Brent Murdoch
20 August 2014
Forward Looking Statements
This presentation contains forward-looking statements within the meaning of the U.S. Securities...
Mt Todd Gold Project
• Acquired by Vista Gold and its wholly owned subsidiary Vista Gold Australia in 2006.
• Vista Gold i...
Mt Todd Update
• Site purchased in 2006 from NT Government
• Agreement in place with NT Government and Jawoyn
Association
...
Mt Todd Update
• Vista controls 1,100 km2 of highly prospective land that
has historically been underexplored
• Defined Re...
Mt Todd Water Management
• Water releases are required as Mt Todd collects a net of
1.5GL each year
• The site is almost a...
Mt Todd Approvals
Current
• Waster Discharge licence – is now up for renewal
• NOI for 55k tonnes processed per day submit...
The Approvals Process
• This talk will cover Mining approvals required to
transition from Exploration to Production (which...
Approvals
9
 There are four main permits / approvals required
 Notice of intent (NT)
 EIS (NT) – controls anything goin...
The Northern Territory Mineral Titles Act 2010 (and the Mineral 
Titles Regulations) are the laws under which exploration ...
Summary of the Process
The “Mine
Operator”
submits either a
“Notice of Intent”
(NOI) or a “Mine
Management
Plan” (MMP) to
...
MMP – Recent Changes
The MMP is a document with a future facing
perspective and content covering a plan of
operations or a...
Summary of the Process
The DME makes
an initial
assessment
based on the
NOI or MMP to
determine if
there is potential
for ...
Summary of the Process
Dependant on
the Potential for
“Significant
Harm” to the
environment one
of the three
options are
e...
Summary of the Process
The EPA
parameters for
assessment are
unknown
Is this an objective
or subjective
process?
15
16
Approvals for a Mine - DME
17
Approvals for a mine - EPA
18
Environmental Impact Statement
19
Public Environmental Report
20
EIS Guideline
• The EPA has a 6 page
guideline for an EIS on the
web.
• The actual process is the
EPA develops a specific
...
22
23
24
Commonwealth Approvals
• EPBC Act (Environment Protection and Biodiversity 
Conservation Act 1999) can add requirements
• ...
Commonwealth Approvals, cont.
Significant impact
• A significant impact is an impact which is 
important, notable, or of c...
Mt Todd
• To date all of the identified species on the 
threatened list have been deemed to suffer 
a “Significant Impact”...
NT Currently
• DME is referring all NOI’s and MMP’s to the EPA 
for assessment
• The EPA seemed to be assessing all mining...
• The intent of the various Act’s and Reg’s is to have 
activities that have the POTENTIAL for SIGNIFICANT 
HARM to the en...
Where to from Here ‐ Approvals?
• Submit and have our Operating MMP 
approved by the DME
• Satisfy the Commonwealth Enviro...
Where to from Here ‐ Project
• Continue to undertake the Care and Maintenance 
activities at Mt Todd
• Assist the NT Gover...
MT Todd’s EIS Timeline
32
Social License
Open dialogue
• Key stakeholder and
community meetings
• Trusted source of
information
• Feedback channels
...
Community Engagement
www.mttodd.com.au
• Regular updates
• Reporting on key indicators for
water treatment and discharge
•...
Questions?
www.mttodd.com.au
35
Mt Todd Inventory
• Vista growing higher-quality Measured & Indicated category ounces
• Cutoff grade maintained at 0.4 g/t...
Mt. Todd Reserves and Resources
37Note: Measured & Indicated Resources include Proven and Probable Reserves.   Batman and ...
Mt. Todd Mining Plan
Slide 38
Vista’s Technical Evaluation
Three issues jointly caused Mt Todd to fail in the past – all manageable
• Hard ore – Pegasus...
Mt Todd Process Flowsheet
Slide 40
Mt. Todd Processing
Plant Video
Mine Closure – Map of Footprint
Mt Todd – Prefeasibility Study
50,000 tpd mill operation
(Base Case)
33,000 tpd mill operation
(Alternate Case)
Open Pit R...
Item PFS level analysis FS level analysis Mt. Todd level
Geologic Assessment Basic assessment and Review
Detailed assessme...
