updated life of mine plan technical session
TRANSCRIPT
February 21, 2018
Updated Life of Mine Plan Technical Session
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This presentation of Guyana Goldfields Inc. (the "Company") containsstatements that constitute "forward-looking statements." Such forward-lookingstatements involve known and unknown risks, uncertainties and other factorsthat may cause our actual results, performance or achievements, ordevelopments in our industry, to differ materially from the anticipated results,performance or achievements expressed or implied by such forward-lookingstatements. Forward looking statements are statements that are not historicalfacts and are generally, but not always, identified by the words "expects,""aims," "plans," "anticipates," "believes," "intends," "estimates," "projects,""potential" and similar expressions, or that events or conditions "will," "would,""may," "could" or "should" occur. Information inferred from the interpretation ofdrilling results and information concerning mineral resource and mineral reserveestimates may also be deemed to be forward looking statements, as suchinformation constitutes a prediction of what might be found to be present whenand if a project is actually developed. Forward-looking statements this documentinclude statements regarding: the Company's expectations regarding drillingand exploration activities on properties in which the Company has an interest;and the Company's statements regarding estimates of reserves and resourceson properties in which the Company has an interest.
There can be no assurance that such statements will prove to be accurate.Actual results and future events could differ materially from those anticipated insuch statements, and readers are cautioned not to place undue reliance onthese forward-looking statements that speak only as of their respective dates.Important factors that could cause actual results to differ materially from theCompany's expectations include among others, risks related to fluctuations inmineral prices; uncertainties related to raising sufficient financing to fundplanned work in a timely manner and on acceptable terms; changes in plannedwork resulting from weather, logistical, technical or other factors; the possibilitythat results of work will not fulfill expectations and realize the perceived potentialof the Company's properties; uncertainties involved in the estimation ofresources and reserves; the possibility that required permits may not beobtained on a timely manner or at all; the possibility that capital and operatingcosts may be higher than currently estimated and may preclude commercialdevelopment or render operations uneconomic; the possibility that the estimatedrecovery rates may not be achieved; risk of accidents, equipment breakdownsand labour disputes or
other unanticipated difficulties or interruptions; the possibility of cost overrun orunanticipated expenses in the work program; the risk of environmentalcontamination or damage resulting from the Company's operations; risksassociated with title to mineral properties; and other risks and uncertaintiesdiscussed appear elsewhere in the Company's documents filed from time totime with the Toronto Stock Exchange and Canadian securities regulators.
These statements are based on a number of assumptions, includingassumptions regarding general market conditions, the availability of financing forproposed transactions and programs on reasonable terms, the cost ofexploration and development and the ability of outside service providers todeliver services in a satisfactory and timely manner. Forward-looking statementsare based on the beliefs, estimates and opinions of the Company'smanagement on the date the statements are made. Except as expresslyrequired by applicable securities laws, the Corporation undertakes no obligationto update these forward-looking statements in the event that management'sbeliefs, estimates or opinions, or other factors, should change.
This presentation uses the terms "Inferred Resource", "Indicated Resource",“Measured Resource” and "Mineral Resource". The Company advises readersthat although these terms are recognized and required by Canadian securitiesregulations (under National Instrument 43-101 "Standards of Disclosure forMineral Projects"), the US Securities and Exchange Commission does notrecognize these terms. Readers are cautioned not to assume that any part or allof the mineral deposits in these categories will ever be converted into reserves.In addition, "Inferred Resources" have a great amount of uncertainty as to theirexistence, and economic and legal feasibility. It cannot be assumed that anypart of an Indicated or Inferred Mineral Resource will ever be upgraded to ahigher category. Under Canadian rules, estimates of Inferred Mineral Resourcesmay not form the basis of feasibility or pre-feasibility studies, or economicstudies except for a Preliminary Assessment as defined and permitted underNational Instrument 43-101. Readers are cautioned not to assume that part orall of an Inferred Resource exists, or is economically or legally mineable. TheMineral Resources stated in this presentation are not Mineral Reserves and, inthe absence of a current feasibility study, do not demonstrate economic viability.The determination of Mineral Reserves can be affected by various factorsincluding environmental, permitting, legal, title, taxation, socio-political, andmarketing issues.
