LEADING HIGH-GRADE GOLD EXPLORATION in JAMES BAY, Québec EAU CLAIRE – MAY 2018 PEA EASTMAIN RESOURCES INC. TSX:ER; OTCQX:EANRF 1 PEA PRESENTATION – MAY 23, 2018
FORWARD-LOOKING STATEMENTS Certain information set forth in this presentation may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or timing of future plans, and include, but not limited to actual results of current and future exploration activities at the Company's properties, and the potential success of the Company’s future exploration and development strategies. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Eastmain, including, but not limited to the results of the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, the availability of financing, timely completion of proposed studies and technical reports, and risks associated with the exploration, development and mining industry generally such as economic factors as they affect exploration, future commodity prices, changes in interest rates, safety and security, political, social or economic developments, environmental risks, insurance risks, capital expenditures, operating or technical difficulties in connection with development activities, personnel relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of Mineral Resources, contests over property title, and changes in project parameters as plans continue to be refined. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update such information, except as may be required by law. All currencies are reported in Canadian dollars unless otherwise specified. 2 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
EXECUTIVE SUMMARY 3 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
WORLD-CLASS JURISDICTION QUÉBEC, CANADA - SAFE AND STABLE WITH SUPERIOR INFRASTRUCTURE Québec and James Bay - Ideal for Exploration! Supportive government Investments Tax credits Flow-through incentives Plan Nord – Québec’s 2018 budget includes investments in existing and remote access routes Promotion of Mineral Resource sector Major Québec funds investing in mining Pro-development and pro-active indigenous (Cree) communities Clearly Defined Permitting Process Staged Evaluation Process through Standing Committees COMEV – Project Evaluation • ESIA set by Québec MDDELCC COMEX – Project Review with Cree Nation Government, Province and Canada Québec Directive 19 Compliance 4 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
EAU CLAIRE PROJECT LOCATION Located on the territory of the Cree Community of Eastmain (180 km east of (36.7%) the community) (100%) Within 20 km of major hydro-electric infrastructure Air transport to Nemaska Road access to mining communities of Chibougamau and Matagami Clearwater property 100% owned by Eastmain Resources 5 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
ROBUST ECONOMICS Financial Highlights Operating Highlights Mine Life 12 years NPV 5% (pre-tax) C$381M IRR (pre-tax) 32% Daily Throughput (LOM) 1,500 tpd NPV 5% (after-tax)\ C$260M LOM Au Produced 951,000 oz IRR (after-tax) 27% LOM Average Annual Production 79,200 oz/y Payback 3.1 years Average Annual Production (Yrs 1-10) 86,100 oz/y Pre-Production Capex C$175M Total Mineralization Processed OP: 1.64 Mt Sustaining Capex (LOM) C$108M UG: 4.76 Mt Average LOM Total Cash Costs C$632/oz Total: 6.40 Mt US$486/oz Average Head Grade (fully diluted) OP: 3.78 g/t Au UG: 5.24 g/t Au AISC C$746/oz Total (blended): 4.86 g/t Au US$574/oz Process Plant Recovery 95% Key assumptions US$1,250/oz Au C$/US$ 0.77 FX 6 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
BENCHMARKING CANADIAN DEVELOPER PEERS Eau Claire compares well versus peers on key metrics 7 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
Eastmain Undervalued Versus Peers DEVELOPER P/NAV (2) (1) Eastmain undervalued based on PEA; as well, no value being ascribed to Eastmain Mine (new high-grade resource) or Éléonore South JV (new discovery w/ partners Goldcorp & Azimut) Source: FactSet. (1) Based on a select group of other development companies in the gold space. (2) NAV based on Eau Claire NPV and corporate adjustments only. No value ascribed for other Eastmain projects including Eastmain Mine and Éléonore South JV. 8 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
HIGH MARGIN, STABLE PRODUCTION Production Profile (86,100 oz/yr avg. yrs 1-10) Initial Capital Water, Waste, Surface Equip 120 Initial Capital C$175M & Tailings & Bldg Mining $4.6M $1.6M 100 Sustaining Capital C$108M Owner Costs $11.0M 80 (000 oz Au) Infrastructure 60 $18.8M Process Plant 40 $67.1M Open Pit Mining 20 $21.8M 0 1 2 3 4 5 6 7 8 9 10 11 12 Power & Electrical Contingency Year $22.5M $27.3M Throughput and Grade Operating Margin 600 7.0 G&A Total Cash Cost US$486/oz Au 6.0 500 $80M Sustaining $108M 5.0 AISC US$574/oz Au 400 4.0 (g/t Au) Milling (ktpa) $145M 300 3.0 Gross Profit 200 $825M 2.0 100 1.0 Mining $376M 0 0.0 1 2 3 4 5 6 7 8 9 10 11 12 Year Throughput Grade 9 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
SITE LAYOUT Waste Rock Tailings Management Facility West Open Pit Main Open Pit Process Plant and Mineralized Stock Pile Ramp Portal Mine Camp 10 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
OPPORTUNITIES TO INCREASE PROJECT VALUE UPSIDE & RECOMMENDATIONS 3-in-3 Exploration Vision (next slides) 3 million oz of total Mineral Resources in 3 years Deposit expansion at depth Near deposit targets Property-scale satellite targets Plan Nord infrastructure savings (multi-use partnerships) Advanced exploration to optimize advanced technical studies Exploration ramp and bulk sample ($15M capital pre-spend) 11 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
EXPLORATION UPSIDE EAU CLAIRE DEPOSIT EXPANSION 75% of Current Mineral Resource 25% of Current Mineralization Mineral Resource potential at depth supported by deep intersections of QT and HGS Vein EXPANSION POTENTIAL structures at depth in an eastern plunge Rotated Longitudinal Projection of the Eau Claire Deposit Vein Wire Frames 12 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
EXPLORATION UPSIDE NEAR DEPOSIT OPPORTUNITIES Historic prospect evaluation and limited drilling confirmed by 2016-2017 surface Eau Claire 450W exploration provide & 850W Zones direction for targeting of satellite Mineral Resources to Eau Claire Use Eau Claire deformation model and regional fold axes as a focus for exploration New, extensive trenching and mapping to precede drill testing 1 0 2km 13 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
EXPLORATION UPSIDE PROPERTY SCALE TARGETS 2018 Plan Apply new interpretations of structural geology from geophysical information and property scale historic mapping and soil geochemistry to renew property wide detailed exploration Focus on strong structural deformation Near Deposit Targets systems and rheologic contrasts similar to those that contributed to the development of Eau Claire 14 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
TECHNICAL SUMMARY 15 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
2018 MINERAL RESOURCE UPDATE Mineral Resource Modelling 19 additional holes completed Sept – Nov 2017 14,900 m additional drilling 62,000 oz Au additional ounces to 2017 Mineral Resource Cut-Off Grade Open Pit: 0.50 g/t Au Underground: 2.50 g/t Au Mineral Resource Parameters Gold price: US$1,250 per oz Exchange rate: US$0.80:C$1.00 Process recovery: 95% OP mining cost: C$3.50 per tonne mined UG mining cost: C$70.00 per tonne mined G&A cost: C$5.00 per tonne processed Processing cost: C$20.00 per tonne processed Mining loss/dilution (open pit): 5% / 5% Assumed overall pit slope angle: 50 degrees 16 EASTMAIN CORPORATE PRESENTATION TSX:ER; OTCQX:EANRF www.eastmain.com
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