Mt Todd – Prefeasibility Study
Slide 45
Operating Cost – Base Case (50,000tpd) First 5 Years Cost Life of Mine Cost
Per to...
Economic sensitivity to Au and AUD
46
Mt. Todd Gold Project
NPV (5%), in Millions
Sensitivity Table
$1,300/oz Au
NPV / IRR...
Reclamation and closure – waste
rock dump
47
Reclamation and closure – waste
rock dump
48
Adding Limestone to Batman Pit
RP3 Pumping Infrastructure
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Brent Murdoch - Vista Gold - Mt Todd Gold Project – A year in approvals

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Brent Murdoch delivered the presentation at the 2014 Mining the Territory Conference.

With record year on year investment in mining developments and exploration in the Northern Territory, the 8th Annual Mining the Territory Conference is perfectly placed to hear latest information on this booming region.

For more information about the event, please visit: http://bit.ly/MiningtheNT2014

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Brent Murdoch - Vista Gold - Mt Todd Gold Project – A year in approvals

  1. 1. Brent Murdoch 20 August 2014
  2. 2. Forward Looking Statements This presentation contains forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, and forward-looking information within the meaning of Canadian securities laws. All statements, other than statements of historical facts that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including future business goals, strategy and plans, competitive strengths, growth of Vista’s business, project development, valuation of Vista relative to other resource companies; Vista’s potential status as a producer including plans and timing, mineral reserve and mineral resource estimates, future mineral reserve and mineral resource projections, scheduling, mine plans, performance of and results of preliminary feasibility and feasibility studies, the timing and completion of the preliminary feasibility and feasibility studies on the Mt. Todd gold project and the evaluation of a larger plant at the Mt. Todd gold project, the development of the Mt. Todd gold project into a world-class deposit and Australia as a favorable mining jurisdiction, the anticipated growth of the mineral resource estimate and the ability to increase the estimated contained gold ounces at the Mt. Todd gold project, ability to process hard ore at the Mt. Todd gold project, expected gold recovery rates at the Mt. Todd gold project, the modifications necessary to existing infrastructure at the Mt. Todd gold project, potential for favorable implications and timing of gold production from the existing heap leach pad at the Mt. Todd gold project, including the ability to generate early project revenues from the heap leach pad, timing for permitting, completion of future studies, exploration, testing and completion of an environmental impact statement at the Mt. Todd gold project, risks relating to the future effectiveness of the water treatment program and risks related to the discharge of water into the Edith River; the potential effects of Major Project Status for allowing project decisions to be made in an efficient and timely manner and minimizing the potential for delays in obtaining critical decisions; risks related to the exploration and preliminary economic assessment (“PEA”) results at Guadalupe de los Reyes gold/silver project (“GDLR”); potential for high grades of minerals at GDLR, Vista’s continued exploration at GDLR, conventional processing could result in high recovery of minerals at GDLR, risks related to Invecture Group completing the earn-in rights; the exploration and development success at the Golden Meadows project; the value and upside potential at the Golden Meadows project and the potential value of Vista’s investment in Midas and other such matters are forward-looking statements and forward-looking information. The material factors and assumptions used to develop the forward-looking statements and forward-looking information contained herein include the following: the Corporation’s approved business plans, exploration and assay results, mineral resource and reserve estimates and results of preliminary economic assessments, preliminary feasibility studies and feasibility studies on Vista’s projects, if any. When used in this presentation, the words “estimate,” “plan,” “anticipate,” “expect,” “intend,” “believe,” “will” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, uncertainty of preliminary