7.35M Ounce M&I Resource · 4/30/2020 · CORPORATE PRESENTATION April 30, 2020 TSX-V: GLDX OTCQX:...

7.35M Ounce M&I Resource

CORPORATE PRESENTATIONApril 30, 2020

TSX-V: GLDX OTCQX: SSPXF

Flying Under the Radar with One of the Largest

Undeveloped Gold Deposits in the Americas

TSX-V: SSP | OTC: SSPXF2

TSX-V: GLDX | OTCQX: SSPXF

CAUTIONARY NOTESForward-looking Statements and Cautionary Notes

Forward-looking StatementsCautionary Note Regarding Forward-Looking Information: Except for statements of historical fact relating to Gold X Mining Corp. (the “Company” or “Gold X”), certain information

contained in this presentation constitutes “forward-looking information” under Canadian and U.S. securities legislation. Forward-looking information includes, but is not limited to,

statements with respect to the potential of the Company’s properties; the future price of gold; success of exploration activities; costs and timing of future exploration and

development; the estimation of mineral resources; conclusions of economic evaluations; requirements for additional capital; and other statements relating to the financial and

business prospects of the Company. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans,” “expects,” or “does not

expect,” “is expected”, “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” or “does not anticipate,” “believes,” or variations of such words and phrases. Forward-

looking information is based on the reasonable assumptions, estimates, analysis and opinions of the management of the Company made in light of its experience and its perception

of trends, current conditions and expected developments, as well as other factors that the management of the Company believes to be relevant and reasonable in the circumstances

at the date that such statements are made. Forward-looking information is inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual

results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but

not limited to risks related to: the Company’s goal of creating shareholder value by concentrating on the development of the Toroparu Gold Project, believing that it has the potential

to contain economic gold deposits; the Company’s assessment of future plans for the Upper Puruni property; managements’ economic outlook regarding future trends; the

Company’s exploration budget for the Upper Puruni property, and in particular, the availability of skilled labor, timing and the amount of the expected budget; the Company’s ability

to meet its working capital needs at the current level in the short term; expectations with respect to raising capital; sensitivity analysis on financial instruments may vary from the

amounts disclosed; and government regulation and environmental liability, as well as those risk factors discussed or referred to in the Company’s continuous disclosure filings with

the securities regulatory authorities in Canada available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ

materially from those contained in forward-looking information, other factors could also cause materially different results. There can be no assurance that forward-looking

statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place

undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the

Company’s expected financial and operational performance and the Company’s plans and objectives and may not be appropriate for other purposes. The Company does not

undertake to update any forward-looking information, except in accordance with applicable securities laws.

Preliminary Economic Assessment Report

The Preliminary Economic Assessment, prepared by SRK Consulting (U.S.) Inc. with an effective date of June 11, 2019, is entitled “Preliminary Economic Assessment Report, Toroparu

Gold Project, Upper Puruni River Area, Guyana”. PEA economics were calculated using a base case of US$1,300/oz gold, US$16/oz silver and US$3.00/lb. copper. The PEA Study has

been filed on SEDAR at www.sedar.com. . The PEA Study has been filed on SEDAR at www.sedar.com. The scientific and technical data pertaining to disclosure of the mineral resource

estimates or economic information contained in the PEA in this news release has been reviewed and approved by Fernando Rodrigues, MMSAQ, a Qualified Persons under NI 43-101

who consents to the inclusion of his name in this release.

Resource Estimates

This document uses the terms “resources”, “measured resources”, “indicated resources” and “inferred resources”. United States investors are advised that, while measured resources,

indicated resources and inferred resources are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission (the “SEC”) does not

recognize them. 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 determination is made. United States investors are cautioned not to assume that all or any part of measured or

indicated resources will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined

legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States investors are also

cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. Disclosure of “contained ounces” is permitted disclosure

under Canadian regulations, however, the SEC normally only permits issuers to report “resources” as in place tonnage and grade without reference to unit measures. Accordingly,

information concerning descriptions of mineralization and resources contained in this release may not be comparable to information made public by United States companies subject

to the reporting and disclosure requirements of the SEC. National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) is a rule developed by the Canadian

Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. All resource

estimates contained in this circular have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System.

TSX-V: SSP | OTC: SSPXF

INVESTMENT HIGHLIGHTS5 Pillars in a Rising Gold Environment

3

“I believe we are in the third

and final phase of the gold

market that started in 2001

and this will be the most

explosive phase for gold.”

