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Analyst & Investors Site Tour ‐ November 13, 2018
Aurora Gold Mine 1 www.guygold.com FORWARD LOOKING STATEMENT This - - PowerPoint PPT Presentation
Analyst & Investors Site Tour November 13, 2018 Aurora Gold Mine 1 www.guygold.com FORWARD LOOKING STATEMENT This presentation of Guyana Goldfields Inc. (the "Company") contains other unanticipated difficulties or
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Analyst & Investors Site Tour ‐ November 13, 2018
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This presentation
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
actual results, performance
achievements,
developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking
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 include 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
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
resources and reserves; the possibility that required permits may not be
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
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
a number
assumptions, including assumptions regarding general market conditions, the availability of financing for proposed transactions and programs
reasonable terms, the cost
exploration and development and the ability of outside service providers to deliver services in a satisfactory and timely manner. Forward-looking statements are based
the beliefs, estimates and
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
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.
FORWARD LOOKING STATEMENT
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AGENDA
Overview # Guyana 5 Sustainability 7 Operations Location & Logistics 12 Mining 13 Milling 21 Financial Opex 27 Capex 28 Exploration 30
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GUYANA: MINING FRIENDLY JURISDICTION & GOVERNMENT
South America
Exxon
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AURORA: A MAJOR CONTRIBUTOR TO GUYANA’S SOCIO‐ ECONOMIC DEVELOPMENT
South America
GUY Small scale miners
25% of National Production
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Focus on health and safety of our employees, the well-being of our community and the protection of the natural environment
Hiring in the region, giving priority to local communities:
Milling)
Supporting our local community:
CSR AND SUSTAINABLE DEVELOPMENT
Following World Bank International Standards
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HEALTH & SAFETY
0.5 1 1.5 2 2.5 Jan‐16 Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16 Oct‐16 Nov‐16 Dec‐16 Jan‐17 Feb‐17 Mar‐17 Apr‐17 May‐17 Jun‐17 Jul‐17 Aug‐17 Sep‐17 Oct‐17 Nov‐17 Dec‐17 Jan‐18 Feb‐18 Mar‐18 Apr‐18 May‐18 Jun‐18 Jul‐18 Aug‐18 Sep‐18 LTI/LTIFR
Lost Time Injury Frequency Rate
Lost time incident LTIFR ‐ GUY LTIFR ‐ WA Industry Average 2016/17
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HEALTH & SAFETY: IMPLEMENTED PROGRAMS
Safety
New Workers Orientation Program Fall Protection Confine Space Lock out and Tag out Hot Work Heavy Equipment Operators
Health
Annual Health Fair Community Outreach
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MANPOWER
Category/Type Permanent Employees Temporary Employees Total Employees¹ Breakdown by Gender Male Female Nationals 656 76 732 668 64 Expatriates 40 2 42 41 1 Total AGM Workforce (As at October 31, 2018)
1) Does not reflect contractor employees
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Rory’s Knoll Mad Kiss/ UG Portal Aleck Hill
OPERATIONS
Mill
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AURORA GOLD MINE LOCATION
1) Resource Resources statement dated December 14, 2011 2) Mineral Reserves & Resources statement dated December 31,2017
¹ ²
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OPERATIONS OVERVIEW
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2018 LOM PLAN SCHEDULE
‐ 5 10 15 20 25 30 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Material Mined (Mtonnes)
UG Ore OP Ore Waste
Source: Optimized Life Of Mine Plan – press release dated February 20, 2018
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OPERATIONS: AREAS OF FOCUS
AREA ACTION PLAN DELIVERABLES Reserve/Resource RPA reviewing geologic controls & grade Results incorporated in reserve/resource update in 1Q 2019 OP mining rates Optimize fleet availability & productivity Steady state mining rate of 70,000 tpd Optimize mining costs Complete transition to rigid frame trucks & optimize drill & blast Target mining cost reduction of 10% in 2019 Reserve/resource replacement Aggressively ramp up near‐mine drilling 3 drill rigs active on near‐mine targets in 1Q 2019 UG early works Signed LOI related to the early works development Portal collar scheduled to be completed in the fourth quarter UG development Award of ramp development contract in 4Q 2019 Advance exploration decline ~ 2,500 metres