assessment results and of feasibility study results and the estimates on which such results are based; risks relating to scheduling for feasibility studies; risks relating to cost increases for capital and operating costs including cost of power; risks relating to delays in commencement and completion of construction at the Mt. Todd gold project; risks of shortages of equipment or supplies; risks of inability to achieve anticipated production volume or manage cost increases; risks relating to the future effectiveness of the water treatment program and risks related to the discharge of water into the Edith River; risks related to project decision making processes of the NT Government changing or taking longer than expected; risks that Vista’s acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning mineral reserve and mineral resource estimates; potential effects on Vista’s operations of environmental and other government regulations in Canada, the United States and in the countries in which it operates; risks related to the exploration and preliminary economic assessment results at Guadalupe de los Reyes; risks relating to obtaining the CUSF and EIS permits required for the Las Cardones gold project; risks relating to Vista’s receipt of future payments in connection with our disposal of the Amayapampa gold project; risks related to the development of the Awak Mas project; risks due to legal proceedings; uncertainty of being able to raise capital on favorable terms or at all; risks relating to repayment of debts; possible challenges to title to Vista’s properties; risks from political and economic instability in the countries in which Vista operates; intense competition in the mining industry; recent market events and conditions; and external risks relating to the economy and credit markets in general, uncertainty of resource estimates, estimates of results based on such resource estimates; risks relating to completing metallurgical testing; risks relating to cost increases for capital and operating costs; as well as those factors discussed under the headings “Note Regarding Forward-Looking Statements” and “Risk Factors” in Vista’s latest Annual Report on Form 10-K (as amended), Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward- looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Except as required by law, Vista assumes no obligation to publicly update any forward-looking statements or forward-looking information; whether as a result of new information, future events or otherwise. Cautionary Note to U.S. investors Concerning Estimates of Proven and Probable Mineral Reserves: The estimates of mineral reserves shown in this presentation have been prepared in accordance with the definition standards on mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The definitions of proven and probable reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. Accordingly, Vista’s disclosure in this presentation of mineral reserves may not be comparable to information from U.S. companies subject to the reporting and disclosure requirements of the SEC. Cautionary Note to U.S. Investors Concerning Estimates of Measured and Indicated Resources: This presentation uses the terms “measured resources,” “indicated resources” and “measured and indicated resources.” We advise U.S. investors that while these terms are recognized and required by Canadian regulations, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. The term “contained gold ounces” shown in this presentation is not permitted under the rules of the SEC. U.S. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into SEC Industry Guide 7 reserves. Cautionary Note to U.S. Investors Concerning Estimates of Inferred Resources: This presentation uses the term “inferred resources.” We advise U.S. investors that while this term is recognized and required by Canadian regulations, this term is not a defined term under SEC Industry Guide 7 and is normally not permitted to be used in reports and registration statements filed with the SEC. “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. The term “contained gold ounces” shown on this presentation is not permitted under the rules of the SEC. U.S. Investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable. Cautionary Note to All Investors Concerning Economic Assessments that Include Inferred Resources: The preliminary assessments on GDLR, Long Valley, and Awak Mas gold projects are preliminary in nature and include “inferred mineral resources” that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessments at GDLR, Long Valley and Awak Mas gold projects will ever be realized. 2
