Perpetua Resources Corp. · TSX:PPTA
Perpetua Resources — Midas Gold — Investor Presentation (September 2019)
44 slides from Perpetua Resources's investor presentation, September 2019
Slide 1: Stibnite Gold Project
1 STIBNITE GOLD PROJECT Idaho, USA MAX.TSX MDRPF.OTCQX “We can take an area abandoned after 100 years of mining and use a sustainable approach to restore the environment and develop a modern mining industry.” September 2019
Slide 2: Forward Looking Statements
2 FORWARD LOOKING STATEMENTS 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 legislation and the United States
Slide 3: Doing business the right way
3 We are driven by the belief that building a strong and successful business for our employees, partners and shareholders starts with doing business the right way. For a modern mining company, this means we designed a mining project that restores the environment, creates opportunity and benefits the
Slide 4: Highlights
4 HIGHLIGHTS Midas Gold & the Stibnite Gold Project World Class Gold Project (1,2) Strength & Support • IPO in 2011 with sole focus on advancing the Stibnite Gold Project, • Community Support › Strong local and state support Idaho, USA • Key investors › Paulson, Barrick, Franco-Nevada and Teck • ~US
Slide 5: Capital Structure
5 Shares Outstanding (at June 30/19) 270.5 million ANALYST COVERAGE Haywood Securities Geordie Mark 604.697.6112 Options 19.1 million PI Financial Chris Thompson 604.718.7544 Warrants 2.0 million Cormark Tyron Breytenbach 416.943.6407 Convertible Notes 140.9 million Paradigm Don Blyth 416.361.9892 F
Slide 6: Stibnite Gold Project
6 STIBNITE GOLD PROJECT
Slide 7: Idaho: the right place
7 IDAHO Lucky Friday Mine Coeur d’Alene Hecla Mining Company Sunshine Mine Galena Complex Sunshine Silver Mines Americas Silver Idaho: the right place Stibnite Gold Project Midas Gold Au-Sb Beartrack Mine McCall Revival Gold Cascade Idaho Cobalt Project • A mining friendly state – #5 Ranked Mining J
Slide 8: Preliminary Feasibility Study (PFS)
8 Payable Gold Production Payable Antimony Production Average Annual Production Total Production (millions lbs) Average Annual Production Total Production 388,000 Years 1-4 14.0 1,551,000 Years 1-4 Preliminary 56.0 337,000 Feasibility Study 8.3 99.9 LOM LOM 4,040,000 (PFS)* Capital Costs (US$ millio
Slide 9: One of the largest, best grade gold projects in the USA
9 ONE OF THE LARGEST, BEST GRADE GOLD PROJECTS in the USA Donlin 2018 Production 000s oz Gold LARGEST US GOLD RESERVES Barrick Nevada Newmont Nevada LARGEST US GOLD MINES Newmont Nevada Barrick Nevada Stibnite Gold (Yrs 1-4)* 3rd largest years 1-4 P&P 000s oz Gold Hycroft Round Mountain Turquoise Ri
Slide 10: All-In Sustaining Costs
10 ALL-IN SUSTAINING COSTS Lowest Quartile Project, based on 2014 PFS* Cash Cost Summary* LOM Yrs 1-4 US$/oz US$/oz 2017 Gold AISC Cost Curve Mining $222 $222 Processing $354 $312 $2,500 G&A $77 $67 By-Product Credits -$85 -$118 $2,000 Cash Cost Net By Products $568 $483 All-In Sustaining Cost (US$/
Slide 11: Stibnite Gold Project: A Rare Commodity
11 STIBNITE GOLD PROJECT: A RARE COMMODITY From the Fraser Institute Annual Survey of Mining companies: 10 An overall Investment Attractiveness Index is constructed by combining the Best Practices Mineral 9 Potential index, which rates regions based on their (bubble size = combined production) Austr
Slide 12: Value Opportunities
12 VALUE OPPORTUNITIES
Slide 13: Leverage to gold price
13 NPV Sensitivities (US$) US$1,200/oz Au(1) US$1,350/oz Au(2) US$1,500/oz Au(3) Project NPV @ 5% discount (after tax) $513M $832M $1,129M (1) PFS Case A: $1,200/oz Au, $20/oz Ag, $4.00/lb Sb (2) PFS Case B (Base Case): $1,350/oz Au, $22.50/oz Ag, $4.50/lb Sb (3) PFS Case C: $1,500/oz Au, $25/oz Ag,
Slide 14: Filling the Void
14 FILLING THE VOID Gold Producer Landscape 700 Detour 600 The Midas Gold Advantage 2019 Production Guidance (000oz Au Eq) OceanaGold Alamos The Stibnite Gold Project is one of the 500 only large-scale gold projects in Eldorado SSR Pretium advanced development. 400 Stibnite Permitting, Midas Gold* C
Slide 15: Strategic By-Products - Antimony
15 Strategic By-Products - ANTIMONY Effectiveness of antimony flame retardant (left coverall) Supply Risk China dominates the world antimony supply and there is no domestic antimony or tungsten production in the United States. The U.S. is reliant on China for the majority of its antimony and tungste
Slide 16: Shrinking universe of quality gold developers
16 Lack of publicly listed intermediate producers* and Acquired by Acquired by New Gold, Acquired by Kinross, quality development assets stem from a decade of Agnico, C$513M C$1.2B Acquired by New Gold, C$570M C$3100M M&A and corporate activity by the senior gold production companies seeking growth.
