Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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TSX-V: AIA April 2014 Maverick Gold Project Advancing toward Gold Production in 2013 Near Term Gold Production In Manitoba Canada

description

Updated presentation on our re-start plans for the past producing Puffy Lake Mine. Auriga Gold Corp. is an emerging Canadian gold producer focused on re-starting the Puffy Mine and expanding gold resources on its Puffy and Nokomis gold deposits (collectively the "Maverick Gold Project"). The Company plans to upgrade and expand the resources at the Maverick Gold Project, initiate test mining, complete feasibility studies of mineral reserves, and bring the Puffy Mine back into production. The Puffy Mine includes a 1,000 tpd flotation mill with a replacement value in excess of $50 million, over 7,000 meters of developed underground ramp to 135 metres depth, is fully road accessible and close to existing mining infrastructure. The Maverick Gold Project is located in the Flin Flon Greenstone Belt of Central Manitoba. To view current images of the property and mill, please see www.aurigagold.ca/s/photogallery.asp

Transcript of Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

Page 1: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

TSX-V: AIA April 2014

Maverick Gold Project Advancing toward Gold Production in 2013

Near Term Gold Production

In Manitoba Canada

Page 2: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

A I A :T S X V

Forward-Looking Statements

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Some statements contained in this presentation are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource and reserve statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production.

Historical resources in this presentation are historical estimates that predate NI 43-101 and are not compliant with current definitions, and have not been verified by the company; consequently, they should not be relied on by investors.

www.aurigagold.ca

Page 3: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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Auriga Gold Management and Directors Finance, Development and Operational Expertise

3 www.aurigagold.ca

Gorden Glenn, Chairman, President & CEO

Over 25 years experience in the financial industry as Investment Banker (TD Securities and Desjardins) and Research Analyst as well as various roles in mining companies evaluating economic and technical validity of mostly Canadian projects.

James D.A. White, Director

Mr. White is the Managing Partner of Baynes & White, a Toronto-based pension and benefits actuarial consulting firm.

Brian Robertson, P.Eng., Director

Over 30 years experience in corporate management, exploration programs, project management, mine permitting, construction, development and operation as well as the evaluations or corporate acquisitions.

Chris Irwin, LL.M., Interim CFO, Director

Mr. Irwin is President of Irwin Professional Corporation, a corporation providing legal services mainly to the natural resource sector.

TBD, New Director

Operations and development experience

TBD, New Director

Operations and development experience

Board of Directors

Consultants and Advisors

Notice of Alteration for Open Pit Development (NOA) – April 2014 Water Permit Application – April 2014

Nokomis Initial NI 43-101 Compliant Resource – April 2014 New PEA– June 2014 PEA to incorporate updated Resources (PL and Nokomis), new open pit mine plan and Minrail SAMSTM technology in new u/g mine plan

PL Deposit Resource Update – April 2014

New Underground Mine Plan – April/May 2014 To be incorporated in Updated PEA – June 2014 Test Mining – Fall 2014

A Century of Exploration, Development, Operations and Finance Experience

Page 4: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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Near Term Gold Production Opportunity

www.aurigagold.ca 4

Strategic Advantage = Superior Gold Investment Opportunity • Favourable mining jurisdiction in Manitoba with significant infrastructure in place • Low $18 million capital requirement to re-start gold production at +40,000 oz per year • Existing mining lease with associated operating permits in place • Lower risk open pit mine start-up scenario developed • Underexplored regional gold bearing geological environment High Leverage to Gold Price • Low Shares Outstanding • Attractive valuation Enterprise Value/ounce and Au oz/share vs peer group companies • Management experienced at discovery, resource expansion, development and

operations Near-term Objectives Updated NI 43-101 complaint Resources – M&I Rsc 327,900 oz and Inf Rsc 438,600 oz • Targeted drilling to convert Inferred resources to Measured+Indicated • Update PEA to include new resources and new underground mine plan using Minrail’s

SAMSTM technology • Underground test mining program fall 2014

Success of 2014 Work Program will Support Re-Start of Gold Production in 2015

Page 5: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

A I A :T S X V

Maverick Gold Project Location Flin Flon Gold and VMS Base Metal District

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A Proven Gold Mining Camp with Excellent Infrastructure

MAVERICK GOLD PROJECT

FLIN FLON

SNOW LAKE

SHERRIDON

CRANBERRY LAKE

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A I A :T S X V

Auriga’s Path To Production

www.aurigagold.ca 6

July 2012 to December 2013

Corporate Restructuring

Re-focus on MGP

Reduce Burn rate

H1/2014

Initial Nokomis NI43-101 Resource

Updated PL Deposit Resource

Update mine plan/detailed engineering

Updated PEA/PFS

Re-Start Efforts Delayed by Weak Equity Capital Markets

November

2010

Initial PL

Deposit NI43-

101 Resource

PEA

January

2012

Property

Acquisition

$3.5 mln

August

2011

January

2012

AIA.V vs HUI

Page 7: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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Maverick Gold Project, Then and Now Re-start of Mining Operations Targeted for Late 2015

