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1 Gold in Guyana Working to become a mid-tier gold producer in 2014. January 2013
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  • 1

    Gold in Guyana

    Working to become a mid-tier gold producer in 2014.

    January 2013

  • Disclaimer Some statements in this presentation contain forward-looking information. We have identified such statements with as asterisk for your ease of identification of forward looking-information. These statements include, but are not limited to, statements with respect to the expected benefits from having a management team seeking to aggressively grow the Company into a mid tier gold producer through the exploration and development of existing assets, the completion of the acquisition of a significant interest in the Eagle Mountain Project and the development potential of the Company's properties. Specifically, any statements regarding the potential increase of the Companys inferred resource at the Eagle Mountain Project and the goals and objectives of the Company are by their nature forward looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other

    factors which may cause the Companys actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. General risk factors and assumptions include, among others, the effects of general economic conditions, the price of gold and other metals, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, competition for resources, and misjudgements in the course of preparing forward-looking information. Specific risk factors include risks associated with the ability obtain any necessary approvals, waivers, consents and other requirements necessary or desirable to permit or facilitate the development of the Companys properties, the risk that any applicable conditions of the acquisition of an interest in the Eagle Mountain Project may not be satisfied, risks associated with project development; the need for additional financing; operational risks associated with exploration activities and results, mining and mineral processing; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters of the Company with certain other projects; the volatility of the Companys common share price and volume; tax consequences; and other risks and uncertainties. Eagle Mountain is in the exploration stage only and is without a known body of commercial ore. An increase in the current inferred resource will only occur if favourable exploration results are obtained. The business of exploring for minerals involves a high degree of risk. Any forward-looking information contained in this presentation is based on the geological interpretation of results obtained from exploration activities conducted on the Companys properties to date, including geological and geophysical surveys, sampling and mapping programs and drilling results. Results are interpreted by the Companys management and staff and future programs and plans are formulated based on such interpretations. In making statements that contain forward-looking information, management assumes that the results are accurate and will be verified by independent examination, that in country conditions and

    in the state of the financial markets remain somewhat constant and that management has the technical and financial capability and expertise to achieve the Companys growth plans. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. In accordance with good corporate governance procedures, management constantly monitors and re-assesses the Companys activities, results achieved and future plans. In the event management forsees or experiences material changes to the Companys business and future plans, it will update forward looking statements accordingly Each recipient of this document accepts that no representation or warranty is made concerning the information herein nor is any liability accepted in respect thereof by Stronghold Metals, or any other shareholder (present or future), or Director, Officer, advisor, or by any of their respective affiliates; Company Copyright clauses are valid in this case. Content and slides from this presentation are not allowed to be copied or distributed otherwise, without the written consent of the Company. *Denotes forward-looking information.

    2

  • Investment Highlights

    Advanced Eagle Mountain gold project in Guyana mining friendly, English-

    speaking jurisdiction with a stable democracy based on British law.

    Project contains an existing shallow NI 43-101-compliant resource:

    o 188,000 ounces (indicated), average grade of 1.49 g/t gold (0.5 g/t gold cut-off) and

    o 792,000 ounces (inferred), average grade of 1.19 g/t gold (0.5 g/t gold cut-off).

    Existing resource covers just 250 hectares inside 5,050-hectare property.

    Deposit is open in three lateral directions and at depth.

    3

  • Investment Highlights continued

    Very good gold grade, suitable for open-pit production.

    Near-term, low-cost production potential: Gold starts at surface.

    Long-term operations: Huge potential for large, economic gold

    resource.

    Existing nearby infrastructure.

    Proven, experienced leadership and operating team.

    Support of strong corporate and institutional shareholders (IAMGOLD,

    Sprott, etc.).

    4

  • Mission and Strategy

    Mission: To leverage strong gold environment and commence

    production, generating cash flow to accelerate to mid-tier producer.

    Strategic Timeline:

    Q4 2012

    Successfully expanded gold resource. Updated NI 43-101-compliant

    resource represents 34% increase from November 2010 resource outline.

