Toroparu Gold-Copper Project Cuyuni – Mazaruni Region Western Guyana SSP: TSX-V SSPXF: OTC (US) SRX: MU, BE, F (Germany) (WKN A0YF1M) June 2011
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Toroparu Gold-Copper Project Cuyuni – Mazaruni Region
Western Guyana SSP: TSX-V SSPXF: OTC (US) SRX: MU, BE, F (Germany) (WKN A0YF1M)
June 2011
Forward Looking Statements
Cautionary Note Regarding Forward-Looking Information: Except for statements of historical fact relating to Sandspring Resources Ltd. (the “Company” or “Sandspring”), certain information contained in this presentation constitutes “forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the potential of the Company’s properties; the future price of gold; success of exploration activities; costs and timing of future exploration and development; the estimation of mineral resources; conclusions of economic evaluations; requirements for additional capital; and other statements relating to the financial and business prospects of the Company. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans,” “expects,” or “does not expect,” “is expected”, “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” or “does not anticipate,” “believes,” or variations of such words and phrases. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of the management of the Company made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that the management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made. Forward-looking information is inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks related to: the Company’s goal of creating shareholder value by concentrating on the development of the Toroparu Gold-Copper Project, believing that it has the potential to contain economic gold deposits; the Company’s assessment of future plans for the Upper Puruni property; managements’ economic outlook regarding future trends; the Company’s exploration budget for the Upper Puruni property, and in particular, the availability of skilled labour, timing and the amount of the expected budget; the Company’s ability to meet its working capital needs at the current level in the short term; expectations with respect to raising capital; sensitivity analysis on financial instruments may vary from the amounts disclosed; and government regulation and environmental liability, as well as those risk factors discussed or referred to in the Company’s continuous disclosure filings with the securities regulatory authorities in Canada available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, other factors could also cause materially different results. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company’s expected financial and operational performance and the Company’s plans and objectives and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: This document uses the terms “Measured”, “Indicated” and “Inferred” Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
2
Republic of Guyana – A Good Place to Invest
• English-speaking commonwealth country
• Mining friendly jurisdiction - established mining laws
• History of large-scale gold (Omai) & bauxite mining • Emerging world-class gold producing district
• Gold production 17% of 2010 est. GDP1
• Small-scale artisanal miners produced ~300k oz. gold in 2010
• Government policy encourages development of large-scale
bedrock gold production
Aurora
3
Toroparu
200 km
Omai
1 2010 Guyana GDP estimated at $2,167 million, 300,000 ounces Au produced x $1,224.53 cum avg. price for 2010 ~17% of GDP (Source: World Bank, GGMC, SSP)
Guiana Shield – An Emerging World-Class Gold District
4 Source: Guyana Goldfields
Toroparu (Sandspring)
8.4 M oz.
Aurora (Guyana GoldFields)
6.7M oz.
Venezuela In-situ Gold Choco (Rusoro)* ~18 M oz. Las Cristinas (CVD) ~32 M oz. Las Brisas (CVD) ~11 M oz.
Guyana Aurora(Guyana Goldfields) ~7 M oz. Toroparu (Sandspring) ~8 M oz. Omai (Cambior – Closed) ~4 M oz.
Suriname Rosebel (IAMGOLD) ~15 M oz. Merian-Nassau (Newmont) ~4 M oz.
French Guiana Yaou-Dorlin ~1 M oz. Camp Caiman (IAMGOLD) ~3 M oz.
> 12 multi-million ounce Guiana Shield gold deposits1
Dardenne & Shobbenhaus, 2001
Las Cristinas| Las Brisas
5
1 Gold resources shown are for global order-of-magnitude comparison purposes only and do not represent NI 43-101 classification categories. * Currently producing mine
Choco
Aurora | Sulphur Rose Toroparu
Omai Nassau | Rosebel
Yaou
Dorlin
Camp Caiman
Multi Million Ounce Gold Deposits of the Giuana Shield
Toroparu Mine Site – Platform for Large Scale Development
6
• 9.8 M AuEq oz. MI & I Resource1 • Infill and Step-out drilling in Progress • Bringing in RC drill-rig for new targets • 14 unit CAT exploration & support fleet • 225 km road to tidewater at Itaballi • 2500’ all-weather airstrip • Acme Labs operating new on-site prep lab • 120 person camp • 40 km of exploration roads on concession • 300 KVa generator potential • Historical saprolite mine & mill (2004-06)
1) Measured & Indicated Resource of 3.514 million oz. Au and 330 million lb. Cu (4.349 million gold-equivalent ounces) Inferred Resource of 4.928 million oz. Au and 236 million lb. Cu (5.535 million gold-equivalent ounces) both contained in an optimized pit at a cut-off > 0.24 g/t AuEq. (see page 2 for cautionary statements regarding Inferred Resources).
