A SCARCE ASSET IN A TRUE MINING DISTRICT August 2017
FORWARD LOOKING STATEMENT This presentation of Guyana Goldfields Inc. (the "Company") contains other unanticipated difficulties or interruptions; the possibility of cost overrun or statements that constitute "forward-looking statements." Such forward-looking unanticipated expenses in the work program; the risk of environmental statements involve known and unknown risks, uncertainties and other factors contamination or damage resulting from the Company's operations; risks that may cause our actual results, performance or achievements, or associated with title to mineral properties; and other risks and uncertainties developments in our industry, to differ materially from the anticipated results, discussed appear elsewhere in the Company's documents filed from time to performance or achievements expressed or implied by such forward-looking time with the Toronto Stock Exchange and Canadian securities regulators. statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," These statements are based on a number of assumptions, including "aims," "plans," "anticipates," "believes," "intends," "estimates," "projects," assumptions regarding general market conditions, the availability of financing for "potential" and similar expressions, or that events or conditions "will," "would," proposed transactions and programs on reasonable terms, the cost of "may," "could" or "should" occur. Information inferred from the interpretation of exploration and development and the ability of outside service providers to drilling results and information concerning mineral resource and mineral reserve deliver services in a satisfactory and timely manner. Forward-looking statements estimates may also be deemed to be forward looking statements, as such are based on the beliefs, estimates and opinions of the Company's information constitutes a prediction of what might be found to be present when management on the date the statements are made. Except as expressly and if a project is actually developed. Forward-looking statements this document required by applicable securities laws, the Corporation undertakes no obligation include statements regarding: the Company's expectations regarding drilling to update these forward-looking statements in the event that management's and exploration activities on properties in which the Company has an interest; beliefs, estimates or opinions, or other factors, should change. and the Company's statements regarding estimates of reserves and resources on properties in which the Company has an interest. This presentation uses the terms "Inferred Resource", "Indicated Resource", “Measured Resource” and "Mineral Resource". The Company advises readers There can be no assurance that such statements will prove to be accurate. that although these terms are recognized and required by Canadian securities Actual results and future events could differ materially from those anticipated in regulations (under National Instrument 43-101 "Standards of Disclosure for such statements, and readers are cautioned not to place undue reliance on Mineral Projects"), the US Securities and Exchange Commission does not these forward-looking statements that speak only as of their respective dates. recognize these terms. Readers are cautioned not to assume that any part or all Important factors that could cause actual results to differ materially from the of the mineral deposits in these categories will ever be converted into reserves. Company's expectations include among others, risks related to fluctuations in In addition, "Inferred Resources" have a great amount of uncertainty as to their mineral prices; uncertainties related to raising sufficient financing to fund existence, and economic and legal feasibility. It cannot be assumed that any planned work in a timely manner and on acceptable terms; changes in planned part of an Indicated or Inferred Mineral Resource will ever be upgraded to a work resulting from weather, logistical, technical or other factors; the possibility higher category. Under Canadian rules, estimates of Inferred Mineral Resources that results of work will not fulfill expectations and realize the perceived potential may not form the basis of feasibility or pre-feasibility studies, or economic of the Company's properties; uncertainties involved in the estimation of studies except for a Preliminary Assessment as defined and permitted under resources and reserves; the possibility that required permits may not be National Instrument 43-101. Readers are cautioned not to assume that part