TSX: GCM OTCQX: TPRFF May 2020
TSX: GCM OTCQX: TPRFF
Creating a High-Growth, Latin American Focused Intermediate Gold Producer
May 2020
Corporate Presentation
TSX: GCM OTCQX: TPRFF May 2020
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This presentation contains "forward-looking information", which may include, but is not limited to, statements regarding the completion of the proposed transactions, the holding of the special meetings of Gran Colombia, Gold X and Guyana Goldfields and other statements that are not historical facts. While such forward-looking statements are expressed by Gran Colombia, as stated in this presentation, in good faith and believed by Gran Colombia to have a reasonable basis, they are subject to important risks and uncertainties including, without limitation, required Gran Colombia, Gold X and Guyana Goldfield securityholder approval and necessary court approval, the satisfaction or waiver of certain other conditions contemplated by the agreements governing each of the Gold X Transaction and the Proposed Guyana Goldfields Transaction, and changes in applicable laws or regulations, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. As a result of these risks and uncertainties, the proposed transactions could be modified, restructured or not be completed, and the results or events predicted in these forward-looking statements may differ materially from actual results or events. These forward-looking statements are not guarantees of future performance, given that they involve risks and uncertainties. Historical information contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. In this regard, certain financial information contained herein has been extracted from, or based upon, information available in the public domain or provided by Gran Colombia. In particular historical results should not be taken as a representation that such trends will be replicated in the future. Other factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in Gran Colombia’s Annual Information Form dated as of March 30, 2020, which is available for view on SEDAR at www.sedar.com. Gran Colombia is not affirming or adopting any statements made by any other person in respect of the proposed transactions and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities law, or to comment on expectations of, or statements made by, any other person in respect of the proposed transactions. Investors should not assume that any lack of update to a previously issued forward-looking statement constitutes a reaffirmation of that statement. This presentation may have been sent to you in an electronic form. You are reminded that documents transmitted via this medium may be altered or changed during the process of electronic transmission. You are responsible for protecting against viruses and other destructive items. Your receipt of this electronic transmission is at your own risk and it is your responsibility to take precautions to ensure that it is free from viruses and other items of a destructive nature. As a consequence of the above, neither the Gran Colombia nor any director, officer, employee or agent of any of them or any affiliate of any such person accepts any liability or responsibility whatsoever in respect of any difference between the presentation distributed to you in electronic format and the hard copy version that may be made available to you. CAUTIONARY STATEMENT REGARDING TECHNICAL INFORMATION: This presentation contains information regarding mineral resources estimated at the mineral projects referenced herein. Mineral resources are not mineral reserves and do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing or other relevant issues. In particular, the quantity and grade of reported inferred mineral resources are uncertain in nature and there is insufficient exploration to define these inferred mineral resources and an indicated or measured mineral resource in all cases. It is uncertain in all cases whether further exploration will result in upgrading the inferred mineral resources to an indicated or measured mineral resource category. For details regarding the key assumptions, parameters and methods used to estimate the mineral resources presented in respect of the Segovia Operations, please see the “Amended NI 43-101 Technical Report Prefeasibility Study Update Segovia Project Colombia", with a report date of July 8, 