PG Mining Management Overview Strategic Development Partner April - - PowerPoint PPT Presentation

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PG Mining Management Overview Strategic Development Partner April - - PowerPoint PPT Presentation

PG Mining Management Overview Strategic Development Partner April 2014 PG Mining Management PG Mining Management was established to provide mining project technical expertise, commercial acumen and investment track record PG MINING


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Overview – Strategic Development Partner

PG Mining Management

April 2014

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PG Mining Management

Mining project development group

PG MINING MANAGEMENT

Extensive project development credentials Project investment capital Provide management capabilities, expertise and networks to advance mining projects Service and manage mining investments for PG Mining Management investor consortia Provide additional endorsement for mining development projects as a project enabler Specialist focus on mine building and mine production optimization

PG Mining Management was established to provide mining project technical expertise, commercial acumen and investment track record

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Global Mining Project Experience

Canada Australia New Zealand Indonesia China U.S.A (Representative Office) South Africa Philippines (Representative Office) Malaysia India

Project Experience & Office Locations

  • PG Mining Management (PGMM) staff have advised, arranged, financed, developed and operated mining projects across the

globe

Laos PNG Thailand Tanzania Singapore (Head Office) Mexico Chile Greece

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  • Investor consortium , with PGMM lead management, invested US$80m to redevelop the

Philippine copper/gold mine, and took the lead role in driving the business development and managing operations. Mining operations resumed after an 18 month rehabilitation program and the stake was sold for US$370m

  • PGMM management oversaw the US$250m construction and commissioning of the

200,000oz per annum Masbate gold project. The project was developed on time and budget and has met production forecasts. Masbate was divested by project owner CGA Mining in late 2012 for more than US$1b

Global Mining Project Experience

Mine Development Track Record

  • The PGMM track record of investment and management of mining projects includes the following recent examples:
  • Additional Projects: PGMM senior management have been involved with a large number of additional projects. Roles

include providing project development management, operational expertise, technical reviews, diligence and advisory services to many projects in most major global mining jurisdictions and covering a range of commodities

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SLIDE 5

Business Focus

Overview

  • PGMM acts as a strategic development partner for mining companies. PGMM seeks to identify projects that are compatible

with its track record and which PGMM can add value to as the project is developed

  • PGMM is a project enabler and the involvement of PGMM is intended to facilitate a project’s access to development capital,

both from PGMM’s investor consortia and other sources of capital

  • PGMM aims to promote value appreciation at every level of the capital structure

Technical & Commercial Management Services

  • PGMM adds value to mining assets through a contribution of mining technical and commercial management input. Areas of

particular expertise include:

  • Project modelling and valuations
  • Mine and project development
  • Feasibility studies for both UG and open pit
  • Resource/reserve modeling and mine design
  • Mineral exploration programs
  • Permitting in particular jurisdictions

Mining Technical

  • Investment structuring – including defining

appropriate finance instruments/ methodologies to suit a project

  • Business and project development plans
  • Partner negotiations
  • Finance and other corporate and commercial

services Commercial Management

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Technical Services & Commercial Management

Technical Services & Commercial Management Overview Development Management Team

  • PGMM performs the role of an ‘outsourced management team’ for mine project development
  • The exact nature of the management services provided by PGMM is flexible and determined by

individual project developments

  • May involve assuming overall responsibility for managing project development including setting

strategic and actionable business plans, in addition to financial objectives Problem Solving

  • PGMM also has the capability to undertake assignments focused on a particular facet of a

project - i.e. ‘trouble shooting’

  • An assignment of this nature may, for example, involve focusing on improving the operating

performance of an existing mining project

  • PGMM has a proven ability to deliver operational and financial discipline to mining projects

Technical & Commercial Reviews

  • PGMM undertakes technical reviews and limited due diligence studies for boards and project
  • wners seeking an expert opinion on mining project development

Service Delivery

  • The range of situations where PGMM may provide Mining Technical & Commercial Management Services is listed below:
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Featured Project Developments – Carmen Copper Corporation

Project Overview

  • Large porphyry copper deposit located on Cebu Island
  • Multiple open pit operation and underground development
  • Infrastructure includes power, concentrating and port facilities

Project Development

  • Purchased a 45.5% stake in a copper/gold mine in the

Philippines, Carmen Copper Corporation, co-owned with PSE listed, Atlas Consolidated Mining and Development Corporation

  • The investment was made prior to the rehabilitation of the mine,

which had operated successfully for 50 years until the mid 1990’s when it closed down due to a confluence of events

  • Consortia invested circa US$80m and held a co-control position
  • f the company with Atlas. Investor consortium management

(now PGMM) managed the business; including day-to-day

  • perations, all key development decisions and board level

matters

  • The mine began operations again in September 2008 after an

18 month rehabilitation program and currently processing an average of approximately 42,000 tonnes of ore per day at 0.31% Cu, and producing about 205,000 lbs of payable copper

  • r approximately US$750,000 revenue per day (plus gold by-

product revenue )

  • In 2011, the consortia sold its stake to Atlas financed by

Philippine’s largest bank, Banco de Oro for circa US$370m

Cebu - Philippines

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Featured Project Developments – Masbate Gold Project

Project Development

  • Site of historic small scale mining prior to more significant

mining activity from 1979 until 1994. Mining ceased in 1994 while additional drilling and in-house studies occurred through until 2002

  • The project was acquired from Thistle Mining at a feasibility

stage in 2006 by ASX and TSX-listed CGA Mining

  • PGMM management were key members of the Masbate

development team at the point of CGA Mining’s acquisition and for the entire development and early operational phases

