PLATFORM FOR GROWTH February 2017 www.timminsgold.com TSX:TMM | NYSE MKT:TGD 0 TSX: TMM NYSE MKT: TGD
At a Glance Capital Structure Shares Outstanding 355.6M SAN FRANCISCO Warrants (C$0.35 strike) 10.0M (C$0.70 strike) 18.2M Fully Diluted Shares 383.8M San Francisco Mine Sonora, Mexico Recent Share Price US$0.40 Status: Operating 2016: 100,300 oz gold produced at <US$900/oz AISC (est) Market Capitalization US$146M 2017E: 70,000 to 75,000oz at <1,000/oz AISC Balance Sheet EJUTLA Cash at December 31, 2016 US$34M Debt none ANA Major Shareholders PAULA • Goldcorp Ejutla Project • Sentry Investments Oaxaca, Mexico Ana Paula Project Status: Exploration Guerrero, Mexico • Lundin Group Status: Feasibility Adjacent to Fortuna’a • Sun Valley Gold PEA Feb 2016 @$1,200/oz Gold San Jose Project NPV US$248m, IRR 43% • Aga Nola AG 1 TSX: TMM NYSE MKT: TGD
Our Vision Platform to build a mid-tier gold producer • Unlocking and creating value from existing assets • Produced 103k oz gold in 2016 SAN • Generated ~ $24M mine-level free cash flow for 9 mos. at avg. gold price of ~$1,224/oz FRANCISCO • 2017 Guidance 70k to 75koz at AISC <US$1,000/oz MINE • 5 Year operating plan in place for 2018-2022 with substantial production upside • High grade open pit growth project on the Guerrero Gold Belt – PEA completed Feb 2016 ANA • 130,000 oz/yr for first 5 years at <$500/oz AISC PAULA • Capital efficient project – 6,000 tpd mill purchased, demobilized and in storage PROJECT • Feasibility study underway, permitting well advanced • San Francisco near mine - improve existing 5 year plan • Sonora land holdings - leverage from San Francisco infrastructure EXPLORATION • Ana Paula - significant exploration potential at depth and on prospective land package on Guerrero Gold Belt • Ejutla – greenfield exploration property in highly prospective Oaxaca state 2 TSX: TMM NYSE MKT: TGD
Board and Management Bryan Coates, Ind. Greg McCunn, Stephen Lang, Tony Hawkshaw, CEO Chairman Independent Independent •President Osisko •Chairman Centerra •Founding shareholder, •Former CFO Asanko, Royalties former CFO Rio Alto Farallon •Former CEO, COO Centerra •Former CFO Osisko •Former CFO Pan •Operations Teck, Placer Mining, IAMGOLD, Dome American Silver •Operations Barrick, Cambior Kinross Paula Rogers, George Brack, Mark Backens, Jose Vizquerra, Independent Independent Director Independent •Former CFO Castle •Chairman Capstone •Past interim CEO •EVP Osisko Mining Peak •Director, Silver •Geologist/investment •Former CEO Oban •Finance Goldcorp, Wheaton banking •P.Geo – Buenaventura, Silver Wheaton •Geologist/investment •Placer Dome/Meridian Goldcorp banking Arturo Bonillas, J. Hector Figueroa, Jorge Vidana, Miguel Bonilla, President VP Operations GM San Francisco VP Finance & Admin •Founding shareholder •Permitting •Former COO Southern •25 years Grupo Frisco Peru Copper •+30 years operations •Union relations and exploration 3 TSX: TMM NYSE MKT: TGD
San Francisco Mine Key Operating Statistics Units 2016 • Solid production year in 2016: Ore Processed Mt 7.65 – 100,300oz produced Ore Grade g/t Au 0.58 – AISC ~$800/oz • Guidance for 2017: Mt 14.9 Waste Mined – 70,000 – 75,000 ounces gold Strip Ratio W:O 2.0:1 – Cash costs $900-950/oz – AISC <$1,000/oz • 2017 low production year as pit behind on stripping • Investigating operational improvements to 2017 • 2018 to 2022 improve resource to reserve conversion 4 TSX: TMM NYSE MKT: TGD
San Francisco Mine | Resources San Francisco Pit M&I 42.0 Mt @0.60 g/t= 814 koz Au La Chichara Pit P&P 24.9 Mt @0.57 g/t =457 koz Au M&I 13.5 Mt @0.5 g/t= 215 koz Au P&P 7.2 Mt @0.51 g/t =117 koz Au Phase 5 – Current Stripping Phase 6 Phase 7 Note: • M&I Resource @ $1350/oz Au Las Barajitas Pit inclusive of P&P Reserves No published resource • P&P Reserves @ $1250/oz Au • All as of July 1, 2016 NI 43101 Currently being mined technical report filed on SEDAR 5 TSX: TMM NYSE MKT: TGD
Ana Paula Project | Guerrero Gold Belt Leagold – Los Filos Torex Limon Guajes San Luis Morelos Rey David TXG TMM Ana Paula Project Area TSX: TMM NYSE MKT: TGD
Ana Paula | Project Overview • Updated PEA completed in February 2016 to incorporate used processing facility (now decommissioned and in storage) • Initiated $9.2m project advancement program in Aug 2016 • Current work program to complete PFS in Q2 2017 • Definitive feasibility study, permitting and financing to follow • Target investment decision in Q2 2018 Current Work Program Infill Drilling 10,000m Feb 2017 Flowsheet Development Feb 2017 Resource Modelling / Mine March/ Planning April 2017 Metallurgical Testing March 2017 Pre-Feasibility Study June 2017 7 TSX: TMM NYSE MKT: TGD