  3. 3. Mt Todd Gold Project • Acquired by Vista Gold and its wholly owned subsidiary Vista Gold Australia in 2006. • Vista Gold is currently working a decision to bring the world-class Mt. Todd gold project back into production. • Recent drilling results estimate that the Batman deposit now contains 7.4 million ounces of gold in the Measured and Indicated categories and 1.7 million ounces in the Inferred category, ranking Mt. Todd as the largest undeveloped gold resource in Australia. Slide 3
  4. 4. Mt Todd Update • Site purchased in 2006 from NT Government • Agreement in place with NT Government and Jawoyn Association • Seven years of geologic, metallurgic and technical evaluation ($70m spent to date) • Sound understanding of legacy of the site and knowledge to repair the past, respecting the future. • Vista has a modest exploration budget going forward while market sentiment is for gold investment is depressed 4
  5. 5. Mt Todd Update • Vista controls 1,100 km2 of highly prospective land that has historically been underexplored • Defined Resources at Quigley's deposit • Batman deposit is now estimated to contain 7.40 million ounces in gold in the Measured and Indicated (M&I) categories and 1.73 million ounces in the Inferred category • A 285% increase from 1.92 million ounces in 2006 5
  6. 6. Mt Todd Water Management • Water releases are required as Mt Todd collects a net of 1.5GL each year • The site is almost at capacity so water must be released • Water is treated to precipitate out metals which means the water can be released at a higher rate without damage to the environment • We are working with the DME to reduce the water inventory over the coming years • We have spent $20m to date on Care and Maintenance activities to date 6
  7. 7. Mt Todd Approvals Current • Waster Discharge licence – is now up for renewal • NOI for 55k tonnes processed per day submitted June 2013 • Four year MMP submitted in October 2013 Outstanding • EIS submitted in June 2013 with approval expected August 2014 • Operating MMP • Authorisation under the EPBC Act 7
  8. 8. The Approvals Process • This talk will cover Mining approvals required to transition from Exploration to Production (which includes closure by default) • There have been many misconceptions and recent changes in the Northern Territory in how approvals and permitting for development projects are obtained. • The intention of this brief is to share our experience, which may remove some of the questions 8
  9. 9. Approvals 9  There are four main permits / approvals required  Notice of intent (NT)  EIS (NT) – controls anything going off the mine site and closure  EPBC1 (Federal) – approval for development next to four endangered species near Mt. Todd (Finch, Crested shrike-tit (northern), Mertons Water monitor and the Bustard), as a “controlled action”  MMP (NT) – Mine Management Plan controls operating the mine / site  There is a large number of other approvals but they are minor and perfunctory (i.e. storage of dangerous goods license)  All impacts have been analyzed and the EIS was submitted to the NT EPA in June, public comments have been received. 1. The Environment Protection and Biodiversity Conservation Act 1999 Act, which commenced 16 July 2000
  10. 10. The Northern Territory Mineral Titles Act 2010 (and the Mineral  Titles Regulations) are the laws under which exploration and mining approvals are granted or refused. The Northern Territory Mining Management Act is the law that controls how mines are managed and what obligations there are for mining companies to protect the environment once an exploration or mining approval has been granted. The Commonwealth Government EPBC Act (Environment  Protection and Biodiversity Conservation Act 1999) The laws if your actions that have, or are likely to have, a significant impact on a matter of national environmental significance The Legislation 10
  11. 11. Summary of the Process The “Mine Operator” submits either a “Notice of Intent” (NOI) or a “Mine Management Plan” (MMP) to the Department of Mines and Energy (DME) 11
