Gabriel Resources Ltd. · TSXV:GBU
Gabriel Resources — Investor Presentation (February 2012)
41 slides from Gabriel Resources's investor presentation, February 2012
Slide 1: A Project for Romania
A Project for Romania February 2012
Slide 2: Legal Notice
Legal Notice The summary information contained herein has been provided by Gabriel Resources Limited (the “Company”) in respect of its interest in the Rosia Montana Gold and Silver Project (the “Project”). The Project is wholly owned by the Company’s subsidiary Rosia Montana Gold Corporation S.A. (“
Slide 3: Contents
Contents Gabriel Resources – overview Romania and the Rosia Montana Project Economy Environment Patrimony Community Summary 3
Slide 4: Investment Summary
Investment Summary The Project is one of the largest undeveloped gold and silver deposits Romanian gold project in the world and will be the largest gold mine in Europe 14.6m oz Au Measured & Indicated Resource (+1.2m Inferred), 64m oz Resources/Reserves1 Ag Measured & Indicated Resource; 10.1m oz A
Slide 5: Corporate Summary
Corporate Summary Key information Share price evolution – 12 months Share price $6.05 (February 2, 2012) Market TSX Ticker GBU.TO Market Cap CAD$2.29 billion Common shares 380 million Corporate structure* Major shareholders** Paulson & Co 16% Gabriel Resources Romanian Gov’t Electrum Strategic Holdi
Slide 6: Gabriel Benchmarking
Gabriel Benchmarking Developers’ Attributable Reserves(1) 40 Based on 43-101 (March 2009) 35 Annual 626,000 oz @ $272/oz – first 5 years 30 production/cash cost averages 500,000 oz @ $335/oz – LOM million ozs 25 Capital Cost Est. US $876M 20 39 Mine life 16+ years 15 10 20 16 15 5 11 8 7 7 5 5 2 0 1
Slide 7: Contents
Contents Gabriel Resources – overview Romania and the Rosia Montana Project Economy Environment Patrimony Community Summary 7
Slide 8: Romania Rosia Montana
Romania Rosia Montana 2,000 years of mining history with up to an Located in a highly prospective mining district estimated 50 million ounces of gold produced, together with significant silver and copper Rosia Montana has been mined for 2,000 years and most recently by the state until 2006 In the 5
Slide 9: Romania's Golden Quadrilateral
Romania's Golden Quadrilateral Within the Golden Quadrilateral: There are around 64 ore deposits and prospects, some of them having been mined in the past 3 active exploitation licenses: Rosia Poieni Rosia Montana Certej 5 exploration licenses Voia Cainel Rovina Magura Tebii Caraci-Birtin Exploitati
Slide 10: Rosia Montana – A Mining District
Rosia Montana – A Mining District Rosia Montana: Historical workings at Rosia Poieni: A state owned working the Cetate pit mine right next door 10
Slide 11: Rosia Montana – Reserve Model
Rosia Montana – Reserve Model Carnic Cetate Jig Average content of reserves block (g/t) Orlea 11
Slide 12: Rosia Montana – Current Perspective
Rosia Montana – Current Perspective 12
Slide 13: Rosia Montana – Project Perspective
Rosia Montana – Project Perspective Rosia Montana Protected Area Jig Pit Carnic Waste Dump Carnic Pit Orlea Pit Cetate Pit LGS Plant Site Tailings Dam 13
Slide 14: Permitting Process
Permitting Process Achievements: September 17, 2010 - resumption of the Technical Analysis Committee (“TAC”) review of the project‟s Environmental Impact Assessment (EIA), which had been suspended since September 2007 March 28, 2011 - Environmental Approval of the PUZ for the Industrial Project
Slide 15: Contents
Contents Gabriel Resources – overview Romania and the Rosia Montana Project Economy Environment Patrimony Community Summary 15
Slide 16: Economic Benefits
Economic Benefits1 Economy Environment Patrimony Community A Contribution to EU Inclusive Growth: Fostering a high-employment economy, delivering social and territorial cohesion Rosia Montana is a „Disadvantaged Zone‟ due to the previous ….. before renovation > 90% unemployment rate in the area The
