St Andrew Goldfields Ltd. A Junior Producer in the Timmins Camp

Transcription

1 St Andrew Goldfields Ltd. A Junior Producer in the Timmins Camp 1

2 Forward-looking Information This presentation contains forward-looking information and forward-looking statements (collectively, "forward-looking information") as defined under applicable securities laws, concerning SAS business, operations, financial performance, condition and prospects, as well as management s objectives, strategies, beliefs and intentions. This presentation uses words such as estimate, intend, believe, expect, anticipate, plan, potential and similar terminology to identify forwardlooking information. Specifically, this presentation contains forward-looking information including: the production assumptions at the Holt, Holloway and Hilsop Mine s; the continued development and production of the Smoke Deep Zone, including completion of the exploration drift and commencement of exploration drilling, and the timing thereof; the completion of various exploration drilling programs to be completed by the Company in 2012; as well as the expansion of mineral resources, mineral reserves and levels of production through successful exploration and development; cash costs and start-up capital; the assumptions of the Taylor pre-feasibility study; and the Company's ability to achieve 2012 objectives. Forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors thatt may cause actual results to vary material include, but are not limitedit to, inaccurate assumptions concerning the exploration for and development of mineral deposits, including relating to the interpretation of the geology, continuity, grade and estimates of reserves and resources; the adequacy of existing financing or the delay or inability to raise additional financing on satisfactory terms; fluctuations in gold prices and currency exchange rates; unanticipated operational or technical difficulties; changes in laws or regulations; changes in general economic conditions and changes in conditions in the financial markets; the Company s dependence on key employees; the Company s ability to compete with other mining companies possessing greater financial resources; the Company s ability to obtain requisite permits and licenses; risks arising from challenges to the Company s title to its assets, including those arising in respect of aboriginal rights; the potential for conflicts of interest to arise. A description of these risks and uncertainties can be found in the Company s Annual Information Form obtained on SEDAR at SAS disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. The securities of the Company have not been and will not be registered under the United States Securities Act of 1933 (the US Securities Act ), as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available. 2

3 About SAS Junior Gold Producer in the Timmins Camp with three operating mines Targeting 90, ,000 ounces of Annualized Gold Production in 2012 Cash Costs US $800-$850/oz $850/oz* Organic Growth through Taylor with near-term production Sound Exploration Model used to Discover Smoke Deep and Deep Thunder zones 120km of Exploration Potential in the heart of the Abitibi Greenstone Belt * Cash costs cited are before royalties 3

4 Land Position in the Timmins District i t Garrison Creek Project Deep Thunder / Ghost Targets Hislop North Smoke Deep Zone 4

5 Share Structure Shares Outstanding Stock Options Fully Diluted million 9.8 million million Major Shareholders Abramson Family (40%) Trapeze Asset Management (15%) Sprott Securities (~9%) 5

6 2012 Production Guidance Gold Production 90, ,000 ounces Cash Costs/Ounce* (US$) US$ /ounce850/ ~ 50% ~ 30% ~ 20% HOLT * Cash costs/ounce are before royalties HOLLOWAY HISLOP 6

7 Solid Improvement Quarter over Quarter Q3/2011 Q4/ Annualized Forecast Gold Production 20,018 22,350 90, ,000 Mine Cash Costs US$990 US$772 US$800 - $850 Royalty y Costs US$140 US$137 US$140-US$145 $ (1) Total Cash Costs US$1,130 US$909 US$940 US$995 Note (1) Assuming gold prices stay at current levels (2) Total Cash Cost Per Ounce of Gold Sold is a non-gaap measure. Refer to 2011 Q4 and Year End Financial Report and MDA for full disclosure. 7

8 Holt Mine - LONG SECTION LOOKING NORTH Zone 4 *Reserves for Zone 4 1,215, g/t Au (202,316 ounces) 775 Level 925 Level Surface Current Developme nt 1075 Level 450 Level *Reserves (Proven & Probable) 5.36 g/t Au (415,148 ounces) 775 Level e Zone 6 Upper *Inferred Resources 5.75 g/t Au (894,131ounces) Zone 4 Zone Level 1075 Levelel C103 Zone 6 Lower * As at December 31, 2011 Shaft Zone 6B 8

