Perpetua Resources Corp. · TSX:PPTA
Perpetua Resources — Midas Gold — Investor Presentation (December 2020)
42 slides from Perpetua Resources's investor presentation, December 2020
Slide 1: Stibnite Gold Project Feasibility Study
1 Restoring and Redeveloping the Largest, Highest Grade and Lowest Cost Independent Gold Project in the U.S. Lower 48 December 2020 MAX.TSX MDRPF.OTCQX Stibnite Gold Project Feasibility Study
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 2 Forward-Looking Information Statements contained in this presentation that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legisl
Slide 3: Today's Presentation
3 TODAY’S PRESENTATION CORPORATE UPDATE Laurel Sayer, CEO Midas Gold Corp. FEASIBILITY STUDY UPDATE John Meyer, VP Development Midas Gold Idaho INVESTOR UPDATE Marcelo Kim, Chairman of Board Midas Gold Corp.
Slide 4: Corporate Update
MIDAS GOLD | aan ii RATE UPDATE
Slide 5: Idaho Leadership Strengthened
IDAHO LEADERSHIP STRENGTHENED 5 MIDAS GOLD CORP Laurel Sayer Marcelo Kim Bob Dean David Deisley Jeff Malmen Chris Papagianis Chris Robison Alex Sternhell Director & CEO Chairman Director Director Director Director Director Director Paulson & Co Fmr. Allen Fmr. NovaGold, Idaho Power, Fmr Paulson & Co
Slide 6: Our Team
OUR TEAM 6
Slide 7: Restoring an abandoned mining area with a sustainable approach
7 We can take an area abandoned after 100 years of mining activity and use a sustainable approach to restore the environment and develop a modern mining project with critical mineral production 7
Slide 8: Idaho Opportunity
8 IDAHO OPPORTUNITY ECONOMIC INVESTMENT Commitment to Hire Local Provide 500+ Direct Jobs
Slide 9: Private Funding for Environmental Restoration of Brownfields Site
9 PRIVATE FUNDING FOR ENVIRONMENTAL RESTORATION OF BROWNFIELDS SITE SOLUTIONS FOR THE ENVIRONMENT SEDIMENTATION METAL LEACHING BLOCKED FISH MIGRATION Early repair of the Pick up, reprocess, reuse and Restore fish migration and provide largest source of safely store 10.5M tons of permanent river rest
Slide 10: Critical Mineral Antimony Gains Project Support
CRITICAL MINERAL ANTIMONY(1) 10 GAINS PROJECT SUPPORT World Antimony Production SUPPLY RISK 2019 (USGS) • China and Russia dominate the world antimony supply (>80%) Turkey Australia 1% 2% • No domestic antimony production in the United States Tajikistan Bolivia 2% 10% • Midas Gold would become first
Slide 11: 2020 Accomplishments
11 2020 ACCOMPLISHMENTS Draft Environmental Impact Statement published (August 2020) Public Comment Period concluded (October 2020) Board refreshment (December 2020) Release of Feasibility Study (December 2020)
Slide 12: Project Milestones
PROJECT MILESTONES 12 2020 (Q3) 2020 (Q4) 2021 (Q3) 2022 2022/23 2026 ~2040 ~2050 Draft EIS FS Released Final EIS Ancillary Construction, Begin Commercial Begin Post-Op Most Final ROD Permits + Begin Mitigation + Operations + Restoration Reclamation Financing Legacy Restoration Completed Restoration
Slide 13: Feasibility Study
13 FEASIBILITY STUDY The Feasibility Study was prepared under the direction of Independent Qualified Persons (QPs) and in compliance with National Instrument 43-101 (NI 43-101) the Canadian Securities Administrators (CSA) standards for reporting mineral properties.