Seasoned Management Team
DIRECTORS John R. Adams B.A. Chairman P. Greg Barnes B.Sc., M.Sc. Director Rich A. Munson B.A., J.D., L.L.M. Director Abraham P. Drost M.Sc., P. Geo Director Mark C. Maier B.Sc., MBA, CFA Director Gerald W. Grandey B.Sc., LLB Independent Director Brad L. Doores B.A., J.D. Independent Director David Constable B.Sc., MBA, ICD.D Independent Director MANAGEMENT Rich A. Munson B.A., J.D., L.L.M. Chief Executive Officer Abraham Drost M.Sc., P. Geo President P. Greg Barnes B.Sc., M.Sc. Executive VP Scott Issel, B.Sc., MBA Chief Financial Officer Wes Adams Investor Relations Mgr. EXPLORATION TEAM L. Werner Claessens B.Sc., P. Geo VP Exploration Pascal van Osta B.Sc., P. Geo Exploration Manager Terry Naciuk B.Sc., P. Geo Senior Geologist
7
Directors & Managers Experience Energy Fuels Nuclear Energy Fuels Coal Cameco Barrick Gold Corp Etruscan Resources QuadraFNX Mining Goldfields Exploration Sabina Silver Corp Baku Steel Company Marc Rich & Company
Founders, Directors &Management control 42 million shares or 38% of issued SSP Stock
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Sandspring – Multiple Opportunities for Growth
Development Potential • 5.4M AuEq oz. in preliminary mine plan2 • Avg. head grade is 1.08 g/t AuEq2
• Avg. Annual production: 275,000 oz. gold and 21 million lb. copper
• $523/oz. AuEq Production costs • $1,565 B LOM free cash @ $1137/oz. Au,
$3.13/lb. Cu • Advanced stage of permitting • De-risking to production decision in 2012 • Actively recruiting project development
personnel
Exploration Potential • World-class exploration team • Drilling Toroparu resource
extensions and satellite targets • Systematic regional exploration
leading to robust drill-target pipeline
• Strong financial position to support exploration
• Road access to active exploration areas
Foundation • Seasoned management team • Significant in-country experience • 1,000 sq. km mineral concession • Well established infrastructure • Growing Resources1 • $6/oz. AuEq discovery cost • Resource still open
8
Foundation Development Exploration
1) Measured & Indicated Resource of 3.514 million oz. Au and 330 million lb. Cu (4.349 million gold-equivalent ounces) Inferred Resource of 4.928 million oz. Au and 236 million lb. Cu (5.535 million gold-equivalent ounces) both contained in an optimized pit at a cut-off > 0.24 g/t AuEq. (see page 2 in this presentation for cautionary statements regarding Inferred Resources). 2) See NI 43-101 Potentially Mineable Resource table on page 37
Toroparu
Development & Exploration Timelines
De-risking & Permitting
Financing & Construction Feasibility & Op Team
2011 2012 2013 2014 2015
• Environmental authorisation • Project optimization • Pit plan optimization • Geotechnical drilling
• Feasibility • Establish mine
management & development team
• Mining permit
• Construction financing
• Mine construction
• Mill assembly • Pre-strip • Workforce
training
• Large-scale gold and copper production
• In-country exploration office • World class geologists • Toroparu exploration program • Regional mapping & sampling
• Country-wide exploration
• Regional mapping • Satellite drilling • Joint property
evaluations
9
Toroparu
• Country-wide exploration
• Project Pipeline development
Exploration
Testing Toroparu Extensions, Exploring Upper Puruni Concession and Beyond…
Corporate SSP: TSX-V
Shares Issued 108,015,402
Options 6,768,934
Warrants 5,560,582
Fully Diluted 120,784,067
52 week: Hi/Lo $3.75 - $1.09
Avg. volume (3 mo.)* 324,496
Market Cap* $254 million
Cash Position ̴C$37 million
Monthly Expenses ̴$2.5 million
Insider Holdings 42,000,000
Drilling Results
Resource Updates
Permitting
Development & Exploration Results
Strong Financial Position
Mean Analyst Price Target
$5.85
•
10 * As of May 13, 2011
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11
March 26, 2010: Financing C$14.5M at $1.60 Bought Deal
June 3, 2010: NI 43-101 Resource Update 2.9 M oz. Au, 288m lb. Cu indicated 0.9 M oz. Au, 66m lb. Cu inferred
Sept 15, 2010: NI 43-101 Resource Update 2.64 M oz. Au, 261m lb. Cu Indicated 3.42 M oz. Au, 216m lb. Cu Inferred
Oct 14, 2010: Financing C$51M at $2.60 bought deal
Mar 21, 2011: NI 43-101 Resource Update 3.51M oz. Au, 330 M lb. Cu M&I, 4.93M oz. Au, 236 M lb. Cu Inferred
May 9, 2011: PEA Tech Report Release 5.40 M oz. AuEq1 pit at avg. 1.08 g/t AuEq grade
$854 M NPV@ 5% & 24.5% IRR (pre-royalty & tax) Nov 30, 2009: Opening Price First trade in open market at $0.70 C$9.00 M at $0.35 Prospectus Filing
Pit Statistics Phase I : Year 1-4 • 40 M tonnes - 252m depth • 1.6 M oz. AuEq | 310k oz./a • 1.7:1 W/O | $318/oz. Au2 Phase II : Year 2-7 • 55 M tonnes – 375m depth • 1.85 M oz. AuEq Phase III: Year 6-13 • 45 M tonnes - 480m depth • 1.4 M oz. AuEq All Phases • 140 M tonnes | 4.4:1 W/O • 4.86 M oz. AuEq | 273 k oz./a • $525/oz. AuEq | $449/oz. Au2
5.40 M oz. AuEq1 Mine Development Plan 1.08 g/t AuEq average grade of open pit operation at 0.5 g/t AuEq cut-off
11
NI 43-101 Potentially Mineable Portion of the Resource – P&E Mining Consultants – Feb 20111
Resource Categories
Resource Tonnage (000)
Gold Copper Gold-Equivalent Grade (g/t) (k oz.) Grade (%) (M lb.) Grade (g/t) (k oz.)
Measured & Indicated 91,505 0.91 2,672 0.13 253 1.14 3,354
Inferred 48,749 0.81 1,273 0.08 89 0.96 1,505
Total MI & Inferred 140,254 0.87 3,945 0.10 342 1.08 4,859
Low-Grade Stockpile 39,012 0.31 374 0.06 11 0.42 527
Phase I 1.26 g/t AuEq
1 The estimated 5.4 M ounce gold-equivalent potentially mineable resource is based on a 0.5 g/t gold equivalent mineable resource, 7% mine dilution at a diluting grade of 0.2 g/t Au and 0.03% Cu with 2.5% mining losses; includes the recovery of Au and Cu from a 39 million ton low-grade stockpile, grading 0.42 g/t AuEq, accumulated during the 13 year open pit mining operation. Cut off based on mining cost of $1.28/t mined, processing cost of $6.62/ t milled, and G&A cost of $1.52/t milled. 2 Cash operating cost per ounce gold net of value of by-product copper.
Phase II 1.03 AuEq
Phase III 0.97 g/t AuEq
500 M
350E
13-year pit operation generates 39 M tonne low grade stockpile 1700W
N
Feb 2011 Preliminary Assessment of Toroparu Mine Plan
1) PEA base assumption derived on 17-year life of mine (13-year open pit + 4- year stockpile processing), metal and fuel prices based on 24-month trailing avg. prices to February 28th 2011. 2) Current sensitivities based on average prices for Feb 2011. 3) Cash cost per ounce of recovered gold net of by- product copper value.
12
Economic Model Parameters PEA Base1 Sensitivity2
24-month trailing Avg. Feb 2011
Au Price ($/oz.) 1,137 1,373 (20%)
Cu Price ($/Lb.) 3.13 4.40 ( 40%)
HFO Price ($/bbl.) 70 100 (42%)
Diesel Price ($/Lt.) 1.06 1.50 (42%)
Power Cost (¢/kWh) 11.60 15.90 (37%)
Operating Cost ($/t milled) 13.78 15.52 (13%)
By-Product Cash Cost ($/Au oz.)3 442 524 (18%)
Pre-Production Capex 617 M 679 M (10%)
NPV 0% 1,565 M 2,063 M
NPV 5% 854 M 1,162 M
IRR % 24.5 28.6
Payback Period (Years) 3.2 2.9
* NPV, IRR, and Payback Periods are calculated on Pre Tax (35%) and Royalty (5%) basis
CapEx Pre-Prod Sustaining Total Potential External
($million) CapEx CapEx CapEx Finance Road & Port 110 110 88 (80%) Site Infrastructure 57 57 0 Power 86 2 88 67 (80%) Mining Equip. 106 163 269 85 (50%) Processing 245 245 Tailings 13 135 148 Alphonso Royalty 20 20 Total 637 300 937 -240 Project Debt & Equity Requirement 397 M * Company estimates
500M
1700W
350E
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
0.50 g/t AuEqTech Rpt 153Oct 26, 2008
0.40 g/t AuEqTech Rpt 186May 12, 2010
0.42 g/t AuEqTech Rpt 193Sep 12, 2010
0.42 g/t AuEqTech Rpt 208Feb 28, 2011
2.3
3.8
6.6 7.5
Gol
d (M
illio
n oz
.)
