Corporate Presentation

Transcription

1 Corporate Presentation PDAC 2013

2 Notes Regarding Forward Looking Statements This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities regulations in Canada and the United States (collectively, forward-looking information ). The forward-looking information contained in this presentation is made as of the date of this presentation. Except as required under applicable securities legislation, Eco Oro does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, statements with respect to the cost and timing and other parameters relating to the development of the Angostura project including anticipated rates of recovery, estimation of measured and indicated resources, realization of mineral resource estimates and the economic viability thereof, project infrastructure and layout, estimated project time-line, requirements for additional capital and alternatives for project development. The forward-looking information contained in this presentation is based on certain assumptions that Eco Oro believes are reasonable, including, that the current price of and demand for gold will be sustained or will improve, the supply of gold will remain stable, Eco Oro s development plans can be achieved, the general business and economic conditions will not change in a material adverse manner, financing will be available if and when needed on reasonable terms and Eco Oro will not experience any material accident, labour dispute, or failure of plant or equipment. However, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Eco Oro to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks relating to Eco Oro s ability to obtain adequate financing for the development of the Angostura Project, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, mineral resources are not as estimated, unexpected variations in grade or recovery rates, risks related to fluctuations in the currency market, risks relating to title disputes, risks relating to all Eco Oro s properties being located in Colombia, accidents, labour disputes and other risks of the mining industry, delays in the completion of development or construction activities, delays or failure to obtain required environmental and other governmental approvals, as well as those factors and other risks more fully described in Eco Oro s Annual Information Form for the year ended December 31, 2011 filed on SEDAR at Although Eco Oro has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not be as anticipated, estimated or intended. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof. CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED AND INDICATED RESOURCES. Information concerning the properties and operations of Eco Oro has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be comparable to similar information for United States companies. The terms mineral resource, measured mineral resource and indicated mineral resource used in this presentation are Canadian mining terms as defined in accordance with NI under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum ( CIM ) Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, While the terms mineral resource, measured mineral resource and indicated mineral resource are recognized and required by Canadian regulations, they are not defined terms under standards of the United States Securities and Exchange Commission. Under United States standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve calculation is made. As such, certain information contained in this presentation concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the Unites States Securities and Exchange Commission. Readers are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into mineral reserves. STATEMENT REGARDING TECHNICAL INFORMATION The mineral resources in this presentation 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. 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. 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 Preliminary Economic Assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Preliminary Economic Assessment will be realized. Additional drilling will be required and is planned to better categorize these mineral resources. Frederick Felder, P.Geo, a consultant to Eco Oro and a qualified person as that term is defined in National Instrument , has reviewed and verified the technical information contained in this presentation. 2

3 Cultivated History New Approach Long History in Colombia +18 Years $200M Spent Extensive Local Investment Environmental Social Well Funded $32.1M in Cash (as of Q312) No Debt New Management 3 New Strategic Vision

4 Key 2012 Highlights Regional Park of Santurbán Officially Declared Major Consolidation in Region by AUX Created a Team Fit For Purpose Reduced Burn Rate Exploration License Extended PFS Underway Expected Q

5 Management Team 5 DIRECTORS Anna Stylianides Co-Chairman Expertise in Corporate Law, Corporate Finance, Structured Finance; Director of Fraser Mining Institute Juan Esteban Orduz Co-Chairman Extensive experience in Colombia previously VP Legal of Cemex Group, Deputy Chief of Mission Colombia Embassy in D.C. Currently CEO of Colombia Coffee Federation. Joao Carrelo President CEO & Director Eduardo Jaramillo 20+ years experience in manufacturing and service companies with emphasis on Latin American markets. Hubert R. Marleau Extensive Capital Markets experience; focused on Corporate Finance, M&A and Investment Banking. Jean-Sebastien Blanchette Research Analyst, Investment Advisor focused on Energy & Metals; experience in Corporate Governance and PubCo Management. Samuel Jed Rubin Specialized in Securities Law and Corporate Governance matters, Acquisition Finance, and public/private M&A transactions. EXECUTIVE Joao Carrelo President CEO & Director 29+ years international operational, project and management experience within the mining, metals, refining and fertilizer industries. Extensive experience in politically and culturally sensitive environments. Previously COO of Lundin Mining Corporation. Mary Ellen Thorburn CFO +20 years of Finance experience, including +10 years in mining. Previously held positions with Taseko Mines, Barrick Gold, UBS and PWC. James Atherton VP Legal & Corporate Secretary 9+ years practising Corporate & Commercial Law with emphasis on Securities Law. Fiona Grant Leydier Director Investor Relations 7+ years in Corporate Communications, specializing in PubCo Investor Relations in the mining industry for exploration, development and production companies. Hernan E. Linares P. General Manager, Colombia 12+ years professional experience, in the areas of finance and auditing services and mining company management.

