Future Mineral Resources Inc. · TSX:FMR
Future Mineral Resources — Sulliden Gold — Investor Presentation (March 2013)
41 slides from Future Mineral Resources's investor presentation, March 2013
Slide 1: Low Cost Gold Project in Peru: Clear Path to Production
Low Cost Gold Project in Peru Corporate Presentation Clear Path to Production March 2013
Slide 2: Cautionary Disclaimer
Cautionary Disclaimer Forward Looking Statement: This presentation may include certain “forward-looking statements” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein, including, without limitation, statements r
Slide 3: Corporate Overview
Corporate Overview Focus on Developing the Gold & Silver Shahuindo Project Simple open-pit, heap leach mine Currently in advanced stages of permitting Clear path to production and expanded mine scenario Top Tier Economics (Feasibility Study Completed in Sept 2012) Initial gold equivalent pro
Slide 4: Corporate Structure
Corporate Structure Capitalization Summary (March 1, 2013) Analyst Coverage TSX: SUE Steve Parsons Trading Symbols BVL: SUE SDDDF: OTCQX Gary Baschuk Shares Outstanding 243.6M Fully Diluted 267.2M Andrew Kaip Share Price (TSX) $0.83 Richard Gray 52-week Range (TSX) $0.75 - $1.50 Average Daily Volume
Slide 5: Peru: A Thriving Mining Country
Peru : A Thriving Mining Country 1. China 2. Australia 3. USA Peru is among 4. South Africa the top 10 gold 5. Russia producers in the world: 6. Peru Gold producer 7. Ghana #1 in Latin America 8. Canada 9. Indonesia Gold producer #6 in the world 10. Mexico Silver producer #2 in the world Copper prod
Slide 6: Shahuindo Gold & Silver Project
Shahuindo Gold & Silver Project Located in a prolific gold-producing district Lowest Capex & Cash Cost Mines in the World Lagunas Norte (Barrick), Peru 1 28 km from Shahuindo 2 El Sauzal (Goldcorp), Mexico 3 Kettle River (Kinross), USA 4 Kupol (Kinross), Russia 5 Cortez (Barrick), USA 6 Veladero (Ba
Slide 7: Excellent Location & Accessibility
Excellent Location & Accessibility 7 SUE:TSX SUE:BVL SDDDF:OTCQX
Slide 8: Gold Mineral Resource Growth
Gold Mineral Resource Growth Measured & Indicated (M&I) Mineral Resources Inferred Mineral Resources M&I gold mineral resources increase to: 3,000,000 2,438,000 ounces 2012 Inferred gold mineral resources increase to: Mineral Resources* 2,500,000 2.44 M 1,628,000 ounces 2011 Mineral Resources Excell
Slide 9: Silver Mineral Resource Growth
Silver Mineral Resource Growth Measured & Indicated (M&I) Mineral Resources Inferred Mineral Resources M&I silver mineral resources increase to: 60,000,000 33,370,000 ounces 2012 Inferred silver mineral resources increase to: Mineral Resources* 46,560,000 ounces 50,000,000 2011 46.6 M Mineral Resour
Slide 10: Shahuindo Mine Project: Feasibility Study Results
Shahuindo Mine Project Feasibility Study Results - Sept 2012 A Foundation for Future Growth… Mineral Reserves (P&P) 37.8 Mt @ 0.85 g/t Represents 40% of total oxide mineral resource Gold Equivalent Annual Production +/- 90,000 oz/year Tonnes per day mined 10,000 TPD Initial Capital Costs $131.8M Own
Slide 11: Project Funding
Project Funding $125M debt financing underway & Nov. 8, 2012 – Sulliden announces mandate letter for $125 million debt financing Indicative terms and conditions for the facility - interest rate of LIBOR plus 4.85% pre-completion, and LIBOR plus 4.35% post-completion Hedging - Sulliden is in di
Slide 12: Robust Economics
