Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Investor Presentation (May 2017)
39 slides from Torex Gold Resources's investor presentation, May 2017
Slide 1: +370,000 Au Oz. / Year of High Margin Production with a Growth Project of Similar Quality
TSX: TXG May 2017 +370,000 Au Oz. / Year of High Margin Production with a Growth Project of Similar Quality
Slide 2: Safe Harbour Statement
Safe Harbour Statement THE PRELIMINARY ECONOMIC ASSESSMENT (THE ‘MEDIA LUNA PEA” OR “PEA”) IS BASED ON THE TECHNICAL REPORT (DEFINED BELOW). THE PEA IS A CONCEPTUAL STUDY OF THE POTENTIAL VIABILITY OF MINERAL RESOURCES OF THE MEDIA LUNA PROJECT. THE PEA IS NOT A PREFEASIBILITY STUDY OR FEASIBILITY S
Slide 3: Torex – The Investment Thesis
Torex – The Investment Thesis Focussed exposure to a large, high margin, gold asset… EL LIMON – GUAJES MINE (ELG) (1) (2) +370,000 oz./yr. for 8.5 years, from 2015 reserves of 3.63M Au oz. High grade, 2.6 g/t open pit, LOM AISC of $616/oz. Recent discovery of the near mine high grade Sub-Sill deposi
Slide 4: Balance Sheet
Balance Sheet ELG was financed with equity and project debt… Cash position at end of Q1/17 Project financing: $108.5 million1 $300M @ LIBOR + 4.75% $75M @ LIBOR + 5.75% Shares outstanding Cash accumulates at the project level 79 million until a ‘90 day full production completion Market Cap, May 5, 2
Slide 5: The ELG Operations Started Ramping up in 2016, the De-Bottlenecking Process is Accelerating
The ELG Operations Started Ramping up in 2016, the De- Bottlenecking Process is Accelerating and on Track Poured 279,937 ounces of gold in 2016, and… Average tonnes processed per day and throughput rate Throughtput (%) Tonnes per day (dtpd) 91% 100% 14,000 80% 90% 75% 12,000 80% 69% 70% 10,000 60% 8
Slide 6: Operating Results
Operating Results Cash flow positive, operations are ramping up… 2016 Q1-2017 2017E GOLD PRODUCTION (oz) 279,937 70,887 350,000 - 380,000 HEAD GRADE (g/t) 3.25 2.49 - TOTAL CASH COST ($/oz) 543 671 525 – 575 AISC ($/oz) 733 923 775 – 825 OPERATING CFPS (cents/share) 2.12 0.25 - Q4 9.2K Q1 10.5K 2016
Slide 7: Cash Flow was Managed Through the Early Ramp-Up by Producing from Higher than LOM Average Grades
Cash Flow was Managed Through the Early Ramp-Up by Producing from Higher than LOM Average Grades In 2017 the grades come back to LOM average, grade and… …tonnage variability in the skarn deposit has been manageable (1) The above information is to the end of Q1/2017 7
Slide 8: With Throughput Rates Tracking toward Design Levels, the Focus is Shifting to Process Optimization
With Throughput Rates Tracking toward Design Levels, the Focus is Shifting to Process Optimization A SART Plant to recycle reagents, is under construction, and… SART Plant to address soluble copper in the process: Cost $25 - $28 million Payback: 12-18 months Expected savings on reagents: $100/oz Exp
Slide 9: A Beautiful Asset and a Tested Management Team
A Beautiful Asset and a Tested Management Team Proven ability to navigate the technical, commercial,… FRED STANFORD PEng DAWSON PROUDFOOT PEng CEO V.P. Engineering 35 years of experience, primarily in operations at 30 years of experience in engineering and Inco / Vale. Retired from Vale as President
Slide 10: A Board with Strong Strategic and Governance Experience
A Board with Strong Strategic and Governance Experience Deep experience gained as industry professionals… TERRY MACGIBBON PGeo, ICD DAVID FENNEL LLB Board Chair 30 years experience as a director and senior executive with TSX and TSXV listed companies. 45 years of mining industry experience. Founder,
Slide 11: The Foundation of Value - a High Quality Property in the Middle of the Guerrero Gold Belt
The Foundation of Value - a High Quality Property in the Middle of the Guerrero Gold Belt A 29,000 Ha land package that is less than 25% explored... ...has already delivered ELG , the ML Project, and the Sub-Sill 11