Slide 17: Environment – Rosia Montana Existing Conditions
Environment – Rosia Montana Existing Conditions Economy Environment Patrimony Community 17
Slide 18: Rosia Montana Project – The Environmental Impact
Rosia Montana Project – The Environmental Impact Forestry and Landscaping Water Planting of 1,000 hectares of forestry to Collect and clean historical pollution replace 255 hectares to be deforested Rational use of water – aim to recirculate 85% All quarries, waste stockpiles and the tailings of ind
Slide 19: Water Impact
Water Impact Economy Environment Patrimony Community The Project will have a positive impact on the water quality of Rosia Montana by cleaning historical pollution Pilot plant water treatment tests are ongoing; in December 2011 the pilot plant was constructed and will begin operations soon Actual Si
Slide 20: Patrimony Plan – Protected Areas, Conserved and Rehabilitated
Patrimony Plan – Protected Areas, Conserved and Rehabilitated 1 Historical Centre protected area 3 Tău Găuri protected area Historical monuments 1 2 4 3 Tău Brazi Cătălina – Monuleşti Roman Gallery Piatra Corbului protected area 4 Churches and Industrial techniques 2 Carpeni protected area and patri
Slide 21: Historical Centre – A 10 Year Rehabilitation Plan
Historical Centre – A 10 Year Rehabilitation Plan Historical Centre – initial status and restoration project Overall Objective: A Vibrant Community A new urbanistic zonal plan is in the approval stage for Rosia Montana historical centre - planned to protect this area and ensure a buffer zone around
Slide 22: Restoration Programme in 2012 – The Former Old School
Restoration Programme in 2012 – The Former Old School Economy Environment Patrimony Community The former old school (library) Built in 1898 in a fine, provincial style, used as a school until 2005 During that time it hosted a library, a small office and a nursery Now the school functions in another
Slide 23: Surface Rights Status
Surface Rights Status To date RMGC has secured 60% of the surface area required for the Project construction, including 78% of the number of homes under the Project footprint Once the Environmental Permit is granted the Company will resume the surface rights acquisition process; the acquisition prog
Slide 24: Resettlement: A New Neighborhood
Resettlement: A New Neighborhood Economy Environment Patrimony Community 125 families opted for resettlement in Recea neighborhood at Alba Iulia – a location chosen by the community and built by RMGC Construction began in 2006 and Phase 1 was completed in 2009 Resettlement and community support is a
Slide 25: Contents
Contents Gabriel Resources – overview Romania and the Rosia Montana Project Environment Patrimony Local Community Summary 25
Slide 26: Summary
Summary Gabriel Resources, Romania and Rosia Montana Working together……… Bringing one the world‟s largest Community support remains strong undeveloped gold projects into production Working with Romanian Government to Rosia Montana will become Europe‟s bring the first modern mine to the largest gold
Slide 27: ANNEXES
ANNEXES 27
Slide 28: Rosia Montana Project – Resources and Reserves
Rosia Montana Project – Resources and Reserves1 Tonnes Au Ag Contained Au Contained Ag Resources (Mt) (g/t) (g/t) M oz M oz Measured 139.83 1.5 8 6.6 38.1 Indicated 210.52 1.2 4 7.8 26.8 Measured & Indicated 350.35 1.3 6.0 14.6 64.9 Inferred 30.29 1.2 3.0 1.2 3.0 Tonnes Au Ag Contained Au Contained
Slide 29: Analyst Coverage
Analyst Coverage Institution Analyst Contact Information (416) 359-6189 BMO Capital Markets John Hayes johnp.hayes@bmo.com (416) 594-7106 CIBC World Markets Cosmos Chiu cosmos.chiu@cibc.ca (416) 943-6749 Cormark Securities Inc. Mike Kozak mkozak@cormark.com (212) 702-4504 Dahlman Rose & Co. Adam Gra