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Historic Mine Development/Operations

Operated from Jan -88 to Apr-89 by Pioneer Metals

Produced 29k oz from 1988-1989 from 370,000 tonnes

1987 Kilborn feasibility recommended 500 tpd mill:

Capex: ~32 mln in 1987/88

Pioneer actually built mill with capacity of 1,000 tpd

Mill still in excellent condition today

6.9 km u/g drifting to a vertical depth of 130 m

1993 Kilborn feasibility Rsc and Rsv:

Resource: 524,376 oz @ ~7.6 g/t Au

Reserve: 184,200 oz @ 6.7 g/t Au

Auriga Gold Development Work at Maverick

Updated PL and New Nokomis Resource Estimates – Total Measured and Indicated mineral resources

increased by 88% to 327,900 ounces gold – Total Inferred mineral resources 438,600 ounces – In Pit Measured and Indicated resources

increased by 279% to 121,100 ounces Au grading 4.01 g/t Au

Positive PEA on open pit and U/G mining re-start

Low capital cost - $18.1 million

Production - 40,000 oz per yer

NPV (pretax 5%): $95.4 Million

(pretax 8%): $79.6 Million

IRR (pretax) 84%

Exploration and re-start upside

PL Deposit still open at depth and along strike

Numerous geophysical targets identified

M Zone on West Limb of Puffy Fold

New PEA for 2014 to include:

New Nokomis in pit resource

New open pit and underground mine plan

Minrail SAMSTM test stope planed fall 2014

www.aurigagold.ca

To

nn

age

(tp

d) G

rade

(g/t)

00.511.522.533.544.5

0

200

400

600

800

1000

1200

Jan

-88

Feb

-88

Mar

-88

Ap

r-8

8

May

-88

Jun

-88

Jul-

88

Au

g-8

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Sep

-88

Oct

-88

No

v-8

8

De

c-8

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-89

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-89

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-89

Ap

r-8

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Tonnage Grade

2014 Program Focused De-Risking and Resource Optimization

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Auriga Gold Corp. Capital Structure

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Auriga Gold Corp. (AIA: TSX-V)

Share data and cash position as of March 24, 20141

Shares Outstanding 15,336,251

Warrants and Options O/S 1,299,794

Fully Diluted 16,636,045

Market Capitalization ~$4.5 million

Cash Position (March/14) $0.5 million

Debt ~$1.3 million

Options and Warrants

Warrants / Options

Avg. Exercise

Price

Options 782,500 $0.90

Common share warrants 2 517,294 $4.67

2) Expiring between April 2014 – February 2017

Significant Holders Ownership

Management and Directors ~9.0%

Pioneer Metals (Barrick Gold) ~4.1%

AIA: TSX-V Share Price

Source: tmx.com and Auriga Gold

www.aurigagold.ca

1) Shareholders approved a 10 old for 1 new consolidation Jan. 2, 2014

Low Shares Outstanding = High Leverage to Gold Price and Production

Page 9: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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Maverick Gold Project Existing Infrastructure – Permits - Resource Expansion Potential

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Historic Au Production

• Produced 28,000 oz from 1988-1989

• Existing 1,000 tpd mill

• 7,000 m underground mine workings

• Limited exploration on property

Resource Expansion Potential > 1 M oz Gold

• NI-43-101, M+I Rsc 327,900 oz Au and Inf Rsc of 438,600 ounces

• Expand and upgrade gold resources at PL and Nokomis deposits by step out and infill drilling

• Bonanza grades at Nokomis - 7.63 m with 125.08 g/t Au at Nokomis

• Numerous drilling targets outlined from VTEM survey along 20 km gold bearing horizon

• M Zone target – 1.5 km anomaly

• Drill hole A3-48 in 2011 intersected 0.50m @ 23.68 g/t Au at depth of ~250m vertical

• Follow-up ddh planned for 2014

Existing Infrastructure and Permits = Strategic Advantage

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A I A :T S X V

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Maverick Gold Project PL Deposit – Geology Surface Plan and Section

OPEN

PL Deposit

Updated NI 43-101 Resource April 14 2014

In Pit M&I Rsc increased by 151% to 80,400 oz Au @4.40g/t

Underground M&I Rsc increased by 46% to 206,800 oz Au @5.93g/t

www.aurigagold.ca

A3-85 – 2.3 m @ 12.6 g/t Au and 0.5 m @ 24.3 g/t Au

A3-83 – 2.0 m @ 12.0 g/t Au

A3-84 – 6.2 m @ 7.6 g/t Au

A3-81 – 1.7 m @ 47.2 g/t Au, incl. 0.5 m @ 145.5 g/tAU

Resource Still Open Down Dip to North East

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Community and Social Responsibility Sherridon – Cold Lake, Manitoba

www.aurigagold.ca

Strong Local Community Support

• May 7, 2014 Community Update meeting - President and CEO Gorden Glenn and Director Brian Robertson provide MGP update and respond to questions and concerns of the local community

