Golden Meadows Project Idaho, USA Photo courtesy of the Idaho Historical Society Ref# 80-57-11 Jan. 17, 2013 Stibnite – looking into the pit (1940s)
GOLDEN MEADOWS All of the pieces for a world class gold-antimony project Multi-million ounce Gold Resource Past Low Geopolitical High Production Producing Risk Large Scale Grade Proven Brownfields Production Metallurgy Site Exploration 14 Year 100% Owned Superior Upside Strategic Mine Life & Returns By-products Royalty Free Robust Lowest Upside PEA Quartile Opportunities Costs 2
MULTI-MILLION OUNCE RESOURCE Large, high grade open pit resources with room to grow Golden Meadows 50km of new drilling to be incorporated into Inferred new resource estimate Indicated 2.90 Moz 4.20 Moz by end of Q1/13 1.65 g/t Hangar Flats Yellow Pine Inferred West End Indicated 0.39 Moz 0.93 Moz Inferred Indicated 1.61 g/t 1.90 Moz 1.80 Moz Inferred Indicated 0.61 Moz 1.50 Moz 1.95 g/t * See NI43-101 slide at the back of this presentation for responsibility and disclaimers. Mineral Resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss 1.44 g/t and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. 3 kilometres 3
HIGH GRADE Golden Meadows has above average grade for open pit deposits Grade (g/t Au) 3.0 2.4 2.3 Golden Meadows average grade 1.65 g/t 1.95 2.0 1.8 1.61 1.44 1.0 1.0 1.0 0.9 0.9 0.9 0.8 0.8 1.0 0.7 0.7 0.5 0.5 0.5 0.5 0.5 0.4 0.4 0.4 0.3 0.3 - Source: RBC Compilation from Metals Economics Group & public disclosure 4
LOW GEOPOLITICAL RISK Golden Meadows located in low risk, mining friendly Idaho Lucky Friday Mine Hecla Mining Company Ag-Pb-Zn Coeur d’Alene Sunshine Mine Sunshine Silver Mines Ag Golden Meadows Project Midas Gold Au-Sb Idaho Cobalt Project Formation Metals Co-Cu Thompson Creek Mine Cascade Thompson Creek Mining Mo Maplecroft identifies and monitors the key issues affecting the investment climates of 197 countries. The Atlas analyses yearly trends relating to dynamic risks, which reflect change over a short period of time, including governance, political violence, the BOISE Phosphate District macroeconomic environment, and included this year for the first Agrium, Monsanto, time, resource nationalism. It also includes structural risks which Simplot, Stonegate reflect change over a longer timeframe, including economic IDAHO diversification, resource security, infrastructure quality, the resilience of society to challenges, and the risk of complicity in human rights violations committed by regimes and business partners. 5
PAST PRODUCING BROWNFIELDS SITE Redevelopment of an area actively mined 1928-97 with concurrent reclamation Project area has extensive history of mining • Brownfields site, heavily disturbed • Good access with local infrastructure and workforce 6
PRODUCTION SCALE Potential for large scale, low cost gold-antimony mine $1,000 PEA PFS Mt Henry FS $900 Size of globe = initial CAPEX Yellowknife Net Cash Costs (1) (US$/oz of gold) North Bullfrom Courageous Lake $800 Almas Detour Goliath $700 Bombore Esaase Miraflores Kiaka Obaton New Liberty Volcan Livengood Goldfield Eagle Gold Caspiche $600 Rainy River Sugar Pantanillo Black River Toroparu Coringa Otijikoto Aurora Curraghinalt Blackwater Karma $500 Angostura Amulsar Ollachea GOLDEN MEADOWS Magino LOM Morelos $400 Upper Beaver Haile Metates GOLDEN MEADOWS Yr 1-8 $300 Brucejack $200 0 100 200 300 400 500 600 700 800 Annual Production (000s oz of gold) 7 (1) See non-IFRS measures below. Sources: Haywood Securities & Company Disclosure
PRODUCTION PROVEN METALLURGY Proven through past production and extensive test work Ball Gyratory SAG Sulphides at Golden Meadows Mill Crusher Mill have extensive history of: High Sb • High recoveries +/- 90% Sulphides • Successful milling operations Oxides Antimony Antimony Sulphides (1920s through 1950s) Flotation Concentrate • Test work by Midas Gold & prior operators (e.g. Barrick, Hecla, Gold Bradley) Flotation Concentrate only autoclave • Treat just ~10% of mill feed Pressure • Lower CAPEX and OPEX Oxidation • Examples: OceanaGold’s Macraes Mine (NZ), Agnico- Gold CIL Gold Eagle’s Kittila Mine (FIN) & EW Doré Tailings 8
