters of developed underground ramp to 135 metres depth, is fully road accessible and close to existing mining infrastructure. The Maverick Gold Project is located in the Flin Flon Greenstone Belt of Central Manitoba. To view current images of the property and mill, please see www.aurigagold.ca/s/photogallery.asp
1. TSX-V: AIA
April 2014
Maverick Gold Project
Advancing toward Gold Production in 2013
Near Term Gold Production
In Manitoba Canada
2. AIA:TSXV
Forward-Looking Statements
2
Some statements contained in this presentation are forward-looking and, therefore,
involve uncertainties or risks that could cause actual results to differ materially. Such
forward-looking statements include comments regarding mining and milling operations,
mineral resource and reserve statements and exploration program performance. Factors
that could cause actual results to differ materially include metal price volatility, economic
and political events affecting metal supply and demand, fluctuations in mineralization
grade, geological, technical, mining or processing problems, exploration programs and
future results of exploration programs, future profitability and production.
Historical resources in this presentation are historical estimates that predate NI 43-101
and are not compliant with current definitions, and have not been verified by the
company; consequently, they should not be relied on by investors.
www.aurigagold.ca
3. AIA:TSXV
Auriga Gold Management and Directors
Finance, Development and Operational Expertise
3www.aurigagold.ca
Gorden Glenn, Chairman, President & CEO
Over 25 years experience in the financial industry as Investment Banker
(TD Securities and Desjardins) and Research Analyst as well as various
roles in mining companies evaluating economic and technical validity of
mostly Canadian projects.
James D.A. White, Director
Mr. White is the Managing Partner of Baynes & White, a Toronto-based
pension and benefits actuarial consulting firm.
Brian Robertson, P.Eng., Director
Over 30 years experience in corporate management, exploration
programs, project management, mine permitting, construction,
development and operation as well as the evaluations or corporate
acquisitions.
Chris Irwin, LL.M., Interim CFO, Director
Mr. Irwin is President of Irwin Professional Corporation, a corporation
providing legal services mainly to the natural resource sector.
TBD, New Director
Operations and development experience
TBD, New Director
Operations and development experience
Board of Directors
Consultants and Advisors
Notice of Alteration for Open Pit Development (NOA) – April 2014
Water Permit Application – April 2014
Nokomis Initial NI 43-101 Compliant Resource – April 2014
New PEA– June 2014
PEA to incorporate updated Resources (PL and Nokomis), new open pit mine plan
and Minrail SAMSTM technology in new u/g mine plan
PL Deposit Resource Update – April 2014
New Underground Mine Plan – April/May 2014
To be incorporated in Updated PEA – June 2014
Test Mining – Fall 2014
A Century of Exploration, Development, Operations and Finance Experience
4. AIA:TSXV
Near Term Gold Production Opportunity
www.aurigagold.ca 4
Strategic Advantage = Superior Gold Investment Opportunity
• Favourable mining jurisdiction in Manitoba with significant infrastructure in place
• Low $18 million capital requirement to re-start gold production at +40,000 oz per year
• Existing mining lease with associated operating permits in place
• Lower risk open pit mine start-up scenario developed
• Underexplored regional gold bearing geological environment
High Leverage to Gold Price
• Low Shares Outstanding
• Attractive valuation Enterprise Value/ounce and Au oz/share vs peer group companies
• Management experienced at discovery, resource expansion, development and
operations
Near-term Objectives
Updated NI 43-101 complaint Resources – M&I Rsc 327,900 oz and Inf Rsc 438,600 oz
• Targeted drilling to convert Inferred resources to Measured+Indicated
• Update PEA to include new resources and new underground mine plan using Minrail’s
SAMSTM technology
• Underground test mining program fall 2014
Success of 2014 Work Program will Support Re-Start of Gold Production in 2015
5. AIA:TSXV