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GRADE VARIABILITY: PROJECT TO DATE
Source: Company Reports
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
Head Grade (Au g/t)
Mill Head Grade
Head Grade Average Head Grade
1) Optimized Life Of Mine Plan – press release dated February 20, 2018
¹
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GRADE RECONCILIATION TO DATE
processed and low grade sent to stockpile
4Q18
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50 100 150 200 250 2016 2017 2018E Gold Produced (koz)
Original Guidance vs Actual/Forecast
Guidance ‐ Lower End Guidance ‐ Upper End Actual 18
GRADE RECONCILIATION TO DATE
Forecast grade BOY¹ 2.79 2.65 2.91² Actual grade 2.76 2.49 1.98³ % variance ‐1% ‐6% ‐32%
Revised 2018 Guidance
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OP MINING: RATES NOW AT TARGETED LEVELS
Source: Company Reports
‐ 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 2018/01 2018/02 2018/03 2018/04 2018/05 2018/06 2018/07 2018/08 2018/09 2018/10
Tonnes per day
Total Material Mined
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OP MINING: TRANSITION TO RIGID FRAME TRUCKS
5 10 15 20 25 30 35 40 45 50 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18E
Truck Fleet Evolution ‐ Project to Date
40T Articulated Truck ‐ Guygold 40T Articulated Truck ‐ Contractor 40T Rigid Frame Truck ‐ Guygold 40T Articulated Truck ‐ Rental 40T Rigid Frame Truck ‐ Contractor ¹
Source: Company Reports 1) 4Q18E Fleet Composition is forecasted estimate
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GOLD MILLING COMPLEX
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MILL PERFORMANCE EXCEEDING EXPECTATIONS
Source: Company Reports
82% 84% 86% 88% 90% 92% 94% 96% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
Recovery Tonnes Per Day Processed
Mill Throughput & Recovery
Rock Saprolite Recovery
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Source: Company Reports
MILL EXPANSION NEARING COMPLETION
Phase 1 Phase 2 Throughput (tpd) 6,600 7,500 LOM recoveries (%) 93 94.8 Capital Cost ($mlns) $21 $6 Completion Q1 2018 Completed
4Q 2018 Mechanical completion progressing
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MAD KISS PORTAL
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UNDERGROUND DEVELOPMENT
exploration drift development except AH drift
and East Walcott exploration
management and contractor, with an expectation that a significant portion of 2019 capital will be smoothed out and deferred through 2020 without impacting the development schedule since capital was front‐ end loaded.
Source: Optimized Life Of Mine Plan – press release dated February 20, 2018
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OPEX
Description Unit 2018 Optimized LOM Plan OP Mining $/t mined 2.20¹ OP Mining $/t milled 21.76 RK UG Mining $/ore t mined 24.83 Satellite UG Mining $/ore t mined 48.35 Processing $/t milled 16.06 G&A $/t milled 9.12
1) Blended average of hard rock and saprolite ore Source: Optimized Life Of Mine Plan – press release dated February 20, 2018
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CAPEX
1) Optimized Life Of Mine Plan – press release dated February 20, 2018
2018 LOM Plan¹ LOM 2018 Development YTD 3Q2018 Variance Over/(Under) 150.6 18.9 UG Mine 0.9 (18.0) 1.9 1.9 OP Mine 3.7 1.8 12.9 12.9 Processing 11.3 (1.6) 0.7 0.7 Other 0.4 (0.3) 166.1 34.4 Total Development 16.3 (18.1) Sustaining Capital 138.1 36.1 Deferred Stripping 13.9 (22.2) 3.0 3.0 OP Mine 3.0 0.0 207.3 0.0 UG Mine 0.0 0.0 47.6 0.8 Plant 2.2 1.4 37.3 4.9 Other 1.6 (3.3) 433.3 44.8 Total Sustaining 20.7 (24.1) 599.4 79.2 Total Capital 37.0 (42.2)
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SIGNIFICANT CASH FLOW GENERATION
Source: Company Reports Note: 2016 excludes development capex Note: 2Q18 net cash position includes US$35mln of proceeds from sale of SolGold shares, which occurred September 4, 2018
(10.0) (5.0)
10.0 15.0 20.0 25.0 30.0 35.0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 (US$ mlns)
Strong Free Cash Flow Generation
Sustaining Capex Growth Capex Free Cash Flow Operating Cash Flow
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OBJECTIVE
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within Guyana;
GENERATIVE
MINE EX
GREENFIELDS
CREATE SHAREHOLDER VALUE BY ADDING AND REPLENISHING QUALITY GOLD RESOURCES AT EXISTING PROPERTIES AND BY THE ADDITION OF NEW EXPLORATION PROJECTS IN GUYANA
EXPLORATION STRATEGY
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PROPERTIES
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BROWNFIELDS EXPLORATION: Resource Growth Potential
Source: JDS, 2018
Open laterally and at Depth
Strategy:
surface to ‐400m.