2019 and an effective date of December 31, 2018 (the “Segovia PFS”) . The “qualified persons” for the purposes of NI 43-101 include Ben Parsons, MSc, MAusIMM (CP), Principal Resource Geologist; Brian Olson, BS Chemical Engineering, P.ENG, MMSAQP, Senior Metallurgist; Cristian A. Pereira Farias, SME-RM, Senior Hydrogeologist; David Bird, MSc, PG, SME-RM, Principal Geochemist, Fredy Henriquez, MS Eng, SME, ISRM, Principal Consultant, Rock Mechanics; Jeff Osborn, BEng Mining, MMSAQP, Principal Mining Engineer; Fernando Rodrigues, BS Mining, MBA, MAusIMM, MMSAQP, Practice Leader/Principal Mining Engineer; Joshua Sames, PE, Senior Consultant (SRK Consulting); and, Mark Allan Willow, MSc, CEM, SME-RM, Practice Leader/Principal Environmental Scientist, each of whom is a "qualified person" for the purposes of NI 43‐101. The full content of this report may be accessed through Gran Colombia’s website at www.grancolombiagold.com or through its profile on SEDAR at www.sedar.com. For details regarding the key assumptions, parameters and methods used to estimate the mineral resources presented in respect of the Marmato Project, please see “NI 43-101 Technical Report Preliminary Economic Assessment Marmato Project” with a report date of February 6, 2020 and an effective date of July 31, 2019, prepared by SRK Consulting (U.S.), Inc. (the “Marmato PEA”). The "qualified persons" for the purposes of NI 43-101 include Ben Parsons, MSc, MAusIMM (CP) – Principal Consultant (Resource Geologist); Cristian Pereira Farias, SME-RM – Senior Consultant (Hydrogeologist); David Bird, PG, SME-RM – Associate Principal Consultant (Geochemistry); David Hoekstra, Bs, PE, NCEES, SME-RM – Principal Consultant (Water Resource Engineering); Eric Olin, MSc, Metallurgy, MBA, SME-RM, MAusIMM – Principal Consultant (Metallurgy); Fernando Rodrigues, BS Mining, MBA, MAusIMM, MMSAQP – Principal Consultant (Mining Engineer); Jeff Osborn, BEng, Mining, MMSAQP – Principal Consultant (Mining Engineer); Joanna Poeck, BEng Mining, SME-RM, MMSAQP – Principal Consultant (Mining Engineer); John Tinucci, PhD, PE, ISRM – Principal Consultant (Geotechnical Engineer); Mark Allan Willow, MSc, CEM, SME-RM – Principal Consultant (Environmental); and Joshua Sames, BSc Civil, PE – Senior Consultant (Civil Engineering), each of whom is a "qualified person" for the purposes of NI 43‐101. The full content of this report may be accessed through Caldas Gold’s website at www.caldasgold.com or through its profile on SEDAR at www.sedar.com.
2
Forward-Looking Statements DISCLAIMER
TSX: GCM OTCQX: TPRFF May 2020
GRAN COLOMBIA 2.0 STRATEGIC RATIONALE
3
Value Creation for All Parties
(1) Based on midpoint of Gran Colombia guidance for Segovia and Marmato (on an attributable basis via 74% ownership in Caldas Gold) and of Guyana Goldfields May 7th
news release. (2) Based on management estimates.
HIGH-GROWTH, LATAM-FOCUSED INTERMEDIATE
GOLD PRODUCER
• Strong pro forma 2020 production of 275koz(1) with production growth to over 500koz/year(2) through the development of 3 near-term growth projects:
− Toroparu, Aurora Underground and Marmato (via 74% ownership in Caldas Gold)
• Poised to become a consolidator of the Latin American gold sector
UNLOCKS REALIZABLE SYNERGIES IN GUYANA
• Toroparu is ~50km from Aurora optimization opportunity to connect the two sites to utilize existing Aurora infrastructure and significantly reduce upfront capex
• Management estimates potential savings of ~US$200M (including G&A savings) based on latest Toroparu and Aurora technical reports
ENHANCED BALANCE SHEET + ACCESS
TO CAPITAL
• US$100M in cash in addition to the financing support provided by Wheaton Precious Metals Corp. to fund development in Guyana
• Caldas Gold currently evaluating financing options for the Marmato expansion ahead of pre-feasibility study due mid-2020
HIGHLY ACCRETIVE WITH STRONG
RE-RATE POTENTIAL
• Transaction is highly accretive to net asset value per share
• Strong potential to re-rate as Gran Colombia enters a new larger peer set due to the resulting benefits of enhanced production, free cash flow and liquidity along with potential increased index inclusion
PROVEN LATAM OPERATING AND MINE BUILDING
EXPERIENCE
• Proven experience operating in Latin America
• Highly qualified executive team with mine building experience in the Guiana Shield
• Demonstrated ability to improve and optimize assets
Source: company filings.
