Download - The Shahuindo Gold Project
European Gold Forum, May 6-8, 2014
The Shahuindo Gold Project A simple and low-cost heap leach mine with a clear path to production
TSX: SUE
BVL: SUE
OTCQX: SDDDF
FWB: S9E
2
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 regarding future plans and
objectives of the Company , projected capital and operating
expenses, timetable to permitting and production and the
prospective mineralization of the properties, are forward-looking
statements that involve various risks, assumptions, estimates and
uncertainties. Generally, forward looking information can be
identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved". There can be
no assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Forward-looking information is
subject to known and unknown risks, including but not limited to:
general business, economic, competitive, geopolitical and social
uncertainties; the actual results of current exploration activities;
acquisition risks; and other risks of the mining industry. Although the
Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. These
statements reflect the current internal projections, expectations or
beliefs of Sulliden Gold Corporation Ltd. (“the Company”) and are
based on information currently available to the Company. The
Company does not undertake to update any forward-looking
information, except in accordance with applicable securities laws.
The technical content of Sulliden Gold Corporation Ltd.’s
presentation was reviewed and approved by its Vice President of
Exploration, Stéphane Amireault, P.Eng., as well as its Vice
President of Technical Services and Operations, Joseph Milbourne,
who are Qualified Persons within the meaning of National
Instrument 43-101. Messrs. Amireault and Milbourne have reviewed
and approved the scientific and technical aspects of this
presentation.
Forward Looking Information
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Sulliden: Near-Term Gold Production
Main Exchange TSX (Toronto): SUE
Shares Issued
Fully Diluted
310.3 million
355.7 million
Market Capitalization ~$250 million (28.04.14)
Working Capital ~$50 million
Top Shareholders Agnico-Eagle Mines
Van Eck
RBC
Quick Facts 100%-owned Shahuindo Gold Project Simple and technically sound open-pit, heap leach mine
Historic mining district with excellent infrastructure
Foundation Project with Top Tier Economics
CAPEX of $131.8M for ~ 90,000 oz/yr production
$552/oz cash costs; $826/oz all-in
Pre Tax IRR of 52.2%; Post Tax IRR of 37.8%
Clear path to production and expanded mine scenario
Long-Term Upside Potential
2.44M M&I gold ounces; 1.63M Inferred gold ounces
Only approximately 150,000 metres drilled
Numerous regional targets remain largely unexplored
Experienced Management Team
High-level management team with proven track record of
developing and operating mines in Latin America
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Development & Construction Status
Environmental and Social license received in September 2013
Construction of electrical substation underway (Permit obtained April 2013)
All surface rights required for mine construction have been acquired
Construction permit application submitted; detailed engineering complete
Orders for long-lead items underway
Funding options being finalized and to be in place for construction start
Start of mine construction expected between Q4 2014 - Q1 2015
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5
Successful Final Audience Important step in the EIA Process
Completed on March 13, 2013
Over 2,500 attendees; Strong social support
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Electrical Substation Progress
Electrical substation construction permit received in April 2013
Completion expected in 2014
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7 7
Near-Term Construction & Production
Milestones expected in 2014
Receipt of mine construction permit
Completion of electrical substation project
Completion of project funding
Start of mine construction
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Peru : A Strong Mining Track Record
