Gabriel Resources Ltd. · TSXV:GBU
Gabriel Resources — Investor Presentation (February 2013)
48 slides from Gabriel Resources's investor presentation, February 2013
Slide 1: The Rosia Montana Gold & Silver Project: A Project for Romania
The Rosia Montana Gold & Silver Project: A Project for Romania February 2013 1
Slide 2: Legal Notice
Legal Notice The summary information contained herein has been provided by Gabriel Resources Limited (the “Company”) in respect of its interest in the Rosia Montana Gold and Silver Project (the “Rosia Montana Project” or “Project”). The Project is wholly owned by the Company’s subsidiary Rosia Monta
Slide 3: Contents
Contents Gabriel Resources – Overview The Rosia Montana Project – Deposit and Mine Plan Additional Properties – Organic Growth Opportunities Political & Permitting Overview The Rosia Montana Project – Impact in Romania Summary 3
Slide 4: Investment Highlights
Investment Highlights World class asset: One of the most significant gold deposits outside the ownership of a “major” mining company; Measured & Indicated Resource – 17.1M oz Au (+1.4M Inferred), 81.1M oz Ag1 (Using cut off grade of 0.4g/t Au) Proven & Probable Reserve - 10.1M oz Au, 47.6M oz Ag1 (U
Slide 5: Corporate Structure
Corporate Structure1,2 Gabriel owns the Rosia Montana Project through its subsidiary, Rosia Montana Gold Corporation S.A. (RMGC), a Romanian Company in which Gabriel holds an 80.69% stake. The balance is held by CNCAF Minvest S.A., a Romanian state-owned mining enterprise Gabriel is working with the
Slide 6: Capitalization
Capitalization1 Key information Share price evolution – 12 months Share Price $2.30 52 Week High/Low $6.22 / $1.27 Average Daily Trading Vol. (3 months) ~300,000 shares Ticker GBU.TO Market TSX Market Cap $875 million Shares Outstanding 381 million Major shareholders Paulson & Co 16% Options (incl.
Slide 7: Contents
Contents Gabriel Resources – Overview The Rosia Montana Project – Deposit and Mine Plan Additional Properties – Organic Growth Opportunities Political & Permitting Overview The Rosia Montana Project – Impact in Romania Summary 7
Slide 8: Rosia Montana Project – Resources and Reserves
Rosia Montana Project – Resources and Reserves1 Tonnes Au Ag Contained Au Contained Ag Resources (Mt) (g/t) (g/t) M oz M oz Measured 171.5 1.32 8 7.26 43.16 Indicated 341.2 0.90 3 9.89 37.96 Measured & Indicated 512.7 1.04 5 17.14 81.12 Inferred 44.8 0.98 3 1.42 4.10 Tonnes Au Ag Contained Au Contai
Slide 9: Rosia Montana Project – Mine Layout
Rosia Montana Project – Mine Layout The Project consists of 4 open pits, one TMF, two waste stockpile areas, a processing plant and other associated facilities Compact and efficient design to minimize environmental impact Total surface area 1,257 ha, approximately 7km in length 9
Slide 10: Project Key Facts
Project Key Facts Open pit truck and shovel mining process – 1.2:1 waste:ore strip ratio Conventional CIL processing (closed circuit) – 14Mtpa design 16 year operating mine life Old mining district; good infrastructure and access to educated mining talent Access to grid power supplied from existing
Slide 11: Rosia Montana Project – Reserve Model
Rosia Montana Project – Reserve Model Carnic Cetate Jig Average content of reserves block (g/t) Orlea 11
Slide 12: 2012 NI 43-101 – Highlights of the Update
2012 NI 43-101 – Highlights of the Update Commissioned to reflect current CapEx and OpEx status of the Project Undertaken by SRK Consulting (UK) Limited Mineral Resource updated using a cut off grade of 0.4g/t; 2009 Resource was stated using 0.6g/t cut off grade No changes to the scope or scale of P
Slide 13: Estimated Production Profile
