Lundin Gold Inc. · TSX:LUG
Lundin Gold — Investor Presentation (September 2015)
25 slides from Lundin Gold's investor presentation, September 2015
Slide 1: Investor Update
Creating A Leading High Grade Gold Company Investor Update September, 2015
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements Certain information contained in this presentation, including any information relating to the Fruta del Norte Project, and any other statements regarding Lundin Gold’s future expectations, beliefs, goals or prospects constitute forward-looking information withi
Slide 3: Lundin Gold
Lundin Gold ► Vancouver and Quito-based ► Listed on TSX and Nasdaq Stockholm under the trading symbol “LUG” ► Acquired the Fruta del Norte (FDN) project in December 2014 ► Focusing on developing FDN in a manner that is safe for all employees, respects the environment and is beneficial to local commu
Slide 4: Fruta del Norte
Fruta del Norte ► FDN is among the largest and highest grade undeveloped gold projects in the world 7.26 million oz (23.5 million t at 9.59 g/t Au) Indicated and 2.55 million oz (14.5 million t at 5.46 g/t Au) Inferred Substantial potential to expand existing resource ► FDN can move quickly thro
Slide 5: Ecuador: Creating an Attractive Mining Investment Climate
Ecuador: Creating an Attractive Mining Investment Climate ► Ecuador is an OPEC member with considerable oil production, BUT an undeveloped mining sector ► Policy shifting towards increasing foreign investment ► Government/President Correa has plans to encourage investment in the mining sector Wood
Slide 6: FDN: Location
FDN: Location ► Located in southeast Ecuador, bordering Peru ► Nearest city is Loja (~80 km away) 4th largest city in Ecuador University town Population of ~180,000 ► Vehicle access from Loja via a 150 km long paved highway to the town of Los Encuentros 40 km gravel road connects Los Encuent
Slide 7: Mineral Concessions and Surface Rights
Mineral Concessions and Surface Rights ► Land package consists of 36 mining concessions, 100% owned by Lundin Gold’s wholly owned subsidiary Aurelian Ecuador SA FDN Project area of approximately 5,000 ha and other concession area of approximately 81,000 ha La Zarza concession is subject to a 1%
Slide 8: FDN Mineralization
FDN Mineralization ► The orebody is 1,670m along strike x 700m down dip x 150m-300m wide Near surface access and amenable to bulk underground mining Indicated Resource ► Mineralization is characterized by quartz sulphide & carbonate stockwork veining and brecciation over broad widths of 100m-150m
Slide 9: NI 43-101 Mineral Resource
NI 43-101 Mineral Resource ► Current Technical Report confirms high grades and scale; Indicated category accounts for ~74% ► FDN Technical Report resource estimate (October 2014): Category Tonnage Gold Grade Silver Grade Gold Contained Silver Contained (mmt) (g/t) (g/t) (mmoz) (mmoz) Indicated 23.5
Slide 10: High Grade Gold Development Projects
High Grade Gold Development Projects ► FDN is among the largest and highest grade undeveloped gold projects in the world Note: Projects shown are in the ramp-up, pre-production, development, or reserve definition phases M&I refers to Measured and Indicated Resources. The M&I Gold Resource (mmoz Au)
Slide 11: Feasibility Study Work Program
Feasibility Study Work Program ► Field work substantially completed 12,000 m drilling and pitting program to support mine and civils engineering Environmental baseline work ► Strong Feasibility Study engineering team in-house and utilizing AMEC FW, Santiago – lead consultant and metallurgy, pr
Slide 12: Mining Engineering
Mining Engineering ► Mine design envisages production of 3,500 tonnes per day ► 2015 field work program has provided additional mine geotechnical and hydro- geological data for enhanced mine design ► Optimized mine design and production plan under development ► Work required to update capital cost e
Slide 13: Process