Frank Giustra

Sep 3, 2019

“The [Reunion JV] agreement

expands Barrick’s exploration

footprint in the Guyana

Shield, a significantly

underexplored region and one

of the most prospective in the

world for large scale gold

discoveries”

Mark Bristow, CEO Barrick

Feb 4, 2019

TEAM

The Gold X team and strategic

shareholders have created billions of

dollars of shareholder value, responsible

for numerous successful sales

One of the largest gold deposits in the

Americas with 7.35 million ounces

Measured & Indicated

Advanced development stage project with

key permits in place trading at explorer

valuations of US$11 / M&I ounce

Toroparu is located in Guyana, poised to

be world’s fastest growing economy

according to the IMF

Significant potential to upgrade inferred

resources and classify additional

resources in proximal targets within

53,800-hectare mineral concession

SIZE

LEVERAGE

LOCATION

UPSIDE


https://www.kitco.com/news/video/show/Kitco-NEWS/2533/2019-09-03/Gold-will-be-explosive-unlike-anything-weve-seen-says-Canadas-billionaire#_48_INSTANCE_puYLh9Vd66QY_=https%3A%2F%2Fwww.kitco.com%2Fnews%2Fvideo%2Flatest%3Fshow%3DKitco-NEWS

https://www.ft.com/content/5b29c8a6-288a-11e9-a5ab-ff8ef2b976c7


UNPARALLELED TRANSACTION PEDIGREE

4TSX-V: GLDX | OTCQX: SSPXF

$8.64B of shareholder value created over the last 16 years


CORPORATE SNAPSHOTSignificant Insider Ownership

Share Structure

Common Shares 38.0M

Options 3.8M

Warrants 22.8M

Convertible Debenture 8.2M

Fully Diluted Shares 72.7M

Total Insider Holdings 34.7%

Top Shareholders:

Gran Colombia

Frank Giustra

Brian Paes-Braga

19.2%

8.5%

5.3%

Cash on Hand

Potential Warrant Exercise

C$6M

C$60M

Average Daily Trading

Volume from 11/2019

100,000 Shares

MANAGEMENT

Paul Matysek, CEO & Chairman of the BoardDeveloped and sold 5 public companies creating over $2.79 billion in

shareholder value, most recently as Executive Chairman of Lithium X Energy

Richard Munson, President+35 years experience; Advancing Toroparu since 1999

Bassam Moubarak, CFO & DirectorSeasoned Executive who, as CFO, was instrumental in the sale of Lithium X

Energy, Goldrock Mines and Petaquilla Copper

Greg Barnes, Executive Vice PresidentSpecialist in trading, production and commodity investment in developing

countries

Brian Paes-Braga, Strategic AdviserPreviously CEO of Lithium X Energy which, over 2.5 years, raised

approximately $53 million in equity and sold in March 2018 for $265 million

INDEPENDENT DIRECTORS

Lombardo Paredes, Independent Director

CEO Gran Colombia Gold Corporation

Suresh Beharry, Independent DirectorCo-Chairman, Beharry Group of Companies (one of the largest

conglomerates operating in Guyana)

Federico Restrepo-Solana, Independent DirectorPartner & Corporate Director of Quartz Capital Partners

Brian O’Neill, Independent DirectorVice President, Merchant Banking at SAF Group



SIZE MATTERSOne of the Largest Undeveloped Gold Deposits in the Americas (Open Pit & Underground)

6

Open Pit

Underground


M O

z M

&I

-

2

4

6

8

10

12


SIZE MATTERSOpen Pit Comparables


M O

z M

&I

0.73 0.73 0.81 0.91

1.63

0.38

0.98 0.65

1.85

0.50 0.82

0.50 -

2

4

6

8

10

12

M&I (moz) M&I (g/t)


ECONOMIC HIGHLIGHTS2019 PEA (based on $1,500 Au w/ PMPA)


* Resource estimate based on 675 DDH – 202,250 meters

*



Phased Development: PEA Production Schedule

LEVERAGE

Phase I – Y1-2411.5kt/d Gold Leach (CIL) Plant

Phase II - Year 11 -2411.5 kt/d Copper Concentrator Expansion23 kt/d total ore throughput

Production Metrics ($1,300/oz)

Time Avg. Prod Grade Rec AISC

Pay 179 koz/y 1.48 g/t 93.2% $658/oz

1-8 161 koz/y 1.31 g/t 92.4% $790/oz

9-24 202 koz/y 0.93 g/t 87.0% $769/oz

LOM 188 koz/y 1.01 g/t 88.6% $780/oz

Financial Metrics

(US$ M)Gold FCF NPV5%* IRR Payback

$1250 $1,121 $428 18% 3.27

$1300 $1,251 $519 20% 2.92

$1400 $1,511 $628 24% 2.34

$1500 $1,771 $760 28% 2.02

Spot** $2,421 $1,087 36% 1.66

* After Tax ** $1750/oz

Phased Project Development (w/ WPM PMPA)

Phase I Lower Project Finance $272m

- 161 kozs/y prod. (8-yr)

Phase II Internally Financed ($1,300/oz)

- 217 kozs/y Au prod.

