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Guyana Goldfields Inc. July 2012 Investor Presentation


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Guyana Goldfields Inc. July 2012 Investor Presentation

  1. 1. July 2012 Investor Presentation
  2. 2. Forward Looking StatementThis presentation of Guyana Goldfields Inc. (the "Company") contains statements that constitute "forward‐looking statements." Such forward‐looking statementsinvolve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or developments in our industry, todiffer materially from the anticipated results, performance or achievements expressed or implied by such forward‐looking statements. Forward looking statements arestatements that are not historical facts and are generally, but not always, identified by the words "expects," "aims," "plans," "anticipates," "believes," "intends," g y, y, y p , , p , p , , ,"estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred fromthe interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward looking statements, as such informationconstitutes a prediction of what might be found to be present when and if a project is actually developed. Forward‐looking statements this document includes arestatements regarding: the Companys expectations regarding drilling and exploration activities on properties in which the Company has an interest; and the Companysstatements regarding estimates of resources on properties in which the Company has an interest. There can be no assurance that such statements will prove to beaccurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance onthese f h forward‐looking statements that speak only as of their respective d d l ki h k l f h i i dates. IImportant ffactors that could cause actual results to diff materially f h ld l l differ i ll from the C h Companys expectations include among others, risks related to fluctuations in mineral prices; uncertainties related to raising sufficient financing to fund planned work in a timelymanner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfillexpectations and realize the perceived potential of the Companys properties; uncertainties involved in the estimation of resources; the possibility that requiredpermits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may precludecommercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipmentbreakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overrun or unanticipated expenses in the work program; therisk of environmental contamination or damage resulting from the Companys operations; risks associated with title to mineral properties; and other risks anduncertainties discussed appear elsewhere in the Companys documents filed from time to time with the Toronto Stock Exchange and Canadian securities regulators.These statements are based on a number of assumptions, including assumptions regarding general market conditions, the availability of financing for proposedtransactions and programs on reasonable terms, and the ability of outside service providers to deliver services in a satisfactory and timely manner. Forward‐lookingstatements are based on the beliefs, estimates and opinions of the Companys management on the date the statements are made. Except as expressly required byapplicable securities laws, the Corporation undertakes no obligation to update these forward‐looking statements in the event that managements beliefs, estimates oropinions, or other factors, should change.This presentation uses the terms "Inferred Resource", "Indicated Resource" and "Mineral Resource". The Company advises readers that although these terms arerecognized and required by Canadian securities regulations (under National Instrument 43‐101 "Standards of Disclosure for Mineral Projects"), the US Securities andExchange Commission does not recognize these terms. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever beconverted into reserves. In addition, "Inferred Resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot beassumed that any part of an Indicated or Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred MineralResources may not form the basis of feasibility or pre‐feasibility studies, or economic studies except for a Preliminary Assessment as defined and permitted underNational Instrument 43‐101. Readers are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. The MineralResources stated in this news release are not mineral reserves and, in the absence of a current feasibility study, do not demonstrate economic viability. Thedetermination of mineral reserves can be affected by various factors including environmental, permitting, legal, title, taxation, socio‐political, and marketing issues. 2
