Colossus Minerals — Investor Presentation (November 2013)
52 slides from Colossus Minerals's investor presentation, Nov 14, 2013
Slide 1: Serra Pelada: Building Brazil's Next Gold Mine
Serra Pelada Building Brazil’s Next Gold Mine
Slide 2: Forward Looking Statements
Forward Looking Statements Forward-looking statements in this presentation include statements regarding the timing and nature of future exploration and development programs that are dependent on projections that may change as drilling continues, or if unexpected ground conditions are encountered. Th
Slide 3: The Vision
Serra Pelada THE VISION • Develop the Serra Pelada Mine in a cost- effective, sustainable and safe manner • Provide leading cash flow per share, earnings per share and dividend yield to investors • Deliver low cost, high margin growth from organic sources November 14, 2013 3
Slide 4: 2013 and 2014 Objectives
Serra Pelada 2013 and 2014 OBJECTIVES Objective Target Complete process plant commissioning First quarter 2014 Second quarter Process bulk sample 2014 Second quarter Publish NI 43-101 2014 Second quarter Initial production 2014 Fourth quarter Design & engineer flotation plant 2013 Fourth quarter Com
Slide 5: Capital Structure
Capital Structure AS AT SEPTEMBER 30, 2013 EXCEPT WHERE OTHERWISE NOTED All dollar amounts $CDN, unless noted Current Position Shares outstanding - basic 175.5 million Shares outstanding - fully diluted 214.8 million Market capitalization (11/11/13) C$73.7 million Share price (11/11/13) C$0.42 52-we
Slide 6: Focused on Brazil
Focused on Brazil • Resource-rich country • Pro-mining government • World’s 6th largest economy by GDP and largest in South America • Real GDP growth of 2.2% forecast in 2013 • Inflation estimated at 4.5% and stable monetary policy November 14, 2013 6
Slide 7: Location and Infrastructure
Serra Pelada LOCATION AND INFRASTRUCTURE • Prolific Carajas region • Major deposits of iron ore, copper-gold, manganese • Robust infrastructure with access to roads, power, water and skilled labour • Vale S.A. investing billions of dollars over the next decade in the region November 14, 2013 7
Slide 8: Land and Permits
Serra Pelada LAND AND PERMITS Land Package • 874 hectare property • Ownership Structure: Colossus 75% Coomigasp 25% Permits • Preliminary Environmental License – issued March 2010 • Precedes balance of permits – issued by COEMA • Installation License – issued April 2010 • Para State environmental co
Slide 9: High Grade Deposit: Grade Variability
High Grade Deposit GRADE VARIABILITY November 14, 2013 9
Slide 10: High Grade Deposit: Grade Variability
High Grade Deposit GRADE VARIABILITY November 14, 2013 10
Slide 11: Underground Drilling
Underground Drilling DEFINING AND DELINEATING THE CMZ • Exploration and definition underground drilling commenced in Dec 2011 • Bulk sample, being extracted from CMZ, will be processed at site • Initial NI 43-101 resource estimate will be published • The drill spacing for this resource statement wil
Slide 12: Development Timeline
Serra Pelada DEVELOPMENT TIMELINE 2010 2011 2012 2013 2014 Exploration Permitting Construction Underground Development NI 43-101 Resource Initial Production Ramp up to 1000 tpd Design & Engineer Flotation Plant Complete PGM Flotation Plant November 14, 2013 12
Slide 13: Process Plant: Simplified Flowsheet
Process Plant SIMPLIFIED FLOWSHEET November 14, 2013 13
Slide 14: Process Plant: Design Overview
Process Plant DESIGN OVERVIEW Gold Room Scrubbing, Screening and Primary Crushing Ball Mill and Gravity Reagents Concentrators November 14, 2013 14
Slide 15: Overview
Overview November 14, 2013 15
Slide 16: Overview
