Latin America Down Under - 28 May 2014 “ 2014 is the turning point ” 1 M I N E R A G O L D L I M I T E D
Company Overview ASX Listed Gold Mining and Exploration • Company focused on its 100% owned Peruvian operations Gold Production and Exploration upside from • +16,000Ha of under-explored concessions Forecast to achieve an annualised run rate of • 18koz per annum by end of 2014 from Torrecillas and potential third party toll treatment options Cost cutting plans being implemented to reduce • all in cash cost to ~$780/oz – processing plant is a major contributor to this Discovery of two large tonnage low grade • disseminated targets in Peru at Tumi and Tessie could materially change Minera Gold. Active program ongoing at Tumi. Exposure retained to Engenho Open Pit Gold • Targets in Brazil via JV 2 M I N E R A G O L D L I M I T E D
Investment Highlights Funding Recently raised $2.2M from professional and sophisticated investors Complemented by US$5M gold streaming transaction with SilverStream SEZC Production High-grade narrow vein Torrecillas gold mine in production in southern Peru. Focused on reaching ~18,000 oz Au annualized production rate by end of 2014 driven by lease of our own processing plant. Further production increases projected for 2015 Increased production and materially improved operating margin at Torrecillas to fund exploration in 2014 and 2015 to build resource base Peru Exploration Upside Near mine exploration potential for increasing resources and developing reserves. 16,000ha + exploration package including high priority Tumi project. 2014 exploration program includes Tumi IP work, continued trenching and soil geochemistry sampling at Tumi and Tessie and RC drilling of defined targets. Optionality through Brazil JV held on books for Zero. 3 M I N E R A G O L D L I M I T E D
Corporate Overview ASX Listed – Ticker MIZ Capital Structure Directors and Key Management Existing Shares on Issue 1,135 M • Alex Losada-Calderon Chairman • Market Capitalization ~$5.5 M • Ashley Pattison CEO / MD • Cash at Bank – April ¡‘14 ~$1.6 M • Ryan Welker NE Director • Unsecured Term Debt – Oct ¡‘15 ¡ $1.6M • Kevin Puil NE Director • Convertible Loans – Sept ¡‘14 $3.2M • Key Shareholders 1. Slade Technologies Pty Ltd 7.24% 2. Gurney Capital Nominees Pty Ltd 4.28% 2. Ashley Pattison 3.70% 3. Pershing Australia Nominees 3.49% 4. West Trade Pty Ltd 2.57% 5. Citigroup Nominees Pty Limited 2.02% 6. HSBC Custody Nominees 2.01% 4 M I N E R A G O L D L I M I T E D
Recently Completed Funding Arrangements SilverStream Gold Stream over Torrecillas Gold Project Represents funding which is non debt to Minera Gold and non dilutionary to our shareholders. Cayman Island based precious metal streaming business has acquired the right to purchase 10% of LOM production from the Torrecillas Gold Project through a US$5M fee to be paid in 4 installments based on production milestones. US$1.6M was paid on completion with an additional $2.4M forecast to be received in 2014 Purchase price for 10% of the production is lower of $400/oz or 80% of the spot price Convertible Loan Agreements Strongly supported by Top 20 Shareholders and new investors $2.2M raised in April 2014 6 mth term at 18% pa coupon Convertible at the lower of $0.008 or 20% discount to the 10 day VWAP prior to conversion Company can redeem in cash or shares at expiry. Importantly, these funding arrangements result in the gold strategy being fully funded. 5 M I N E R A G O L D L I M I T E D
Directors and Key Management Alex Losada-Calderon, Non-Executive Chairman (Based in Lima) Alex has over 25 years ’ experience as ¡a ¡geologist, ¡project ¡manager, ¡and ¡country ¡manager ¡and ¡is ¡currently ¡MIZ’s ¡competent ¡ technical person, working in-country. Alex was previously head of exploration for Southwestern Resources Corp which accumulated substantial landholdings and operations in Southern Peru prior to being taken over by Hochchild Mining PLC in 2009. Previous roles held by Alex include Non-Executive Director of Arafura Resources Ltd, Country Manager for Overseas Mining Investments Ltd, a US$525M Cuban Ferro Nickel project, Project Manager for Ausenco (Latin America) and Project Manager for MIM Holdings Ltd (Latin America). He holds a PhD in Economic Geology and Geochemistry from Monash University, Australia and Honors in Geological science from the Universidad Nacional del Sur, Argentina. Ashley Pattison, Chief Executive Officer and Managing Director (Based in Perth) Ashley has been the CEO of Minera Gold for the last 2 years and has more than 15 years experience working in a number of diverse roles servicing the mining industry including Director of corporate finance at Deloitte, Head of Corporate at DJ Carmichael (a resource focused stock broking firm) and was the CEO of a large mining service company for two years prior to joining Minera Gold. Ryan Welker, Non-Executive Director (Based in NY) Ryan has previously worked for Standard Bank, Rio Tinto and Hancock Prospecting and more recently with a broad range of mining finance groups, mining companies and other mining industry service companies as a consultant. Ryan was also a former non-executive director of Mineral Resources Limited. Ryan specialises in formulating commercial development strategies, resource project acquisitions/divestures, joint ventures and debt finance for projects and companies with a heavy focus on developing nations. Ryan is a graduate of Regent's Business School London with a BA (Hons) in International Finance and Accounting. Kevin Puil, Non-Executive Director (Based in Cayman Islands) Mr. Puil is currently a Director and Chief Executive Officer of SilverStream SEZC. Prior to SilverStream, Mr. Puil was an analyst and former fund manager with over 15 years of experience in investment management. Mr. Puil has held the positions of advisor and analyst with Goepel McDermid (now Raymond James), and was a partner and portfolio manager at Bolder Investment Partners (now Haywood Securities), both located in Vancouver, British Columbia. Subsequently, and most recently, he was a portfolio manager at Gissen & Associates, and the Senior Analyst at the Encompass Fund in San Francisco, focusing on natural resources. 6 M I N E R A G O L D L I M I T E D
Peru Asset Portfolio 7 M I N E R A G O L D L I M I T E D
Why Invest in Peru? #1 Producer of Gold, #2 Producer of Strong legal Lead, Tin, Zinc in copper and silver in framework for mining Latin America the world and investment BBB+ S&P rating $26.3b of mining (higher than Mexico, exports in 2011 Relatively low labour Brazil, and (61% of total and mining costs Colombia) exports) Sustained economic #2 most attractive Only 13% of Peru growth for last 10 country for covered by mining years. Forecast 6% investment in Latin concessions – 1% growth over next 5 America (World currently mined or years Bank 2014) explored 8 M I N E R A G O L D L I M I T E D
Southern Peru – A Prolific Gold Belt MIZ Properties Minas Esperanza Commenced: 2009 Minas San Juan Treatment: 450TPD Commenced: 1970 Grade: 2% Cu & 8 g/t Au 0.6M Oz Annual Prod: 12,000 Oz Treatment: 350TPD Grade: 7.9 gr/t Au Annual Prod: 18,000 Oz 9 M I N E R A G O L D L I M I T E D M I N E R A G O L D L I M I T E D
2014 Strategy – Overview Minera Gold has: High-grade narrow vein UG gold mine at Torrecillas in Peru – 1,600oz p/mth by Dec 14. Exciting exploration assets: near mine exploration at Torrecillas and also at Tumi. JV on development stage gold assets in Brazil. 2013 was a year of consolidation and re-focus on ramping up production in Peru. 2014 is about delivery. To maximise cash flow from Peru over next 12 months: Operating Lease of processing plant is key ~>$220/oz cash cost reduction. Secured for 3 years with first processing to occur in July 2014 Lower costs and increase operational efficiency at Torrecillas. Achieved through: Replacement of OPEX fleet with $2.5M Capex Program to go owner operator Horizontal development at Torrecillas to discover low cost ounces to the east and west Bring on additional veins (Ady, Tessie and Rebeca) Sourcing of additional oxide ore within the existing mining permit and also third party ore for toll treatment to ensure the plant runs at maximum capacity. Due to the high grade nature of our own resource, we would be looking to only source third party ore that grades ¡in ¡excess ¡of ¡20 ¡gpt ¡Au” 10 M I N E R A G O L D L I M I T E D
San Santiago Processing Plant Plant Highlights Fully permitted 350TPD Cu and Au Plant Located ~180km from Torrecillas mine Hydo grid power, local bore water supply Copper sulphide, copper oxide, CIP circuits Supportive community – all miners Synergy with MIZ Gold Business LOI for lease of CIP circuit signed in December. Low CAPEX to de-couple the crushing circuit Increase gold recoveries by up to 15% Decrease cash costs by >US$220 / oz Provides as opportunity to toll treat high grade ore for third parties to fill idle capacity 11 M I N E R A G O L D L I M I T E D
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