Diggers & Dealers Forum

Transcription

1 Diggers & Dealers Forum David Quinlivan, President & CEO 8 August 2012 TSX: ASR / ASX: AQG 1

2 Cautionary Statements FORWARD LOOKING STATEMENTS Except for statements of historical fact relating to Alacer Gold Corp. ( Alacer or the Company ), certain statements contained in this presentation constitute forwardlooking information, future oriented financial information, or financial outlooks (collectively "forward looking information") within the meaning of Canadian securities laws. Forward looking information may be contained in this presentation and Alacer's public filings. Forward looking information often relates to Alacer's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", could, "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", projects, "predict", "potential", "targeted", "possible", "continue", "objective" or other similar expressions concerning matters that are not historical facts. Forward looking information includes statements relating to commodity prices, access to sufficient capital resources, mineral resources, mineral reserves, realization of mineral reserves and recoveries, existence or realization of mineral resource estimates, results of operations, results of exploration activities, the timing and amount of future production and sales, the timing of cash flows, capital and operating expenditures, the timing of receipt and maintaining permits, rights and authorizations, communications with local stakeholders and community relations, employee relations, settlement of disputes, status of negotiations of joint ventures, availability of financing and any and all other timing, development, operational, financial, economic, legal, regulatory and political factors that may influence future events or conditions. Such forward looking statements tt t are based on a number of material factors and assumptions, which h Alacer bli believes are reasonable, including, but not limitedit in any manner, those to disclosed in any other of Alacer s public filings, and include the ultimate determination of mineral reserves, the accuracy of mineral reserves, the accuracy of the estimated future mine life of its operations, risks of not meeting production and cost targets, mining operational and development risk, changes in project parameters as plans continue to be refined, availability, final receipt of and maintaining required approvals, licenses and permits, ability to acquire necessary surface rights, sufficient working capital to develop and operate the mines, access to adequate services and supplies, economic conditions, commodity prices, foreign currency exchange rates, interest rates, access to capital and debt markets and associated cost of funds, availability of a qualified work force, positive employee relations, lack of social opposition and legal challenges, ability to settle disputes, the ultimate ability to mine, process and sell mineral products on economically favorable terms, interpretation of accounting policies and potential amendments to the financial statements resulting from the audit process. Actual results may vary from such forward looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Alacer filings at Forward looking statements are based upon management s beliefs, estimate and opinions on the date the statements are made and, other than as required by law, Alacer does not intend, and undertakes no obligation to update any forward looking information to reflect, among other things, new information or future events. The resource and reserve disclosure in this report has been compiled and approved by the following employees of Alacer: Mr. Chris Newman, BSc (Hons), MAusIMM, MAIG, Executive Vice President, Exploration, in regards to exploration results and Mineral Resources; Mr. Paul Thompson, BSc(Hons), MSc, FAusIMM, Vice President, Technical Services, in regards to Mineral Reserves except for Çöpler Oxide and Sulfide; and Mr Sam Shoemaker,B.Sc, MAusIMM,Registered Member SME,in regards to Mineral Reserves for Çöpler, excluding stockpiles. Mr. Newman, Mr. Thompson and Mr. Shoemaker have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity i which h is being undertaken to qualify asa Competent Person as defined d in the 2004 Editioni of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and a Qualified Person pursuant to NI They consent to the inclusion in this report of the matters based on this information in the form and context in which it appears. This presentation does not represent a solicitation or offer to sell securities. Note: All dollars in this presentation are US$ unless noted otherwise TSX: ASR / ASX: AQG 2

3 Strong Investment Case 2012 Gold Production 400,000, ounces attributable Çöpler Strongoperating operating cash flow Low cost operation Resource upside Sulfide expansion provides growth Regional exploration potential Corporate Managing asset portfolio Strong bl balance sheet Driving efficiencies across operations South Kalgoorlie Underexplored district Commitment to exploration Large land package Higginsville Chalice ramping up Drillingto add high grade grade ounces TSX: ASR / ASX: AQG 3

