Veris Gold — Investor Presentation (October 2012)
26 slides from Veris Gold's investor presentation, October 2012
Slide 1: Back in Sustainable Production
Back in Sustainable Production www.verisgold.com October 2012
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains “forward-looking statements” within the meaning of applicable Canadian securities regulations and Section 21E of the United States Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements othe
Slide 3: VGC Properties
VGC Properties Jerritt Canyon - historical production of Nevada approximately 8 million oz gold since 1981 100% owned. Permitted and Producing. Current Reserve & Resource includes: 374,800 oz Proven, 686,000 oz Probable, 1.03M oz Measured & 1.29M oz Indicated. Fully permitted mill capacity
Slide 4: Jerritt Canyon Roasting Facility is a Valuable Strategic Asset
Jerritt Canyon Roasting Facility is a Valuable Strategic Asset Currently, Veris Gold has the only permitted and operational roaster with spare capacity in the region. 6,000 tons/day engineered capacity roaster mill (fully permitted and operating), plus 5,000 tons/day engineered capacity wet mill (
Slide 5: Jerritt Canyon Property
Jerritt Canyon Property Jerritt Canyon has historically been a prolific gold producing district 13 open pits & 7 underground mines Murray Mine UG Marlboro Canyon OP SSX Mine UG Mill Site >1 Moz mined* 1.2 Moz mined* North Generator OP Smith Mine UG Burns Basin OP 0.4 Moz mined* 119 sq. miles of cl
Slide 6: Milestones – Past, Present, Future
Milestones – Past, Present, Future $200mm plant and mine refurbishment completed H1 2012. Steady state production achieved - June 2012. Positive cash flow achieved - June 2012. Initiate 1 for 10 share consolidation (roll-back) – achieved October 2012. Additional permitted roaster capacity
Slide 7: Jerritt Canyon: Production, Resource & Costs Overview
Jerritt Canyon: Production, Resource & Costs Overview * Estimates are based on as per April 27, 2012, NI 43-101 Technical Report, Jerritt Canyon Property, Nevada, Jerritt Canyon historic and targeted production* Elko County, USA, and are approximate. Calendar Year Gold Production (ozs) Calendar Year
Slide 8: 2012 Production – Shipped Ounces
2012 Production – Shipped Ounces Au oz per month, 2012 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Actual Targeted www.verisgold.com 8
Slide 9: Production Sources & Targets
Production Sources & Targets Smith SSX Starvation Canyon Stockpile Toll Milling Ounces per month 6000 20000 18000 5000 16000 14000 4000 Toll Milling Ounces per month 12000 Processed TPD Stockpile 3000 10000 Starvation Canyon 8000 2000 SSX 6000 4000 1000 Smith 2000 0 0 Aug-12 Feb-13 Aug-13 Feb-14 Aug
Slide 10: Underground Mining Operations
Underground Mining Operations Smith underground mining restarted Q1/2010. 1,200 tons/day targeted Currently contract mined Consider take back of mining operations in-house SSX/Steer underground mining re-started Q4/2011. 1,200 tons/day targeted In-house mining operation Starvation Ca
Slide 11: Improving Production Costs
Improving Production Costs Newmont ore deal expired December 2011 Historic and projected cash costs – was the biggest factor in rising cash costs for 2009, 2010, 2011. $1,500 Historic Projected $1,300 Started mining SSX/Steer underground Cash Cost ($/oz ) $1,100 mine in-house Q4 2011. Lower cost
Slide 12: Third Party Ore Potential
Third Party Ore Potential Permitted capacity of 6,000 tpd (5,400 tpd factoring in availability). Jerritt underground production of 3,000 tpd from current mines leaving approx. 2,400 tpd for 3rd party ore processing at full permit capacity. Current terms being considered for 3rd party processin
Slide 13: Jerritt Canyon Reserves & Resources
Jerritt Canyon Reserves & Resources Jerritt Canyon Reserves: as of December 31, 2011 (Published on April 27, 2012) PROVEN PROBABLE PROVEN & PROBABLE Tons Grade Gold Tons Grade Gold Tons Grade Gold (Ktons) (oz/st) (K oz) (Ktons) (oz/st) (K oz) (Ktons) (oz/st) (K oz) 1,980.2 0.189 374.8 4,076.7 0.168
