Forward Looking Statement

Transcription

1 Growth Growth Through Through Acquisition, Acquisition, Exploration Exploration and and Development Development CORPORATE CORPORATE PRESENTATION PRESENTATION November June

2 Forward Looking Statement This presentation includes forward looking information. While we believe the anticipated results, performance or achievements expressed or implied by the forward looking information are based on reasonable assumptions and expectations, you should not place undue reliance on them as they involve unknown and known risks, uncertainties and other factors which may cause the actual results of the Company to differ materially from those anticipated. You should review our documents filed with the securities authorities in Canada, including our AIF under the heading Description of the Business Risk Factors. These documents describe the material factors and assumptions that were applied in drawing the conclusions and making the forecasts and projections reflected in the forward looking information and the material factors that could cause our actual results to differ materially. We undertake no obligation to update or revise any forward looking statements or information made in this presentation. 2

3 Company Overview An advanced stage gold copper open pit project in Mexico with strong economics and significant exploration upside. TEPAL GOLD COPPER PROJECT, MEXICO New Resource in March 2012 Prefeasibility in 3 rd Quarter Drilling New Targets in 3 rd Quarter Bankable Feasibility work in 3 rd & 4 th Quarter Production Targeted for

4 Share Structure Shares Outstanding M Options 11.6 M Warrants Nil Debt Nil Fully Diluted M Cash & Receivables (March 31, 2012) CDN $7.7 M Fully Diluted Market Cap CDN $36 M 20 Day Average Share Price $ Day Average Volume 346,947 Insider Holdings 5% 4

5 Board of Directors & Advisors Graham Thody, CA Chairman, Director Dunham Craig, B.Sc., P.Geo. President, CEO, Director Randy Smallwood, B.Sc., P.Eng Director George Brack, B.Sc., MBA, CFA Director Mauricio Candiani, MBA Director Eduardo Luna, MBA Advisor to the Board Robert Willis, P.Eng. Advisor to the Board 25 years industry experience. Currently serves as President & CEO of UEX Corporation, Director of Baja Mining. 20 years industry experience; discovery through development & production. Cominco, Wheaton River (VP Corp Dev.), Glencairn (VP Corp Dev.) Development of 2 operating mines through BFS and production. President & CEO of Silver Wheaton Corp. 20 years experience, with specific experience in mine development and operations. Goldcorp, TeckCominco, Homestake, Westmin Resources, Wheaton River Minerals. 25 years experience investment banking, corporate development, M&A. Prior President of Macquarie North America, Managing Director Mining Group Scotia Capital. President & CEO of Candiani Mining, previous Federal Congressman in Mexico. Extensive background in Latin American divesture deals, equity and M&A transactions. Previous Advisor to Southern Copper, Endeavour Silver, La Camera, and Mitsui. Executive Vice President & President, Mexico of Primero Mining. Prior President Goldcorp Mexico, Prior President Luismin Mining Mexico. Chairman & CEO, San Marcos Mining, Past Director, President, and Chairman, Geologix, Prior President and CEO of Manhattan Minerals Corp., Prior President and CEO of Pioneer Metals Corp. 5

6 Key Management Siegfried (Sig) Weidner, B.Sc. VP Exploration Faysal Rodriguez, M.Sc., L. Eng Manager, Mexico Jeffrey R. Wilson VP Corporate Communications Evelyn Abbott, B.Sc., CMA. CFO & Corporate Secretary 25 years experience, including 18 years at Rio Algom/Billiton/BHP Billiton with extensive experience throughout the Americas. Lead the team responsible for the discovery of BHP s Spence Porphyry Copper deposit in Chile and awarded PDAC Prospector of the Year award in Previous BHP Exploration Manager, North America & Europe. 15 years in the mining industry. A Mexican national. Responsible for permitting Glamis Gold s El Sauzal Project (Mexico), and Agnico Eagle s, Pinos Altos Project (Mexico). Strong background in Mexican project permitting, mining and community relations. 18 years in the mining and mining investment industries. Extensive buy side and sell side contacts through North America and Europe Previously acted as an independent investor relations consultant to several mineral exploration companies including Silver Quest Resources. Previous Director of Aquiline Resources Ltd. and Welcome Opportunities Ltd. (now Endeavour Mining Corporation) 15 years of finance and accounting experience Previous Director of Finance for Tibbett & Britten North America (a multinational public logistics company), with financial responsibility for eight subsidiaries and over $350 million in annual revenue. Previous Director of Finance for B.C. Research Inc. and Vizon Scitec Inc. 6