• Sherridon - Cold Lake, Manitoba is located approximately 13 km north of the MGP • The MGP and the local community share regional infrastructure including an all weather road, the

Keewatin Railway Company (KRC) and access to low cost, clean hydro power • We also share the same vision of re-starting sustainable, mining operations with minimal impact

to the environment • The community of Sherridon - Cold Lake, Manitoba expressed their strong support of the MGP

Page 12: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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Maverick Gold Project - PEA From Jan. 2012 - based on Aug. 2011 NI 43-101 Resource Estimate

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• Open pit cost anticipated at $650/oz excluding sustaining capital

• 20.3% of gold production from initial low-risk open pit production

• $949/oz average LOM operating cash cost including $77/oz sustaining capital

• $18.1 million Capex to production

• $130.5 million cumulative cash flow at $1400/oz

• Payback in 20 months

www.aurigagold.ca

$50,000,000

$25,000,000

$0

$25,000,000

$50,000,000

$75,000,000

$100,000,000

$125,000,000

$150,000,000

$175,000,000

$200,000,000

oz

10000 oz

20000 oz

30000 oz

40000 oz

50000 oz

60000 oz

OuncesRecovered

CumulativeCash Flow at$1400 /oz AuCumulativeCash Flow at$1600/oz Au

-1 1 2 3 4 5 6 7 8 -1 1 2 3 4 5 6 7 8 $0

$200

$400

$600

$800

$1,000

$1,200

$1,400

oz

10000 oz

20000 oz

30000 oz

40000 oz

50000 oz

60000 oz

U/G

Open Pit

OperatingCost/oz

TotalOp+SustCost/oz

Short Payback, Attractive Sub-$1000/oz AISC

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Maverick Gold Project – Positive PEA From Jan. 2012 - based on Aug. 2011 NI 43-101 Resource Estimate

www.aurigagold.ca 13

Average Annual Production: 45,000 oz/annum Au

Recoverable Gold1: 348,000 recovered oz Au @ avg. of 5.8 g/t Au diluted

20.3% from open pits; 79.7% from u/g

Milling Rate: 750 tpd 1

Mill Recovery: 90%

Life of Mine: 7.5 years

Total CAPEX: $18.1 M

(incl. $3.02 m contingency)

Average LOM C2 cash cost: CAD$949/oz

Undiscounted Cash Flow (pretax) :$130 M

Payback : 20th month

of processing ore

NPV (pretax, 5%) 2: $95.4 M

IRR (pretax): 84%

1. Initial Mine Plan in February 2012 PEA 2. Based on gold at USD$1400/oz

Gold price, operating cost and capital cost sensitivity analysis @ 5% NPV

Updated PEA Planned for Q2 2014

Page 14: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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Maverick Gold Project – PL Deposit Longitudinal Section Facing West

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Longitudinal section looking west showing existing underground workings, proposed open pits, and proposed stopes from all zones. January 2012 PEA and August 2011, NI43-101 Resource Estimate

Pit 1

Recovered Ounces Open Pits: Pit 1: 20,760 oz Pit 2: 4,950 oz Pit 3: 6,060 oz Pit 4/5: 37,740 oz Total Pits: 69,510 oz Underground Mining Areas: Area 1: 49,000 oz Area 2: 124,000 oz Area 3: 108,000 oz Area 4: 23,000 oz Total Undergound: 304,000 oz

Pit 4/5 Pit 1 Pit 2 Pit 3

www.aurigagold.ca

AREA 1

AREA 3

AREA 2

AREA

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Updated PEA to Include Optimized Open Pit and Underground Mine Plans

Page 15: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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Maverick Gold Project Key Operating Permits and Infrastructure (1000 tpd Mill) In Place

Page 16: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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New Underground Mine Plan – SAMSTM Specialized Shallow Angle Mining System

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• Innovative modular concept and design

• Very high proportion of the mining tasks are mechanized

• Eliminate the use of manual drills for drift development • Jackleg vs Long Tom and Jumbo

• Introduction of long hole productivity techniques • Hydraulic vs pneumatic

• Enhanced work conditions and modular design result in higher productivity

• www.minrail.ca

www.aurigagold.ca

Auriga is De-Risking MGP with New Underground Mine Plan and Innovative SAMSTM

SAMSTM developed by Minrail Inc., of Val-d'Or Quebec

Minrail has developed a unique and innovative mining system for shallow-angle mining operations (S.A.M.S.™) that promises to revolutionize mining operations as we know them today.