> 2.0 g/t Au Eq cut off > 1.5 g/t Au Eq cut off > 1 g/t Au Eq cut off Resource @ cut-off grade *
Rapidly Expanding Gold & Copper Resource
* Total mineral resources are NI 43-101 compliant resources in excess of gold equivalent cut-off displayed in the corresponding label above the effective date of each technical report, or as otherwise described in the legend of the chart
Growth of Higher Grade Resources
13
Toroparu Deposit Area Geology Potential for additional mineralization along strike and in satellite lenses
14
• Mineralization hosted in massive intermediate volcanic and acid intrusive units in WNW trending shear zone at contact with granitic pluton • E-W trends in the intensity of gold and sulphide mineralization are visible within the drilling results (Red-Yellow colors in figure on right) • Sinistral (left-handed) displacement is hypothesized at present (in figure on right) • 2011 drill program targeting potential for series of en-echelon E-W trending features within Toroparu Deposit Area
Hypothesized shear zone mineralization control Toroparu Induced Polarity conductivity map
200 m
15
Toroparu Au-Cu Resource Trend
SSP Claim Boundary 2011 Exploration Area
JERS Satellite & Sketch of Main Litho-structural Linéaments Airborne Geophysics: Airborne Magnetic Reduced to Pole
Upper Puruni Concession Geology Satellite and Magnetic Imagery Indicates District Scale Potential
2011 Regional Exploration Programs Investigating Puruni Shear and Putareng Granatoids
16
Puruni Shear Zone
Ameeba Hills
Timmermans | Manx
Putareng Granitoid
Northwest Toroparu
New Access Roads
Southeast Toroparu
Main Pit
2011 Regional Exploration Program Objectives Systematic geochemical & geophysical surveys of Puruni Shear Zone & Putareng Granitoid Areas of property
- Development of drill target pipeline in these areas
Putareng Granitoid
Puruni Shear Zone
Ameeba Hills
Toroparu Deposit Area Exploration Drilling Satellite Deposit Pipeline
17 1 Budget subject to change as geologic conditions warrant
2 km
2011 Exploration Objectives
- Increase confidence in Toroparu Resource through infill drilling
- Expand and optimize grade of Toroparu Main Pit Area
- Exploratory drilling at Ameeba Hills, Manx, and Timmermans Alluvial deposits
Ameeba Hills
Timmermans
Northwest Toroparu
Southeast Toroparu
Main Pit
Manx
What is Happening at Toroparu Today
• Diamond rigs drilling up to 10,000 meters per month
• 4 regional soil sampling crews conducting regional ICP geochemical surveys of prospective areas
• Step-out drilling in progress along Toroparu trend
• Drill target advancement at Ameeba Hills, Manx, and Timmermans Prospects
• Building access roads to active exploration areas
• Optimizing potentially mineable resources toward feasibility
• Pre-feasibility engineering (LIDAR, Pit-Slope and Tailings, Metallurgical Testing)
• Recruitment of mine management & project development team
18
Mine Development at Toroparu is Good for Guyana
• Estimated employment of 700 Guyanese citizens
• Supports government initiatives from artisanal to large-scale mining
• Provide reliable access to growing resource
district
• Double Guyana’s current gold production
• Could boost Guyana’s GDP by 20%
• Large tax revenue generator
• Provide needed in-country infrastructure
19
Significantly Undervalued vs. Development Gold Peers
20
Source: Company Reports, Bloomberg, and BMO CM Equity Research Note: Gold equivalent reserves and resources calculated at street consensus long-term commodity price estimates; Market data as at May 20, 2011 1. Includes Alamos, Aurizon, Avion, Avocet, CGA, Gammon, Golden Star, Jaguar, Kingsgate, Lake Shore, Minefinders, Oceana, Primero, Resolute, San Gold, and Teranga 2. Includes African Barrick, Buenaventura, Centamin, Centerra, Eldorado, IAMGOLD, New Gold, Petropavlovsk, Randgold, and Semafo
Company Main Asset Name
Main Asset Location Stage Enterprise
ValueLOM Avg.
ProductionLOM Avg.