Maverick Gold Project Location
Flin Flon Gold and VMS Base Metal District
5
A Proven Gold Mining Camp with Excellent Infrastructure
MAVERICK GOLD PROJECT
FLIN FLON
SNOW LAKE
SHERRIDON
CRANBERRY LAKE
6. AIA:TSXV
Auriga’s Path To Production
www.aurigagold.ca 6
July 2012 to December 2013
Corporate Restructuring
Re-focus on MGP
Reduce Burn rate
H1/2014
Initial Nokomis NI43-101 Resource
Updated PL Deposit Resource
Update mine plan/detailed engineering
Updated PEA/PFS
Re-Start Efforts Delayed by Weak Equity Capital Markets
November
2010
Initial PL
Deposit NI43-
101 Resource
PEA
January
2012
Property
Acquisition
$3.5 mln
August
2011
January
2012
AIA.V vs HUI
7. AIA:TSXV
Maverick Gold Project, Then and Now
Re-start of Mining Operations Targeted for Late 2015
7
Historic Mine Development/Operations
Operated from Jan -88 to Apr-89 by Pioneer Metals
Produced 29k oz from 1988-1989 from 370,000 tonnes
1987 Kilborn feasibility recommended 500 tpd mill:
Capex: ~32 mln in 1987/88
Pioneer actually built mill with capacity of 1,000 tpd
Mill still in excellent condition today
6.9 km u/g drifting to a vertical depth of 130 m
1993 Kilborn feasibility Rsc and Rsv:
Resource: 524,376 oz @ ~7.6 g/t Au
Reserve: 184,200 oz @ 6.7 g/t Au
Auriga Gold Development Work at Maverick
Updated PL and New Nokomis Resource Estimates
– Total Measured and Indicated mineral resources
increased by 88% to 327,900 ounces gold
– Total Inferred mineral resources 438,600 ounces
– In Pit Measured and Indicated resources
increased by 279% to 121,100 ounces Au
grading 4.01 g/t Au
Positive PEA on open pit and U/G mining re-start
Low capital cost - $18.1 million
Production - 40,000 oz per yer
NPV (pretax 5%): $95.4 Million
(pretax 8%): $79.6 Million
IRR (pretax) 84%
Exploration and re-start upside
PL Deposit still open at depth and along strike
Numerous geophysical targets identified
M Zone on West Limb of Puffy Fold
New PEA for 2014 to include:
New Nokomis in pit resource
New open pit and underground mine plan
Minrail SAMSTM test stope planed fall 2014
www.aurigagold.ca
Tonnage(tpd)
Grade(g/t)
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
0
200
400
600
800
1000
1200
Jan-88
Feb-88
Mar-88
Apr-88
May-88
Jun-88
Jul-88
Aug-88
Sep-88
Oct-88
Nov-88
Dec-88
Jan-89
Feb-89
Mar-89
Apr-89
Tonnage Grade
2014 Program Focused De-Risking and Resource Optimization
8. AIA:TSXV
Auriga Gold Corp. Capital Structure
8
Auriga Gold Corp. (AIA: TSX-V)
Share data and cash position as of March 24, 20141
Shares Outstanding 15,336,251
Warrants and Options O/S 1,299,794
Fully Diluted 16,636,045
Market Capitalization ~$4.5 million
Cash Position (March/14) $0.5 million
Debt ~$1.3 million
Options and Warrants
Warrants /
Options
Avg.
Exercise
Price
Options 782,500 $0.90
Common share warrants 2 517,294 $4.67
2) Expiring between April 2014 – February 2017
Significant Holders Ownership
Management and Directors ~9.0%
Pioneer Metals (Barrick Gold) ~4.1%
AIA: TSX-V Share Price
Source: tmx.com and Auriga Gold
www.aurigagold.ca
1) Shareholders approved a 10 old for 1 new consolidation Jan. 2, 2014
Low Shares Outstanding = High Leverage to Gold Price and Production
9. AIA:TSXV
Maverick Gold Project
Existing Infrastructure – Permits - Resource Expansion Potential
9
Historic Au Production
• Produced 28,000 oz from 1988-1989
• Existing 1,000 tpd mill
• 7,000 m underground mine workings
• Limited exploration on property
Resource Expansion Potential > 1 M oz Gold
• NI-43-101, M+I Rsc 327,900 oz Au and Inf Rsc of
438,600 ounces
• Expand and upgrade gold resources at PL and
Nokomis deposits by step out and infill drilling
• Bonanza grades at Nokomis - 7.63 m with
125.08 g/t Au at Nokomis
• Numerous drilling targets outlined from VTEM
survey along 20 km gold bearing horizon
• M Zone target – 1.5 km anomaly
• Drill hole A3-48 in 2011 intersected
0.50m @ 23.68 g/t Au at depth of
~250m vertical
• Follow-up ddh planned for 2014
Existing Infrastructure and Permits = Strategic Advantage
10. AIA:TSXV
10
Maverick Gold Project
PL Deposit – Geology Surface Plan and Section
OPEN
PL Deposit
Updated NI 43-101 Resource April 14 2014
In Pit M&I Rsc increased by 151% to 80,400 oz Au @4.40g/t
Underground M&I Rsc increased by 46% to 206,800 oz Au