    Q1 2013

    o Commence Environmental Impact Assessment (EIA) report in support of

    2013 mining permit application. Ensure compliance with all Guyanese

    environmental regulations and global best practices.

    o Commence Scoping Study/Preliminary Economic Assessment (PEA).

    5

  • Strategic Timeline continued

    Q1 2013 (continued)

    o Commence engineering, mineralogical and metallurgical studies.

    o Discussions and legal on entry into other small-scale gold production

    opportunities in Guyana.

    Q2 2013

    o Complete independent Scoping Study and Economic Assessment Report.

    Costing model to support initial production of 35,000 to 45,000 ounces

    gold annually.

    o Commence 2013 dense resource-outline drilling at Eagle Mountain.

    o Commence full Feasibility Study based on Scoping Study results.

    o Pursue further technical engineering tests as part of Feasibility Study work.

    6

  • Strategic Timeline continued

    Q3 2013

    o Commence discussions regarding mining permit and minerals

    agreement with Guyanas Ministry of Natural Resources and the

    Environment.

    Q4 2013

    o Submit application for mining permit and minerals agreement.

    o Complete Feasibility Study.

    o Expected approval for mining permit and minerals agreement.

    2014 o Commence development and production.

    7

  • Guyana

    Consistently stable economy and political climate.

    Elected government has followed a policy of economic liberalization, promotes foreign investment.

    Long history of successful foreign investment in countrys mining sector.

    British-based law and robust mining law protects foreign investment.

    One of the friendliest mining regimes in the world.

    8

  • Guyana: Track Record of Successful Production and Operations

    Omai gold mine: Produced over 3.7 million ounces grading

    ~1.4 g/t gold from 1993 to 2005.

    Guyana Goldfields Aurora project: 6.54 million measured and

    indicated ounces (open pit and underground).

    Sandspring Resources: Advancing multi-million ounce Toroparu gold-

    copper deposit toward potential large-scale production in 2015.

    Azimuth Resources West Omai project: 1.22 million inferred ounces.

    20 to 25 Canadian juniors exploring for various commodities in

    Guyana.

    Major mines in bauxite industry.

    9

  • Eagle Mountain: Proposed Production Tiers

    10

    Production of 35,000 to 45,000 ounces significant cash-flow will bolster treasury with no dilution.

    Phase 1a

    Increase to 60,000 to 75,000 ounces expansion with low capital investment.

    Phase 1b

    120,000+ ounces additional capital investment required. Phase 2

  • Eagle Mountain: Work Completed to Date

    Advanced 5,050-hectare gold project with near-term production

    potential.

    281 holes drilled totaling 35,993 metres.

    o 78 drill holes (~11,000 metres) completed by Eagle Mountain.

    o Remaining holes completed by predecessors including IAMGOLD.

    Known resource covers only 250 hectares inside the 5,050-hectare

    property.

    o Deposit remains open in three lateral directions and at depth.

    Excellent historical database (geophysics, adits, extensive sampling,

    auger drilling, LIDAR, etc.).

    ~$15 million spent on exploration work at Eagle Mountain to date.

    11

  • Strategic Partnership with IAMGOLD

    Companys current ownership of Eagle Mountain property: 50%.

    Additional 45% can be acquired from IAMGOLD for $1 million cash,

    equivalent shares or a combination of both at the option of Eagle

    Mountain until April 2013.

    Government of Guyana owns remaining 5%, typically transforming to

    a royalty.

    Value of deal: $11.5 million or $15 per compliant ounce (at time of

    deal Oct 2010).

    12

  • Eagle Mountain: Current (2012) Resource

    NI 43-101 resource starting at surface:

    o Indicated resource of 188,000 ounces of gold @ 1.49 g/t (0.5 g/t cut off) and

    o Inferred resource of 792,000 ounces of gold @ 1.19 g/t (0.5 g/t cut off).

    Management believes:

    o Grade is profitable.