or obtained on a timely manner or at all; the possibility that capital and operating all of an Inferred Resource exists, or is economically or legally mineable. The costs may be higher than currently estimated and may preclude commercial Mineral Resources stated in this presentation are not Mineral Reserves and, in development or render operations uneconomic; the possibility that the estimated the absence of a current feasibility study, do not demonstrate economic viability. recovery rates may not be achieved; risk of accidents, equipment breakdowns The determination of Mineral Reserves can be affected by various factors and labour disputes or including environmental, permitting, legal, title, taxation, socio-political, and marketing issues. 2 www.guygold.com
INVESTMENT HIGHLIGHTS High grade +200 average koz/yr Au producer with +15 years reserve life with upside Simple metallurgy and mine plan, positive grade reconciliation to date A Scarce Asset Exceptional free cash flow generation No by-products 100% Pure Gold Minimal currency exposure Exposure Oil price hedged for the near term up to 2019 Organic Growth +20% annual production growth 2017 to 2018 via mill expansion from 5,600 – 8,000 tpd Strong Balance Cash position of US$65.4M vs. debt of US$68.8M as at June 30, 2017 Sheet +200,000 acre land package in highly prospective & underexplored greenstone belt District Potential Targeting open pit exploration targets within a 30km radius from Aurora Mill 3 www.guygold.com
WHAT STANDS US APART? Aurora is a High Grade Gold Mine Proven and Probable Reserves Grade – Precious Metals Only (g/t Au equivalent) 3.4 2.9 2.7 2.3 2.2 1.7 1.5 Median: 1.3 g/t 1.3 1.3 1.2 1.0 1.0 0.8 0.7 0.7 0.6 0.4 (1) (2) (3) SEMAFO Guyana Torex Alacer Primero Alamos OceanaGold B2Gold IAMGOLD Eldorado Tahoe Detour New Gold Kinross Centerra Silver Standard Yamana Source: Company filings and BMO Capital Markets Note: Includes precious metals, converted to AuEq grade using LT pricing of US$1,250/oz Au and US$18.00/oz Ag when not converted by the company. 4 www.guygold.com
2017 Performance: On Track To Meet Guidance Excellent health, safety and environmental track record with + 3,500,000 employee hours worked without a lost time incident ! Q1 2017 Q2 2017 FY Guidance Gold Produced (ounces) 40,900 29,700 160-180k Cash costs per ounce – before royalty¹ ($/ounce) 516 757 500-550 All-in sustaining 1 (“AISC”) ($ per ounce) 861 1,144 775-825 Cost of sales (prod, royalty and dep) ($/ounce) 827 1,164 800-850 Gold Sold (ounces) 40,700 30,000 Average Realized Gold Price US$/ounce 1,227 1,263 Gross Revenue (US$ mlns) 50M 38M Ore mined (tonnes) 498,800 511,600 Waste mined (tonnes) 2,389,700 3,097,200 2,888,400 Total Mined (tonnes) 3,608,800 Strip ratio (waste:ore) 4.8 6.1 32,100 Tonnes mined per day 39,700 602,800 Ore processed (tonnes) 515,600 Tonnes processed per day 6,700 5,700 Head grade g/t Au 2.44 2.06 Recovery (%) 89.7 86.5 1 This is a non-IFRS measure. Refer to non-IFRS Performance Measures section in the latest MD&A 5 www.guygold.com
Q2: Weakness is in the Past and Non Recurring • Lower Grade: • Fed the mill with lower grade stockpiled ore along with a higher strip ratio. • Non-Recurring: Stockpile was accumulated early on in the mine life when ore control measures were still being fine tuned. Low grade stockpile has been depleted and the strip ratio is expected to decline significantly in Q3 and Q4 based on mine sequencing as mining shifts to higher grade ore within the Rory’s Knoll tonalite. • Lower Recovery: • Presence of organic material (timber shafts and support beams) associated with the historic underground workings at Aleck Hill resulted in the preg-robbing of gold ore in the processing circuit causing lower than expected gold recoveries. • Non-Recurring : GGI is now close to mining below the level of the historic underground workings and, hence, does not expect to encounter further organic material. • Higher Costs: • Lower grades, lower recoveries and a higher strip ratio resulted in higher costs. • Higher mining costs due to a delayed delivery of two new drill rigs to site resulting in the continued use of more expensive rental drills. • Higher blasting costs due to a manufacturer delivery delay of bulk emulsion explosives to site resulting in a shift back to more expensive packaged explosives. • Non-recurring : All items and equipment arrived at site resulting in the full operation of the two new drill rigs and bulk emulsion explosives being used starting in Q3 for all blasting activities. 6 www.guygold.com
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