Estimated Production Profile1 Annual Gold Production 700 600 Production by Pit Production ozs (in 000’s) 500 Orlea 20% 400 Jig 3% Cetate 25% 300 200 100 Carnic 52% 0 Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 Yr16 Year of Mine Life Year Pit Mined Annual Silver Production 3,500
Slide 14: Cost Structure Estimates
Cost Structure Estimates1 Capital Costs: Initial Capital + Sustaining Capital = Total Capital US$1.40 billion US$571 million US$1.97 billion Operating Costs: Total Cost2 per Tonne of US$16.97 Other Mining $102 $1.95 Mining G&A Processing $263 $1.87 $3.67 LOM Cash G&A $52 Costs2 of Freight/Refining $
Slide 15: Project Economics
Project Economics Description Units 2012 2009 Gold price (US$/oz) 1,200 750 Silver price (US$/oz) 20 10.5 Life of Mine Cash cost (US$/oz) 399 335 Pre-production capital (US$m) 1,400 876 Sustaining capital (US$m) 571 366 Closure cost (US$m) 146 128 Undiscounted cashflow after tax (US$m) 3,606 1,662 N
Slide 16: Gabriel Benchmarking – Developers' Reserves and Resources
Gabriel Benchmarking Developers’ Attributable Reserves(1) 50 40 30 Moz 45 20 10 20 18 4 3 3 8 2 2 1 0 Romarco Chesapeake Gabriel Guyana Novagold Carpathian Torex Lydian Keegan Seabridge g/t Au 0.62 1.18 0.50 1.46 2.61 2.74 1.10 0.75 2.06 1.24 Developers’ Attributable Total Resources(2) 90 75 60 Moz
Slide 17: Gabriel Benchmarking – All-In Cost
Gabriel Benchmarking All-In Cost (US$/oz)(1) Dev. Capex Sus. Capex Cash Cost $1,000 $891 $891 $919 $854 $863 $866 $789 $819 $770 $800 $674 $674 $642 $653 $654 $614 $616 $600 $620 $560 $623 $489 $585 $650 $428 $542 $593 $696 $389 $399 $425 $468 $400 $421 $379 $481 $519 $231 $35 $295 $50 $39 $147 $69
Slide 18: Contents
Contents Gabriel Resources – Overview The Rosia Montana Project – Deposit and Mine Plan Additional Properties – Organic Growth Opportunities Political & Permitting Overview The Rosia Montana Project – Impact in Romania Summary 18
Slide 19: Organic Growth Opportunities – Additional Properties
Organic Growth Opportunities – Additional Properties Bucium Rodu-Frasin1: Gold and silver low sulphidation epithermal system Dominantly disseminated with associated stockworks and breccias, veins • Block size 40mE x 40mN x 10mRL • Ordinary Kriging Rosia Montana • 0.6 g/t Au cut off Rosia Poieni Buci
Slide 20: Contents
Contents Gabriel Resources – Overview The Rosia Montana Project – Deposit and Mine Plan Additional Properties – Organic Growth Opportunities Political & Permitting Overview The Rosia Montana Project – Impact in Romania Summary 20
Slide 21: Romania Rosia Montana
Romania Rosia Montana 2,000 years of mining history with reports of up Located in a highly prospective mining district to 50 million ounces of gold produced, together with significant silver and copper Rosia Montana has been mined for 2,000 years and most recently by the state until 2006 In the 5 ye
Slide 22: Romanian Parliament Structure
Romanian Parliament Structure – 412 deputies, 176 senators PSD leading Parliamentary party has a total of 225 seats. The USL coalition, plus Minorities have 413 seats. The Opposition has 175 seats. Deputies mandates Senators mandates 160 65 160 70 140 60 50 100 120 50 100 40 80 56 24 47 21 30 60 18
Slide 23: Current Romanian Government structure
Current Romanian Government structure Nicolae Liviu Dragnea Gabriel Oprea Victor Viorel Ponta Vice Prime Minister, Vice Prime Minister Prime Minister Minister of Administration (without portfolio) and Regional Development (UNPR) (PSD) (PSD) Daniel Chitoiu Relu Fenechiu Mircea Dusa Titus Corlatean Ra
Slide 24: Permitting Process