TSX: GCM OTCQX: TPRFF May 2020
Offer
• Guyana Goldfields (“GUY”): 0.142 GCM shares per GUY share, implying a value of C$0.90/sh
− 29% premium to the closing price of GUY shares on May 8, 2020
• Gold X (“GLDX”): 0.500 GCM shares per GLDX share, implying a value of C$3.17/sh
− 41% premium to the 20-day VWAP price of GLDX shares on the TSX Venture Exchange on May 8, 2020
Implied Value • GUY: Implied equity value of ~C$155M (vs. C$105M in Silvercorp transaction announcement(1))
• GLDX: Implied equity value of ~C$100M for the remaining ~81% of GLDX shares not owned by GCM
Ownership • Pro-forma basic ownership in combined entity will be ~60% GCM, ~25% GUY, ~15% GLDX
Interim Financing for GUY
• GCM can provide GUY with a loan of up to US$15M with defined use of proceeds related to ongoing operations at Aurora Underground
Approvals / Conditions
• Acquisition of each company is contingent on acquisition of both
• GLDX’s Special Committee of the Board and GCM’s Board of Directors have unanimously approved the Transaction
• GLDX and GUY require shareholder votes with a 66 2/3 approval threshold of votes cast; GCM requires shareholder vote with a 50% approval threshold of votes cast
• Completion of definitive documentation with GUY (already delivered to GUY)
• Majority of minority shareholder approval for GLDX (excluding the votes cast by GCM)
• Other approvals including: regulatory, stock exchange
Voting Agreements
• GLDX: Officers, directors and certain shareholders, who collectively own ~15.48% of GLDX’s issued common shares, have entered into voting support agreements in favour of the GLDX Transaction
PROPOSAL SUMMARY
4
Superior Offer for Shareholders
(1) Refer to Silvercorp Metals Inc.’s April 27th news release. Source: Company filings.
TSX: GCM OTCQX: TPRFF May 2020
GRAN COLOMBIA 2.0
5
COMBINED COMPANY High Growth Intermediate Gold Producer
>C$640M Pro-Forma
Market Cap.
>US$100M Pro-Forma
Cash Balance
3 Producing
Mines
3 Growth
Projects(1)
2.9 Moz Pro-Forma
2P Reserves(2,3)
14.3 Moz Pro-Forma M&I Resources(2, 3, 4)
9.1 Moz Pro-Forma Inferred
Resources(2,3,4)
240 koz Standalone 2019A Gold Production
500+ koz Targeted
Future Production(5)
(1) Including Toroparu, Aurora Underground and Marmato (via 74% ownership in Caldas Gold). (2) Derived from Company’s March 30th press release for Segovia; “A Mineral Resource Estimate for the Sulphur Rose Deposit” dated February 14, 2011; “Preliminary Economic Assessment Report Toroparu Gold Project”
dated July 18, 2019; “NI 43-101 Technical Report Preliminary Economic Assessment Marmato Project” dated February 6, 2020; “Technical Report on the Aurora Gold Mine” dated March 31, 2020. (3) Please see “Cautionary Statement Regarding Technical Information”. (4) Inclusive basis and including resources from 74% Zona Baja and Sulphur Rose. (5) Based on management estimates. Source: Company filings.
COLOMBIA
GUYANA
Production Development
Toroparu Aurora
Segovia
Marmato
(via 74% )
BRAZIL
VENEZUELA
TSX: GCM OTCQX: TPRFF May 2020
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GRAN COLOMBIA 2.0
6
OPERATING BASE Strong Free Cash Flow Generator
0
20
40
60
80
100
120
2015 2016 2017 2018 2019
Operating Cash Flow Free Cash Flow
(1) Last twelve months as at December 31, 2019. (2) Refer to Company’s MD&A for computation.