Cash Costs
Average Resource Grade
(All Metals)
Total Resources (All Metals)
EV / Resources (All Metals)
(US$ millions) (000s oz) (US$ / oz) (g/t Au Eq.) (mm oz Au Eq.) (US$ / oz)
Gabriel Rosia Montana Romania Feasibility $2,780 478 $393 1.4 15.0 $185
Detour Detour Lake Canada Construction 2,030 645 511 1.0 27.0 75
Perseus CAGP Ghana Construction 1,150 265 624 1.1 7.0 164
Extorre Cerro Morro Argentina Scoping Study 934 102 389 2.2 2.2 415
Rubicon Phoenix Canada Resource Estimate 928 190 335 17.3 3.1 304
Romarco Haile United States Feasibility 822 342 346 1.7 4.2 196
Guyana Goldfields Aurora Guyana Scoping Study 711 265 384 3.7 7.1 100
International Tower Hill Livengood United States Scoping Study 593 539 575 0.6 20.2 29
Torex Morelos Mexico Resource Estimate 545 290 389 4.6 3.3 165
Keegan Esaase Ghana Resource Estimate 375 201 557 1.1 4.9 76
Orezone Bomboré Burkina Faso Resource Estimate 330 185 562 1.0 4.0 82
Andina Volcan Chile Pre-Feasibility 105 290 622 0.7 10.1 10
Average $942 316 $474 3.0 9.0 $150
Junior Producers (1) $862 2.8 6.6 $157
Intermediate Producers (2) $4,898 3.7 27.8 $206
Sandspring Scoping Study $226 273 449 0.8 9.8 $23
Reasons to Invest in Sandspring
• Guyana Shield - one of top new gold exploration areas in the world
• Successful and experienced founding group with 38% ownership block
• Rapidly growing gold-copper resources (8.4M oz. Au | 550M lb. Cu) located at Toroparu (approximately 2% of land package)
• De-risking Toroparu asset to production decision (Feb 2011 Preliminary Assessment valuation: $854 M pre-tax NPV5%)
• Environmental authorization pending – Q3 2011
• Recruitment of mine development team in progress
• Significant mineral district potential (1,000 km2 concession)
• World-class greenstone geologists leading exploration team
• Property-wide airborne geophysical survey completed
• Substantial cash available for 2011 exploration budget
• $250 M market cap with 108 M shares outstanding and C$37 million in treasury
21
Corporate Snapshot
Symbol SSP: TSX-V Shares Issued 108,015,402
Options 6,768,934
Warrants 5,560,582
Diluted 120,784,067
52 week: Hi/Lo $3.75 - $1.09
3-month average volume 324,496*
Market Cap $254 million*
Cash Position ̴C$37 million
Average Monthly Expenses ̴$2.5 million
Debt $0
Top Shareholders Shares % Crescent Global Gold Ltd. (Insiders) 30,525,030 28.25
Mercedario Ltd. (Local Partner) 7,631,258 7.06
RBC Global Assets Managements Inc. 6,445,300 5.96
Libra Advisors LLC 5,724,700 5.29
BMO Asset Management Inc. 4,050,600 3.75
AGF Investments Inc. 3,197,176 2.96
Alphonso (Local Partner) 1,722,268 1.60
Sprott Asset Management LP 1,442,900 1.34
Mark C Maier (Insider) 1,215,254 1.12
Goodman & Company Investment Counsel 518,000 .48
Analyst Coverage
Salman Partners
Mackie Research Capital
Jennings Capital *As of May 9, 2011
22 * As of May 9, 2011
Contact Information
Head Office: Sandspring Resources 8000 South Chester Street, Suite 375 Centennial, CO 80112 Telephone: 720-854-0104 Fax: 303-480-1449
Investor Queries: Email: [email protected]
23
Appendix
24
Geology Slides 22-25
• JERS Satellite Image: Sketch
of Main Litho-structural Linéaments
• Hypothesized “Shear Hosted” Deposit Model
• 2008 Airborne Magnetic and Multi-Channel Radiometrics Survey
• Granite – Greenstone Volcanic Hosted Gold Mineralization
Toroparu Economics Slides 27-31
• Expanding Gold Copper
Resource
• Gold – Copper Resource
• Planned Production Asset
• Mining Plan
• Process Flow Diagram
Corporate Information Slides 33-35
• Corporate Snapshot
• Management Bios
• Director Bios
JERS Satelite Image Sketch of Main Litho-Structural Elements
25
Upper Puruni exploration areas are marked by conjugate sets of Fault / Shear zones NW-SE trending fault shears (e.g. Puruni River) are parallel to greenstone belt orientations N-NW trending conjugate faults include
Regional Putareng Fault/Shear Wynamu Fault/Shear
2011 regional exploration program to focus on exploration of fault/shear zones within property boundary
Fault/Shear Zones Wynamu NNW Fault/Shear
Puruni WNW Fault/Shear
Toroparu Au-Cu Resource
Putareng Fault/Shear NNW trending System
Hypothesized “Shear Hosted” Deposit Model
26
• E-W trends in the intensity of gold and sulphide mineralization are visible within the drilling results (Red-Yellow colors in figure)
• Sinistral (left-handed) displacement is hypothesized at present
• Potential for series of en-echelon EW-trending extensional features
• ~ 60% of higher grade mineralization is contained within these areas
• Evidence for N and S bounding faults along strike is modeled in several drill holes
Observations