underground ore shoots at East Walcott and Mad Kiss
resource development
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NEAR MINE EXPLORATION PIPELINE
CONCEPTUAL TARGETS (AREA SELECTION FOR POTENTIAL SYSTEMS AT CAMP SCALE) DEFINED GEOCHEMICAL ANOMALIES (SOILS, STREAMS, TRENCHES) TARGETED GEOLOGY AND/OR DEFINED DRILLING ANOMALY RESOURCE CONVERSION ACTIVE MINE
FOLLOW‐UP SAMPLING, MAPPING and ASSESSMENT EXPLORATION DRILLING GEOLOGIC DEFINITION AND INFILL DRILLING INFILL RC DRILLING ‐> DECISION TO MINE
3 TARGETS:
RORY’S KNOLL ALEC HILL MAD KISS
5 TARGETS:
RORY’S KNOLL DEEPS NW ALEC HILL WALCOTT HILL WEST MAD KISS SOUTH MAD KISS
3 TARGETS:
EAST WALCOTT DEEPS ALEC HILL DEEPS MAD KISS DEEPS
4 TARGETS:
SWAMP VEIN HAIMARALLI FALLS ALEC HILL WEST POWIS HILL
Target Generation within Economic Trucking Distance from the Mine
CATEGORY 1:
DEFINITION OF ORE RESERVES
CATEGORY 2:
POTENTIAL TO BE CONVERTED TO RESOURCES
TARGETING CLASSIFICATION EXPLORATION WORKFLOWS
CATEGORY 3:
EARLY STAGE & HIGH RISK TARGETS
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NEAR MINE EXPLORATION
MAD KISS HAIMARALLI FALLS NW ALEC HILL RORY’S KNOLL SOUTH MAD KISS ALEC HILL
“GOLDEN SQUARE MILE” LIKELY OCCURS ON SECONARY HINGES (AND LIMBS) OF LARGER SCALE FOLD ‐ ARCHITECTURE INDICATED BY MAGNETICS ANOMALIES AT SURFACE IN SOIL SAMPLES
SWAMP VEIN
MULTIPLE FOLD HINGES INDICATED BY MAGNETICS
POWIS HILL
HIGH GRADE DRILL ANOMALIES IN CLOSE PROXIMITY TO LARGER SCALE FOLD STRUCTURES ANOMALIES AT SURFACE CLOSE TO BATHOLITH CONTACT
ALEC HILL WEST
2000m
EAST WALCOTT
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NEAR TERM FOCUS AND OPPORTUNITIES
Next Focus Optimize Mining Operations Lowering Costs
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STRONG FINANCIAL POSITION
South America Cash and cash equivalents¹ Debt Facility¹²
1. As at Sept 30, 2018. 2. Facility assumes quarterly payments of US$5M. Interest rate of 3-month LIBOR plus 3.75%. No gold hedging. No prepayment penalty. The Company notified the debt lending syndicate in October of management's intention to make an accelerated payment of US$20 million by the end of the fourth quarter.