  3. 3. Investment SummaryNew FS Leadership New team with development expertise Aurora Gold Project Next producing gold mine in Guyana, South AmericaResources & Grade 6.54 M oz Au M&I Resource; 1.82 M oz Au Inferred Resource High average grade of + 3.0 g/t AuPermitting All permitting received; Ready for constructionBankable Feasibility Study Vast improvements being made to project’s economics Over 400,000+ acres of land in greenstone belt of Guiana Shield; O 400 000 fl di t b lt f G i Shi ldBlue Sky Secondary Regional Complex: 2 new discoveries made at Aranka 3
  4. 4. Corporate Snapshot Symbol: TSX: GUY Top 15 Shareholders Shares % Shares Issued 95,071,814 The Baupost Group 18.8M 19.8% Options 7,928,138 Franklin Resources (Templeton) 10.7M 11.2% Warrants 0 Van Eck 7.3M 7.7% Diluted: 102,999,952 Patrick Sheridan Jr. (Founder/CEO) 6.2M 6.5% 52 week: Hi/Lo C$10.58 / C$1.67 IFC (World Bank Group) 5.1M 5.4% 3-month average volume: 958,385 Market Cap (at C$ 2.01) C$191 million ProFund Advisors 3.5M 3.7% Cash Position C$51 million Norges Bank 2.0M 2.0% Monthly burn rate y C$2 million Manulife Financial (Canada) 1.8M 1.9% Debt $0 AMG Analysen 1.8M 1.9% Sprott Asset Mgmt 1.7M 1.8% Insider,  AGF Investments Inc. 1.0M 1.0% 6%   6% Retail   Fidelity Investments 1.0M 1.0% 36% TD Asset Mgmt 0.8M .08% Instit.,  First Eagle Investments 0.8M .08% 58% British Columbia Investment M t B iti h C l bi I t t Mgmt 0.6M 0 6M 4
  5. 5. Management TeamCEO and Interim President & COO: Mr. Patrick Sheridan Jr., M.Sc. Founder of Guyana Goldfields from its inception in 1994 – 6.5% ownership stake in GUY Active in mineral exploration in Guyana for 15+ years – discovered the Aurora gold deposit Mr. Mr Sheridan holds a MSc in Economics from the London School of Economics MSc.Executive VP, Finance and CFO: Mr. Paul Murphy, B.Comm, CA 37+ years of international financial experience , of which 30 years almost exclusively in the resource industries Former Partner with PwC and National Mining Leader in Canada/Leader for the Western Hemisphere Mining Centre of Excellence Responsible for assessing all financing optionsVP, Exploration: Mr. Dan Noone, BApSci (Geol), MBA 20+ years of international mineral exploration and development experience Previous VP of Peru Operations for Aquiline Resources Inc. (Acquired by Pan American Silver Corp.) Held various senior geologist roles managing projects in Papua New Guinea, Indonesia, Peru, Ecuador and Argentina.VP, Projects: Mr. St. John Lees (Based in Guyana) 15+ years international experience in both the construction and resources industries. Previously responsible for the engineering, procurement and construction management for Rio Tinto Iron Ore Atlantic’s Simandou Project in Guinea, West Africa. Responsible for advancing the technical studies, development, and construction of the Aurora Gold Project and managing the overall project teamCountry Manager, Guyana: Ms. Violet Smith 20+ years experience in operations management Involved with the Company since its inception Oversees all operations and logistics in Guyana as well as the public relations in countryVP, Corporate Communications: Ms. Jacqueline Wagenaar: CPIR, B.Mos Previously lead investor relations programs for several junior mining companies and is a Certified Investor Relations Professional from the Richard Ivey School of Business Responsible for all marketing, communications and investor relations initiatives. Graduate of the University of Western Ontario in Business 5
  6. 6. The Region 6
  7. 7. GUYANA – The Country Mining friendly jurisdiction & government A Aurora P Permitting Li itti License Received; R d f C R i d Ready for Construction t ti Only English speaking country in South America with British common law and secure tenure - part of the Commonwealth Democratically elected government under parliamentary system Guyana GDP: US$2.8B (2011 est); GYD$ 581B Long history of significant gold production:  Gold was the largest export of the country in 2011 with 360,000 oz Mining License Received and Mineral Agreement Signed ( Nov.18/11):  Royalty:  5%: Gold price $1,000/oz or less  8%: Gold price $1,000/oz +  Corporate income tax: 30% with no withholding tax on interest p y p g payments 7
  8. 8. Property Locations Aurora Gold Project, Aurora  6.54M oz Au M&I; 1.82M oz Au Inferred  High grade +3.0 g/t Au  “Shovel-ready” with all permits  New Bankable Feasibility Study due Q4 Sulphur Rose, Aranka  Indicated 277,580 oz Au, Inferred 289,250 oz Au  2 new di discoveries made within a 5k radius i d ithi 5km di 8
  9. 9. Aurora Gold Project From 2004 to June 30, 2012:  Drilled 1,341 holes D ill d 1 341 h l Mineralized Zones  371,741 meters 9
  10. 10. Resources & Grade 10
  11. 11. Key 2012 InitiativesNew Bankable Feasibility Study  ‐ Due Q4N B k bl F ibilit St d D Q4 Staged development approach: Accelerate Production  of Saprolite of SaproliteInfrastructure Construction – Ongoing Development of Strategic Project InfrastructureExploration – OE l i Ongoing i 11