Slide 17: Processing
17 PROCESSING SIMPLIFIED FLOW SHEET (PFS2) Jaw Crusher SAG Mill Ball Mill Robust gold & antimony High Sb Sulphides (~14%) recovery Low Sb Sulphides Antimony Antimony Concentrate Flotation (~72%) PILOT TESTING COMPLETED1 • Higher gold (1-2%) and antimony (4-5%) recoveries Tailings Gold Flotation (~14
Slide 18: Opportunities
18 OPPORTUNITIES Mineral resources not in PFS1 mine plan YELLOW PINE HANGAR FLATS 889k oz Au @ 1.7g/t Au in indicated mineral resources1 between reserve pit and resource pit. 714k oz Au @1.5 g/t Au in inferred mineral resources1 between reserve pit and resource pit 1 The PFS is intended to be read a
Slide 19: World Class Mineral Resources & Reserves
Yellow Pine Hangar Flats 19 World Class Mineral 0.15 Moz 1.18 g/t Au 0.38 Moz 2.53 g/t Au 0.34 Moz Resources & Reserves * ** 0.76% Sb 0.25% Sb 1.37 g/t Au 0.12% Sb 1.08 Moz 2.5 Moz 1.71 g/t Au 1.99 g/t Au 0.20% Sb 0.10% Sb Indicated Inferred Measured Indicated Inferred Probable Reserves*: Probable R
Slide 20: Exploration potential
20 Existing Deposits: • Resource to reserve conversion • Resource/reserve expansion immediately adjacent to pits • In pit unclassified materials Priority Prospects: • Small tonnage, high grade e.g. Garnet, Scout, Upper Midnight • Bulk tonnage e.g. Cinnamid-Ridgetop, Saddle-Fern, Rabbit • Undefined a
Slide 21: Exploration Upside
21 EXPLORATION UPSIDE High-grade exploration targets EXPLORATION POTENTIAL HIGH GRADE AROUND THE PFS PITS UNDERGROUND PROSPECTS NE Yellow Pine, including intercepts of: Garnet conceptual underground YELLOW PINE • 162ft @ 5.4g/t Au target with 95 holes completed: • 45ft @ 5.9g/t Au • 1-2m ton range c
Slide 22: Industry Can Repair the Environment
22 INDUSTRY CAN REPAIR THE ENVIRONMENT + ECONOMY ENVIRONMENT Invest $1 billion in Idaho Reprocess historical tailings Provide well-paid jobs to Idahoans Restore fish passage Grow economic opportunity with Repair historically impacted waterways an estimated $43 million in direct Remediate areas contr
Slide 23: Historic Mining District
HISTORIC MINING DISTRICT Wanted Immediately MINERS » MUGKERS YELLOW PINE MINE BRADLEY MINING CO. 'STIBNITE, IDAHO Be wucrer, JZe Syou 4G
Slide 24: Stibnite: Restoring the site
24 Stibnite: >$1 billion to be invested in Idaho Restoring the site An economically feasible, socially & environmentally sound project that will finance restoration at an existing ~1,000 well paid jobs brownfields site. • Re-establish fish passage in the upper watershed 20-year project, including co
Slide 25: Stibnite's Legacy
25 EXAMPLE: FISH PASSAGE BLOCKED SINCE 1938 MIDAS GOLD WOULD RESTORE FISH PASSAGE Stibnite’s Legacy Brownfields site & restoration opportunity
Slide 26: Industry & Environment Working Together
26 INDUSTRY & ENVIRONMENT WORKING TOGETHER EXISTING CONDITIONS THROUGH YEAR 1 YEAR 3 THROUGH YEAR 7 YEAR 8 THROUGH YEAR 50
Slide 27: Social License
27 SOCIAL LICENSE
Slide 28: Government Support
28 GOVERNMENT SUPPORT Joint Memorial (Feb. 22/2018) Idaho’s House of Representatives and Senate passed, with overwhelming support, a joint memorial asking the President of the United States, Idaho’s congressional delegation, the Administrator of the EPA, the Secretary of the Interior and the Secreta
Slide 29: Public Support
29 PUBLIC SUPPORT Midas Gold Idaho, Valley and Adams County Public Opinion Survey, October 2017 Favor or Oppose Which comes closest to your opinion? Global trade is important to the Idaho should lead the way by Restarting Operations at the Stibnite American economy and it is mining for precious meta
Slide 30: Sustainability 2018
30 SUSTAINABILITY 2018 Living our values, every day. ENVIRONMENTAL RESPONSIBILITY. COMMUNITY INVOLVEMENT. TRANSPARENCY. ACCOUNTABILITY. SAFETY AND PERFORMANCE.