US$45M US$93M Cash Position
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WELL FUNDED
Source: Company Reports, Street Research as at Nov 8, 2018
($300.0) ($250.0) ($200.0) ($150.0) ($100.0) ($50.0) ‐‐ $50.0 $100.0 PG GUY GSC ROXG AR AKG DPM TGZ TMR EQX LMC TXG ASR
(US$ mlns)
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Total Shares Outstanding 173,530,802 Options 6,052,511 Warrants 52 week: Hi/Lo C$5.42 / C$1.29 Market Cap (at C$ 1.66) C$293 million Cash Balance (Sept 30, 2018) US$93 million Debt (Sept 30, 2018) US$45 million Top 5 Shareholders Shares % The Baupost Group 26.0M 15.0% Van Eck 11.6M 6.7% Wellington Management 11.2M 6.5% CI Investments 9.7M 5.6% Franklin Resources (Templeton) 6.5M 3.8%
CORPORATE SNAPSHOT
Shareholder Makeup
Insider Institutional Retail/other
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for the responsible exploration, development and utilization of natural resources whilst ensuring the protection and conservation of the environment and advancement of the green economy.
(GGMC) under the Mining Act of 1989. The Act allows the GGMC to be the guardian of all minerals in Guyana. Therefore, permission must be received from the GGMC, before any exploration activity can begin.
business of trading gold in Guyana. The Board secures adequate supplies
commercial and industrial activities.
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GUYANA: GOVERNING ORGANIZATIONS
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NO CURRENCY EXPOSURE
the Guyanese dollar has fluctuated from 200 – 207 GYD to 1 USD
1 USD (October)
Guyana averaged 4.78% from 1995 until 2018
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than ~750,000 barrels per day offshore Guyana by 2025.
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GUYANA: ATTRACTING MULTI‐NATIONAL ATTENTION
Source: Exxon 2018 Investor Information & Exxon press releases
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0.52 ounces per ton Au, mainly from Aleck Hill and a contribution from Mad Kiss.
Mad Kiss and Mad Kiss South areas.
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HISTORY OF MINING AT AURORA
Source: Company reports
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AURORA GOLD MINE EVOLUTION
DISCOVERY OF RORY’S KNOLL PRE‐FEASIBILITY FEASIBILITY, PERMITTING & FINANCING DEVELOPMENT PRODUCTION
2004 2009 2010-2013 2016 2014-2015
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ENVIRONMENT
COMPLIANCE
BIODIVERSITY MANAGEMENT
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ENVIRONMENT
BIODIVERSITY MONITORING
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SUSTAINABLE SAFETY SKILLS
New CUSO Volunteer Mr. Marshall Denhoff arrived in Guyana, early September. LTI lecturers practical safety training tour of Aurora Mine site
(TVET), USD $41,000
lecturers to train students
this program with International (Canadian) level Health and Safety Guidelines
Qualifications:
Calgary, Health and Safety Certificate Program RETOOL Commencement
Reinvigorating Training Opportunities and Occupational Learning in Guyana
Investing to change the safety culture throughout Guyana
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BUILDING BUSINESSES
SMSE’s Enhancement Program, IPED Business Training and other similar investments to build our local content involvement.
AGM Inc. small business suppliers
IPED 4 week Training Session with Suppliers
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EMPLOYEE EDUCATION ENGAGEMENT
Adult remedial education program being conducted for employees @ Aurora) Successful completion of Adult remedial education program hosted in Caria Caria for residents Celebrating a participant’s Grade 1 achievement at exams
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ENSURING EQUAL OPPORTUNITY
1st Phase Driving Training in St. Cuthbert’s Mission/Pakuri
engaged communities driving mining trucks @ Aurora
services
Investing to bridge the gender gap
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TECHNOLOGY TRANSFER
new design of prosthetics.
intervention.
Investing in national skill needs
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ATTACHMENTS AND APPRENTICESHIPS
Linden Technical Institute, Guyana Industrial Training Centre etc.