  12. 12. MMP – Recent Changes The MMP is a document with a future facing perspective and content covering a plan of operations or action proposed over a period of 4 years. It is not a document in which historical performance is tracked or reported. Any changes that have occurred under the previous 4 year period will be reflected in the new plan of action. The Environmental Performance Report (EPR)– is a document which looks retrospectively at a 12 month period to assess performance against the plans described in the MMP. 12
  13. 13. Summary of the Process The DME makes an initial assessment based on the NOI or MMP to determine if there is potential for “significant environmental harm” 13
  14. 14. Summary of the Process Dependant on the Potential for “Significant Harm” to the environment one of the three options are elected 14
  15. 15. Summary of the Process The EPA parameters for assessment are unknown Is this an objective or subjective process? 15
  16. 16. 16
  17. 17. Approvals for a Mine - DME 17
  18. 18. Approvals for a mine - EPA 18
  19. 19. Environmental Impact Statement 19
  20. 20. Public Environmental Report 20
  21. 21. EIS Guideline • The EPA has a 6 page guideline for an EIS on the web. • The actual process is the EPA develops a specific guideline for the project. 21
  22. 22. 22
  23. 23. 23
  24. 24. 24
  25. 25. Commonwealth Approvals • EPBC Act (Environment Protection and Biodiversity  Conservation Act 1999) can add requirements • “…actions that have, or are likely to have, a significant impact on a matter of national environmental significance require approval from the Australian Government Minister for the Environment (the Minister). The Minister will decide whether assessment and approval is required under the Act.” 25
  26. 26. Commonwealth Approvals, cont. Significant impact • A significant impact is an impact which is  important, notable, or of consequence,  having regard to its context or intensity.  Whether or not an action is likely to have a significant  impact depends upon the sensitivity, value, and quality  of the environment which is impacted, and upon the  intensity, duration, magnitude and geographic extent of  the impacts. You should consider all of these factors  when determining whether an action is likely to have a  significant impact on the environment. 26
  27. 27. Mt Todd • To date all of the identified species on the  threatened list have been deemed to suffer  a “Significant Impact” as a result of the  proposed mining activities. • Even after the EIS included peer reviewed  reports from experts stating the impacts  were not considered to be significant. • The Commonwealth are still withholding  their approval(s) today. 27
  28. 28. NT Currently • DME is referring all NOI’s and MMP’s to the EPA  for assessment • The EPA seemed to be assessing all mining  approvals as requiring an EIS • The Commonwealth are using provisions of the  EPBC Act to require an additional approval by  classing anything as significant • The NT EPA are looking to the proponents under  provision 14A to seek new approvals if there is  any change(s) to the project, regardless of the  significance   28
  29. 29. • The intent of the various Act’s and Reg’s is to have  activities that have the POTENTIAL for SIGNIFICANT  HARM to the environment to undergo additional  analysis. • Currently is seems that these provisions are being  abused as all mining approvals are being referred to the  NT EPA by the DME and then assessed as requiring an  EIS  • The NT EPA are referring all EIS’s to the  Commonwealth who have deemed that the entire NT is  covered by the EPBC Act as it “may have” Northern  Quolls  29
  30. 30. Where to from Here ‐ Approvals? • Submit and have our Operating MMP  approved by the DME • Satisfy the Commonwealth Environment  Department that the project will not have  a significant impact on the threatened  species they have nominated 30
  31. 31. Where to from Here ‐ Project • Continue to undertake the Care and Maintenance  activities at Mt Todd • Assist the NT Government with water  rehabilitation • Continue to investigate ways to optimise the  project economics • Look forward to an improved Gold price 31
  32. 32. MT Todd’s EIS Timeline 32
  33. 33. Social License Open dialogue • Key stakeholder and community meetings • Trusted source of information • Feedback channels Community Endorsement • Project support • Welcomed contributor to local prosperity 33
  34. 34. Community Engagement www.mttodd.com.au • Regular updates • Reporting on key indicators for water treatment and discharge • Vital communication link during water discharge • WDL documents • Contact mechanism – majority of enquiries regarding employment opportunities • Links to key documents and technical reports through www.vistagold.com
