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Becoming the Newest Gold Producer in Timmins Unlocking Opportunity - - PowerPoint PPT Presentation

Becoming the Newest Gold Producer in Timmins Unlocking Opportunity in the Legendary Gold Camp TSX-V: GWA Investor Presentation March 2019 TSX-V: GWA Investor Presentation March 2019 DISCLAIMERS This document (including any documents


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Becoming the Newest Gold Producer in Timmins

TSX-V: GWA Investor Presentation March 2019 Unlocking Opportunity in the Legendary Gold Camp

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TSX-V: GWA • Investor Presentation March 2019

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DISCLAIMERS

This document (including any documents incorporated by reference herein) contains “forward-looking statements’ within the meaning of applicable Canadian securities laws. These statements relate to future events or Gowest’s future performance. All statements other than statements of historical fact are forward-looking statements. Such forward-looking statements may include, but are not limited to, statements with respect to: (i) the future financial or

  • perating performance of Gowest and its projects; (ii) the future price of gold or other metal prices; (iii) the estimation of mineral resources; (iv) proposed capital expenditures; (v) proposed operating and exploration expenditures;

(vi) the costs and timing of future exploration and mine development activities; (vii) the success of exploration activities; (viii) permitting timelines and requirements; (ix) Gowest’s requirements for additional capital, (x) government regulation of mining operations; (xi) environmental risks; and (xii) title disputes or claims. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations of such words and phrases (including negative variations), or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Gowest to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: A number of factors could cause actual actions, events or results to differ materially from those described in forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Gowest disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. The technical information in this corporate presentation has been reviewed and approved by Jeremy Niemi, Director of Exploration, a QP as defined by National Instrument 43-101. The industry data, technical information or other information prepared by third parties presented in this presentation, except where otherwise noted, has been compiled from industry sources and participants which, although not independently verified by the Company, are considered by the Company to be reliable sources of information. References in this presentation to reports or articles should not be construed as depicting the complete findings of the entire referenced report or article and such report or article is expressly not incorporated by reference into this presentation. The Company makes no representation or warranty as to the accuracy or completeness of any data or information prepared by third parties included in this presentation and the Company assumes no liability whatsoever relating to or resulting from such data or information or the use thereof, errors therein or omissions therefrom.

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Unlocking Opportunity in the Legendary Timmins Gold Camp

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ONE FOCUS: GOLD

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LARGE LAND POSITION:

SITUATED IN WORLD CLASS GOLD CAMP

  • 109 km2 North Timmins Gold Project situated along underexplored mineral belt
  • Robust local presence with strong community and First Nations relationships

BRADSHAW DEPOSIT:

BECOMING THE NEXT GOLD PRODUCER IN TIMMINS

  • Gold mineralization at depth with potential to double based on regional deposits
  • Fully permitted underground bulk sample program
  • Highly de-risked, advanced construction project
  • Commercial production by 2019, with 50,000 oz/per year at peak production
  • Leveraging technology to optimize production

NEAR-MINE EXPLORATION:

TARGETS IN STRIKING DISTANCE FROM MINE

  • Three strong gold mineralization zones showing earmarks of deposit
  • Two mineralization zones less than 1km from Bradshaw Deposit

VISION FOR FUTURE:

ENOUGH GROUND TO HOST MULTIPLE MINES

  • Significant exploration potential along new mineral belt larger than historic gold belt
  • Centralized autoclave facility for Northeastern Ontario and Northwestern Quebec
  • M&A platform for further growth

Unlocking Opportunity in the Legendary Timmins Gold Camp

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50,000 oz/year

BRADSHAW DEPOSIT

100,000 oz/year

NEAR-BRADSHAW EXPLORATION ZONES

Significant growth potential

GREENFIELD EXPLORATION

Unlocking Opportunity in the Legendary Timmins Gold Camp

HUMON SMELTER ORE SORTER TECHNOLOGY TOLL-MILLING (Aurbel) ORE SORTER TECHNOLOGY LOCAL MILLING LOCAL PROCESSING

PHASE 1 PHASE 2 PHASE 3

APPROACH TO GROWTH: OPTIMIZING THE NORTH TIMMINS GOLD PROJECT

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TSX-V: GWA • Investor Presentation March 2019

6 6 Timmins West

Tahoe Resources

Dome

Goldcorp

Hollinger Mine McIntyre Broulan Reef Hallnor Pamour

Goldcorp

Bell Creek

Tahoe Resources

Hoyle Pond

Goldcorp

Clavos

Sage Gold

Kidd Creek

Glencore Inc.

