extorre march powerpoint
TRANSCRIPT
Discovery and Development of High Grade Gold-Silver Projects in Argentina
March 2012
Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission (“SEC”) permits mining companies in their filings with the SEC to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as “inferred resource”, that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are urged to consider closely the disclosure contained in our Management Discussion and Analysis for the quarter ended March 31, 2010 filed on SEDAR and available at www.sedar.com.
This document and the information contained in it do not constitute a prospectus and do not form any part of an offer of, or invitation to apply for, securities in any jurisdiction. Potential investors should no rely solely on the information contained herein prior to making any investment decision. Investors should seek independent advice from a qualified finance and investment advisor, giving due regard to their own personal circumstances, prior to forming any investment decision
Safe Harbor Statement - This presentation may contain certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements reflect our current belief and are based upon currently available information. Actual results could differ materially from those described in this presentation as a result of numerous factors, some of which are outside of the control of Extorre Gold Mines Limited.
Many of the assay results presented are preliminary and may not be accurate due to various factors, including but not limited to sample recoveries, true widths and interpretations.
Preliminary Economic Assessment (PEA) – The Cerro Moro PEA is by definition preliminary in nature as it includes some mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as reserves at this time. As such there is no certainty that the preliminary assessment and project economics will be realized. A NI 43-101 Technical Report for the Cerro Moro PEA has been filed on SEDAR (www.sedar.com) and is posted on the Company’s website at www.extorre.com
Cautionary Statement2
Capital Structure –March 13, 2012
3
Shares 96.29 MWarrants 0.12 MOptions 10.15 MFully Diluted 106.56 M
Management / Insiders 15%Institutions 60%Retail 25%Cash $38 M
An Experienced Management Team
Yale Simpson
Co-Chairman
Bryce Roxburgh Co-Chairman
Eric Roth President
Ignacio Celorrio Director
Rob Reynolds Director
James Strauss Director
George Lawton Director
A Strong Board President Eric Roth – C.E.O. Geologist – 20 yrs
Trevor Mulroney - C.O.O. Mng. Engineer- 25 yrs
Exploration
Matt Williams – Exploration Manager Geologist - 17 yr
Fernando Chacon – Project Manager Geologist - 8 yr
Development Gonzalo Damond – Commercial Manager Engineer - 17 yr
Alberto Carlocchia – Country Mgr, Argentina Lawyer – 13 yrs
Victor Vera – Mine Devel. Superintendent Engineer – 15 yr
Corporate Darcy Daubaras – CFO Chart. Acc’t. - 14 yr
Cecil Bond – VP Finance Chart. Acc’t. - 20 yr
Louis Montpellier – Senior VP & Legal Lawyer - 30 yr
Marina (Trasolini) Katusa –VP Corporate Dev. Geologist, MBA
Rob Grey – VP Investor Relations IR - 7yr
4
Extorre Project Locations
1.36 million indicated + 1.05 million inferred ounces Au Eq*
5
*Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery. See slide 7 for full resource grades and tonnes.
Santa Cruz Exploration Targets
PUNTUDO
FALCON
Cerro Negro (+6 M Oz Au)
San Jose (1.3 M Oz Au, 90 M Oz Ag)
Mina Martha
Manantial Espejo (685 K Oz Au, 50 M Oz Ag)
Cerro Vanguardia (+5 M Oz Au)
Dos Calandrias
UNION DOMES
100% EXTORRE LANDS
FOMICRUZ 80/20% JV AGREEMENTFAVORABLE VOLCANIC ROCKS
Cerro Moro
MINE/ADVANCED PROJECT
RECENT DRILLINGDon Nicolas
VERDE
6
Project Location
Pro-mining Santa Cruz Province
90 km road to a deep water port
Population of Puerto Deseado 20,000
Site is 80 km from grid power
EIA approved, connection permits in progress
7
CERRO MORO
Cerro Moro Resource – November 2011National Instrument 43-101 Compliant Resource Estimate, by Cube Consulting
An Exceptional Gold & Silver Deposit
* Note: Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery.