FORWARD LOOKING STATEMENT
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AGENDA
Time Description Presenter Company
11:00‐11:30 AM Opening Remarks Scott Caldwell GUY
11:30‐11:45 AM Reserves & Resources Scott Caldwell GUY
11:45AM ‐12:00 PM Open Pit Gord Doerksen JDS Mining
Buffet Lunch Available ‐ 5 mins Break
12:05‐12:30 PM Underground Trace Arlaud JDS Mining
12:30‐1:00 PM Metallurgy & Processing Scott Caldwell GUY
1:00‐1:30 PM Exploration Daniel Noone GUY
1:30 PM Closing Remarks Scott Caldwell GUY
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2018 Updated Mine Plan: Factors
• Eliminate RK OP stripping bubble in 2019/2020
• Limit total OP production to 70,000 t/d
• Utilize a combination of high‐grade long hole open stoping (“LHOS”) early followed by sub level cave (“SLC”) to maximize value
• Maintain tonalite feed to the mill
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Updated Mine Plan: Highlights
1 This is a non-IFRS measure. Refer to non-IFRS Performance Measures section.
Description 2018 LOM Plan 2017 Updated FS*
Ore tonnes (Mt) 43.0 34.7
Average grade (Au oz/t) 2.87 3.00
Process recovery (%) 94.8 93.8
Payable gold (Moz) 3.8 3.1
Annual gold production (2018‐2022 koz) 270 242
Mine Life (years) 16 14
AISC ($/oz)¹ 797 745
Post‐tax NPV5% (M$) 898 821
*Adjusted to commence in 2018
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2018 Guidance
2018 Guidance
Gold production 190,000-210,000
Cost of sales (production costs, royalty and depreciation) $850-900/oz
Cash cost¹, excluding royalty $430-480/ozAll-in sustaining1 (“AISC”) $830-880/oz
(1) This is a non-GAAP measure. Refer to Non-GAAP Performance Measures section
• Production is expected to be weighted towards the second half of the year due to minesequencing and increased throughput to be available with the completion of the phase 1expansion.
• The 2018 mine plan is primarily made up of all hard rock ore from the central tonalite/diorite ore at Rory’s Knoll and East Walcott deposits.
• Costs are based on an increased stripping rate during 2018, offset by the increased and more cost-efficient production offered by the process plant expansion investments.
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MINERAL RESERVES
As at December 31, 2017
Category Quantity(kt)
Grade(g/t Au)
Ounces(k Oz)
ProvenOP Saprolite 108 0.73 3OP Rock 4,569 2.75 404Total Proven 4,677 2.70 406ProbableOP Saprolite 2,291 1.77 130OP Rock 12,959 2.81 1,172UG Rock 23,120 3.04 2,262Total Probable 38,370 2.89 3,565Total P&P 43,047 2.87 3,971
1. The CIM definitions were followed for mineral reserves.2. Mineral Reserves are based on a gold price of US$1,200 per ounce, an 8% royalty and an average
metallurgical recovery of 96.0% for saprolite and 94.0% for fresh rock material.3. Open pit saprolite and rock reserves are reported at a cut-off grade of 0.44 g/t Au and 0.42 g/t Au
for vein and upper saprolite material respectively. Open pit rock reserves are reported at a cut-offgrade of 0.76 g/t Au and 0.64 g/t Au for vein and Rory’s Knoll rock material respectively.
4. Underground fresh rock reserves are reported at a cut-off grade of 1.5 g/t Au.5. Mineral reserves are contained within mineral resources.6. All figures have been rounded to reflect the relative accuracy of the estimates. Numbers may not
add due to rounding7. The mineral reserve estimate was prepared by Tysen Hantelmann, P.Eng. and Gord Doerksen,
P.Eng of JDS Mining and both are a “qualified person” under National Instrument 43-101.
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MINERAL RESERVES – BREAKDOWN
As at Dec 31, 2017Proven & Probable
Quantity Grade Ounces Waste Strip(kt) (g/t Au) (k Oz) (kt) Ratio
OPEN PITRory's Knoll 10,407 2.85 954 88,505 8.5Aleck Hill 5,862 2.73 515 50,822 8.7Satellites 2,753 2.33 206 30,049 10.9Stockpile 905 1.16 34
OP - Total 19,927 2.67 1,709 169,376 8.9UNDERGROUNDRory's Knoll 21,368 2.92 2,003Aleck Hill 1,108 4.28 153Mad Kiss 643 5.18 107
UG - Total 23,120 3.04 2,262OP + UG -Total 43,047 2.87 3,971
1. The CIM definitions were followed for mineral reserves.2. Mineral Reserves are based on a gold price of US$1,200 per ounce, an 8% royalty and an average
metallurgical recovery of 96.0% for saprolite and 94.0% for fresh rock material.3. Open pit saprolite and rock reserves are reported at a cut-off grade of 0.44 g/t Au and 0.42 g/t Au
for vein and upper saprolite material respectively. Open pit rock reserves are reported at a cut-offgrade of 0.76 g/t Au and 0.64 g/t Au for vein and Rory’s Knoll rock material respectively.
