Future Mineral Resources Inc. · TSX:FMR
Future Mineral Resources — Sulliden Gold — Investor Presentation (October 2013)
38 slides from Future Mineral Resources's investor presentation, October 2013
Slide 1: Clear Path to Production for Shahuindo: Corporate Presentation
Clear Path to Production for Shahuindo: Corporate Presentation A Low Cost Heap Leach Gold Project in Peru October 2013
Slide 2: Cautionary Statement
Cautionary Statement This presentation may include certain “forward-looking statements” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding future plans and ob
Slide 3: Company & Project Overview
Company & Project Overview Near-term gold production in excellent mining jurisdiction Developing Shahuindo: A simple open-pit, heap leach mine Located in a low cost mining district in northern Peru Currently in advanced stages of permitting Environmental Impact Assessment (“EIA”) approved by t
Slide 4: 2012 - 2013 Milestones
2012 - 2013 Milestones A pivotal year in Sulliden’s development: Mineral Resource growth from updated NI 43-101 Robust Feasibility Study for Phase 1 mine scenario Environmental Impact Assessment (“EIA”) approved by Peru’s Ministry of Energy and Mines Environmental approval and construction p
Slide 5: Peru: A Thriving Mining Country
Peru : A Thriving Mining Country 1. China 2. Australia 3. USA Peru is among 4. South Africa Gold producer the top 10 gold 5. Russia #1 in Latin America producers in the world: 6. Peru 7. Ghana Gold producer 8. Canada #6 in the world 9. Indonesia Silver producer 10. Mexico #2 in the world Copper prod
Slide 6: Shahuindo Gold & Silver Project
Shahuindo Gold & Silver Project Located in a low cost mining district Lowest Capex & Cash Cost Mines in the World Lagunas Norte (Barrick), Peru 1 28 km from Shahuindo 2 El Sauzal (Goldcorp), Mexico 3 Kettle River (Kinross), USA 4 Kupol (Kinross), Russia 5 Cortez (Barrick), USA 6 Veladero (Barrick),
Slide 7: Excellent Infrastructure & Accessibility
Excellent Infrastructure & Accessibility 7
Slide 8: Mineral Resource Growth - Gold
Mineral Resource Growth - Gold Measured & Indicated (M&I) Mineral Resources Inferred Mineral Resources 3,000,000 M&I gold mineral resources increase to: 2009 2011 2012 2,438,000 ounces Inferred gold mineral resources increase to: 2,500,000 2.44 M 1,628,000 ounces 2,000,000 1.97 M 1.63 M Excellent ex
Slide 9: Mineral Resource Growth - Silver
Mineral Resource Growth - Silver Measured & Indicated (M&I) Mineral Resources Inferred Mineral Resources 60,000,000 M&I silver mineral resources increase to: 2009 2011 2012 33,370,000 ounces Inferred silver mineral resources increase to: 50,000,000 46.6 M 46,560,000 ounces 40,000,000 38.6 M 33.4 M E
Slide 10: Numerous Targets Remain Unexplored
Numerous Targets Remain Unexplored Excellent mineral growth potential Defined Mineral Resource Geochemical Footprint 10
Slide 11: Feasibility Study Results
Feasibility Study Results September 2012 Low Cost, Open Pit, Heap Leach Mine Operation Future production growth expected: Mineral Reserves considered in the Feasibility Study represent only about 40% of gold ounces from total oxide mineral resource* Tonnes per day mined 10,000 tpd Gold Eq. Productio
Slide 12: Good Production Growth Potential
Good Production Growth Potential Mineral Reserves Numerous highly Production growth represent only about prospective targets because… and expected once in 40% of gold ounces remain largely commercial production* from total oxide unexplored mineral resource Projected Mineral Resource and Production g
Slide 13: Shahuindo Mine Layout
Shahuindo Mine Layout Feasibility Study, Sept 2012 - 10k tpd mine 13
Slide 14: Projected Expansion Layout
Projected Expansion Layout Preliminary Layout for potential expanded mine scenario* 14 *The ability of Sulliden to increase production has not been the subject of a Feasibility Study and there is no certainly that an expansion will be economically viable.