4 Capital Structure Market Cap ~$1.8 billion Shares on issue 288M Fully diluted 292M Turnover ~1.2M shares/day Cash $329M at 31 March 2012 Debt $73M at 31 March 2012 Convertible debenture matured April 2012 Key Shareholder Pala Investments Trident Underground Mine Alacer Gold is a growing gold company focused on Australia and Turkey TSX: ASR / ASX: AQG 4

5 Alacer s Quarterly Gold Production* Q2 2012: Gold production totalled 106,226 ounces Çöpler rebounded from severe winter in Q1 Higginsville & SKO provided 52% of total production * Production as shown includes Alacer s 49% share of Frog s Legs and 100% of Çöpler. Attributable production would be reduced by 5% of Çöpler production for 2011 and 20% of Çöpler production for Production for Q includes Australian operations prior to the Merger on February 18, 2011 and Çöpler operations prior to commencement of commercial production on April 1, TSX: ASR / ASX: AQG 5

6 Guidance for 2012 Operation Gold Cash Total Production Operating Costs Cash Costs ( 000 ounces) 1 ($/oz) 2 ($/oz) 2 Çöpler 195 to to to 390 Higginsville 150 to to 850 1,010 0to 1,050 SKO Frog s Leg 3 50 to to to 830 SKO Other 40 to 42 1,060 to 1,100 1,100 to 1,140 Total 435 to to to 735 Total Attributable 396 to to to 770 Funding growth projects during 2012 with: Total capital expenditure = $194M (Attributable: $179M) Total exploration expenditure = $58M (Attributable: $49M) 1 Updated 2012 production guidance provided on May 15, Cash Operating Costs and Total Cash Costs are non IFRS financial performance measures with no standardized definitions under IFRS. For further information and detailed reconciliations, please see the Non IFRS Measures section in the Management s Discussion & Analysis for Q Key financial assumptions underlying Alacer s 2012 guidance are gold price = $1,636/ounce, A$:US$ = 1.00, US$:TRY = TSX: ASR / ASX: AQG 6 South Kalgoorlie Operations include Alacer Gold s 49% share of gold from the Frog s Leg Mine.

7 Resources and Reserves Total attributable P+P Reserves = 5.3Moz Total attributable M+I Resources = 10.5Moz Total attributable Inferred Resources = 3.4Moz Substantial exploration program to increase and upgrade resources Note: Resources are quoted after mining depletion and are inclusive of reserves. SKO includes Alacer s 49% share of Frog s Leg Mine. Source for Resources and Reserves : 2011 Annual Report. TSX: ASR / ASX: AQG 7

8 Çöpler Operations Marble Pit Mn Pit Old Çöpler Village Heap Leach Pad #1 Crusher TSX: ASR / ASX: AQG 8

9 Çöpler Sulfide Project March 2011 Çöpler Sulfide Pre Feasibility Study 1 outcomes: LOM production increased 182% to 3.7Moz 37Moz Sulfide project initial capex = $410M Generates 25% IRR at gold price =$1,038/oz Life of mine total cash costs 2 on a by product basis = $430/oz Çöpler SulfideFullFeasibility Feasibility Studyupdate: update: Expected to be completed late 2012 Completed several months of pilot plant testwork Evaluating various autoclave options Evaluating potential for larger a plant New Çöpler Mineral Reserve to be estimated in conjunction with the Sulfide Feasibility Study All production numbers are on 100% basis. 1 All numbers sourced from Çöpler Pre-Feasibility Study Technical Report, released Mar 27, All currency in third quarter 2010 US$, 2 Total cash costs per ounce figure is a non IFRS financial performance measure with no standardized definitions under IFRS. For further information and detailed reconciliations, please see the Non-IFRS Measures section in the Management s Discussion & Analysis. TSX: ASR / ASX: AQG 9