4. Underground fresh rock reserves are reported at a cut-off grade of 1.5 g/t Au.5. Mineral reserves are contained within mineral resources.6. All figures have been rounded to reflect the relative accuracy of the estimates. Numbers may not
add due to rounding7. The mineral reserve estimate was prepared by Tysen Hantelmann, P.Eng. and Gord Doerksen,
P.Eng of JDS Mining and both are a “qualified person” under National Instrument 43-101.
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MINERAL RESOURCESAs at December 31, 2017
CategoryQuantity
(kt)Grade
(g/t Au)Ounces(k Oz)
MeasuredOP Saprolite 108 0.73 3 OP Rock 4,728 2.91 442 Total Measured 4,836 2.86 445 IndicatedOP Saprolite 1,404 0.93 42 OP Rock 20,901 2.60 1,747 UG Rock 30,060 3.91 3,780 Total Indicated 52,365 3.31 5,569 Total M + I 57,201 3.27 6,014 InferredOP Saprolite 1,939 0.91 57 OP Rock 2,581 1.93 161 UG Rock 11,810 4.12 1,560 Total Inferred 16,330 3.39 1,777
1. The CIM definitions were followed for mineral resources.2. Mineral resources are inclusive of mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic viability.3. All figures have been rounded to reflect the relative accuracy of the estimates. Number may not add due to rounding.4. Open pit mineral resources are reported at a cut-off grade of 0.30 g/t for Saprolite and 0.40 g/t for Fresh rock respectively, and underground mineral resources are reported at a cut-off grade of 1.8 g/t. Cut-off
grades are based on a price of US$1,300 per ounce of gold and a gold recoveries of 97 percent for saprolite and 94.5 percent for fresh material.5. Mineral resources have been adjusted using the 2017 EOY topography, to account for open pit mining to date, and include ore stockpile inventories as of EOY 2017.6. The qualified person is not aware of any mining, metallurgical, infrastructure, permitting, or other factors that could materially affect the mineral resource estimates.7. The mineral resource estimate for Rory’s Knoll was prepared under the supervision of Tim Maunula, of T. Maunula & Associates Consulting Ltd. Mr. Maunula is a “qualified person” under NI 43-101 and
is independent of the Company. The mineral resource estimate for the satellites was prepared under the supervision of Daniel Noone of Guyana Goldfields Inc. Mr. Noone is a “qualified person” underNational Instrument 43-101.
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ORE PROCESSED BY SOURCE
‐
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
‐
0.5
1.0
1.5
2.0
2.5
3.0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Grade
(gpt)
Ore Processed
(Mtonn
es)
ORE Processed
UG OP SP Ave Grade
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Rory’s Knoll
Alek Hill
Alek Hill North
WalcottHill
Mad Kiss
OPEN PIT
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SITE LAYOUT: Aurora Gold Mine
Rory’s Knoll
Walcott Hill
Mad Kiss
Aleck HillNorth Aleck Hill
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Rory’s Knoll
Aleck Hill
Aleck Hill North
WalcottHill
Mad Kiss
OPEN PIT ORE SOURCES
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Rory’s Knoll
Alek Hill
Alek Hill North
WalcottHill
Mad Kiss
OPEN PIT SEQUENCING
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Rory’s Knoll
Alek Hill
WalcottHill
Mad Kiss
OPEN PIT SEQUENCING
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Rory’s Knoll
Alek Hill
WalcottHill
Mad Kiss
OPEN PIT SEQUENCING
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Rory’s Knoll
Alek Hill
WalcottHill
Mad Kiss
OPEN PIT SEQUENCING
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Rory’s Knoll
Alek Hill
WalcottHill
Mad Kiss
OPEN PIT SEQUENCING
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Rory’s Knoll
Alek Hill
WalcottHill
Mad Kiss
OPEN PIT SEQUENCING
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Rory’s Knoll
Alek Hill
WalcottHill
Mad Kiss
OPEN PIT SEQUENCING
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Rory’s Knoll
Alek Hill
WalcottHill
Mad Kiss
OPEN PIT SEQUENCING
