St Andrew Goldfields Ltd.

Transcription

1 TSX: SAS OTCQX:STADF St Andrew Goldfields Ltd. An Evolving Junior Gold Producer in the Timmins Camp On The Radar (TMX Equicom) Calgary/Vancouver November 14-15,

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 forward-looking information. Specifically, this presentation contains forward-looking information including: the production, grade and throughput assumptions at the Holt, Holloway and Hislop Mines; 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 increase in the level of production through successful exploration and development; cash costs and start-up capital; the assumptions of the Taylor bulk sample, development and production assumptions, and the timing thereof; and the Company's ability to achieve its 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 that may cause actual results to vary material include, but are not limited 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; 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 Q3 Highlights Second Consecutive Quarter of Free Cash Flow SAS Simply Achieving Success Achieved Production Rate that will Sustain ~100,000 Ounces of Annual Production Large Land Position with Exploration Upside Experienced Team Dedicated to Achieving Success 3

4 US$699 US$701 US$ Highlights Steady Increase in Production and Decrease in Mine Cash Costs Increase in Revenues with Increase in Cash Margin Generating Free Cash Flow for Q2/2012 and Q3/2012 Advancing the Taylor Project through the Advanced Exploration Phase with Production anticipated in Q2/2014 Focussed Exploration Programs to Extend Mine Life and Increase Level of M&I Resources US$1,695/ounce US$1,620/ounce US$1,640/ounce Average Realized Price Per Ounce of Gold Sold 4

5 Land Position in the Timmins District Ontario/Québec Border Ghost Targets/ Zone 4 Hislop North 5

6 OUNCES 90, ,000 95, , , ,000 Increased Production Through Organic Growth 140, , ,000 80,000 60,000 40,000 20,000 0 Reducing Mine Cash Costs US$800-$ A A A E E E 6 The Holloway Mine commenced production in Q4/2009 The Hislop Mine commenced production in Q2/2010 The Holt Mine commenced production in Q2/2011 Production from Holt and Holloway will continue to increase in 2012 and 2013 Taylor is expected to commence production in

7 Q3/2012 Operating Results Overview Q1/2012 Q2/2012 Q3/2012 YTD Forecast Gold Production 21,018 23,016 25,742 69,677 90, ,000 Mine Cash Costs US$858 US$785 US$768 US$799 US$800-US$850 Royalty Costs US$138 US$134 US$127 US$134 US$135-US$145 (1) Cash Costs (2) US$996 US$919 US$895 US$933 US$935-US$995 Note (1) Assuming gold prices at current levels (2) Mine Cash Costs and Cash Costs (Per Ounce of Gold Sold) are non-gaap measures. Refer to 2012 Q3 Financial Report and MDA for full disclosure. 7

8 Not Available at This Time Not Available at This Time Not Available at This Time Q2/Q Cash Costs Among Peer Group Q2/2012 Total Cash Cost per ounce of gold sold Average Q3/2012 Cash Cost US$933/ounce* Q3/2012 Total Cash Cost per ounce of gold sold Royalty Costs per ounce of gold sold * The average Cash Cost quoted is based on the selected group of companies used for this comparative 8

9 2012 Share Price Performance SAS compared to a selection of peers (SAS, BRD, CRJ, SGR, LSG, RIC, KGI) 9

10 Comparison to Peer Group EV/Ounce of Reserves and Ounce of M&I Resources Company Name EV (C$Millions) Reserves (Moz s) EV/ Ounce (P&P) Resources (M&I) (Moz s) EV/ Ounce (M&I) Brigus Gold Corp. $ $ $113 Claude Resources Inc. $ $ $134 Kirkland Lake Gold $ $ $487 Lake Shore Gold Corp. $ $ $185 Richmont Mines $ $ $183 San Gold Corp. $ $1, $637 St Andrew Goldfields Ltd. $ $ $42 Group Median $ $ $127 * Source, company filings & website, EV based on Q2 financial results 10

