Aurora Gold Mine: Analyst Information Session – Jan 18, 2016 A True Mining District
Forward ‐ Looking Statement This presentation of Guyana Goldfields Inc. (the "Company") contains statements that constitute "forward ‐ looking statements." Such forward ‐ looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward ‐ looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "aims," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource and mineral reserve estimates may also be deemed to be forward looking statements, as such information constitutes a prediction of what might be found to be present when and if a project is actually developed. Forward ‐ looking statements this document includes are statements regarding: the Company's expectations regarding drilling and exploration activities on properties in which the Company has an interest; and the Company's statements regarding estimates of reserves and resources on properties in which the Company has an interest. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward ‐ looking statements that speak only as of their respective dates. Important factors that could cause actual results to differ materially from the Company's expectations include among others, risks related to fluctuations in mineral prices; uncertainties related to raising sufficient financing to fund planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the estimation of resources and reserves; the possibility that required permits 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 preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overrun or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from the Company's operations; risks associated with title to mineral properties; and other risks and uncertainties discussed appear elsewhere in the Company's 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 proposed transactions and programs on reasonable terms, and the ability of outside service providers to deliver services in a satisfactory and timely manner. Forward ‐ looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as expressly required by applicable securities laws, the Corporation undertakes no obligation to update these forward ‐ looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. This presentation uses the terms "Inferred Resource", "Indicated Resource", “Measured Resource” and "Mineral Resource". The Company advises readers that although these terms are recognized and required by Canadian securities regulations (under National Instrument 43 ‐ 101 "Standards of Disclosure for Mineral Projects"), the US Securities and Exchange 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 be converted into reserves. In addition, "Inferred Resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that any part of an Indicated or 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 feasibility or pre ‐ feasibility studies, or economic studies except for a Preliminary Assessment as defined and permitted under National 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 Mineral Resources stated in this presentation are not Mineral Reserves and, in the absence of a current feasibility study, do not demonstrate economic viability. The determination of Mineral Reserves can be affected by various factors including environmental, permitting, legal, title, taxation, socio ‐ political, and marketing issues. www.guygold.com 2 TSX : GUY
Aurora Gold Mine: High Grade, Low Cost Producer Jan 2016 Financials @ 5% DR ($1,000/oz Au) 43 ‐ 101 FS Average Mill Throughput 5,000/6,040 tpd Strip Ratio 6.8:1 Average LOM Grade 2.94 g/t Au 97%(sap), Gold Recovery 94.4%(fresh) Total Gold Production 2.86 M oz Mine Life 16 yrs Avg Operating Cash Cost w/Royalty (LOM) US$564/oz AISC (LOM) US$661/oz 2016 Mill Expansion Capital US$5.6M Pre ‐ Tax NPV US$672M After ‐ Tax NPV US$568M Annual Production 2016E 130 – 150koz 2016 AISC Guidance US$587 – 637/oz Net Revenue US $2.7B www.guygold.com 3 TSX : GUY
Mineral Resource Statement Aurora Gold Mineral Resource Statement – September 30, 2015 Quantity Grade Contained Gold Classification (000’ Tonnes) Gold ( g/t) (000’ Ounces) Open Pit Mining Measured 5,720 3.24 590 Indicated 26,780 2.51 2,160 Inferred 5,080 1.54 250 Underground Mining Measured Indicated 30,060 3.91 3,780 Inferred 11,810 4.12 1,560 Combined Mining Measured 5,720 3.23 590 Indicated 56,850 3.37 5,940 Inferred 16,890 3.80 1,810 Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates. The cut ‐ off grades are based on a gold price of US$1,300 per ounce and metallurgical recoveries of ninety ‐ five percent for saprolite and fresh material. Open pit resources are reported within conceptual optimized open pit shells, whereas underground resources are external to these. Open pit resources are reported at a cut ‐ off grade of 0.30 g/t Au and 0.40 g/t Au for Saprolite and Fresh rock respectively, whereas underground resources are reported at a cut ‐ off of 1.8 g/t Au. www.guygold.com 4 TSX : GUY
Mineral Reserve Statement Aurora Gold Mineral Reserve Statement – September 30, 2015 Quantity Grade Contained Gold Classification (‘000 tonnes) Gold (g/t) (‘000 ounces) Proven Open pit Saprolite 89 3.49 10 Open pit Fresh Rock 4,976 3.11 498 Total Proven 5,065 3.12 508 Probable Open pit Saprolite 3,543 2.02 230 Open pit Fresh Rock 9,000 2.87 832 Underground Fresh Rock 14,904 3.13 1,502 Total Probable 27,447 2.91 2,564 Total Proven and Probable 32,512 2.94 3,072 Mineral Reserves are based on a gold price of US$1,000 per ounce, 5% royalty and an average metallurgical recovery of 97.0% for saprolite and 94.4% for fresh rock material. Open pit saprolite rock reserves are reported at a cut ‐ off grade of 0.43 g/t Au and 0.41 g/t Au for vein and upper saprolite material respectively. Open pit fresh rock reserves are reported at a cut ‐ off grade of 0.75 g/t Au and 0.64 g/t Au for vein and Rory’s Knoll fresh rock material respectively. Underground fresh rock reserves are reported at a cut ‐ off grade of 1.62 g/t Au. www.guygold.com 5 TSX : GUY
Open Pit Mining Production Schedule All mining to date has been focused in the Rory’s Knoll pit and will continue through the end of 2016. Gold production is staged with an initial open pit mill throughput rate of 5,000 tpd from the Rory’s Knoll deposit expanding to 8,000 tpd in early 2017 with the inclusion of other open pit feeds from the Aleck Hill and Mad Kiss deposits. www.guygold.com 6 TSX : GUY
Mill Expansion During the initial years when saprolite and fresh rock ore are combined, mill throughput rate ranges from 5,000 - 8,000 tpd. After eight years of operation, open pit mining will be completed. The 2016 capital cost for the mill expansion from 5,000 tpd to 8,000 tpd is approximately US$5.6M and is funded from free cash flow and is contingent upon economic conditions. Major components of the plant were built for a 10,000 tpd throughput rate allowing for lower expansion capital. Requirements: 1 leach tank, 1 CIL tank, upgrade cyclones and pump, new screens (trash, carbon, inter-tank, additional electrowinning cell, additional tailings pipeline and pump). www.guygold.com 7 TSX : GUY
Project Facilities at End of Open Pit Mining www.guygold.com 8 TSX : GUY
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