Page 17: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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Old Underground Mine Plan – Conventional

17 www.aurigagold.ca

Accepted Narrow Vein Mining Methods are Manually Intensive and Less Productive

Page 18: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

A I A :T S X V

New Underground Mine Plan – SAMSTM Specialized Shallow Angle Mining System

18 www.aurigagold.ca

Innovative Mechanized Rail-Based System is Safer with Higher Productivity

Page 19: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

A I A :T S X V

Maverick Gold Project – Exploration Upside

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Targeting in excess of 1,000,000 ounces gold

Well-defined major regional gold mineralized structure at the northern border of Flin Flon greenstone belt

Drill program planned to expand resources

Maverick Property covers over 20km of strike length

Target has well-defined geophysics trend with several showings found along strike

Updated MGP NI 43-101 In Pit M+I Rsc 121,100 oz @ 4.01 g/t

Au Underground M+I Rsc increased by

46% to 206,800 ounces Au Total M+I Rsc 327,900 @ 5.93g/t Au Total Inf Rsc 438,600 ounces Au

M Zone Drill hole A3-48

0.50m @ 23.68 g/t Au

PL Deposit and Onsite Mill

Nokomis Deposit Ind Rsc 40,700 oz Au Inf Rsc 19,100 oz Au

www.aurigagold.ca

Property Unexplored away from Known Deposits

Page 20: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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Maverick Gold - Nokomis Deposit Satellite Deposit just 8km Northeast from the Maverick Mill

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• Potential open pit satellite deposit • Confirmation drilling program complete

• Indicated mineral resource of 40,700 ounces • Inferred resource of 19,100 ounces of gold

• Initial high-grade gold intercepts • 125.08 g/t over 7.6 m (incl. 1,830 g/t over 0.5 m); • 12.27 g/t over 5.2 m; • 5.1 g/t over 6.4 m; • 9.65 g/t over 5.6 m (incl. 62.23 g/t over 0.5 m)

High-grade near-surface mineralization

www.aurigagold.ca

Incremental Mill Feed from Nokomis Enhances MGP Economics

Page 21: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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VTEM anomaly on western limb of the Puffy fold has strike length of over 1.5 km

Historic drilling only tested horizon at very shallow depths, well up dip from the top of the conductor

2011 AIA drill hole successfully tested the down dip projection of horizon and intersected significant gold mineralization

23.7g/t over 0.5 m at 250 m

Priority target for follow-up drilling in 2013/14

Maverick Gold Project – M Zone Significant Exploration Upside

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High Priority target for Follow-up Drill Program

Page 22: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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Maverick Gold Project Near Term Gold Production with Significant Expansion Potential

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Area consolidation

Toll milling opportunities

Resource expansion on

major structure

++ Extend Mine Life

Exploration success on

Maverick Gold

M Zone Exploration

Maverick Property

covers 20 km of major

regional mineralized

structure

+ Resource Expansion

Nokomis Deposit

In Pit Indicated Resource 40,700 oz

In Pit Inferred Resource 26,100 oz

8 km from Mine and Mill

Contributes to full mill capacity

at 1000 tpd

>50,000 oz/yr

Combined U/G and open pit

PEA Study

750 tpd

7.5 year mine life

348,000 recovered

gold ounces

45,000 oz/yr

www.aurigagold.ca

Solid Plan for Growth and Value Creation

Page 23: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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Auriga Gold Investment Highlights

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Near-term gold production, with excellent exploration upside

Past producing property, with significant onsite infrastructure

1,000 tpd mill, ancillary facilities, ramp and underground workings

Road access to property, access to grid power and railway

Permitted for quick re-start

April 2014 NI 43-101 Resource Estimate:

Total M+I Rsc 327,900 @ 5.93g/t Au

Total Inf Rsc of 438,600 ounces Au

Open pit and shallow underground

Positive 2012 PEA on U/G and open pit test mining on near surface resources

Annual production of 45,000 ounces at C2 cash cost of $949/oz

CAPEX: $18.1 Million;

un-discounted cash flow: $130 Million

Management experienced at discovery, resource expansion, development and operations

Resources, PEA and mine plan being updated Q2 2014

www.aurigagold.ca

AIA’s Value Proposition is One of the Best in the Jr Gold Development Sector Today

Page 24: Auriga Gold Corp. (AIA.V) - Maverick Gold Project Presentation May 2014.

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For more information:

Auriga Gold Corp. AIA:TSXV +1 416 985 2785 365 Bay Street, Suite 400 Toronto, Ontario M5H 2V1 www.aurigagold.ca AIA_AurigaGold AIA.AurigaGold

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