*Sources: Ministry of Mines and Energy, Peru and National Society of Mining, Oil, & Energy
Gold producer
in Latin America #1
Gold producer
in the world #5
Silver producer
in the world #3
Copper producer
in the world #3
Zinc & Tin producer
in the world #3
Barrick Gold Corp. (Canada)
Newmont Mining Company (USA)
Buenaventura Mining Co. (Peru)
BHP Billiton Limited (Australia)
Gold Fields Ltd (South Africa)
Southern Copper Corp. (Mexico)
Pan American Silver Corp (Canada)
Teck Resources Limited (Canada)
Hudbay Minerals (Canada)
Xstrata Copper (Switzerland)
Anglo American (UK)
Jianxi Copper (China)
Rio Tinto (UK)
Bear Creek Mining (Canada)
1. China
2. Australia
3. USA
4. Russia
5. Peru
6. South Africa
7. Canada
8. Mexico
9. Uzbekistan
10. Ghana
Peru is among
the top 10 gold
producers in the world:
Major international companies operate in Peru:
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Shahuindo Gold & Silver Project Located in a low cost mining district
¹Source: CIBC Research Department (2009/2011) 9
Safe and mining-friendly jurisdiction
Stable and functioning democracy
Prolific gold-producing region
Lagunas Norte and Yanacocha
are two of the 10 lowest cost
gold mines in the world¹
Access to trained
and educated workforce
Corporate tax rate: ~30%
10 10
Shahuindo Infrastructure Excellent location & accessibility
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0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Indicated
Oxide:
830,000
Mixed*:
60,000
Sulphides:
160,000
Oxide:
280,000
Sulphides:
10,000
Oxide:
228,000
Mixed*:
16,000
Sulphides:
1,192,000
Oxide:
124,000
Sulphides:
1,504,000
0.29 M
Gold
Ounces
Measured
Oxide:
766,000
Mixed*:
19,000
Indicated
Oxide:
1,624,000
Mixed*:
29,000
Indicated
Oxide:
1,776,000
Mixed*:
195,000
1.05 M
1.44 M
1.97 M
2.44 M
1.63 M
Inferred Mineral Resources Measured & Indicated (M&I) Mineral Resources
M&I gold mineral resources:
2,438,000 ounces Inferred gold mineral resources:
1,628,000 ounces
2009 2011 2012
Gold Mineral Resource Growth
*Please see Appendices for tonnes, grades and notes relating to the September 2012 mineral resource estimate
12 12
Section centered on
a 200 m thick base line
Section E1050
(featured on next slide)
UNDRILLED
UNDRILLED UNDRILLED UNDRILLED
Shahuindo Mineralization Continuous ore body outcropping on surface
Easily accessible
mineralization
One single ultimate pit
Feasibility Study (Sept 2012)
Strip ratio of 1.97:
Shallow pit (~100m)
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Typical Cross Section (E1050) Large disseminated gold deposit located at surface
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Long-Term Exploration Upside Numerous targets remain unexplored
Current Mineral Resource Long-Term Upside Potential
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Based on ~132,000 m of drilling 1. Within and near Central Corridor 2. North to South Corridor Trend 3. NW and SE Extensions 4. North Corridor (7,000m drilled to date)
5. NW base metal anomaly
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ADR Plant Heap Leach
Processing
- Conveying
- Agglomerating
- Stacking
Carbon Stripping/Reactivation
Carbon in Column
Gold Recovery Plant
Preg Pond Barren Pond
Technically Simple; Easily Scalable
Open Pit
Mine
1
2
3
100 m
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Tonnes per day mined 10,000 tpd
Gold Eq. Production ~90,000 oz/year
Capital Costs $131.8M
Sustaining costs LOM $47.8M
Power Source Electric Grid Power
Cash Operating Costs $552 / ounce
Total Operating Cost $11.94/t ore
Pad capacity 38 million tonnes
After Tax/Pre-Tax IRR 37.8% / 52.2%
Mine Life ~ 10 years
Waste to Ore Strip Ratio 1.9:1
Metallurgical Recovery 86%
**Please see mineral resource and mineral reserve tables in Appendices
**Metal price assumptions based on 3-year trailing averages as at Aug 31, 2012. The Feasibility Study titled
“Technical Report on the Shahuindo Heap Leach Project” and dated September 26, 2012 was completed by
Kappes, Cassiday & Associates (KCA) and Mine Development Associates (MDA) and is available on the
Company’s website and under the Company’s SEDAR profile at www.sedar.com).