Century Project

Goldcorp

Unlocking Opportunity in the Legendary Timmins Gold Camp

Gold Project Base Metal Mine Gold Mine Whitney Project

Gowest

Bradshaw Gold Deposit

GOWEST NORTH TIMMINS GOLD PROJECT

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BRADSHAW DEPOSIT1 TONNES GRADE (G/T) OUNCES

Probable Reserve2,3 1,800,000 4.824 277,000 Indicated Resource3 2,120,000 6.19 422,000 Inferred Resource3 3,620,000 6.47 755,000

Unlocking Opportunity in the Legendary Timmins Gold Camp

  • 1 Mineral envelope is 900m strike length & 800m depth, 55% of total area of mineralization
  • 2 Mineral Resources inclusive of Mineral Reserves. Full details contained in NI 43-101 Pre-Feasibility Study report conducted by

Stantec, filed June 9, 2015.

  • 3 Cut-off grade of 3.0 g/t Au at US$1,200/oz. Au and at an $0.80 exchange rate.
  • 4 Fully diluted

PHASE 1: BRADSHAW DEPOSIT

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PRE- FEASIBILITY STUDY1 - $US 1,200 oz Au NPV (5%)2 US$39.8 million Initial Capital US$21.5 million Sustaining Capital US$21.4 million

  • Avg. Gold Production3

40,500 oz / year Life of Mine Operating Cost US$821/oz All-In Sustaining Cost4 US$891/oz IRR 27% Life of Mine5 8.5 years

  • 1 The NI 43-101 PFS, released June 9, 2015, was conducted by Stantec Mining. The model is based on 100% equity financing after tax, Gold price of $US 1,200 oz.

at $0.80 exchange rate

  • 2 NPV (5%) is Pre-Tax and increases/decreases approximately US$7.5 million for every US$50/oz. increase/decrease in gold price
  • 3 Includes bulk sample & pre-production
  • 4 All-in Sustaining Costs are inclusive of LOM Operating Costs and Mine Sustaining Capital Cost as described in the Capital and operating costs
  • 5 Estimated 8.5 year mine life that includes 1.5 years of pre-production and 7 years of full production

KEY IMPROVEMENTS REALIZED

  • Extended strike to 1.3km and depth to +1km
  • Intercepted additional gold adjacent to Bradshaw
  • Remains open laterally and at depth
  • Strong gold mineralization intercepted in several

nearby drill holes

  • Located outside current resource estimate area
  • Proven ore sorting technology that doubles

Bradshaw grade up to 10 g/t gold

Unlocking Opportunity in the Legendary Timmins Gold Camp

BRADSHAW DEPOSIT: ECONOMICS

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BRADSHAW SITE

Water Treatment Ponds Site Offices Stock Piles Outcrop Maintenance Shop Ore Sorter Building Dry & Change Rooms Water Treatment Plant Portal Entrance

15 kms to Hwy 655

Whidden Road

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62 yrs 77 yrs 106 yrs 73 yrs 31 yrs 7 yrs 14 yrs

Ounces Produced Current Resources (all categories) Mine Development Resources Exploration

19.4M oz

Hollinger Mine

10.8M oz

Mcintyre

16.6M oz

Dome

5.4M oz Pamour 3.6M oz

Hoyle Pond

0.7M oz

Timmins West

0.3M oz

Bell Creek

1.2M oz

Bradshaw

Unlocking Opportunity in the Legendary Timmins Gold Camp

Post Sorting

TIMMINS CAMP MAJOR GOLD DEPOSITS

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BULK SAMPLE PROGRAM: MOVING BRADSHAW TOWARD PRODUCTION

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Unlocking Opportunity in the Legendary Timmins Gold Camp

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UNDERGROUND DEVELOPMENT:

  • Completed over 2,098 metres of underground development
  • Incl. commissioning a main ramp and portal (sufficient size

for the future operating mine)

