Spanish Mountain Gold Ltd. · TSXV:SPA
Spanish Mountain Gold — Investor Presentation (October 2019)
23 slides from Spanish Mountain Gold's investor presentation, October 2019
Slide 1: Spanish Mountain Gold
Spanish Mountain GOLD October 2019 TSX-V : SPA | OTC : SPAZF
Slide 2: Cautionary Statements
Cautionary Statements Certain of the statements and information on this presentation constitute “forward-looking statements” or “forward-looking information”. Forward- looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could ca
Slide 3: Favourable Mining Jurisdiction
Favourable Mining Jurisdiction Cheap grid power – 6.5¢/kWh Among lowest corporate tax rates in Canada Low Cost Refundable Mineral Exploration Tax Credit (made permanent in 2019) Attracting Major Barkerville Gold Mines by Osisko Gold for C$ 338 M Investment from 70% of Red Chris Mine by New
Slide 4: Large & Growing Gold Resource
Large & Growing Gold Resource M&I Gold Ounces* 4.5 4.0 Million Ounces 3.5 3.0 2.5 2.0 1.5 1.0 0.5 - 2008 2009 2011 2012 2014 2017 2019 Year of Resource Estimate * At economic cut-off grade TSX-V: SPA | OTC : SPAZF 4
Slide 5: New Project Concept: Focused on Phase 1
New Project Concept : focused on Phase 1 CONCEPT OBJECTIVES Strategically develop Lower initial capex higher-grade, near- Higher process plant feed grades surface resource as Improved economic metrics standalone operation (Phase 1) TSX-V: SPA | OTC : SPAZF 5
Slide 6: New Project Concept: Prioritize Development of Phase 1
New Project Concept: Prioritize Development of Phase 1 Strategic Mine Plan M&I ounces only Higher grade Near-surface PEA pit outline TSX-V: SPA | OTC : SPAZF 6
Slide 7: Mine Plan—Phase 1
Mine Plan—Phase 1 Only Measured & Indicated Resource is Processed Unit Amount M&I Mill Feed Mt 39 Gold Grade g/t 1.00 Silver Grade g/t 0.74 M&I Gold Ounces Koz 1,258 M&I Silver Ounces Koz 927 TSX-V: SPA | OTC : SPAZF 7
Slide 8: Project Profile—Phase 1
Project Profile—Phase 1 Scope Throughput 10,000 tonnes per day Initial Capex C$364 m/ US$273 m Life of Mine 11 years LOM Production 1,145,000 ounces Operations Unit Year 1 – 5 Avg. LOM Avg. Gold Grade g/t 1.13 1.00 Recovery % 91 91 Annual Gold Production Koz 116 104 Cash Cost / oz US$ 481 511 All-in
Slide 9: Project Economics—Phase 1
Project Economics—Phase 1 Positive Economics Even at Low Gold Price Environment Gold Price Pre-tax: Unit $1100 $1200 $1275* $1500 $1600 $1700 $1800 NPV@5% C$mm $232 $336 $414 $648 $752 $856 $960 IRR % 16 20 23 31 34 37 40 Payback of Initial Years 4.3 3.8 3.5 2.8 2.6 2.4 2.2 Capex * PEA base case ass
Slide 10: More about the Project…
More about the Project… Location De-risking Activities Resource TSX-V: SPA | OTC : SPAZF 10
Slide 11: Project Location
Project Location Pro-mining Jurisdiction Low political risks/ strong resource sector Attracted major in-bound investments in recent years Solid track record of new mine permitting Excellent Mining Infrastructure Close to producing mines – Gibraltar, QR Mine & Mount Polley Paved highway acc
Slide 12: Advance Stage Project
Advance Stage Project Over $80m in total project expenditures 900+ drill holes over 180,000 metres Multiple scoping studies completed to Extensive Project maximize project economics Work Completed in Multiple Areas Environmental baseline study completed and permitting activities commenced in
Slide 13: High Confidence in Metallurgical Recovery