6 Angostura A Multi-Million Ounce Gold-Silver Deposit Typical high-sulphidation epithermal deposit with Au-Ag mineralization Located in the Angostura-California Gold District in northeastern Colombia Access to major power grid, water and educated work force Excess of 300,000 m of drilling and 3,000 m of UG development completed Mineral Resource Estimate (cut-off grade 1.5 g/t Au) Category Tonnes (Mt) Au (g/t) Ag (g/t) Contained Au (Moz) Contained Ag (Moz) Indicated Inferred Based on the Updated Preliminary Economic Assessment on the Angostura Gold-Silver Underground Project dated March 23, Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves. Mineral Resource tonnages and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.

7 Update PEA Results March 2012 Base Case Scenario* Total Recoverable Ounces Average Annual Production 2.7M oz AuEq (90% gold) 269,000 oz AuEq After-Tax Sensitivity to Gold Price (NPV 5%) BIOX (US$/oz) 1,200 1,400 1,700 Expected Mine Life 10 6,000 TPD NPV (US$ million) Cash Costs (US$) Intial Capital Cost (US$) $494/oz (incl. Ag byproduct credits) $529M IRR (%) Payback (years) * Based on a gold price of USD1,200/oz and a silver price of USD18.25/oz in the first two years followed by a life of mine price of USD1,200/oz for gold and USD15.85/oz for silver and a cut-off grade of 2.5 g/t AuEq. It should be noted that this updated PEA is preliminary in nature, that it includes inferred mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment and project economics will be realized. 7

8 Angostura PFS Project Highlights In progress Expected in Q ,000 m of additional drilling to PEA Main infrastructures at lower elevations Improvements in resource confidence Improvements in recoveries and economics from metallurgical testing Optimizing mine design 8

9 High Grade Continues at Depth Highlights from recent drilling: 59.7 g/t Au and 30.7 g/t Ag over 4.8 m in hole SI g/t Au and 18.2 g/t Ag over 2.6 m in hole QP g/t Au and 0.6 g/t Ag over 3 m in hole DM g/t Au and 3.0 g/t Ag over 2 m in hole GTC g/t Au and 11.3 g/t Ag over 6 m in hole DM

10 Regional Prospects 10

11 Environmental Stewardship Environmental Management Plan o Water Managment & Monitoring Program o Ecosystem Protection & Restoration o Environmental Studies & Paramo Boundaries Study 11

12 Water Management & Monitoring Program Vetas California Suratá 12

13 Moving Ahead Near-Term Catalysts Updated Resource Estimate Angostura PFS Definition of Páramo Boundaries Long-Term Objectives Angostura FS Obtain Environmental License Resources for Construction and Mining M&A Opportunities 13

14 Share Structure Share Capital* Shares Outstanding 84,228,421 Options 5,164,239 Warrants 3,365,686 Fully Diluted 92,758,346 *As of Q32012 Major Shareholders** Amber Capital 20.8% Paulson & Co 12.8% IFC 10.7% AGF 2.5% Sprott Asset Mgmt 2.0% 14 **As of Q42012

15 Most Substantial Declared Resources in California-Vetas 3,000, ,500, ,000, ,500, Indicated Au Oz Resources Inferred Au Oz Resources MCAP (in Millions $) 1,000, , Eco Oro Galway Calvista CB Gold - 15 Based on AUX/GWY/CVZ Plans of Arrangement and EOM/CBJ Share Prices as of 02/21/13

16 Future Investment Case Positive Declaration Regional Park of Santurbán SUPPORT FOR ANGOSTURA PROJECT Developing Multi-Million Ounce Gold Project OPEN AT DEPTH Operating in Highly Prospective Region CONSOLIDATION ACTIVITY Other Growth Opportunities REGIONAL AND GLOBAL New Management Team NEW APPROACH 16 Well Funded $32.1 M CASH Q32012

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