Indicated Mineral Resources
Inferred Mineral Resources
Indicated and Inferred resources shown above utilise a 1.0 g/t gold equivalent* cut-off
8
Cerro Moro – Resource LocationAreas included in the Cube November 2011 Resource Estimate
Mapped/Interpreted Veins
Drill hole collars as at Sep 2011
Excellent Resource Expansion Potential
Aggressive Exploration – Strategic Land Position 1600km2
The Cerro Moro Vein Field (95% XG)Continued resource growth will come from extensions of existing veins,
(including Zoe, Carla, Martina, Nini and Esperanza) plus many other new drill ready veins
Don Sixto (100% XG)Potential beyond existing gold resource
Puntudo Project – Santa Cruz (100% XG)6 exploration targets
Other Regional Targets – Santa Cruz (100% XG)Falcon, Verde, Azul, Ventana
The Fomicruz Joint Venture (XG Earning 80%)Union Domes, Escondida Extensions
10
Cerro Moro Project Surface Ownership
ESCONDIDA
ZOE
Extorre 14,000 hectare Estancia/ranch
purchase (green)
5 kilometres
3.0 mile
Cerro Moro tenement outline
Fo
mic
ruz
JV t
enem
ent
ou
tlin
e
11
5 kilometres
3.0 miles
1. Zoe2. Zoe East3. Belen NE4. Martina5. Mosquito Feeder target6. Michele7. Romina8. Tres Lomas NW9. Esperanza & Nini Extensions10. Gabriela Extensions11. Carlita, & Carlita to Deborah12. Escondida West Extension13. Escondida Far East Deeps14. Fomicruz Escondida Deeps15. Loma Escondida East16. Deborah Parallel17. Esperanza Parallel18. Agostina19. Deborah NE20. Carla to Zoe21. Esperanza to Carla22. Carla Deeps23. Loma Escondida West24. Natalia25. Silica Ridges26. Georgina27. Lechuzo28. Lucia29. Deborah Termination Structure30. Carolene
12PRIORITY EXPLORATION
TARGETS
Ground Magnetics Leads to New Discoveries
Over 30 veins identified to
date.
Detailed magnetic data
shows the veins
Drilling on new veins underway
Priority is to
discover high-grade, near
surface veins
Black lines = mapped veinsWhite lines = exploration target
ESCONDIDA
5 km
13
All Mineralization Open to Depth; Long Sections
MA
RT
INA
ZOE
320 metres
Fomicruz Far West West Central Far East Martina
ESCONDIDA
320 metres
GABRIELA
320 metres
Current depths from surface to
significant mineralization
Far West 270 mCentral 220 mMartina 290 mGabriela 320 mZoe 360 m
14
Blue lines: Interpreted Faults
Red lines: Mapped Veins
N
Perspective Projection of Nov 2011 Block ModelsGeneralized View Looking North
Scale: 2 km x 2 km GridAuEQ50 g/t
GABRIELA
MARTINA
ZOE
ESPERANZANINI
ESCONDIDA
CARLA
15
Location of new significant drill hole.
Cerro Moro Project – Zoe Discovery
Escondida Structure
Martina
CarlitaCarla
N
1 kilometre
0.5 mile
ZOE
No significant result Existing holes
In progress/awaiting results
Fomicruz Far West West Central Far East Martina Zoe
400 m
ESCONDIDA – ZOE LONG SECTION KEY 1.0 km
Zoe Discovery – Projected Long SectionNote: Displaying gold equivalents*
by true width.
160 metres
* Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery.
ZOE LONG SECTION KEY
640 metres
Interpreted plunge
Awaiting results
Location of new significant drill hole.
Existing holes
No significant result
Significant result in footwall or hanging wall.
