Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

NWM Mining Corporation Fall Presentation


Published on

Published in: Investor Relations
  • Be the first to comment

  • Be the first to like this

NWM Mining Corporation Fall Presentation

  1. 1. NWM Mining Corporation New Gold Producer in Northwest Mexico Fall 2012
  2. 2. Forward Looking StatementsThis presentation includes certain "forward-lookinginformation" within the meaning of the Securities Act(Ontario). All statements regarding anticipated explorationcosts, projected starting dates for production and forecastedrevenues are forward-looking statements that involve variousrisks and uncertainties. There can be no assurance that actualexploration costs will be in line with forecasted budgets, thatthe projects will commence production as anticipated or thatthe projects will produce the revenue forecasted. Importantfactors that could cause actual results to differ materially fromthese forward-looking statements include: exploration resultsthat do not meet with the expectations of management,shortage of skilled labour, shortage of appropriateequipment and other factors disclosed under the heading"Risk Factors" and elsewhere in NWM Mining documents filedfrom time to time with the Ontario Securities Commission andother regulatory authorities.NWM Mining Corporation management has provided projectmodelling by making assumptions about mining costs to makeinferences relating to geological material available for miningcalculations. These project models are for informationalpurposes only and cannot be relied upon. 1
  3. 3. JurisdictionNeighbours in the Region La Herradura & Noche Buena  La Jojoba & Lluvia de Oro  Dolores Gold Mine Fresnillo & Newmont JV  NWM Mining Corporation  MineFinders Corporation 4.1M oz Gold Reserves  385k oz Gold Reserves  2.0M oz Gold Reserves El Chanate Gold Mine  La India Gold Mine Aurico Gold  Agnico-Eagle 1.3M oz Gold Reserve  900k oz Gold Reserves USA San Francisco Mine MEXICO  Mulatos Gold Mine Timmins Gold Corp  Alamos Gold 1.3M oz Gold Reserves  2.2M oz Gold Reserves Province Mercedes Gold Mine of  Pinos Altos Gold Mine Yamana Gold Sonora  Agnico-Eagle 1.0M oz Gold Reserves  3.1M oz Gold Reserves El Sauzal Gold Mine  La Cienega Gold Mine Gold Corp  Fresnillo Plc 260k oz Gold Reserves  3.1M oz Gold Reserves 2
  4. 4. Project OverviewProduction Summary Production at Lluvia commenced Q1 2012; Seeking to ramp up from approx. Projected Production 20,000oz to 35-40,000 in 2013 Over past 2 quarters, NWM has reported operating profits of $2.1M and $1.8M, respectively Anticipating 2012 production to be 20,000ozs; with cash cost of $900/oz Current Reserves of 385,000 ounces allot for a mine life of 5yrs Production has thus far been from lower grade Lluvia de Oro Deposit (0.51g/t); 0.77g/t La Jojoba Deposit yet to be mined Incremental ramp up planned from 8kT per day towards 15kT per day in 2013 3
  5. 5. Project OverviewUpcoming Milestones Implement transition from current ore  Expand regional exploration mining rate of approximately 8,000 tpm to program to develop new resources 15,000 tpm by end of 2013. including already identified targets Expand leaching capacity to accommodate such as Gold Ridge and ramp-up in production and to improve Campamento leach pad gold extraction rates (currently  Complete comprehensive underway) metallurgical testwork program to Complete drill program in early 2013 to optimize operating conditions for expand reserves at Lluvia de Oro by further production increase through targeting almost 200,000 ounces of inferred initiation of mining at Jojoba resources. deposit (2014) 4
  6. 6. Project OverviewLocal Geological Model Lluvia gold mineralisation hosted within predominantly siliciclastic rocks. Unit consists of interbedded sandstones and siltstones Eastern edge sediments are thrust fault bounded and prepared for later high angle gold event Gold-bearing fluids focussed along sub- vertical faults which may have reactivated thrust-fault structures. Gold occurs below thrust-fault underlying Lluvia (Creston) pit Southwest edge of sediments contacts  Jojoba appears to be hosted in highly felsic volcanics to volcaniclastic and altered volcanic to volcaniclastic rocks in a tectonic breccias (Gold Ridge) low angle event 5
  7. 7. Project OverviewLluvia Mineralisation N-S cross-section of Lluvia deposit at 496800mE, from July 8, 2010 Pre-feasibility report update and reserve analysis. The modeled block grades clearly show the dipping nature of the gold mineralization. 6
  8. 8. Project OverviewRegional Geology 7
  9. 9. Project OverviewReserve Summary1 “A Mineral Reserve is the economically mineable part of a Mineral Resource” –CIM Definition Standards Lluvia de Oro Reserves La Jojoba Reserves Tonnes of Ore Gold Grade Ounces Tonnes of Ore Gold Grade Ounces (millions) (g/t) (oz) (millions) (g/t) (oz) Proven 7.26 mT 0.49 g/t 115,000 oz Proven 5.29 mT 0.83 g/t 142,000 ozProbable 4.50 mT 0.52 g/t 76,000 oz Probable 2.49 mT 0.64 g/t 52,000 oz Total 11.80 mT 0.50 g/t 191,000 oz Total 7.80 mT 0.77 g/t 193,000 oz Total NWM Reserves Tonnes of Ore Gold Grade Ounces (millions) (g/t) (oz) Proven 12.56 mT 0.64 g/t 257,000 oz Probable 2.49 mT 0.57 g/t 128,000 oz Total 15.05 mT 0.63 g/t 385,000 oz8 1) Source: July 2010 NI 43-101 Pre-feasibility study
