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Transcript of Calais Resources
Updated - February 2, 2011
Calais ResourcesCalais ResourcesHigh Grade Gold and Silver MiningHigh Grade Gold and Silver Mining
in thein the
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in thein theUnited States United States
CAAUF.PKWebsite: www.calaisresources.com
• Near Term Gold & Silver Production Mining - Colorado
• Gold & Silver Exploration Programs - Colorado & Nevada
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Cross / Caribou MineCross / Caribou MineRound Mtn MineKinross / Barrick
US Property MapUS Property Map
Denver
Tonopah, NV
Manhattan / White Caps MineManhattan / White Caps Mine
Company Summary:Company Summary:
High Grade Gold & Silver Deposits
� 0.30 to 0.50 oz Gold / ton ( 10.3 to 17.1 gm / tonne )
� 5.0 to 12.0 oz Silver / ton ( 171 to 411 gm / tonne )
� All Mine Projects within U.S.� Reduces political & operational risks
Experienced Management Team
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� Experienced Management Team� Seasoned operational, engineering, and executive leadership
� Exploration AND Production � Initial high grade gold and silver resources - majority of exploration lies
ahead� Permitted – Revenue stream from initial production projected to
commence in 2011
Investor Opportunity: Investor Opportunity:
� Near-term Capital Appreciation & Recovery� Long-term Exponential Investment Growth
Company Summary:Company Summary:
High Grade Gold & Silver Deposits
� 0.30 to 0.50 oz Gold / ton ( 10.3 to 17.1 gm / tonne )
� 5.0 to 12.0 oz Silver / ton ( 171 to 411 gm / tonne )
� All Mine Projects within U.S.� Reduces political & operational risks
Experienced Management Team
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� Experienced Management Team� Seasoned operational, engineering, and executive leadership
� Exploration AND Production � Initial high grade gold and silver resources - majority of exploration lies
ahead� Permitted – Revenue stream from initial production projected to
commence in 2011
Investor Opportunity: Investor Opportunity:
� Near-term Capital Appreciation & Recovery� Long-term Exponential Investment Growth
� R. David Russell – Chairman / CEO / Director � One of the major shareholders of Calais Resources.� Previous President/CEO of Apollo Gold Corp., as well as a director and founder. � Thirty-plus years experience executive management at Asarco, LAC Minerals, Barrick Gold, Getchell
Gold Corp.� Holds Directorship positions at General Moly, Pure Nickel, & Fire River Gold� BS degree – Mining Engineering, Montana Tech
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Experience and Industry Leadership
Calais Resources Management TeamCalais Resources Management Team
� David K. Young – President / COO / Director� Has over 28 years of underground mining experience in operations, engineering, mine and corporate
management. � ASARCO – Black Cloud Mine (CO), Troy (MT), Galena & Coeur (ID)� Apollo Gold Corp. – Montana Tunnels (MT), Florida Canyon (FL); Black Fox (Ontario, Can.)� Registered Professional Engineer, State of Idaho; 43-101 qualified person for Calais� BS degree -- Mining Engineering, Colorado School of Mines
� Thomas Hendricks - Vice President Exploration / Director:� Has over 38 years of mining experience at Cross/Caribou, and was President of Hendricks Mining prior
to merger w/ Calais in 1999. Past President of Calais Resources� Experienced small mine operator and geologist � Numerous awards for environmental stewardship & community service.� Served(s) on several state and local boards for reclamation of historic mining properties. 5
� Accounting Group - SJM Financial Solutions
� Auditor – Eide Bailey
� Legal Group� Jon Sawyer - US Corporate Council
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Additional Management Team & Technical / Legal Consultants
Calais Resources Management TeamCalais Resources Management Team
� Jon Sawyer - US Corporate Council� Michael Hobart - Canadian Council� Fay Matsukage - SEC Corporate� John Henderson - Land / Mining Attorney
� Permitting / Environmental Group� Bruce Humphries� Walsh Environmental
� Independent Engineering Review� SRK Consulting
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�� Colorado AssetsColorado Assets�� Cross / Caribou MinesCross / Caribou Mines - Nederland, Colorado
� Started in 1869 – Historic Production - 20 million oz of Silver & 500,000 oz of Gold
�� Historic ResourcesHistoric Resources (PAH - 2002)
� Measured & Indicated – 443,000 tons
� Gold - 0.57 oz per ton (19.5 gm / tonne)
� Silver - 18.3 oz per ton (627 gm / tonne)
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Asset SummaryAsset Summary
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� Silver - 18.3 oz per ton (627 gm / tonne)
� Inferred – 579,000 Tons
� Gold – 0.29 oz per ton (9.93 gm / tonne)
� Silver – 7.49 oz per ton (256 gm / tonne)
� Measured, Indicated & Inferred – 1,022,000 tons
� Gold – 0.41 oz per ton (14.0 gm / tonne)
� Silver – 12.2 oz per ton (418 gm / tonne)
� Identified Over 100 near vertical veins – true widths between 3ft (1m) to over 20ft (6.1m)
� Based on 175,000ft (53,500m) of core drilling and extensive underground sampling
� Land Position - 500 Acres Patented and 1800 Acres Unpatented
�� Cross Mine Cross Mine –– CDRMS CDRMS –– M 1977410M 1977410�� Existing permit allows 70,000 tons per year mining with processing offsiteExisting permit allows 70,000 tons per year mining with processing offsite
� Boulder County Permit Expansion (Approved 2008 – SU-08-006) Allows processing on site
� CDRMS – Permit revision for on site milling – April 2011
� Increases disturbance area to 9.5 acres and Milling on Site
� Increase cash reclamation bond to $100,000.