@5.93g/t
www.aurigagold.ca
A3-85 – 2.3 m @
12.6 g/t Au and 0.5
m @ 24.3 g/t Au
A3-83 – 2.0 m
@ 12.0 g/t Au
A3-84 – 6.2 m
@ 7.6 g/t Au
A3-81 – 1.7 m
@ 47.2 g/t Au,
incl. 0.5 m @
145.5 g/tAU
Resource Still Open Down Dip to North East
11. AIA:TSXV
11
Community and Social Responsibility
Sherridon – Cold Lake, Manitoba
www.aurigagold.ca
Strong Local Community Support
• May 7, 2014 Community Update meeting - President and CEO Gorden Glenn and Director Brian
Robertson provide MGP update and respond to questions and concerns of the local community
• Sherridon - Cold Lake, Manitoba is located approximately 13 km north of the MGP
• The MGP and the local community share regional infrastructure including an all weather road, the
Keewatin Railway Company (KRC) and access to low cost, clean hydro power
• We also share the same vision of re-starting sustainable, mining operations with minimal impact
to the environment
• The community of Sherridon - Cold Lake, Manitoba expressed their strong support of the MGP
12. AIA:TSXV
Maverick Gold Project - PEA
From Jan. 2012 - based on Aug. 2011 NI 43-101 Resource Estimate
12
• Open pit cost anticipated at $650/oz
excluding sustaining capital
• 20.3% of gold production from initial
low-risk open pit production
• $949/oz average LOM operating cash
cost including $77/oz sustaining capital
• $18.1 million Capex to
production
• $130.5 million cumulative cash
flow at $1400/oz
• Payback in 20 months
www.aurigagold.ca
$50,000,000
$25,000,000
$0
$25,000,000
$50,000,000
$75,000,000
$100,000,000
$125,000,000
$150,000,000
$175,000,000
$200,000,000
oz
10000 oz
20000 oz
30000 oz
40000 oz
50000 oz
60000 oz
Ounces
Recovered
Cumulative
Cash Flow at
$1400 /oz Au
Cumulative
Cash Flow at
$1600/oz Au
-1 1 2 3 4 5 6 7 8 -1 1 2 3 4 5 6 7 8
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
oz
10000 oz
20000 oz
30000 oz
40000 oz
50000 oz
60000 oz
U/G
Open Pit
Operating
Cost/oz
Total
Op+Sust
Cost/oz
Short Payback, Attractive Sub-$1000/oz AISC
13. AIA:TSXV
Maverick Gold Project – Positive PEA
From Jan. 2012 - based on Aug. 2011 NI 43-101 Resource Estimate
www.aurigagold.ca 13
Average Annual Production: 45,000 oz/annum Au
Recoverable Gold1: 348,000 recovered oz Au @ avg. of 5.8 g/t Au diluted
20.3% from open pits; 79.7% from u/g
Milling Rate: 750 tpd 1
Mill Recovery: 90%
Life of Mine: 7.5 years
Total CAPEX: $18.1 M
(incl. $3.02 m contingency)
Average LOM C2 cash cost: CAD$949/oz
Undiscounted Cash Flow (pretax) :$130 M
Payback : 20th month
of processing ore
NPV (pretax, 5%) 2: $95.4 M
IRR (pretax): 84%
1. Initial Mine Plan in February 2012 PEA 2. Based on gold at USD$1400/oz
Gold price, operating cost and
capital cost sensitivity analysis @ 5% NPV
Updated PEA Planned for Q2 2014
14. AIA:TSXV
Maverick Gold Project – PL Deposit
Longitudinal Section Facing West
14
Longitudinal section looking west showing existing underground workings, proposed open pits,
and proposed stopes from all zones. January 2012 PEA and August 2011, NI43-101 Resource Estimate
Pit 1
Recovered Ounces
Open Pits:
Pit 1: 20,760 oz
Pit 2: 4,950 oz
Pit 3: 6,060 oz
Pit 4/5: 37,740 oz
Total Pits: 69,510 oz
Underground Mining
Areas:
Area 1: 49,000 oz
Area 2: 124,000 oz
Area 3: 108,000 oz
Area 4: 23,000 oz
Total Undergound:
304,000 oz
Pit 4/5
Pit 1 Pit 2 Pit 3
www.aurigagold.ca
AREA 1
AREA 3
AREA 2
AREA
4
Updated PEA to Include Optimized Open Pit and Underground Mine Plans
16. AIA:TSXV
New Underground Mine Plan – SAMSTM
Specialized Shallow Angle Mining System
16
• Innovative modular concept and
design
• Very high proportion of the mining
tasks are mechanized
• Eliminate the use of manual drills for
drift development
• Jackleg vs Long Tom and Jumbo
• Introduction of long hole productivity
techniques
• Hydraulic vs pneumatic
• Enhanced work conditions and
modular design result in higher
productivity
• www.minrail.ca
www.aurigagold.ca
Auriga is De-Risking MGP with New Underground Mine Plan and Innovative SAMSTM
SAMSTM developed by Minrail Inc., of Val-d'Or Quebec
Minrail has developed a unique and innovative mining system for shallow-angle mining operations
(S.A.M.S.™) that promises to revolutionize mining operations as we know them today.