Permitting Process The Rosia Montana Project with annual production of >5M tonnes is deemed a project of “national interest” and as such has to be permitted at the National level Progress: Q3 2010 – resumption of the Technical Analysis Committee (TAC) review of the Project’s Environmental Impact A
Slide 25: Romanian Political Overview
Romanian Political Overview 2007 - 2009 2010 2011 2012 2013 2014 2015 2016 May ’07 Dec ’09 End ’14 Presidential Presidential Presidential impeachment Elections Elections Nov ‘08 Dec ‘12 End ’16 National Elections National Elections National Elections Romanian Parliament Romanian Parliament Romanian
Slide 26: New USL Government – Recent Media Statements
New USL Government – Recent Media Statements Prime Minister, Victor Ponta: “The mining project in Rosia Montana will start, if three conditions are met: observance of environmental standards, increase of royalties and increase of the Romanian State’s equity in the Project company……The mining project
Slide 27: Surface Rights Status
Surface Rights Status 60% of total To date RMGC has secured 757ha of surface land, amounting to 60% the total already surface area required for Project Project secured construction – this includes 78% of the Objective: number of homes in the Project footprint Secure 100% of the surface rights and ha
Slide 28: Contents
Contents Gabriel Resources – Overview The Rosia Montana Project – Deposit and Mine Plan Additional Properties – Organic Growth Opportunities Political & Permitting Overview The Rosia Montana Project – Impact in Romania Summary 28
Slide 29: Rosia Montana Project Benefits: Summary
Rosia Montana Project Benefits: Summary Today The vision High unemployment / poverty rate >3,000 in direct jobs over the Project’s lifetime Economy Lack of opportunities for businesses Opportunities for local businesses Harsh macroeconomic conditions >$30 billion in total contribution to Romania’s G
Slide 30: Environment – Conditions at Rosia Montana
Environment – Conditions at Rosia Montana 30
Slide 31: Contents
Contents Gabriel Resources – Overview The Rosia Montana Project – Deposit and Mine Plan Additional Properties – Organic Growth Opportunities Political & Permitting Overview The Rosia Montana Project – Impact in Romania Summary 31
Slide 32: Summary
Summary Gabriel Resources, Romania and Rosia Montana Permitting Europe’s largest gold mine……… Bringing one of the world’s largest Local community support remains strong undeveloped gold projects to production Romanian public support through Rosia Montana will become one of December 9, 2012 positive
Slide 33: ANNEXES
ANNEXES 33
Slide 34: Analyst Coverage
Analyst Coverage1 Institution Analyst Contact Information (416) 359-6189 BMO Capital Markets John Hayes johnp.hayes@bmo.com (416) 594-7106 CIBC World Markets Cosmos Chiu cosmos.chiu@cibc.ca (416) 943-6749 Cormark Securities Inc. Mike Kozak mkozak@cormark.com (212) 702-4504 Dahlman Rose & Co. Adam Gr
Slide 35: Largest Shareholder Ownership History
Largest Shareholder Ownership History Current 31-Dec-04 31-Dec-05 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 Latest Shareholders >10% millions % of total millions % of total millions % of total millions % of total millions % of total millions % of total millions % of total millions
Slide 36: Romania's Golden Quadrilateral
Romania's Golden Quadrilateral Within the Golden Quadrilateral: There are around 64 ore deposits and prospects, some of them having been mined in the past 3 active exploitation licenses: Rosia Poieni Rosia Montana Certej 5 exploration licenses Voia Cainel Rovina Magura Tebii Caraci-Birtin Exploitati
Slide 37: Project – Geology
