Patagonia Gold Corp · TSXV:PGDC
Patagonia Gold — Investor Presentation (March 2014)
22 slides from Patagonia Gold's investor presentation, March 2014
Slide 1: Investor Presentation March 2014
INVESTOR PRESENTATION March 2014 AIM:PGD
Slide 2: Important Notice
IMPORTANT NOTICE The information contained in these slides has been prepared by Patagonia Gold plc ("the Company"). The information in these slides is subject to updating, completion, revision, further verification and amendment without notice. These slides have not been approved by the United Kingd
Slide 3: Patagonia Gold Plc
Patagonia Gold Plc Patagonia Gold Plc is a Producing Mining and Exploration company with its primary objective to increase shareholder value through the acquisition, exploration and development of gold and silver projects in the Deseado Massif region of Argentina 3
Slide 4: Footprint in the Deseado Massif
Footprint in the Deseado Massif 4
Slide 5: Resources
Resources NI 43-101 Compliant (oz) – 4 Projects INDICATED GRADE (g/t) METAL (Oz) PROJECT Tonnes Au Ag AuEq Au Ag AuEq Cap-Oeste 7,790,000 2.93 99.0 4.79 734,000 24,801,000 1,197,000 COSE 20,637 60.06 1,933.07 96.21 39,850 1,282,582 63,835 La Manchuria 425,705 2.95 135.00 4.07 40,317 1,848,211 55,684
Slide 6: Production at Lomada de Leiva
Production at Lomada de Leiva 6
Slide 7: 2013 achievements
2013 achievements Cut Back 2 started in main pit Main Plant Commissioned New Ponds and pumps commissioned HL Pad 3 Producing Jan 2014 7
Slide 8: Lomada de Leiva Project Full production Achieved
Lomada de Leiva Project Full production Achieved Main heap leach Pad 3 now producing Trial HL pad 400,000T loaded, with recovery performance of gold as expected Increased production to 33k ounces from nameplate 21k per annum targeted for Q2 2014 Additional 2.1M $USD capital spend required to expand
Slide 9: Lomada de Leiva Project: Achieving Targets
Lomada de Leiva Project: Achieving Targets Lomada Au Production by Month since May 2013 2500 $3.00 Name plate Production 1750/Oz 1892 1751 1877 $2.50 2000 1709 1549 1449 Au Ounces poured Monthly Revenue monthly M $US 1270 $2.00 1500 899 $1.50 1000 599 620 $1.00 500 $0.50 0 $0.00 Month 16,426 ounces
Slide 10: Forecast expansion targets by Quarter Lomada
Forecast expansion targets by Quarter Lomada Future Forecast production and Cashflow @ $1200 Au/Oz Lomada 10000 $14 9100 9100 9000 $12 8000 7500 Au Ounces poured Quarterly 7000 $10 Revenue Quarterly M $US 5800 6000 5178 $8 5000 $6 4000 3618 3000 $4 2000 1219 $2 1000 0 $0 Q2 2013 Q3 2013 Q4 2013 Q1 2
Slide 11: Low Cash Cost in current environment
Low Cash Cost in current environment OPEX excluding Tax, Royalties, G&A Explosives 7% Cyanide 3% Equipment 20% Consumables 15% Maintenance 9% Lodging 6% Salaries 26% Vehicles Fuel 14% Explosives Cyanide Consumables Salaries Vehicles Fuel Lodging Maintenance Equipment February 2014 Cash cost $649 p
Slide 12: Advanced Projects
Advanced Projects 12
Slide 13: Cap-Oeste-COSE Project
Cap-Oeste-COSE Project Two Phase development strategy 1.4Km Open Pit Ind Oxide- 195K OzEq @0.50 g/t Cut-off Potential Underground Sulphide Ind 823K Oz/Eq @ COSE 1.8km’s 3.00g/t Cut-Off 105Koz’s AuEq 13
Slide 14: Cap-Oeste-COSE Staged Approach to Development
Cap-Oeste-COSE Staged Approach to Development Staged Development Approach Stage 1 project: Develop Oxide Heap Leach Continue Feasibility and optimise testwork for selection of process route for > 1M oz Au-Eq Sulphide material Design and construct plant capable of processing both COSE and Cap-Oeste o
Slide 15: Cap-Oeste-COSE Feasibility underway
Cap-Oeste- Cap-Oeste process design and engineering well advanced, HL process route for oxide chosen COSE-Cap-Oeste Feasibility underway Agglomerated recovery curves vastly improved leach rate 76% Au in 16 days 15
Slide 16: CAPEX requirement Cap-Oeste Project Stage 1 Oxide
CAPEX requirement CAP-Oeste Project STAGE 1 OXIDE Total Stage 1 CAPEX required, 33.7M Complete Construction Final Fleet payments Design + 5-6 months and sustaining capital Testwork $13.2M $11.7M STAGE 2 2014 2015 2016 2017 $5.2M Place Fleet, $3.6M Liner + First Crusher and Piping Production Plant Or
Slide 17: Growth Strategy
Growth Strategy Key Milestones Permitting and Lomada Full construction Cap-Oeste Studies Lomada production Trial Cap-Oeste complete Decision on HL Pad 3 Stage 1 Oxide Process Route 2013 2014 2015 $US 16M $US 38M $US 86M Pre-Feasibility and Start Construction First Production Engineering Studies Cap-
Slide 18: Forecast Production + Cashflow at $1,200 for 2014-2015
Forecast Production + Cashflow at $1,200 for 2014-2105 25000 Lomada+Cap-Oeste $30 21600 21600 $25 20000 Au Ounces poured Quarterly 15600 $20 Revenue Quarterly M $US 15000 Lomada only 13200 $15 9100 9100 10000 7500 5800 $10 5000 $5 0 $0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Slide 19: Exploration
Exploration MT LEON CAP-OESTE 19
Slide 20: Footprint in the Deseado Massif
Footprint in the Deseado Massif 20
Slide 21: Unexplored El Tranquilo block
Unexplored El Tranquilo block 2Moz delineated within La Pampa 2.3m at 5.7ppm a very small portion of Au Felix the 80K hectare block 1.0m at 63.7ppm Au Felix, Monte Leon and Boundary Fault to be Don Pancho CO 5.0m at 8.1ppm drilled Q2 Au COSE Main targets are oxide Bx Valentina deposits with He
Slide 22: Monte Leon, High Grade Low Sulphidation
Monte Leon, High Grade Low Sulphidation Excellent High Grade Au target, Ginguri style with free gold discovered in second round of drilling 2,000m follow up drilling designed to test down-dip extent of mineralisation Monte Leon is within trucking distance of proposed Cap-Oeste processing site