�� Water Quality Discharge Permit COWater Quality Discharge Permit CO--0032275100322751� Existing permit to discharge excess underground mine water after treatment with lime
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Cross Mine Permit SummaryCross Mine Permit Summary
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� Existing permit to discharge excess underground mine water after treatment with lime
�� Storm Water Discharge Permit Storm Water Discharge Permit -- COR 040242 COR 040242
�� Air Quality Permit Air Quality Permit -- APEN APEN -- 09 BO 09 BO –– 0439 F 0439 F
�� Explosive License Number Explosive License Number -- 55--COCO--013013--3333--1H1H--00625 00625
�� MSHA MSHA -- ID Number ID Number –– 05027300502730
�� Colorado 112 Mine Expansion Permit Application (1,000 tpd)Colorado 112 Mine Expansion Permit Application (1,000 tpd)�� Apply for in Fall 2011 Apply for in Fall 2011 –– Permit expected in 2012Permit expected in 2012
Cross Mine – New On Site Mill
Surface FacilitySurface Facility
� Currently Permitted by Boulder County
� Requires Colorado Permit Updates
� Requires Tailing Impoundment - 2017
Continued Paste Backfill
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� Continued Paste Backfill
� Initial Processing Rate – 200 tpd
� Upgrade to 1000 tpd in 2012
� Potential Underground Mill to Reduce Surface
Disturbance
�� Nevada AssetsNevada Assets� Manhattan, Nevada
� Started in 1862 – Historic Gold Production
� White Caps Mine District - 800,000 oz of Gold
� Preliminary Review
� Historic High grade gold values in limestone units that were mined underground
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Asset SummaryAsset Summary
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� Historic High grade gold values in limestone units that were mined underground
� Historic mining to a depth of 1300ft (396m)
� Potential for Open Pit and Underground Operations
� Historic RC Drilling by Echo Bay – 70 RC holes
� Historic Underground Production Sampling Programs
� Land Position – 3,800 Acres Patented and Unpatented
� 5.93 square miles
� Plans
� Complete Technical Reports / Property Work
� Geological Studies
� Development Drilling – RC and Core Holes
Caribou Mine
Caribou / Cross – Location Fig. 1-1
Colorado PropertiesColorado Properties
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Cross Mine Area
Figure 1-1
Caribou Mine
Caribou / Cross – Location Fig. 2-2
Colorado PropertiesColorado Properties
12
Figure 1-2
Caribou / Cross – Location Map
Colorado PropertiesColorado Properties
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Cross MineCross MineCaribou MineCaribou Mine
Idaho Tunnel
Elevation – 9800ft (2,987m)
Caribou / Cross Long Section – Looking N.E.
Colorado PropertiesColorado Properties
Showing Drill Hole Trace
Elevation – 8800ft (2,682m)
Distance Between Mines – 4,000ft (1,219m)
Idaho Tunnel Used for Underground Core Drilling Platform
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Cross SectionLocation
Idaho Tunnel
Caribou MineCaribou MineCross MineCross Mine
Caribou / Cross With Major Vein System
Colorado PropertiesColorado Properties
AnacondaNo Name Vein
East & West Nelson Veins
Apache, Potosi, Juliet, Cross Veins
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Shop
Apache SystemMain (drift): 3.0 ft @ 0.50 opt Au - 8.0 opt AgIntermediate (drill hole): 3.0 ft @ 0.50 opt Au - 7.5 opt Ag North Apache (drill hole): 3.5 ft @ 3.8 opt Au - 80 opt Ag
N
South Apache: 5.0 ft @ 0.50 opt Au 4.0 opt AgIndependent (Apache): 0.38 opt Au - 5.1 opt Ag
4th Level – 5.0 ft @ 0.50 opt Au 6.0 opt Ag
Juliet StockworkAverage mine area: 0.15 opt Au - 5.0 opt AgIndependent Grab: 0.143 opt Au - 7.13 opt Ag
Independent Grab: 3.24 opt Au - 34.3 opt Ag
New Portal
Calais ResourcesCross Mine – Adit Level
RomeoAdit Level (drift): 12.0 ft @ 0.35 opt Au 7.0 opt Ag4th Level (drift): 5.0 ft @ 0.45 opt Au 15.0 opt Ag
Independent Grab: 0.88 opt Au - 5.58 opt Ag
Independent Grab: 0.005 opt Au - 0.36 opt Ag
Cross-Caribou Mine Site – Nederland, Co.