Ministry of Natural Resources Apprenticeship Program University of Guyana Geology Internship Students Students from UG’s SEES program
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Beginning @ home with our employees:
Underground Mining, Milling)
GROWTH OPPORTUNITIES
95% are Guyanese nationals
Overseas training in Columbia for our Aurora Mine staff AGM Inc. staff training done locally
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OP MINING: COST BENEFITS OF RIGID FRAME TRUCKS
Multiple advantages utilizing rigid frame trucks:
availability:
for articulated trucks
Truck Type 40T Rigid Frame 40T Articulated Capacity t (dry) 34 35 OWNERSHIP COST Cost $ 180,000 400,000 Life h 14,000 42,000 Hours/Year h 6,000 6,000 Residual Value % 25% 0% Residual Value $ 45,000 Depreciation $/h 9.64 9.52 Interest/Insurance $/h 1.65 2.74 Ownership Cost $/h 11.29 12.27 OPERATING COST Fuel Use L/h 19 29 Fuel Price $/L 0.80 0.80 Major Repairs $/h 0.00 20.00 Minor Repairs $/h 7.00 15.00 Filters & Lubricants $/h 2.73 8.19 Tires $/h 4.92 10.29 Tray $/h 1.42 1.50 Fuel $/h 15.20 22.80 Operator & Camp Cost $/h 13.85 13.85 Operating Cost $/h 45.12 91.63 OWNERSHIP & OPERATING COST $/h 56.41 103.89
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MINERAL RESERVES
As at December 31, 2017 Category Quantity (kt) Grade (g/t Au) Ounces (k Oz) Proven OP Saprolite 108 0.73 3 OP Rock 4,569 2.75 404 Total Proven 4,677 2.70 406 Probable OP Saprolite 2,291 1.77 130 OP Rock 12,959 2.81 1,172 UG Rock 23,120 3.04 2,262 Total Probable 38,370 2.89 3,565 Total P&P 43,047 2.87 3,971
1. The CIM definitions were followed for mineral reserves. 2. Mineral Reserves are based on a gold price of US$1,200 per ounce, an 8% royalty and an average metallurgical recovery of 96.0% for saprolite and 94.0% for fresh rock material. 3. Open pit saprolite and rock reserves are reported at a cut-off grade of 0.44 g/t Au and 0.42 g/t Au for vein and upper saprolite material respectively. Open pit rock reserves are reported at a cut-off grade of 0.76 g/t Au and 0.64 g/t Au for vein and Rory’s Knoll rock material respectively. 4. Underground fresh rock reserves are reported at a cut-off grade of 1.5 g/t Au. 5. Mineral reserves are contained within mineral resources. 6. All figures have been rounded to reflect the relative accuracy of the estimates. Numbers may not add due to rounding 7. The mineral reserve estimate was prepared by Tysen Hantelmann, P.Eng. and Gord Doerksen, P.Eng of JDS Mining and both are a “qualified person” under National Instrument 43-101.
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MINERAL RESOURCES
As at December 31, 2017 Category Quantity (kt) Grade (g/t Au) Ounces (k Oz) Measured OP Saprolite 108 0.73 3 OP Rock 4,728 2.91 442 Total Measured 4,836 2.86 445 Indicated OP Saprolite 1,404 0.93 42 OP Rock 20,901 2.60 1,747 UG Rock 30,060 3.91 3,780 Total Indicated 52,365 3.31 5,569 Total M + I 57,201 3.27 6,014 Inferred OP Saprolite 1,939 0.91 57 OP Rock 2,581 1.93 161 UG Rock 11,810 4.12 1,560 Total Inferred 16,330 3.39 1,777
1. The CIM definitions were followed for mineral resources. 2. Mineral resources are inclusive of mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic viability. 3. All figures have been rounded to reflect the relative accuracy of the estimates. Number may not add due to rounding. 4. Open pit mineral resources are reported at a cut-off grade of 0.30 g/t for Saprolite and 0.40 g/t for Fresh rock respectively, and underground mineral resources are reported at a cut-off grade of 1.8 g/t. Cut-off grades are based on a price of US$1,300 per ounce of gold and a gold recoveries of 97 percent for saprolite and 94.5 percent for fresh material. 5. Mineral resources have been adjusted using the 2017 EOY topography, to account for open pit mining to date, and include ore stockpile inventories as of EOY 2017. 6. The qualified person is not aware of any mining, metallurgical, infrastructure, permitting, or other factors that could materially affect the mineral resource estimates. 7. The mineral resource estimate for Rory’s Knoll was prepared under the supervision of Tim Maunula, of T. Maunula & Associates Consulting Ltd. Mr. Maunula is a “qualified person” under NI 43-101 and is independent of the Company. The mineral resource estimate for the satellites was prepared under the supervision of Daniel Noone of Guyana Goldfields Inc. Mr. Noone is a “qualified person” under National Instrument 43-101.