High Confidence in Metallurgical Recovery Detailed confirmatory testwork completed Simple metallurgy and flowsheet Efficient conventional milling – coarse grind, low power cost and reagent consumption Overall gold recovery at 91% Crush & Grind Flotation Regrind CIL Location De-risking Activi
Slide 14: Environmental & Permitting
Environmental & Permitting Protocol Agreements signed with all three First Nations bands providing a framework towards Impact Benefits Community Agreements Engagement Long-standing practice of sourcing employees from First Nations and local communities Archaeological clearance obtained for the
Slide 15: Current Development Approach
Current Development Approach Mining Higher-grade, Near-surface Measured & Indicated (M&I) Ounces as Standalone Operations (Phase 1) Reduced target mill throughput to lower initial capex Lower Capex requirements significantly (~C$150m) Enhance financing options and shorten payback of initial cape
Slide 16: Phase 1 Operations: well below average AISC per oz
Phase 1 Operations : well below average AISC per oz $1,200 $1,000 $965 $894 $909 $800 Medium Producer (>200 oz/ yr) Large Producer (>1,000 oz/ yr) Small Producer (<200 oz/ yr) LOM Avg: $600 $549/oz $400 First 5 yr Avg: Phase I $519/oz $200 $0 Source: CIBC World Markets/ 2018 actual AISC per ounce Lo
Slide 17: Phase 1 Operations: NPV & IRR
Phase 1 Operations : NPV & IRR Pre-tax NPV Pre-tax IRR $1,000 50% $900 45% $800 Internal Rate of Return 40% $700 NPV (C$ Million) $600 35% Viable at low $500 gold price 30% $400 25% $300 20% $200 $100 15% $- 10% 1,100 1,200 1,275 1,500 1,600 1,700 1,800 Gold Price (US$) Location De-risking Activitie
Slide 18: Resource Estimate—Phase 1 vs. Total
Resource* Estimate—Phase 1 vs. Total Phase 1 processes only a portion of the M&I resource: 39 million tonnes @ 1.00 g/t = 1,258,000 ounces Tonnes Gold grade Gold Resource Category (Million) (g/t) (Million oz) Measured 30 0.60 0.6 Indicated 244 0.46 3.6 M&I Total 273 0.47 4.1 Inferred 53 0.37 0.6 * S
Slide 19: Large and Growing Mineral Resource
Mineral Resource Large and Growing Ensure long-life operations to ride out price cycles Completed various scoping studies supporting potential viability at different throughput: Development 40,000 tpd Flexibility 20,000 tpd 10,000 tpd Additional Only 25% of M&I ounces are captured by Pha
Slide 20: Phoenix Zone
Phoenix Zone Strike length over 3.5km in length & less than 2km from the Main Zone Preliminary metallurgical testing suggests material is amenable to same processing flowsheet as Main Zone Location De-risking Activities Resource TSX-V: SPA | OTC : SPAZF 20
Slide 21: Capital Structure
Capital Structure CASH & CAPITAL STRUCTURE 20%* Net Cash $1 million 55% 25% Shares Issued and 238 million Outstanding Warrants 22 million Retail Institutional Options 9 million Management Market Capitalization $25 million TSX-V: SPA | OTC : SPAZF 21
Slide 22: Experienced Management & High Calibre Board
Experienced Management & High Calibre Board Industry & Business Management Experience Larry Yau >30 yrs CEO Sharon Ng >20 yrs CFO Judy Stoeterau >30 yrs VP Geology Board of Directors Morris Beattie >45 yrs Chairman Full biography at: Sara Heston >15 yrs www.spanishmountaingold.com W. Terry Maclean
Slide 23: Contact Information
Contact Information Spanish Mountain Gold Ltd. 1120-1095 West Pender St. Vancouver, B.C., V6E 2M6 Canada www.spanishmountaingold.com Larry Yau, CEO Tel: +1 (604) 601-3651 Email: info@spanishmountaingold.com or Corporate Communications Tel:+1 (604) 398-4377 TSX-V: SPA | OTC : SPAZF 23
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