Investor Presentation January 2014 M I N E R A G O L D L I M I T - - PowerPoint PPT Presentation

1 M I N E R A G O L D L I M I T E D

Investor Presentation January 2014

Drilling at Torrecillas – July 2011

2 M I N E R A G O L D L I M I T E D

Company Overview

• ASX Listed Gold Mining and Exploration

Company

• Gold Production, Feasibility and Exploration

in southern Peru via +16,000Ha of under- explored concessions

• Focused on achieving a run rate of 18koz

per annum by end of 2014 from existing known deposits

• Cost cutting plans being implemented to

reduce cash cost to ~$700/oz

• Recent discovery of two large tonnage low

grade disseminated targets in Peru could materially change Minera Gold (+ 2.9M oz potential as an exploration target*)

• Exposure retained to Engenho Open Pit

Gold Targets in Brazil via new JV

*The term “Exploration Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2012) and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.

3 M I N E R A G O L D L I M I T E D

Investment Highlights

Production

 High-grade narrow vein Torrecillas gold mine in production in

southern Peru.

 Focused on reaching ~18,000 oz Au annualized production by end

• f 2014 driven by lease of our own processing plant.

 Focus on increase in production and operating margin at Torrecillas

to partially fund exploration in 2014. Peru Exploration Upside

 Near mine exploration potential for increasing resources and

developing reserves.

 16,000ha + exploration package including high priority Tumi project.

Optionality through Brazil JV held on books for Zero.

4 M I N E R A G O L D L I M I T E D

Corporate Overview

Capital Structure

• Existing Shares on Issue

622.1 M

• Market Capitalization

~$4.0 M

• Cash at Bank – 31 Dec 2013

~$0.4 M

• Unsecured Term Debt
• Unsecured Convertible Debt

$2.5M $2.7 M

Directors and Key Management

• Alex Losada

Chairman

• Ashley Pattison

CEO / MD

• Ryan Welker

NE Director

Key Shareholders

• 1. Pershing Australia Nominees

8.28%

• 2. Citigroup Nominees Pty Limited

5.92%

• 3. Slade Technologies Pty Ltd

5.22%

• 4. Nino Constructions Pty Ltd

4.86%

• 5. West Trade Enterprises Pty Ltd

3.94%

• 6. HSBC Custody Nominees

3.13%

ASX Listed – Ticker MIZ

5 M I N E R A G O L D L I M I T E D

Directors and Key Management

Alex Losada, Non-Executive Chairman (Based in Australia)

Alex has over 25 years’ global experience as a geologist, project manager, and country manager and is currently MIZ’s competent technical person, working in-country on production and exploration strategies. Alex was previously head of exploration for Southwestern Resources Corp which accumulated substantial landholdings and operations in Southern Peru prior to being taken over by Hochchild Mining PLC in 2009. Previous roles held by Alex include Non-Executive Director of Arafura Resources Ltd, Country Manager for Overseas Mining Investments Ltd, a US$525M Cuban Ferro Nickel project, Project Manager for Ausenco (Latin America) and Project Manager for MIM Holdings Ltd (Latin America). He holds a PhD in Economic Geology and Geochemistry from Monash University, Australia and Honors in Geological science from the Universidad Nacional del Sur, Argentina.

Ashley Pattison, Chief Executive Officer and Managing Director (Based in NY)

Ashley has been the CEO of Minera Gold for the last 2 years and has more than 15 years experience working in a number of diverse roles servicing the mining industry including Director of corporate finance at Deloitte, Head of Corporate at DJ Carmichael (a resource focused stock broking firm) and was the CEO of a large mining service company for two years prior to joining Minera Gold.

Ryan Welker, Non-Executive Director (Based in NY)

Ryan has previously worked for Standard Bank, Rio Tinto and Hancock Prospecting and more recently with a broad range of mining finance groups, mining companies and other mining industry service companies as a consultant. Ryan was also a former non-executive director of Mineral Resources Limited. Ryan specialises in formulating commercial development strategies, resource project acquisitions/divestures, joint ventures and debt finance for projects and companies with a heavy focus on developing nations. Ryan is a graduate of Regent's Business School London with a BA (Hons) in International Finance and Accounting.

6 M I N E R A G O L D L I M I T E D

Peru Management Team

Alex Losada-Calderon – Competent Person and Technical Adviser

Alex has more than 25 years’ experience working worldwide as a geologist, project manager and country general

• manager. He has been involved with MIZ as our competent technical person for the last 18 months and has been

working closely with myself in country on the current production and exploration strategies. He holds a PhD in Economic Geology and Geochemistry from Monash University in Australia and holds Honors in Geological science from the Universidad Nacional del Sur, Argentina. Alex spent more than three years as the head of exploration for Southwestern Resources Corp who accumulated substantial landholdings and operations in Southern Peru prior to being taken over by Hochchild Mining PLC in 2009. Alex’s experience ranges from greenfield discoveries through to feasibility studies and the development of major mining projects in the Caribbean, Latin America and China, primarily involving with IOCG and Porphyry deposits. Previous roles held by Alex include Non-Executive Director of Arafura Resources Ltd, Country Manager for Overseas Mining Investments Ltd, a US$525M Cuban Ferro Nickel project, Project Manager for Ausenco (Latin America) and Project Manager for MIM Holdings Ltd (Latin America).