Owner-Operated, Open-pit heap-leach mine (Base case metal prices: $1,450 Au; $27 Ag)
P&P Mineral Reserves 37.8Mt @
0.85 g/t containing 1,032,000 AuEq oz
Phase 1
Feasibility Study Results Phase I and projected expansion scenario to Phase II
Tonnes per day mined 30,000 tpd
Gold Eq. Production ~ 190,000 oz/year
Expansion Capital Costs ~ $100M
Sustaining costs LOM + $38M (total = $85M)
Power Source Electric Grid Power
Cash Operating Costs ~ $600/ounce
Total Operating Cost $10.00/t ore
Pad capacity 150 million tonnes
After Tax IRR ~ 35%
Total Mine Life ~ 10 years
Strip Ratio ~ 1.7:1
Metallurgical Recovery 86%
*Figures listed above are estimates and are preliminary in nature. The ability of Sulliden to expand
production beyond 90,000 ounces per year has not been the subject of a feasibility study and there is no
certainty that the production rate or proposed expansion will be economically viable.
Current mineral resources have the
ability to support a larger operation
Phase 2
Mineral Reserves represent only 40%
of the M&I resource equivalent
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Mine Infrastructure Layout
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Projected Mine Expansion
Feasibility Study (September 2012)
30k tonne-per-day mine
Easily expandable mine plan to
accommodate current mineral
resources and future mineral growth
The mineral Reserves represent only
40% of the M&I resource equivalent
10k tonne-per-day mine
Small footprint
Conveyor belts and ADR plant sized to
accommodate future expansion
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Company,
Project & Location
Technical
Report
Au
Price IRR
(Pre-Tax)
IRR (Post-Tax)
Annual
Production
Mine
Life
Cash
Costs/oz. CAPEX
Sulliden Gold,
Shahuindo, Peru Feasibility Study (Sept. 26, 2012)
$1,300 45.6% 33.0% 87,700 oz. 10 yrs $541 $131.8 M
PMI Gold,
Obotan, Ghana
Feasibility Study (Aug. 28, 2012)
$1,300 35% 28% 221,500 oz 11.5 yrs $626 $296.6 M
Rainy River,
Rainy River, Ontario
PEA (Aug. 29, 2012)
$1,250 21% Not Provided 308,000 oz. 16 yrs $563 $767 M
Lydian Intl.,
Amulsar, Armenia
Feasibility Study (Sept. 5, 2012)
$1,200 27.7% Not Provided 118,000 oz. 12 yrs $469 $270 M
($146 sust.)
Agnico Eagle,
La India, Mexico Feasibility Study (Sept.4, 2012)
$1379 41% 31% 90,000 oz. 8 yrs +/- $500 $158 M
Torex Gold,
Morelos, Mexico
Feasibility Study (Sept. 4, 2012)
$1,276 -- 24.2% 337,000 oz. 10.5 yrs $421 $675 M
($86M sust.)
Guyana Goldfields,
Aurora, Guyana
Feasibility Study (Jan. 29, 2013)
$1,300 44% 38% 194,000 oz. 17 yrs $527 $205 M
($356M sust.)
Attractive Economics
1 Silver prices in first four cases are based on gold to silver price ratio of 52.4 2 Cash operating costs per ounce represent the mine site operating costs such as mining, processing, metal transport, refining, administration, government imposed royalties and
government imposed 8% worker’s profit sharing, net of silver by-product sales revenue and are exclusive of amortization, reclamation, capital, and exploration and development costs. Due
to the inclusion of royalties and the 8% workers profit sharing in cash costs per ounce, cash costs increase or decrease as the price of gold fluctuates up or down.
