Gabriel Resources Ltd. · TSXV:GBU
Gabriel Resources — DGG Denver Gold Forum 2013
74 slides from Gabriel Resources's conference presentation, September 2013
Slide 1: The Rosia Montana Gold & Silver Project: A Project for Romania
The Rosia Montana Gold & Silver Project: A Project for Romania DGG Denver Gold Forum – September 2013
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 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 currently holds an 80.69% stake. The balance is held by CNCAF Minvest S.A., a Romanian state-owned mining enterprise Gabriel is workin
Slide 6: Capitalization
Capitalization1 Key information Share price evolution – 12 months Share Price $0.80 52 Week High/Low $2.94 / $0.41 Average Daily Trading Vol. (3 months) ~1.6 million shares Ticker GBU.TO Market TSX Market Cap $307 million Shares Outstanding 384 million Major shareholders Paulson & Co 16% Options (in
Slide 7: Contents
Contents Gabriel Resources – Overview The Rosia Montana Project – Deposit and Mine Plan Additional Properties – Organic Growth Opportunities Political & Permitting Overview The 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 – Perspective
Rosia Montana Project – Perspective Rosia Montana Protected Area Jig Pit Carnic Waste Dump Carnic Pit Orlea Pit Cetate Pit LGS Plant Site Tailings Dam 9
Slide 10: 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 10
Slide 11: 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 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
Gabriel Benchmarking Developers’ Attributable Reserves(1) 50.0 40.0 Moz 30.0 20.0 44.7 10.0 8.1 7.3 19.7 18.5 4.1 10.1 3.5 2.8 2.2 2.1 2.0 0.8 0.8 0 (3) Torex Guyana Lydian Novagold Aureus Int. Tower Asanko Gabriel Belo Sun Seabridge Carpathian Pretium Romarco Chesapeake Hill g/t Au 0.62 1.18 0.50 0
Slide 17: Industry All-In Sustaining Costs vs Gold Price
4 Year Industry Average All-In Sustaining Costs vs Gold Price1 $1,800 $1,600 Average 2012 All-In Margin: $1,400 $457/oz $1,211 $1,200 $1,043 $283 $1,000 US$/oz $857 $234 $190 $800 $717 $134 $166 Rosia Montana LOM $100 $39 Average All-In Cash Cost: $166 $600 $653/oz $139 $32 $20 Rosia Montana $16 $40
Slide 18: Contents
Contents Gabriel Resources – Overview The Rosia Montana Project – Deposit and Mine Plan Additional Properties – Organic Growth Opportunities Political & Permitting Overview The Project Impact in Romania Summary 18
Slide 19: Rosia Montana – A Mining District
Rosia Montana – A Mining District Rosia Montana: Historical workings at Rosia Poieni: A state owned working mine the Cetate pit 19
Slide 20: 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 21: Contents
Contents Gabriel Resources – Overview The Rosia Montana Project – Deposit and Mine Plan Additional Properties – Organic Growth Opportunities Political & Permitting Overview The Project Impact in Romania Summary 21
Slide 22: 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 23: 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 418 seats. The Opposition has 146 seats. Deputies mandates Senators mandates 162 180 63 160 70 140 60 50 99 120 50 100 40 80 47 23 20 60 30 30
Slide 24: Romanian Government structure and Ministries
Romanian Government structure and Ministries 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 Radu Stroe Ramona Mircea Dusa Titus C
Slide 25: Recent Project Progress
Recent Project Progress Q3 2010 – resumption of the Technical Analysis Committee (TAC) review of the Environmental Impact Assessment (EIA) 2011 – received Environmental Approval of the PUZ for the Industrial Project and Archaeological Discharge Certificate for Carnic (ADC #4) 2011 – TAC visits
Slide 26: Next Steps
Next Steps Parliamentary debate and ratification: • September 23 - the representatives of the Ministry of Culture and of the Ministry of Justice to be heard • September 24 - officials from the Ministries of Environment and Climate Change, the Department for Infrastructure Projects of National Intere
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 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 >$24 billion(1) in total contribution to Romania’
Slide 30: Environmental – General
Environmental – General Gabriel / RMGC commitments: Integrate environmental standards in all activities; ensure high standards of employee training; Establish and maintain a management system to identify, monitor, control and improve the environmental performance of RMGC activities; Finance independ
Slide 31: Environmental – Water
Environmental – Water The Project will have a positive impact on the water quality of Rosia Montana by cleaning up historical pollution Pilot water treatment plant established in early 2012 with positive results. Since late 2012, RMGC has been working with the Government to use the pilot plant for a
Slide 32: Environmental – Rosia Montana Today
Environmental – Rosia Montana Today 32
Slide 33: Environmental – Rosia Montana Today
Environmental – Rosia Montana Today 33
Slide 34: Environmental – Rosia Montana Today
Environmental – Rosia Montana Today 34
Slide 35: Environmental – Rosia Montana Today
Environmental – Rosia Montana Today 35
Slide 36: Water management – ARD treatment pilot plant
Water management – ARD treatment pilot plant Through 714 Adit, an average of 80m3/h acid waters are discharged in Rosia Valley, generated from the former mines, with high content of Steel, Manganese, Aluminum, Copper, Cadmium, Nickel, Arsenic and pH=2.5 ARD treatment pilot plant presents the nano- f
