Updated Jan. 11/12 Highlights Multi-million ounce gold mineral - - PowerPoint PPT Presentation
Updated Jan. 11/12 Highlights Multi-million ounce gold mineral resource already defined Open pit, high grade Potential for important by-products of silver, antimony & tungsten Open to expansion Extensions to existing
Updated Jan. 11/12
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0.79 2.27 0.94 1.48 0.93 2.30 1.90
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
1,000 1,500 2,000 2,500 3,000 3,500 4,000
Hangar Flats Oxide Hangar Flats Sulphide West End Oxide West End Sulphide Yellow Pine Oxide Yellow Pine Sulphide Total
Gold Grade (g/t) Mineral Resources* (000s oz Gold)
Indicated Inferred Gold Grade (g/t)
Mineral Resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss 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.
* See NI43-101 slide at the back of this presentation for responsibility and disclaimers.
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As of January 10, 2011
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Meadow Creek Fault
14 45.6 m @ 2.86 g/t Au & 4.6 m @ 1.04 g/t Au & 46.6 m @ 2.66 g/t Au 146 m @ 1.93 g/t Au, 6.68 g/t Ag, 0.48% Sb & 120 m @ 1.71 g/t Au, 4.45 g/t Ag, 0.3% Sb 40.2 m @ 2.69 g/t Au, 11.4 g/t Ag, 0.76% Sb 46.3 m @ 1.29 g/t Au and 12 g/t Ag
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Tonnes (millions) Gold Grade (g/t) Contained Gold (000’s oz) Oxide (0.3g/t cut-off) Inferred 1.5 0.789 38.2 Sulphide (0.65g/t cut-off) Indicated 9.7 2.002 624.6 Inferred 15.6 2.437 1,223.3 Combined Indicated 624.6 Inferred 1,261.5
* 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 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.
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Yellow Pine Pit & Deposit
Stibnite Pit Midnight Pit West End Pit
19 71.6 m @ 4.21 g/t Au 70.1 m @ 2.19 g/t Au 33.5 m @ 2.74 g/t Au & 30.5 m @ 2.02 g/t Au
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Tonnes (millions) Gold Grade (g/t) Contained Gold (000’s oz) Oxide (0.274 g/t cut-off) Indicated 7.50 0.963 232 Inferred 1.16 0.826 31 Sulphide (0.549 g/t cut-off) Indicated 18.30 1.512 889 Inferred 7.71 1.402 348 Combined Indicated 1,121 Inferred 379
* 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 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.
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25 38.1 m @ 2.84 g/t Au, 54.0 g/t Ag 35.1 m @ 4.07 g/t Au 53.3 m @ 4.15 g/t Au 36.6 m @ 2.21 g/t Au, 35.1 g/t Ag 100.3 m @ 2.95 g/t Au & 117.7 m @ 2.29 g/t Au 122.2 m @ 2.28 g/t Au & 42.5 m @ 1.49 g/t Au 65.8 m @ 2.57 g/t Au & 135.6 m @ 2.30 g/t Au 242.0 m @ 2.21 g/t Au 59.4 m @ 2.80 g/t Au 71.6 m @ 2.2 g/t Au
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Homestake Area
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Tonnes (millions) Gold Grade (g/t) Contained Gold (000’s oz) Oxide (0.3g/t cut-off) Indicated 1.02 0.895 29 Inferred 0.08 1.370 4 Sulphide (0.65g/t cut-off) Indicated 4.32 2.187 304 Inferred 28.09 2.322 2,097 Combined Indicated 333 Inferred 2,101
* 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 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.
31 0.0 2.0 4.0 6.0 8.0 10.0 12.0 100 200 300 400 500 600 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 Grade (g/t Au, 1/10th of g/t Ag, % Sb, % WO3) Milled Tonnes (000s) Yellow Pine (tonnes) Meadow Creek (tonnes) Gold (g/t) 1/10th of Silver (g/t) Antimony (%) WO3 (%)
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Based on average of all pre-2011 assays within a deposit area, regardless of grade, using current metal prices ($1,600 Gold, $28 Silver, $12,000 Antimony)
Gold Silver Antimony
Hangar Flats
Gold Silver Antimony
West End
Gold Silver Antimony
Yellow Pine
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granite-hosted deposits – Hangar Flats – Yellow Pine
deposit at West End
– Coincident with ‘Sugar’, ‘Fern’, ‘Hermes’ & ‘Rabbit’ prospects – Major new targets, including:
1) NW of Yellow Pine 2) South of Hangar Flats 3) South of Fern = Mule
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Limited amount of additional drilling on Yellow Pine and Hangar Flats Updated mineral resource estimates for each of Hangar Flats, West End and Yellow Pine during Q2 2012 These estimates will be used to complete independent PEA in mid 2012
Conduct additional infill drilling to convert any remaining inferred resources to higher confidence levels Ongoing metallurgical work, engineering and other studies Advance project towards completion of independent PFS
Work will involve mapping, sampling, geophysics and drilling Build pipeline of new mineral prospects by conducting systematic, intensive exploration across Golden Meadows Determine ultimate mineral potential of the district
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Analyst Firm Phone Email
Joe Mazumdar Haywood Securities 604.697.7124 jmazumdar@haywood.com Michael Gray Macquarie Capital Markets 604.639.6372 michael.gray@macquarie.com Adam Melnyk Desjardins Capital Markets 416.607.3081 adam.melnyk@vmd.desjardins.com Michael Curran RBC Capital Markets 416.842.3770 michael.curran@rbccm.com
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Stephen Quin
President & CEO
Darren Morgans
CFO
Alia Khan
Accounting Manager
Heather Ennis
Treasurer
Kate Wood
Office Administrator
Anne Labelle
VP Legal & Sustainability
Howard Small
Manager of Regulatory Affairs
Rick Richins
Regulatory Consultant
Bob Barnes
VP Development
John Meyer
Development Manager
Richard Moses
Field Operations Manager
Don Weaver
Drill Program Supervisor
Tracy McMaster
Project Admin & HR
Paul Jensen
Senior Geologist
Chris Dail
Exploration Manager
Ken Assmus
GIS Manager
Liz Caridi
Manager of IR
Stephen Quin, President, CEO & Director
Peter Nixon, Chair
Fred Earnest
Jerry Korpan
Wayne Hubert
Mike Richings
Don Young, Audit Committee Chair
John Wakeford
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Bob Barnes, VP Development
Chris Dail, CPG, Exploration Manager
Western Australia)
John Meyer, Development Manager
design and development of this high-grade refractory gold project from PEA to FS
Richard Moses, Field Operations Manager
mineral resource and hydrologic drilling
Rick Richins, Regulatory/permitting Consultant