Metal price sensitivity (Feasibility Study, Sept 2012)
Comparable gold oxide projects
Gold Price (US$/oz) Silver Price
(US$/oz) 1
IRR
Pre-Tax (%)
IRR
After-Tax (%)
Cash Costs
per oz Au 2
$900 $17 19.0% 13.5% $509
$1,100 $21 33.2% 23.9% $524
$1,300 $25 45.6% 33.0% $541
$1,500 $29 56.9% 41.3% $559
$1,415(Feasibility Study Base Case) $27(Feasibility Study Base Case) 52.2% 37.8% $552
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$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Gold
Price
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Gold
Price
Shahuindo is located among some
of the lowest cost mines in the world
Profit
Margin
Cost to
produce
an ounce
of gold
Cash C
osts
A
ll-in
costs
Sulliden’s Shahuindo Project:
$552/oz; 0.84 g/t (FS, Sept 2012)
Buenaventura & Southern
Peru Copper’s Tantahuatay:
~$360/oz; ~0.7 g/t (2013)
Buenaventura & Newmont’s La Zanja:
~$580/oz; ~0.7 g/t (2013)
Newmont’s Yanacocha:
$650-700/oz; <1.0 g/t (2013 est.)
Barricks’ Lagunas Norte:
$361/oz; <1.0 g/t (2013)
Rio Alto’s La Arena:
$569/oz; 0.58 g/t (Q3 2013)
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Major Gold Producers
Average all-in
costs in 2013*:
$1,086/oz
vs.
All-in costs*:
$826/oz
(*Based on company reports from the following
companies: Barrick Gold, Goldcorp, Newmont
Mining, Yamana Gold, Randgold, Kinross, Agnico-
Eagle, Eldorado Gold, Goldfields and Centerra)
Cost to
produce
an ounce
of gold
(*Total LOM cash cost/oz. as reported
in the Feasibility Study from Sept. 26,
2012. See cautionary notes related to
the Feasibility Study on slide 2.)
Profit
Margin
All-
in c
osts
Low Cost, High Margin Project Resilient to fluctuating gold prices
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Permitting Milestones
Completed
EIA Document
Components
Baseline Studies
Feasibility Study
Impact Analysis &
Management Plan
2nd round
of official
community
workshops (Nov 2012)
Final Public
Audience (March 2013)
Construction
permit received
for electrical
substation project (April 2013)
1st round
of official
community
workshops (Feb 2011)
Submission of
EIA report to
Peru government
Public Participation Plan
Executive Summary
Completed Document
(Dec 2012)
EIA Approval (Sept 2013)
Construction
Completion of electrical
substation construction
expected in H2 2014
Mine construction
expected to start in 2014
Estimated
Production
Start (2015)
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Receipt of
final process
permits and
authorizations (2014)
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2014 - Upcoming Catalysts
Receipt of mine construction permit
Completion of electrical substation project
Completion of project funding
Start of mine construction
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Appendices
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Corporate Structure & Research
Shares Outstanding
Warrants
Options
Fully Diluted
310.3M
18.9M
26.5M
355.7M
Steve Parsons
Chris Thompson
Andrew Kaip
Ovais Habib
Richard Gray
George Albino
Kerry Smith
Humberto Agurto
Humberto León
Adam Melnyk
Andrew Mikitchook
Van Eck (“GDXJ” ETF)
Agnico-Eagle Mines Ltd
RBC Global Asset Mgmt
Beutel, Goodman & Co.