Source: Company filings.
Comparative Asset Milled Grade(1)
g/t
Gran Colombia Cash Flow Metrics US$M
Amongst the Highest Grade Mines in the Gold Sector
Substantial and Increasing Free Cash Flow
~US$100M 2019 Operating
Cash Flow
~US$60M 2019 Free
Cash Flow(2)
16.4 g/t 2019 Segovia Milled Grade
(2)
TSX: GCM OTCQX: TPRFF May 2020 7
Unlocks Unique Synergies
The proximity of Aurora and Toroparu provides the unique opportunity to integrate both assets into one operation and realize substantial synergies
Enhanced Scale
Management estimates an integrated operation could support a 15-year mine life with combined production of 200koz per year with potential to increase to 300koz per year
>11 Moz contained Au M&I(1, 2) resources and 2.2 Moz 2P reserves(1,
2) across Aurora and Toroparu combined
Combined land concession package of 165,000 ha
Capital Synergies & Savings
Toroparu development costs significantly reduced through utilization of existing Aurora facilities and its timeline can be rapidly accelerated
Utilizes Aurora O/P mining fleet, camp, and leach processing facility which removes the need to build a new mill
In turn, integration delivers reduced ramp up and operating risk for Aurora U/G
Mine Planning Optimization
Integrated U/G and O/P significantly reduces ramp up risk
Allows for more conservative U/G mining rates at Aurora while maintaining plant utilization
Operating Cost Synergies
Combine G&A budgets
Shared port and access road maintenance costs
Greater In-country Presence
Aurora – Toroparu Map
GUYANA CONSOLIDATION
Aurora
Toroparu
~50km
Management Estimates Potential Synergies of
US$200 million
(1) Derived from “A Mineral Resource Estimate for the Sulphur Rose Deposit” dated February 14, 2011; “Preliminary Economic Assessment Report Toroparu Gold Project” dated July 18,
2019; “Technical Report on the Aurora Gold Mine” dated March 31, 2020 (2) Please see “Cautionary Statement Regarding Technical Information”.
TSX: GCM OTCQX: TPRFF May 2020
Reserves & Resources
2P Reserves (Moz) 0.7 -- 2.2 -- 2.9
M&I (Incl.) (Moz) 1.4 1.5 4.1 7.4 14.3
Inferred (Moz) 1.3 2.5 2.2 3.2 9.1
Operating Stats Avg. LOM attributable values from latest technical reports shown
2019 PFS 2019 PEA 2020 LOM Plan 2019 PEA
Au Production (koz) 210 86 147 188 500+
Cash Costs (US$/oz) $711 $799 $736 $541
AISC (US$/oz) $958 $882 $1,043 $780
Growth Capex (US$M) -- $199 $141 $378
210
500+
Segovia Marmato AuroraUnderground
Toroparu Gran ColombiaPost Project
Development
8
PRODUCTION GROWTH Pathway to 500koz of Production
(3) See Segovia PFS. (4) See Marmato PEA.
(5) Based on midpoint of Gran Colombia 2020E guidance. Source: Company filings.
Guyana projects to be integrated and optimized to reduce capex and increase IRR
(2)
(2)
Defined Pathway to Targeted Future Production of 500+ koz
Management is targeting combined production of 200koz per year with
potential to increase to 300koz per year
(5)
(1)
(1)
(via 74% ownership in Caldas Gold)
(1) Based on management estimates. (2) Includes resources from Sulphur Rose. Please see “A Mineral
Resource Estimate for the Sulphur Rose Deposit” dated February 14, 2011; “Technical Report on the Aurora Gold Mine” dated March 31, 2020.
(3) (4)
TSX: GCM OTCQX: TPRFF May 2020
-25% 25% 75% 125%
PF GCM
Equinox Gold
SSR Mining
Dundee Precious
Eldorado
New Gold
OceanaGold
Torex
Silvercorp
IAMGOLD
Pretium
Alacern.r.