Overview November 14, 2013 16
Slide 17: Tipping Ramp
Tipping Ramp November 14, 2013 17
Slide 18: Primary Crushing
Primary Crushing FINAL GRADES & SHEETING - CONVEYOR 200-TC-01 November 14, 2013 18
Slide 19: Primary Crushing, Scrubbing & Screening
Primary Crushing, Scrubbing & Screening November 14, 2013 19
Slide 20: Reagent Building
Reagent Building AREA OVERVIEW November 14, 2013 20
Slide 21: Reagent Building
Reagent Building November 14, 2013 21
Slide 22: Grinding Building
Grinding Building November 14, 2013 22
Slide 23: Tailings Thickener
Tailings Thickener November 14, 2013 23
Slide 24: Tailings Thickener
Tailings Thickener November 14, 2013 24
Slide 25: Gold Room
Gold Room November 14, 2013 25
Slide 26: Master Control Centre
Master Control Centre HARDSCAPE AROUND MCC COMPLETE November 14, 2013 26
Slide 27: Tailings Dam
Tailings Dam 1 – Spillway & Diversion Channel discharge 4 – Preparation of engineered fill; 2 – Compaction of engineered fill; 5 – Dumping & spreading fill; 3 – Placement of Vertical Filter; 6 – Drainage control on downstream slope November 14, 2013 27
Slide 28: Development Decline
Development Decline November 14, 2013 28
Slide 29: Mining Method: Underhand Cut & Fill
Mining Method UNDERHAND CUT & FILL • Underhand Cut & Fill mining method for 100% extraction of the ore • Work from top of the orebody down excavating under cemented rock fill • Used in a number of high-grade gold mines including Goldcorp’s Red Lake Mine, Barrick’s Miekle Mine, Turquoise Ridge Mine,
Slide 30: Underground: Pump Station Upgrade
Underground PUMP STATION UPGRADE November 14, 2013 30
Slide 31: Underground: Ground Support - Lattice Arches
Underground GROUND SUPPORT – LATTICE ARCHES November 14, 2013 31
Slide 32: Underground: Ground Support
Underground GROUND SUPPORT November 14, 2013 32
Slide 33: Surface: Dewatering Well
Surface DEWATERING WELL November 14, 2013 33
Slide 34: Ventilation Shaft
Ventilation Shaft November 14, 2013 34
Slide 35: Production Schedule
Production Schedule Development Advance • Nov 2013 – Decline, Remuck and Vent Access • Dec 2013 – Decline, Sump, Ore Access x4 started, Vent Access complete to Hor1 and Hor2 • Jan 2014– Decline, Ore Access x 4 started – to Hor1, Hor2, Hor3 November 14, 2013 Serra Pelada 35
Slide 36: Production Schedule
Production Schedule Development Advance Feb 2014 – Decline, Ore Access advance x 4 headings Mar 2014 – Decline and Ore Access x 5 headings Apr 2014 – Advance access and ore production. Decline continues November 14, 2013 Serra Pelada 36
Slide 37: Cutia Project
Cutia Project • 75% ownership interest purchased from COOMIC for R$3.6 million (~USD $2.0 million) payable in installments upon satisfaction of certain milestones. • 633 hectares, 13 km SE of Serra Pelada, accessed by same road • 3 metre thick quartz veins outcropping on Sierra Pelada surface Cutia
Slide 38: Cutia Project: Drilling Commenced
Cutia Project DRILLING COMMENCED • Initially believed that Cutia showings were orogenic gold type deposit • Once drilling began, became clear that system shares more characteristics with an IOCG type deposit than with an orogenic gold type deposit. Please refer to News Release Issued January 16, 201
Slide 39: A Compelling Investment
Serra Pelada A COMPELLING INVESTMENT • Gold & PGM drill grades at Serra Pelada are among the highest on record • Potential low cost emerging producer • Project is permitted and construction of process plant almost complete • 110,000 metres drilled, significant exploration upside November 14, 2013 39
Slide 40: Contact Information