Slide 30: Share Price Performance and Top Shareholder Ownership
Share Price Performance and Top Shareholder Ownership Share Performance 31-Jul-06: 06-Mar-07: 26 -May-09: 18-Dec-09: 17-Jun-11: $10.00 1 Announced public offering 2 Announced public offering 3 Announced C$100M 4 Announced private BSG exercises 30M 1,000 of C$85M of C$100M financing through placement
Slide 31: Project – Geology
Project — Geology an 3550000E SS Papi : 354000 mE 7355000mE 356000 mE “Seitnicel * . 357000mE 536000 mi inE Lm ‘lometers cS GABRIEL D >| —- Ragen J Moon fare ROSIA MONTANA PROJECT SURFACE GEOLOGY LEGEND LITHOLOGY Post-mineralization Vent Breccia with magnetic anomaly) cmerscon Marine sediments Undif
Slide 32: Project – Cetate and Carnic Cross Section
Project – Cetate and Carnic Cross Section W E Cetate Cirnic Andesite Black Breccia Dacite Marine Sediments Tuffaceous Vent Breccia Polymictic breccia 32
Slide 33: The Proposed Mining Process
The Proposed Mining Process • An illustration of the most modern mining project in Romania Pit Blasting Ore loading Crushing Pit setup and transport Processing Gold recovery Grinding with active Melting CN Leaching carbon Electrolysis neutralisation CONCRETE PLATFORM lined with high density polyethy
Slide 34: The Technological Process in the Pits
The Technological Process in the Pits The ore is extracted in pits and crushed before entering the grinding circuit 1. Pit setup 4 pits will be set up: Carnic, Cetate, Jig and Orlea The 4 pits will be exploited in 2 phases: Cetate and Carnic in the first 9 years, while Orlea and Jig will be opened a
Slide 35: The Technological Flow in the Processing Plant
The Technological Flow in the Processing Plant 5. Grinding Wet grinding of the crushed ore in 2 ball crushers and one semi-autogenous mill; 6. Leaching Leaching of the ore in a CN solution, in closed tanks; the CN solution dissolves the gold and silver from the ore. 7. Gold and silver Gold and silve
Slide 36: Tailings Management Facility
Itinerary Tailings Management Facility 13 sites were reviewed initially Designed capacity – 250 million tonnes Corna Valley is the only site which fulfils all requirements: Necessary storage capacity – 215 million tonnes Storage capacity; Designed to resist earthquakes of 8 degrees Richter Favorable
Slide 37: Rosia Montana – Post Closure
Rosia Montana – Post Closure 37
Slide 38: Bucium Project
Bucium Project Bucium Rodu Frasin - Block model development • Block size 40mE x 40mN x 10mRL • Ordinary Kriging • 0.6 g/t Au cut off Bucium Rodu Frasin – Resource Estimate Tonnage Grade Au Grade Ag Contained Contained Category (Mt) (g/t) (g/t) Au (oz) Ag (oz) Indicated 7.9 1.92 5 491,000 1,385,000 I
Slide 39: Key People at Gabriel Resources
Key People at Gabriel Resources Keith R Hulley Jonathan Henry Ed Flood Non-Executive Chairman President and Chief Executive Officer Non-Executive Director Keith Hulley, 71, is the current Chairman of the Board Jonathan Henry, 45, has been the President and CEO Ed Flood, 66, Founder and Chairman of C
Slide 40: Key People at Gabriel Resources
Key People at Gabriel Resources David Peat Simon Prior-Palmer Walter Segsworth Non-Executive Director Non-Executive Director Non-Executive Director David Peat, 58, has over 25 years of experience in Simon Prior-Palmer, 60, was appointed to the Board Walter Segsworth, 62, with over 40 years experienc
Slide 41: Key People at RMGC
Key People at RMGC Dragos Tanase Nicolae Suciu Horea Avram General Manager RMGC Senior Vice-President Governmental Affairs Vice-President Environment and Community Relations Mr. Tánase joined RMGC in February 2008, coming Mr. Suciu began working for RMGC in 2006, initially Mr. Avram has been Vice-Pr
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