sage gold inc. corporate presentation
TRANSCRIPT
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Near Term Production with Exploration Upside Investor Presentation | January 2017
Forward Looking Statements
Statements made in this presentation, other than those concerning historical information, should be considered forward-looking statements which are subject to various risks and uncertainties. Such forward-looking statements are made based on management’s belief as well as assumptions made by, and information currently available to, management.
The Company’s actual results may differ materially from the results anticipated in such forward-looking statements as a result of a variety of factors. Additional information concerning factors that could cause actual results to materially differ from those in such forward-looking statements is contained in the Company’s filings with the securities and regulatory authorities.
Note: grade and tonnage historical estimates for Headway presented herein are historical in nature and were not prepared in accordance with 43-101 and has not been verified by a qualified person. and should not be relied on except to represent an order-of-magnitude estimate of mineral resources notwithstanding that Sage believes the estimates are based on reliable information prepared by reputable individuals using accurate analytical techniques. Goldbrook provided the source of the Headway historical estimate.
Sage currently plans on completing a reserve estimate and a prefeasibility study for the Clavos project. In the event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.
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Canadian near term producer/explorer with two principal assets in Ontario’s most significant and historic mining camps – Timmins and Beardmore.
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Highlights
CLAVOS
• 320,000 ounce Indicated and Inferred gold project located amongst major industry players and adjacent to Primero
• 100% owned by Sage
• One of the lowest CAPEX in the industry, $70+ million historically invested by St. Andrew Goldfields and Sage
• Toll milling agreement – Primero – Stock Mill
• Permits – fully permitted for Production
ONAMAN
• The 100% owned Onaman Property north of Beardmore, offers exploration upside - VMS core with compliant polymetallic resources on the Lynx stringer deposit
• Acquired highly prospective VMS land package contiguous to Onaman
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Aggressive goal for both properties in production 2017 and 2019
Board of Directors
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Management has a long history of moving grassroots exploration projects into production
Patrick J. Mars Chairman and Director
Mr. Mars is an independent consultant specializing in mine financing and analysis with over 30 years of experience in the investment
industry. Mr. Mars has acted as Chairman, CEO, or Director for several public-traded mining companies and is currently a Director of
Yamana Gold and Aura Minerals.
Peter Bojtos Director
Mr. Bojtos is a professional engineer with extensive experience in mineral development and production. Since 1996 following a successful
career as CEO of several companies, Mr. Bojtos serves on mining company boards as an independent Director.
C. Nigel Lees President, CEO & Director
Mr. Lees is a founder and past director of TVX Gold Inc., a significant gold producer in North and South America, which merged into Kinross
Gold, listed on the TSX and the New York Stock Exchange. Mr. Lees has over 30 years experience in the Canadian investment industry and
is currently a Director of Yamana Gold.
Gary Robertson Director
Mr. Robertson is a Certified Financial Planner. He has worked in the financial industry for the past twenty years, and presently serves on
the board of several private companies as well as on the board of six Canadian junior gold mining companies. .
Peter Freeman Director
Mr. Freeman has over 30 year’s experience working in Financial Services in the City of London, including regulatory and compliance
roles within authorised firms and exchanges, as well as board roles in publicly quoted companies. He is a Senior Regulatory Officer at a
UK Recognised Investment Exchange; a Lay member of the Upper Tribunal (Tax & Chancery) and the Probate Committee of the
ICAEW. He is also a director of TSX-V quoted Cabo Drilling Inc., of Capital Lease Aviation PLC and of Jenolan Ltd.
Management and Consultants
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William D. Love VP, Business Development
Mr. Love is a geologist who has been involved in mineral exploration in Canada and was part of the world class Hemlo discovery team. He
was also an institutional equity salesperson in London, England, for a Canadian brokerage firm. Mr. Love has spent the last fifteen years as
a venture capitalist and a corporate finance specialist in a variety of resource and technology companies.
C. Nigel Lees President, CEO & Director
Mr. Lees is a founder and past director of TVX Gold Inc., a significant gold producer in North and South America, which merged into Kinross
Gold, listed on the TSX and the New York Stock Exchange. Mr. Lees has over 30 years experience in the Canadian investment industry and
is currently a Director of Yamana Gold.
David McDonald Chief Financial Officer
Mr. McDonald brings over 25 years of experience in CFO roles in private and public companies, focusing on the mining industry since
2006. Mr. McDonald is a CPA, CA and holds an Honors Bachelor of Commerce from Laurentian University in Sudbury
Avrom E. Howard MSc, P.Geo
Senior Geologist
Mr. Howard obtained a Bachelor of Science degree in Geology from the University of Toronto, and a Master of Science degree in
Economic Geology from the University of Colorado (Boulder). Subsequently, he obtained certification as a Gemologist from the
Gemmological Association of Great Britain. His professional experience spans a wide variety of mineral commodities, geological settings,
countries and continents.