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NW trending stratigraphy N & NE trending faults Possible ring fractures
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500 1000 1500 2000
LME Gold Price - US$/oz
10 20 30 40 50 60
LME Silver Price - US$/oz
100 200 300 400 500
Metals Bulletin - Tungsten APT (US$/MTU)
5000 10000 15000 20000
Metals Bulletin - Antimony Metal Standard Grade II (US$/tonne)
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Note: Not all permits may be required for Golden Meadows
Source: Idaho JRP /Macquarie Research Report October 2011
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RISK(S) MITIGATION Extended Permitting Sequence MOU’s with agreed upon timelines, review times & responsibilities Stream Relocations Restore anadromous fishery in EFSF & Meadow Creek Water Discharges/TMDL(s) Land Application & Select Mitigation Patented vs. USFS Land Land Exchange TMDL Modification (Sediment, As) Mine Area SWPPP Targeted Cleanup Actions, Overall WQ Improvements Transportation Efficiency/Environmental New Main Access AND diesel/power generation needs reduced by line power
Local Economic Jobs, Local Hire & Purchase, & Local & State Taxes
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The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements set
exploration activities at Golden Meadows were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager. Some of the mineral resources at Golden Meadows are categorized as indicated and some as inferred mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss 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. Cautionary Note – The mineral resource estimates referenced in this presentation use the terms “Indicated Mineral Resources” and “Inferred Mineral Resources.” We advise you that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into
The mineral resource estimate for each of the Hangar Flats, West End and Yellow Pine deposits were prepared by Dr. Bart Stryhas, CPG, Principal Resource Geologist with SRK Consulting (US) Inc. and is the independent Qualified Person (“QP”) as defined by NI43-101 responsible for this mineral resource estimate. This estimate should be read in conjunction with the “NI43-101 Technical Report on Mineral Resources, Golden Meadows Project, Valley County, Idaho”, dated June 6, 2011.
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Statements contained in this presentation and in the preliminary prospectus referred to herein and dated May 30, 2011 (the “Prospectus”) that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, statements relating to the timing, availability and amount of financings; expected use of proceeds; business objectives; costs and timing relating to the potential acquisition of interests in mineral properties; the timing and costs of future exploration activities on the Corporation‘s properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, entry into further option or joint venture agreements, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims acquired pursuant to the Reorganization (as defined in the Prospectus); anticipated results and developments in operations in future periods; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof; evaluation
compensation and carrying value of properties. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the Golden Meadows Project is
several material assumptions, including, but not limited to, the assumption that the Offering will be completed and that any additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies in 2011 and 2012 will be consistent with the Corporation‘s expectations; that the current exploration and other objectives concerning the Golden Meadows Project can be achieved and that its other corporate activities will proceed as expected; that the current price and demand for gold will be sustained or will improve; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for the planned exploration on the Golden Meadows Project will be obtained in a timely manner and on acceptable terms; the continuity of the price of gold and
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Other assumptions are discussed throughout this presentation and the Prospectus and, in particular, in the “Risk Factors” section in the Prospectus. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, risks related to the completion of financings and the use of proceeds; operations and contractual obligations; changes in exploration programs based upon results of exploration; changes in estimated mineral reserves or mineral resources, future prices of metals; availability of third party contractors; availability of equipment; failure
with the mineral exploration industry; environmental risks, including environmental matters under U.S. federal and Idaho rules and regulations; impact of environmental remediation requirements and the terms of existing and potential consent decrees
delays in obtaining governmental approvals or financing; fluctuations in mineral prices; the Corporation‘s dependence on one mineral project; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the Corporation‘s lack of operating revenues; governmental regulations and the ability to obtain necessary licences and permits; risks related to mineral properties being subject to prior unregistered agreements, transfers or claims and other defects in title; currency fluctuations; changes in environmental laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may increase costs of doing business and restrict operations; risks related to dependence on key personnel; and estimates used in financial statements proving to be incorrect; as well as those factors discussed in the section entitled “Risk Factors” in the Prospectus. Although the Corporation has attempted to identify important factors that could affect the Corporation and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Corporation does not assume any obligation to release publicly any revisions to Forward- Looking Information contained in this presentation or the Prospectus to reflect events or circumstances after the dates thereof or to reflect the occurrence of unanticipated events.
Tel: 778.724.4700 Fax: 604.558.4700 E-mail: lcaridi@midasgoldcorp.com Suite 1250 – 999 West Hastings Street Vancouver, BC CANADA V6C 2W2