7 Share Price Performance & Milestones Drilling Extends South Zone at Depth Tizate Expansion Drill Results Drilling Discovers Highgrade at Depth Property wide Airborne Completed Geophysics Identifies 7 New Targets Tepal 2012 Resource Estimate Announced 7

8 Company Asset Overview Primary Focus: Mexico TEPAL GOLD COPPER PROJECT Upcoming Prefeasibility March, 2012 Tepal Resource: Secondary Peru: La Joya: Au, Cu, Zn, Pb (JV with Glencore) Nevada: RO: Au, Ag Joint Ventured Silver Cloud: Au Ag (available for option) Category Tonnes (M) Gold g/t Copper % Gold Oz. (M) Copper lbs (M) Au Oz. Equiv* (M) Measured Indicated M&I Inferred The in situ resource stated in the table conforms to CIM guidelines for reasonable potential for economic extraction and is not to be confused as reserves. Resource numbers above are rounded to nearest 100,000 tonnes, 1,000 oz. Au, 1,000,000 lbs. Cu and 1,000 oz. AuEq. AuEq = gold equivalent and is calculated using gold and copper only using $1000 Au, $2.75 Cu metal prices (AuEq = (lbs. Cu *$2.75/$1000) + Au oz.). All dollar values stated are $USD. 8

9 Comparable Operating Mines to Tepal 9

10 Comparable Recoverable Values 10

11 Imperial Metals vs. Tepal Pro Forma 11

12 TEPAL PROJECT / MICHOÁCAN, / MICHOACAN, MEXICO Project Location Map 12

13 This image cannot currently be displayed. This image cannot currently be displayed. TEPAL PROJECT / MICHOÁCAN, MEXICO Local Infrastructure Town of Tepalcatepec Town population of 16,000 Well educated workforce Large percentage of people work away from home 14 kilometres from site Power 50 megawatts available today 14 kilometres from site Land Topography is a natural for construction Surface land is privately owned Ranch land no churches or buildings No archaeological sites or protected areas 13

14 TEPAL PROJECT / MICHOÁCAN, MEXICO Metallurgy Ore Processing: Oxide ~10% of total ore Heap Leach: 77.3 % gold recovery Standard industry process simple & well known Sulphide ~90% of total ore Flotation circuit: recovery 86.6% Cu, 62.8% Au Concentrate sold in Mexico or Pac Rim Smelters Coarse grind size: energy efficient Concentrate is very clean and in demand Concentrate grade is 26% Cu and 28 g/t Au Standard industry process simple & well known 14

15 TEPAL PROJECT / MICHOÁCAN, MICHOACÁN, MEXICO MEXICO 2012 Resource: Measured, Indicated and Inferred Long Section: North & South Zones South Zone Higher Grade Open at Depth Long Section: Tizate Zone Remains Open in multiple directions 15

16 TEPAL PROJECT / MICHOÁCAN, MICHOACÁN, MEXICO MEXICO PEA Site Layout Layout conceptual not a final engineered drawing 16

17 TEPAL PROJECT / MICHOÁCAN, MEXICO 2011 PEA Summary (SRK Consulting Canada Ltd.) 2011 PEA Highlights Base Case ($1000 Au, $2.75 Cu, $16 Ag) $749 M net positive earnings EBITDA M ounces gold equivalent 2 in mine plan 1.14 to 1.0 Strip Ratio life of mine ( LOM ) $478 per ounce gold equivalent on a co product basis $312 M Capital Cost 18.1 year mine life 4.1 years to payback 96% of current resource converts to PEA mine plan 1 EBITDA: earnings before interest, taxes & depreciation allowance 2 Gold equivalent used in this presentation is estimated using 2011 PA Base Case of $1000/oz. Au, $16/oz. Silver and $2.75 Cu metal prices: (Ag oz.* $16)/$1000 = gold oz., (Cu lbs* $2.75)/$1000 = gold oz. It must be noted that the ounces gold equivalent does not represent actual ounces of gold in the mine plan, but rather their calculated equivalent value. 17