STRATEGIC BY-PRODUCTS Potentially significant by-product credits Antimony Uses (USGS) Supply Risk - China dominates world Other uses antimony 20% Flame • There is no US domestic antimony mine Batteries & Retardants alloys production 60% 20% • The US is reliant on China for majority of the antimony it consumes • Chinese supply is falling • Export restrictions since 2009 World Antimony Production 2011 (USGS) Potential for new U.S. legislation aimed at Bolivia Russia expediting permitting for strategic metals 3% 2% South Africa 2% Tajikistan $8 1% China Antimony ($US/lb) Other 89% $6 Countries 3% $4 $2 2006 2007 2008 2009 2010 2011 2012 $0 9
100% OWNED & ROYALTY FREE First time in ~100 years the district is owned by one party Historically this district suffered from fragmented ownership and high royalties • Prevented efficient exploration and evaluation of true potential Land package a mix of patented (privately held) and unpatented ground 10
ROBUST PRELIMINARY ECONOMIC ASSESSMENT (1) Large scale, low cost, open pit operation Years 1-8 Life-Of-Mine (14.2 years) Base Case Annual Annual Total Total (At $1,400/oz gold) Average Average Gold (oz) 390,000 3,121,000 348,000 4,922,000 Antimony (M lbs) 9.9 79.3 6.4 90.6 Cash Costs (US$/oz) (2) 331 425 (net of by-products) Initial Capital (US$M) 879 Pre-tax NPV 5% (US$M) 2,136 After-tax NPV 5% (US$M) 1,482 IRR (Pre-tax/After-tax) 34%/27% After-tax Payback (years) 3.0 (1) The economic assessment in the PEA is preliminary in nature and uses inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that this PEA will be realized. The inferred mineral resource used in the economic analysis represents 37% of the total life-tonnes considered. (2) See non-IFRS measures below 11 In this presentation, “M” = million, “K” = thousands, all amounts in US$
ROBUST PRELIMINARY ECONOMIC ASSESSMENT NPV levered to higher gold price 6,000 Pre-tax NPV After-tax NPV 5,000 0% Base Case NPV (US$ millions) Discount Rate 4,000 3,000 5% 2,000 10% 1,000 0 1,200 1,400 1,600 1,800 Gold Price ($/oz) 12
SUPERIOR RETURNS NPV vs. life of mine gold production 2011-12 Studies for Gold Projects (2) 3,500 PEA PFS 3,000 FS Post-Tax NPV @ US$1,400/oz Gold (US$ millions) 1 Caspiche Size of globe proportionate to initial CAPEX 2,500 Livengood 2,000 Brucejack Golden Meadows Blackwater 1,500 Morelos Magino Volcan 1,000 Back River Toroparu Rainy River Curraghinalt Aurora 500 Kiaka Bombore Courageous Lake 0 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Life of Mine Gold Production (000s of oz) 13 1 Where NPV was not available at US$1,400/oz, it was extrapolated from available data 2 Source: Haywood Securities and company disclosure
LOWEST QUARTILE COSTS Golden Meadows is projected to be in the lowest quartile of industry cash costs (3) $1,000 PEA PFS Mt Henry FS $900 Size of globe proportionate Yellowknife to initial CAPEX Net Cash Costs (1) (US$/oz of gold) North Bullfrom Courageous Lake $800 Almas Detour Goliath $700 Bombore Esaase Miraflores Kiaka Obaton New Liberty Volcan Livengood Goldfield Eagle Gold Caspiche $600 Rainy River Sugar Pantanillo Toroparu Black River Coringa Otijikoto Aurora Curraghinalt Blackwater Karma $500 Angostura Ollachea Amulsar GOLDEN MEADOWS Magino LOM Morelos $400 Upper Beaver Haile Metates GOLDEN MEADOWS Yr 1-8 $300 Brucejack $200 0 100 200 300 400 500 600 700 800 Annual Production (000s oz of gold) 14 (1) See non-IFRS measures below. Sources: Haywood Securities & Company Disclosure
OPTIMIZATION OPPORTUNITIES Three key opportunities to enhance already robust cash flow Antimony by-product credit calculated on approx. 17% of Undiscounted Cash Flow total resource substantially increases cash flow in 400 Years 1 through 4 300 1) Upsize the plant modestly 200 2) Extend antimony credit for 100 longer 0 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 3) Extend higher grade for longer -100 Project year -200 Average $305 million in after tax -300 cash flow per year in first 8 years -400 -500 Au Sb Construction 15
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