9 Holloway Mine LONG SECTION LOOKING NORTH 3000 Elev Surface Lightning Zone 867m, shaft bottom 1km 550 Level Blacktop Drift Smoke Deep Zone Blacktop Exhaust Raise/ Backfill Blacktop Zone 3000 Elev 550m Level Drift *Reserves (Proven & Probable) 4.29 g/t Au (30,800 ounces) *Resources (Inferred) 5.17 g /t Au (78,000 ounces) Ventilation raise Decline Ramp 780m Level * Smoke Deep Resources and Reserves as at December 31, 2011 Smoke Deep Zone 9

10 Hislop Mine - LONG SECTION LOOKING NORTH 1.5km *Reserves (Proven & Probable) 1.5 M 1.88 g/t Au (92,587 ounces) *On surface ore stockpile 37, g/t Au (1,692) mined out overburden removed Optimized Pit Design Existing Workings West Pit Reserves (included in total reserves) g/t = 30,700 oz East Pit Reserves Potential Crown Pillar Recovery from Underground *Inferred Resources 5.3 M 1.80 g/t Au (309,000 ounces) (included in total reserves) g/t = 61,831 oz LOM Strip Ratio 4.8 : 1 waste : ore * As at December 31,

11 Taylor Project Shoot Zone Existing Development Shaft 200m Zone West Porphyry y Zone 11

12 Taylor PFS Opportunities for Improvement Pre-tax Cash Flow Pre-tax NPV 5% US$1,319 Per Ounce $20 Million $12 Million US$1,600 Per Ounce $70 Million $50 Million Pre-tax IRR 22% 56% Mineral reserves of 173,000 ounces with estimated t annual production of 41,000 ounces over the mine life. A conservative analysis was used for the estimation of the resources and the conversion of resources to reserves. As the project advances underground, re- interpretation may lead to better grade, additional resources, and additional reserves. This study only looks at the WPZ; additional upside is possible with further exploration and additional work on the Shoot Zone. 12

13 2012 Exploration Program 2012 Budget of ~$7 Million Holloway-Hot Mine Areas: Smoke Deep Zone (H2) Blacktop East Zone (H2) Deep Thunder Zone (H2) Ghost Zone (resumed drilling) Lightning Vein (H1) Hislop Mine Area Hislop North Project (resumed drilling) 13

14 2011 Exploration Resulted in Significant ifi Increases in Resources and Reserves Increase in Mineral Resources by 57% over 2011 Replaced all mined Mineral Reserves and added an additional 43,000 ounces 14

15 Mineral Resources - December 31, 2011 Measured Indicated Inferred Ounces Ounces Ounces Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au ( 000) (g/t Au) ( 000 oz) ( 000) (g/t Au) ( 000 oz) ( 000) (g/t Au) ( 000 oz) Holt Mine 2, , , Holloway Mine , Hislop Mine , , Taylor Project , , Aquarius Project , , Clavos Project At December 31, , , ,570 16, ,069 At December 31, , , ,392 9, ,106 Notes: Mineral Resources are inclusive of Mineral Reserves; Mineral Resources were estimated according to CIM Definition Standards For Mineral Resources 2010; Mineral Resources for Holloway and Holt were estimated using an average long-term gold price of US$1,200 per ounce and an exchange rate of $1.00 = US$0.98; Mineral Resources for Holloway and Holt were estimated at a cut-off grade of 3.0 g/t Au; Mineral Resources for Hislop were estimated at a cut-off grade of 0.94 g/t Au, and uses an average long-term gold price of US$950 per ounce and an exchange rate of $1.00 = US$0.85; There was an ore stockpile consisting of approximately 37,000 t grading 1.40 g/t Au from Hislop at December 31, 2011; Mineral Resources for Taylor were estimated using a cut off grade of 2.5 g/t Au, and uses an average long-term gold price of US$1,200 per ounce using an exchange rate of $1.00 = US$0.98 Mineral Resources for Aquarius are as of the October 2, 2006, RPA Technical Report. Mineral Resources were calculated using a long term gold price of US$500 per ounce and an exchange rate of $1.00 = US$0.90. No cut-off grade is applied because of uncertainty about selectivity within the deposit; Mineral Resources for Clavos are as of the October 2, 2006, RPA Technical Report. Mineral Resources were estimated at a cut-off grade of 4.0 g/t Au, using a long-term gold price of US$500 per ounce. Mineral Resources for the Clavos Project do not reflect development activities in the mineralized areas from October 2006 until May 2007; The Clavos Project was optioned to Sage Gold Inc. in 2010 whereby Sage Gold Inc. can earn-in a 60% interest in the property by completing $3.0 million of exploration and paying approximately $260,000 (in cash and shares) to SAS over a three year period; Tonnes and gold ounce information is rounded to the nearest thousands as such, rows and columns may not add exactly due to rounding. 15