  10. 10. Project OverviewResource Summary1 Resource calculations are inclusive of Reserves outlined on prior page Lluvia de Oro Resources La Jojoba Resources Tonnes of Ore Gold Grade Ounces Tonnes of Ore Gold Grade Ounces (millions) (g/t) (oz) (millions) (g/t) (oz)Measured 8.08 mT 0.46 g/t 126,000 oz Measured 5.76 mT 0.82 g/t 152,000 ozIndicated 6.99 mT 0.51 g/t 114,000 oz Indicated 2.98 mT 0.62 g/t 59,000 ozTotal 15.07 mT 0.48 g/t 240,000 oz Total 8.74 mT 0.75 g/t 211,000 ozInferred 10.23 mT 0.52 g/t 170,000 oz Inferred 1.74 mT 0.53 g/t 30,000 oz Total NWM Resources Tonnes of Ore Gold Grade Ounces (millions) (g/t) (oz) Measured 13.84 mT 0.61 g/t 278,000 oz Indicated 9.97 mT 0.54 g/t 173,000 oz Total 23.81 mT 0.58 g/t 451,000 oz Inferred 11.97 mT 0.52 g/t 200,000 oz9 1) Source: July 2010 NI 43-101 Pre-feasibility study
  11. 11. Project OverviewLocation of Inferred Ounces Adjacent to Current Pit Limits Pit Plan View Ultimate Pit – Proven+Probable Reserves Only Ultimate Pit – Including Inferred Ounces Reserves Can Be Increased Significantly in Short Term 10
  12. 12. Resource Expansion PotentialLonger Term Exploration Programs NWM has consolidated all land in between and around the La Jojoba & Lluvia de Oro Deposits amounting to nearly 6,000 hectares; and is now planning to go ahead with a comprehensive exploration program Since acquiring the projects, NWM has focused on getting into production, and minimal exploration drilling has been done to date A look at the key exploration targets, including Gold Ridge and Campamento; both display unique geological characteristics11
  13. 13. Upcoming Drill ProgramGold Ridge: one of NWM’s key targets  Gold Ridge is an undrilled area near Lluvia de Oro displaying a unique geological environment  It is a mass of quartz porphyry, 1,400 meters long and exposed for 200m at surface along a ridge  NWM plans to drill 8,000m on Gold Ridge alone Bird’s Eye View of Gold Ridge This image shows all the RC and core drill holesDarker Purple and Green dots represent completed drill holes Lighter Lavender dots are the proposed holes for Gold Ridge 12
  14. 14. Project OverviewCurrent Operations - Recoveries 2,500 2,000 1,500 Predicted recovery per month 1,000 Ounces to Carbon per month (from 500 daily reports) - Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Recoveries from Lluvia Ore Tracking Well with Gold Leach Curve (ultimate 60% recovery / 18-24 months) 13
  15. 15. Project OverviewCurrent Operations – Available Gold 18,000 Cumulative Recoverable Gold inventory 16,000 14,000 12,000 10,000 Cumulative 8,000 Recoverable Gold inventory 6,000 4,000 2,000 - Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Significant Inventory of Recoverable Gold Present in Leach Pads from Mine Ramp-up (short to medium term cash flow) 14
  16. 16. Project OverviewCurrent Operations – Next 3 Months  Comprehensive review recently completed to identify cash flow issues related to ramp up of production at the overall project  Decision to focus exclusively on Lluvia (Creston) area through 2013 (then phase in Jojoba). Reasons for decision: • Mineralisation is best understood metallurgically • Reduces mine contractor requirements/costs by mining in one area only • Allows for production at reduced strip ratios and gradual increase in waste mining as cash flows improve  Critical priorities identified for short term cash flow utilisation: • Mining exclusively in low strip ratio areas of Lluvia pit (Zone 2) • Gradually increase free cyanide concentration in leach pad solutions • Double area of leach pads currently under leach due to long leach cycles (maintain total solution flow rate but decrease solution application rate)  Other short term priorities identified: • Preparation of detailed geological model for Lluvia pit area to allow for improved mine planning and metallurgical testwork sample selection • Metallurgical evaluation of leaching behaviour and crush size requirements for different zones of available mineralisation 15
  17. 17. Project OverviewCurrent Operations – Following 6-8 Months  Complete detailed ramp-up plan for Lluvia pit to increase production rate from 6-8000 tpd (ore) to 12-15,000 tpd while maintaining strip ratio at approximately 2/1 or less  Geological modelling and metallurgical testwork to be expanded to Jojoba deposit. Critical data required relating to gold recovery versus crush sizes and variations within deposit  Lluvia block model to be expanded to increase data available for mine planning: • Metallurgical data (gold recoveries, crush sizes, etc.) • Lithological zones  Design changes to increase solution pumping requirements at each leach pad. Implement recirculation systems to recycle low grade solution and increase grade of pregnant solution to ADR plant  Permitting changes to move waste dumps away from pit and over areas of site with no potential for gold resources  Finish short term capital projects • Lane 5 of Lluvia Dos leach pad (and new pond) • Completion of road from Lluvia to Jojoba and solution pipe relocation • Upgrade of inferred resources to reserves at Lluvia 16