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ANNUAL LOM PLAN PRODUCTION PROFILE
Units Total/ Avg 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 OPEN PIT MINING Open Pit Ore ktonnes 19,022 2,579 3,078 1,553 2,317 1,976 1,098 820 684 1,039 1,096 957 822 684 320 Au Grade Mined gpt 2.74 2.62 2.90 2.89 2.80 2.74 3.09 2.61 2.86 2.03 2.93 2.44 1.78 3.99 2.20 Au Mined from Open Pit kounces 1,675 217 287 144 208 174 109 69 63 68 103 75 47 88 23 Open Pit Waste ktonnes 169,376 22,071 22,472 24,067 19,416 8,880 8,465 8,640 8,943 8,705 8,622 8,984 9,577 9,755 779 Open Pit Material Moved ktonnes 188,397 24,650 25,550 25,620 21,733 10,855 9,562 9,460 9,627 9,745 9,717 9,942 10,399 10,439 1,098 Strip Ratio 8.9 8.6 7.3 15.5 8.4 4.5 7.7 10.5 13.1 8.4 7.9 9.4 11.7 14.3 2.4 UNDERGROUND MINING Ore Mined - Rory's Knoll ktonnes 20,537 347 554 1,332 1,506 1,714 1,725 1,714 1,720 1,738 1,707 1,704 1,748 1,677 1,349 Au Grade Mined gpt 2.92 4.76 4.24 3.85 2.93 2.88 3.25 3.43 3.05 2.50 2.38 2.34 2.31 2.69 2.74 Au Mined from Rory's Knoll UG koz 1,925 53 76 165 142 159 180 189 169 140 131 128 130 145 119 Ore Mined - Satellites koz 2,583 140 420 562 285 67 165 181 209 205 205 144 Au Grade Mined gpt 4.06 3.41 4.98 3.66 3.23 2.97 4.72 4.64 3.90 4.07 3.77 4.93 Au Mined from Satellites UG koz 337 15 67 66 30 6 25 27 26 27 25 23 Total Au Mined koz 3,937 217 302 265 350 368 257 227 243 257 272 240 205 242 179 170 142 PROCESSING Tonnes Milled ktonnes 43,047 2,355 2,738 2,745 2,738 2,738 2,738 2,745 2,738 2,738 2,738 2,745 2,738 2,738 2,738 2,745 2,337 Throughput Rate tpd 7,400 6,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 6,400 Mill Feed Average Grade gpt 2.87 2.91 3.12 3.30 3.48 3.70 3.01 2.87 3.12 2.95 3.07 2.70 2.37 2.83 2.14 2.15 2.11 Recovery % 94.8% 92.1% 95.4% 95.6% 95.8% 96.1% 95.2% 95.0% 95.4% 95.1% 95.3% 94.6% 93.9% 94.9% 93.3% 93.3% 93.1% Total Au Recovered kounces 3,767 203 262 278 294 313 252 240 262 247 258 226 196 236 176 177 148
Source: Optimized Life of Mine Plan – Press Release February 20, 2018
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ANNUAL LOM PLAN COST PROFILE
Units Total/ Avg 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 FINANCIALS Revenue $mlns 4,508 243 314 333 352 374 302 288 313 295 309 270 235 283 211 211 177 NSR Royalty (8%) $mlns 361 19 25 27 28 30 24 23 25 24 25 22 19 23 17 17 14 Site Operating Costs $mlns 1,989 92 100 118 141 121 126 129 130 135 137 138 139 146 119 113 108 Sustaining Capital $mlns 295 9 21 34 29 16 14 19 21 16 12 15 17 26 21 16 10 Deferred Stripping $mlns 138 36 28 37 11 5 2 4 6
4 2
$mlns Mill Expansion $mlns 13 13
$mlns 151 19 73 17
21
$mlns 3 3
$mlns 599 79 122 88 41 20 16 22 27 16 32 40 21 28 21 16 10 Total Site Costs $mlns 2,950 190 247 232 210 171 166 174 182 175 193 200 178 196 157 147 132 AISC $mlns 3,002 170 188 229 223 185 180 188 196 188 187 192 191 210 171 160 145 Pre-tax Cash Flow $mlns 1,567 50 61 98 140 204 138 112 128 120 113 70 57 82 60 64 46 NPV (5%) (pre-tax) $mlns 1,142 Tax $mlns 348 1 7 6 24 50 33 30 35 33 32 20 14 23 14 16 11 NPV (5%) (after tax) $mlns 898 Operating Cash Cost¹ $/oz 531 455 385 425 483 389 501 540 498 551 532 614 710 618 679 645 732 Operating Cash Cost (incl Royalty)¹ $/oz 627 551 481 521 579 485 597 636 594 647 628 710 806 714 775 740 828 AISC¹ $/oz 797 836 717 821 761 592 713 783 747 764 723 851 977 886 970 907 985
