ladu presentation & new research report for personal use only · where miz expresses or implies an...

1 Address: 45 Ventnor Avenue, West Perth, WA 6005 Ph: +61 8 9200 1860 - Fax: +61 8 9200 1861 Email:[email protected]

28 May 2014 Company Announcements Office

Australian Securities Exchange

20 Bridge Street

Sydney NSW 2000

LADU Presentation & New Research Report

The Directors of Minera Gold Limited (ASX Code: MIZ) (Minera Gold or the Company) are pleased to provide a copy of the latest presentation on Minera Gold that is to be delivered by the Company’s Managing Director at the Latin America Down Under conference in Sydney today. The Company also wishes to advise that a new research report on Minera Gold has been released by Arrowhead Business Investment Decision from New York, USA. A copy of this report is available from the Company’s website in the latest news section. For more information on Minera Gold please visit our web site at www.mineragoldlimited.com or contact Mr. Ashley Pattison, CEO at +61 8 9200 1860, or [email protected].

For and on behalf of the Board,

Ashley Pattison

Managing Director Investor Relations Contact: Arrowhead Business and Investment Decisions, LLC. Daniel Renaud or Thomas Renaud Tel: + 1 212 619 6889 Email: [email protected] Company Profile: www.abid.co/ASX.MIZ Forward Looking Statements The document (Document) is provided on the basis that none of Minera Gold Limited ACN 117 790 897 (MIZ) nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the origin, validity, accuracy, reliability, relevance, currency or completeness of the material contained in the Document and no responsibility is taken for any errors or omissions. Nothing contained in the Document is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. MIZ excludes all warranties (including implied warranties) and all liability that can be excluded by law for any loss, claim, damage, cost or expense of any nature arising out of that Document (or any accompanying or other information) whatsoever, nor by reason of any reliance upon it. MIZ accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this Document or any other information made available to a person or any obligation to furnish the person with any further information. The Document may contain prospective financial material which is predictive in nature and based on certain assumptions. Accordingly, actual financial results may be affected by assumptions which prove to be inaccurate or by known or unknown risks and uncertainties, and are likely to differ, possibly materially, from results ultimately achieved. The Document may contain "forward-looking statements". All statements other than those of historical facts included in the Document are forward-looking statements including, without limitation, (i) estimates of future earnings, and the sensitivity of earnings to the gold and other metals prices; (ii) estimates of future gold and other metals production and sales; (iii) estimates of future cash costs; (iv) estimates of future cash flows, and the sensitivity of cash flows to gold and other metals prices; (v) estimates of future capital expenditures; and (vi) estimates of reserves, and statements regarding future exploration results and the replacement of reserves. Where MIZ expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ material ly from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade, recovery rates or other matters from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. MIZ does not undertake any obligation to release publicly any revisions to any "forward-looking statement" to reflect events or circumstances after the date of the Document, or to reflect the occurrence of unantic ipated events, except as may be required under applicable securities laws.

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mailto:[email protected]:[email protected]://www.abid.co/ASX.MIZ

1 M I N E R A G O L D L I M I T E D

Latin America Down Under - 28 May 2014

“2014 is the turning point”

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Company Overview

• ASX Listed Gold Mining and Exploration

Company focused on its 100% owned Peruvian

operations

• Gold Production and Exploration upside from

+16,000Ha of under-explored concessions

• Forecast to achieve an annualised run rate of

18koz per annum by end of 2014 from Torrecillas

and potential third party toll treatment options

• Cost cutting plans being implemented to reduce

all in cash cost to ~$780/oz – processing plant is

a major contributor to this

• Discovery of two large tonnage low grade

disseminated targets in Peru at Tumi and Tessie

could materially change Minera Gold. Active

program ongoing at Tumi.

• Exposure retained to Engenho Open Pit Gold

Targets in Brazil via JV

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Investment Highlights

Funding

Recently raised $2.2M from professional and sophisticated investors

Complemented by US$5M gold streaming transaction with SilverStream SEZC

Production

High-grade narrow vein Torrecillas gold mine in production in southern Peru.

Focused on reaching ~18,000 oz Au annualized production rate by end of 2014 driven

by lease of our own processing plant. Further production increases projected for 2015

Increased production and materially improved operating margin at Torrecillas to fund

exploration in 2014 and 2015 to build resource base

Peru Exploration Upside

Near mine exploration potential for increasing resources and developing reserves.