1. Restart Cross Mine – 200 tpd2. New Decline3. New On Site Mill4. Ramp up to 1000 tpd
Colorado PropertiesColorado Properties
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Preliminary Milling – Leadville, Co.
• Initial Milling – 100 tpd• Cross Mine – Direct Ship Ore
Colorado PropertiesColorado Properties
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Caribou / Cross – Historic Resources(Pincock Alan & Holt – 2002 Not - NI 43-101 compliant )
Category
Measured and Indicated
Tons Gold (oz / ton)
[gm/tonne]
Silver (oz / ton)
[gm/tonne]
Gold (oz) Silver (oz)
Measured and Indicated
Juliet 19,000 0.18 [6.1] 0.67 [23] 3,420 252,840
Rare Metals 98,000 0.40 [13.7] 2.58 [88] 39,200 252,840
Apache 41,000 0.35 [12.0] 8.57 [293] 14,350 351,370
Potosi 8,000 0.22 [7.5] 10.84 [371] 1,760 86,720
Anaconda 35,000 0.51 [17.5] 1.15 [39] 17,850 40,250
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Anaconda 35,000 0.51 [17.5] 1.15 [39] 17,850 40,250
No Name 133,000 0.25 [8.6] 9.67 [331] 33,250 1,286,110
East Nelson 30,000 0.11 [3.7] 13.32 [456] 3,300 399,600
West Nelson 79,000 1.78 [61.0] 71.78 [2,460] 140,620 5,670,620
Total Measured & Indicated 443,000 0.57 [19.5] 18.3 [627] 252,510 8,106,900
Inferred
Rare Metals 92,000 0.40 [13.7] 2.58 [88] 36,800 237,360
Apache 27,000 0.35 [12.0] 8.57 [293] 9,450 213,390
Potosi 7,000 0.22 [7.5] 10.84 [371] 1,540 75,880
Anaconda 30,000 0.51 [17.5] 1.15 [39] 15,300 34,500
No Name 423,000 0.25 [ 8.6] 8.88 [304] 105,750 3,756,240
Total Inferred 579,000 0.29 [9.9] 7.49 [257] 168,840 4,335,370
Total M & I & I 1,022,000 0.41 [14.1] 12.2 [417] 421,350 12,442,270
Cross / Caribou Mines - Estimated Replacement Cost
Area / Category US$ Cumulative (US$)
Cross Mine
Surface Facilities Shop and Mill Building 1,000,000 1,000,000
Underground
Drifts 5,340 ft 5,340,000 6,340,000
Raises / shafts 1,150 ft 1,725,000 8,065,000
Caribou Mine
Assets SummaryAssets Summary
Caribou Mine
Surface Facilities Shop 650,000 8,715,000
Electrical Power 3,000,000 11,715,000
Underground
Drifts 13,500 ft 14,500,000 26,215,000
Raises / shafts 1,700 ft 9,000,000 35,215,000
Exploration 175,000 ft 9,500,000 44,715,000
Permitting 500,000 45,215,000
Land Purchase 500 acres 1,560,000 46,775,000
Leadville Mill 5,000,000 US$51,775,000
Total US$51,775,00020
Underground Mining EquipmentUnderground Mining Equipment
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Mechanized Underground Mining Equipment – Jumbo Drills
Loading and Hauling OreLoading and Hauling Ore
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Mechanized Underground Loading and Hauling Equipment
Description 2011 2012 2013 2014 2015 2016 2017
Phase I Cross Mine – 100 tpd
Restart Cross Mine – Ship Ore to Leadville
Upgrade Leadville Mill - 200 tpd
Proposed Project ScheduleProposed Project Schedule
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Phase II - Caribou / Cross - 1000 tpd
Core Drilling, Permitting & Feasibility Study
Construction - 1000 tpd Mill on Site
Ramp up to 1000 tpd
On - Site Tailing Impoundment
On – Going Corporate Requirements
Exploration Programs in Colorado & Nevada
Underground Mining LevelsUnderground Mining Levels
Main Adit 9693 ftApache Vein - Drift
Cross MineCross Mine
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4th Level
9509 ft
Winze
Figure 1-4
200 tpd – Ramp Up to 1000 tpd
Cross Mine Phase IICross Mine Phase II ( Mining Sequence )
Apache Vein
Ventilation / Secondary Escapeway
Phase II b
25Figure 1-9
Level – 9409
To Be Developed
Phase I
Level - 9509
Phase II a
Phase II c
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Silver Bricks
Caribou MineCaribou Mine
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� 43 miles North of Tonopah, NV
� Land Position� 28 patented lode claims
� 203 unpatented lode claims
� Total of 3,798 acres
� 5.93 square miles
Manhattan Mining District
NEVADA Property NEVADA Property –– Nye CountyNye County
� Historic Gold Mining District from 1905 to 1964
� 800,000 oz of Gold Produced
� White Caps Mine
� Historic 150,000 oz Au
� Round Mountain Mine – Kinross / Barrick
� 5.0 miles to the Northwest