Standard Life
Aberdeen International
AGF Investments
Maple Leaf Funds
Socrate Capital
Mackenzie Financial
Trading Symbols:
Capitalization Summary:
Stock Performance:
Share Price (April 29, 2014, TSX)
52-week Range (TSX)
Average Daily Volume (3 month)
Market Capitalization
$0.80
$0.60 - $1.17
~600,000
~$250M
Research Coverage
~$49.7M (Q3 2014, Jan 31, 2014)
Working Capital:
Major Shareholders:
Toronto, Canada
TSX: SUE Lima, Peru
BVL: SUE United States
OTCQX: SDDDF
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Proven Management Team
Peter Tagliamonte, P.Eng. MBA, Chief Executive Officer & Chairman 30 yrs of experience in mine building and operations with particular focus in Central and South America
Former CEO of Central Sun Mining and COO of Desert Sun Mining
Justin Reid, MSc., MBA, President & Director Geologist and capital markets executive with +20 yrs focused in the mineral resource space
Former senior mining analyst at Cormark and Managing Director Global Mining Sales at NBF
Denis C. Arsenault, CA, CPA, Chief Financial Officer +27 yrs of professional experience , including senior financial positions in the mining sector
Joe Milbourne, FAusIMM, VP Operations & Technical Services Metallurgist with +30 yrs experience in Central and South America
Former head of process engineering at AMEC Mining and Metals. International experience with BHP, Eldorado and Cominco
Stéphane Amireault, MScA., P.Eng., VP Exploration Professional engineer with +20 yrs experience in gold exploration
Extensive experience in Central and South America, particularly in Peru
Dr. Javier Fernandez Concha-Stucker, L.L.B., Country Manager, Peru Holds a Masters Degree in Jurisdictional Politics and has been practicing law in Peru for over 20 yrs
Experienced Board of Directors
Peter Tagliamonte, P.Eng., CEO & Chairman
Stan Bharti, P.Eng, Co-Chairman Executive Chairman of Forbes & Manhattan, Inc., a private merchant bank operating worldwide
Justin Reid, MSc., MBA, President & Director
James H. Coleman, L.L.B., B.B.A., QC, Director Senior Partner of Norton Rose; extensive experience in international law focused on the energy and resource sectors
Bruce Humphrey, P.Eng., Director +35 yrs of experience working in senior management roles with both junior and senior mining companies
George Faught, CA, Director +25 yrs of senior management, financial management, corporate development and operating experience
Don Dudek, Director Exploration geologist with +30 yrs of experience who has held various roles with junior and senior exploration and mining companies
Hon. Pierre Pettigrew, p.c., Director International business consultant; served Canada as Minister of Foreign Affairs, International Trade and the International Cooperation
Sulliden Management & Board
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NI 43-101 Mineral Resources September 2012
Gold
Contained
Ounces
Gold
Grade
(g/t)
Silver
Contained
Ounces
Silver
Grade
(g/t)
Tonnes (t)
Gold
Grade
Eq.g/t
Total Measured & Indicated
Mineral Resources 2,438,000 0.52 33,370,000 7.1 147,310,000 0.54
Measured Mineral Resources
Oxide (Reported at 0.2 g/t cut-off) 766,000 0.59 10,530,000 8.1 40,500,000 0.62
Mixed* (Reported at 0.35 g/t cut-off) 19,000 0.75 850,000 33.7 780,000 0.964
Indicated Mineral Resources
Oxide (Reported at 0.2 g/t cut-off) 1,624,000 0.48 21,080,000 6.3 104,840,000 0.51
Mixed* (Reported at 0.35 g/t cut-off) 29,000 0.77 910,000 23.8 1,190,000 0.92
•The Mixed material is classified as a transition zone that contains both oxide and sulphide material. The higher cut-off grade used to determine economical
value for the associated Feasibility Study takes into account the lower metallurgical recoveries that were observed in the metallurgical test results of the
transitional material. Mixed ore will be processed as oxides.
The mineral resource estimate was prepared by Mine Development Associates (“MDA”) in accordance with National Instrument 43-101.
Please refer to press release dates September 5, 2012 for detailed parameters of the mineral resource calculation.