Slide 15: Simple & Low-Risk Mining
Simple & Low-Risk Mining Open Pit 1 Mine - Conveying - Agglomerating - Stacking 3 ADR Plant Heap Leach 2 Processing Carbon in Column Gold Recovery Plant Preg Pond Barren Pond Carbon Stripping/Reactivation +/- 90k oz/yr mine to act as a foundation for expansion Feasibility Study considers 40% of
Slide 16: Attractive Economics
Attractive Economics Comparable gold oxide projects Company, Technical Au IRR IRR Annual Mine Cash CAPEX Project & Location Report Price (Pre-Tax) (Post-Tax) Production Life Costs/oz. Sulliden Gold, Feasibility Study $1,300 45.6% 33.0% 87,700 oz. 10 yrs $541 $131.8 M Shahuindo, Peru (Sept. 26, 2012)
Slide 17: Low Cash Cost Project
Low Cash Cost Project Shahuindo is located among some of the lowest cost mines in the world vs. Major Gold Producers Sulliden’s Shahuindo: Average all-in cash $552/oz; 0.84 g/t (FS, Sept 2012) All-in cash costs*: costs per Gold eq. oz**: Buenaventura & Southern Peru Copper’s Tantahuatay: $826/oz $1,
Slide 18: Permitting Progress
Permitting Progress Completed EIA Document Components 2nd round Baseline Studies of official Feasibility Study community Final Public Impact Analysis & meetings Audience EIA Approval Target Production Management Plan (Nov 2012) (March 2013) (September 2013) (2014) 1st round Submission of Const
Slide 19: Electrical Substation Project
Electrical Substation Project Construction permit received for the electrical substation project in April 2013 Overview of the Project The electrical substation will provide low cost grid power for the Shahuindo mine operation (+/- $0.06/kWh) Shahuindo will require only a small portion of the el
Slide 20: Electrical Substation Progress
Electrical Substation Progress Groundwork is underway for the foundation for the electrical substation 20
Slide 21: Estimated Timeline to Production
Estimated Timeline to Production 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Updated NI43-101 Mineral Resource Feasibility Study Submission of ESIA Report Final Public Audience ESIA Approval Construction of Power Project & Mine Expected Production S
Slide 22: Sulliden has Strong Support
Sulliden has Strong Support Agnico-Eagle is a major shareholder with 9.96% interest in the Company Extensive due diligence by Agnico-Eagle Mines Ltd. $24M strategic investment by Agnico-Eagle (April 9, 2013) 26,966,292 units at a price of $0.89 per unit Unit = One common share and 0.7 of a
Slide 23: Corporate Structure & Research
Corporate Structure & Research Capitalization Summary (October 1, 2013) Analyst Coverage TSX: SUE Steve Parsons Trading Symbols BVL: SUE OTCQX: SDDDF Chris Thompson Shares Outstanding 270.7M Fully Diluted 314.1M Andrew Kaip Share Price (TSX) $0.93 Ovais Habib 52-week Range (TSX) $0.67 - $1.18 Averag
Slide 24: Value Proposition
Value Proposition High Quality, Low Risk Project Low CAPEX and operating costs Simple heap leach mining Located near some of the largest and lowest cost mines in the world EIA approval for the development of Shahuindo received by Peru Ministry of Energy and Mines Strategic investment by AE
Slide 25: Appendices
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Slide 26: Team Sulliden Gold Corp
Team Sulliden Gold Corp Proven Management Team Justin Reid, MSc., MBA, President & Director Geologist and capital markets executive with +20 yrs focused in the mineral resource space Former senior mining analyst at Cormark and Managing Director Global Mining Sales at NBF Peter Tagliamonte, P.Eng
Slide 27: Recent EIA Approvals in Peru
Recent EIA Approvals in Peru Shahuindo Project (Sulliden) EIA submission in December 2012 Final Public Audience completed March 2013 EIA approval in September 2013 Corani Project (Bear Creek) EIA submission in December 2012 Final Public Audience completed April 2013 Recent EIA EIA ap
Slide 28: NI 43-101 Mineral Resources
NI 43-101 Mineral Resources September 2012 Gold Gold Silver Silver Gold Contained Grade Contained Grade Tonnes (t) Grade Ounces (g/t) Ounces (g/t) Eq.g/t Total Measured & Indicated 2,438,000 0.52 33,370,000 7.1 147,310,000 0.54 Mineral Resources Measured Mineral Resources Oxide (Reported at 0.2 g/t
Slide 29: NI 43-101 Mineral Reserves
NI 43-101 Mineral Reserves September 2012 Mineral Reserves represent only approximately 40% of the gold ounces from total oxide mineral resource Gold Gold Silver Silver Gold AuEq contained grade contained grade Tonnes (t) grade Ounces (ounces) (g/t) (ounces) (g/t) Eq.g/t Total P&P 1,022,000 0.84 11,
Slide 30: Shahuindo Geology
Shahuindo Geology Shahuindo is located in a regional flexure of a thrust and fold belt Mineralization is hosted in the Farrat, Carhuaz, Santa and Chimu Formations, which are part of a clastic sedimentary sequence Low temperature alteration clays and sulphates found in the oxides indicate that
Slide 31: Typical Cross Section - 1050E
Typical Cross Section - 1050E Widely disseminated gold mineralization at surface 31
Slide 32: Long Section - Central Corridor
Long Section - Central Corridor 100S to 100N Oxide mineralization outcrops on surface (Feasibility Study strip ratio of 1.9:1) 32
Slide 33: Final Public Audience
Final Public Audience Environmental Impact Assessment (EIA) Process Final Public Audience held on March 13, 2013 Over 2,500 attendees Strong social support 33
Slide 34: Community Information Meetings
Community Information Meetings Sample pictures from 2nd Round of Official Meetings (Nov 2012) Algamarca Araqueda Chuquibamba La Fila Liclipampa Alto Moyán Alto 34
Slide 35: Completed Information Meetings
Completed Information Meetings 16 communities 1,100 participants 35
Slide 36: Sustainable Development Initiatives
Sustainable Development Initiatives Education, Training & Small Business Coaching Local Opportunities Programs Partnership with: In partnership with recognized Peruvian training institutions, Sulliden provides training programs in Masonry, Ironworks, Electrical Wiring & installations, Front end lo
Slide 37: CSR Programs
CSR Programs Community Support & Local Development Programs Small Business Development In partnership with public institutions and private entities, Sulliden Development of irrigation assists in the sustainable development of local businesses infrastructure in Cajabamba (Commercial production of haa
Slide 38: Sulliden Gold Corporation Ltd.
Sulliden Gold Corporation Ltd. Peter Tagliamonte 65 Queen Street West, Suite 800 Chairman & CEO Toronto, Ontario M5H 2M5 T +1 (416) 861-1685 Justin Reid F +1 (416) 861-8165 President & Director Trading Symbols Investor Relations TSX:SUE T +1 (416) 861-5805 BVL:SUE [email protected] OTCQX:SDDDF www.s