2008 Airborne Magnetic and Multi-Channel Radiometric Survey
• 2008 Airborne Magnetic and Total Count K, U, Th radiometric survey indicates Iron enrichment along major features defined on satellite imagery
• Toroparu Gold-Copper Resource occurs in area of low magnetic relief between WNW Puruni River and NNW Wynamu Fault/Shear zones
• Faulting and folding of Fe-enriched granitic intrusions and diverse regional mineral associations (FeO, Cu, Au, U) indicate potential for IOCG type deposits
• Regional Exploration program commenced in March 2011 includes geochemical sampling, geologic mapping and ground geophysics of prospective geologic features
Airborne Geophysics Airborne Reduced to Pole Residual Magnetic Intensity
27
Toroparu Resource Expansion Potential Granite – Greenstone Volcanic Hosted Gold Mineralization Granite – Greenstone Volcanic Hosted Gold Mineralization
28
Surface Gradient Induced Polarization (IP) Survey
Economic Gold & Copper mineralization has been defined over 2100 m strike length in WNW trending, sub-vertically dipping vein sets
Mineralization occurs along the flanks of porphyritic granitoid pluton hosted by a sequence of alternating intermediate volcanics, pyroclastics, and sediments
Gold is associated with sulphide minerals disseminated in the volcano-sedimentary sequence and in silica-carbonate alteration fracture fills
Gold-Copper mineralization is marked by an Au-Cu-Mo associations
Sulphide mineralogy includes Pyrite, Chalcopyrite, Molybdenite, Bornite, and Chalcocite
Porphyritic granitic pluton - - -
Mineralization
Toroparu Resource Expansion Potential Granite – Greenstone Volcanic Hosted Gold Mineralization Granite – Greenstone Volcanic Hosted Gold Mineralization
29
TPD001
188. 5 m
TPD002
329. 5 m
TPD003
275 m
TPD004
380. 4 m
TPD005
350 m
TPD006
302 m
TPD007
350 mTPD008
251 m
TPD009
245 m
TPD010
188 m
TPD011
296 m
TPD012
203 m
TPD013
121. 8 m
TPD014
60 mTPD014A
425 m
TPD015
389 m
TPD016
413 m
TPD017
416. 3 m
TPD018
401 m
TPD019
419 m
TPD020
413. 5 m
TPD021
401 m
TPD022
410 m
TPD023
414 m
TPD024
397. 5 m
TPD025
401 m
TPD026
425 m
TPD027
431 m TPD028
401 m
TPD029
521 mTPD030
5 64 m
TPD031
816 m
TPD031A74 m
TPD032
642. 7 m
TPD033
200 m
TPD034
251 m
TPD035
566 m
TPD036
447 m
TPD037
575 m
TPD038
495 m
TPD039
405 m
TPD040
406 m
TPD041
531 m
TPD042
465 m
TPD043
297 mTPD044
387 m
TPD045
318 m
TPD046
501 m
TPD047
549 m
TPD048
488 m
TPD049
582 m
TPD050
572 m
TPD051
615 m
TPD052
498 m
TPD053
544 m
TPD054
615 m
TPD055
565. 5 m
TPD056
524 m
TPD057
543 mTPD058
567 m
TPD059
333 m
TPD060
512 m
TPD061
656 m
TPD062
467 m
TPD063
458 m
TPD064
448 m
TPD065
464 m
TPD066
537 m
TPD067
564 m
TPD068
553 m
TPD069
592 m
TPD070
400 m
TPD071
509 m
TPD072
508 m
TPD073
666 m
TPD074
389 m
TPD075
552 m
TPD07 6
6 12 m
TPD077
658 m
TPD078
513 m
TPD079
618 m
TPD080
684 m
TPD081
621 m
TPD082
602 m
TPD083
636 m
TPD084
521 m
TPD085
481 m
TPD086
571 m TPD087
552 m TPD088
761 m
TPD089
596 m
TPD090
633 m
TPD091
780 mTPD092
542 m
TPD093
729. 3 m
TPD094
597 m
TPD095
764 m
TPD096
718 m
TPD097
711 m
TPD098
699. 6 m
TPD099
606 m
TPD100
740 mTPD101
574. 2 m
TPD102
588 m
TPD103
513. 7 mTPD104
650 mTPD105
698 m
TPD106
672 mTPD107
735 m
TPD108
748 m
TPD109
629 mTPD110
746 m
TPD111
657 m
TPD112
747. 2 m
TPD113
572 m
TPD114
738 mTPD115
699 m
TPD116
717 m
TPD117
489 m
TPD118
624 m
TPD119
382 m
TPD120
345 m
TPD121
470 m
TPD123
446. 5 m
TPD125
362 mTPD127
339 m
TPD128
339 m
TPD129
519 m
TPD130
439. 6 m
TPD131
531 m
TPD132
453 m
TPD133
581 m
TPD134
611 m
TPD135
440 m
TPD145
TOROPARUDEPOSITDrill grid
TPD001
188. 5 m
TPD002
329. 5 m
TPD003
275 m
TPD004
380. 4 m
TPD005
350 m
TPD006
302 m
TPD007
350 mTPD008
251 m
TPD009
245 m
TPD010
188 m
TPD011
296 m
TPD012
203 m
TPD013
121. 8 m
TPD014
60 mTPD014A
425 m
TPD015
389 m
TPD016
413 m
TPD017
416. 3 m
TPD018
401 m
TPD019
419 m
TPD020
413. 5 m
TPD021
401 m
TPD022
410 m
TPD023
414 m
TPD024
397. 5 m
TPD025
401 m
TPD026
425 m
TPD027
431 m TPD028
401 m
TPD029
521 mTPD030
5 64 m
TPD031
816 m
TPD031A74 m
TPD032
642. 7 m
TPD033
200 m
TPD034
251 m
TPD035
566 m
TPD036
447 m
TPD037
575 m
TPD038
495 m
TPD039
405 m
TPD040
406 m
TPD041
531 m
TPD042
465 m
TPD043
297 mTPD044
387 m
TPD045
318 m
TPD046
501 m
TPD047
549 m
TPD048
488 m
TPD049
582 m
TPD050
572 m
TPD051
615 m
TPD052
498 m
TPD053
544 m
TPD054
615 m
TPD055
565. 5 m
TPD056
524 m
TPD057
543 mTPD058
567 m
TPD059
333 m
TPD060
512 m
TPD061
656 m
TPD062
467 m
TPD063
458 m
TPD064
448 m
TPD065
464 m
TPD066
537 m
TPD067
564 m
TPD068
553 m
TPD069
592 m
TPD070
400 m
TPD071
509 m
TPD072
508 m
TPD073
666 m
TPD074
389 m
TPD075
552 m
TPD07 6
6 12 m
TPD077
658 m
TPD078
