WestMountain Index Advisor/Terra mining corp

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Corporate Presentation September 2011 1

description

Most recent corporate presentation on current status and up coming opportunities

Transcript of WestMountain Index Advisor/Terra mining corp

Page 1: WestMountain Index Advisor/Terra mining corp

Corporate PresentationSeptember 2011

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“Safe Harbor” Statement under Private Securities Litigation Reform Act of 1995:

Statements in this presentation regarding WMTN/ Terra Mining Corporation business, which are not historical

facts, are "forward-looking statements" that involve risks and uncertainties and actual results and outcomes

may differ materially from the results and outcomes discussed in the forward-looking as a result of either the

matters set forth or incorporated in this presentation. Specifically, the pro-forma financial summaries and

balance sheet are a possible projections of future results based on the WMTN/ Terra Mining Corporation

business plan. For a discussion of such risks and uncertainties, which could cause actual results to differ

from those contained in the forward-looking statements, see "Risk Factors" in the Company's most recent

Form 10-Q and 10-K. Investors and prospective investors should read this presentation in conjunction with

the Company's reports on Form 10-K, Forms 10-Q, and other documents as filed with the Securities and

Exchange Commission. The Company undertakes no obligation to revise or update any forward-looking

statements in order to reflect any event or circumstance that may arise after the date of this presentation.

Safe Harbor Statement2

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Our Company

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Management Team4

Greg Schifrin – Chief Executive Officer, President & DirectorSuccessful businessmen and professional geologist with 28 years of exploration and mining experienceFounder and President Minex Exploration & Selkirk Environmental, President and Director Silver Verde May Mining Company, CEO Golden Eagle Mining, BSc in Geology & “Qualified Person”

James Baughman – Chief Operating Officer & DirectorGeologist & business executive with 25 years of gold and uranium exploration and development experienceCo-founder High Plains Uranium, led successful TSX IPO (2005); Director Big Bear Mining; BSc Geology & “Qualified Person”

Mark Scott – Chief Financial Officer, SecretaryDeep & varied executive experience in finance, capital markets, strategic planning and SEC reportingIA Global, Visualant, Digital Lightwave, CPA, National Association of Corporate Directors

Mike Lavigne – Director30 Years experience in financing small capsPrincipal of Capital Peak Partners and CEO of Silver Verde mining

Kevin Cassidy-DirectorManaging Member and Founder of Logic International ConsultingFormer COO of Bank Julius Baer and Managing Director of UBS

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Company Reach

WestMountain Index Advisors, Inc. (WestMountain Gold) engages in the

acquisition, exploration and development of gold properties.

WestMountain has two wholly owned subsidiaries

Terra Mining Corp (TMC) which engages in the acquisition of high quality gold

projects

Terra Gold Corp. (TGC) which is engaged in the exploration and development

of the Terra Gold Project in Alaska

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Terra “Bonanza Gold” Project

Terra Project, Southwest Alaska

Focused on developing a high grade underground 30,000 ounce a year gold operation with significant upside production potential.

High grade vein structure

Control 60 square miles of state claims

No debt

One million ounce growth potential

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Project Background

Gold bearing veins first discovered and claimed by Kennecott in 1997

Ben Porterfield, a Kennecott geologist retain claims and artisanal mines vein

from 2000-2010

Porterfield leases property to Anglo Gold Ashanti Exploration USA in 2005

for the first year drill program

International Tower Hill Mines LTD (spin out from Anglo Gold) advances

project 2006 and 2007 with drilling

Terra Mining acquires project through LOI in 2/2010 and JV Agreement

9/2010

Total investment 2005-2007 was $6 million with 168,000 oz of gold and

310,000 oz of silver resources identified through the three seasons of drilling

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Corporate Status – September 2011

Shareholders Shares Ownership

Share Ownership

Outstanding WMTN shares 18,419,899

Warrants 6,061,095

Fully Diluted 24,480,994 100%

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Why Terra?

Public company – WMTN as of February 28, 2011

Terra has 168,000 oz gold resource confirmed with 1,000,000 oz expected,

subject to drilling

Alaska is a mining friendly jurisdiction

2011Financing

Use of Proceeds

Terra Project $ 10,000,000

G&A $1,500,000

Project Generation $1,500,000

Terra Mining Corp is seeking financing for operations of $13 million US.

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Valuation – Terra offers significant upside

Terra’s pre-money valuation of approximately $16 million is conservative using levels far

below current gold spot price of $1,500 per ounce. Management has significantly

discounted the expected gold resources of 1,000,000 ounces.