CONV LEACHING - GOLD
0
10
2030
40
50
60
7080
90
100
ECF ECO EE EW LOMA ESP ESP-SE GAB
Re
co
ve
rie
s (
%)
Leaching
Gravity
Flash Flotation
CONV LEACHING - SILVER
01020
3040506070
8090
100
ECF ECO EE EW LOMA ESP ESP-SE GAB
Rec
ove
ries
(%
)
Leaching
Gravity
Flash Flotation
Cerro Moro MetallurgyHigh gold and silver recoveries (95% and 87.5%, respectively) are achievable
via a combination of flash flotation, gravity separation, and leaching
18
For more detailed information on metallurgy please view company technical reports filed on Sedar
Cerro Vanguardia Mine
Satellite view of AngloGold Ashanti’s 209,000 ounces gold, 2.8 million ounces silver per year open pit
mine west of Cerro Moro Project
6 million ounce gold resource
Waste/ore ratio +23 to 1
Cash costs (2010) $366/ounce
Total costs (2010) $517/ounce
Cerro Moro – Conceptual Plant Design
BALL MILLMINE
LEACH
CRUSHER PUMP
CYCLONE
FLASHFLOTATION
GRAVITYh.g. concentrate
h.g. concentrate
Merrill-Crowe
GOLDROOM
CERRO MORO –
A
B
A. 750 ton/day “Base Case” Production Plan from PEA-1
B. Potential Future Expansion
20
Modular Design to Accommodate Potential Future Expansions
Updated Mine Economic Study
Updated Preliminary Economic Assessment (PEA-3) will use November 2011 Mineral Resource which includes new discoveries at Zoe, Carla, Martina & Esperanza-Nini
Increased resource base will allow for increased mining and processing rates (1000tpd - 1,500 tpd) to be evaluated
PEA-3 scheduled to be completed in Q1 2012
21
Cautionary Note: The Cerro Moro PEA is by definition preliminary in nature as it includes some mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as reserves at this time. As such there is no certainty that the preliminary assessment and project economics will be realized. A NI 43-101 Technical Report for the Cerro Moro PEA has been filed on SEDAR (www.sedar.com) and is posted on the Company’s website at www.extorre.com
Conceptual Project Schedule22
Q1 Q2 Q3 Q4
Discovery Drilling
Delineation Drilling on New Resources
Mineral Resource Updates
Mine Economics Study Update (w/ Zoe) (PEA-3)
Environmental Impact Assessment Revision
Mine Financing
Decline Development (at Escondida Far West)
Decline Development (at Escondida Central & East)
Advanced Engineering and Construction
Mine Commissioning
Community / Social / Environmental
2011 2012 2013Q4 H1 H2
Regional Exploration TargetsFalcon, Puntudo…
PUNTUDO
FALCON
Cerro Negro (+6 M Oz Au)
San Jose (1.3 M Oz Au, 90 M Oz Ag)
Mina Martha
Manantial Espejo (685 K Oz Au, 50 M Oz Ag)
Cerro Vanguardia (+5 M Oz Au)
Dos Calandrias
UNION DOMES
100% EXTORRE LANDS
FOMICRUZ 80/20% JV AGREEMENTFAVORABLE VOLCANIC ROCKS
Cerro Moro
MINE/ADVANCED PROJECT
RECENT DRILLINGDon Nicolas
VERDE
23
LAG Sampling
Gold
> 1.0 g/t
0.5 to 1.0 g/t
0.2 to 0.5 g/t
< 0.2 g/t
Drill collar
Hole - m - Au - Ag
Falcon – Crest Zone – Drill Plan on Resistivity
200 metres
FD004 - 53 - 1.33 - 30
FD001 – 30 – 1.33 - 6
FD005 - 30 – 0.53 – 33
- 27 – 0.73 - 10
FD002 – 56 – 0.81 - 12
FD003 – No significant result
Resistivity high
North
High
Low
20
O
h
m
.
m
10
24
La NegraApproximate
locationLa MorochaApproximate
location
JOAQUIN PROJECTCOEUR - MIRASOL
RENALDO PROJECT100 % EXTORRE
Joaquin Resource67.6 million ounces of silver
(May 9, 2011 Mirasol news release)
Drill HolesIn recent releasePreviously reported
RD0011
Property Boundary Property Boundary
La MorochaSE extension
La NegraSE extension
North
RD0016RD0008RD0013
RD0038
RD0017
RD0019RD0029
RD0024RD0025
RD0026
RD0028RD0021
RD0037RD0023
RD0022RD0035
RD0034
RD0036 RD0016
RD0033
RD0014RD0012
RD0027RD0020A
RD0031
0 250 500 meters
Puntudo Project – Renaldo Silver Target 25
Cerro Moro continued drilling announcements every 2 months - new discoveries
Updated PEA-3 in Q1-2012 (includes the additional Nov. 2011 resources)
Update to mining permit – Q2-2012, start mine decline, evaluate financing options
Excellent potential for new discoveries at Falcon and Puntudo properties.
News Flow- 2012 26
Extorre in an Industry Context
27
Extorre & the Metals IndustryGOLD MARKET
Exploration expenditures are increasing yet fewer new resources are being discovered
New discoveries are replacing less than half the current production
Resources versus Gold Production 1997-2008
SILVER MARKETIndustrial silver demand is expected to
increase from 487million ounces silver in 2010 to 666million ounces in 2015
This demand could underpin strong silver prices
World Industrial Silver Demand Forecast
Source: MEG
28
Mining Analyst Coverage
Daniel [email protected] 308 7906
Adam Graf [email protected] 212-702-4527
Wendell [email protected] 643 7485
David [email protected]
Michael Gray [email protected] 604-639-6372
John Hayes [email protected]
Imaru Casanova [email protected]
29