Slide 14: Feasibility Study Highlights
FEASIBILITY STUDY HIGHLIGHTS 14 Early Production Life-of-Mine Notes: Component 1. In this release, “M” = million, “k” Years 1-4 Years 1-15 = thousand, all amounts in US$, gold and silver reported in troy Total Recovered Gold 1,862 koz 4,284 koz ounces (“oz”) Total Recovered Antimony 76 Mlbs 118 Mlbs
Slide 15: FS Team
15 FS TEAM Midas Gold team led by John Meyer, VP Development Independent Qualified Persons include: Qualified Person Company Responsibilities Richard K. Zimmerman, SME-RM M3 Engineering & Technology Infrastructure & financial modeling Art Ibrado, P.E. M3 Engineering & Technology Mineral processing G
Slide 16: Feasibility Study Key Technical Focus Areas
FEASIBILITY STUDY 16 KEY TECHNICAL FOCUS AREAS • Geology - updated geological models and mineral resource estimates based on additional drilling • Mining – pit optimization, mine sequencing, and low-grade ore stockpiling • Process - flowsheet optimizations resulting from three pilot plant studies •
Slide 17: Access & Offsite Infrastructure
ACCESS & OFFSITE INFRASTRUCTURE 17 Stibnite Gold Project CURRENT INFRASTRUCTURE: • 84 road miles from Cascade • 63 road miles from McCall • Solar & diesel power generation OPERATIONS INFRASTRUCTURE: • Upgrade and extend existing power infrastructure • Stibnite Gold Logistics Facility • Upgrade and c
Slide 18: Historical Mining District
18 HISTORICAL MINING DISTRICT BROWNFIELD Based on the 2020 FS, which is intended to be read as a whole and sections should not be read or relied upon out of context. The information in this presentation is subject to the assumptions, exclusions and qualifications contained in the FS. See “Regulatory
Slide 19: Stibnite Gold Project Site Layout
STIBNITE GOLD PROJECT 19 SITE LAYOUT • Three open pits (Yellow Pine, Hangar Flats, West End) and reprocessing of historical tailings (overall 2.5:1 strip ratio) • Tunnel to manage fish and water around Yellow Pine pit • Ore stockpiling to bring high-grade ore forward while increasing mineral reserve
Slide 20: Mineral Resources & Reserves
MINERAL RESOURCES & RESERVES 20 Measured & Indicated Mineral Resources include 6.0 Moz gold at 1.42 g/t with 206 Mlbs Proven & Probable Mineral Reserves antimony at 0.07% contained in 132 Mt 3,500 include 4.8 Moz gold at 1.43 g/t with 148 Mlbs antimony at 0.06% 3,000 contained in 104 Mt Gold (thousa
Slide 21: Mining & Stockpiling
MINING & STOCKPILING 21 Top Bench = Mining Statistics N 6,880 ft Open Pit Ore Mined 102 Mt Historical Tailings Mined 2.7 Mt Upstream Valley Project Strip Ratio 2.5 waste : 1 ore Bottom = 6,150 ft Mining Cost $2.47/t Downstream Valley Bottom = 6,100 ft Ore to Mill 20.0 kt/day Mine Life 12.0 years Pit
Slide 22: Mill Feed & Gold Grade by Deposit
MILL FEED & GOLD GRADE BY DEPOSIT 22 Mill Ore Feed Tonnes (x 1,000) 9,000 3.0 Mill Ore Feed Gold Grade g/t 8,000 2.50 2.5 7,000 2.20 2.10 6,000 2.0 1.85 1.86 5,000 1.53 1.43 1.5 4,000 1.18 1.28 1.12 3,000 1.07 1.0 0.96 2,000 0.54 0.5 0.61 1,000 0.50 - 0.0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Year of
Slide 23: Ore Processing Flow Sheet
ORE PROCESSING Crushing, SAG & Ball Milling 23 FLOW SHEET Antimony High Sb Stibnite Flotation • Optimized pyrite flotation circuit with deferral of whole Concentrate Sulfide ore leach circuit until needed for West End oxide Low Sb • Optimized pH control of POX feed using onsite sourced Sulfide Pyrit
Slide 24: Recovered Gold Production
RECOVERED GOLD PRODUCTION 24 700 600 Recovered Gold (koz) 500 400 300 200 100 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Year of Operation Based on the 2020 FS, which is intended to be read as a whole and sections should not be read or relied upon out of context. The information in this presentation is s
Slide 25: Recovered Antimony Production
RECOVERED ANTIMONY PRODUCTION 25 35,000 30,000 Recovered Antimony (klb) 25,000 20,000 15,000 10,000 5,000 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Year of Operation Based on the 2020 FS, which is intended to be read as a whole and sections should not be read or relied upon out of context. The informati
Slide 26: Tailings & Water Management
TAILINGS & WATER 26 MANAGEMENT • Storage for ~109 million tonnes of tailings solids • Composite liner system with rockfill embankment & buttress • Water management to protect and improve water quality and to provide water for operations • Water management considerations dominated by spring melt • St
Slide 27: FS Capital Cost (CAPEX) Summary
FS CAPITAL COST (CAPEX) SUMMARY 27 Notes: Initial Sustaining Closure Total 1. Initial mining CAPEX includes Area Detail CAPEX CAPEX CAPEX CAPEX environmental remediation costs. (M $) (M $) (M $) (2) (M $) 2. Closure and mitigation assume self-performed costs, which will Mine Costs (1) 84 119 - 203 d