10 Çöpler Resource Current drilling in old Çöpler village area Çöpler Resource estimate released in February 2012: M+I Resource increased from 6.4M to 7.3M contained gold ounces, 148.9Mt at 1.53g/t (after mining depletion) M+I resource increased 6% for tonnes, 12% for gold grade and 18% for contained gold from previous resource of Feb 2010 Another Çöpler Resource estimate planned to be released in Q3 2012: To include 59km of drilling from September 2011 to June 2012 To form basis for new Çöpler Reserve being completed in conjunction with the Sulfide Feasibility Study Notes: Resources are quoted after mining depletion and are inclusive of reserves. Resources are shown on a 100% basis, of which Alacer Gold owns 80%. TSX: ASR / ASX: AQG 10

11 Çöpler Drilling Extending Resource Resource update to include results of drilling since September Çöpler village extensions over 500m strike Continuity between Main and Manganese Zones Additional shallow oxide gold to the west Main Zone sulfide depth extensions Note: This long section summarizes the block model used for the February 2012 Çöpler Resource and the planned pit boundaries in the March 2011 Çöpler Sulfide Pre-Feasibility Study. Plan view showing the location of the new Çöpler resource block model in relation to recent drill holes which are not included in the new resource. The blocks shown are from surface to 10m below surface TSX: ASR / ASX: AQG 11

12 Çöpler Drilling Extending Resource Resource update to include results of drilling since September Thick gold mineralization in all holes Additional shallow oxide gold Depth extensions under Main Zone Depth continuity bi being confirmed Long section through 3 km-long ore zone Note: This long section summarizes the block model used for the February 2012 Çöpler Resource and the planned pit boundaries in the March 2011 Çöpler Sulfide Pre-Feasibility Study. Oblique long section through the Çöpler deposit showing the extent of the new resource (>=0.3g/t gold in oxide and >=0.6 g/t gold in sulfide) and the key mining areas TSX: ASR / ASX: AQG 12

13 Çöpler - Main Zone 59000E Section Thickest mineralized zone Main Zone intersection ti to date TSX: ASR / ASX: AQG 13

14 Çöpler - Main Zone 59150E Section Thick gold mineralization below old Çöpler Village TSX: ASR / ASX: AQG 14

15 Çöpler - Main Zone 59450E Section Drilling identifying i continuity it between Manganese and Main Zones TSX: ASR / ASX: AQG 15

16 Çöpler New Gold-Copper District Çöpler +7Moz Au Resource with drilling identifying extensions Yakuplu Gold prospects in-line with major Çöpler structure 15 km Demirmaĝara Au-Cu prospect in-line with major Çöpler structure Multiple Au-Cu prospects along 8km contact zone Karakartal Currently drilling large Au-rich Cu porphyry ASX: AQG / TSX: ASR 16

17 Australia Multi-Mine Production Two treatment hubs: Several ore sources Open pit & underground mix Operating efficiencies Systematic exploration of largest tenement holding in rich Kalgoorlie to Norseman belt Strategic flexibility across entire belt Major exploration programs in progress $18M at SKO and $16M at Higginsville i ill during 2012 TSX: ASR / ASX: AQG 17

18 South Kalgoorlie Operations Ore from Frog s Legs UG mine: 49% owned by Alacer Ore trucked 45km Ore from Triumph and Pernatty open pits: 100% owned by Alacer Located close to Jubilee Plant Processing: Currently 1.2Mtpa Jubilee Plant 2012 guidance (including Frog s Leg) is 90,000 95,000 ozs Construction of new plant deferred until sufficient reserves confirmed in mine plan TSX: ASR / ASX: AQG 18