Slide 12: 'Purple' on our Property Map Indicates High Magnetism, a Good Indicator of Gold Mineralization
‘Purple’ on our Property Map Indicates High Magnetism, which has been a Good Indicator of Gold Mineralization Most of the magnetic targets have yet to be explored… We believe that a porphyry ‘fed’ the current deposits. That ‘feeder’ system has yet to be found …’first hole’ success in ML and Sub-Sill
Slide 13: To Complement ELG, Sub-Sill Adds a Near Term Opportunity
To Complement ELG, Sub-Sill Adds a Near Term Opportunity to Deliver Tonnes of +7.5 g/t Au to the Processing Plant (1) The prospective area for the Sub-Sill goes right across the ridge… …the high mag zone is untested and will be drilled soon 13 (1) See Sub-Sill underground mineral resource extimate o
Slide 14: Near Term is Very Near Term for the Sub-Sill, the Access Ramp is on Track
Near Term is Very Near Term for the Sub-Sill, the Access Ramp is on Track to Intercept the Deposit by Mid-Year The El Limon Deep zone (ELD) attracts less attention, but at… …5 g/t, (1) with potential to grow, it is also very attractive 14 (1) Included in the El Limon-Guajes Mineral Resources, see sl
Slide 15: The Prospective Area for Potential Sub-Sill Expansion is Larger than the Current Resource Area
The Prospective Area for Potential Sub-Sill Expansion is 45 Times Larger than the Current Resource Area A 15,000m in-fill / step-out drill program is underway for Sub-Sill… Exploration Program Objectives • Infill - To test 1 million tonnes of inferred resources for potential to upgrade to the indica
Slide 16: The Sub-Sill is Well Worth the Effort to Expand
The Sub-Sill is Well Worth the Effort to Expand, There are 350kt in the Sub-Sill Resource with a Grade of +16 g/t (1) Where possible, the mine design efforts will seek to… Table 1.2 Sub-Sill Indicated Resource sensitivity to cut-off grade (base case highlighted) Sub-Sill Indicated Resource Contained
Slide 17: With ELG, we were Technically Innovative to Control Costs and Risks
With ELG, we were Technically Innovative to Control Costs and Risks. This will Continue with Media Luna & Sub-Sill Filtered tails means no risk of tailings dam failures, the RopeCon… ...generates electricity and delivers negative ore transport costs 17
Slide 18: The Media Luna PEA Mine Design was Already Elegant and Innovative
The Media Luna PEA Mine Design was Already Elegant and Innovative, Ongoing Work has Advanced it Further Potential to double the ounces produced through the ELG... Resources have been estimated for 1/3 of the associated magnetic anomaly (1) PEA Capex - $482M Cash cost: $571 / Au Eq. Oz. AISC: $636 /
Slide 19: ELG And Media Luna are Both 'Company Building Assets'
ELG And Media Luna are Both ‘Company Building Assets’, Paired Together they are Truly Impressive ‘Gold’ bars – ELG production as per 2015 LOM... (No Sub-Sill) The Media Luna PEA is preliminary in nature, and is based on inferred mineral resources that are considered too speculative geologically to h
Slide 20: Social Innovation Leverages the Technical Innovation to Increase Output, Reduce Risk
Social Innovation Leverages the Technical Innovation to Increase Output, Reduce Risk, and Build Social Licence An operating strategy that moves past the technical processes… An external stakeholder experience of the company that leads to the stakeholders wanting to see the company succeed A workplac
Slide 21: Technical and Social Innovation has set the Stage for Commercial Success
Technical and Social Innovation has set the Stage for Commercial Success in the Challenges of Guerrero State The management team has consistently… Social complexities – For 6+ years we have consistently sought to act in a manner that was received in the local culture as – Honest, Trustworthy, Fair,