Slide 37: Environmental – Rosia Montana Today
Environmental – Rosia Montana Today 37
Slide 38: Environmental – Rosia Montana Today
Environmental – Rosia Montana Today 38
Slide 39: Environmental – Rosia Montana Today
Environmental – Rosia Montana Today 39
Slide 40: Environmental – Rosia Montana Today
Environmental – Rosia Montana Today 40
Slide 41: Environmental – Operating Phase, Year 8
Environmental – Operating Phase, Year 8 41
Slide 42: Environmental – Post Closure
Environmental – Post Closure 42
Slide 43: Patrimony
Patrimony Historically Romania had a strong mining industry Example of local RMGC community investment More than 2.6 million people (approx. 12% of the country’s in the former ‘Town Hall’ population) live in approximately 600 mining communities By 2006, the Romanian government closed 80% of the 650
Slide 44: Patrimony / Community
Patrimony / Community ‘Old School’: built in 1898 and used as Old School in Historical Centre Restoration Plan school until 2005 Currently owned by the Local Council Restoration / Conversion plan Design completed Restoration largely complete (now weatherproof) Historical Centre – initial status
Slide 45: Culture – Rosia Montana 80 years ago
Culture – Rosia Montana 80 years ago 45
Slide 46: Culture – Rosia Montana today
Culture – Rosia Montana today 46
Slide 47: Culture – Rosia Montana today
Culture – Rosia Montana today 47
Slide 48: Culture – Rosia Montana today
Culture – Rosia Montana today 48
Slide 49: 200 Years of Mining
200 Years of Mining The Historic Centre and Protected Areas The Regional Settlement Plan for the historic centre (PUZ-CP) is an attempt to contour the most valuable features of the historic environment of 137ha. The protected area includes 317 buildings, 3 artificial lakes, the old village centre, t
Slide 50: Mining Museum
Mining Museum The First House Fully Restored The house is situated in the protected area of Rosia Montana’s historic centre The building is part of a group of 9 houses situated in the central square of Rosia Montana, all proposed to be organised in a mining museum complex 50
Slide 51: Mining Museum
Mining Museum 51
Slide 52: Central Piazza
Central Piazza 52
Slide 53: Recea Resettlement Community
Recea Resettlement Community 53
Slide 54: Community
Community ‘Good Neighbourhood’ programme; providing assistance to the elderly and persons living in isolated areas on the periphery of the community, coordinated by the local NGO ProRosia. RMGC has provided voluntary transport for doctor’s visits, clearing away snow, food deliveries, medical assista
Slide 55: Community
Community Referendum Highlights: Local referendum requested October 2012 by 35 Apuseni Mountains Mayors representing the Apuseni Mountains region of Alba County, location of the Project Ballot question: “Do you agree with the resumption of mining in the Apuseni Mountain region and specifically at th
Slide 56: Economic Development
Economic Development RMGC currently employs approx. 500 people directly (more also indirectly), with some 85% employed from the local community around the Project Average employment at RMP estimated at 2,300 in construction and 900 in operation More than 600 local firms are existing suppliers/contra
Slide 57: A Model Mine for Europe
A Model Mine for Europe Long-term sustainability is at the core of the Project with multiple commitments to the environmental and social welfare of the local and regional communities Gabriel and RMGC committed to: include transparency, accountability and integrity in all aspects of the Gabriel and R
Slide 58: A Model Mine for Europe Continued
A Model Mine for Europe Continued prevent, or otherwise minimise, mitigate and remediate any negative effects of the project on the environment, such as net positive impact on biodiversity and carbon neutral; continually seek to improve our environmental performance beyond legal requirements; implem
Slide 59: 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 59
Slide 60: 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 61: ANNEXES
ANNEXES 61
Slide 62: 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 (646) 562-1344 Cowen Securities Adam Graf
Slide 63: 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 64: 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 65: Project – Geology
Project — Geology S GARRIEL PRejeten J Mini aE ROSIA MONTANA PROJECT SURFACE GEOLOGY Post-mineralization Vent Breccia (with magnetic anomaly) orem Marine sediments ‘Undifferentiated Conglomerate STRUCTURE Faults ‘STERIDO70 Grid System 65
Slide 66: Project Geology – Cetate and Carnic Cross Section
Project Geology– Cetate and Carnic Cross Section W E Cetate Cirnic Andesite Black Breccia Dacite Marine Sediments Tuffaceous Vent Breccia Polymictic breccia 66
Slide 67: 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 68: 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 69: 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 70: 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 71: 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 72: Key People at Gabriel Resources
Key People at Gabriel Resources Keith R Hulley Jonathan Henry Dr. Alfred Gusenbauer 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 Alfred Gusenbauer is the former
Slide 73: 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 74: 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