  • CGA Mining management (now PGMM) oversaw the US$250m

construction and commissioning of the project over a two year period

  • At first gold pour in 2009 the project had Reserves of 3Moz and

was forecast to produce at a rate of approximately 200,000oz per annum from a 4Mtpa plant. 2014 budget forecasts 190,000 to 200,000oz total production

  • In late 2012 CGA Mining divested Masbate in a transaction that

valued the project at approximately US$1b

Project Overview

  • Flagship gold mine in the Philippines with over 750,000oz produced
  • Historic mining site redeveloped into modern mining operation

Masbate - Philippines

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Featured Project Developments – Additional Projects

Mine/Project Mine/Project Detail Role

Banahaw/Medusa Mine – Philippines UG mine - gold Managed permitting and development of initial small scale operation Casa Berardi Mine

  • Canada

UG mine - gold Expansion management Indonesia Nickel – Indonesia OP mine - nickel General development management and operation of DSO nickel

  • peration

Kassandra Mines – Greece UG mines - lead, zinc and gold Management of mine upgrade and introduction of modern mining methods Lepanto Mine – Philippines UG mine - gold General management of mining operations and project expansion Macasa/Lakeshore Mine – Canada UG mine - gold Management of mine redevelop and expansion Massara Mine – Philippines UG mine - gold General management of the project development and operation Mineral Hill Mine

  • USA

UG mine - gold General manager and superintendent of mining operations Mussle White Mine

  • Canada

UG mine - gold Project development Superintendent Runruno Project – Philippines OP mine – gold (under development) Conducted exploration and scoping activities leading to project feasibility

The following table lists projects for which key members of PGMM senior management have been instrumental in developing:

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Senior Management Overview

PG Mining Management

Mining Technical Mining Operational Business Development PGMM Continuity

Geology Focus Engineering Focus

Management Project/ Company Development Years Association With Other PGMM Management

Tim Armstrong

   21 Years

Scott Robson 

  10 Years

Gary Leighton

   7 Years

Dewayne Chambers

   21 Years

PGMM senior management have expertise across key project development disciplines and have a history of working together

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Senior Management - Profiles

Scott Robson

  • Scott Robson is an Australian national and a graduate of

Monash University, Australia, with a Bachelor of Science – Geology and Geophysics. He has over 20 years’ experience in the mineral industry in Australia and South-East Asia including more than 9 years operating in the Philippines, China, Indonesia and Papua New Guinea. His experience covers underground gold mining operations, open cut gold deposits, large porphyry copper-gold projects and nickel laterites

  • Scott started his career with major mining houses including

BHP and CRA Exploration in the early 1990’s and subsequently held line management positions with a number of Australian based mining groups including Resolute Samantha, Sons of Gwalia, Mt Grace Gold Mining and Geochemex Australia. His particular skill sets include resource and reserve estimation and mine planning, mine design, scheduling and tailings dam design

Tim Armstrong

  • Tim Armstrong is an experienced mining industry manager with

exposure to a range of management and operational roles in Canada and Asia over the last 24 years

  • Substantial experience in managing a wide range of

underground mine developments including: declines, shaft sinking, contract mining, design, remote operations and contract administration

  • Tim’s most recent executive position was as Chief Operating

Officer at Carmen Copper Corporation. Prior to Carmen Copper Corporation, Tim worked for CGA Mining at the Masbate gold project (acquired by B2Gold Corporation) as the Project Manager managing both the preconstruction activities and mine development. He has also served as Vice President

  • f Project Development for TVI Pacific Minerals and had his
  • wn contract drilling service company that worked with clients

in the Philippines, China and Taiwan. Other employers include J.S. Redpath Mine Contractors & Engineers (1986 – 1993) and TVX Gold (1993 – 1995). He holds a Masters in Mining Engineering from Queens University in Canada

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Senior Management - Profiles

Dewayne Chambers

  • Dewayne has over 20 years of mining development and
  • perations experience in North America and Asia
  • Operations manager with mine operations experience from

prefeasibility to full production. Specific expertise in costs analysis, production, development, design, personnel / equipment selection, property acquisitions

  • Dewayne’s most recent executive position as Senior

Operations Manager at Galeo Equipment and Mining (significant multi-mine Philippine mining contractor) is focused

  • n new mine development and feasibility related assessments.

Prior roles include Project Director at United Paragon Mining Corporation, Project Consultant at Carmen Copper Corporation, Mining/Construction Manager for Filminera Resources, Project Development Manager for Geograce’s

  • pen pit and underground mining assets and General Manager

at TVX Gold’s Mineral Hill Mine

  • Dewayne holds a Bachelor of Science and addition other

mining and business specific qualifications

Gary Leighton

  • Gary Leighton is a qualified mining engineer with professional

management experience developing mines all over the world

  • ver the last 40 years. Gary has overseen over 20 mining

project developments located around the world

  • Gary worked at a senior level with Tim Armstrong as a Project

Director at Carmen Copper Corporation from 2007 through to the mine’s redevelopment

  • Prior to his role at Carmen Copper Corporation Gary was the

General Manager at Compania Minera Tamaya Scm, Chile (2004 – 2006), Consultant to Golden Rose and Kinrade Resource Limited (2000 – 2004), General Manager at Bema Gold Chile (1996 – 2000), and Vice President Development at Barrick Gold Corporation/ Lac South America (1994 – 1995)

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