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Source Ore(Mt)
M/H Grade(g/t)
ContainedGold(Moz)
Waste(Mt) Strip Ratio
Rory’s Knoll 10.4 2.85 0.95 88.5 8.5
Aleck Hill 5.9 2.73 0.52 50.8 8.7
North Aleck Hill 1.9 1.81 0.11 17.4 9.4
Mad Kiss 0.6 4.32 0.08 9.4 16.1
Walcott 0.3 1.53 0.02 3.3 10.3
2018 LOM Total 19.0 2.74 1.68 169.4 8.9
OPEN PIT ORE SOURCES
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OPEN PIT ORE AND WASTE MINING
‐
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
‐
5
10
15
20
25
30
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Mined
Grade
(gpt)
Material M
ined
(Mtonn
es)
OP Material Mined
Ore Waste Grade
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OPEN PIT TONNES MINED BY SOURCE
‐
10
20
30
40
50
60
70
80
‐
5
10
15
20
25
30
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Mining Ra
te (k
tpd)
Material M
ined
(Mtonn
es)
OP Material by Source
RK AH AN WH MK tpd
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Rory’s Knoll
Alek Hill
Alek Hill North
WalcottHill
Mad Kiss
UNDERGROUND
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RK longhole stopes (LHS) are mined while the open pit is operating.
The crown pillar between the OP and the longhole stopes is taken out after the RK pit is finished.
Sub level cave (SLC) mining begins after the primary longhole stopes are complete.
Satellite deposits will be scheduled to fill in production gaps
RORY’S KNOLL (RK) UNDERGROUND
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0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Oun
ces
Tonn
es
RK & EW UG Production
Au (oz) Tonnes
UG PRODUCTION SUMMARY
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RESERVE BY ELEVATION
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
‐285
‐310
‐335
‐360
‐385
‐410
‐435
‐460
‐485
‐510
‐535
‐560
‐585
‐610
‐635
‐660
‐685
‐710
‐735
‐760
‐785
‐810
‐835
‐860
‐885
‐910
‐935
‐960
‐985
‐101
0‐103
5‐106
0‐108
5‐111
0‐113
5
Oun
ces
Tonn
es
Reserves by Level
Ounces Tonnes
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2018
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2019
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2020
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2021
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2022
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2023
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2024
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2025
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2026
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2027
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2028
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2029
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2030
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2031
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2032
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2033
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DRAW CONTROL
• High Grade Crown pillars and primary stopes higher grade mined and recovered prior to commencing SLC‐ SLR
• In caving finer material is preferentially draw over coarse material (in SLC‐ SLR fine fragmentation is created through blasting, with the use of both powder factor and blast timing).
• As SLC‐SLR is typically choke blasting (no free face ‐ blasting against blasted or cave material a higher powder factor is used with a tight initiation pattern).
• In LHS a slightly lower powder factor is used compare to SLC‐SLR as there is a free face to blast too.
• In the pillar wrecking zone – lower powders factors will be used to ensure the material is more coarser than the SLC‐SLR material to ensure it will not preferentially draw over the high grade. This can also be achieved by a more open – slower initiation pattern in the blasting and more open drill pattern.
• Material above the pillar wrecking zone will be allowed to cave naturally, thus anticipate to be the most coarse material.