11 Holt, Holloway and Hislop Mines HOLT MINE (Underground) Reserves 5.36 g/t Au 415,000 ounces) M&I Resources 5.86 g/t Au 1.1 million ounces) Production Rate ~1,000tpd 2012 Production ~50% of total production HOLLOWAY MINE (Underground) Reserves 4.29 g/t Au 31,000 ounces) M&I Resources 4.57 g/t Au 110,000 ounces) Production Rate ~700tpd 2012 Production ~25% of total production HISLOP MINE (Open Pit) Reserves 1.88 g/t Au 93,000 ounces) M&I Resources 1.95 g/t Au 359,000 ounces) Production Rate ~1,300tpd 2012 Production ~25% of total production 11

12 Taylor Project PFS Opportunities for Improvement Pre-tax Cash Flow Pre-tax NPV 5% Pre-tax IRR US$1,319 Per Ounce $20 Million $12 Million 22% US$1,600 Per Ounce $70 Million $50 Million 56% Mineral reserves of Au for 173,000 ounces with estimated 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. *Resources (M&I) West Porphyry & Shoot Zones /t Au (457,000 ounces) 12

13 180 Million Ounce Gold Belt 13

14 ~$ 8 Million 2012 Exploration Program Holt Mine GHOST ZONE Updated Resource Pending Zone 4 Extension Follow-up Drilling Expected from Underground Hislop Mine Hislop North Project Continued drilling along northern property boundary to test 147 Zone and Grey Fox extensions (ongoing) 14

15 HOLT Ghost Zone Location 15

16 Ghost Zone - Selected Results Intersection (Metres) (Metres) Gold Grade Hole Number From To True Width (g/t) GZ GZ12-006B GZ12-009B GZ GZ GZ GZ GZ GZ GZ12-017B GZ GZ * See press release dated May 7, 2012 and July 31,

17 HOLT Zone 4 *Reserves for Zone 4 Highlights of Underground Drilling 13.01/ 11.6m 11.30/ 13.5m 6.80/ 12.8m 10.20/ 12.5m 9.32/ 20.7m 7.34/ 18.1m 8.32/ 21.4m 11.28/ 12.8m g/t Au/metres All lengths are core length Drilling Targets from Surface 1,215, g/t Au (202,316 ounces) 925m Level 1075m Level Underground Drilling 17

18 Hislop North Project See press release dated July 31,

19 Hislop North - Selected Results Intersection (Metres) (Metres) Gold Grade Hole Number From To True Width (g/t) H incl incl H H incl incl H incl H incl * See press release dated May 7, 2012 and July 31,

20 Exploration Resulted in Significant Increases in Resources and Reserves Increase in M&I Mineral Resources by 11% since 2009 Measured & Indicated Resources ~3.2 Million Ounces Replaced all mined Mineral Reserves and added an additional 43,000 ounces Proven & Probable Reserves ~700,000 Ounces * Mineral Resources are inclusive of Mineral Reserves, see Company website for more details 20

21 Share Structure Shares Outstanding Stock Options Fully Diluted million 12.5 million million Market Capitalization ~170 Million Major Shareholders Abramson Family Trapeze Asset Management Sprott Asset Management * Share structure as of October 31, 2012, Market Cap as of November 8,

22 2012 Capital Expenditures 2012E Total Capex (in millions of C$) Holt Mine ~$17 Holloway Mine ~$10 Hislop Mine ~$ 2 Holt Mill ~$ 2 Taylor Project (less revenues from bulk sample) TOTAL ~$31 ~$ 6 22

23 Cash Flow and Cash Resources As of September 30, 2012 Cash and cash equivalents Revolving Credit Facility $20.7 million US$10.0 million (undrawn) Bank Debt* US$13.0 million *interest rates vary depending on the Company s total debt ratio and ranges between 2.00% and 2.75% above prime, based on prime rate advances, or 3.00% and 3.75% above LIBOR, based on LIBOR advances. *the Company must make semi-annual payments of US$2million to reduce the term credit owing. in September, SAS made its first semi-annual payment of US$2million on the term debt. Estimated Operating Cash Flow for 2012* ~$58 million *based on 95,000 ounces at cash costs of US$995/ounce, and an average annual POG of US$1,600 Nine Months Ended September 30, 2012 EPS (fully diluted) $0.04 CFPS (fully diluted) $