TSX: CSI www.colossusminerals.com OTCQX: COLUF Colossus Minerals Inc. 416.643.7655 1 University Avenue, Suite 401 info@colossusminerals.com Toronto, ON M5J 2P1 www.colossusminerals.com Ann Wilkinson Vice President, Investor Relations November 14, 2013 40
Slide 41: Appendices
APPENDICES November 14, 2013 41
Slide 42: Community
Community • Striving to build a stronger community – community based projects • Hiring locally is a priority • Education and training • Community donations (ambulance and police vehicles) • Health and dental services • Children’s programs (sports teams, first aid training, social events) November 14
Slide 43: Community Programs
Community Programs Community based projects Health Donation of ambulance and police vehicles Vaccination programs Public security and police training Medical and dental services School renovation Hospital renovation Municipal stadium renovation Municipal theatre renovation Installation of a communit
Slide 44: Community Programs
Community Programs Children Education and training programs • Soccer school • Literacy programs • Sporting events • First aid and safety training • Social events • Serra Pelada Capoeira school for children, teenagers, youth and adults • Visual arts workshops • Reading programs November 14, 2013 44
Slide 45: Area A: Payment Structure
Area A PAYMENT STRUCTURE Range of production Royalty as a (millions of ounces of percentage of gold metal) price on precious From To metal sold* --- 2.03 ~ 2.1% 2.03 4.79 ~ 1.4% 4.79+ --- ~ 1.3% Colossus must pay COOMIGASP R$350,000 (US$155,555**) per month as a prepayment on the royalty noted above
Slide 46: Area B: Payment Structure
Area B PAYMENT STRUCTURE 700 – Hectare Land Tenement • COOMIGASP paid R$8 million (US$4.5 million*) • Will pay COOMIGASP a royalty payment of 0.4326% of gold price of precious metals sold** • Exercised option on Vale agreement Mar 18/13 • Vale has 45 days to request additional documents to support U
Slide 47: Area C: Payment Structure
Area C PAYMENT STRUCTURE 74 - Hectare Land Tenement Consideration • Have paid COOMIGASP R$4 million (US $2.2 million*) • Will pay COOMIGASP a royalty of 2.0908% of gold price on precious metals sold** *Calculated at historical exchange rates. **Precious metal is defined as any one of gold, platinum,
Slide 48: Warrants and Options
Warrants and Options AS AT NOVEMBER 14, 2013 # of Warrant price Expiry warrants $8.50 5,175,000 Nov 8, 2016 $0.90 25,300,000 Aug 13, 2015 Options Options Range Outstanding Exercisable $0.48CAD - $1.50CAD 915,000 341,250 $1.51CAD - $3.00CAD 587,500 198,750 $3.01CAD - $4.50CAD 2,411,250 1,966,250 $4.5
Slide 49: Senior Management
Senior Management David Massola, • 30 years experience in the mining industry Interim CEO & CFO • Previously President & CEO of Continental Nickel Limited from 2011 until it was acquired in 2012. Served as CFO and SVP of Globestar Mining Corp. from 2006 until it was acquired in 2011. Prior to joinin
Slide 50: Board of Directors
Board of Directors John Frostiak, P.Eng • Over 35 years experience in the mining industry. Managed Metallurgy and Process Development for Barrick Gold Corp. Chairman • Lead developer of both Pierina Mine and Bulyanhulu Mine for Barrick Qualified Person under NI 43-101 J. Alberto Arias, MBA • Founder
Slide 51: Analyst Coverage
Analyst Coverage Research Firm Analyst Latest Coverage Target/Rating Canaccord Genuity Nicholas Campbell November 2013 $0.60 – Hold Clarus Securities Jamie Spratt September 2013 $0.95 – Sell Dundee Securities Joseph Fazzini October 2013 $0.50 – Sell GMP Securities George Albino September 2013 $3.25
Slide 52: Notes
§ CoLossus NOTES November 14, 2013
Colossus Minerals — Investor Presentation (November 2013) on 6ix