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Source Tonnes(Mt)
MH Grade(g/t)
MH Gold(koz)
Rory’s Knoll Dev 1.0 3.11 99
Rory’s Knoll LH 2.4 3.98 302
Rory’s Knoll SLC 17.2 2.76 1,525
Aleck Hill 1.1 4.28 153
Mad Kiss 0.6 5.18 107
East Walcott 0.8 2.90 78
TOTAL 23.1 3.04 2,262
UNDERGROUND ORE SOURCES
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UG MATERIAL BY SOURCE
‐
1.0
2.0
3.0
4.0
5.0
6.0
‐
0.5
1.0
1.5
2.0
2.5
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Mined
Grade
(gpt)
Material M
ined
(Mtonn
es)
UG Material by Source
RK Development RK LH RK SLC MK AH RK‐EW LH Grade
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COMBINED RECOVERED GOLD
‐
50
100
150
200
250
300
350
‐
5
10
15
20
25
30
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Gold Re
covered (k oz)
Material M
ined
(Mtonn
es)
Total Material Mined / Gold Recovered
Ore Processed UG Ore OP Ore Waste Recovered Oz 2017 FS Oz
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RECOVERED GOLD / COSTS
0
200
400
600
800
1,000
1,200
‐
50
100
150
200
250
300
350
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Costs (US$
/oz)
Recovered Oz
Gold Recovered / Costs
Recovered Oz Operating Cash Cost AISC
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OPEX
Description Unit 2018 LOM 2017 Updated FS
OP Mining $/tonne mined 2.20 2.09
RK UG Mining $/ore t mined 24.83 25.72
Satellite UG Mining $/ore t mined 48.35 50.82
Processing $/t processed 16.06 14.25
G&A $/t processed 9.12 8.67
Operating Cash Cost¹ (w/ royalty) $/oz 627 613
Operating Cash Cost¹ (excl. royalty) $/oz 531 517
AISC¹ $/oz 797 745
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CAPEX
Initial Unit LOM 2018 2019 2020UG Mining - RK US$M (88.8) (9.1) (62.6) (17.1)UG Mining - Sat US$M (61.8) (9.8) (10.4)OP Mining US$M (1.9) (1.9)Processing US$M (12.9) (12.9)On-Site Infrastructure US$M 0.0Off-Site Infrastructure US$M 0.0Owner's Costs US$M (0.7) (0.7)Initial Subtotal US$M (166.1) (34.4) (73.0) (17.1)SustainingUG Mining - RK US$M (160.0) (17.1)UG Mining - Sat US$M (47.3) (3.2) (10.8)OP Mining US$M (3.0) (3.0)Processing US$M (28.8) (0.8) (4.0) (2.0)Tailings Management US$M (18.8) (1.0) (2.8)EPCM & Indirects US$M (14.3) (2.8) (11.4)Owner's Costs - Sustaining US$M (17.1) (2.1) (1.0) (1.0)Closure US$M (6.0)Deferred Stripping US$M (138.1) (36.1) (28.0) (36.8)Sustaining Subtotal US$M (433.3) (44.8) (48.7) (70.5)
Total CAPEX US$M (599.4) (79.2) (121.8) (87.6)US$/t 13.92
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ECONOMIC PARAMETERS
Parameter Unit 2018 LOM Plan 2017 Updated FS
Gold Price $/oz 1200 1200
Electricity Cost $/kWh 0.14 0.14
Diesel Price $/L 0.55 0.55
Tax Rate % 27.5 27.5
NS Royalty % 8 8
Results
Revenue M$ 4,518 3,769
Operating Cash Flow M$ 2,158 1,837
Pre‐tax NPV5% M$ 1,142 1,035
Post‐tax NPV5% M$ 898 821
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GOLD PRICE SENSITIVITY
Financials @ 5% Discount Rate
$1,000/ozgold price*
$1,100/ozgold price
$1,300/ozgold price
$1,400/ozgold price
Pre-tax NPV ($mlns) 722 891 1,393 1,645Post-tax NPV ($mlns) 588 713 1,081 1,264
* Royalty decreases from 8% to 5% at gold prices at and below US$1,000/oz
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PLAN ADVANTAGES
• Early access to both RK and MK allows for further characterisation – geotechnical, environmental and in fill drilling.
• Underground tonnes reduces pressure on the RK Pit, smoothing production and waste profile.
• Underground high grade tonnes brought forward in plan.• High grade stopes in pit floor mass blasted almost immediately
after pit finish. • Reduced – No dip in production profile.• More rapid production build up in SLC due to development of
ore curtain through pillar wrecking above ‐460.• No requirement for backfill plant.• Reduced ventilation requirement over LHOS only plan.
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Early UG Mining SWOT
Strengths:– Significantly reduces RK pit waste bubble– Keeps tonalite feed to the mill and
extends RK pit life– Brings HG areas in early MK, RK and EW– Eliminates RK backfill– Allows for easy extraction of high‐grade
crown pillar under RK pit– Reduces production dip normally
associated with SLC start‐up– Allows more time to train crews– Provides earlier orebody characterization
Weakness: Lack of drilling at EW Resources for satellites being redone Lack of RK geotech, hydrogeological and
heat characterization at depth
Opportunities: Storing of development waste UG (MK
and AH) Mining MK earlier Mining MK entirely using UG methods Improved grades at MK and EW
Threats: UG refrigeration, SLC mudrush, water
management, geotech, mining capability
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UG Start-Up Plan
Oct 1 2018 start date for UG development with slow (4 m/d) development ramp‐up of development in Q4 2018
Significant UG equipment already purchased including: Two LHDs One 45‐t truck One two‐boom development jumbo Service vehicles Refuge chamber Jacklegs and stoppers
Manpower plan: Contractor mining for the first 3 years Transition to owner‐operation in 2020 Owner‐operation includes retaining a small NA expat team and a larger (50 person)
regional expat team along with Guyanese workforce.