  12. 12. BFS Study Project Managers y j gDeepak Malhotra, Project Manager D k M lh P j M(focus on Metallurgy, Process, Tailings)  Ph.D. in Mineral Economics and M.S. and B.S. in Metallurgical  Engineering  40 + years experience in metallurgy and mineral economics— bankable feasibility studiesDon Elkin, Project Manager(focus on mining, project economics)  B.S. of Engineering Mathematics and a B.S. of Geological Engineering  50 years experience in geology, mining and reserve estimation 12
  13. 13. New Bankable Feasibility Study y y Contributors for FS Main Components Resource and Geology SRK Toronto Civil: TMA, WMP & River Dike Internal and Tetra Tech Mining: Track 1 BHOS Mi i T k 1 BHOS SRK Toronto SRK T t Mining: Track 2 SLR SRK Vancouver Metallurgy RDI and SGS Vancouver Process Tetra Tech Environmental  Environ Financial Evaluation/Costs i i l l i /C Tetra Tech and GUY h dG 13
  14. 14. New Bankable Feasibility Study y yFocusUpdating and revising key elements of the Bankable Feasibility Studythat have the greatest ability to significantly improve projecteco o cseconomicsOptions Under Review in BFS  Staged development scenario St d d l t i  Use of ramp(s) rather than shaft  Sequencing of mining and plant design  Mining Method: Blast Hole Open Stoping and Sub Level Retreat  Optimal underground mining depth  Reductions to fleet, distance haulage and plant Reductions to fleet distance haulage and plant  Potential savings to capital and operating costs 14
  15. 15. Accelerated ProductionMine Sequencing Concept: Saprolite First  Oxidized ore being mined and processed over the first 2 years of  operations, followed by a hard rock open pit and underground mining  scenarioProposed Sequencing p q g  Mine saprolite for two years to generate cash flow  Ramping up saprolite production during first 2 years  Sequence open pit and underground ramp in Year 3 15
  16. 16. pSaprolite Pits 16
  17. 17. BFS – Blast Hole Open Stoping Mining MethodOpen pit:Removal of some of the smaller pits  considered to be marginalReview of mobile equipment size, ramps,  haul roads, and strip ratio haul roads and strip ratioReview of contract mining for open pit pre‐ stripping Under Underground: EvaluationConcentrate on mining deposit from  surface to ~750m Previous FS Shaft depthRemoval of the vertical shaft  Removal of the vertical shaftAnalysis and tradeoff of U/G mining methodsExamination of contract mining proposals,  including possible dual decline access to  Rory’s Knoll U/G R ’ K ll U/G 17
  18. 18. BFS ‐ Sub‐Level Retreat Mining Method Lead by SRK (Vancouver) Objective : Compare SLR mining method with the currently proposed Blast Hole Open Stoping (BHOS) in  the BFS th BFS Typically SLR is suitable for sub‐vertical pipe like ore bodies (similar to Rory’s Knoll) located in strong  country rocks Successfully used on diamond mines in South Africa and in Canada R l ti l i l “T D Relatively simple “Top Down” method with potentially high production rates ” th d ith t ti ll hi h d ti t Much lower operating cost ‐ no backfill required Shallow to moderate depth mining, easy access Example: Ekati Diamond Mine,  Northwest Territories Example: Diavik Diamond Mine,  Northwest Territories 18
  19. 19. Changes To Site Plan River Dike Water  Water Management  Cuyuni River Pond Open Pit Shaft Area Airstrip Process Area Mine Waste Camp Stockpile Gate Tailings Area Access  1 Road kmYearly Rainfall = 2.5m 19
  20. 20. Additional Infrastructure Advances Camp p  An area for the camp has been selected and is being prepared  Surveying work at site has increased  Moving existing buildings will begin in the next 3 months Kingston Wharf  Evaluations for the rehabilitation of and improvements to the wharf are underway  Assessment of logistics planning utilizing the wharf once upgraded is ongoing 20
  21. 21. Logistics and Infrastructure 21
  22. 22. Aranka ExplorationSulphur Rose 277,580 indicated resource; 289,250 inferred resource Extension drilling in second half of yearN-1 New Discovery made in February 2012 located 5Kms NE of Sulphur Rose 400m by 300m Au soil anomaly y yS-3 Two gold anomalies situated halfway between N-1 and the Sulphur Rose pWynamu Our most prospective target; 3km by 2.5km zone of alteration. Team of geos situated here g in first half of year 22
  23. 23. N‐1 Discovery  New Discovery made in February 2012 l located 5k t d 5kms northeast of th t f Sulphur Rose  400m by 300m Au soil anomaly  6 trenches excavated to date  4 diamond drill holes, totaling 797 meters, have been drilled to date 23
  24. 24. N‐1 Discovery  2 trenches out of 6 excavated to date have returned a best interval of 1.41 g/t Au over 52 metres, including 1.80 g/t over 32 metres and 4.34 g/t Au over 12 metres (Trench # 12-01A).  Trenching has confirmed a 400 metre strike length consisting of altered and mineralized quartz diorite comparable to the style of mineralization at Sulphur Rose Gold deposit. 24
  25. 25. N‐1 Discovery  4 diamond drill holes, totaling 797 meters, have been drilled to date; 2 assays received to date  Drill Hole N1D-01: Returned gold grades of 1.06 g/t Au over 29 meters including a higher grade interval of 2 44 g/t Au over 8 metres and 14.13 g/t Au over 1 metre 2.44 14 13 metre. Drill Hole N1D-02: Returned 4.35 g/t Au over 20 meters including higher grade intervals of 6.42 g/t Au over 13 metres and 53.21 g/t Au over 1 metre 25
  26. 26. S‐3 Target  Situated halfway between N-1 and N1 Sulphur Rose  Infill soil auger sampling have delineated two gold anomalies measuring 400m by 300m and 300m by 200m  Latest soil samples returning up to 8.40 g/t Au  Trenching of this gold anomaly will commence next month. 26
  27. 27. Sulphur Rose Deposit 23 km away from Aurora in a straight line Northwest trending zone measuring ~500m strike length X 200m width X ~630 m depth. 500m 630 O/P depth to 255m; Block model depth extends to 640m (Micon, Dec 2011) Remains open vertically and at depth. Metallurgical testing: 91.9% recovery (similar to Aurora). No by-products. Drilled 49,394m from 177 holes (Jan 1, 2010 – June 30, 2012) Tonnes Au Grade Contained Au (g/t) ( /t) (Inf (I f ounces) ) Indicated O/P 8,250,000 1.04 275,550 U/G 30,000 2.10 2,030 Total 8,280,000 8 280 000 1.04 1 04 277,580 277 580 Inferred O/P 5,120,000 1.14 187,710 U/G 1,210,000 2.61 101,540 Total 6,330,000 6 330 000 1.42 1 42 289,250 289 250 27
  28. 28. Contact Information Head Office: Head Office: Guyana Goldfields Inc. Telephone: (416) 628 5936 141 Adelaide St. West, Suite 1608 Fax: (416) 628 5935  Toronto, ON M5H 3L5 Toronto ON M5H 3L5 Email: Email: info@guygold com Investor Queries: Vice‐President , Corporate Communications Jacqueline Wagenaar Jacqueline Wagenaar Telephone: (416) 628 5936 Ext. 2295 Email: 28
  29. 29. Appendix Appendix 29
  30. 30. Board of DirectorsAlan Ferry, CFA, Geologist: (Lead Director) Alan Ferry is an independent businessman since 2007 following over 27 years as a mining analyst and mining corporate finance specialist. Prior to that, he worked as a geologist.Patrick Sheridan Jr., MSc: Founder, CEO and Interim President & COO Mr. Sheridan has depth of experience, working in the mining industry for more than 20 years. He holds a B.Sc. and M.Sc. from the London School of Economics and Political Science, United Kingdom.Scott A. Caldwell, P.Eng (B.Sc., Mining Engineering) Mr. Caldwell is a mining engineer with nearly 30 y g g y years experience working in developing and operating mines worldwide and has over 10 years p g p g p g y experience working in Nevada. Mr. Caldwell was Chief Operating Officer of Kinross Gold Corporation until August 2006 and is currently the President , CEO and Director of Allied Nevada Gold Corp.Dan Noone, MBA, Geologist: VP, Exploration Mr. Noone has 20 years experience in mineral exploration in Australasia and South America. He was previously V.P.of Peru Operations for Aquiline Resources and prior to that was CEO of Absolut Resources Resources.Robert A. Bondy, LLB: Mr. Bondy recently retired from Blake, Cassels & Graydon LLP where he spent over 30 years in the Securities and Corporate Law Groups .Richard Williams, LLB: Mr. Willi M Williams i th Di t of Fi t M t l I is the Director f First Metals Inc. and of W d f Waseco R Resources I Inc. H i also th P id t and f He is l the President d founder of Bl k ll I d f Blackwell Investor t Relations Corp., an investor relations firm specializing in establishing and strengthening relationships between public companies and the investment community.Jean-Pierre Chauvin, P.Eng (B.Sc., Mining Engineering) Mr. Chauvin brings more than 40 years of combined experience in mining operations and construction management. Of particular note, he participated in the development of the Isle-Dieu mine in Matagami, Quebec for Noranda Mines Inc., which required the sinking of production and exploration shafts, as well as the development and definition of the underground operation. Mr Chauvin is currently employed as an interim President & CEO of PC Gold Inc. and sits on the Boards of PC Gold Inc., Macusani Yellowcake Inc., Lakeside Minerals Inc., and Andean American Gold. 30
  31. 31. Site GeologyGeological Description Rorys Knoll mineralization: disseminated pyrite and gold mineralization associated with intense silica- fuchsite sericite carbonate fuchsite-sericite-carbonate alteration in tonalite intrusive probably emplaced at the hinge of the folded volcanic rock and metasediments. Mad Kiss mineralization: disseminated pyrite and gold mineralization associated with intense silica-fuchsite- sericite-carbonate alteration in a quartz feldspar porphyry dyke. Aleck Hill mineralization: mesothermal gold veins hosted in the shear zones of metavolcanic and metasedimentary rocks; occurs in a zone of pyrite-rich quartz-carbonate veins in volcanic rocks that are enclosed in an alteration envelope which reportedly includes silica-sericite and calcite cement filling fractures. 31