Granada Gold Mine Inc. · TSXV:GGM
Granada Gold Mine — Gold Bullion Development — Investor Presentation (October 2016)
31 slides from Granada Gold Mine's investor presentation, Oct 4, 2016
Slide 1: The Granada Gold Property in Rouyn-Noranda, Québec
Corporate Presentation – Focus on Initial “Rolling Start” Phase of Mining – October 4, 2016 THE GRANADA Transforming into a GOLD PROPERTY 100,000 oz/yr Gold Producer IN ROUYN - NORANDA QUÉBEC with Numerous High-grade Exploration Targets www.GoldBullionDevelopmentCorp.com TSX-V GBB OTC PK GBBFF FRANK
Slide 2: Disclaimer – Cautionary Statements
Disclaimer – Cautionary Statements No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Cautionary Note Concerning Forward-Looking Statements. This presentation includes certain “forward-looking statements”. All such sta
Slide 3: Granada Gold Deposit Mineral Resource Estimate
Granada Gold Deposit Mineral Resource Estimate from January 2013 NI 43-101 Technical Report (1) CUT-OFF 0.4 G/T TONNAGE AU G/T AU OZ Measured 28,735,000 1.02 946,000 Indicated 18,740,000 1.09 659,000 Total M+I 47,475,000 1.05 1,605,000 Inferred 29,975,400 1.07 1,033,000 CUT-OFF 1.0 G/T TONNAGE AU G/
Slide 4: Prime Quebec Location on the Prolific Cadillac Trend
Prime Quebec Location on the Prolific Cadillac Trend The Best Mining Area Friendly, safe jurisdiction Easy access, infrastructure 50+ Million Oz Au PRODUCED FROM ROUYN-NORANDA TO VAL-D’OR Highly prospective geology Rouyn-Noranda Complexe Bousquet Au: 14.6 Moz Au: 12.2 Moz Malartic Au: 11.1 Moz Val-d
Slide 5: Granada Gold Property
Granada Gold Property . High-Grade "Rolling Start" Pit Averaging 4.24 g/t Au(1) Extended LONG Bars Zone Est. 5.5 km Strike Length (1) The “Rolling Start” is an initial phase of reduced-scale production to quantify grades and create cash flow to further expand the resource on route to larger –scale p
Slide 6: Granada Mine History and Recent Developments
Granada Mine History and Recent Developments Produced over 50,000 ounces of gold from GBB acquired Granada in 2006 and conducted high-grade quartz veins mining between 1930 bulk samples and exploration (~90,000 metres and 1935 before fire destroyed the surface drilling) structures Resource estimates
Slide 7: Granada Gold NI 43-101 Mine Plans
Granada Gold NI 43-101 Mine Plans On track to achieve production goal of 100,000 oz/yr gold within 3-5 years 2014 Plan: Initial-phase, open-pit, 2012 Plan: Open-pit and selective high-grade mining – as Underground mining – as per PEA(2) per PFS(1) • 100,000 oz/yr gold production for 11 years mining
Slide 8: Granada Mine Schematic Cross-Section through the LONG Bars Zone
Granada Mine Schematic Cross-Section through the LONG Bars Zone looking West TSX-V GBB OTC PK GBBFF FRANKFURT B6D 8
Slide 9: "Rolling Start" Pit – Initial Layout
"Rolling Start" Pit – Initial Layout TSX-V GBB OTC PK GBBFF FRANKFURT B6D
Slide 10: Granada's Initial-Phase "Rolling Start" (2014 PFS)
Granada’s Initial-Phase “Rolling Start” (2014 PFS)(1) Open-pit production for 3 years Capital expenditures of from a high-grade near-surface C$6.7 million deposit in the LONG Bars Zone All-in Sustaining Cost (AISC) of Average grade of US$797/oz (excludes financing costs) 4.24 grams/tonne (g/t) Assum
Slide 11: Resource Estimation Techniques: Targeting High-Grade Areas in 2014 PFS
Resource Estimation Techniques: Targeting High-Grade Areas in 2014 PFS(1) 2013 PEA(2) resource estimates for large open pit (average grade of 1.07 g/t Au) were based on a bulk resource model with mineralized material in blocks of 5m x 10m x 5m In 2014 PFS(1), GBB decided to target higher-grade vein
Slide 12: Economic Analysis – Results of 2014 PFS
Economic Analysis – Results of 2014 PFS* GBB’s PLANNED HIGH-GRADE “Rolling Start” Production Granada (Phase I) 3-Year High-Grade “Rolling Start” - PFS Base Case Highlights * Total Revenue $102,700,000 • Based on proven reserves of CAPEX (Pre-Production) $6,700,000 170,000 tonnes @ 3.72 g/t Au and pr
Slide 13: Current Market Situation Favourable vs. 2014 PFS Assumptions
Current Market Situation Favourable vs. 2014 PFS Assumptions US$ Gold price higher --- Canadian dollar lower --- Fuel costs lower Positive impact on NPV and IRR 2014 PFS SEPT. 23, 2016 CHANGE ASSUMPTIONS* US$ Gold Price US$1,260 US$1,340 +7.0% Canadian Dollar US$1.00 = C$1.11 US$1.00 = C$1.32 -19.0%
Slide 14: Granada's 2014 "Rolling Start" Sensitivity Analysis
Granada’s 2014 “Rolling Start” Sensitivity Analysis(1) This sensitivity analysis table is contained in the PFS(1) and shows that the NPV and IRR for the 25,000-ounce/year mine plan increase significantly as the Can$ gold price increases. The PFS assumption for the gold price was C$1,400/oz (equivale
Slide 15: Next Steps for "Rolling Start"
Next Steps for “Rolling Start” Stripping underway First gold pour when first batch processed Mining of high-grade ore to begin soon (as outlined in the 2014 Revenues from first gold sale PFS)(1) expected soon after First batch delivered by truck to local mill expected Q4 2016 Note: Metallurgical tes