Robust Economics Comparable Oxide Projects Annual Cash Technical Report IRR IRR Mine Strip Company & Project Au Price Gold Costs CAPEX & Date (Pre-Tax) (Post-Tax) Life Ratio Production (per oz.) Sulliden Gold, Feasibility Study $1,300 45.6% 33.0% 87,700 oz. 10 yrs $541 $131.8 M 1.97:1 Shahuindo, Per
Slide 13: Simple and Low Cost Mining
Simple and Low Cost Mining Open Pit 1 Mine - Conveying - Agglomerating - Stacking 3 ADR Plant Heap Leach 2 Processing Carbon in Column Gold Recovery Plant Preg Pond Barren Pond Carbon Stripping/Reactivation +/- 90,000 oz. of gold per year to act as a foundation for expansion Current mineral reso
Slide 14: Low Cash Cost Project
Low Cash Cost Project Shahuindo is located $500/oz.; 0.63 g/t Buenaventura’s & Southern Peru Copper’s among several low Tantahuatay Mine (Nov 2012) cash cost mines $500/oz.; 0.40 g/t $552/ounce* Buenaventura & Newmont’s La Zanja Mine (Nov 2012) Sulliden’s Shahuindo Project $560/oz.; < 1.0 g/t Newmon
Slide 15: Low Cash Cost Project
Low Cash Cost Project N.A. Producers Average Lowest Capex & Cash Cost Mines in the World Cash Costs: $552/oz Cash Costs: $800/oz Lagunas Norte (Barrick), Peru 1 All-in Cash Costs: $837/oz All-in Cash Costs: $1,400/oz 28 km from Shahuindo 2 El Sauzal (Goldcorp), Mexico $1,800 $1,800 3 Kettle River (K
Slide 16: Shahuindo Feasibility Results: 10k tpd Mine Layout
Shahuindo Feasibility Results 10k tpd Mine Layout 16 SUE:TSX SUE:BVL SDDDF:OTCQX
Slide 17: Shahuindo Expansion Scenario
Shahuindo Expansion Scenario Preliminary Layout for expanded 30k tpd Mine 17
Slide 18: Production Growth Profile
Production Growth Profile Mine expansion through cash flow once in commercial production Mineral Reserves represent only about 40% of gold ounces from Phase 1 - Central Corridor, high grade areas total oxide mineral resource* Phase 2 - Potential to expand Central Corridor Phase 3 - Near-term mineral
Slide 19: Timeline to Production
Timeline to Production 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Updated NI43-101 Mineral Resource Feasibility Study Submission of ESIA Report Final Public Audience Expected ESIA Approval Power Project & Mine Construction Construction Production Start
Slide 20: Shahuindo Geology - Strong Exploration Upside
Shahuindo Geology - Strong Exploration Upside
Slide 21: Mineral Deposit Layout
Mineral Deposit Layout The current mineral resource is hosted in the “Central Corridor” A continual 3.8 km mineral occurrence Mineralization outcrops at surface (1.97:1 strip ratio, Feasibility Study Sept 2012) Results from geochemistry and geophysics suggest a 6.2 km mineralized trend Miner
Slide 22: Largely Unexplored Property
Largely Unexplored Property 22 SUE:TSX SUE:BVL SDDDF:OTCQX
Slide 23: Promising Future Discoveries
Promising Future Discoveries *Please see Appendices for tonnes, grades and notes relating to mineral resource estimate 23 SUE:TSX SUE:BVL SDDDF:OTCQX
Slide 24: Section Examples
Section Examples 24 SUE:TSX SUE:BVL SDDDF:OTCQX
Slide 25: Transversal Section – East Zone
Transversal Section – East Zone 25 SUE:TSX SUE:BVL SDDDF:OTCQX
Slide 26: Longitudinal Section (100S to 100N)
Longitudinal Section (100S to 100N) Low strip ratio due to mineral oxides outcroping on surface Potential for sulphide mineralization at depth (Regional trend – Lagunas Norte, Yanacocha) 26 SUE:TSX SUE:BVL SDDDF:OTCQX
Slide 27: Compelling Investment Opportunity
Compelling Investment Opportunity Excellent location and mining jurisdiction Completed Feasibility Study highlights top tier economics Clear path towards production and expanded mine scenario Project significantly de-risked: Completed Feasibility Study ESIA Report submitted to Peruvian g
Slide 28: Shahuindo Project, Peru