Inferred Gold

Resource

10% Au spot * 100% Au Spot Expected Gold

Resource

10% Au Spot* 100% Au Spot

168,000 Au $180 $1,800 1,000,000 Au $180 $1,800

Value $30,240,000 $302,000,000 Value $180,000,000 $1,800,000,000

*Note-10% Gold Spot represents industry standard for inferred ounces of gold in ground;

100% Gold Spot represents recovered gold but value does not include operating and processing costs.

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Terra financial pro forma – “Robust”

Operation Plans call for a conservative annual production of 30,000 ounce per year of gold in an underground mining operation at Terra when fully deployed, which equates to $30M per year in profits at full operation.

The Company’s assumptions conform to the International Tower Hills (ITH) resource report dated 2/1/08.

Item Assumption

Gold Price per ounce $1,000

Silver Price per ounce $20

Mining rate per day 250 tons

Production per year 90,000 tons

Yearly gold production 33,000 ounces

Yearly silver production 63,000 ounces

Gold grade 0.390 ounce per ton

Item Assumption

Recovery 95%

Cash Costs $434 per ounce

Capital Required $40 million-Secondary Financing

Terra Interest 80%

ITH Royalty 2%

Ben Porterfield Royalty 2% (Buydown 2%)

Mine life 10 years

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Terra JV Agreement

Definitive JV Agreement between TMC & ITH.

Joint Venture position: 80% TMC & 20% ITH

TMC operator

Cash Requirements of Terra Project

• $450,000 option payments

• $9,050,000 work commitments

Royalty Payments

• Ben Porterfield – 4% NSR (2% Buydown option)

$100,000 yearly advance royalty payment

• ITH – sliding scale 0.5% - 5% reflective of gold price

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2011 Field Season Highlights13

Expansion of Exploration Permit for Bulk Sample and Milling finalized May 2011

CoreOne Drillers commenced drilling July 2011 to expand resource base

Bulk sample gold mill construction on site July 2011

Staffed with geologists, miners & mill workers

Road Construction to Ben Vein

Moved 111 tons of tailings with 1.5 opt AU

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Road to Vein 14

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15Drilling 2011

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Terra Location130 miles northwest of Anchorage in an emerging mining region.

Kiska’sWhistler (5.75M oz

Au eq) is 35 miles east

Millrock & Kennecott have

properties near Terra

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Terra Project site view17

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Terra Project

High grade gold veins with visible gold

NI 43-101 compliant report (2010)

168,000 ounces gold inferred resource

310,000 ounces silver inferred resource

Simple metallurgy – gravity concentration

Vein open in two directions (depth & north)

Five additional vein sets untested

Veins widespread – 1.3 miles x 500 ft.

Surface work program for 2010.

Drill program planned for 2011

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Ben Vein drilling results – Bonanza Vein System

Plan view of Ben Vein drilling –

2005, 2006, & 2007Long section of Ben Vein (looking east) –

open to north and at depth

N S

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Terra Upside – Additional gold targetsTerra has the potential to grow in size at the Ben Vein as well as additional discoveries

Claim block relatively unexplored

1,557 rock, soil, & silt existing samples

Good inventory of prospecting sites

Numerous gold targets

Copper targets

Personnel and equipment ready

Detailed property geologic mapping

Acquired State of Alaska 2008 geophysical

data.

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Terra Upside – porphyry copper/gold countryGood exploration ground for bulk tonnage (Whislter/Pebble/Donlin) type targets

Total Magnetic Airborne Survey 900 Hz Airborne EM 7200 Hz Airborne EM

Numerous geochemical & geophysical targets

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Year 1: Exploration & Bulk Sampling Pilot Increase resource ounces

Property wide exploration (porphyry target)

Permitting work; baseline studies

Mobilize small scale production equipment and initiate 25 tons per day seasonal operation

Update technical report with drill results & resource estimate

Secure additional gold projects in predetermined locations

Year 2: Exploration & Pre-FeasibilityContinue drilling – expand resource at depth and along strike

Ben Vein exploration adit/tunnel to develop underground access for drilling and development

Engineering work

Permitting work; baseline studies

Initiate exploration and development at other locations.

Year 3: Feasibility & DevelopmentContinue to scale up development and exploration

Project Timelines23

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Terra Mining Corporation

120 E. Lake Street #401

Sandpoint, ID 83864

Corporate InfoGreg Schifrin President & CEO

Email: [email protected]

Phone Number

(208) 265-1717 Office

(208) 290-1180 Cell

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Contact Info