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TECHNICAL CONSIDERATIONS: TRANSITION PLAN
• 2018 start of underground development.• Development and production tonnes 2019 RK & MK.• Mining of primary high grade stopes between ‐460 and ‐285• Mining of two high grade crown pillar stope immediate following
pit operations (drilled from the open pit).• Mining of East Walcott primary stopes.• East Walcott stopes directly under the pit ramp drill from RK pit,
mined following crown pillars in the pit.
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Metallurgy & Processing
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PROPOSED MILL EXPANSION
87
88
89
90
91
92
93
94
95
96
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Current Operation Phase 1 Pre‐Crush Install Phase 2 GravityExpansion
Phase 2 Ball Mill
Recovery (%
)
Throug
hput (tpd
)
Throughput Recovery
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PROPOSED MILL EXPANSION
Revised Phase 2 Design
Original Phase 2 Design
Throughput (tpd) 7,500 8,000
LOM recoveries (%) 94.8 94.0
Pre-crush circuit 1,000 tpd N/A
Ball mill size 1,000 tpd 8,000 tpd
Power requirements 1.4 MW 6.0 MW
Capital Cost ($mlns) $6 $27
Completion date 4Q 2018 Mid-2019
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PROPOSED MILL EXPANSION
• Phase 1 Expansion: On‐time & On‐budget for completion at end of 1Q 2018
• Phase 2 Pre‐crush Expansion:– Capital cost of $3.5mln– Engineering & procurement underway– Expected completion by 3Q2018
• Phase 2 Ball Mill & Gravity Expansion:– Capital cost of $2.5mln– Scoping study completed– Ball mill (1,000 tpd) & concentrators already purchased– Expected completion by 4Q 2018
• Expected capital cost savings of ~$20mln compared to original phase two expansion while still achieving similar throughput & recovery levels
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Mill Expansion: Thickener Construction
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Mill Expansion: Leach Tank Progress
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FLOWSHEET
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PRE-CRUSH TRIAL WORK
• Pre‐crush trial work commenced in November coinciding with Aurora becoming a hard‐rock only operation
• Trial work to date has showed:– The addition of the Pre‐Crush Circuit at a blend rate of approximately 15% yields a 10% increase
in throughput– The throughput increase, at this rate, does not adversely affect the grind or recovery
• Processing with pre‐crush material show an average recovery of ~92.0% versus an average recovery of 88.6% for the first nine months of 2017
• Pre‐crushing increases gold liberation making gold more suitable for gravity recovery resulting in increased throughput & recoveries
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PRE-CRUSH GRAVITY RECOVERIES
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PRE-CRUSH: GENERAL ARRANGEMENT
Cone crusher
Existing sap feeder
Jaw crusher
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BALL MILL & GRAVITY EXPANSION
• Addition of the ball mill will:– Provide additional fine grinding– Reduce the recirculating load on the SAG Mill
• Installation of the 2 x KC 20 gravity concentrators will:– Reduce the recirculating gold load– Further improve overall recovery via gravity concentration vs leaching/CIP
• ~8% reduction in Cyanide, SMBS and Copper Sulphate consumption (annualized savings of US$ 0.5M) due to higher gravity recovery & reduced gold loading in the leaching & CIP circuits
• 1,000 tpd ball mill & gravity concentrators are part of the Hope Bay mill purchase made in 2016
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ARANKA MILL EQUIPMENT PURCHASED IN 2016
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ARANKA MILL EQUIPMENT PURCHASED IN 2016
Knelson Concentrator Ball mill Concentrator Structure
Jaw crusher Structure Cone Crusher Structure Cone Crusher Cone Crusher Structure
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EXPLORATION
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EXPLORATION - GUIANA SHIELD: Known Gold Region
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CUYUNI BASIN: A TRUE MINING DISTRICT: Looking for Mine #2
• 1 Operating Aurora Gold Mine
• 1 Sulphur Rose secondary resource
• Multiple near-mine saprolite targets
• 1,200 square km land package
• Long history of artisanal mining
• Highly prospective greenstone belt
Looking for Mine #2
Arangoy
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Opportunities: Resource Additions At Depth at WH
Ultimate pit design
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BROWNFIELDS EXPLORATION:
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Iroma: Near Mine Open Pit Feed Target
• Located 10km NE of Aurora
• First-ever drilling: Nine holes have been completed to date totaling 2,000 meters of drilling. Best results shown.