16,000ha + exploration package including high priority Tumi project.

2014 exploration program includes Tumi IP work, continued trenching and soil

geochemistry sampling at Tumi and Tessie and RC drilling of defined targets.

Optionality through Brazil JV held on books for Zero.

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Corporate Overview

Capital Structure

• Existing Shares on Issue 1,135 M

• Market Capitalization ~$5.5 M

• Cash at Bank – April ‘14 ~$1.6 M

• Unsecured Term Debt – Oct ‘15

• Convertible Loans – Sept ‘14

$1.6M

$3.2M

Directors and Key Management

• Alex Losada-Calderon Chairman

• Ashley Pattison CEO / MD

• Ryan Welker NE Director

• Kevin Puil NE Director

Key Shareholders

1. Slade Technologies Pty Ltd 7.24%

2. Gurney Capital Nominees Pty Ltd 4.28%

2. Ashley Pattison 3.70%

3. Pershing Australia Nominees 3.49%

4. West Trade Pty Ltd 2.57%

5. Citigroup Nominees Pty Limited 2.02%

6. HSBC Custody Nominees 2.01%

ASX Listed – Ticker MIZ

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Recently Completed Funding Arrangements

SilverStream Gold Stream over Torrecillas Gold Project

Represents funding which is non debt to Minera Gold and non dilutionary to our shareholders.

Cayman Island based precious metal streaming business has acquired the right to purchase 10% of LOM production from the Torrecillas Gold Project through a US$5M fee to be paid in 4 installments based on production milestones. US$1.6M was paid on completion with an additional $2.4M forecast to be received in 2014

Purchase price for 10% of the production is lower of $400/oz or 80% of the spot price

Convertible Loan Agreements

Strongly supported by Top 20 Shareholders and new investors

$2.2M raised in April 2014

6 mth term at 18% pa coupon

Convertible at the lower of $0.008 or 20% discount to the 10 day VWAP prior to conversion

Company can redeem in cash or shares at expiry.

Importantly, these funding arrangements result in the gold strategy being fully funded.

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Directors and Key Management

Alex Losada-Calderon, Non-Executive Chairman (Based in Lima) Alex has over 25 years’ experience as a geologist, project manager, and country manager and is currently MIZ’s competent technical person, working in-country. Alex was previously head of exploration for Southwestern Resources Corp which accumulated substantial landholdings and operations in Southern Peru prior to being taken over by Hochchild Mining PLC in 2009. Previous roles held by Alex include Non-Executive Director of Arafura Resources Ltd, Country Manager for Overseas Mining Investments Ltd, a US$525M Cuban Ferro Nickel project, Project Manager for Ausenco (Latin America) and Project Manager for MIM Holdings Ltd (Latin America). He holds a PhD in Economic Geology and Geochemistry from Monash University, Australia and Honors in Geological science from the Universidad Nacional del Sur, Argentina.

Ashley Pattison, Chief Executive Officer and Managing Director (Based in Perth) Ashley has been the CEO of Minera Gold for the last 2 years and has more than 15 years experience working in a number of diverse roles servicing the mining industry including Director of corporate finance at Deloitte, Head of Corporate at DJ Carmichael (a resource focused stock broking firm) and was the CEO of a large mining service company for two years prior to joining Minera Gold.

Ryan Welker, Non-Executive Director (Based in NY) Ryan has previously worked for Standard Bank, Rio Tinto and Hancock Prospecting and more recently with a broad range of mining finance groups, mining companies and other mining industry service companies as a consultant. Ryan was also a former non-executive director of Mineral Resources Limited. Ryan specialises in formulating commercial development strategies, resource project acquisitions/divestures, joint ventures and debt finance for projects and companies with a heavy focus on developing nations. Ryan is a graduate of Regent's Business School London with a BA (Hons) in International Finance and Accounting.

Kevin Puil, Non-Executive Director (Based in Cayman Islands) Mr. Puil is currently a Director and Chief Executive Officer of SilverStream SEZC. Prior to SilverStream, Mr. Puil was an analyst and former fund manager with over 15 years of experience in investment management. Mr. Puil has held the positions of advisor and analyst with Goepel McDermid (now Raymond James), and was a partner and portfolio manager at Bolder Investment Partners (now Haywood Securities), both located in Vancouver, British Columbia. Subsequently, and most recently, he was a portfolio manager at Gissen & Associates, and the Senior Analyst at the Encompass Fund in San Francisco, focusing on natural resources.