-- $500 $1,000 $1,500
Alacer
Dundee Precious
Torex
SSR Mining
Pretium
PF GCM 2020
Equinox Gold
Eldorado
OceanaGold
IAMGOLD
New Gold
Silvercorp
-- 250 500 750 1,000
IAMGOLD
Equinox Gold
PF GCM Post-ProjectDevelopment
OceanaGold
Torex
Eldorado
Pretium
SSR Mining
New Gold
Alacer
PF GCM 2020
Dundee Precious
Silvercorp
GRAN COLOMBIA 2.0
9
GRAN COLOMBIA 2.0 GRAN COLOMBIA 2.0 MARKET POSITION Strong Production, Low Costs, High Growth
2019 Gold Production koz
2019 AISC US$/oz
2019-2022E Production Growth %
(3)
(1) Based on management estimates. (2) Shown on an AuEq basis.
(3) Calculated using pro -forma LOM annual average production post-project completion relative to 2019 production.
Source: Street research, company filings.
STRONG PRODUCTION LOW COSTS HIGH GROWTH
(1)
(2)
(2)
TSX: GCM OTCQX: TPRFF May 2020 10
TRANSACTION METRICS Highly Accretive to Net Asset Value
Notes: GCM: Based on analyst consensus NAVPS of C$10.40 and FDITM GCM shares outstanding of 77.3M, adjusted to remove current market value of ~19% equity interest in GLDX. GUY: Based on analyst consensus NAVPS of C$1.16 and FDITM GUY shares outstanding of 174.6M. GLDX: Based on 2019 PEA Toroparu NPV5% @ $1,300/oz, adjusted for corporate balance sheet items from latest FY2019 disclosure. Operational Synergies: Based on management estimates. FX Rate: C$1.00 = US$0.72
Total Estimated Corporate NAV(1)
US$M
GCM Net Asset Value/Sh C$/sh
~50% Accretive
(1) Analysis excludes transaction costs. (2) Based on pro-forma FDITM GCM shares of 124.3M.
Source: Street research, company filings.
(2)
US$577M (US$16M)
US$145M
US$495M
US$200M US$1,401M
C$10.40
C$15.70
Less: GLDXEquity Int.
OperationalSynergies
Pro-FormaGCM
CurrentNAVPS
Pro-FormaNAVPS
TSX: GCM OTCQX: TPRFF May 2020
GRAN COLOMBIA 2.0
11
GRAN COLOMBIA 2.0 GRAN COLOMBIA 2.0 GRAN COLOMBIA 2.0 VALUATION Compelling Re-Rate Opportunity
Current P/NAV Valuation Ratio
(1) No analyst coverage; est. NAV based on “Preliminary Economic Assessment Report Toroparu Gold Project” dated July 18, 2019 and
latest FY2019 company disclosure. Source: Street research.
Significant Re-rate Potential in Addition to Strong NAV Synergies
(1)
Gran Colombia has a significant re-rating opportunity to establish the company as a leading intermediate gold producer in Latin America
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TSX: GCM OTCQX: TPRFF May 2020 12
GRAN COLOMBIA 2.0 GRAN COLOMBIA 2.0 GRAN COLOMBIA 2.0 RIGHT TEAM OPERATING AND BUILDING EXPERIENCE
Segovia Operations
40.7
13.0
5.5 5.0
2016 2017 2018 2019
LTI Frequency Rate
Health and Safety is a Top Priority
8075
93
126
149
193
214
$1,169 $1,037
$695 $655 $664 $623 $607
2013 2014 2015 2016 2017 2018 2019
Production (koz) Cash Cost (US$/oz)
Substantial Production Growth while Lowering Costs
DEMONSTRATED OPERATING EXPERIENCE IN LATIN AMERICA
MINE BUILDING EXPERIENCE IN GUIANA SHIELD
TRACK RECORD OF IMPROVEMENT
STRONG HEALTH & SAFETY RECORD
FOCUSED ON BUILDING STRONG COMMUNITY RELATIONSHIPS
Segovia Lost Time Incidents
Source: Company filings.