• Drilling will continue to test the mineralized zones laterally and at depth. A drill rig road is currently being pushed towards Areas 2 and 3 along the 8.5km gold anomalous zone that will be drill tested.
• Gold mineralization is associated with NNW trending shear zones along an 12km central zone of anomalous gold.
• Prerequisites:• Deep plumbing• Brittle / Ductile Contrast• Source of iron• Sulphidation / Gold Event
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Wynamu: First Ever Drilling Program
• Regional NE Structure
• First ever drilling: Four drill holes have been completed totaling 500 meters. Best results shown
• Drill testing will continue towards the northeast of the drilled area to test anomalous gold in soils and trenches.
• Anomalous Gold in soil over 5 km
• Iron rich volcanic host rock
• Pervasive iron carbonate alteration
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Greater Sulphur Rose Area & Arangoy
• Arangoy is located ~ 10 km NW of Sulphur Rose • Sulphur Rose Resource:
• M&I: 277,580 oz @ 1.04 g/t AuInf: 289,250 oz @ 1.42 g/t Au
• Soil sampling conducted within the vicinity of the greenstone and intrusive lithological contact indicated a large and coherent gold anomaly in soils measuring roughly 1km by 0.5km.
• A trenching and drilling program is currently being planned to test the gold anomaly. Mobilization and resources to Arangoy commenced in February 2018.
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APPENDIX
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Annual LOM Production Profile
UnitsTotal/Avg
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
OPEN PIT MINING
Open Pit Ore ktonnes 19,022 2,579 3,078 1,553 2,317 1,976 1,098 820 684 1,039 1,096 957 822 684 320
Au Grade Mined gpt 2.74 2.62 2.90 2.89 2.80 2.74 3.09 2.61 2.86 2.03 2.93 2.44 1.78 3.99 2.20
Au Mined from Open Pit kounces 1,675 217 287 144 208 174 109 69 63 68 103 75 47 88 23
Open Pit Waste ktonnes 169,376 22,071 22,472 24,067 19,416 8,880 8,465 8,640 8,943 8,705 8,622 8,984 9,577 9,755 779
Open Pit Material Moved ktonnes 188,397 24,650 25,550 25,620 21,733 10,855 9,562 9,460 9,627 9,745 9,717 9,942 10,399 10,439 1,098Strip Ratio 8.9 8.6 7.3 15.5 8.4 4.5 7.7 10.5 13.1 8.4 7.9 9.4 11.7 14.3 2.4
UNDERGROUND MINING
Ore Mined - Rory's Knoll ktonnes 20,537 347 554 1,332 1,506 1,714 1,725 1,714 1,720 1,738 1,707 1,704 1,748 1,677 1,349
Au Grade Mined gpt 2.92 4.76 4.24 3.85 2.93 2.88 3.25 3.43 3.05 2.50 2.38 2.34 2.31 2.69 2.74Au Mined from Rory's Knoll
UG koz 1,925 53 76 165 142 159 180 189 169 140 131 128 130 145 119
Ore Mined - Satellites koz 2,583 140 420 562 285 67 165 181 209 205 205 144
Au Grade Mined gpt 4.06 3.41 4.98 3.66 3.23 2.97 4.72 4.64 3.90 4.07 3.77 4.93Au Mined from Satellites
UG koz 337 15 67 66 30 6 25 27 26 27 25 23
Total Au Mined koz 3,937 217 302 265 350 368 257 227 243 257 272 240 205 242 179 170 142
PROCESSING
Tonnes Milled ktonnes 43,047 2,355 2,738 2,745 2,738 2,738 2,738 2,745 2,738 2,738 2,738 2,745 2,738 2,738 2,738 2,745 2,337
Throughput Rate tpd 7,400 6,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 6,400
Mill Feed Average Grade gpt 2.87 2.91 3.12 3.30 3.48 3.70 3.01 2.87 3.12 2.95 3.07 2.70 2.37 2.83 2.14 2.15 2.11
Recovery % 94.8% 92.1% 95.4% 95.6% 95.8% 96.1% 95.2% 95.0% 95.4% 95.1% 95.3% 94.6% 93.9% 94.9% 93.3% 93.3% 93.1%
Total Au Recovered kounces 3,767 203 262 278 294 313 252 240 262 247 258 226 196 236 176 177 148
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Annual LOM Cost Profile
UnitsTotal/Avg
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
FINANCIALS