  • Developed three levels at 30, 45 and 60 metre level
  • Initiated silling and ready to develop stopes
  • The development follows the gold structures and shows

excellent continuity in the mineralization

  • Confirmed and enhanced our geological model
  • Able to see continuity of mineralized structures
  • 28,567 tonnes of development material stockpiled on surface

for sorting, milling and sale as concentrate

  • No injuries at the project to date for mine site surface and

underground construction PREPARING FOR PRODUCTION: ENHANCING OUR ASSET:

Unlocking Opportunity in the Legendary Timmins Gold Camp

A YEAR OF DE-RISKING & ENHANCING THE PROJECT

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  • Water treatment plant was made fully operational and the

discharge is environmentally compliant

  • Ore-sorter (X-ray):
  • Completely enclosed in dome building facility
  • Commissioned and proven; performing as expected
  • Producing gold bearing material grading 6 g/t to 10 g/t

for trucking to QMX for toll-milling

  • Milling and flotation test showed 97% recoveries
  • Optimising processing cost in flotation circuit
  • Demonstrated stable and competent ground conditions in ore

and waste areas

  • Revised geological model sharply expanded mineralized area

potential

  • Agreement to process concentrate in place with Shandong

Humon Smelting of China

  • Signed toll-milling agreement with QMX

Unlocking Opportunity in the Legendary Timmins Gold Camp

UNDERGROUND DEVELOPMENT:

PREPARING FOR PRODUCTION:

ENHANCING OUR ASSET:

A YEAR OF DE-RISKING & ENHANCING THE PROJECT

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  • Intersected highest gold values to date at the project at 155

g/t gold in a new zone outside the resource

  • Identified 20 new gold zones in bulk sample area
  • Identified two new high-grade gold zones north and west of

main deposit

  • Completed 30-hole, 3,871 metre underground infill drilling

program to gather as much information on the deposit as possible:

  • Tightened the drill spacing and increased the technical

team’s detailed knowledge of the mineralized structures.

  • Refined the deposit geometry – defining stope limits and

enhances grade control

  • As expected, all holes intersected gold mineralization
  • Drilling clearly demonstrated the potential to add

significant additional material to the resources

Unlocking Opportunity in the Legendary Timmins Gold Camp

UNDERGROUND DEVELOPMENT: PREPARING FOR PRODUCTION:

ENHANCING OUR ASSET:

A YEAR OF DE-RISKING & ENHANCING THE PROJECT

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REDUCES COSTS INCREASES HEAD GRADE*

4.82 g/t Au Up to 10 g/t Au

Pre-ore sorting Post-ore sorting

Unlocking Opportunity in the Legendary Timmins Gold Camp

* Based on full-scale production test

PROVEN ORE SORTING TECHNOLOGY

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Unlocking Opportunity in the Legendary Timmins Gold Camp

HUMON SMELTING

  • Concentrate sale agreement with Shandong Humon

Smelting of China finalized February 2018

  • Humon, publically-listed on the Shenzhen Stock Exchange,

works with some of the world’s largest mining companies

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Unlocking Opportunity in the Legendary Timmins Gold Camp

Gold Bearing Material is Mined & Stockpiled Stockpiled Material is Crushed at Site Crushed Material is Sorted at Bradshaw Sorted Gold Ore is Trucked to Aurbel Mill Aurbel Mill Produces High Grade Gold Concentrate Concentrate is Shipped to China Humon Smelter Extracts Gold from the Concentrate Gold

PROCESSING BRADSHAW GOLD DEPOSIT

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BRADSHAW TIMELINE

Acquisition of complete 110 km2 land package = North Timmins Gold Project

2009 - 2016

PEA: Bradshaw gold deposit defined

2011

Exploration, permitting and economic study

2012 – 2015

Published Pre- Feasibility study

2015

Exploration Agreement with Taykwa Tagamou Nation, Mattagami First Nation, Matachewan First Nation

2011

Received Permits for Bulk Sample / advanced underground exploration

2016

Purchased x-ray ore sorting technology

Feb 2017

Commenced ramp development

January 2017 Fall 2017

Convert Sheridan + Dowe zones to resource status

Commercial production at Bradshaw

2019

Unlocking Opportunity in the Legendary Timmins Gold Camp

May 2017

Commenced site construction

December 2016

Pandion Financing for mine development Began negotiating IBAs with First Nations communities (expected completion: 2019)

