WestMountain Index Advisor/Terra mining corp
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Transcript of 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
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
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
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
Road to Vein 14
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
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
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
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