    IAMGOLDs Rosebel mine in neighbouring Suriname profitably producing 385,000

    ounces per year @ 1.0 g/t from five open pits to date, with three additional pits to be

    mined (> 13 million oz reserves & resources).

    The Omai gold mine in Guyana produced 3.7 million+ ounces @ ~1.4 g/t (1993 to 2005).

    Timmins Gold produced ~25,000 ounces of gold in Q3 2012 @ 0.88 g/t (annual forecast

    ~100,000 ounces ) from its San Francisco gold mine in Mexico, profiting $945 per ounce.

    o Several open pits will feed a central processing facility.

    Yanacocha in northern Peru, the largest gold producer in Latin America and one of the

    worlds largest gold mines (over 26-million ounces produced since 1993), produces in

    this way.

    13

  • Eagle Mountain: 2011 Drilling Highlights

    78 holes completed for a total of 10,850 metres

    Program included both infill and step-out diamond drilling holes.

    The program was designed to:

    o Move part of the geological resource from inferred to indicated.

    o Expand the total amount of ounces.

    o Test and improve the geological model over specific deposit areas.

    More than 90% of holes drilled intersected shallow gold mineralization of economic grade.

    Results include:

    o 24.19 metres at 9.1 g/t gold from surface to 24.19 m depth (EMD11-76 - Zion).

    o 19.05 metres at 3.13 g/t gold from surface to 19.05 m depth (EMD11-83 - Bottle

    Bank).

    o 7.80 metres at 30 g/t gold from 36 to 43.8 m depth (EMD11-85 - Bucket Shaft).

    o 42.20 metres at 0.97 g/t gold from surface to 42.2 m depth (EMD11-77 -Zion).

    14

  • 5 km

    Cross-section A

    A EAGLE

    MOUNTAIN PL

    Eagle Mountain Au Deposit

    Eagle Mountain: Geology and Geochemistry

  • 16

    Eagle Mountain NI 43-101: 2012 Block Model vs 2010 Block Model Historical & Current Drilling Shown

  • Eagle Mountain 2012 Resource Outline (NI 43-101 Technical Report filed at SEDAR in Jan 2013)

    INDICATED Mineral Resource:

    In both saprolite (oxide) and fresh (non-oxidized) rock, it is 3,921,000 tonnes at 1.49 g/t gold for 188,000 ounces gold.

    INFERRED Mineral Resource:

    Hosted by saprolite and non-oxidized rock, it is 20,635,000 tonnes at 1.19 g/t gold for 792,000 ounces gold.

    No statistical relationship between weathering and grade is observed, therefore relatively consistent Au grade throughout the deposit.

    Management is of the opinion that the oxide ore is sufficient to support a 35,000 to 45,000 oz per annum operation for 1st Phase development no milling required, i.e., low power requirements (major element in future operating costs). This will be the target for our coming Scoping Study.*

    (*Forward Looking Statement and is presented with caution and the appropriate disclaimer)

    17

    November 2012 Updated Eagle Mountain Resource Estimate by Category, Zone & Type Material (Using Block Model Cut-off of 0.5 g/t AU)

    Category Zone Material Density (t/m3)

    Volume (m3)

    Tonnes Au (g/t)