18 TEPAL PROJECT / MICHOÁCAN, MEXICO Tepal Project Low Operating Costs (estimated) Current Industry Standards for Operating Costs Gold Producers: Total Cash Costs* Ranking 2010E Senior Producer Avg. $553 Intermediate Producer Avg. $542 Junior Producer Avg. $702 *Source: BMO Capital Markets, Bloomberg January 2011 Tepal Project Operating Costs Well Below Average 2011 Base Case Average Operating Cost on a Co Product Basis OPEX per Au equivalent $/oz. Eq. Au payable (2.4 M oz.) $ Base Case Average Cash Cost on a By Product Basis OPEX Cash Cost Au/oz. $/oz. Eq. Au payable (977,000 oz.) $303 18

19 TEPAL PROJECT / MICHOÁCAN, MEXICO Tepal Payable Production (& Pro forma) Timeline Payback 19

20 TEPAL PROJECT / MICHOÁCAN, MEXICO Tepal Mining Pit Cash Flow 20

21 TEPAL PROJECT / MICHOÁCAN, MEXICO Project 2011 NPV & Value Metal Price Sensitivity Tepal PEA ($ Millions) Base Case $1,000 Au $16 Ag $2.75 Cu Mid Range $1,200 Au $19.50 Ag $3.00 Cu Spot $1,770 Au $35 Ag $3.80 Cu Project NPV (0% Discount Rate) Project NPV (5% Discount Rate) $749 M $412 M $1,072 M $625 M $2,049 M $1,267 M Project IRR 22% 30% 48% Discounted $NPV vs Fully Diluted Shares Discounted (5%) $NPV / GIX Shares (FD) $2.83/share $4.30/share $8.73/share 21

22 TEPAL PROJECT / MICHOÁCAN, MICHOACÁN, MEXICO MEXICO Upside & Ongoing Exploration Claim/Property Map: 172 sq. km 160 sq. km remains untested Exploration: Airborne Sampling Mapping Geochemistry Target Delineation Drilling 22

23 TEPAL PROJECT / MICHOÁCAN, MICHOACÁN, MEXICO MEXICO Reduced to Pole Magnetic Intensity 2012 Geophysical Results: 7 new targets identified 3 priority targets with coincidental gold, copper, silver, and molybdenum in geochemical or drilling results Multiple anomalies located within the same structural corridor as the North, South, and Tizate zones Follow up evaluation being conducted over several targets to delineate priorities for a follow up drill program 23

24 TEPAL PROJECT / MICHOÁCAN, MEXICO Time Lines & Milestones TEPAL DEVELOPMENT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Tepal Exploration Tepal Prefeasibility Tepal Permitting Tepal Feasibility & Financing Tepal Construction TEPAL PRODUCTION Tepal Oxide Heap Leach Tepal Sulphide 2011 PEA dual production impacts IRR and capital payback 2012 PFS guidance indicates extension of dual production 24

25 TEPAL PROJECT / MICHOÁCAN, MEXICO Possible Project Financing KEY FACTORS FOR FAVOURABLE POSSIBLE PROJECT FINANCING Low Capex $312M Low Opex $478/oz AuEq High IRR 22% Fast Payback 4.1 years MULTIPLE FINANCING OPTIONS Smelters Desirable Blending Concentrate Metal Traders Off take Agreements Banks Desirable Metals, Production Levels, & Jurisdiction 25

26 TEPAL PROJECT / MICHOÁCAN, MEXICO Project Strategy Utilize Management Expertise to Advance Project Keep the Plan Simple! Pre feasibility Programs Underway Complete Sampling of 7 New Geophysical Targets Spring 2012 Drill New Geophysical Targets Summer 2012 Advance BFS Toward Production Target

27 Research Analyst Coverage 27

28 Closing Advanced Stage Mineral Assets Mexico Focus Aggressive Growth Strategy Proven Management Team Strong Project Fundamentals GEOLOGIX EXPLORATIONS INC. 595 Burrard Street PO Box Three Bentall Centre Vancouver, BC Canada V7X 1K8 Tel: Dunham Craig President & CEO Jeffrey R. Wilson VP Corporate Communications 28