Peter Hubacheck P.Geo, QP
Senior Geologist
Mr. Hubacheck is a consulting geologist and President of W. A. Hubacheck Consultants Ltd. With over 35 years of experience as a
project geologist, exploration manager and Qualified Person for the purposes of NI 43-101, with experience in the exploration for gold,
silver, base metals, uranium and diamonds in Canada and the USA. He holds a Mining Technologist diploma from the Haileybury School
of Mines and Technology and a B.A.Sc. (Geol. Eng.) degree from the South Dakota School of Mines and Technology
Bob Ritchie P.Eng, QP
Project Manager
Mr. Ritchie is a Professional Engineer with over 40 years of experience in mine management and development, feasibility studies and
mine construction. He has worked with several mining companies including Goldcorp, Noranda Mines and St. Andrew Goldfields. He was
responsible for the construction of the Stock (now Brigus Gold) Mill. Mr. Ritchie is a graduate of the Michigan Technological University with
a Bachelor of Science in Geology Engineering. He is also a Qualified Person (QP) as defined by NI43-101.
Capital Structure
Symbol TSX.V:SGX
Shares Outstanding 67.5 million
Shares Fully Diluted 94.5* million
Current Price $0.13
52 week high/low $0.16/$0.025
Market Cap CAD $8.8 million
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As at January 18, 2017 * Excludes 7.8 million restricted Special Warrants exercisable into Units of one common share and one Warrant.
If exercised the shares outstanding will be 75.3 million and fully diluted, 102.3 million.
Timmins Gold Camp Clavos Project
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Purchased 40% minority interest in Clavos
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BREAKING NEWS
Changed Project Status from Inactive to Active. Permitted up to 700 tonnes/day.
Signed life of mine toll milling contract with Primero Mining.
Raised $1.85 million in equity financing.
Raised $9.65 million to place Clavos into production.
Ideal Location
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Mineral Resources 10/2012
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Indicated Resources Inferred Resources
Tonnes Gr (g/t Au) Oz Au Tonnes Gr (g/t Au) Oz Au
Hangingwall 595,900 4.92 94,300 119,000 5.60 21,000
Footwall 267,000 5.11 43,900 162,000 4.20 22,000
Contact 237,800 4.45 34,000 - - -
Sediment 66,400 5.07 10,800 243,000 4.20 33,000
Other - - - 112,000 6.00 22,000
Subtotal 1,167,100 4.88 183,000 636,000 4.80 98,000
Indicated Resources Inferred Resources
Tonnes Gr (g/t Au) Oz Au Tonnes Gr (g/t Au) Oz Au
Hangingwall 69,900 4.04 9,100 77,000 5.0 12,000
Footwall 10,200 3.91 1,300 51,000 3.5 6,000
Sediment 11,200 3.51 1,300 32,000 4.7 5,000
Subtotal 91,300 3.99 11,700 160,000 4.5 23,000
Note: The 2012 resources are estimated at a cut-off grade of 2.75 g/t Au, high gold assays are cut to 60 g/t Au and an average long-term gold price of US$1600 per ounce was used.
Hangingwall Zones
Contact Zones
Footwall Zones
Sediment Hosted Zones
Other Zones
0 100 200m
960 ZONE MAIN ZONE
MAIN ZONE 960 ZONE
Over 2000 intersections that are outside the resource blocks. Potential increase in tonnage.
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High grade exploration potential
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17.4 gpt/1.5m
N
KC99-154
S
5.9 gpt/0.9m
Looking East
10.9 gpt/0.5m
65.3 gpt/4.2m Incl. 374.1 g/t over 0.7m
9.4 gpt/1.0m
KC99-155
Contact
Zone
Sediment
Hosted
Zones
KC99-154
KC99-155
Hangingwall Zones
Contact Zones
Footwall Zones
Sediment Hosted Zones
Other Zones
Porphyry
Sediment
Altered Ultramafic
Ultramafic and Volcanics
At depth very good intersections,
and potentially another high
grade mine zone.
Exploration Potential
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Plunging high Grade Zones?
? ? ?
1.0 to 2.5
2.5 to 5.0
5.0 to 10.0
10.0 to 50.0
50.0+
Drillhole Au
Legend (gpt)
①
3 3
65.3 gpt/4.2m
7.0 gpt/1.5m 8.4 gpt/0.9m
10.5 gpt/3.4m
9.4 gpt/1.0m
960 ZONE MAIN ZONE Plunging high Grade Zones
Potential connection between
Main Zone and 960 Zone
Extension along strike
(east and west directions)
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2 3
1
2
3
0 200 400m
Recent gold price CDN$1600 Already beyond $1500 base case, which will will have a materially positive impact on revenue and profitability.