    Ounces

    Indicated

    Zion

    Saprolite

    Fresh

    Total

    1.60

    2.60

    2.03

    538,000

    436,000

    974,000

    860,000

    1,134,000

    1,994,000

    1.42

    1.40

    1.41

    39,000

    51,000

    90,000

    Kilroy

    Saprolite

    Fresh

    Total

    1.60

    2.60

    2.08

    465,000

    461,000

    917,000

    730,000

    1,197,000

    1,927,000

    1.49

    1.63

    1.58

    35,000

    63,000

    98,000

    All

    Saprolite

    Fresh

    Total

    1.60

    2.60

    2.05

    994,000

    897,000

    1,890,000

    1,590,000

    2,331,000

    3,921,000

    1.45

    1.52

    1.49

    74,000

    114,000

    188,000

    Inferred

    Zion

    Saprolite

    Fresh

    Total

    1.60

    2.60

    2.16

    2,671,000

    3,035,000

    5,706,000

    4,274,000

    7,891,000

    12,165,000

    1.31

    1.13

    1.19

    180,000

    286,000

    466,000

    Kilroy

    Saprolite

    Fresh

    Total

    1.60

    2.60

    2.25

    1,831,000

    2,132,000

    3,962,000

    2,929,000

    5,542,000

    8,471,000

    1.33

    1.12

    1.20

    126,000

    200,000

    326,000

    All

    Saprolite

    Fresh

    Total

    1.60

    2.60

    2.19

    4,502,000

    5,167,000

    9,668,000

    7,202,000

    13,433,000

    20,635,000

    1.32

    1.13

    1.19

    306,000

    486,000

    792,000

  • 18

    Eagle Mountain: New NI 43-101 Typical cross-section across the NE part of the deposit

  • Eagle Mountain: Strong Recovery Potential

    IAMGOLD took bulk samples of both oxide (saprolite) and underlying

    hard rock mineralization testing all three known deposit horizons at

    Eagle Mountain in 2009.

    Samples used for mineralogical and metallurgical testing completed

    at SGS Laboratories (Toronto).

    92% recovery for cyanidation (saprolite, hard rock).

    70+% recovery using only gravity (saprolite).

    Recoveries are in line with historical recoveries/mines in the region.

    19

  • Eagle Mountain: Further Expansion Potential

    Option agreement to earn

    up to 95% of adjacent

    Mowasi Gold property.

    Mowasi covers 17,000

    hectares + additional rights

    of first refusal.

    History of artisanal gold

    mining at Mowasi from

    alluvial workings and

    saprolite.

    Limited Exploration of

    Mowasi property

    commenced in Q1 2012.

    20

    Eagle

    Mountain PL

    EM Au

    Deposit

    Area

    Enclosing

    Mowasi Golds Properties

    10 km

  • 21

    Areas of

    interest for

    follow up

    Mowasi Gold Drainage Au Geochemistry

  • Eagle Mountain: Nearby Infrastructure

    Eagle Mountain is accessible by an existing road.

    Major road to capital Georgetown just 5 km from property.

    Small airport at Mahdia Township within 4 km of Eagle Mountain.

    Waterways located 30 km from property.

    Historical Omai gold mine ~40 km from Eagle Mountain.

    22

  • Eagle Mountain: Scoping the Saprolite Gold Resource

    23

    Source: IAMGOLD

    Mine processing flowchart for both hard rock and oxides ore. From an internal 2010 IAMGOLD Scoping Study.

  • Share Information Listed TSX.V: Z

    OTCQX: SDMTD

    Frankfurt: E9X

    Share Structure (as at December 27, 2012)

    Issued 33,847,280

    Warrants 19,638,250

    Options 1,220,000

    Fully Diluted 54,705,530

    Major Shareholders

    Management and insiders: 11%

    Sprott Gold & Precious Metals Fund: 3.8%

    IAMGOLD: 7.6%

    European holdings: estimated at approx. 10-12%

    Market Capitalization (as at December 27, 2012) ~$9.4 million

    52-Week Range (as at January 11, 2013) $0.14 to $1.45

    24

  • Why Gold is Wealth?

    25

  • Enterprise Value Growth Profile

    26

    Advanced Development Stage (Reserves)

    Production

    $50-$75

    per Au oz

    $100-$150

    per Au oz

    $350-$450

    per Au oz

    Enterprise Value

    (EV) per Minable

    Oz Increase Value through

    Resource

    Expansion

    Increase Value with

    Project Advancement

    Feasibility

    Study

    Discovery

    Pre-

    Feasibility

    Study

    Z Eagle Mountain is at the advanced

    exploration stage moving towards pre-

    feasibility study stage*

    0.00

    50.00

    100.00

    150.00

    200.00

    250.00

    300.00

    350.00

    0.00 1.00 2.00 3.00 4.00 5.00

    Capitalization of Public

    Companies ($ million) vs. Au

    oz Held (million)