- Copper & Silver by-prod.

- Reduced Cost (hydro)

LOM Gold doré production 3,640 kozs,

Gold in Concentrate 876 kozs.



Technical and Permitting Timelines

PRODUCTION DECISION TIMELINE

TECHNICAL

2011

Discovery

PERMITTING

MDA: Mineral Development Agreement executed 2011

EA: Environmental Authorization Approved 2013 (EAA)/ Renewed 2019 (EAR) / Update 2020

MLA: Large-Scale Mining License 08/2019 Application Update (Sona Hill and Northern Access Route)

MLR: Technical/Property/Legal Review/GGMC Approval/Natural Resource Ministry Approval (on COVID-19 Delay)

MLE: License issuance (expected in 2020)

MDA

* Was not published ** Pending outcome of next steps

Environmental

Authorization

(EA) Approved

EAR/MLR EAU/MLE

2012 2013 2014 2019 2020

PFS Resource Expansion PEA Updated FS**FS*


• Mine Designs

• Mine Geotechnical and Hydrology

• Metallurgical Test Work

• Waste Rock ML & ARD Studies

• Tailings Geochem & Geotech Studies

• 23 Kt/d Process Plant Design

• Site & Off-Site LIDAR Surveys

• Site Water Balance, Water Mgmt. Structures

• Tailings Management Facility Design

• Site Infrastructure Designs

• Site Geotechnical and Condemnation Drilling

• Construction Cost Estimate

• Project Cost Estimate Review


$150M spent on project to date

ADVANCED STAGE PROJECTCompleted Feasibility Level Engineering Studies


WHEATON PRECIOUS METALS AGREEMENTSSignificantly De-Risks Project Finance Requirements

12

Precious Metals Purchase Agreement (PMPA) with

Wheaton Precious Metals 1

KEY TRANSACTION TERMS:

– 10% of LoM gold production at US$400/oz Au

– 50% of LoM silver production at US$3.90/oz Ag

– US$15.5M early deposit received

– US$138M project installments for royalty stream

– Total contribution toward PFS project capex: US$153.5M

– Estimated contribution toward PEA project capex:

US$106M

1 PMPA currently requires completion of a Feasibility Study by December 31, 2020. After reviewing the feasibility, Wheaton Precious Metals (WPM) has the option to continue or

opt out of the PMPA.

If WPM elects not to proceed, Gold X can choose to return US$11.5 million to WPM and terminate the PMPA or can reduce the gold stream from 10% to 0.909% and the silver

stream from 50% to nil.

2 Convertible at C$3.20/sh with no cash interest payments required until maturity (12/2022)


Wheaton Precious Metals early

deposit agreement originally

signed in 2013

Agreement expanded in 2015

after 2014 final feasibility work

Provided US$10M in 2019 for

convertible debenture financing

to exercise purchase option for

Toroparu2


GUYANAThe World’s Fastest Growing Economy According to the IMF


English speaking

democratic republic

Member of Commonwealth of

Nations, World Trade

Organization, and CARICOM

headquarters located in

Georgetown

Courts governed by British

Common Law

Financing supported by

- International Finance

Corporation (IFC)

- Overseas Private

Investment Corp (OPIC)

- Export Development

Bank of Canada

- US Import-Export Bank

(EXIM)

RESOURCE ENDOWMENT

Oil - 8 bn barrel gross recoverable resource from ExxonMobil’s 16 discoveries in the Stabroek Block (25% explored).

3 Production Projects w/ 120 mbo/d production in 2020 growing to 560 mbo/d by 2023

Gold – Omai, Aurora, Karouni, Toroparu, Aremu, Peters Mine

Bauxite – Guyana’s 350 M-ton bauxite reserve is one of the world’s largest deposits with current projects belonging to First Bauxite (US), Rusal (RUS), Bosai (CHN)

Manganese – 30 M-ton reserve being developed by Bosai (CHN) with 600kt/y expected to begin in 2021

Hydro – GLDX MoU with Gov’t of Guyana for 80 MW RoR Hydro project 50 mi SW of Toroparu

“The IMF has

considered the change

in the price of oil due to

the price war between

Saudi Arabia and

Russia as well as

COVID-19’s effects on

the overall global

demand for oil and

revised Guyana’s

growth projection to

52.8 %.”

