Scorpio Gold Corporation · TSXV:SGLD
Scorpio Gold — Investor Presentation (May 2013)
29 slides from Scorpio Gold's investor presentation, May 2013
Slide 1: Producing Gold in Nevada
Producing Gold in Nevada May 2013 www.scorpiogold.com Steve Roebuck, President – [email protected]
Slide 2: Cautionary Statement
Cautionary Statement Forward Looking Statements: Except for the statements of historical fact, the information contained herein is of a forward-looking nature. Such forward- looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, perf
Slide 3: Why Nevada?
Why Nevada? • Nevada is “Elephant Country” with seven +20 million ounce gold deposits. • United States is the 3rd largest gold-producing nation in the world. 1 • Nevada represents approximately 80% of all gold production in the United States. • 6.1M ounces of gold produced in 2012; 152M ounces mined
Slide 4: Company History
Company History December 2012 – Acquired Goldwedge and Pinon properties January 2012 – Commenced commercial production December 2012 – Produced 32,066 ounces gold at Mineral Ridge in first full February 2011 – Commenced heap year of production leaching of re-crushed material left on pad by previous
Slide 5: Mineral Ridge Gold Mine
Mineral Ridge Gold Mine • Mineral Ridge is an open pit – heap leach operation. • Scorpio owns 70% and receives 80% of the cash flow from Mineral Ridge. • Produced 32,066 ounces of gold in 2012, the first full year of commercial production. • All gold is unhedged; no underlying royalties in areas bei
Slide 6: Production Areas & Satellite Deposits
Production Areas & Satellite Deposits TSX-V: SGN 6
Slide 7: Production Areas: Drinkwater & Mary Pits
Production Areas: Drinkwater & Mary Pits TSX-V: SGN 7
Slide 8: 2012 & Q1 2013 Financial Highlights
2012 & Q1 2013 Financial Highlights Total Q1 Mineral Ridge Operation Q1 Q2 Q3 Q4 2012 2013 Revenue (000’s) $12,939 $12,4523 $11,725 $15,498 $52,615 $11,666 Mine operating earnings (000’s) $4,790 $3,048 $2,575 $4,424 $14,838 $3,321 Net earnings (000’s) $2,967 $2,199 $2,828 $3,516 $11,511 $2,096 Earni
Slide 9: 2012 & Q1 2013 Production Highlights
2012 & Q1 2013 Production Highlights Total Q1 Q1 Q2 Q3 Q4 2012 2013 Mining Operations Drinkwater Pit Ore tonnes mined 122,995 160,664 156,007 161,669 601,365 163,542 Waste tonnes mined 656,770 700,523 738,890 606,047 2,702,230 613,066 Total mined 779,765 861,187 894,897 767,746 3,303,595 776,608 Str
Slide 10: Tonnes Processed
Production Growth Quarterly Growth • 63% increase in plant throughput from first quarter of commercial operation. • Average plant throughput in 2012 was 1,429 tpd. 250,000 205,846 186,858 200,000 176,500 Tonnes Processed 160,759 150,000 126,668 100,000 50,000 - Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 201
Slide 11: Quarterly Production by Metal & Cost
Quarterly Production by Metal & Cost 12,000 $1,100 10,812 10,000 $1,000 $965 8,000 $923 7,394 $904 7,411 7,197 6,000 6,663 $900 $815 4,867 4,000 $774 $800 3,174 2,930 2,900 2,740 2,000 0 $700 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Oz. Gold Oz. produced Silver Oz. produced Cost per Oz. US$ TSX-V: SG
Slide 12: 2013 Forecast & Operating Guidance
2013 Forecast & Operating Guidance Forecast • Gold production: 32,000 - 35,000 ounces. • Cash cost: US$800 to US$900 per ounce of gold sold. • Throughput: 2,700 short tons (2,450 metric tons) per day. • Average grade: 0.057 ounce per ton (1.95 grams per tonne). • Waste to ore ratio Mary & Drinkwater
Slide 13: Mineral Ridge Exploration
Mineral Ridge Exploration 2012 Program Drilling on Drinkwater Highwall Zone • Drilled over 24,000 m in 191 RC holes; focused on established pit areas and nearby satellite deposits to build the resource base. • Confirmed extension of mineralization from Mary pit to Mary LC allowing for design of a su
Slide 14: 2012 Drilling Leads to Mary/Mary LC Super Pit
2012 Drilling Leads to Mary/Mary LC Super Pit 2012 Additional Mineralization Outlined 2012 Mary Pit Outline 2013 Proposed Super Pit Outline TSX-V: SGN 14
Slide 15: Satellite Deposits in Development Pipeline
Satellite Deposits in Development Pipeline • Six satellite deposits located west and southwest of Drinkwater Pit. • Very close proximity to infrastructure. • Block modeling, open pit design and optimization completed. • First NI 43-101 resource estimate by Telesto Nevada Inc. expected Leach Pad shor