2020

  • Identified two high-

grade gold zones

  • Executed agreement

for sale of gold concentrate

February 2018 2020

  • Mining permit for

Bradshaw

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Unlocking Opportunity in the Legendary Timmins Gold Camp

PHASE 2 : NEAR MINE EXPLORATION

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Unlocking Opportunity in the Legendary Timmins Gold Camp

PHASE 3: BLUE SKY EXPLORATION

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SITUATED IN WORLD CLASS GOLD CAMP BECOMING THE NEXT GOLD PRODUCER IN TIMMINS

NEAR-MINE EXPLORATION: VISION FOR THE FUTURE:

TARGETS IN STRIKING DISTANCE FROM MINE ENOUGH GROUND TO HOST MULTIPLE MINES

BRADSHAW DEPOSIT: LARGE LAND POSITION:

Unlocking Opportunity in the Legendary Timmins Gold Camp

INVESTMENT RECAP

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Unlocking Opportunity in the Legendary Timmins Gold Camp

Greg Romain

CEO, President & Director Involved in the mining and mineral processing industry for

  • ver 30 years. Has guided

Gowest from purely exploration to development and mining with producing assets. Proven business track record in mine supply manufacturing and capital markets.

Janet O’Donnell

CFO & Corporate Secretary Career accounting professional with over 30 years experience. Former CFO at Castle Gold, Highvista Gold and Canuc Resources.

Mike Mascioli

Director, Mining & Projects Mining engineer born and raised in

  • Timmins. More than 30 years

experience mining in northern Ontario including senior positions in safety, operations and projects with Inco/Vale.

Jeremy Niemi

Director, Exploration Geologist with over 20 years experience in the mining/resource industry. Currently VP Exploration at Aurelius Minerals. Formerly VP , Exporation at Gold Quest; VP , Geology at Noront Resources; and, Manager, Technical Services for Kinross Gold Corporation.

MANAGEMENT

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Garth Wilcox

Development Manager Professional engineer with over 17 years of mining experience, most recently with Castle

  • Gold. Extensive project development

experience (gold, nickel, molybdenum, copper, zinc) as a process engineer with AMEC and Aker Kvaerner/Davy.

Greg Hart

Mine Manager 38 years of direct experience leading mining and construction activities. Held several senior

  • perational positions at Goldcorp’s Porcupine

Gold Mine in Timmins, including Underground Manager and Manager of Operations. Previously VP , Operations with Dumas Contracting.

Rochelle Collins

Chief Geologist Professional geologist with over 20 years progressive experience in surface and underground mining operations. Formerly Chief Mine and Resource Geologist at Tahoe

  • Resources. Other senior positions with Aurico

Gold and Teck Resources.

Unlocking Opportunity in the Legendary Timmins Gold Camp

TECHNICAL TEAM

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Unlocking Opportunity in the Legendary Timmins Gold Camp

BOARD OF DIRECTORS

  • C. Fraser Elliott

Executive Chairman

President of CFE Financial Inc., a private investment banking company. Formerly Chief Financial Officer of Tangerine Payment Solutions Corp. listed on the TSX Venture successfully sold in March 2009.

John Frostiak

Chair of Compensation Committee

Professional engineer, member of the Canadian Institute of Mining Metallurgy and Petroleum and of the Society for Mining

  • Engineers. Currently Chairman of Colossus

Minerals Inc. Previously spent 17 years in project management at Barrick Gold Corp.

Peter Quintiliani

CPA, CA, Chair of Audit Committee

Chartered Accountant with over 35 years

  • f experience in corporate finance.

Formerly CFO and Executive Vice President Corporate Strategy and Development of the Katz Group Pharmacies Inc.

Meirong Yuan

Director

Former Chief Financial Officer of Wonder Auto Technology Inc. and current Vice President of Fortune Futures Holding Limited with more than 22 years of experience in corporate finance.

Yungang Wu

Chair of Technical Committee

Professional geologist with 25 years of experience in international mineral exploration, resource estimating and

  • mining. He is a member of the

Association of Professional Geoscientists

  • f Ontario.

Fleming Huang

  • Mr. Huang has over 15 years of experience

in financial management in the mining and

  • ther industries. He holds a Bachelor

Degree in Economics and is a Certified Management Accountant

Director

Greg Romain

CEO, President & Director

Larry Phillips

Chair of Governance Committee

Co-founder, former Executive Vice President, Corporate Affairs and Director of IAMGOLD Corporation.