Slide 22: Torex – The Investment Thesis Re-Visited
Torex – The Investment Thesis Re-Visited Focussed exposure to a large, high margin, gold asset… EL LIMON – GUAJES MINE (ELG) (1) (2) +370,000 oz./yr. for 8.5 years, from 2015 reserves of 3.63M Au oz. High grade, 2.6 g/t open pit, LOM AISC of $616/oz. Recent discovery of the near mine high grade Sub-
Slide 23: Standing on the El Limon Crusher, Looking Down the Path of the RopeCon
Standing on the El Limon Crusher, Looking Down the Path of the RopeCon, the Plant, Nuevo Balsas Village, and the Caracol Reservoir in the Background 23
Slide 24: El Limon Crusher and Top End of the RopeCon
El Limon Crusher and Top End of the RopeCon 24
Slide 25: The Dome is now Completed over the Fine Ore Stockpile
The Dome is now Completed over the Fine Ore Stockpile 25
Slide 26: Ball Mill and SAG Mill
Mill Ball Mill and SAG + tt a ell a) nN Sa iii
Slide 27: Tailings Filters
fa i 7 | 5 | Le UL ig —— h ! ! | _— , apni lt wl 27
Slide 28: Mining at Guajes
Mining at Guajes ey ee
Slide 29: El Limon Mining – Drilling Off The Next Bench
El Limon Mining – Drilling Off The Next Bench 29
Slide 30: Constructing the Road From El Limon Pit to the El Limon Crusher
Constructing the Road From El Limon Pit to the El Limon Crusher (Now Completed) 30
Slide 31: Weekly Community Tours To ELG and El Limon New Village Resettlement
On the Left, One Of The Weekly Community Tours To ELG On The Right, El Limon New Village Resettlement 31
Slide 32: Addendum
Torex’Gold RESOURCES INC. Addendum
Slide 33: El Limon Guajes Resources
El Limon Guajes Resources Mineral Resources Estimate – End of Year 2016 – El Limón and Guajes Open Pit Tonnes (Mt) Au Grade (g/t) Ag Grade (g/t) Contained Au (Moz) Contained Ag (Moz) El Limon (inc. El Limon Sur) Measured 6.64 2.82 4.06 0.60 0.87 Indicated 23.95 2.78 5.42 2.14 4.18 Measured and Indic
Slide 34: Sub-Sill Underground Resource
Sub-Sill Underground Resource Sub-Sill Underground Mineral Resource Estimate – Effective February 24, 2017 Tonnes Au Grade Ag Grade Cu Grade Contained Au Contained Ag (Mt) (g/t) (g/t) (%) (oz) (oz) Sub-Sill Indicated 0.35 7.82 6.25 0.27 89,000 71,000 Inferred 1.33 7.58 11.46 0.60 324,000 490,000 Not
Slide 35: El Limón Guajes Reserves
El Limón Guajes Reserves Mineral Reserve Estimate – End of Year 2016 – El Limón and Guajes Open Pit Tonnes (Mt) Au Grade (g/t) Ag Grade (g/t) Contained Au (Moz) Contained Ag (Moz) El Limon (inc. El Limon Sur) Proven 6.3 2.65 3.49 0.5 0.7 Probable 20.2 2.61 4.58 1.7 3.0 Proven and Probable 26.5 2.62
Slide 36: Media Luna Deposit Inferred Mineral Resource Estimate
Media Luna Deposit Inferred Mineral Resource Estimate at a 2.0 g/t Au Eq. Cut-off Grade. Resource Tonnes Gold Eq. Contained Gold Contained Silver Contained Copper Contained Deposit Category (Mt) Grade Gold Eq. Grade Gold Grade Silver Grade Copper g/t (Moz) (g/t) (Moz) g/t (Moz) % (Mlb) Media Luna In
Slide 37: By Mid-Year the Access Ramp will be close to the Highest Grade Intercept
By Mid-Year the Access Ramp will be close to the Highest Grade Intercept in the Initial Exploration Program (1) The next exploration program will aid in mine design and… Ramp …answer intriguing questions on potential resource expansion (1) See Company’s news releases dated January 5, 2017 and Februa
Slide 38: The Ramp is Advancing Approximately 4 Meters per Day
The Ramp is Advancing Approximately 4 Meters per Day Pictures on the left show good ground conditions in the ramp… …on the right, core from above, and in the mineralized zone 38
Slide 39: For further information: Gabriela Sanchez, VP Investor Relations
For further information: Gabriela Sanchez, VP Investor Relations email: gabriela.sanchez@torexgold.com - Mobile: (416) 357-6673 - www.torexgold.com
Torex Gold Resources — Investor Presentation (May 2017) on 6ix