16 Mineral Reserves December 31, 2011 Proven Probable Proven & Probable Ounces Ounces Ounces Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au ( 000) (g/t Au) ( 000 oz) ( 000) (g/t Au) ( 000 oz) ( 000) (g/t Au) ( 000 oz) Holt Mine , , Holloway Mine Hislop Mine , , Taylor Project At December 31, , , , At December 31, , , Notes: Mineral Reserves are included within the Mineral Resources; Mineral Reserves were estimated according to CIM Definition Standards For Mineral Reserves 2010; Mineral Reserves for Holloway Holt and Hislop were estimated using an average long-term gold price of US$1, per ounce and an exchange rate of $1.00 = US$0.98; Mineral Reserves for Holloway and Holt were estimated using a cut-off grade of 3.5 g/t Au; Mineral Reserves for Hislop were estimated using a cut-off grade of 1.7 g/t Au; There was an ore stockpile consisting of approximately 37,000 t grading 1.40 g/t Au from Hislop at December 31, 2011; Mineral Reserves for Taylor were estimated using a cut off grade of 3.5 g/t Au, an average long-term gold price of US$1,319 per ounce and an exchange rate of $1.00 = US$0.99 Tonnes and gold ounce information is rounded to the nearest thousands as such, rows and columns may not add exactly due to rounding. 16

17 2012 Goals Continue with ramp up of production rates at the Holt Mine s Zone 4 to the steady state rate of 1,000 tpd expected at Q2/2012; Start to prepare Zone 6 in H2/2012, for production in 2013; Ramp up of production rates at the Holloway Mine s Smoke Deep Zone throughout 2012; Assess plans for advancement of the Taylor Project for future production; Push on exploration programs at the Holloway-Holt and Hislop properties: o Smoke Deep Zone exploration drilling Q3/2012 o Deep Thunder step-out drilling H2/2012 o Ghost Zone surface drilling resume Q1/2012 o Lightning Vein commence surface drilling H2/2012 o Hislop North surface drilling resumed Q1/

18 Highlights M M M&I and Inferred Resources SAS Simply Achieving Success Mineral Reserves With a good history of resource to reserve conversion Organic Growth with Actively Evaluating Advancement of the Accretive M&A Taylor Project Opportunities 18

19 Experienced Management Team DIRECTORS Louis Gignac (Chairman) D. Eng Graham Farquharson P. Eng, MBA Bernard Kraft CA, I.F.A Herbert Abramson Catherine A. Gignac Jacques Perron P. Eng Stephen Burns CA Paul C. Jones P. Eng Warren Seyffert Q.C. MANAGEMENT Jacques Perron P.Eng President and CEO Ben Au Chief Financial Officer Duncan Middlemiss P.Eng VP Operations Pierre Rocque P.Eng Director of Engineering Craig Todd P.Geo Exploration Manager Formerly Senior VP, Operations with IAMGOLD and Cambior. Formerly Controller with Agnico-Eagle Mines. Formerly Mine Manager with Kirkland Lake Gold and Chief Mine Engineer for Holt-McDermott tt Mine (Barrick). Formerly Director of Technical Services with Lakeshore Gold Corp., and AMEC Americas Ltd., before that. Spent 16 years at Holt-McDermott Mine (Barrick) as Senior and Chief Geologist. 19

20 TSX: SAS 20 Adelaide Street East Suite 801 Toronto ON M5C 2T6 Canada Toll Free: Tel: Fax: