Future Mineral Resources Inc. · TSX:FMR
Future Mineral Resources — Sulliden Gold — Investor Presentation (July 2013)
37 slides from Future Mineral Resources's investor presentation, July 2013
Slide 1: Low Cost Gold Project in Peru: Clear Path to Production
Low Cost Gold Project in Peru Corporate Presentation Clear Path to Production July 2013
Slide 2: Cautionary Statement
Cautionary Statement This presentation may include certain “forward-looking statements” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding future plans and ob
Slide 3: Company & Project Overview
Company & Project Overview Near-term gold production in excellent mining jurisdiction Simple open-pit, heap leach mine Currently in advanced stages of permitting Top Tier Economics (Feasibility Study, Sept 2012) +/- 90,000 oz/year, cash costs of $552/oz; CAPEX of $131.8M Pre Tax IRR of 52.2%
Slide 4: Peru is among the top 10 gold producers in the world
1. China 2. Australia 3. USA Peru is among 4. South Africa Gold producer the top 10 gold 5. Russia #1 in Latin America producers in the world: 6. Peru 7. Ghana Gold producer 8. Canada #6 in the world 9. Indonesia Silver producer 10. Mexico #2 in the world Copper producer #2 in the world Zinc & Tin p
Slide 5: Shahuindo Gold & Silver Project
Shahuindo Gold & Silver Project Located in a low cost mining district Lowest Capex & Cash Cost Mines in the World Lagunas Norte (Barrick), Peru 1 28 km from Shahuindo 2 El Sauzal (Goldcorp), Mexico 3 Kettle River (Kinross), USA 4 Kupol (Kinross), Russia 5 Cortez (Barrick), USA 6 Veladero (Barrick),
Slide 6: Excellent Infrastructure & Accessibility
Excellent Infrastructure & Accessibility 6
Slide 7: Mineral Resource Growth - Gold
Mineral Resource Growth - Gold Measured & Indicated (M&I) Mineral Resources Inferred Mineral Resources 3,000,000 M&I gold mineral resources increase to: 2009 2011 2012 2,438,000 ounces Inferred gold mineral resources increase to: 2,500,000 2.44 M 1,628,000 ounces 2,000,000 1.97 M 1.63 M Excellent ex
Slide 8: Mineral Resource Growth - Silver
Mineral Resource Growth - Silver Measured & Indicated (M&I) Mineral Resources Inferred Mineral Resources 60,000,000 M&I silver mineral resources increase to: 2009 2011 2012 33,370,000 ounces Inferred silver mineral resources increase to: 50,000,000 46.6 M 46,560,000 ounces 40,000,000 38.6 M 33.4 M E
Slide 9: Numerous Targets Remain Unexplored
Numerous Targets Remain Unexplored Excellent mineral growth potential Geochemical Footprint Defined Mineral Resource 9
Slide 10: Typical Cross Section
Typical Cross Section Widely disseminated gold mineralization at surface 10
Slide 11: Production Growth Profile
Production Growth Profile Mine expansion through cash flow once in commercial production Mineral Reserves represent only about 40% of gold ounces from Phase 1 - Central Corridor, high grade areas total oxide mineral resource* Phase 2 - Expanded Central Corridor Phase 3 - Near-term mineral growth pot
Slide 12: Feasibility Study Results
Feasibility Study Results Phase I and expansion scenario to Phase II Phase I Phase II (Feasibility Study Results - Sept 2012) (Phase I considers only 40% of current mineral resources) Tonnes per day mined 10,000 tpd Tonnes per day mined 30,000 tpd Gold Eq. Production +/- 90,000 oz/year Gold Eq. Prod
Slide 13: Shahuindo Feasibility Results: 10k tpd Mine Layout
Shahuindo Feasibility Results 10k tpd Mine Layout 13
Slide 14: Shahuindo Expansion Scenario
Shahuindo Expansion Scenario Preliminary Layout for expanded 30k tpd Mine 14
Slide 15: Simple & Low-Risk Mining
Simple & Low-Risk Mining Open Pit 1 Mine - Conveying - Agglomerating - Stacking 3 ADR Plant Heap Leach 2 Processing Carbon in Column Gold Recovery Plant Preg Pond Barren Pond Carbon Stripping/Reactivation Phase 1 (+/- 90k oz/yr) to act as a foundation for expansion Phase 1 considers 40% of curre
Slide 16: Attractive Economics
Attractive Economics Comparable Gold Oxide Projects Company, Technical Au IRR IRR Annual Mine Cash Costs Strip CAPEX Project & Location Report Price (Pre-Tax) (Post-Tax) Production Life (per oz.) Ratio Sulliden Gold, Feasibility Study $1,300 45.6% 33.0% 87,700 oz. 10 yrs $541 $131.8 M 1.97:1 Shahuin
Slide 17: Low Cash Cost Project
Low Cash Cost Project Shahuindo is located among some of the lowest cost mines in the world N.A. Producers Average Sulliden’s Shahuindo: $552/oz; 0.84 g/t (Q3 2012) Buenaventura & Southern Cash Costs: $552/oz Cash Costs: $800/oz Peru Copper’s Tantahuatay: All-in Cash Costs: $826/oz All-in Cash Costs
Slide 18: Project Funding
Project Funding Extensive due diligence by Agnico-Eagle April 9, 2012 – $24M strategic investment by Agnico-Eagle 26,966,292 units at a price of $0.89 per unit Unit = One common share and 0.7 of a warrant ($1.31 strike price; 2 year term) Agnico-Eagle owns 9.96% of Sulliden’s issued and ou
Slide 19: Timeline to Production
Timeline to Production 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Updated NI43-101 Mineral Resource Feasibility Study Submission of ESIA Report Final Public Audience Expected ESIA Approval Power Project & Mine Construction Production Start (range)