  35. 35. Questions? www.mttodd.com.au 35
  36. 36. Mt Todd Inventory • Vista growing higher-quality Measured & Indicated category ounces • Cutoff grade maintained at 0.4 g/t – not growing ounces by lowering cutoff grade Slide 36 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 2006 2007 2008 2009 2010 2011 2012 2013 1.50 1.50 1.53 2.22 2.22 2.61 2.09 1.73 1.76 1.76 2.90 5.13 3.10 1.87 2.90 1.73 2.03 4.11 4.11 5.90 Million oz Mt. Todd Project ‐ Batman and Heap Leach  Resources & Reserves Proven & Probable Reserves M & I Resources Inferred Resources 5.13 5.99 7.01 7.63
  37. 37. Mt. Todd Reserves and Resources 37Note: Measured & Indicated Resources include Proven and Probable Reserves.   Batman and Quigleys resources are quoted at a 0.40g Au/t cut‐off grade.  Heap Leach resources are the average  grade of the heap, no cut‐off applied.  Economic analysis conducted only on proven and probable reserves.  Thomas Dyer of Mine Development Associates is the Qualified Person responsible for  developing reserves for the Batman deposit.  Deepak Malhotra of Resource Development Inc. is the Qualified Person responsible for developing reserves for the heap leach. Mt. Todd Gold Project Reserves, Base Case (50,000tpd) 0.40 g Au/t cut‐off. Reserves calculated at $1,360 per ounce gold Batman Deposit Heap Leach Deposit Quigleys Deposit Total Tonnes  (000s) Grade  (g/t) Contained  Ounces Tonnes  (000s) Grade  (g/t) Contained  Ounces Tonnes  (000s) Grade  (g/t) Contained  Ounces Tonnes (000s) Grade  (g/t) Contained  Ounces Proven 72,495 0.88 2,057 ‐ ‐ ‐ ‐ ‐ ‐ 72,495 0.88 2,057 Probable 136,955 0.82 3,612 13,354 0.54 232 ‐ ‐ ‐ 150,309 0.80 3,844 Proven & Probable 209,451 0.84 5,669 13,354 0.54 232 ‐ ‐ ‐ 222,805 0.82 5,901 Mt. Todd Gold Project Resources, Base Case (50.000 tpd) Batman Deposit Heap Leach Deposit Quigleys Deposit Mt. Todd Gold Project Total Tonnes  (000s) Grade  (g/t) Contained  Ounces Tonnes  (000s) Grade  (g/t) Contained  Ounces Tonnes (000s) Grade  (g/t) Contained  Ounces Tonnes (000s) Grade  (g/t) Contained  Ounces Measured 77,793 0.88 2,193 ‐ ‐ ‐ 571 0.98 18 78,364 0.88 2,211 Indicated 201,792 0.80 5,209 13,354 0.54 232 6,868 0.82 181 222,014 0.79 5,622 Measured & Indicated 279,585 0.82 7,401 13,354 0.54 232 7,439 0.83 199 300,378 0.81 7,832 Inferred 72,458 0.74 1,729 ‐ ‐ ‐ 11,767 0.85 320 84,225 0.76 2,049
  38. 38. Mt. Todd Mining Plan Slide 38
  39. 39. Vista’s Technical Evaluation Three issues jointly caused Mt Todd to fail in the past – all manageable • Hard ore – Pegasus did not achieve designed throughput rates • Mineralogy & Metallurgy – Pegasus did not achieve designed recovery rates • Low gold prices – gold approached $300/oz as mill was commissioned Hard Ore • Mt Todd bond work index is 26 • Pegasus comminution circuit was designed for BWi of 17 – equipment not capable of efficiently processing harder ore • Result: Pegasus never reached design throughput levels Mineralogy & Metallurgy • Flotation circuit failed because of lack of cyanide detoxification circuit • With all ore going to CIL circuit, secondary copper minerals (bornite & chalcocite) consumed cyanide • Result: Pegasus never reached design recovery levels Slide 39
  40. 40. Mt Todd Process Flowsheet Slide 40
  41. 41. Mt. Todd Processing Plant Video
  42. 42. Mine Closure – Map of Footprint
  43. 43. Mt Todd – Prefeasibility Study 50,000 tpd mill operation (Base Case) 33,000 tpd mill operation (Alternate Case) Open Pit Reserve 5.90 m ozs (222.8 million tonnes @ 0.82 g/t gold) 3.56 m ozs (123.7 million tonnes @ 0.90 g/t gold) Cut‐off grade and reserve price 0.40 g Au/t, $1,360/oz Au pit design 0.45 g Au/t, $925/oz Au pit design Mine Life 13 years 11 years Production (Life of mine) 4.81 m ozs 2.89 m ozs Recoveries 81.5% 81.2% Average Annual Production (1st 5 years) 370 k ozs 481 k ozs 263 k ozs 295k ozs Cash Cost (1st 5 years) $773/oz $662/oz $684/oz $676/oz “All‐in” cash costs (LOM)1 $1,066/oz $1,020/oz Initial CapEx $1,046m $761m Sustaining CapEx $359m $211m Pre‐Tax NPV5% 2 $1,094m $777m Pre‐Tax IRR2 21.8% 22.1% After‐Tax NPV5% 2 $591m $440m After‐Tax IRR2 15.9% 16.9% Slide 43