Process ► Plant flow-sheet defined – to be optimized as confirmatory metallurgical testwork is completed in Q4 2015 – SGS Santiago 13
Slide 14: Process
Process ► Plant layouts and engineering well advanced (3D drafting) ► Preliminary equipment sizing underway and equipment manufacturers engaged to determine supply options and potential equipment standardization 14
Slide 15: Environmental
Environmental ► Baseline studies completed ► Mine EIA approved and license received in Q1 2015 ► Amendment of EIA to include plant and associated infrastructure to be submitted to the MoE ► Socio-economic evaluation for the transmission line options completed and baseline studies initiated in Q4 ► B
Slide 16: Plant and mine infrastructure map
772,000 mE 773,000 mE 774,000 mE 775,000 mE 776,000 mE 777,000 mE z Nw 000 989°6 Nw 000'89'6 so 8 3 s 2 Infraestructura de planta y mina (Cuerpo mineralizado FON — Accesos 4. campamento las Penias 9,582,000 mN Nui 000'289'6 772,000 ME 773,000 mE 775,000 ME 776,000 mE. 777,000 mE © 178,000 ME
Slide 17: Feasibility Study – Infrastructure
Feasibility Study – Infrastructure ► Power supply options assessment complete ► Site-wide water management plan well advanced ► Site access road fully permitted – detailed design underway ► Logistics study underway – mine construction, operations and product export Roads, Surrounding Infrastructure
Slide 18: Government & Financing Initiatives
Government & Financing Initiatives ► In order to obtain an exploitation permit an Exploitation Agreement and Investment Protection Agreement are required Exploitation Agreement – Defines fiscal terms (royalty, tax, calculation methodology), established mining rights and title to concession, as wel
Slide 19: Estimated Project Schedule
Estimated Project Schedule ► Production anticipated by Q3/4 2019; the below outlines the expected work plan until that period 2015 2016 2017 2018 2019 Task Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Field Program & Testwork Government Negotiations Finalization of EA Terms Environmen
Slide 20: Community Relations
Community Relations ► Lundin Gold’s community investment vision is to create shared value for host communities and in coordination with local and national government ► The Company is focused on jointly-identified priorities that align with established community development plans ► The Company seeks
Slide 21: Significant Exploration Upside
Sachavaca Significant Exploration FDN Upside Bonza Las Peñas ► Defining controlling structures and Los Castillos framework at FDN Las Arenas ► Review potential on adjacent concessions (“drill-ready targets”) Rio Blanco ► Geophysical (IP) programs are underway ► Optimize and prioritize drilling targe
Slide 22: Strong Management Team
Strong Management Team A Board and management team with proven track records in feasibility studies, sustainability, financing and project construction Board of Directors Management Lukas Lundin, Chairman Chester See, CFO Ron Hochstein, President and CEO Tony George, VP Project Development Jim Cambo
Slide 23: Analyst Coverage
Analyst Coverage ► Covered by seven analysts Rating Modeling LoM Avg. Au Cash Target Price Production Mine Life Cost AISC NAV Broker Date (CAD) Rating CAPEX ($M) (koz) (years) ($/oz) ($/oz) ($M) BMO 19-Aug-15 $5.00 Buy $800 321 10 $543 n/a $1,000 GMP 26-Mar-15 $6.75 Buy $745 360 13 $431 $513 $1,350
Slide 24: Why Lundin Gold?
Why Lundin Gold? ► FDN is among the largest and highest grade undeveloped gold projects in the world, with a resource that can support a large scale gold producer ► Improving political and taxation regime in Ecuador; expected to enhance long- term project economics ► FDN is a robust project benefiti
Slide 25: Head Office Lundin Gold Inc.
Head Office Corporate Office Lundin Gold Inc. Aurelian Ecuador SA Suite 2000, 885 West Georgia Street Av. Amazonas N37-29 y UNP Vancouver, B.C., Canada V6C 3E8 Edificio Eurocenter, Piso 5 +1 (604) 689-7842 Quito, Ecuador +593 (2) 299-6400 www.lundingold.com TSX and Nasdaq Stockholm: LUG 25