Emilio Galvez – Operations Manager

Emilio was previously the Operations Manager of the Calpa Mine, approximately 15km away from Torrecillas. Prior to that, he was the General Manager of Operations for nine years at CORPORACION MINERA EDELMIN S.A, a Swiss-

• wned mining company which operated gold and copper mines in the Chala, Cháparra and Arequipa regions in

Southern Peru. Emilio is a geologist by training.

Alison Farrell – Operational Consultant

Alison is an Australian mineral economist based in Vancouver with more than 12 years’ experience in the evaluation and management of natural resource projects in Latin America. Alison was previously based in Santiago, Chile where she was the General Manager and Director of Andes Mining & Energy S.A. and Project Manager of a mid-tier copper mine in northern Chile, which was awarded Chile’s 2009 Mine of the Year. She has strong relationships in the mining, power and financial industries, both public and private, across Latin America. Alison’s experience is an essential addition in ramping up production at Torrecillas, integrating the operations in the short-term and bolstering the profile of Minera Gold through her contact base.

7 M I N E R A G O L D L I M I T E D

Peru Asset Portfolio

8 M I N E R A G O L D L I M I T E D

Why Invest in Peru?

#1 Producer of Gold, Lead, Tin, Zinc in Latin America #2 Producer of copper and silver in the world Strong legal framework for mining and investment BBB+ S&P rating (higher than Mexico, Brazil, and Colombia) $26.3b of mining exports in 2011 (61% of total exports) Relatively low labour and mining costs Sustained economic growth for last 10

• years. Forecast 6%

growth over next 5 years #2 most attractive country for investment in Latin America (World Bank 2014) Only 13% of Peru covered by mining concessions – 1% currently mined or explored

9 M I N E R A G O L D L I M I T E D

Southern Peru – A Prolific Gold Belt

M I N E R A G O L D L I M I T E D

Minas Esperanza

Commenced: 2009 Treatment: 450TPD Grade: 2% Cu & 8 g/t Au Annual Prod: 12,000 Oz

Minas San Juan

Commenced: 1970 0.6M Oz Treatment: 350TPD Grade: 7.9 gr/t Au Annual Prod: 18,000 Oz

MIZ Properties

10 M I N E R A G O L D L I M I T E D

2014 Strategy – Overview

Minera Gold has:

 High-grade narrow vein UG gold mine at Torrecillas in Peru.  Exciting exploration assets: near mine exploration at Torrecillas and also at Tumi.  JV on development stage gold assets in Brazil.  2013 has been a year of consolidation and re-focus on ramping up production in Peru.

To maximise cash flow from Peru over next 12 months:

 Focus on lowering costs and increasing operational efficiency at Torrecillas. Achieved

through:

 Replacement of OPEX fleet with $2.5M Capex Program to go owner operator  Horizontal development at Torrecillas to discover low cost ounces to the east and west  Bring on additional veins (Ady, Tessie and Rebeca)

 Operating Lease of processing plant is key ~>$200/oz cash cost reduction.

 Secured for 3 years with first processing to occur in April 2014

 Opportunity to develop heap leach pad to process stockpiled and easily accessible

• xide ore within the existing mining permit.

11 M I N E R A G O L D L I M I T E D

2014 Strategy Objectives

• 1. Production

 Focus on long-term, low-cost sustainable production from Torrecillas and surrounding high-grade veins.  Primary source of production is the Torrecillas vein with a production target of ~1,000 oz per month.  Development of other smaller veins to deliver additional payable production:

• Ady vein initially focusing on the oxide zone at a rate of 200 oz per month at 11gpt – Feb 2014.
• Trial mining of the Tessie veins to deliver an additional 200 oz per month at 9 gpt – Mar 2014.
• Trial mining of the Rebeca veins to deliver an additional 150 oz per month at 18 gpt – Mar 2014.

 Development of a heap leach pad and processing of stockpiled oxide ore targeted for late 2H14.

• 2. Cost Reduction

 Processing Plant Lease by April 2014.

• Currently losing 18% of gold recovery under toll-treatment contract.
• Decrease processing costs by 25%.

 Replacement of high cost / unreliable rental equipment with owner operator fleet  Rationalisation of corporate overheads ongoing.

• 3. Exploration

 Primary regional focus is now on two recent bulk tonnage discoveries that are 100% owned:

• Tumi – 100Mt exploration target* at 0.8gpt Au, 0.3% Cu with Ag and Moly credits.
• Tessie – 12Mt exploration target* at 1.0gpt Au – One of four known targets within 2km to follow up.

*The term “Exploration Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2012) and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.