Shahuindo Project, Peru 28 SUE:TSX SUE:BVL SDDDF:OTCQX
Slide 29: Appendices
Appendices Appendices
Slide 30: A Proven Mine-Building Team
A Proven Mine-Building Team Management Team Board of Directors Justin Reid, MSc., MBA, President Geologist and capital markets executive with over 20 years of experience Peter Tagliamonte, CEO & Chairman focused exclusively in the mineral resource space. Former senior mining Professional Engineer wi
Slide 31: NI 43-101 Mineral Resources
NI 43-101 Mineral Resources September 2012 Gold Gold Silver Silver Gold Contained Grade Contained Grade Tonnes (t) Grade Ounces (g/t) Ounces (g/t) Eq.g/t Total Measured & Indicated 2,438,000 0.52 33,370,000 7.1 147,310,000 0.54 Mineral Resources Measured Mineral Resources Oxide (Reported at 0.2 g/t
Slide 32: NI 43-101 Mineral Reserves
NI 43-101 Mineral Reserves September 2012 Mineral Reserves represent only approximately 40% of the gold ounces from total oxide mineral resource Gold Gold Silver Silver Gold AuEq contained grade contained grade Tonnes (t) grade Ounces (ounces) (g/t) (ounces) (g/t) Eq.g/t Total P&P 1,022,000 0.84 11,
Slide 33: Metal Price Sensitivity Table
Metal Price Sensitivity Table Sept. 2012 Feasibility Study Results Gold Price Silver Price IRR IRR Cash Costs Payback (US$/oz) (US$/oz) 1 Pre-Tax (%) After-Tax (%) per oz Au 2 After-tax $900 $17 19.0% 13.5% $509 4.8 yrs $1,100 $21 33.2% 23.9% $524 3.2 yrs $1,300 $25 45.6% 33.0% $541 2.5 yrs $1,500 $
Slide 34: Peru Permitting Developments
Peru Permitting Developments Recent ESIA Submissions and Approvals in Peru Inmaculada Project (Hochschild) Emerging silver producer - 7 million oz of silver per year ESIA approved in October 2012 San Luis Project (Silver Standard) ESIA approved on September 2012 Cerro Verde Project (Free
Slide 35: ESIA Process
ESIA Process Environmental Social Impact Assessment (ESIA) Process Completed ESIA Document Components 2nd Official Final Public Authorization to Baseline Studies Feasibility Study Meetings Audience start Construction Impact Analysis & (Nov 2012) (March 2013) (Q3/Q4 2013) Management Plan
Slide 36: Community Information Meetings
Community Information Meetings Sample pictures from 2nd Round of Official Meetings (Nov 2012) Algamarca Araqueda Chuquibamba La Fila Liclipampa Alto Moyán Alto 36 SUE:TSX SUE:BVL SDDDF:OTCQX
Slide 37: Completed Information Meetings
Completed Information Meetings 16 communities 1,100 participants 37 SUE:TSX SUE:BVL SDDDF:OTCQX
Slide 38: Sustainable Development Initiatives
Sustainable Development Initiatives Education, Training & Small Business Coaching Local Opportunities Programs Partnership with: In partnership with recognized Peruvian training institutions, Sulliden provides training programs in Masonry, Ironworks, Electrical Wiring & installations, Front end lo
Slide 39: CSR Programs
CSR Programs Community Support & Local Development Programs Small Business Development In partnership with public institutions and private entities, Sulliden Development of irrigation assists in the sustainable development of local businesses infrastructure in Cajabamba (Commercial production of haa
Slide 40: Shahuindo Project History
Shahuindo Project History 40 SUE:TSX SUE:BVL SDDDF:OTCQX
Slide 41: Sulliden Gold Corporation Ltd. Contact
Sulliden Gold Corporation Ltd. Peter Tagliamonte 65 Queen Street West, Suite 800 Chairman & CEO Toronto, Ontario M5H 2M5 T +1 (416) 861-1685 Justin Reid F +1 (416) 861-8165 President Trading Symbols Investor Relations TSX:SUE T +1 (416) 861-5805 BVL:SUE info@sulliden.com OTCQX:SDDDF www.sulliden.com