  44. 44. Item PFS level analysis FS level analysis Mt. Todd level Geologic Assessment Basic assessment and Review Detailed assessment of structures and rock contacts,  alteration, mineralization, and deposit trends 100% FS Mineralogical Sampling & Analysis Preliminary mineralogical sampling and analysis, and  mineralogical study complete Detailed mineralogical sampling and mapping, and  detailed mineralogical study complete 100% FS Reserves – Calculation Parameters Known or Estimated Detailed analysis and determinations 100% FS Pit Design / Slopes Preliminary estimation by rock type, preliminary haul  road incorporated Detailed pit designs with phases and access for  equipment operation 100% FS Production Schedule Yearly and LOM ore and waste tonnages and grades Detailed annual schedules showing ore tonnages,  product quality, and waste tonnages and grades 95% FS Ore Sampling and Test Work Sampling of core, preliminary bench‐scale testing to  determine recoveries, ore characterization, and  processing parameters for flowsheet development Sampling of core for different ore body zones,  flowsheet confirmed, comprehensive beneficiation test  program to determine recoveries; or and product  characterizations, finalization of process parameters 100% FS Flow Sheets Establishment of probable flowsheet from test work  data; major process flow diagrams; initial  determinations of material and heat balances Detailed flowsheet based on comprehensive  beneficiation test program; detailed equipment list;  diagrams for all process flows; material and heat  balances finalized 100% FS Process Design General design basis; preliminary engineering drawings; tradeoff studies optional Complete design basis; basic engineering drawings  complete; tradeoff studies performed 70% FS Power Power sources and requirements identified; unit costs obtained from supplier Power requirements and unit costs derived from  detailed engineering study; unit costs from quotes 100% FS Water Sources / Uses Preliminary study, volumes and unit costs estimated Specific source identified, volumes from detailed  engineering study, costs from quotes 100% FS Capital Cost Estimate Preliminary equipment list, budget or historical price  quotes, some factoring Detailed equipment list, firm price quotes for all major  equipment, all capital items identified 85% FS Operating Cost Estimate Quantified estimates for labor, power, and  consumables; budget or historical price quotes for unit  prices, some factoring Detailed engineering estimate by project area, based  on quotes and studies 90% FS Prefeasibility Study
  45. 45. Mt Todd – Prefeasibility Study Slide 45 Operating Cost – Base Case (50,000tpd) First 5 Years Cost Life of Mine Cost Per tonne processed Per Ounce  produced Per tonne processed Per Ounce  produced Mining $8.18 $302.03 $6.95 $321.88 Processing $8.71 $321.47 $8.78 $406.86 Site General and Administrative $0.49 $18.27 $0.50 $22.94 Jawoyn Royalty $0.39 $14.50 $0.31 $14.50 Water Treatment $0.07 $2.60 $0.07 $3.39 Refining Costs $0.09 $3.19 $0.07 $3.19 Power Credit ‐ ‐ ‐ ‐ Total Cash Costs $17.93 $662.06 $16.68 $772.76
  46. 46. Economic sensitivity to Au and AUD 46 Mt. Todd Gold Project NPV (5%), in Millions Sensitivity Table $1,300/oz Au NPV / IRR (after‐tax) $1,450/oz Au NPV / IRR (after‐tax) $1,600/oz Au NPV / IRR (after‐tax) $1,800/oz Au NPV / IRR (after‐tax) AUD$1.10 : USD$1.00 $155.9 / 7.8% $448.4 / 13.3% $734.5 / 18.7% $1,114.1 / 25.5% AUD$1.00 : USD$1.00 $304.5 / 10.5% $591.3 / 15.9% $876.6 / 21.1% $1,255.1 / 27.7% AUD$0.90 : USD$1.00 $448.3 / 13.1% $733.6 / 18.4% $1,017.2 / 23.4% $1,395.9 / 29.9% AUD$0.80 : USD$1.00 $591.0 / 15.7% $874.4 / 20.7% $1,157.9 / 25.6% $1,536.1 / 31.9% Base Case (50,000 tpd scenario) Alternate Case (33,000 tpd scenario) Note: Sensitivity to Australian Dollar exchange rate applied only to operating costs.  All capital costs (initial and sustaining) remain expressed in US Dollars based on  a AUD$1.00 : USD$1.00 exchange rate over the life of the mine Mt. Todd Gold Project NPV (5%), in Millions Sensitivity Table $1,300/oz Au NPV / IRR (after‐tax) $1,450/oz Au NPV / IRR (after‐tax) $1,600/oz Au NPV / IRR (after‐tax) $1,800/oz Au NPV / IRR (after‐tax) AUD$1.10 : USD$1.00 $187.2 / 10.1% $363.2 / 14.9% $538.2 / 19.5% $773.2 / 25.5% AUD$1.00 : USD$1.00 $265.6 / 12.2% $440.2 / 16.9% $615.6 / 21.4% $850.9 / 27.4% AUD$0.90 : USD$1.00 $342.4 / 14.2% $517.1 / 18.8% $693.2 / 23.3% $928.6 / 29.2% AUD$0.80 : USD$1.00 $419.3 / 16.2% $594.6 / 20.7% $770.9 / 25.2% $1,006.3 / 30.9%
  47. 47. Reclamation and closure – waste rock dump 47
  48. 48. Reclamation and closure – waste rock dump 48
  49. 49. Adding Limestone to Batman Pit
  50. 50. RP3 Pumping Infrastructure

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