    EMGC

  • Management and Directors

    Yannis Tsitos, President, CEO & Director: Physicist/geophysicist with 25 years experience in the mining industry. 19 years with BHP Billiton, the last nine as senior business development manager

    global minerals exploration. Worked on exploration projects and business deals in 32 countries. Has

    identified, negotiated and executed in excess of 55 exploration, development and mining

    agreements and joint ventures (JVs). Important role in two major discoveries. Led First Bauxite

    Corporation to the acquisition of the Bonasika Bauxite deposit (prime quality refractory bauxite).

    Geoff Hampson, Chairman & Director: A private equity investor and businessman with 35 years experience in startups, turnaround situations and M&A. Has been involved in building and selling

    private and public companies in the mining, oil and gas, manufacturing, Internet and medical fields.

    Has negotiated JVs and acquisitions in Brazil, Eastern Europe, China and North America.

    Anne Casselman, Exploration & Country Manager, Guyana: Senior Geologist with 20+ years experience in precious metal exploration (Newmont, Golden Star, Cambior, IAMGOLD). Has worked

    on Eagle Mountain project for the last six years, playing a major role in its expansion and exploration

    success.

    Art Freeze, P.Geo, Director: 43 years of experience as an exploration and production geologist (e.g., Cominco, Pasminco, Echo Bay, Pan American Silver, Stillwater). Currently a principal consultant

    to Goldcorp Inc.

    27

  • Management and Directors

    Luiz Bizzi, Director: Brazilian professional geologist and Certified Investment Analyst with over 27 years experience . PhD, MBA, and past exploration manager for South America for BHP Billiton. Dr.

    Bizzi was also the Director of Geology and Mineral Resources at CPRM the Brazilian Geological Survey and a Senior Consultant at the Brazilian Development Bank.

    Jim Heras, Chairman Emeritus, Director & Founder: 40 years experience as a businessman and investor in numerous private and public ventures, including several successful mining companies

    (President of St. Phillips Resources - Kemess Gold/ Copper Mine). Director of various companies in

    Canada.

    Tim Crowhurst, Director: 20+ years experience as a senior-level business manager and public policy communicator, specializing in international trade, political affairs, corporate restructuring and

    turnaround, and business development. He has also served as CEO for several mining exploration

    companies.

    Geoff Watson, Director: 30+ years of experience in the securities industry, with majority spent in the brokerage community (retail and institutional client management) and the financing of numerous

    public ventures. He has also overseen the financial affairs of several North American public

    companies.

    Albert Wu, CFO: Over 35 years experience as CFO of several public medium size exploration and mining companies.

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  • 15-Month (incl. 2013) Corporate Goals *

    2013 2014

    Q1 Q2 Q3 Q4 Q1

    Eagle Mountain Project

    Scoping Study

    Environmental Base Study & EIA

    Feasibility Studies

    Project Financing and Development

    Aggressive plan beyond Eagle Mountain: Entry into a positive cash flow, small-scale production *

    Targeting & Legal

    Project Financing & Development

    Cash Flow in EMGC Financials

    29

    * Disclaimer: Denotes forward-looking predictions and plans and might not be achieved.

  • Summary

    Eagle Mountain is a high-quality asset with near-term production potential.

    Project has excellent potential for expansion, both land and resource.

    Long-term blue sky potential.

    Company will aggressively pursue entry into small-scale producing opportunities in

    Guyana by leveraging managements excellent local and international network.

    Guyana is an established, mining-friendly regime.

    Property has excellent access and is in close proximity to existing infrastructure.

    Proven, experienced management team.

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  • Thank You

    For more information, please contact:

    Eagle Mountain Gold Corp., Investor Relations

    1-866-437-9552

    [email protected]

    www.eaglemountaingoldcorp.com

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