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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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
TSX-V: GWA Investor Presentation March 2019 Unlocking Opportunity in the Legendary Gold Camp
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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
(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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LARGE LAND POSITION:
SITUATED IN WORLD CLASS GOLD CAMP
BRADSHAW DEPOSIT:
BECOMING THE NEXT GOLD PRODUCER IN TIMMINS
NEAR-MINE EXPLORATION:
TARGETS IN STRIKING DISTANCE FROM MINE
VISION FOR FUTURE:
ENOUGH GROUND TO HOST MULTIPLE MINES
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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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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
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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
Stantec, filed June 9, 2015.
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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
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
at $0.80 exchange rate
KEY IMPROVEMENTS REALIZED
nearby drill holes
Bradshaw grade up to 10 g/t gold
Unlocking Opportunity in the Legendary Timmins Gold Camp
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
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Post Sorting
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UNDERGROUND DEVELOPMENT:
for the future operating mine)
excellent continuity in the mineralization
for sorting, milling and sale as concentrate
underground construction PREPARING FOR PRODUCTION: ENHANCING OUR ASSET:
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discharge is environmentally compliant
for trucking to QMX for toll-milling
and waste areas
potential
Humon Smelting of China
Unlocking Opportunity in the Legendary Timmins Gold Camp
UNDERGROUND DEVELOPMENT:
PREPARING FOR PRODUCTION:
ENHANCING OUR ASSET:
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g/t gold in a new zone outside the resource
main deposit
program to gather as much information on the deposit as possible:
team’s detailed knowledge of the mineralized structures.
enhances grade control
significant additional material to the resources
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UNDERGROUND DEVELOPMENT: PREPARING FOR PRODUCTION:
ENHANCING OUR ASSET:
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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
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Unlocking Opportunity in the Legendary Timmins Gold Camp
Smelting of China finalized February 2018
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
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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
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May 2017
Commenced site construction
December 2016
Pandion Financing for mine development Began negotiating IBAs with First Nations communities (expected completion: 2019)
2020
grade gold zones
for sale of gold concentrate
February 2018 2020
Bradshaw
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PHASE 3: BLUE SKY EXPLORATION
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SITUATED IN WORLD CLASS GOLD CAMP BECOMING THE NEXT GOLD PRODUCER IN TIMMINS
TARGETS IN STRIKING DISTANCE FROM MINE ENOUGH GROUND TO HOST MULTIPLE MINES
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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
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
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.
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Garth Wilcox
Development Manager Professional engineer with over 17 years of mining experience, most recently with Castle
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
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
Gold and Teck Resources.
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Unlocking Opportunity in the Legendary Timmins Gold Camp
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
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
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
Association of Professional Geoscientists
Fleming Huang
in financial management in the mining and
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
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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”)
4.82 grams per tonne (“g/t”) Au Development Rock Mined (additional mineralized rock) 666,253 t
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%
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
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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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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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