12 M I N E R A G O L D L I M I T E D

2014 Strategy Objectives – Decrease Cash Cost

Key assumptions applied in the above forecasts: 1. Gold grade of feed material is 10gpt Au and recover 93% based on known metallurgy of the ore from Torrecillas , Ady and Tessie. 2. Benefit from lease of mill includes both cost reduction per tonne and also improved revenue from getting 100% of the contained gold post processing. 3. Gold price of $1,250 per ounce assumed in calculating benefit per tonne processed. 4. CAPEX benefit assesses the cost per ounce saving expected from outright purchase of quality used or refurbished equipment versus

• ngoing dry hire of equipment as occurs today.

13 M I N E R A G O L D L I M I T E D

Peru Project Overview – Torrecillas – 100%

Torrecillas Gold Project – 13,000 ha package

 Torrecillas Mine – 102,000 oz @ 16.1gpt Au.  Currently in production, on track to produce 10-12,000 oz Au in 2014.  New ore shoot discovered 2H13 that has added approximately 18% to the known strike

(additional 35m) grading 40.66gpt Au.

 Every time we develop horizontal outside the resource model east and west, new ore zones are

discovered – the real potential of Torrecillas is still to be unlocked.

 Only one of 23 known veins tested in <8% of the concessions.

Exploration Targets

 Ady, Rebecca and Tessie high-grade veins are being explored by trial mining. Aim to contribute

an additional 5-7,000 oz Au in 2014 @ 9gpt.

 Recent Tessie disseminated discovery has an exploration target of 12Mt @ 1gpt as a low-cost

heap leachable open pit.

 Recent assays from surface and underground work support this target and trial heap leach

permit in progress.

 800m x 160m priority target to be tested via an RC drill program in Q1, 2014.

*The term “Exploration Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2012) and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.

14 M I N E R A G O L D L I M I T E D

Peru Project Overview – Tumi – 100% Owned

Tumi Au / Cu Project – 3,000 ha package

 Recent discovery of a large gold, silver and

copper Breccia hosted mineralised area that covers approximately 1.6km2.

 Trench samples (27) returned an average of

2.16gpt Au, 0.6gpt Ag and 0.1% Cu.

 Breccia exploration target of 60-80Mt at 1gpt Au

and 0.15% Cu plus Ag and Mo credits.

 Potential to improve grade and increase tonnage

with geophysics and RC drilling program focusing on high grade.

 Ore is likely to be amendable to heap leach

treatment.

 Easy access to power, water and ports.  New intrusive anomaly (600m x 800m)

associated with the Breccia and four new breccia targets. Exciting exploration target also.

*The term “Exploration Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2012) and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.

15 M I N E R A G O L D L I M I T E D

Peru Project Overview – Tumi – 100% Owned

 Magnetics completed in Jan 2014 have identified a substantial magnetic anomaly under cover and proven the

potential of the two main Tumi breccia outcrops at depth up to 400m

 New anomaly is located 150m from outcropping Au/Ag/Cu/Mo breccia mapped and sampled in detail in 2013.

4 additional outcropping breccia identified – one with visible Cu and Au.

 3D modelling completed by mid Jan 2014 verifies the anomaly is associated with the Tumi breccia and others.  RC drill rig being mobilized to site in March 2014 for initial 5,000m program.  Diamond drilling planned to test deeper targets in 2Q14.

New magnetic anomaly under cover NE of the

• utcropping breccia

Previously identified 400x400m outcropping mineralised breccia

16 M I N E R A G O L D L I M I T E D

Brazil

17 M I N E R A G O L D L I M I T E D

Engenho Project Brazil – MIZ & Mineralis JV

1.

JV 40% MIZ – 60% Mineralis. $4.5m to be invested by Mineralis to earn 60% equity by late 2014.

2.

More than $50M invested in the Brazilian asset portfolio to date.

3.

Crista open pit (feasibility completed) and Olhos (exploration) projects.

4.

700tpd processing plant and associated infrastructure in place. Constructed in 2008 and on active C&M.

5.

Substantial upside potential through exploration to build a 3-4 year open pit mining operation.

6.

Crista open pit project is permitted and ready for operation post funding and completion of the first pass Olhos drill program.

7.

Fully permitted and all regulatory and political hurdles have been passed.

18 M I N E R A G O L D L I M I T E D

Overview – Crista Open Pit

• 23,400 oz in JORC probable mining reserve at a grade of 4.1gpt.
• Pit is drilled to a maximum of 60m, being the cut off of the reserve.
• High grade ore comprises conventional oxide, transitional and sulphide ore.
• Cash costs < $600 / oz Au.
• Focus on proving additional 100,000 oz Au reserve.
• Regional operations (including the Engenho mine – Mundo Brazil 100% owned) illustrate that

100,000+ oz deposits are common in the Iron Quadrangle and more than 7 mines within 15km radius have produced more than 1M ounces of gold.

• Fully established processing plant
• 700TPD processing place in place, 1km south of the Crista Pit.
• Constructed in 2008 and has been on care & maintenance since January 2012.

19 M I N E R A G O L D L I M I T E D Drilling at Torrecillas – July 2011

Contact:

Ashley Pattison, CEO Suite 1800, 580 Madison Avenue, New York, Tel: +1 212 521 4493 www.mineragoldlimited.com