Slide 28: FS Operating Cost (OPEX) Summary
FS OPERATING COST (OPEX) SUMMARY 28 Years 1-4 Life of Mine Notes: Total Production Cost Item 1. Defined as non-sustaining ($/t milled) ($/oz Au) ($/t milled) ($/oz Au) reclamation and closure costs in the post-operations period. Mining 9.71 155 8.22 202 2. Initial Capital includes capitalized prepro
Slide 29: After Tax Cash Flow (Base Case $1,600)
AFTER TAX CASH FLOW (BASE CASE $1,600) 29 Based on the 2020 FS, which is intended to be read as a whole and sections should not be read or relied upon out of context. The information in this presentation is subject to the assumptions, exclusions and qualifications contained in the FS. See “Regulator
Slide 30: Restore the Site Closure Plan
RESTORE THE SITE CLOSURE PLAN 30 Post mining land uses include wildlife fisheries & dispersed recreation • Create a self-sustaining natural environment • Support healthy fish and wildlife population • Significant concurrent reclamation and restoration • Revegetation, reforestation & wetland mitigati
Slide 31: Project Development Next Steps
PROJECT DEVELOPMENT NEXT STEPS 31 • File NI 43-101 Technical Report • Complete SK-1300 Technical Report • EPCM Contractor Selection • Primary Equipment Vendor Selection • Engineering to Support Ancillary Permitting • Basic Engineering
Slide 32: Conclusion
32 CONCLUSION
Slide 33: Largest Independent Gold Reserve in the Lower 48
LARGEST INDEPENDENT 1,2 33 GOLD RESERVE IN THE LOWER 48 3 Stibnite (Midas Gold)3 Midas (LOM) 4.8 Marigold 3.6 Castle Mountain 3.6 Round Mountain 2.4 Haile 2.4 Bald Mountain 1.3 0.0 1.0 2.0 3.0 4.0 5.0 2019 Year-End Proven & Probable Gold (Moz) Source: S&P Global – Market Intelligence 1. Independent
Slide 34: One of Highest-Grade Open Pit Gold Deposits in Lower 48
ONE OF HIGHEST-GRADE OPEN PIT 34 GOLD DEPOSITS IN LOWER 48 Stibnite Years Midas 1-4 (Midas (YrsGold) 1-4)*2 2.2 Haile 1.7 Stibnite LOMMidas (Midas(LoM)* Gold)2 1.4 Goldfield 1.0 Gold Bar 1.0 Mount Hamilton 0.8 Relief Canyon 0.8 Wharf 0.7 Round Mountain 0.7 Soledad Mountain 0.7 Bald Mountain 0.6 Cast
Slide 35: Poised to Be Largest Independent Producing Mine in Lower 48
POISED TO BE LARGEST INDEPENDENT1 35 PRODUCING MINE IN LOWER 48 Stibnite Years 1-4 (Midas Midas (YrsGold)2 1-4)* 466 Round Mountain 362 Stibnite LOM Midas (Midas(LoM)* Gold)2 301 Marigold 220 Bald Mountain 188 Pogo 155 Haile 146 0 100 200 300 400 500 2019 Annual Gold Production (k oz) Source: S&P Gl
Slide 36: All-in-Sustaining Costs Expected to Be in Lowest Quartile
ALL-IN-SUSTAINING COSTS EXPECTED 36 TO BE IN LOWEST QUARTILE 2500 All-in-Sustaining Cost ($/oz) 2000 1500 Stibnite Gold Project (Midas Gold)1 1000 Yr1-4 LOM 500 0 Average Annual Paid Gold (represented as bar width) Source: S&P Global – Market Intelligence 1. Based on the 2020 FS, which is intended t
Slide 37: Significant Upside with Higher Gold Prices
SIGNIFICANT UPSIDE WITH HIGHER GOLD PRICES 37 MIDAS GOLD TRADES AT DEEP DISCOUNT TO PROJECT NET ASSET VALUE1 $2,350 $4,689 $2,995 Gold Price (US$/oz) $2,100 $3,888 $2,448 $1,850 $3,087 $1,900 $1,600 $2,281 $1,347 NPV at 0% $1,350 $1,470 NPV at 5% $791 MAX FD Mkt Cap $545 Current MAX Mkt Cap2 Only 29
Slide 38: Valuation Set to Re-Rate Once Permitted
38 VALUATION SET TO RE-RATE ONCE PERMITTED 350% Pre-Permitting Permitted Market Cap As % of Spot NAV4 300% 262% 250% 200% 150% 127% 100% 70% 72% 76% 48% 53% 50% 29% 32% 0% Midas Midas Integra Gold Skeena Ascot Marathon Sabina NovaGold Orla Gold1,2,3 Standard 1. Midas Gold based on market capitalizat
Slide 39: Strong & Supportive Shareholder Base
STRONG & SUPPORTIVE SHAREHOLDER BASE 39 Paulson 44.1% Barrick 11.3% Public Float 42.5% Franklin 2.1% Based on current shareholding excluding convertible notes
Slide 40: A Unique American Opportunity
40 A UNIQUE AMERICAN OPPORTUNITY • One of largest undeveloped independent gold reserves in the United States • Slated to become largest independently owned gold mine in the United States • Second highest grade undeveloped open pit deposit in Lower 48 of United States • Lowest quartile projected cost
Slide 41: Regulatory Information
REGULATORY INFORMATION 41 The FS was compiled by M3 under the direction of Independent QPs and in compliance with NI 43-101 standards for reporting mineral properties, Companion Policy 43-101CP, and Form 43- 101F1. Independent QPs for the study include: Richard Zimmerman, SME-RM (onsite and offsite
Slide 42: Thank You
42 YOU MAY ASK WHY I BELIEVE MIDAS GOLD HAS THE RIGHT SOLUTION. IT IS GROUNDED IN THE FACT THAT LOCAL PEOPLE LEAD THANK YOU THE PROJECT AND RESTORATION HAS ALREADY BEGUN. WILLIE SULLIVAN, YELLOW PINE WWW.MIDASGOLDIDAHO.COM EMAIL: community@midasgoldinc.com PHONE: (208) 901-3060 SUPPORT STIBNITE WWW.