513 m
TPD079
618 m
TPD080
684 m
TPD081
621 m
TPD082
602 m
TPD083
636 m
TPD084
521 m
TPD085
481 m
TPD086
571 m TPD087
552 m TPD088
761 m
TPD089
596 m
TPD090
633 m
TPD091
780 mTPD092
542 m
TPD093
729. 3 m
TPD094
597 m
TPD095
764 m
TPD096
718 m
TPD097
711 m
TPD098
699. 6 m
TPD099
606 m
TPD100
740 mTPD101
574. 2 m
TPD102
588 m
TPD103
513. 7 mTPD104
650 mTPD105
698 m
TPD106
672 mTPD107
735 m
TPD108
748 m
TPD109
629 mTPD110
746 m
TPD111
657 m
TPD112
747. 2 m
TPD113
572 m
TPD114
738 mTPD115
699 m
TPD116
717 m
TPD117
489 m
TPD118
624 m
TPD119
382 m
TPD120
345 m
TPD121
470 m
TPD123
446. 5 m
TPD125
362 mTPD127
339 m
TPD128
339 m
TPD129
519 m
TPD130
439. 6 m
TPD131
531 m
TPD132
453 m
TPD133
581 m
TPD134
611 m
TPD135
440 m
TPD145
TOROPARUDEPOSITDrill grid
TPD001
188. 5 m
TPD002
329. 5 m
TPD003
275 m
TPD004
380. 4 m
TPD005
350 m
TPD006
302 m
TPD007
350 mTPD008
251 m
TPD009
245 m
TPD010
188 m
TPD011
296 m
TPD012
203 m
TPD013
121. 8 m
TPD014
60 mTPD014A
425 m
TPD015
389 m
TPD016
413 m
TPD017
416. 3 m
TPD018
401 m
TPD019
419 m
TPD020
413. 5 m
TPD021
401 m
TPD022
410 m
TPD023
414 m
TPD024
397. 5 m
TPD025
401 m
TPD026
425 m
TPD027
431 m TPD028
401 m
TPD029
521 mTPD030
5 64 m
TPD031
816 m
TPD031A74 m
TPD032
642. 7 m
TPD033
200 m
TPD034
251 m
TPD035
566 m
TPD036
447 m
TPD037
575 m
TPD038
495 m
TPD039
405 m
TPD040
406 m
TPD041
531 m
TPD042
465 m
TPD043
297 mTPD044
387 m
TPD045
318 m
TPD046
501 m
TPD047
549 m
TPD048
488 m
TPD049
582 m
TPD050
572 m
TPD051
615 m
TPD052
498 m
TPD053
544 m
TPD054
615 m
TPD055
565. 5 m
TPD056
524 m
TPD057
543 mTPD058
567 m
TPD059
333 m
TPD060
512 m
TPD061
656 m
TPD062
467 m
TPD063
458 m
TPD064
448 m
TPD065
464 m
TPD066
537 m
TPD067
564 m
TPD068
553 m
TPD069
592 m
TPD070
400 m
TPD071
509 m
TPD072
508 m
TPD073
666 m
TPD074
389 m
TPD075
552 m
TPD07 6
6 12 m
TPD077
658 m
TPD078
513 m
TPD079
618 m
TPD080
684 m
TPD081
621 m
TPD082
602 m
TPD083
636 m
TPD084
521 m
TPD085
481 m
TPD086
571 m TPD087
552 m TPD088
761 m
TPD089
596 m
TPD090
633 m
TPD091
780 mTPD092
542 m
TPD093
729. 3 m
TPD094
597 m
TPD095
764 m
TPD096
718 m
TPD097
711 m
TPD098
699. 6 m
TPD099
606 m
TPD100
740 mTPD101
574. 2 m
TPD102
588 m
TPD103
513. 7 mTPD104
650 mTPD105
698 m
TPD106
672 mTPD107
735 m
TPD108
748 m
TPD109
629 mTPD110
746 m
TPD111
657 m
TPD112
747. 2 m
TPD113
572 m
TPD114
738 mTPD115
699 m
TPD116
717 m
TPD117
489 m
TPD118
624 m
TPD119
382 m
TPD120
345 m
TPD121
470 m
TPD123
446. 5 m
TPD125
362 mTPD127
339 m
TPD128
339 m
TPD129
519 m
TPD130
439. 6 m
TPD131
531 m
TPD132
453 m
TPD133
581 m
TPD134
611 m
TPD135
440 m
TPD145
TOROPARUDEPOSITDrill grid
ICPCu
TPD001
188. 5 m
TPD002
329. 5 m
TPD003
275 m
TPD004
380. 4 m
TPD005
350 m
TPD006
302 m
TPD007
350 mTPD008
251 m
TPD009
245 m
TPD010
188 m
TPD011
296 m
TPD012
203 m
TPD013
121. 8 m
TPD014
60 mTPD014A
425 m
TPD015
389 m
TPD016
413 m
TPD017
416. 3 m
TPD018
401 m
TPD019
419 m
TPD020
413. 5 m
TPD021
401 m
TPD022
410 m
TPD023
414 m
TPD024
397. 5 m
TPD025
401 m
TPD026
425 m
TPD027
431 m TPD028
401 m
TPD029
521 mTPD030
5 64 m
TPD031
816 m
TPD031A74 m
TPD032
642. 7 m
TPD033
200 m
TPD034
251 m
TPD035
566 m
TPD036
447 m
TPD037
575 m
TPD038
495 m
TPD039
405 m
TPD040
406 m
TPD041
531 m
TPD042
465 m
TPD043
297 mTPD044
387 m
TPD045
318 m
TPD046
501 m
TPD047
549 m
TPD048
488 m
TPD049
582 m
TPD050
572 m
TPD051
615 m
TPD052
498 m
TPD053
544 m
TPD054
615 m
TPD055
565. 5 m
TPD056
524 m
TPD057
543 mTPD058
567 m
TPD059
333 m
TPD060
512 m
TPD061
656 m
TPD062
467 m
TPD063
458 m
TPD064
448 m
TPD065
464 m
TPD066
537 m
TPD067
564 m
TPD068
553 m
TPD069
592 m
TPD070
400 m
TPD071
509 m
TPD072
508 m
TPD073
666 m
TPD074
389 m
TPD075
552 m
TPD07 6
6 12 m
TPD077
658 m
TPD078
513 m
TPD079
618 m
TPD080
684 m
TPD081
621 m
TPD082
602 m
TPD083
636 m
TPD084
521 m
TPD085
481 m
TPD086
571 m TPD087
552 m TPD088
761 m
TPD089
596 m
TPD090
633 m
TPD091
780 mTPD092
542 m
TPD093
729. 3 m
TPD094
597 m
TPD095
764 m
TPD096
718 m
TPD097
711 m
TPD098
699. 6 m
TPD099
606 m
TPD100
740 mTPD101
574. 2 m
TPD102
588 m
TPD103
513. 7 mTPD104
650 mTPD105
698 m
TPD106
672 mTPD107
735 m
TPD108
748 m
TPD109
629 mTPD110
746 m
TPD111
657 m
TPD112
747. 2 m
TPD113
572 m
TPD114
738 mTPD115
699 m
TPD116
717 m
TPD117
489 m
TPD118
624 m
TPD119
382 m
TPD120
345 m
TPD121
470 m
TPD123
446. 5 m
TPD125
362 mTPD127
339 m
TPD128
339 m
TPD129
519 m
TPD130
439. 6 m
TPD131
531 m
TPD132
453 m
TPD133
581 m
TPD134
611 m
TPD135
440 m
TPD145
TOROPARUDEPOSITDrill grid
ICPMo
Airborne Geophysics K anomaly Th anomaly
Geochemistry ICP Cu ICP Mo ICP Th
Anomalous geochemical indicators Cu, Mo, Th at Toroparu to be systematically mapped during regional and deposit area programs.
