Sage Gold Inc · OTC:SGGDF
Sage Gold — Investor Presentation (June 2013)
21 slides from Sage Gold's investor presentation, June 2013
Slide 1: Path to Production
Path to Production Path to Production Timmins, Ontario TSX-V : SGX Aug-Sept 2012 June 2013
Slide 2: Forward Looking Statements
Path to Production Forward Looking Statements Statements made in this presentation, other than those concerning historical information, should be considered forward-looking statements which are subject to various risks and uncertainties. Such forward-looking statements are made based on management’s
Slide 3: Corporate Vision and Corporate Structure
Path to Production CORPORATE VISION Sage Gold’s short term plans are to develop production on their existing resource on the Clavos deposit to generate cash flow to fund further exploration and potentially develop a leading gold mining company in a world class mining camp. CORPORATE STRUCTURE • Shar
Slide 4: Timmins Gold Camps - Clavos Deposit
Path to Production TIMMINS GOLD CAMPS CLAVOS DEPOSIT Timmins, Ontario 3
Slide 5: Sage Gold Advantage
Path to Production SAGE GOLD ADVANTAGE 1 Potential Near Term Production – Clavos Deposit Sage Gold has access to a custom mill in the area and may be able to move into production cost effectively - could generate strong cash flow for the company Permits in place to re-open Clavos for dewatering
Slide 6: Clavos Deposit - Highlights
Path to Production CLAVOS DEPOSIT- HIGHLIGHTS Located in the prolific Timmins Mining camp and close geographically (20kms) to Goldcorp’s (TSX-G) high grade Hoyle Pond mine which has produced more than 2.4 M ozs since 1985 and is still in operation Existing infrastructure in place including under
Slide 7: Near Term Production Plans
Path to Production NEAR TERM PRODUCTION PLANS CLAVOS DEPOSIT Timmins, Ontario Q2- 2013 Preliminary Economic Assessment completed March 2013 Financing Q3- 4 2013 Dewater and Rehab. Mine Upgrade resources to reserves – Definition drilling Start of initial tonnage extraction Q1- 2015 - Commer
Slide 8: Path to Production
Path to Production GOLD PRICE US$ / Oz (Au) $1400/Oz $1500/Oz $1600/Oz Base Case Clavos Gold Production Oz/Au 145,448 145,448 145,448 PEA Revenue Cdn$ million 203.6 218.2 232.7 Economic Model Initial Capital Expenditures (100%) Cdn$ million 14.1 14.1 14.1 Sustaining Capital Cdn$ million 21.1 21.1 21
Slide 9: What Makes Clavos Unique
Path to Production WHAT MAKES CLAVOS UNIQUE ENVIRONMENTAL PERMITTING a ll permits in place to dewater and commence Tonnage extraction – 700 tpd EXISTING SURFACE INFRASTRUCTURE 10 km truck haul road to Hwy 101 10 km by 27.6 kV overhead power line mine access roadways mobile shop, generator,
Slide 10: Clavos Existing Underground
Path to Production CLAVOS EXISTING UNDERGROUND 2,923m of primary access 710m of secondary access 3,208m of lateral level development +200,000 m of surface & underground diamond drilling 10 levels with detail geological mapping & channel sampling Replacement value $40.0m 9
Slide 11: Clavos Capex Budget $14.1 Million
Path to Production CLAVOS CAPEX BUDGET $14.1 MILLION • Mining Equipment $5.5 • Surface Infrastructure $3.0 • Mine Rehabilitation $3.0 • Contingency $2.6 HISTORICAL MILLING DATA (96,887 t): MILLING HEAD GRADE RECOVERY Gold Gold % oz gms/t oz/t (Au) 2nd Half 2005 6.23 0.20 87.4% 5,657 1st Half 2006 5.
Slide 12: Clavos NI43-101 Mineral Resource Oct '12
Path to Production CLAVOS NI43-101MINERAL RESOURCE Oct ‘12 Category Tonnes Grade Total Ounces Total Indicated 1,258,400 4.81 g/t 194,600 __________________________________________________________________________ Total Inferred 795,600 4.70 g/t 120,000 ________________________________________________
Slide 13: Clavos Resource Categories 2012
Path to Production CLAVOS RESOURCE CATEGORIES 2012 4.5 KM strike length 12
Slide 14: Clavos PEA Report 2013
Path to Production CLAVOS PEA REPORT 2013 Forecasted production rate 600 tpd Life of Mine 7 years Forecasted Full production 3rd year, 4th Qtr. Internal dilution in resource block estimate External dilution: - cut & fill methods 10% at 0 gms/t - long hole methods 40% at 0 gms/t Tonnage r
Slide 15: Clavos Sustaining Capital ($21.0 M)
Path to Production CLAVOS SUSTAINING CAPITAL ($21.0 M) Commence 1st Qtr, Year 2 Mine Development $ 4.9m Diamond Drilling $ 2.5m Discretionary $13.6m PHASE 01: excavate 3m x 4m x 200m trackless heading to access Sediment Zone, complete 60m/30m drilling to evaluate Existing Clavos Down Plu
Slide 16: Board of Directors
Path to Production BOARD OF DIRECTORS Mr. Mars is an independent consultant specializing in mine financing and analysis with over 30 years of experience in the Patrick J. Mars investment industry. Mr. Mars has acted as Chairman, CEO, or Director for several public-traded mining companies and is Chai
Slide 17: Management and Consultants
Path to Production MANAGEMENT and CONSULTANTS Management C. Nigel Lees Mr. Lees is a founder and past director of TVX Gold Inc., a significant gold producer in North and South America, which merged into Kinross Gold, listed on the TSX and the New York Stock Exchange. Mr. Lees has over 30 years Presi
Slide 18: Sage Exploration Properties
Path to Production SAGE EXPLORATION PROPERTIES Beardmore Geraldton Gold Camp Joint Venture Potential • Properties - Onaman - Lynx Deposit, NI43-101 compliant resource Paint Lake (adjacent to Brookbank Gold Deposit) Jacobus (Cu/Ni), Clist Lake (Au) • Infrastructure in place - Road, Rail, Power • Unde
Slide 19: Onaman Lynx Deposit
Path to Production ONAMAN LYNX DEPOSIT Beardmore, Ontario Lynx NI43-101 Open Pit Resource 485,000 tonnes 2.1 % Cu, 45.3 g Ag/T, 0.70 g Au/T at 1% Cu cut off Lynx NI43-101 Resource 1.936 million tonnes, 1.44% Cu 39.6 g Ag/T, 0.58 g Au/T Yellow = .5% Cu x 3 metres – Cut Off Red = 1% Cu x 3 metres 18
Slide 20: Why Invest in Sage Gold
Path to Production WHY INVEST IN SAGE GOLD Near Term Potential Production Q1 -2015 Positive Preliminary Economic Assessment Low Capex / Fast Potential Payback Strong potential to increase tonnage through further in-fill and exploration drilling Strategic acquisitions being evaluated to inc
Slide 21: Contact Information
Path to Production CONTACT INFORMATION Sage Gold Inc. 365 Bay Street, Suite 500 Toronto, ON M5H 2V1 Tel.: 416 204-3170 Fax: 416 260-2243 info@sagegoldinc.com Mike O’Brien – Communications Manager; Investor Relations 20