Hardrock Proj oject Upd pdate Thunder Bay Chamber of Commerce – May 30, 2018
Agenda ▪ Introduction ▪ Hardrock Project Highlights ▪ Environmental Impact Statement/Environmental Assessment Update ▪ Impacts to Local and Regional Economy ▪ Next Steps Forward Looking Information - Information contained in this presentation may be considered to be “forward - looking information” (see slide 22 Forward Looking Information for further details)
Greenstone Gold Mines ▪ Greenstone Gold Mines is a 50/50 partnership between Centerra Gold Inc. and Premier Gold Mines Limited for the joint ownership and development of the Hardrock, Brookbank and Viper Properties. 3 6/5/2018
Greenstone Gold Mines Properties Property Project / Exploration Status Date Hardrock Project Feasibility Study December 2016 Brookbank Property Preliminary Economic Assessment (PEA) March 2014 Key Lake Property Mineral Resource Estimate December 2012 Other Properties Additional good exploration potential (Hardrock Underground, Viper, Brookbank East) Geraldton-Beardmore Greenstone Belt Brookbank Viper Hardrock Claim groups have a cumulative length of more than 105 km’s 4 6/5/2018
Hardrock Project Highlights ▪ Feasibility Study completed November 2016 ▪ 43-101 Technical Report filed December 22, 2016 ▪ www.sedar.com (search Centerra Gold or Premier Gold) ▪ Final EIS/EA submitted July 18 th to MOECC and CEAA ▪ Responding to regulatory, Aboriginal and public comments ▪ Discussion with Aboriginal Communities on Long Term Benefit Agreements – in progress ▪ Project Financing process – in progress 5 6/5/2018
Final Environmental Assessment Update • Final Environmental Assessment / Environmental Impact Statement (“EA/EIS”) submission July 18, 2017 with an expected approval date of Q4 2018 • Public presentations in Greenstone and the region have shown support for the project and the anticipated benefits of economic development • GGM is working with local land users and other community groups to mitigate impacts to their activities First Nations and Metis • Greenstone Gold has been actively consulting with 14 potentially impacted Aboriginal communities • Negotiations are underway with several Aboriginal communities on Long Term Relationship Agreements • Agreement-in-Principle between GGM and Long Lake #58 First Nation 6 6/5/2018
Fe Feasibility Study - Financial Model & Economic Summary Production Summary Cash Flow & Economic Results (M CAD) Total Tonnes (Mt) 691 Gold Revenue 6,796 Waste Tonnes (Mt) 549 Operating Costs (2,950) Strip Ratio 3.9 Initial and sustaining capital (1,514) Other (16) Ore Tonnes (Mt) 142 Gold Grade (g/t Au) 1.02 Taxes (689) Cash Flow 1,636 Contained Gold (kozs) 4,647 NPV 5% 709 Recovered Gold (kozs) 4,193 IRR (%) 14.4% Average Recovery (%) 90.2 7 6/5/2018
HardrockProject – 25 years of work ahead of us Critical milestone to advance project EA Review & Approval Process Engineering & Procurement 24 months Construction 15 years Commissioning Operations Active Closure 8 6/5/2018
HardrockProject – $1.2 .25 billion fo for construction ▪ Process Plant – processing up to 30,000 tonnes of ore per day ▪ Power Generation – to support 65 MW of power ▪ Tailings and Water Management ▪ Support Infrastructure – roads, facilities, warehouses, offices ▪ Relocate Existing Facilities – Hwy 11, Substation, OPP Station ▪ Purchase Mining Equipment ▪ Hire the Operations Team 9 6/5/2018
HardrockProject - How do we compare? CN Tower Hardrock Construction Time 40 24 (months) Peak Construction 1500 950 Workforce Concrete 40,500 35,000 (m 3 ) Steel 5,100 6,500 (metric tonnes) 10 6/5/2018
Project Construction ▪ Construction will be performed by various sub-contractors ▪ Local suppliers/contractors used wherever possible based on quality, schedule, cost-effectiveness, and proximity to site ▪ Temporary construction camp will house construction workers on a rotation ▪ Construction is 7 day 10-hour schedule 11 6/5/2018
Hardrock Project Procurement Process ▪ Four primary types of purchases/contracts ▪ Construction Contracts (earthworks, civil, mechanical, electrical, etc.) ▪ Engineered Equipment (process equipment, mine fleet, conveyor, etc.) ▪ Bulk Materials (concrete, steel, pipe, etc.) ▪ Site Services ( site maintenance, site surveying, etc) ▪ Contractor and supplier pre-qualification process will be initiated once the project is approved to proceed to the engineering and procurement phase ▪ Decision expected in Q4 2018 ▪ Proposal will be assessed and awarded based on number of factors, including: Safety record and approach Aboriginal participation • • • Schedule • Personnel Cost effectiveness Proximity to site • • • Quality management • Reputation/references
Mine Schedule (Mining Phases) ▪ Main pit is mined through 3 phases to feed the mill with the available Borrow pit depth = 120m highest grade ore in early years (low grade is stockpiled) and to balance the stripping ratios ▪ The Borrow pit is mined within phase 1 for construction purposes. Phase 1 depth = 280m Phase 2 depth = 370m Phase 3 depth = 570m 13 6/5/2018
HardrockMine – Operations Peak Workforce is ~ 500 employees (average is 450) Mine Operations Process Plant & General & Power Plant Administration ~ 400 employees ~ 100 employees ~ 50 employees • Environmental • Mine Operations • Plant Operations • Human Resources • Maintenance • Maintenance • Accounting • Geology • Technical Services • Site Services • Engineering • Health & Safety • Supply Chain • IT 14 6/5/2018
Impacts to local and regional economy - Labour Labour Type Example Direct Labour Direct employment • Indirect Labour Businesses that provide services to Hardrock • Induced Labour Businesses that provide services to employees • (shops, restaurants, barbers, hotels, etc) ▪ Approximately 800 person years of indirect and induced labour will be generated during the construction phase for the local area and 1,300 additional person years for the regional area (Thunder Bay) ▪ During operations, indirect and induced labour will result in an estimated 500 person years of indirect and induced employment in the local area ▪ Hiring of local workers can reduce the local (Greenstone) unemployment rate by more than 6% (from ~ 16% to ~10%) 15 6/5/2018
Impacts to local and regional economy - Spending ▪ Project spending will benefit the local economy by ~$500 million, with an estimated additional $1.9 billion spend in the regional area ▪ The Project will directly and indirectly create $242 million in revenues for the Ontario government over the life of mine 16 6/5/2018
On On-site work underway Reverse Circulation Drilling Program ▪ Next step in developing the Project and will be used to support GGM’s model of available resources in the early stages of the Project 17 6/5/2018
18 6/5/2018
Next Steps ▪ Obtain Board approval to proceed to the detailed engineering and procurement phases ▪ Secure Project financing ▪ Obtain EIS/EA approvals from CEAA and MOECC – Target Q4 2018 ▪ Advance construction permitting activities GGM looks forward to advancing the Hardrock Project and re-establishing the Geraldton-Beardmore Gold Camp that will generate benefits for the local communities and stakeholders. 19 6/5/2018
Upcoming Event… 20 6/5/2018
Your comments and 404 Main St. | Suite D questions are P.O. Box 1521 Geraldton, Ontario imp mportant to us. Visit, P0T 1M0 Tel: 807-854-1886 wri write or call our Email: cr@ggmines.com Ge Geraldton offi fice at: www.greenstonegoldmines.com
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