TPD001
188. 5 m
TPD002
329. 5 m
TPD003
275 m
TPD004
380. 4 m
TPD005
350 m
TPD006
302 m
TPD007
350 mTPD008
251 m
TPD009
245 m
TPD010
188 m
TPD011
296 m
TPD012
203 m
TPD013
121. 8 m
TPD014
60 mTPD014A
425 m
TPD015
389 m
TPD016
413 m
TPD017
416. 3 m
TPD018
401 m
TPD019
419 m
TPD020
413. 5 m
TPD021
401 m
TPD022
410 m
TPD023
414 m
TPD024
397. 5 m
TPD025
401 m
TPD026
425 m
TPD027
431 m TPD028
401 m
TPD029
521 mTPD030
5 64 m
TPD031
816 m
TPD031A74 m
TPD032
642. 7 m
TPD033
200 m
TPD034
251 m
TPD035
566 m
TPD036
447 m
TPD037
575 m
TPD038
495 m
TPD039
405 m
TPD040
406 m
TPD041
531 m
TPD042
465 m
TPD043
297 mTPD044
387 m
TPD045
318 m
TPD046
501 m
TPD047
549 m
TPD048
488 m
TPD049
582 m
TPD050
572 m
TPD051
615 m
TPD052
498 m
TPD053
544 m
TPD054
615 m
TPD055
565. 5 m
TPD056
524 m
TPD057
543 mTPD058
567 m
TPD059
333 m
TPD060
512 m
TPD061
656 m
TPD062
467 m
TPD063
458 m
TPD064
448 m
TPD065
464 m
TPD066
537 m
TPD067
564 m
TPD068
553 m
TPD069
592 m
TPD070
400 m
TPD071
509 m
TPD072
508 m
TPD073
666 m
TPD074
389 m
TPD075
552 m
TPD07 6
6 12 m
TPD077
658 m
TPD078
513 m
TPD079
618 m
TPD080
684 m
TPD081
621 m
TPD082
602 m
TPD083
636 m
TPD084
521 m
TPD085
481 m
TPD086
571 m TPD087
552 m TPD088
761 m
TPD089
596 m
TPD090
633 m
TPD091
780 mTPD092
542 m
TPD093
729. 3 m
TPD094
597 m
TPD095
764 m
TPD096
718 m
TPD097
711 m
TPD098
699. 6 m
TPD099
606 m
TPD100
740 mTPD101
574. 2 m
TPD102
588 m
TPD103
513. 7 mTPD104
650 mTPD105
698 m
TPD106
672 mTPD107
735 m
TPD108
748 m
TPD109
629 mTPD110
746 m
TPD111
657 m
TPD112
747. 2 m
TPD113
572 m
TPD114
738 mTPD115
699 m
TPD116
717 m
TPD117
489 m
TPD118
624 m
TPD119
382 m
TPD120
345 m
TPD121
470 m
TPD123
446. 5 m
TPD125
362 mTPD127
339 m
TPD128
339 m
TPD129
519 m
TPD130
439. 6 m
TPD131
531 m
TPD132
453 m
TPD133
581 m
TPD134
611 m
TPD135
440 m
TPD145
TOROPARUDEPOSITDrill grid
ICPTh
Toroparu - Expanding Gold Copper Resource Resource contained in optimized pit at 0.24 g/t AuEq grade cut off and potentially minable pit at 0.5 g/t AuEq grade cut-off
30
Prices (2-yr. trailing avg.) • Au: $1,137/oz. • Cu: $3.13/lb. • AuEq: % Cu = 1.62 g/t Au Recoveries and Payables • Au : 93% x 95% • Cu: 80% x 96% • Cu con T/C, R/C: $75 & $0.075 • Cu con transport $133/wmt Mining costs • $1.28 /t fresh bedrock • $0.87/t weathered saprolite Processing and G&A • $8.16/t milled Pit slopes • 49o Fresh Rock & 38° SAP
Optimization Assumptions
1 Potentially minable and optimized pit shell resources based on 127 deposit specific diamond drill holes (63,614 m) drilled from Dec 2006 - Dec 2010 and pit optimization parameters effective on Feb 28, 2011, as further disclosed in the company’s Mar 21, 2011 press release.
Mineral Resource1 Tonnes (000’s)
Au (g/t) Cu (%)
AuEq (g/t)
Au oz. (000’s)
Cu lb. (millions)
AuEq oz. (000’s)
Measured 29,656 0.88 0.14 1.11 841.7 89.6 1,062.6
Indicated 122,213 0.68 0.09 0.84 2,671.9 240.0 3,286.5
Measured & Indicated 151,869 0.72 0.10 0.89 3,513.6 329.6 4,349.1
Inferred 214,838 0.71 0.05 0.80 4,928.7 235.6 5,534.6
Potentially Mineable Resources1 Tonnes (000’s)
Au g/t
Cu %
AuEq g/t
Au oz. (000’s)
Cu lb. (millions)
AuEq oz. (000’s)
Saprolite Measured & Indicated 2,688 0.90 0.06 1.00 78.0 3.3 86.4 Saprolite Inferred* 4,016 0.98 0.05 1.07 126.5 4.5 138.1
Fresh Rock Measured & Indicated 88,817 0.91 0.13 1.14 2,593.9 249.3 3,255.3 Fresh Rock Inferred* 44,733 0.80 0.09 0.95 1,146.3 84.1 1,366.3
Total Measured & Indicated 91,505 0.91 0.13 1.14 2,671.9 252.6 3,353.8 Total Inferred* 48,749 0.81 0.08 0.96 1,272.8 88.6 1,504.6
Notes and Disclaimer *Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues and are subject to the findings of a full feasibility study. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. The mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on December 11, 2005.
Toroparu Gold-Copper Mineralized Resource
1 Independent NI 43-101 resource estimate based on 127 deposit specific diamond drill holes (63,614 m) of drilling conducted from Dec 2006 - Dec 2010 and pit optimization parameters as disclosed in Technical Report No. 208, dated April 30, 2011. 2 Estimated tonnes and grade based on 0.24 g/t gold-equivalent cut-off grade optimized pit shell utilizing a two-year trailing average price of $1,137/oz. & 93% recovery for gold, price of $3.13/lb. and 80% recovery for copper, a gold–equivalent ratio of 1.62 g/t gold/1% copper, and $8.16 processing and G&A operating cost estimates derived in the Preliminary Assessment.
NI 43-101 Resource Table – P&E Mining Consultants – Feb 20111
Resource Resource Gold Copper Gold-Equivalent Categories Tonnage (000) Grade (g/t) (k oz.) Grade (%) (M lb.) Grade (g/t) (k oz.)
Measured & Indicated 151,869 0.72 3,514 0.10 330 0.89 4,349
Inferred 214,838 0.71 4,928 0.05 236 0.80 5,535
Total (MI&I) 366,707 0.71 8,442 0.07 566 0.84 9,884
500 M
1700W
31
350E
Toroparu Planned Production Asset – 5.40 MM oz. AuEq
Phase 1 Year 1-4
Phase 2 Year 2-11
13-Year Three Phase Mine Plan Phase 3 Year 6-13
32
1 Phase 1 production results are blended with Phase 2 waste stripping beginning in year 2 & Phase 2 ore production in year 3. Phase 3 waste and ore production begins in year 6.
Toroparu – Mining Plan
• PA base case economics – pre-royalty & pre-tax NPV5% 854 million, IRR 24.5%
Phase 1 Pit
•Ore 40 M tonnes • Strip Ratio 1.7:1 •Mine Life (y) 1-4
•Depth -252 m
•Au Prod/a 310k oz.1 •Cu Prod/a 29 M lb.1 •Drill & Blast 4 •60 t Shovels 2 •300 t Trucks 14 •Cost/t milled $14.92 •Net cost/oz. Au $3181
All (Phase 1-3) Pits
•Ore 140 M tonnes • Strip Ratio 4.4:1 •Mine Life (y) 1-13 •Depth - 492 m •Au Prod/a 273k oz. •Cu Prod/a 21 M lb. •Drill & Blast 6 •60 t Shovels 3 •300 t Trucks 28 •Cost/t milled $15.36 •Net cost/oz. Au $4241
Stockpile
•Ore 39 M tonnes • Strip Ratio n/a •Reclaim (y) 13-17 •Au Prod/a 70k oz. •Cu Prod/a 1 M lb. •60 t Shovels 1 •300 t Trucks 2 •Cost/t milled $8.05 •Net cost/oz. Au $6661
Life of Mine
•Ore 179 M tonnes • Strip Ratio 4.4:1 • LOM 17 yrs •Depth -492 m •Au Prod/a 225k oz. •Cu Prod/a 18 M lb. •Cost/t milled $13.78 •Net cost/oz. Au $4421
1 Net cost/oz Au is total annual operating cost net of copper by-product revenues divided by number of ounces of gold produced in the period before royalties and taxes.