Revenue $mlns 4,508 243 314 333 352 374 302 288 313 295 309 270 235 283 211 211 177
NSR Royalty (8%) $mlns 361 19 25 27 28 30 24 23 25 24 25 22 19 23 17 17 14
Site Operating Costs $mlns 1,989 92 100 118 141 121 126 129 130 135 137 138 139 146 119 113 108
Sustaining Capital $mlns 295 9 21 34 29 16 14 19 21 16 12 15 17 26 21 16 10
Deferred Stripping $mlns 138 36 28 37 11 5 2 4 6 - - 3 4 2 - - -
Expansion Capital $mlns
Mill Expansion $mlns 13 13 - - - - - - - - - - - - - - -
UG Mining $mlns 151 19 73 17 - - - - - - 20 21 - - - - -
Other $mlns 3 3 - - - - - - - - - - - - - - -
Total Capital Costs $mlns 599 79 122 88 41 20 16 22 27 16 32 40 21 28 21 16 10 Total Site Costs $mlns 2,950 190 247 232 210 171 166 174 182 175 193 200 178 196 157 147 132AISC $mlns 3,002 170 188 229 223 185 180 188 196 188 187 192 191 210 171 160 145
Pre-tax Cash Flow $mlns 1,567 50 61 98 140 204 138 112 128 120 113 70 57 82 60 64 46 NPV (5%) (pre-tax) $mlns 1,142
Tax $mlns 348 1 7 6 24 50 33 30 35 33 32 20 14 23 14 16 11
NPV (5%) (after tax) $mlns 898
Operating Cash Cost¹ $/oz 531 455 385 425 483 389 501 540 498 551 532 614 710 618 679 645 732Operating Cash Cost (incl
Royalty)¹ $/oz 627 551 481 521 579 485 597 636 594 647 628 710 806 714 775 740 828AISC¹ $/oz 797 836 717 821 761 592 713 783 747 764 723 851 977 886 970 907 985
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Scientific and Technical InformationThe compilation of the Optimized LOM Plan was completed by Tysen Hantelmann, P.Eng. and Gord Doerksen, P.Eng of JDS Mining. Byvirtue of their education, membership to a recognized professional association and relevant work experience, Tysen Hantelmann andGord Doerksen are independent Qualified Persons as defined by National Instrument 43-101 and have reviewed, approved and verifiedthe technical content of this news release.
The mineral reserve estimates were prepared under the supervision of Tysen Hantelmann, P.Eng. and Gord Doerksen, P.Eng of JDSMining. Mr. Hantelmann and Mr. Doerksen are a “qualified person” under NI 43-101 and is independent of the Company. The mineralresource estimate for Rory’s Knoll was prepared under the supervision of Tim Maunula, of T. Maunula & Associates Consulting. Mr.Maunula is a “qualified person” under NI 43-101 and is independent of the Company. The mineral resource estimates for the satellitedeposits was prepared under the supervision of Danial Noone of Guyana Goldfields Inc. Daniel Noone is a “qualified person” underNational Instrument 43-101 and has also reviewed the contents of this press release.
Securities LawsThis presentation does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where suchwould be prohibited. This presentation is not an offer to sell, or a solicitation of an offer to purchase, any securities in the United States.The securities referred to in this presentation will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold inthe United States except pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933 and applicablestate securities laws.
The information contained in this presentation does not and is not intended to constitute a "valuation," "formal valuation," "appraisal,""prior valuation," or a "report, statement or opinion of an expert" for purposes of any securities legislation in Canada or otherwise.
CurrencyUnless otherwise indicated, all dollar values herein are in United States dollars.
SCIENTIFIC, TECHNICAL AND SECURITIES INFORMATION
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Jacqueline WagenaarVP, IR & Corporate Communications
Tel: (416) 628 5936 x.5295Email: [email protected]