Slide 14: Jerritt Canyon Reserves & Resources
Jerritt Canyon Reserves & Resources Updated NI 43-101 filed April 27, 2012. As of December 31, 2011, the ore stockpile contains 802,600 tons averaging 0.072 opt Au for 57,700 oz total - stockpile now being milled along with ore being produced from Smith Mine and SSX/Steer. Consolidated histori
Slide 15: Resource Expansion & Exploration Opportunities
Resource Expansion & Exploration Opportunities Underground and surface exploration planned at both the Smith and SSX/Steer mines to expand resource and reserves organically. Exceptional recent drill results including Mahala Basin validate belief that new resources will be found nearby existing m
Slide 16: Ketza River Project, Yukon Territory
Ketza River Project, Yukon Territory Resources* Tonnage Grade Gold Ownership 100% owned (purchased in 1997) (K tonnes) (g/t) (koz) Measured 167.8 5.38 29 Location Near Ross River, Yukon Territory Indicated 2,212.3 5.46 389 Measured & Indicated 2,380.1 5.46 418 340-tpd CIL circuit, a camp and Inferre
Slide 17: Management Team
Management Team Randy Reichert Co-Chief Executive Officer 24 years mining industry experience, Oriel Chief Operating Officer Resources, Bema Gold and Teck Corp. Board Director Shaun Heinrichs Co-Chief Executive Officer 15 years accounting experience, beginning with Chief Financial Officer Ernst & Yo
Slide 18: Capital Structure
Capital Structure Share Structure (as of September 30, 2012) Shares Outstanding 99,690,167 Warrants – Total 14,600,474 Weighted Average exercise price of $4.20 Options – Total 6,206,551 Weighted Average exercise price of $3.00 Shares Fully Diluted 120,497,192 Major Shareholders Orifer 19.01% Sprott
Slide 19: Corporate Summation and Catalysts
Corporate Summation and Catalysts Strategic asset in mining friendly Nevada: Desirable roaster capacity in region with prolific refractory ore supplies. Production ramp-up underway (ongoing news flow). Production cost reduction plan in place and underway (ongoing news flow). Resource growth po
Slide 20: Additional Reference Slides
Additional Reference Slides www.verisgold.com 20
Slide 21: Deutsche Bank Gold Facility
Deutsche Bank Gold Facility Since August 2011, two gold forward loans Delivery Schedule (1) Deal Structure with Deutsche Bank (“DB”) have been DB Ounces Maximum VGC Payment Price implemented to raise gross proceeds of Oz in Excess of DB Deliveries DB Portion Initial financing from DB ~$140M USD, w
Slide 22: West Mahala Surface Drilling 2011
West Mahala Surface Drilling 2011 www.verisgold.com 22
Slide 23: Proposed Starvation Canyon Underground Mine Workings
Proposed Starvation Canyon Underground Mine Workings Underground Ore Stopes North 2011 Assay Result Highlights TJ-364 6.10m @ 6.86 g/t Starvation TJ-364a 9.15m @ 7.68 g/t Canyon UG Mine Portal TJ-366 28.97m @ 18.86 g/t TJ-367 7.62m @ 6.31 g/t Ventilation TJ-368 9.15m @ 9.50 g/t Raise 4.57m @ 9.60 g/
Slide 24: Current Ketza River Work
Current Ketza River Work Socio-Economic Participation Agreement signed April 2012. Community and First Nations consultation meetings. Type A water license application for the Mill, truck shop & warehouse Main camp & Office existing tails. buildings 2011 drill program including 4,402m of Tail
Slide 25: Board of Directors
Board of Directors Shaun Heinrichs, BBA, CA, CPA (Illinois) Gerald Ruth Co-CEO, Co-President, CFO and Director Director Randy Reichert, M.Sc. P.Eng. Jay Schnyder, B.A. Co-CEO, Co-President, COO and Director Director Graham C. Dickson, B.Sc. A.R.C.S Jean-Edgar de Trentinian Senior VP Acquisitions & C
Slide 26: Contact Information
Contact Information Veris Gold Corp. Richard Moritz Suite 900 – 688 West Hastings St. Senior Director, Vancouver, BC V6B 1P1 Institutional Investor Relations Canada Email: rmoritz@verisgold.com Tel: +1 (604) 688 9427 Fax: +1 (604) 688 9426 Nicole Sanches www.verisgold.com Investor Relations Manager