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Peru Asset Portfolio F

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Why Invest in Peru?

#1 Producer of Gold, Lead, Tin, Zinc in

Latin America

#2 Producer of copper and silver in

the world

Strong legal framework for mining

and investment

BBB+ S&P rating (higher than Mexico,

Brazil, and Colombia)

$26.3b of mining exports in 2011

(61% of total exports)

Relatively low labour and mining costs

Sustained economic growth for last 10

years. Forecast 6% growth over next 5

years

#2 most attractive country for

investment in Latin America (World

Bank 2014)

Only 13% of Peru covered by mining concessions – 1% currently mined or

explored

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Southern Peru – A Prolific Gold Belt

M I N E R A G O L D L I M I T E D

Minas Esperanza

Commenced: 2009

Treatment: 450TPD

Grade: 2% Cu & 8 g/t Au

Annual Prod: 12,000 Oz

Minas San Juan

Commenced: 1970

0.6M Oz

Treatment: 350TPD

Grade: 7.9 gr/t Au

Annual Prod: 18,000 Oz

MIZ Properties

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2014 Strategy – Overview

Minera Gold has:

High-grade narrow vein UG gold mine at Torrecillas in Peru – 1,600oz p/mth by Dec 14.

Exciting exploration assets: near mine exploration at Torrecillas and also at Tumi.

JV on development stage gold assets in Brazil.

2013 was a year of consolidation and re-focus on ramping up production in Peru. 2014 is

about delivery.

To maximise cash flow from Peru over next 12 months:

Operating Lease of processing plant is key ~>$220/oz cash cost reduction.

Secured for 3 years with first processing to occur in July 2014

Lower costs and increase operational efficiency at Torrecillas. Achieved through:

Replacement of OPEX fleet with $2.5M Capex Program to go owner operator

Horizontal development at Torrecillas to discover low cost ounces to the east and west

Bring on additional veins (Ady, Tessie and Rebeca)

Sourcing of additional oxide ore within the existing mining permit and also third party ore

for toll treatment to ensure the plant runs at maximum capacity.

Due to the high grade nature of our own resource, we would be looking to only source third party ore that

grades in excess of 20 gpt Au”

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San Santiago Processing Plant

Plant Highlights

Fully permitted 350TPD Cu and Au Plant

Located ~180km from Torrecillas mine

Hydo grid power, local bore water supply

Copper sulphide, copper oxide, CIP circuits

Supportive community – all miners

Synergy with MIZ Gold Business

LOI for lease of CIP circuit signed in

December.

Low CAPEX to de-couple the crushing circuit

Increase gold recoveries by up to 15%

Decrease cash costs by >US$220 / oz

Provides as opportunity to toll treat high grade

ore for third parties to fill idle capacity

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2014 Strategy Objectives – Decrease C3 Cash Cost

Key assumptions applied in the above forecasts:

1. Gold grade of feed material is 10gpt Au and recover 93% based on known metallurgy of the ore from Torrecillas , Ady and Tessie.

2. Benefit from lease of mill includes both cost reduction per tonne and also improved revenue from getting 100% of the contained gold post

processing.

3. Gold price of $1,250 per ounce assumed in calculating benefit per tonne processed.

4. CAPEX benefit assesses the cost per ounce saving expected from outright purchase of quality used or refurbished equipment versus

ongoing dry hire of equipment as occurs today.

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Peru Project Overview – Torrecillas – 100%

Torrecillas Gold Project – 13,000 ha package

Torrecillas Mine – 102,000 oz @ 16.1gpt Au.

Currently in production with a run rate at 1,100oz/m by Dec 2014.

New ore shoot discovered 2H13 that has added approximately 18% to the known strike (additional

35m) grading 40.66gpt Au.

Every time we develop horizontal outside the resource model east and west, new ore zones are

discovered – the real potential of Torrecillas is still to be unlocked.

Only one of 23 known veins tested in


Peru Project Overview – Tumi – 100% Owned

Tumi Au / Cu Project – 3,400 ha package

Recent discovery of a large gold, silver and

copper Breccia hosted mineralised area that

covers approximately 1.6km2.

Trench samples (27) returned an average of

2.16gpt Au, 0.6gpt Ag and 0.1% Cu.