17. AIA:TSXV
Old Underground Mine Plan – Conventional
17www.aurigagold.ca
Accepted Narrow Vein Mining Methods are Manually Intensive and Less Productive
18. AIA:TSXV
New Underground Mine Plan – SAMSTM
Specialized Shallow Angle Mining System
18www.aurigagold.ca
Innovative Mechanized Rail-Based System is Safer with Higher Productivity
19. AIA:TSXV
Maverick Gold Project – Exploration Upside
19
Targeting in excess of 1,000,000 ounces gold
Well-defined major regional gold
mineralized structure at the northern
border of Flin Flon greenstone belt
Drill program planned to expand resources
Maverick Property covers over 20km
of strike length
Target has well-defined geophysics trend
with several showings found along strike
Updated MGP NI 43-101
In Pit M+I Rsc 121,100 oz @ 4.01 g/t
Au
Underground M+I Rsc increased by
46% to 206,800 ounces Au
Total M+I Rsc 327,900 @ 5.93g/t Au
Total Inf Rsc 438,600 ounces Au
M Zone
Drill hole A3-48
0.50m @ 23.68 g/t Au
PL Deposit
and Onsite Mill
Nokomis Deposit
Ind Rsc 40,700 oz Au
Inf Rsc 19,100 oz Au
www.aurigagold.ca
Property Unexplored away from Known Deposits
20. AIA:TSXV
Maverick Gold - Nokomis Deposit
Satellite Deposit just 8km Northeast from the Maverick Mill
20
• Potential open pit satellite deposit
• Confirmation drilling program complete
• Indicated mineral resource of 40,700 ounces
• Inferred resource of 19,100 ounces of gold
• Initial high-grade gold intercepts
• 125.08 g/t over 7.6 m (incl. 1,830 g/t over 0.5 m);
• 12.27 g/t over 5.2 m;
• 5.1 g/t over 6.4 m;
• 9.65 g/t over 5.6 m (incl. 62.23 g/t over 0.5 m)
High-grade near-surface
mineralization
www.aurigagold.ca
Incremental Mill Feed from Nokomis Enhances MGP Economics
21. AIA:TSXV
VTEM anomaly on western
limb of the Puffy fold has
strike length of over 1.5 km
Historic drilling only tested
horizon at very shallow depths,
well up dip from the top of the
conductor
2011 AIA drill hole successfully
tested the down dip projection
of horizon and intersected
significant gold mineralization
23.7g/t over 0.5 m at 250 m
Priority target for follow-up
drilling in 2013/14
Maverick Gold Project – M Zone
Significant Exploration Upside
21
High Priority target for Follow-up Drill Program
22. AIA:TSXV
Maverick Gold Project
Near Term Gold Production with Significant Expansion Potential
22
Area
consolidation
Toll milling
opportunities
Resource
expansion on
major structure
++ Extend
Mine Life
Exploration
success on
Maverick
Gold
M Zone
Exploration
Maverick
Property
covers 20
km of major
regional
mineralized
structure
+ Resource
Expansion
Nokomis
Deposit
In Pit Indicated
Resource
40,700 oz
In Pit Inferred
Resource
26,100 oz
8 km from Mine
and Mill
Contributes to
full mill capacity
at 1000 tpd
>50,000 oz/yr
Combined
U/G and
open pit
PEA Study
750 tpd
7.5 year
mine life
348,000
recovered
gold ounces
45,000 oz/yr
www.aurigagold.ca
Solid Plan for Growth and Value Creation
23. AIA:TSXV
Auriga Gold Investment Highlights
23
Near-term gold production, with excellent exploration upside
Past producing property, with significant onsite infrastructure
1,000 tpd mill, ancillary facilities, ramp and underground workings
Road access to property, access to grid power and railway
Permitted for quick re-start
April 2014 NI 43-101 Resource Estimate:
Total M+I Rsc 327,900 @ 5.93g/t Au
Total Inf Rsc of 438,600 ounces Au
Open pit and shallow underground
Positive 2012 PEA on U/G and open pit test mining on near surface resources
Annual production of 45,000 ounces at C2 cash cost of $949/oz
CAPEX: $18.1 Million;
un-discounted cash flow: $130 Million
Management experienced at discovery, resource expansion, development and
operations
Resources, PEA and mine plan being updated Q2 2014
www.aurigagold.ca
AIA’s Value Proposition is One of the Best in the Jr Gold Development Sector Today
24. AIA:TSXV
24
For more information:
Auriga Gold Corp.
AIA:TSXV
+1 416 985 2785
365 Bay Street, Suite 400
Toronto, Ontario
M5H 2V1
www.aurigagold.ca
AIA_AurigaGold
AIA.AurigaGold
Contact Information