  18. 18. ManagementA team of seasoned mining professionalsChris J. Berlet, President & CEO (BSc Mining Engineering & CFA Charterholder)  Mining Engineering Graduate from Queen’s; with an Accounting & Finance diploma from the London School of Economics  Worked for Banque Paribas in their Capital Markets Group & for HSBC Securities  Experience in underground gold & copper mines, as well as open pit coal & copper mines in Canada & Australia; and finally moved onto Mexico as CEO of Columbia Metals in 2007Chris Chadder, CFO (Chartered Accountant)  Chris is a C.A. with 20+ years as a business advisor to, and senior manger of several public and private junior resource companies  Former president and CEO of Patricia mining Corp., CFO of Ursa Major Minerals and , Auriga Gold Corp.Darren Koningen, Technical Advisor – Project Development (Mineral Processing Engineer)  P.Eng with 20+ years experience in metallurgical process design, project construction, management and operations  Recently served as Vice President – Technical Services for Gowest Gold and Virgin Metals.  Notably, brought two gold mines into production (El Sastre in 2006, El Castillo 2008) as founder and VP – Project Development/Operations/Engineering for Castle Gold (now Argonaut Gold) 17
  19. 19. ManagementA team of seasoned mining professionalsPedro Delgado, General Manager Mexican Operations (Mining Engineer)  Mining Engineer with 20+ years of diverse experience in engineering and management including operations producing gold, coal and cement  Recently responsible as Manager for the rapid expansion of operations at El Castillo gold mine in Durango Mexico from start-up rate of 200,000 tonnes per month in 2008 to almost 2,000,000 tonnes per month by end of 2011Miguel Cardona – Exploration Manager (Geological Engineer)  20+ years of experience in the mining industry, primarily in exploration, but also in underground and open pit mine operations (gold skarn, gold and silver epithermal and copper-zinc-gold type deposits) – recently Exploration Manager for Castle Gold  Notable achievements include being part of the team that discovered the Filos Project (now owned by Goldcorp) and also El Limon advanced stage exploration project with Teck-ComincoFederico Alvarez, Technical Advisor - Operations (Mining Engineer)  Mining engineer with nearly 35 years experience within academia, government (Director, Mining Affairs for state of Guanajuato) and the mining industry primarily in Mexico (manganese, coal and gold)  Recently VP – Operations for Argonaut Gold Inc. (and its predecessor Castle Gold) where he was responsible for ramp-up of production at El Castillo gold mine from 20,000 to +60,000 ounces per year Operations Group from Castle Gold (developed El Castillo project now at +80,000 ounces annually) 18
  20. 20. Financial & Market OverviewCapital Structure Shares Outstanding (millions) 511.6 Warrants (millions) 1.4 $0.20, Expiring Jan. 2013 Options (millions) 10.4 Average Price of $0.10 Share Price (TSX-V NWM) $0.06 52 Week Range: $0.05 - $0.12 Market Cap (mUS$) $30.7 Debt (mUS$) $18.5 GRF Note Payable Enterprise Value (mUS$) $49.2 Calculated October 2012 Views of the Lluvia de Oro Mine-Site 19
  21. 21. Value PropositionComparable Analysis Enterprise Value to Reserves EV Resources ($/oz) Average: $198/oz $86/oz 20
  22. 22. SummaryPresentation Recap Since acquiring the assets, NWM has focused on consolidating a 5,900 hectare land package, and on transitioning into production Recently reported first 2 profitable quarters & is now seeking to: 1) Commence exploration & drill program. Targets include expanding reserves at Lluvia and also locating new resources on its largely unexplored land, particularly its key target Gold Ridge, to expand resources 2) Ramp up into full production to 15,000 tonnes per day (35-40,000 oz/yr) Opportunity to participate in a company which has only recently turned the corner from a developer into a producer, and do so at its historically low share price Upon paying off its debt and ramping to nearly 40,000 ounces per year, NWM has the potential to produce over $60M a year in revenue, with Free Cash Flow of $20M /yr Profitable Exploration Ramping into Trading at Company with Potential on Full-Scale Historically Producing Under-Explored Production Low Prices Asset Land 21
  23. 23. Contact Information Toronto Head Office402 – 121 Richmond St. West Toronto, Ontario M5H 2K1 Web: Phone: (416) 364-6799 Email: Looking at 1,330,000 tonnes of ore under leach at Lluvia de Oro 22