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Calais ResourcesCalais ResourcesManhattan DistrictManhattan District
Nye County, NevadaNye County, Nevada
Round MountainRound MountainMine ComplexMine Complex
5 miles5 miles
Manhattan NorthManhattan NorthWild Horse Claim BlockWild Horse Claim Block
Calais Resources
Manhattan Manhattan -- Nevada District ClaimsNevada District Claims
Nye County, NevadaNye County, NevadaManhattanTown Site
White Caps Mine
Echo Bay (Kinross)Historic Open Pit Mines
N
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White CapsLimestone
Proposed Diamond Drill Hole
2,400 ft
RC Hole – WC 55From 465 to 490 ft (25 ft)
Avg Grade – 0.70 oz Au / ton
310 Level
Elevation7600 ft
White Cap Cross SectionWhite Cap Cross Section
White Caps Cross SectionWhite Caps Cross SectionN 15 E – Looking West
Manhattan Fault
Zanzibar Limestone
1,310 Level
800 Level
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� Complete Legal / Land Program
� US$250,000
Exploration Program – US$ 3.5 million
NEVADA Exploration ProgramNEVADA Exploration Program
� Initial NI 43-101 Technical Report, Exploration Permits and Bonding
� US$250,000
� Development Drilling – RC & Core� Phase I with 5,000 ft at US$ 35 / ft –
US$250,000
� Phase II - 20,000 ft - US$750,000
� Phase III – 30,000 ft - US$2.0 million
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High Grade Gold & Silver Deposits� Exploration & Production
Initial High Grade Gold & Silver ResourcesInitial High Grade Gold & Silver Resources
Majority of Exploration Lies AheadMajority of Exploration Lies Ahead
31
Calais Resources SummaryCalais Resources Summary
Experienced Management Team� Seasoned operational, engineering, and executive leadership
Investment Opportunity� Near-term Capital Appreciation & Recovery
� Revenue stream from production projected to commence 2011
� Long – Term Exponential Investment Growth
31
Company Information
� Trading Symbol: CAAUF.PK
� Registered in British Columbia, Canada� Report in US$ and US GAAP - US Domestic Insurer
� Current CTO in Canada due to lack of financial reporting – Reports to be filed in February 2011
� Chairman & Corporate Officers:
� Chairman / CEO R. David Russell
email: [email protected]
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email: [email protected]
� President and COO David K. Young, PE
email: [email protected]
NI 43-101 Qualified Person for Calais Resources
� Vice President - Exploration Thomas S. Hendricks
email: [email protected]
� Corporate Address:� Calais Resources Inc.
PO Box 653 (4415 Caribou Rd.)
Nederland, Colorado 80466-0653
Phone: (303) 258 – 3806 / Fax: (303) 258 - 0402
FORWARD-LOOKING STATEMENTSThis presentation includes certain “Forward-Looking Statements” within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements regarding potential mineralization, resources and reserves, exploration results and future plans and objectives of Calais Resources, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Calais Resources expectations are disclosed under the heading “Risk Factors” and elsewhere in Calais Resources documents filed from time to time with the regulatory authorities.
Safe Harbor StatementSafe Harbor Statement
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Warning: The Company relies upon litigation protection for forward-looking statements.
Cautionary Note to U.S Investors Concerning Estimates of Measured, Indicated and Inferred ResourcesThis presentation may use terms “Measured”, “Indicated” and “Inferred” Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. “Inferred Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. Drill Indicated Resources are not recognized as resources in the US or Canada. U.S. investors are cautioned not to assume that all or any part of the Measured and Indicated Resources or any other category will ever be converted to reserves. U.S. Investors are also cautioned not to assume that all or any part of the Inferred Mineral Resource exists, or is economically or legally mineable.
Looking Over the Caribou Park Area
Caribou, Colorado