Slide 31: Community Agreements
31 GOAL: Commit Midas Gold now and into the future to regular communication and coordination with local communities. HOW: Community Advisory Council shall meet to get Yellow Pine regular updates from Midas Gold and discuss topics of Cascade interest. Donnelly GOAL: Encourage communities to be knowle
Slide 32: Permitting
32 PERMITTING
Slide 33: Stibnite Joint Review Process
33 National Environmental Policy Act (NEPA) and Stibnite Joint Review Process (Sept. 2017) Stibnite Federal Permits and Authorizations State Permits Local Permits Joint Review Process USFS: IDEQ: • Planning and Zoning - Conditional • NEPA EIS - Record of Decision on • Air Quality Use Permit the Plan
Slide 34: Project Timeline
34 PROJECT TIMELINE * Permitting, feasibility & social license 100+ years 7 years 4 years ~3 years 12 + years Mining by previous Exploration, Permitting Restoration & Operations, continued Reclamation operators: resource/reserve construction restoration and concurrent and closure 1 million oz gold d
Slide 35: Path Forward
35 PATH FORWARD Regulatory Process Underway Feasibility Study Underway Environmental baseline data collected to support EIS PFS and post-PFS optimization completed Project extensively discussed with local Metallurgical optimization test work completed communities and stakeholders Resource
Slide 36: Additional Info
36 ADDITIONAL INFO
Slide 37: Experienced Management
37 EXPERIENCED MANAGEMENT We’ve done it before! Darren Morgans Michael Bogert Stephen Quin Alan Haslam Laurel Sayer President & CEO (MGC) President & CEO (MGII) General Counsel CFO VP Permitting Ex-COO Capstone Mining, ex-CEO Former Ex.Dir. of Idaho Coalition of Lan Attorney, formerly with Parsons,
Slide 38: Boards of Directors
38 BOARDS OF DIRECTORS Proven track record, local interests MIDAS GOLD CORP. Jaimie Donovan Javier Schiffrin Donald Young Stephen Quin Marcelo Kim Brad Doores Keith Allred Peter Nixon Chair & Director Director Director Director Director Director & CEO Director Director Ex-Goepel, director of Exec. D
Slide 39: Mineral Resources
39 ( 2018 MINERAL in metric units, except oz; RESOURCES at US$1,050/oz Au, see Feb. 15/18 news release) Metric Tonnes Gold Grade Contained Gold Silver Grade Contained Silver Antimony Grade Contained Antimony Classification (000s) (g/t) (000s oz) (g/t) (000s oz) (%) (000s lbs) Measured: Yellow Pine 4
Slide 40: 2014 PFS Mineral Reserves
40 2014 PFS MINERAL RESERVES (in imperial units) Average Contained Grade Total Contained Metal Deposit Tonnage Gold Antimony Silver Gold Antimony Silver Imperial Units (000s tons) (oz/ton) (%) (oz/ton) (000s oz) (000s lbs) (000s oz) Yellow Pine 43,985 0.057 0.098 0.090 2,521 86,376 3,973 Hangar Flat
Slide 41: After Tax Cash Flow (PFS base case)
41 AFTER TAX CASH FLOW (PFS* base case) At US$1,350/oz gold $600 $1,600 $1.5 billion in cash flow (after tax) Cumulative After Tax Cash Flow ($ millions) $450 $1,200 01 › $294 million/year Years 1-4 $300 $800 › $254 million/year Years 1-8 After Tax Cash Flow ($ millions) $150 $400 Payback in 3.4 yea
Slide 42: Capital & Operating Cost Estimates
42 CAPITAL & OPERATING COST December 2014 PFS* ESTIMATES Capital Cost Estimate* *The PFS 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
Slide 43: Regulatory Information
43 REGULATORY INFORMATION Compliance with NI 43-101 The technical information in this presentation (the “Technical Information”) has been approved by Stephen P. Quin, P. Geo., President & CEO of Midas Gold Corp. (together with its subsidiaries, “Midas Gold”) and a Qualified Person. Midas Gold’s expl
Slide 44: Thank You
44 www.midasgoldcorp.com Tel: 778.724.4700 facebook.com/midasgoldidaho E-mail: info@midasgoldcorp.Com Twitter.com/midasidaho Suite 890 – 999 West Hastings Street Vancouver, BC CANADA V6C 2W2 THANK YOU MAX.TSX www.supportstibnite.com MDRPF.OTCQX