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Clavos PEA 2013 Economic Model
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GOLD PRICE USD / Oz (Au) $1500/Oz Base Case
Gold Production Oz/Au 145,448
Revenue $CAD million 218.2
Initial Capital Expenditures (100%) - See Note 1 $CAD million 8.0
Sustaining Capital $CAD million 21.1
Total Capital $CAD million 35.1
Operating Expense CAD t/Ore 142.5
Net Smelter Return CAD t/Ore 6.5
Cash flow (undiscounted) – See Note 2 $CAD million 34.0
Pre Tax – See Note 3
Net Present Value (NPV) 8% $CAD million 23.2
Internal Rate Of Return (IRR) % 71%
After Tax
Net Present Value (NPV) 8% $CAD million 12.6
Internal Rate Of Return (IRR) % 47%
Life of Mine Year 7
Payback Period Year 2.00
Note - assumes an exchange rate of 1:1 of CDN to US Dollar;
1. contingency on capital expenditures of 30% and represents 100% ownership
• Initial CAPEX $8 million
• Life of mine $14.1 million
2. tax rates are based on a blended rate between Sage and SAS
3. excludes any financing costs
The PEA does not indicate the economic viability of the mineral resource and is preliminary in nature, includes inferred resources that are
considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as
mineral reserves and that there is no certainty that the PEA will be realized. Mineral resources that are not mined reserves do not have
demonstrated economic viability.
Onaman Property Lynx Deposit
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Situated in NW Ontario
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Path to Production … & Beyond
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Lac Des Iles(palladium‐platinum)
0 35 70km
OnamanProperty
Ontario
Northern Empire Mine (gold)
Leitch Mine (gold)
Brookbank Deposit(gold)
Hemlo (gold)
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N
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North American Palladium Ltd.
Premier Gold Mines Ltd. & Centerra Gold Inc.
Premier Gold Mines Ltd.
Barrick Gold Corp.
Sage Gold Inc.
ClavosProperty
Hardrock/Trans Canada Deposit (gold)
Mattabi Mine(zinc‐copper‐silver)
Laurion Minerals Exploration Inc.
Marshall Lake Property(copper‐zinc‐silver‐gold)
Copper Lake Resources Ltd.
Other Company
Wawa Subprovince
YoungerRocks
WabigoonSubprovince
ArcheanMetasediments
Ishkoday Property(copper‐gold)
Lake Superior
ONAMAN PROPERTY(copper‐gold‐zinc‐silver)
Gold‐dominant southern sedimentary belt
Polymetallic northern volcanic belt
TRANS CANADA HIGHWAY
TRANS CANADA HIGHWAY
Northwestern OntarioOnaman Property
Thunder BayMarathon
Beardmore
Geraldton
Lake Nipigon
Exploring for High Value VMS Deposits
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Volcanic-hosted polymetallic sulfide (VMS)
deposits are extremely attractive
exploration targets:
• Mix of copper-lead-zinc-gold-silver
• Hedge against fluctuating metal prices
• Deposits can range from under 1 to over 100
million tonnes
• Large, discrete lenses of high value ore enables
cost-effective mining
• Smaller surface and environmental footprint
• VHMS deposits tend to occur in clusters
• Additional discoveries often following one upon
the other
Onaman Property: On the verge of discovery
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Historical exploration (1940s) led to discovery of the Headway deposit, hosting 739,400 tons averaging 3.15% zinc and 31 g/t silver (Non-Compliant Historical Resource)
Recent exploration (2000s) led to the discovery of the Lynx deposit with a Compliant Inferred Resource of 1.936 million tonnes averaging 1.44% copper, 39.6 g/t silver and 0.58 g/t gold
Both deposits fit perfectly within the context of a classic VMS setting, with the main deposit remaining to be found
Historical and current geological mapping has documented numerous features associated with the VMS setting
Milestones
CLAVOS
Q3 2012 Fully Permitted Q1 2013 PEA Completed Q3 2016 Enhanced resource modelling Finalizing all regulatory and logistical production requirements Q4 2016 Purchased 40% minority interest Signed LOM milling contract Production approval Q1 2017 Dewatering begins Q1 2017 Surface Drill program Q3 2017 Production begins
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ONAMAN
Q3 2016 Complete surface mapping of
the IBZ zone
Mapping to identify new zone
and link to previous Sage geophysics
Analyzing previously discovered
massive sulphide float bolder
Q4 2016 Interpretation of data with the aim of
selecting drill targets in IBZ
Q1 2017 Acquired Strategic Property
Q1 2017 Surface Drill program
Two properties, situated in established mining camps near industry players, offer production potential with low CAPEX, exploration upside and commodity diversification.
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Why invest?
Clavos – Dewatering, Drilling Q1 2017, Production Q3 2017, new Gold structures to be drilled Onaman - VMS targets selected, Acquired Strategic Property, Drilling Q1 2017
Rerating event – Project Financing – non-dilutive, Clavos Production, Onaman New Discoveries, Timmins camp consolidating
Strong financial backing, and broad shareholder base.
With production, development and exploration
stage assets consisting of both base and
precious metals, an experienced and dedicated
management team, commodity diversification and
a renewed metals bull market underway,
Sage is poised for significant appreciation.
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CONTACT
Sage Gold Inc. 200 University Ave, Suite 1301 Toronto, ON M5H 3C6 Tel.: 416-204-3170 Fax: 416-260-2243
Karen Levy [email protected]