IMF World Economic

Outlook, April 2020



“The Guiana shield is 50 years behind in

everything related to geologic knowledge. In

2018, 12% of the gold in South America was

produced out of Guyana and Suriname, but

only 9% of the exploration budgets went to

that area”

- Marc Bardoux, Chief Geologist Barrick, April

2020

Sandspring Resources Ltd.

REGIONAL GEOLOGY SKETCH

L.W.Claessens

AirborneMagnetics

High

Low

0 5 10 15km

680000

690000

700000

710000

720000

730000

740000

680000

690000

700000

710000

720000

730000

740000

790000 800000 810000 820000 830000 840000 850000 860000 870000

790000 800000 810000 820000 830000 840000 850000 860000 870000

UTM PSAD56 zone 20N

UPPER PURUNIGEOLOGICAL SKETCH

81

0,0

00

82

0,0

00 UTM PSAD Zone 20N

Toroparu Au-Cu-Ag Deposit

Upper PuruniConcession

Interpreted Restraining Bending Zone in Puruni Shear Corridor

WYNAMU

TIMMERMANS

AMEEBA

RED DRAGON

Otom

ung

Concession

SONA HILL

5 km

REPROCESSED AIRBORNE MAGNETIC DATA

Toro S

Toro NW

Toroparu Main

SE

Inferred Conversion Potential within Toroparu Resource Pit (0.3 g/t CoG)

53,800 Hectares in Elephant Country

- Puruni Shear zone is regional structure extending 100 km into Venezuela

- Several exploration targets within the 20km x 7km hydrothermal alteration halo surrounding Toroparu

1 km

RESOURCE POTENTIALReclassification of 3.15M Inferred Ounces and Exploration



Next Steps

RACE TO PRODUCTION

MINE DEVELOPMENT

• Capacity Trade-Offs

• Equipment Leasing / Financing

• Feasibility / FEED Studies

• Production Decision

• Project Finance

• Access Road & Port Construction

PERMITTING

• Final Review / Assessment (GGMC*)

• License Approval (GGMC / MNR**)

• Mining Permit conversion to Large Scale License

• Notification to commence Construction

MERGERS & ACQUISITIONS

• Joint Venture

• Merge / Sale

* Guyana Geology and Mines commission

**Ministry of Natural Resources

PROJECT OPTIONALITY

1. JUNIOR OPPORTUNITY

• 2-Phased Development Plan (PEA)

• 11.5k t/d expanding to 23k t/d capacity

• 188k oz/y over 24-yr mine life

• $378 M pre-prod CAPEX (PEA est.)

• $272 M (non optimized) financing

estimate with WPM

2. MID-TIER OPPORTUNITY

• Feasibility Level Engineering

• 23k t/d capacity

• 232k oz/y over 17-yr mine life


FLYING UNDER THE RADAR


$-

$50

$100

$150

$200

$250

AVERAGE = $85/OZ

Source: Comparable company data taken from BMO Capital Markets Precious Metals & Minerals Report (Apr 13, 2020)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

AVERAGE = 0.4X NPV

Enterprise Value per Ounce of M&I Resource Price to NPV5% at $1,521 / Oz Au


FLYING UNDER THE RADAR


0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

6X

Source: Averages taken from RBC Equity Research Precious

Metals Report (March 16, 2020)

0

2

4

6

8

10

12

14

Project Financial Toroparu (GLDX) Rank

Industry Sub-Sector Comparable (P/NPV)

Overvalu

ed ----------------

Un

dervalu

ed

Open Pit Project & Financial Comparable

Wo

rst

----

----

----

----

----

----

----

----

----

-B

est

Source: Company filings and technical reports


KEY TAKEAWAYSGold X Mining Corp.

18

1Experienced management team with a proven track record of

creating billions of dollars of shareholder value

One of the largest in-situ gold deposits in the Americas with 7.35M

ounces Measured & Indicated and 3.15M ounces Inferred

Advanced stage development asset with $150M spent, key permits

in place, demonstrating robust economics and deep value

Located in an English speaking, mining friendly country recognized

to be the fastest growing economy in the world by the IMF

Under the radar: Toroparu ranks in the top quartile in 5 of 6

widely used project metrics yet is significantly undervalued on

price multiples

2

3

4

5


THANK YOU

TSX-V: GLDX OTCQX: SSPXF

Gold X Mining Corp.

9137 East Mineral Circle,

Suite 180

Centennial CO, 80112

IR phone: +1 (604) 609-6132

[email protected]

www.goldxmining.com

7.35M Ounce M&I Resource · 4/30/2020 · CORPORATE PRESENTATION April 30, 2020 TSX-V: GLDX OTCQX:...

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