Total Inferred Mineral Resources 1,628,000 0.71 46,560,000 20.4 71,000,000 1.20
Oxide (Reported at 0.2 g/t cut-off) 124,000 0.40 1,330,000 4.3 9,570,000 0.42
Mixed* (Reported at 0.35 g/t cut-off) - - 0.68 10,000 12.2 20,000 0.76
Sulphide (Reported at a 0.5 g/t AuEq cut-off) 1,504,000 0.76 45,220,000 22.9 61,410,000 1.20
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Notes related to the Mineral Reserve Table:
See press release dated September 26, 2012. Mineral reserves are reported based on open pit mining within designed pits based on variable gold g/t cutoff
grades where Oxide: 0.35, 0.35, 0.30, 0.35, 0.30, 0.30 for Phases 1, 1B, 2, 3, 4, and 5 respectively; and Mixed: 0.35, 0.35, 0.33, 0.35, 0.33, 0.33 for Phases 1,
1B, 2, 3, 4, and 5 respectively. These phases represent the sequential operational phases of the mine. The mineral reserves incorporate estimates of dilution
and mining losses. The cut-off grade and pit designs are considered appropriate for long term metal prices of US$1,340/oz gold and US$25/oz silver. Rounding
of the numbers in the mineral reserves listed above may cause apparent inconsistencies.
Stéphane Amireault, P.Eng., Vice President, Exploration for Sulliden Gold Corporation Ltd. Mr. Amireault is Sulliden’s Qualified Person as defined by NI 43-101.
Gold
contained
(ounces)
Gold
grade
(g/t)
Silver
contained
(ounces)
Silver
grade
(g/t)
Tonnes (t)
Gold
grade
Eq.g/t
AuEq
Ounces
Total P&P
Mineral Reserves 1,022,000 0.84 11,561,000 9.5 37,847,000 0.85 1,032,000
Oxide 1,015,000 0.84 11,404,000 9.4 37,589,000 0.85 1,026,000
Mixed 6,000 0.76 157,000 18.9 258,000 0.78 6,000
Proven Mineral Reserves
Oxide 434,000 0.90 5,008,000 10.4 14,994,000 0.91 438,000
Mixed 4,000 0.71 93.000 17.6 165,000 0.72 4,000
Total 437,000 0.90 5,102,000 10.5 15,159,000 0.91 441,000
Probable Mineral Reserves
Oxide 582,000 0.80 6,396,000 8.8 22,595,000 0.81 588,000
Mixed 3,000 0.87 64,000 21.3 93,000 0.89 3,000
Total 584,000 0.80 6,459,000 9.4 22,688,000 0.81 591,000
Mineral Reserves represent only approximately 40%
of the gold ounces from total oxide mineral resource
NI 43-101 Mineral Reserves September 2012
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Shahuindo Social Programs Sulliden plays an active role in the sustainable development of the communities surrounding its project
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Initiated in October 2012
Sulliden has partnered with recognized Peruvian
training institutions to provide training programs in: Masonry, Ironworks, Electrical Wiring & installations, Front end loader operation,
Excavator Operator, Welding, Cooking and Agriculture and Farming training.
These hands-on programs aim to prepare the students for potential
future employment at Shahuindo, and in local and regional markets
In partnerships with:
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Local Training Programs
29
Sembrando Oportunidades Locales (SOL)
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In partnerships with:
Initiated in March 2014, as part of the training program
The pilot Chef Training course if offered to the “Club de
Madres” (Mother’s Club) of the nearby town of San Jose.
30 30
Ex: ”COEVAC” Avocado Project
Agriculture Cooperative
Initiated in 2013, the aim of the COEVAC cooperative is to help improve farming practices
The cooperative is composed of farmers and entrepreneurs in the nearby Condebamba Valley
The pilot avocado project enabled the trade of avocados to the Lima market where farmers are able to
fetch a premium for their produce. The first container of avocados was shipped to Lima in October 2013.
31
TSX (Toronto): SUE
BVL (Lima): SUE
OTCQX (US): SDDDF
Investor Relations
+1 (416) 861-5805
Sulliden Gold Corporation Ltd.
65 Queen St W, Ste 800, Toronto, Ontario M5H 2M5
www.sulliden.com
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