Ana Paula | PEA Highlights Robust Economics Lowest Quartile Operating Costs Mining ($/t processed) $6.00 Capital Cost $120 m Processing ($/t processed) $15.52 Strip Ratio 2.6:1 waste:ore G&A ($/t processed) $2.34 Mining Rate 23,385 tpd Total Operating Cost ($/t processed) $23.98 Plant Throughput 6,000 tpd Total Cash Cost (net of by-product) $442/oz 2.24 g/t gold Head Grade 6.89 g/t silver Total AISC (net of by-product) $479/oz 75% gold Recovery 2016 Total Cash Cost Curve ($/oz) 50% silver $1,400 Average Annual Production 130,800 oz gold First Quartile $1,200 Cash Costs (First 5 years) 298,600 oz silver $1,000 $800 Life of Mine 8.2 years $600 $400 NPV 5% = $248 m After Tax @$1,200/oz Gold $200 IRR = 46% $0 25% 50% 75% 100% Source: Ana Paula PEA dated February 2, 2016, US$ (Source: WoodMac 2016 total cash costs (including royalties) 8 TSX: TMM NYSE MKT: TGD
Ana Paula | Infill Drilling Hole Interval Width (m) Gold (g/t) Silver (g/t) • Infill drilling tightening up drill spacing from AP-16-253 151.07 8.98 6.52 PEA to be used in update Mineral Resource AP-16-252 48.4 12.16 10.72 Estimate AP-16-264 28.85 11.59 13.32 AP-16-270 26.25 11.94 13.62 • Over 8,000m with assay results confirming AP-16-262 36.82 7.32 6.31 high grade mineralization AP-16-270 42.8 4.78 5.9 AP-16-246 38.55 5.19 2.5 A A 9 TSX: TMM NYSE MKT: TGD For complete drill results and sections see the Company’s website
Ana Paula | Metallurgy 6,000 tpd Mill PEA: Decommissioned and in Storage • Crushing - grinding - gravity gold recovery - flotation - regrind - CIL - Dore • Incorporated 6,000 tpd processing plant purchased last year • Metallurgical recovery was estimated at 75% for gold Current Test Program • Comminution tests confirm 6,000 tpd crushing and milling plant suitable for processing Ana Paula ore • Gravity gold recovery tests show 40-50% recovery in gravity concentrate • Rougher flotation test work: >95% recovery with a 15-20% mass pull • Pre-oxidation step ahead of CIL enhances gold recovery • Overall gold recovery estimated at 80-85% • More test work underway – variability and pre-oxidation conditions • Very similar flowsheet to the PEA, limited additional capital expected to be required 10 TSX: TMM NYSE MKT: TGD
Ana Paula | Near Mine Exploration • Potential to expand project by increasing resource base • High grade breccia mineralization extends to depth Tenure of mineralization indicates good margins can be achieved with underground mining Multiple intercepts with grade sufficient to support underground mining Meaningful underground kicker to open-pit production Below Pit Bottom Drill Highlights Interval Ag Drill hole From To Au g/t (m) g/t AP-35 685.00 692.41 7.41 7.39 4.9 AP-70 677.50 692.50 15.00 26.09 21.1 AP-86 520.42 545.45 25.03 5.10 12.3 AP-97 550.16 562.50 12.34 32.11 3.6 AP-125 339.54 354.90 15.36 7.92 3.8 AP-137 320.60 368.18 47.58 5.45 4.1 AP-215 677.10 716.49 39.39 6.42 9.7 11 TSX: TMM NYSE MKT: TGD
Ana Paula | Regional Exploration Upside • 50,000 hectare land package with numerous potential targets 12 TSX: TMM NYSE MKT: TGD
Greenfield Exploration – Ejutla, Oaxaca Oaxaca • Greenfield exploration site in highly prospective Oaxaca State, Mexico • Evidence of epithermal gold-silver target • Initial 5,000m drill program developed • Potential pipeline project after Ana Paula build commences. 13 TSX: TMM NYSE MKT: TGD
Timmins Value Opportunity Highlights Key Catalysts Platform for growth 2016 Results Mar 9, 2017 Pipeline of assets, all in Mexico San Francisco Revitalization Plan Q2 2017 San Francisco mine generating positive Ana Paula PFS Q2 2017 cash flow High grade, high margin Ana Paula Ana Paula Permitting & Financing Q4 2017 project permitting and feasibility Ana Paula DFS Q1 2018 Balance sheet stable with US$34m cash Ana Paula Investment Decision Q2 2018 and no debt ~50% Attractive Valuation higher than current share price 14 TSX: TMM NYSE MKT: TGD Sources: (1) SF = consensus NAV; (2) AP = February 2, 2016 PEA; (3) Source: Capital IQ analyst consensus
www.timminsgold.com TSX:TMM NYSE MKT:TGD Contact Us: Alex Tsakumis Vice President Corporate Development alex@timminsgold.com 604.638.8976
Recommend
More recommend