Slide 20: Permitting Progress
Permitting Progress Completed ESIA Document Components 2nd round Baseline Studies of official Feasibility Study community Final Public Impact Analysis & meetings Audience ESIA Approval Target Production Management Plan (Nov 2012) (March 2013) (Expected in Q3 2013) (2014) 1st round Submission o
Slide 21: Community Information Meetings
Community Information Meetings Sample pictures from 2nd Round of Official Meetings (Nov 2012) Algamarca Araqueda Chuquibamba La Fila Liclipampa Alto Moyán Alto 21
Slide 22: Completed Information Meetings
Completed Information Meetings 16 communities 1,100 participants 22
Slide 23: Final Public Audience
Final Public Audience March 13, 2013 Over 2,500 attendees 23
Slide 24: Corporate Structure
Corporate Structure Capitalization Summary (July 5, 2013) Analyst Coverage TSX: SUE Steve Parsons Trading Symbols BVL: SUE OTCQX: SDDDF Chris Thompson Shares Outstanding 270.7M Fully Diluted 314.1M Andrew Kaip Share Price (TSX) $0.77 52-week Range (TSX) $0.67 - $1.44 Richard Gray Average Daily Volum
Slide 25: Value Proposition
Value Proposition High Quality, Low Risk Project Low CAPEX and operating costs Simple heap leach mining Located near some of the largest and lowest cost mines in the world Currently in final stages of permitting Strategic investment by AEM in April 2013 Clear Path of Growth Multi-million
Slide 26: Appendices
”n o 2 a) c ® 2. 2 <x
Slide 27: Shahuindo Project, Peru
Shahuindo Project, Peru 6 SULLIDEN TSX: SUE BVL: SUE OTCQX: SDDDF N “I
Slide 28: Team Sulliden Gold Corp
Team Sulliden Gold Corp Proven Management Team Justin Reid, MSc., MBA, President & Director Geologist and capital markets executive with +20 yrs focused in the mineral resource space Former senior mining analyst at Cormark and Managing Director Global Mining Sales at NBF Peter Tagliamonte, P.Eng
Slide 29: Peru Permitting Developments
Peru Permitting Developments Recent ESIA Submissions and Approvals in Peru Cerro Verde Project (Freeport-McMoRan Copper & Gold) $4.4B copper mine expansion project ESIA submission in November 2011 ESIA approved in December 2012 Construction permit received February 2013 Inmaculada Projec
Slide 30: NI 43-101 Mineral Resources
NI 43-101 Mineral Resources September 2012 Gold Gold Silver Silver Gold Contained Grade Contained Grade Tonnes (t) Grade Ounces (g/t) Ounces (g/t) Eq.g/t Total Measured & Indicated 2,438,000 0.52 33,370,000 7.1 147,310,000 0.54 Mineral Resources Measured Mineral Resources Oxide (Reported at 0.2 g/t
Slide 31: NI 43-101 Mineral Reserves
NI 43-101 Mineral Reserves September 2012 Mineral Reserves represent only approximately 40% of the gold ounces from total oxide mineral resource Gold Gold Silver Silver Gold AuEq contained grade contained grade Tonnes (t) grade Ounces (ounces) (g/t) (ounces) (g/t) Eq.g/t Total P&P 1,022,000 0.84 11,
Slide 32: Cost Breakdown
Cost Breakdown Feasibility Study, September 2012 Capital Costs Operating Costs ADR Plant & Infrastructure $ 15M Mining $ 5.66 / t processed Crushing & Conveying $ 18M Processing $ 4.51 / t processed Heap Leach & Ponds $ 22M G&A $ 1.77 / t processed Mobile Equipment $ 30M Total Operating Cost $ 11.94
Slide 33: Metal Price Sensitivity Table
Metal Price Sensitivity Table Feasibility Study Results Gold Price Silver Price IRR IRR Cash Costs Payback (US$/oz) (US$/oz) 1 Pre-Tax (%) After-Tax (%) per oz Au 2 After-tax $900 $17 19.0% 13.5% $509 4.8 yrs $1,100 $21 33.2% 23.9% $524 3.2 yrs $1,300 $25 45.6% 33.0% $541 2.5 yrs $1,500 $29 56.9% 41
Slide 34: Shahuindo Geology
Shahuindo Geology Shahuindo is located in a regional flexure of a thrust and fold belt Mineralization is hosted in the Farrat, Carhuaz, Santa and Chimu Formations, which are part of a clastic sedimentary sequence Low temperature alteration clays and sulphates found in the oxides indicate that
Slide 35: Sustainable Development Initiatives
Sustainable Development Initiatives Education, Training & Small Business Coaching Local Opportunities Programs Partnership with: In partnership with recognized Peruvian training institutions, Sulliden provides training programs in Masonry, Ironworks, Electrical Wiring & installations, Front end lo
Slide 36: CSR Programs
CSR Programs Community Support & Local Development Programs Small Business Development In partnership with public institutions and private entities, Sulliden Development of irrigation assists in the sustainable development of local businesses infrastructure in Cajabamba (Commercial production of haa
Slide 37: Sulliden Gold Corporation Ltd. contact details
Sulliden Gold Corporation Ltd. Peter Tagliamonte 65 Queen Street West, Suite 800 Chairman & CEO Toronto, Ontario M5H 2M5 T +1 (416) 861-1685 Justin Reid F +1 (416) 861-8165 President & Director Trading Symbols Investor Relations TSX:SUE T +1 (416) 861-5805 BVL:SUE info@sulliden.com OTCQX:SDDDF www.s