Source: Optimized Life of Mine Plan – Press Release February 20, 2018
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BOARD & SENIOR OFFICERS
Alan Ferry Director
analyst and a mining corporate finance specialist. Scott A. Caldwell President & CEO and Director
Michael Richings Director
the Chairman of the Board for Vista Gold, where he also served as CEO from 2007 to 2012 Rene Marion Non Executive Chairman, Director
development. Wendy Kei Director
(formerly Harry Winston). Jean-Pierre Chauvin Director
David Beatty Director
Ron Stewart SVP, Technical Services & Corp. Dev
Christopher Stackhouse Interim CFO
and has been instrumental in supporting the growth of the organization and has a deep knowledge of
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Scientific and Technical Information The compilation of the Optimized LOM Plan was completed by Tysen Hantelmann, P.Eng. and Gord Doerksen, P.Eng of JDS Mining. By virtue of their education, membership to a recognized professional association and relevant work experience, Tysen Hantelmann and Gord Doerksen are independent Qualified Persons as defined by National Instrument 43-101 and have reviewed, approved and verified the technical content of this news release. The mineral reserve estimates were prepared under the supervision of Tysen Hantelmann, P.Eng. and Gord Doerksen, P.Eng of JDS
resource estimate for Rory’s Knoll was prepared under the supervision of Tim Maunula, of T. Maunula & Associates Consulting. Mr. Maunula is a “qualified person” under NI 43-101 and is independent of the Company. Ron Stewart, SVP Technical Services & Corporate Development of Guyana Goldfields Inc. is a “qualified person” under National Instrument 43-101 and has also reviewed the contents of this presentation. Securities Laws This presentation does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. This presentation is not an offer to sell, or a solicitation of an offer to purchase, any securities in the United States. The securities referred to in this presentation will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933 and applicable state securities laws. The information contained in this presentation does not and is not intended to constitute a "valuation," "formal valuation," "appraisal," "prior valuation," or a "report, statement or opinion of an expert" for purposes of any securities legislation in Canada or otherwise. Currency Unless otherwise indicated, all dollar values herein are in United States dollars.
SCIENTIFIC, TECHNICAL AND SECURITIES INFORMATION
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Jacqueline Wagenaar VP, IR & Corporate Communications Tel: (416) 628 5936 x.5295 Email: jwagenaar@guygold.com