Slide 16: Gold Bullion Key People
Gold Bullion Key People Claude Duplessis, Eng., Frank Basa, CEO, at drill hole in promising area GoldMines Geoservices Inc., immediately west of the high-grade Rolling Start Pit GBB's Granada Consultant Outcropping in northeastern Typical Rock Alteration part of LONG Bars Zone TSX-V GBB OTC PK GBBFF
Slide 17: Mine Management Structure
Mine Management Structure Mining contractors to be supervised by GBB personnel, as outlined in PFS(1) (P.224) Mine Manager Pit Captain Production Geologist Mine Engineer Surveyor Environmental Technician Community Relations Officer Contract milling to be supervised by GBB personnel:
Slide 18: Gold Bullion Management and Directors
Gold Bullion Management and Directors FRANK J. BASA P.Eng RON J. GOGUEN Chairman, President, & CEO Director Mr. Basa is a Professional Engineer with a degree in Metallurgical Engineering Mr. Goguen is President and CEO of ONTOP Capital Limited, an investment holding from McGill and has over 30 years
Slide 19: Geological, Engineering Consultants
Geological, Engineering Consultants Goldminds Geoservices Inc. SGS Canada Inc. Geological, Environmental and Geological, Environmental and Mining Consultant Engineering Consultant Experts in orebody modelling and resource estimation, A global leader and innovator, SGS Canada Inc.’s this Quebec-based
Slide 20: Granada 2016 – 2017 Catalysts
Granada 2016 – 2017 Catalysts Drilling results in 2016 when First gold pour during received processing of first batch of “Rolling Start” mined material Update of NI 43-101 resource estimates to include drilling Results from engineering work results for production ramp-up to 400 historical holes to b
Slide 21: How Granada Can Grow
How Granada Can Grow WEST 80% of LONG Bars Zone yet to be explored. LONG Bars mineralized gold zone open in all directions and depth. EAST TSX-V GBB OTC PK GBBFF FRANKFURT B6D 21
Slide 22: GBB Resumes Exploration September 2016
GBB Resumes Exploration September 2016 Targeting a significant expansion of the Granada gold deposit High-grade drill targets Tonnage targets(2) • Pit-constrained 88-93 million tonnes at 1 g/t Not previously explored gold surface Not included in 2013 resource • 10-20 million tonnes at 3 g/t gold und
Slide 23: Granada Exploration Targets and Strike Length
Granada Exploration Targets and Strike Length Drill Targets Explored Area Granada Mine Shaft 1 Aukeko Shaft Shaft 2 Bulk Sample 1938 Grab Samples 1940 Explored Area Avg. 7.0 oz Au/T Up to 6.57 oz Au/T (239.9 g/t Au) (225.2 g/t Au) Drill Targets Potential 5.5 km strike length Legend Potential strike
Slide 24: Examples of Previous High-Grade Exploration Results at Granada
Examples of Previous High-Grade Exploration Results at Granada DRILL HOLE GR-11-310 DRILL HOLE GR-11-271 15.61 grams/tonne (g/t Au) over 182.95 m grading 1.11 g/t Au including 0.75 m 29.23 metres (m) from 15.0 m to 44.23 m grading 207.27 g/t Au at only 24.55 m (22.1 m including 88.97 g/t Au over 5.0
Slide 25: Share Structure
Share Structure Share Price(1) $0.10 Market Cap $36,177,702 Shares Issued and Outstanding 361,777,024 Warrants Outstanding 65,952,355 Options Outstanding 19,650,000 Fully Diluted 447,379,379 5.9% of shares Ownership by insiders 9.3% fully diluted 52 WEEK HIGH AND LOW $0.155 - $0.015 (1) As of Septem
Slide 26: Contact Information
Contact Information Timothy Lallas Head Office (Administration) Vice President Finance Gold Bullion Development Corp. Phone: 778-998-2486 2875 Ave Granada Email: tim.lallas@shaw.ca Rouyn-Noranda, Quebec J9Y 1J1 Phone: 819-797-4144 Fax: 819-762-2306 Wayne Cheveldayoff Communications Advisor Phone: 41
Slide 27: Appendix
Appendix 27
Slide 28: Granada Conceptual Long-term Plan
Granada Conceptual Long-term Plan Mill Location Site TSX-V GBB OTC PK GBBFF FRANKFURT B6D 28
Slide 29: Granada Deposit Cross Section from 2013 Preliminary Economic Assessment (PEA)
Granada Deposit Cross Section from 2013 Preliminary Economic Assessment (PEA)(1) 3-D View of Open-pit and Underground Mining Open Pit Mining Underground Mining (1) Source: NI 43-101 Technical Report Preliminary Economic Assessment (PEA) Granada Gold Project Rouyn-Noranda, Quebec, published February
Slide 30: Granada Metallurgy – Test Results
Granada Metallurgy – Test Results 2007: Bulk sample of 140,000t from open 2012: Tests on 29 composite samples pit in LONG Bars zone processed. for head grades and recoveries using Grade averaged 1.62 g/t Au with 90% flotation followed by cyanidation. Grade recovery rate(1) averaged 0.94 g/t Au with
Slide 31: Future Potential of Granada Property
Future Potential of Granada Property Feasibility work to begin soon to Exploration planned at high-grade expand gold production to 100,000 targets (1) ounces per year WITHIN EXTENDED LONG BARS ZONE: NI 43-101 Mineral Resource Further deep hole drilling on the property to increase existing reserves
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