Project — Geology an 3550000E SS Papi : 354000 mE 7355000mE 356000 mE “Seitnicel * . 357000mE 536000 mi inE Lm ‘lometers cS GABRIEL D >| —- Ragen J Moon fare ROSIA MONTANA PROJECT SURFACE GEOLOGY LEGEND LITHOLOGY Post-mineralization Vent Breccia with magnetic anomaly) cmerscon Marine sediments Undif
Slide 38: Project Geology – Cetate and Carnic Cross Section
Project Geology– Cetate and Carnic Cross Section W E Cetate Carnic Andesite Black Breccia Dacite Marine Sediments Tuffaceous Vent Breccia Polymictic breccia 38
Slide 39: Project Geology – Bucium Properties
Project Geology – Bucium Properties Immediately SE of Rosia Montana NNW structural corridor Andesite and dacitic intrusions and lavas Volcanic centres aligned NNW Epithermal deposits: • Rodu – Frasin • Contu • Arama – Argint – Vipere • Valcoi – Corabia • Izbicioara - Botes Porphyry Copper - Gold: •
Slide 40: The Proposed Mining Process
The Proposed Mining Process • An illustration of the most modern mining project in Romania Pit Blasting Ore loading Crushing Pit setup and transport Processing Gold recovery Grinding with active Melting CN Leaching carbon Electrolysis neutralisation CONCRETE PLATFORM lined with high density polyethy
Slide 41: The Technological Process in the Pits
The Technological Process in the Pits The ore is extracted in pits and crushed before entering the grinding circuit 1. Pit setup 4 pits will be set up: Carnic, Cetate, Jig and Orlea The 4 pits will be exploited in 2 phases: Cetate and Carnic in the first 9 years, while Orlea and Jig will be opened a
Slide 42: The Technological Flow in the Processing Plant
The Technological Flow in the Processing Plant 5. Grinding Wet grinding of the crushed ore in 2 ball crushers and one semi-autogenous mill; 6. Leaching Leaching of the ore in a CN solution, in closed tanks; the CN solution dissolves the gold and silver from the ore. 7. Gold and silver Gold and silve
Slide 43: Tailings Management Facility
Itinerary Tailings Management Facility 13 sites were reviewed initially Designed capacity – 250 million tonnes Corna Valley is the only site which fulfils all requirements: Necessary storage capacity – 215 million tonnes Storage capacity; Designed to resist earthquakes of 8 degrees Richter Favorable
Slide 44: Rosia Montana – Post Closure
Rosia Montana – Post Closure 44
Slide 45: Referendum December 2012- Positive
Referendum December 2012- Positive Referendum Highlights: Apuseni Mountains Local referendum – requested October 1, 2012 by 35 Mayors representing the Apuseni Mountains region of Alba County, location of Rosia Montana Voting ballot question: “Do you agree with the resumption of mining in the Apuseni
Slide 46: Key People at Gabriel Resources
Key People at Gabriel Resources Keith R Hulley Jonathan Henry Ed Flood Non-Executive Chairman President and Chief Executive Officer Non-Executive Director Keith Hulley is the current Chairman of the Board of Jonathan Henry has been the President and Chief R. Edward Flood is the founder and Chairman
Slide 47: Key People at Gabriel Resources
Key People at Gabriel Resources David Peat Dag Cramer Walter Segsworth Non-Executive Director Non-Executive Director Non-Executive Director David Peat has over 25 years of experience in financial Dag Cramer is the CEO of Onyx Financial Advisors UK. Walter Segsworth is a director of Heatherdale leade
Slide 48: Key People at RMGC
Key People at RMGC Dragos Tanase Nicolae Suciu Horea Avram General Manager RMGC Senior Vice-President Governmental Affairs Vice-President Environment and Community Relations Mr. Tánase joined RMGC in February 2008, coming Mr. Suciu began working for RMGC in 2006, initially Mr. Avram has been Vice-Pr
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