• Higher Grade Resource Growth • Extends Phase 1 Pit Life • Replaces Late Life Au oz.
33
Process Flow Diagram
Fresh Rock 30,000 t/d
Saprolite Ore 3,000 t/d
Bedrock Milling
Fresh Rock Recoveries Rougher Floatation 90-93% Au, 95-97% Cu Final Concentrate 150 tld, 70-78% Au, 76-82% Cu Payable Metals 85% Au, 76% Cu
Metallurgical Recoveries | Payable Metals 150mm Grind
150 tld Cu concentrate 25% Cu & 4.4 oz./t Au
Saprolite Recoveries Leach Recovery 91% Payable Metals 91% Au
SAG Milling
Pump Box
Cyclones
Gravity Concentration
Ball Milling
Rougher Flotation
Crushing
Pebble Crusher
Screens
Pump Box
Cyclones
Ball Milling Washing Circuit
Screens
Regrinding
Leach Thickening
Tailings
1st Cleaner
2nd Cleaner Product Filtration
Copper-Gold Concentrate
Cyanidation
CIP
Carbon Elution
Detox
Saprolite Milling
Tailings Thickening
Gold Doré
Gold Doré
Leach Circuit Flotation Circuit
34
Management Bios
Rich A. Munson B.A., J.D., L.L.M. CEO, Director Mr. Munson is a co-founder and director of ETK Inc., the subsidiary acquired by Sandspring in 2009. Mr. Munson has served as an officer, director and General Counsel of Energy Fuels Corporation (EFC) since 1985. Prior to joining EFC, Mr. Munson was a resident partner of Aranow, Anderson, Beatty & Lee LLP, a law firm focusing on natural resources.
Abraham P. Drost M.Sc., P.Geo. President, Director Mr. Drost is a registered Professional Geoscientist (Ontario) with over twenty years experience in the Canadian mining industry. He holds a Masters degree in Mineral Exploration (1987) from Queen's University and brings success in mineral project discovery, finance and development as past-President of Sabina Silver Corporation.
P. Greg Barnes, B.Sc., MBA Executive VP, Director Mr. Barnes has been involved in the Toroparu Project for a number of years as a technical advisor and investor prior to completion of the Qualifying Transaction in November of 2009. Mr. Barnes has been involved in the natural resource sector for more than 20 years trading non-ferrous metals and concentrated ores and developing large scale projects in many countries. Mr. Barnes holds a B.Sc. in Geological Sciences from the University of Texas at Austin and a M.Sc. in Economics from the London School of Economics. Greg is also the CEO and President of Hunter Energy LLC.
L. Werner Claessens, B.Sc., P.Geo. VP Exploration Mr. Claessens has been exploring for gold in West Africa for more than 30 years. He has experienced considerable success as an explorationist of greenstone hosted gold deposits for several European Union funded regional exploration programs, including the discovery of several large gold finds such as Sadiola Hill and Morila in Mali, and the Samira Hill deposit in Niger. Werner holds a Degree in Geological and Mineralogical Sciences from the Catholic University of Leuven (KUL), Leuven, Belgium, and is a registered geologist with the European Federation of Geologists.
Dennis Kerstiens, B.Eng. Engineering Technical Coordinator Mr. Kerstiens has a degree in Metallurgical Engineering from the Colorado School of Mines and over thirty years experience as a senior manager in all phases of open pit mining. Dennis has a solid background in the administration, engineering, production, and maintenance of both large and small open pit mining operations with Kennecott Corporation and other mining companies.
Scott Issel, MBA Chief Financial Officer Mr. Issel completed a double major in Accounting and Finance from the University of Colorado and an MBA from the University of Notre Dame. Scott has previously served as an Investment Advisor with Merrill Lynch and as a portfolio manager with a private venture capital group in the United States. Mr. Issel joined Sandspring in May 2009 as the Controller of GoldHeart Investment Holdings Ltd., a subsidiary of Sandspring. He assisted in the reverse takeover transaction of Sandspring which served as the Company’s Qualifying Transaction for listing on the TSX Venture Exchange.
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Director Bios
John R. Adams, B.A., Chairman Mr. Adams is a co-founder and director of ETK Inc., the subsidiary acquired by Sandspring in 2009. John was the Chairman, President and a director of the privately held Energy Fuels Corporation, a diversified uranium and coal mining Company and employer of 450 people, which was based in Colorado, USA in the 1980s.
David Constable, BSc., MBA Mr. Constable is a professional geologist and has more than 40 years experience in mineral exploration, development and strategic investor relations throughout Canada and internationally. From 2002-10 he was Vice President Investor Relations for FNX Mining Company Inc. (FNX:TSX), retiring after the 2010 $3.5 billion merger with Quadra Mining Ltd. (QUA:TSX) to create QuadraFNX Mining Ltd. (QUX:TSX). David has a BSc (Hons.) from Mount Allison University in New Brunswick, an MBA (Hons.) from Sudbury’s Laurentian University and possesses an ICD.D designation from the Institute of Canadian Directors.
Brad L. Doores, B.A., J.D. Mr. Doores is VP and Assistant General Counsel for Barrick Gold Corp. He is a US attorney licensed in the state of Colorado with over 30 years of legal experience in the mining industry. During the course of his career, Mr. Doores has served as an officer, director and legal counsel for both private and public, and senior and junior, natural resources companies. Brad has a B.A. from Duke University (1972) and a J.D. from the University of Michigan School of Law (1975).
Gerald W. Grandey, B.Sc., J.D. Mr. Grandey is CEO and a Director of Cameco Corporation. His prior appointments include President of Energy Fuels Corporation, an American uranium and coal mining company. Jerry graduated from the Colorado School of Mines in 1968 with a degree in geophysical engineering and, after serving two years in the US military, received his law degree from Northwestern University in 1973.
Mark C. Maier, B. Comm., MBA, CFA Mr. Maier was employed by Merrill Lynch (London) as an Associate VP and also worked in Florida, USA as a Risk Manager for AVM L.P., a registered broker/dealer and service company to III Associates LP, a hedge fund advisor. Currently, Mr. Maier is the VP Corporate Development of Aurum Group, and investment manager for Alpha Vest Partners and Aurum Venture Partners.
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Potentially Mineable Resources and Expected Recoveries
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