Involved in the mining and mineral processing industry for over 30 years. Has guided Gowest from purely exploration to development and mining with producing assets. Proven business track record in mine supply manufacturing and capital markets.

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SHARE STRUCTURE

Shares Outstanding 388.5 million Warrants (avg. price $0.25) 37.1 million Options 10.1 million Shares Fully Diluted 435.7 million

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TRADING SUMMARY 52 Week Range: Recent share price: Market Cap: KEY SHAREHOLDERS Fortune Future 22% Management 12% TSX-V:GWA $0.025 / $0.14 $0.03 $13.6 million

Unlocking Opportunity in the Legendary Timmins Gold Camp

1 year

CAPITAL

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Unlocking Opportunity in the Legendary Timmins Gold Camp

APPENDIX

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Unlocking Opportunity in the Legendary Timmins Gold Camp

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Unlocking Opportunity in the Legendary Timmins Gold Camp

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Unlocking Opportunity in the Legendary Timmins Gold Camp

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PFS HIGHLIGHTS

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Unlocking Opportunity in the Legendary Timmins Gold Camp

GOLD PRICE $1,200/OZ. Exchange Rate CAD $1.00 = US$0.80 Pre-tax Net Present Value (“NPV”) (5%) $39.8 million Pre-tax Internal Rate of Return (“IRR”) 32% After-tax NPV (5%): $29.2 million After-tax IRR 27% Initial Capital $21.5 million Sustaining Capital $21.4 million Pre-tax Payback Period 3.5 years Life of Mine (“LOM”) Operating Cost $821/ounce (“oz”) gold (“Au”) All-in Sustaining Cost1 $891/oz Ore Mined 1,787,295 tonnes (“t”)

  • Avg. Mineable Ore grade

4.82 grams per tonne (“g/t”) Au Development Rock Mined (additional mineralized rock) 666,253 t

  • Avg. Development Rock grade

1.31 g/t Au Initial LOM (includes bulk sample)2 8.5 years Total Gold (extracted in initial phase)3 305,058 oz Total Gold Recovery 93%

  • Avg. Annual Recovered Au Production4

40,500 oz. Gross Revenue to Operation $341 million

(100% EQUITY, ALL FIGURES IN USD):

1 All-in Sustaining costs are inclusive of LOM Operating Costs

and Mine Sustaining Capital Cost

2 Initial LOM includes 1.5 years of pre-production and 7 years

  • f full production.

3 Total gold ounces is mineral reserve ounces plus development

rock ounces.z

4 Includes bulk sample and pre-production years

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CAPITAL & OPERATING COST HIGHLIGHTS:

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Unlocking Opportunity in the Legendary Timmins Gold Camp

CAPITAL COSTS (MILLIONS USD) Initial Capital: Site Surface Development 10.5 Underground (“UG”) Development (“Dev”) 10.7 Closure Cost 0.3 Total Initial Capital 21.5 Mine Sustaining Capital Cost (UG Ramp Dev) 21.4 LOM Capital Costs 42.9 OPERATING COSTS (MILLIONS USD) Mining: Operating Costs 47.8 Level Development Costs Owners Costs Indirect 45.4 25.0 41.0 Total Mining 159.2 Toll Milling 39.9 Refining 34.1 Royalties 2.8 LOM Operating Costs 236.0

Capital Costs are broken down into two parts. The first includes the capital (“Initial Capital”) required to bring the deposit into production and start generating cash flow. If the mine should proceed to production, there is a sustaining capital cost (“Mine Sustaining Capital Cost”) to develop the main ramp deeper into the mine over the LOM to complete the access to the reserve. The costs are based on the construction of a greenfield mine site, contract mining and crushing, and the use of third party existing facilities for milling and refining.

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CONTACT US

Website: http://www.gowestgold.com/ https://www.facebook.com/GowestGold/ https://twitter.com/GowestGold https://www.linkedin.com/company/1673725/ info@gowestgold.com Address: 1400-80 Richmond Street West Toronto, ON M5H 2A4 Phone: 416-363-1210

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Unlocking Opportunity in the Legendary Timmins Gold Camp