Breccia exploration target of 60-80Mt at 1gpt Au

and 0.15% Cu plus Ag and Mo credits.

Potential to improve grade and increase tonnage

with geophysics and RC drilling program

focusing on high grade.

New intrusive anomaly (600m x 800m)

associated with the Breccia and four new

breccia targets identified from magnetic model.

Easy access to power, water and ports.

*The term “Exploration Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2012) and therefore the term

has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.

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Peru Project Overview – Tumi – 100% Owned

Magnetics completed in Jan 2014 have identified a substantial magnetic anomaly under cover and proven the

potential of the two main Tumi breccia outcrops at depth up to 400m

New anomaly is located 150m from outcropping Au/Ag/Cu/Mo breccia mapped and sampled in detail in 2013.

4 additional outcropping breccia identified – one with visible Cu oxides.

3D modelling completed in mid Jan 2014 suggests the anomaly is associated with the Tumi breccia and

others.

2nd phase of geophysical work commenced this week through an IP program to test the potential presence

of sulphide mineralisation at the main breccia target and also in the area surrounding the magnetic high.

New magnetic anomaly

under cover NE of the

outcropping breccia

Previously identified

400x400m outcropping

mineralised breccia

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Brazil F

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Engenho Project Brazil – MIZ & Mineralis JV

1. JV 40% MIZ – 60% Mineralis. $4.5m to be invested by Mineralis to earn 60% equity by

late 2014.

2. More than $50M invested in the Brazilian asset portfolio to date.

3. Crista open pit (feasibility studies completed for JORC Reserve of 24,000 oz at 4.1g/t

Au and permitted) and Olhos (exploration) projects.

4. 700tpd processing plant and associated infrastructure in place. Constructed in 2008

and on active C&M.

5. Substantial upside potential through exploration to build a 3-4 year open pit mining

operation.

6. Fully permitted and all regulatory and political hurdles have been passed.

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Drilling at Torrecillas – July 2011

Contact: Ashley Pattison, CEO

45 Ventnor Avenue, West Perth, Australia Tel: +61 8

9200 1860

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Disclosures

Competent Person’s Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information reviewed by Dr Alex Losada-Calderon who is a

Member of the Australasian Institute of Mining and Metallurgy. Dr Losada-Calderon is the Non-Executive Chairman of Minera Gold Ltd and is employed by TAE

Resources Pty Ltd, who acts as consulting geologist to Minera Gold Limited. Dr Losada-Calderon has sufficient experience which is relevant to the style of

mineralisation and the type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012

Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Losada-Calderon consents to the inclusion in the

report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

The document (Document) is provided on the basis that none of Minera Gold Limited ACN 117 790 897 (MIZ) nor its respective officers, shareholders, related

bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the origin, validity,

accuracy, reliability, relevance, currency or completeness of the material contained in the Document and no responsibility is taken for any errors or omissions.

Nothing contained in the Document is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. MIZ excludes all

warranties (including implied warranties) and all liability that can be excluded by law for any loss, claim, damage, cost or expense of any nature arising out of that

Document (or any accompanying or other information) whatsoever, nor by reason of any reliance upon it. MIZ accepts no responsibility to update any person

regarding any inaccuracy, omission or change in information in this Document or any other information made available to a person or any obligation to furnish the

person with any further information.

The Document may contain prospective financial material which is predictive in nature and based on certain assumptions. Accordingly, actual financial results may

be affected by assumptions which prove to be inaccurate or by known or unknown risks and uncertainties, and are likely to differ, possibly materially, from results

ultimately achieved. The Document may contain "forward-looking statements". All statements other than those of historical facts included in the Document are

forward-looking statements including, without limitation, (i) estimates of future earnings, and the sensitivity of earnings to the gold and other metals prices; (ii)

estimates of future gold and other metals production and sales; (iii) estimates of future cash costs; (iv) estimates of future cash flows, and the sensitivity of cash

flows to gold and other metals prices; (v) estimates of future capital expenditures; and (vi) estimates of reserves, and statements regarding future exploration results

and the replacement of reserves. Where MIZ expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in

good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause

actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to,

gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade, recovery rates or other matters from those

assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. MIZ does not undertake any obligation to

release publicly any revisions to any "forward-looking statement" to reflect events or circumstances after the date of the Document, or to reflect the occurrence of

unanticipated events, except as may be required under applicable securities laws.

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