19 SKO Exploration History: Last significant discovery (>1Moz) was Mt Marion in 1997 Minimal exploration from Alacer has successfully converted resources to reserves Alacer has undertaken minimal grassroots exploration to date SKO exploration strategy now to focus on: Continuing resource to reserve conversion of the large resource base Testing for extensions below existing (>45) open pits Testing high quality conceptual targets in the underexplored tenement package SKO Resources and Reserves (including Frog s Legs) at 31 Dec 2011: Resources total 5.4Moz 54M in 25 deposits Reserves total 0.9Moz in 5 deposits TSX: ASR / ASX: AQG 19

20 For personal use only SKO - $18M Exploration Program for 2012 SBS 28 (40%) Targeting highgrade open pit and UG complex Location 50 (20%) High-grade open pit and conceptual UG Targets, incl: Pernatty/Triumph Mt Martin (25%) Open-pit conversion & targeting UG Recent highgrade intercepts at Surprise Location 48 (15%) High-grade targets separate deposits within tenements covering 1,232km2 25 >300 exploration targets identified

21 SBS28 Complex Barbara 200Koz Pernatty UG mine at 20g/t, circa 1950 Tuscany New near surface position Surprise 50Koz open pit Shirl 63Koz open pit Significant mining centre with historic high grade mines Limited it deep drilling and minor modern exploration Potential for shoot controlled highgrade positions Recent drilling success at Surprise and Barbara, including 7m at 42.5g/t from 97m and 5m at 11.5g/t During 2012, aiming to complete evaluation of SBS28 s potential to provide near term, higher grade open pit ore Testing the underground potential of SBS28 has only recently commenced TSX: ASR / ASX: AQG 21

22 Higginsville Operations Trident UG mine providing 1Mt oforeduring ore 2012 Higher grade ore from Chalice UGminereplacing Vine OPorein H Higginsville plant processing 1.35Mtpa 2012 guidance = 150,000 to 155,000 ozs TSX: ASR / ASX: AQG 22

23 Higginsville - Trident Underground Mine N Production CY 2012 Additional areas brought into the schedule for 2012 Production CY 2012 Mining continues in the Apollo Lodes Production CY 2012 Mining continues in the high-grade Athena Lodes Drilling confirming i & 200m Trident Underground Mine Stopes and development excavated during 2012 Advance Trident Decline to 0630 R.L Prepare to mine Artemis high-grade ore in CY13 extending resources TSX: ASR / ASX: AQG 23

24 Higginsville Further Potential at Chalice Historical Production 3.1Mt at 5.6g/t Au for 558Koz N Atlas Lode ore production ramping up H Current Resource 4.5g/t Au for 232Koz Current Reserve au for 144Koz 200m Recent drilling confirmed new Grampians Lode 790Koz in top 430m No drilling at depth. TSX: ASR / ASX: AQG 24

25 Higginsville Plant Site Trident Underground Two Boys Underground Fairplay Open Pit Higginsville i ill Line of Lode Framework Drilling Potential for high grade UG ore below 1Moz produced in top 300m historically Program to understand geology and structures now 80% complete Four key areas identified for further drilling Corona discovery hole returned 2.35m at 657.9g/t gold Exploration decline to high grade grade Corona deposit recently approved Vine Open Pit mE Corona Prospect m me TSX: ASR / ASX: AQG 25

26 Identified Growth Opportunities TSX: ASR / ASX: AQG 26

27 Strong Investment Case 2012 Gold Production 400,000, ounces attributable Çöpler Strongoperating operating cash flow Low cost operation Resource upside Sulfide expansion provides growth Regional exploration potential Corporate Managing asset portfolio Strong bl balance sheet Driving efficiencies across operations South Kalgoorlie Underexplored district Commitment to exploration Large land package Higginsville Chalice ramping up Drillingto add high grade grade ounces TSX: ASR / ASX: AQG 27

28 TSX: ASR / ASX: AQG 28

29 Mineral Resources Table Source: 2011 Annual Report TSX: ASR / ASX: AQG 29

30 Mineral Reserves Table Source: 2011 Annual Report TSX: ASR / ASX: AQG 30