Key Management
Serafino Iacono, Executive Chairman – Company co-founder with 30+ years of experience in capital markets and public companies
Lombardo Paredes, CEO – 20+ years of corporate leadership and operations management experience in the resource sector in Latin America
Mike Davies, CFO – CPA,CA with 20+ years of international and public company experience in resource and other sectors
TSX: GCM OTCQX: TPRFF May 2020
GRAN COLOMBIA 2.0
13
GRAN COLOMBIA 2.0 ASSET OVERVIEW: MARMATO The Marmato Project is a gold and silver deposit located in
Colombia and is operated by Caldas Gold
Caldas Gold is a ~C$100M market cap gold producer that is majority owned by Gran Colombia, with Gran Colombia holding a 74% equity interest
The mineralization is featured in Zona Baja, which contains the existing underground mine in the Upper Zone, and a new Deep Zone operation which sits below the Upper Zone vein system
Caldas Gold is currently advancing a PFS to incorporate the Deep Zone into its existing operations, due mid-2020
In February 2020, Caldas filed the results of its 2019 PEA study
Immediate implementation of an optimized mine plan in the existing Upper Zone operation
Concurrent development and construction of the Deep Zone (expected to come online in 2023) to further increase total gold production and extend mine life
2019 PEA Production Profile – First 10 Years(1)
Koz Au | 100% Basis
Reserves and Resources(1)
(1) Resource estimates as at July 31, 2019 (on an attributable basis via 74% ownership in Caldas Gold). Please see “NI 43-101 Technical Report Preliminary Economic Assessment
Marmato Project” dated February 6, 2020. Source: Company filings.
2019 Marmato PEA Summary (100% Basis)(1)
Upper Zone
Mine Life (yrs) 16.0
Processing Rate (tpd) 1,500
LOM Average Grade (g/t Au) 3.82
LOM Average Mill Recovery (%) 87.0%
LOM Avg. Gold Production (koz) 35 koz
Sustaining Capex (US$M) US$41M
LOM Cash Cost (US$/oz) US$803/oz
LOM AISC (US$/oz) US$872/oz
Deep Zone
Start Year 2023
Mine Life (yrs) 16.0
Processing Rate (tpd) 4,000
LOM Average Grade (g/t Au) 2.50
LOM Average Mill Recovery (%) 95.0%
LOM Avg. Gold Production (koz) 100 koz
Initial Capex (US$M) US$269M
Sustaining Capex (US$M) US$141M
LOM Cash Cost (US$/oz) US$797/oz
LOM AISC (US$/oz) US$885/oz
After-Tax NPV 5% (US$M) @ $1,300/oz US$207M
After-Tax IRR (%) @ $1,300/oz 20.0%
Zona Baja (Attributable) kt g/t Au g/t Ag koz Au koz Au
M&I 17 3.7 13.0 1,509 5,341
Inferred 45 2.3 3.7 2,451 3,917
37 39 35
117
167 185 174
151 137 135
2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E
Production (koz)
TSX: GCM OTCQX: TPRFF May 2020
GRAN COLOMBIA 2.0
14
GRAN COLOMBIA 2.0 ASSET OVERVIEW: AURORA The Aurora mine is Guyana Goldfields’ fully-owned, flagship
operation located in Guyana which achieved commercial production in January 2016
The Aurora mine has historically represented a significant portion of gold production in Guyana
In March 2020, the Company announced the completion of the 2019 LOM Review
The proposed LOM Plan sequencing of continued open pit mining, transitioning to underground operations in 2021
Updated mineral reserves containing ~2.2 Moz Au and M&I resources containing ~3.8 Moz Au(1)
LOM average annual production of ~150 koz over the 14-year mine life(1)
2020 Updated LOM Plan Production and Cost Profile – First 10 Years(1)
Koz Au | AISC US$/oz
Reserves and Resources(1)
(1) R&R estimates as at December 31, 2019. Please see “Technical Report on the Aurora Gold Mine” dated March 31, 2020.
Source: Company filings.
2020 Aurora Updated LOM Plan Summary(1)
75
164 191
211
144 153 152 151 143 140 $1,759
$782 $1,001 $942 $1,064
$908 $943 $937 $1,057 $1,034
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Production (koz) AISC (US$/oz)
Mine Life (yrs) 14.0
Processing Rate (tpd) 5,200
LOM Average Grade (g/t Au) 2.70
LOM Average Mill Recovery (%) 92.4%
LOM Avg. Gold Production (koz) 147 koz
Initial Capex (US$M) US$141M
Sustaining Capex (US$M) US$391M
LOM AISC (US$/oz) US$1,043/oz
After-Tax NPV 5% (US$M) @ $1,400/oz US$353M
After-Tax IRR (%) @ $1,400/oz 55.0%
Aurora kt g/t Au koz AuReservesProven 1,880 2.03 123Probable 23,972 2.75 2,118Total Reserves 25,852 2.70 2,241
M&I (incl.) 37,600 3.16 3,816Inferred 25,900 2.28 1,901
TSX: GCM OTCQX: TPRFF May 2020
GRAN COLOMBIA 2.0
15
GRAN COLOMBIA 2.0 ASSET OVERVIEW: TOROPARU The Toroparu gold project is 100% owned by Gold X and is an
advanced stage project located in the Upper Puruni River Region of Guyana
One of the largest in-situ gold projects owned by an independent junior mining company in South America
Conventional open pit project with a long mine life of 24 years and average annual production of 188 koz(1)
Roughly 7.4 Moz of M&I resources and 3.2 Moz Inferred(1)
In the final stages of permitting with a final review and license approval with the Guyana Geology and Mines commission
Company currently focused on completing the necessary step to deliver a production decision
Re-scoped PEA completed in 2019(1)
Two-phased Development Plan based on higher grade gold resources contained near surface
Phase 1 production will start with a carbon-in-leach processing facility with mill capacity of 11.5 ktpd with planned expansion to 23 ktpd in year 11
MoU with the Government of Guyana to develop the Kurupung River Hydroelectric Project to support the Toroparu Project while also providing significant operating cost savings over the life of mine
Reserves and Resources(1)
(1) Resource estimates as at September 2018. Please see “Preliminary Economic Assessment Report Toroparu Gold Project” dated July 18, 2019.
(2) Phase 1 of development plan at 11.5 ktpd processing rate. Source: Company filings.
2019 Toroparu PEA Summary(1)
PEA Production and Cost Profile(1)
Koz Au | AISC US$/oz
(2)
161
202 188
$790 $769 $780
Years1 - 8
Years9 - 24
LOMAvg.
Production (koz) AISC (US$/oz)
Toroparu Mt g/t Au g/t Ag % Cu Moz Au Moz Ag Mlb Cu
M&I 253 0.9 0.8 0.08% 7.4 6.3 444
Inferred 129 0.8 0.1 0.04% 3.2 0.3 104
Mine Life (yrs) 24.0
Processing Rate (tpd) - Phase 1 11,500
Processing Rate (tpd) - Phase 2 23,000
LOM Average Grade (g/t Au) 1.01
LOM Avg. Gold Production (koz) 188 koz
Initial Capex (US$M) US$378M
Sustaining Capex (US$M) US$614M
LOM Cash Cost (US$/oz) US$541/oz
LOM AISC (US$/oz) US$780/oz
After-Tax NPV 5% (US$M) @ $1,300/oz US$495M
After-Tax IRR (%) @ $1,300/oz 20.3%
TSX: GCM OTCQX: TPRFF May 2020
For Further Information, Contact: Mike Davies
Chief Financial Officer (416) 360-4653
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