Slide 16: North Spring Area – New Exploration Target
North Spring Area – New Exploration Target North Spring • 980 ha (129 claims) staked in December 2012. • Within 10 km of the Drinkwater Pit. • High grade gold assayed in 3 surface grab samples: 0.11 opt, 0.50 opt & >5.0 opt • Geology and mineralization appear to be very similar to Drinkwater – low
Slide 17: Goldwedge and Pinon Acquisitions
Goldwedge and Pinon Acquisitions • In December 2012, acquired two strategic mineral properties in Nevada. • Purchase price of $1.25 million, 3 million shares, and the assumption of debt totaling $16.5 (8% interest amortized over 36 months, no penalty for prepayment). • Reduced all NSRs ranging from
Slide 18: Goldwedge Mine – Manhattan District
Goldwedge Mine – Manhattan District Round Mountain 10 million oz. gold Manhattan Caldera Manhattan District 566,000 oz. gold TSX-V: SGN 18
Slide 19: Manhattan District, Nevada
Manhattan District, Nevada Goldwedge Mine Reliance Mine Manhattan Mine East & West Pits • The Manhattan District dates back to the 19th century. • Combined underground and placer mining estimated at 566,000 oz. gold. • The Reliance Mine produced an estimated 59,108 tons at a recovered grade of 0.435
Slide 20: Goldwedge Project – Three Claim Areas
Goldwedge Project – Three Claim Areas 1. Goldwedge Mine & Mill 1 2. April Claim Block – Village of Manhattan 2 3. Keystone Pit Claims 1 2 3 3 TSX-V: SGN 20
Slide 21: Goldwedge Property Assets
Goldwedge Property Assets 500 Ton Per Day Mill • 500 tpd ball mill with gravity circuit • Fully permitted • Upgraded electrical • Opportunity for expansion Existing Mineral Resource* • Measured and Indicated, Inferred * Sourced from Royal Standard Minerals Inc. (2012). The mineral resource estimates
Slide 22: Goldwedge Development
Goldwedge Development Step 1 Gold Grains in Tailings • Restart mill from current care and maintenance status. • Process ore from Mineral Ridge. • Potentially reprocess Goldwedge tailings. • Conduct metallurgical test work. Step 2 • Toll milling – process material for third parties in exchange for fl
Slide 23: Pinon Project
Pinon Project • Located 48 km from Scorpio Gold’s Elko, Nevada office. • 192 unpatented mining claims (over 1,600 ha) in addition to several private lease agreements (minerals and surface) 100% controlled by Scorpio Gold. • Located at the southern end of the Carlin trend, contiguous to Gold Standard
Slide 24: Pinon Project
Pinon Project • Carlin-type replacement gold deposit(s) located at SE end of Carlin gold trend. • Several historical resource estimates completed; the two considered most Section 21 relevant were by Cyprus Amax in 1995 100% Surface 67.5% Mineral and included mineralization within property sections 2
Slide 25: Senior Management
Corporate and Operations Management Peter Hawley, BEng, BSc, PGeo – CEO & Director 30+ years’ experience including founder, CEO and former Chairman of Scorpio Mining (TSX: SPM). Proven track record in Company and mine building; highly experienced in corporate financing. Steve Roebuck, BSc, PGeo –
Slide 26: Share Structure & 12 Month Stock History
Share Structure & 12 Month Stock History Ticker TSX-V: SGN Shares 124.9 M (Basic) Options1 9.6 M (avg. C$0.70 ) Warrants2 5 M (avg. US$0.72 ) Market Cap C$32.5 M (@C$0.26 ) (Basic) Shareholder Institutional (51%) s Insiders (28%) 1 As of May 14, 2013. 2 Includes 2.5 M warrants exercisable at US$0.64
Slide 27: Stock Comparison - Global Market Influences
Stock Comparison - Global Market Influences Scorpio Gold Corporation Barrick Gold Corporation TSX-V: SGN 27
Slide 28: Summary
Summary • Excellent safety record and compliance with all federal and state environmental permits and regulations. • Highly experienced management and operational team. • Focused on mining in Nevada. • Already in production at Mineral Ridge. Produced 32,066 oz. of gold and 13,871 oz. silver in fir
Slide 29: Summary
Summary • Excellent safety record and compliance record with all federal and state environmental permits and regulations • Highly experienced management and operational team. • Focused on mining in Nevada. • Already in production at Mineral Ridge. Produced 32,066 oz. of gold and 13,871 oz. silver