24 Experienced Team DIRECTORS Louis Gignac (Chairman) D. Eng David Michael Petroff B.MATH, MBA Herbert Abramson Catherine A. Gignac Jacques Perron P. Eng. John Hick B.A., LLB Graham Farquharson P. Eng. Warren Seyffert Q.C. SENIOR MANAGEMENT Jacques Perron P.Eng President and CEO Ben Au CFO and VP of Finance Duncan Middlemiss P.Eng COO and VP Operations Pierre Rocque P.Eng VP of Engineering Doug Cater P.Geo VP of Exploration 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 Mine (Barrick). Formerly Director of Technical Services with Lakeshore Gold Corp., and AMEC Americas Ltd. Formerly with Sabina Silver Corp and Dundee Precious Metals. 24

25 Q4 Goals and 2013 Objectives 25

26 APPENDIX 26

27 Holt Mine LONG SECTION LOOKING NORTH Zone Level *Reserves (Proven & Probable) 5.36 g/t Au (415,148 ounces) 925 Level 1075 Level Completed development Planned development Mined stopes *Reserves for Zone 4 1,215, g/t Au (202,316 ounces) 775 Level Zone 6 Upper 1075 Level 925 Level Zone 6 Lower * As at December 31, 2011 Exploration Potential future drilling 300 m 27

28 Holloway Mine LONG SECTION LOOKING NORTH 3000 Elev Lightning Zone Surface 550 Level Blacktop Drift Blacktop Exhaust Raise/ Backfill Blacktop Zone 3000 Elev Completed development Planned development Mined stopes 867m, shaft bottom 1km Smoke Deep Zone Smoke Deep Zone Backfill raise Ventilation raise *Reserves (Proven & Probable) 4.29 g/t Au (30,800 ounces) Decline Ramp 780m Level * As at December 31, 2011 Exploration Potential future drilling 28

29 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 Re-optimizing Pit Design Mined-out West Pit Reserves (included in total reserves) g/t = 30,700 oz To be mined Historic underground workings East Pit Reserves (included in total reserves) g/t = 61,831 oz LOM Strip Ratio 4.8 : 1 waste : ore * As at December 31,

30 Taylor Project - Timeline WPZ Advanced Exploration Pre-feasibility Study Dewatering and Rehabilitation Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q4/2013 Q2/2014 COMPLETED COMPLETED Initial Bulk Sampling Program (top of zone) Ramp Development to depth of known zone Second Bulk Sampling Program (bottom of zone) Commercial Production 30

31 Mineral Resources - December 31, 2011 Measured Indicated Inferred Tonnes ( 000) Grade (g/t Au) Ounces Au ( 000 oz) Tonnes ( 000) Grade (g/t Au) Ounces Au ( 000 oz) Tonnes ( 000) Grade (g/t Au) Ounces Au ( 000 oz) Holt Mine 2, , , Holloway Mine , Hislop Mine , , Taylor Project , , Aquarius Project , , Clavos Project At December 31, , , ,570 12, ,360 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. 31

32 Mineral Reserves December 31, 2011 Proven Probable Proven & Probable Tonnes ( 000) Grade (g/t Au) Ounces Au ( 000 oz) Tonnes ( 000) Grade (g/t Au) Ounces Au ( 000 oz) Tonnes ( 000) Grade (g/t Au) Ounces 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$1,100 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. 32

33 HOLT- Ghost Zone Drilling See press release dated July 31,

34 TSX: SAS OTCQX: STADF 20 Adelaide Street East Suite 1500 Toronto ON M5C 2T6 Canada Toll Free: Tel: Fax: