Crocodile Gold Corporate Presentation December 2012

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TSX: CRK OTCQX: CROCF FRANKFURT: XGC A New Mid-Tier Gold Producer CORPORATE PRESENTATION

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Crocodile Gold Corporate Presentation December 2012

Transcript of Crocodile Gold Corporate Presentation December 2012

Page 1: Crocodile Gold Corporate Presentation December 2012

TSX: CRK OTCQX: CROCF FRANKFURT: XGC

A New Mid-Tier Gold Producer

CORPORATE PRESENTATION

Page 2: Crocodile Gold Corporate Presentation December 2012

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Forward Looking Information

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This presentation contains forward-looking information under Canadian securities legislation. Forward-looking information includes, but are not limited to, statements with respect to the development potential and timetable of the projects; the Company’s ability to raise additional funds as necessary or on commercially reasonable terms; the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. 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”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the projects are based on assumptions underlying mineral resource estimates and the realization of such estimates; results of previous mining activities at the projects, and detailed research and analysis completed by independent of the Company; research and estimates regarding the timing of delivery for long-lead items; knowledge regarding the factors consultants and management involved in building a mine and other factors described in the technical reports and Annual Information Form filed under the profile of the Company on SEDAR. Capital and operating cost estimates are based on results of previous mining activities, research of the Company and independent consultants, recent estimates of construction and mining costs and other factors that are set out in the scoping study. Production estimates are based on mine plans and production schedules, which have been developed by the Company’s personnel and independent consultants. Forward-looking information is 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: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of exploration and mining activities; changes in project parameters as plans continue to be refined; future prices of gold; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such 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 Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Investors are advised that National Instrument NI 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty of measured, indicated or inferred mineral resources, these mineral resources may never be upgraded to proven and probable mineral reserves.

Certain information contained herein may be considered to be future-oriented financial information, which was designed and approved by management of Crocodile Gold for the purposes of assessing the value of the acquisition. Readers are cautioned that such information may not be appropriate for their use, and readers should consult their financial advisors as appropriate.

Bill Neilsen P.Geo. Vice President of Exploration at Crocodile Gold is a “qualified person” as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this presentation

Non-GAAP Measures

Crocodile Gold believes that investors use certain indicators to assess gold mining companies. The indicators are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance in accordance with the International Financial Reporting Standards.

“Cash Cost per Ounce” is a non-GAAP performance measure which could provide an indication of the mining and processing efficiency at the operations. It is determined by dividing the operating expenses, excluding stock-based compensation allocated to the operating expense and next of silver revenue, by the number of ounces of gold sold. There are variations in the method of computation of ‘cash cost per ounce” as determined by the Company compared with other mining companies. For more detail on Cash Cost per Ounce determination for Corocidle gold, please visit www.sedar.com or www.crocgold.com and review the latest Annual Financial Statements issued on March 19, 2012.

Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources

The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

Note for Page 5: For information regarding mineral resource and reserve estimates, including parameters used to generate the estimates and depletion, please see the technical reports titled: REPORT ON THE

MINERAL RESOURCES & MINERAL RESERVES OF THE NORTHERN TERRITORY GOLD AND BASE METALS PROPERTIES FOR CROCODILE GOLD CORP. dated April 4th, 2011; NI43-101 TECHNICAL

REPORT FOSTERVILLE GOLD MINE, VICTORIA, AUSTRALIA PREPARED FOR CROCODILE GOLD CORP dated April 29th, 2012; NI43-101 TECHNICAL REPORT STAWELL GOLD MINE, VICTORIA, AUSTRALIA

PREPARED FOR CROCODILE GOLD CORP dated April 9th, 2012. These documents are available on the company website and at www.sedar.com.

Page 3: Crocodile Gold Corporate Presentation December 2012

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Investment Advantage

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Assets

Production

Exploration

Two operating mines and one new mine nearing commercial production:

One 2.4MM TPA central processing facility in the Northern Territory Complex at Union Reefs

Two 1.0MM TPA processing facilities in the State of Victoria

Expanding production profile with decreasing cash costs

New projects are being added to the production profile

Outstanding potential to discover additional resources

Extensive exploration project and development pipeline, with further joint venture opportunities

Australian-based production and exploration

Mineral Resources: M&I of 4.1 million oz, Inferred of 2.8 million oz

Over 4,000 sq. km land package with proven historical production

Significant infrastructure and accessibility

Page 4: Crocodile Gold Corporate Presentation December 2012

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Our Assets

Page 5: Crocodile Gold Corporate Presentation December 2012

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Our Assets

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Burnside Property Cosmo - anticipated commercial

production in Q1 2013 West Howley / Rising Tide - ceased

production in Q2 2012 Ore processed at centralized Union Reefs

Mill

Production

Pre - Production International Pit (Pine Creek) –

Preparatory stage

Advanced Exploration Union Reefs Maud Creek

Victoria State Assets

Fosterville Stawell

Production

Northern Territory Complex Mineral Resources* Tonnes Au Grade Au

(MM) (g/t) (Koz)

Proven & Probable Reserves

Cosmo 3.1 4.2 420

Fosterville 2.4 4.7 365

Stawell 1.0 3.4 107

Pine Creek 3.0 1.7 162

Burnside 1.6 1.5 80

Reserves 11.1 3.2 1,134.0

Measured and Indicated Resources (incl. of Reserves)

Cosmo 5.3 4.6 776

Fosterville 13.9 2.9 1289

Stawell 4.7 2.6 399

Pine Creek 5.5 1.6 289

Union Reefs 0.2 2.4 18

Maud Creek 9.3 3.1 935

Burnside 11.3 1.4 493

Mt Bundy 20.2 1.0 664

M&I Resources 65.2 1.9 4,087.0

Inferred Resources

Cosmo 5.7 3.7 676

Fosterville 5.0 2.9 477

Stawell 1.0 4.7 145

Pine Creek 2.3 2.4 183

Union Reefs 3.7 1.7 204

Maud Creek 1.1 2.4 82

Burnside 13.0 1.5 647

Mt Bundy 10.5 1.0 350

Inferred Resources 42.4 2.0 2,764.0

*Please refer to cautionary language and Note for Page 5 on page 2 of this presentation

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Northern Territory Complex - Production / Pre-Production

Cosmo (Underground)

Asset on Burnside property, historically produced approximately 430 Koz Au since 1873 (with Howley)

Development initiated in February 2011

Trial stoping completed in Q1 2012

Production stoping initiated in September, with first transverse stope successfully extracted

Ramping-up and targeting 80,000 oz Au per year

Delineation drilling program confirming expectation in terms of grade and tonnage

Union Reefs Mill

Centralized CIL mill with a capacity of 2.4MM TPA

Gravity and Carbon-in-Pulp plan designed to recover gold from free-milling ore sourced from Burnside and Pine Creek

Plant is capable of recovering coarse gold by gravity concentration and fine gold by cyanide leaching and absorption on activated carbon

Union Reefs Mill, Northern Territory

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Northern Territory Complex - Production / Pre-Production

Pine Creek – International Deposit (Open Pit)

Located approximately 20 km from Union Reefs mill

Previously produced 745 Kt @ 1.6g/t for 31 Koz Au until mining ceased in 1995

Granted in-principle approval for redevelopment and proposed preparatory work; initiated surface drilling for optimizing and finalizing mining activities

Expected to produce 1.4 Mt @ 1.3g/t for 47 Koz over 3 year LOM (Waste:Ore - 3.5:1)

Next Steps

Q4 2012: Production decision

Q2 2013: Expect mining to start

Conceptualized pit

International Conceptualized

Open Pit

Union Reefs Mill

Prospect

Crosscourse

International

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Northern Territory Complex - Exploration Assets

Union Reefs -- Prospect Deposit

Located within 1 km from existing infrastructure

Historical production of 800 Koz Au from open pits (Anglo Gold); ore treated at the Union Reefs mill

Completed a 11,500 m drilling program; key exploration results include*:

Prospect: 4.2 m@27g/t Au, 2.5 m@240g/t Au

Crosscourse: 181.2 [email protected] g/t Au, 12.3 [email protected] g/t Au

Next Steps

Q3 2012: Update of resource model & desktop study

Q4 2012: Board decision on Phase II – Underground exploration decline

* Refer to Oct 13, 2011, Jan 20, 2012 and May 9, 2012 press releases for detailed results

Union Reefs, Prospect

and Crosscourse Union North

Lady Alice

Union

Reefs Mill

Complex

Prospect

Crosscourse

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Northern Territory Complex - Exploration Assets

Maud Creek

Near town of Katherine, 8 km from highway

Previously produced 174 Kt @ 3.3 g/t Au for 19 Koz Au

Desktop Scoping study - Conceptual design

Open pit to be followed by underground operation

Partially refractory ore; testing indicates 90-95% recovery by flotation with concentrates grading 3-6 oz/t

applicability of Fosterville BIOX® technology

Next Steps

Update of mineral resource, metallurgy and scoping study are expected this year

Q4 2012: Recommendation on next phase – revised resource estimate and desktop study in progress

Union Reefs Mill

Prospect

Maud Creek

International

Moline

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Victoria State Assets

Fosterville (Underground)

Located approximately 150 km north of Melbourne and 20 km from Bendigo, accessible by all weather roads

Producing since 1992 with own processing facility (capacity of 800 Ktpa) with a bacterial oxidation process uses BIOX technology

Expected to produce 82-87 Koz Au in 2012 (including production prior to May 4, 2012 acquisition)

Current mine life of 3 years based on reserves & resources; production of approximately 85-95 Koz Au annually

Recently announced results from high-grade gold intersections from drill holes on strike extension of the Phoenix ore body (Press Release dated Aug. 30, 2012)

Fosterville Production Facility

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Victoria State Assets

Stawell (Underground)

Located alongside the town of Stawell, in central Victoria, approximately 250 km west of Melbourne

Expected to produce 69-74 Koz Au in 2012 (incl. production prior to May 4, 2012 acquisition)

Standard CIL gold recovery circuit following crushing and grinding and sulphide flotation; processing capacity is 1.0MM tpa

Decision to ramp-down underground mining activities by end of 2013; will continue to provide cash flow due to savings on capital expenditure

Opportunity to economically treat historical surface stockpile beyond 2013

Next Steps

Q4 2012: Decision to carry out additional work on known deposit extension on the mining lease

Stawell Production Facility

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Northern Territories

Suspension of surface mining occurred in Q2 2012

Ramp-up of Cosmo Mine

Production 40,000 to 45,000 ounces in 2012

State of Victoria

Integration of Fosterville and Stawell mines in Victoria.

Decision to ramp down U/G operations at Stawell

Production 151,000 to 161,000 ounces in 2012

Q3 – YTD Production

93,376 ounces

141,625 ounces, including FGM and SGM production prior to May 5th

Production 2012 – Outlook

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2012 Production Profile

2012 Cash Costs

2012 Cost Guidance $1,100 - $1,300 $2,028.00

$1,167.00 $1,176.00

$0.00

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

Q1 Q2 Q3

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

0

10,000

20,000

30,000

40,000

50,000

60,000

Q1 Q2 Q3 Q4

Cu

mu

lati

ve O

un

ces

Ou

nce

s

CRK Total Total CRK Cumulative Total Cumulative

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Strategy

Exploration Goals

2012 Objectives

Exploration

Assessment of information collected in 2011 for

identification of next opportunities

Assessment of recently acquired land position in State of

Victoria

Advance Union Reefs & Maud Creek projects

Increase reserves from 1.1MM oz to 1.5MM oz

Increase resources from 7.6MM oz to 10.0MM oz

Growth through greenfield and brownfield exploration

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Our Growth Strategy

Short Term Medium Term Long Term

Maximize Value of Gold Assets

Advance projects such as Union Reefs and Maud Creek

Assessment of expanded land position in the State of Victoria

Consolidate assets

Explore

Continued investment in exploration on an annual basis

Focus on successful conversion of existing resources into reserves

Prioritization of higher quality deposits and projects

Value creating acquisitions

Focus on Higher Quality Ore

Ramp-up of Cosmo mine

Integration of Fosterville and Stawell operations

Reap benefits of increased scale and synergies, both in operations and in cost of capital

Permitting of International Mine (Pine Creek)

Page 15: Crocodile Gold Corporate Presentation December 2012

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Capital Structure

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Share Structure (At November 30, 2012)

Basic: 406.4 Million

Warrants: 56.75 Million

Options: 029.8 Million

Fully Diluted: 493.35 Million

Market Capitalization: $142.0 Million

52 Week Trading Range $0.29 – $0.80

Source: Consensus estimates, Bloomberg. EDV pro forma acquisition of Avion.

Third Quarter 2012 Results

At September 30, 2012 (US$): Total Asset Value: 473,498,092

Cash Position: $20,383,957

Three months ended September 30, 2012 (US$): Revenue: $78,721,463

Operating Earnings: $7,028,408

Cash from Operations: $32,511,747

1.4x

1.2x

0.9x

0.8x 0.8x

0.7x 0.7x

0.5x

0.4x

0.2x

GSC RSG OGC SBM TGZ EDV BAA JAG CRK ORA

52 Week Share Price Performance Gold Producer P/NAV Multiples

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

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Management

Chantal Lavoie, P. Eng., President & Chief Executive Officer, Chairman

Mr. Lavoie is a Professional Mining Engineer with extensive experience in mining operations and projects. Mr. Lavoie has spent the last eight years at De Beers Canada Inc. ("De Beers") where he was responsible for the Canadian operations of De Beers including Snap Lake and Victor mines, the Gahcho Kue project and was acting CEO of De Beers. Mr. Lavoie has also worked for Barrick Gold Corporation at Goldstrike in Nevada and Aur Resources Inc. at the former Louvicourt mine.

Rob Dufour, Director of Finance, Interim Chief Financial Officer

Mr. Dufour is a Chartered Accountant with over 10 years of finance and accounting experience. He started his career with the Toronto office of PriceWaterhouseCoopers and later joined Northgate Minerals Corporation as Corporate Controller and subsequently was promoted to Group Financial Controller for Northgate Australian Venture Corporation (NAVCO), which was more recently acquired by Crocodile Gold Corporation.

Bill Nielsen, P. Geo, Vice President Exploration

Mr. Nielsen is an accredited geologist with over 35 years of worldwide mineral exploration and development experience. Most recently, he has been working as a senior industry consultant to mining exploration companies working with a variety of commodities in various countries and geological environments. From 2003 to 2008, Mr. Nielsen was the V.P. Exploration of Nevsun Resources Ltd., where he played a significant role in the discovery of the Bisha gold-VMS deposit in Eritrea. He has worked for companies within the Forbes & Manhattan Group since early 2010.

Colinda Parent, Vice President Corporate Development

Ms.Parent has extensive capital markets experience having spent over 15 years in institutional equity sales and 5 years in investment banking in Toronto. Previously, Ms. Parent was one of the founders of Sandfire Securities, a Toronto-based institutional equity boutique focused on raising funds for and trading stocks in small and mid-cap Canadian-listed resource companies. She also served on the Board and Executive Committee at Sandfire. Ms. Parent

is a CFA charter holder and has an MBA from the Ivey School of Business.

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Operations Team :

Ian Holland, General Manager, Stawell Gold Mine

Troy Cole, General Manager, Fosterville Gold Mine

Peter Crooks, General Manager, Northern Territory

Page 17: Crocodile Gold Corporate Presentation December 2012

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Board Of Directors

George Faught, CA, Lead Director

Mr. Faught is a Chartered Accountant with over 25 years of senior management experience and is currently the Chief Executive Officer of Aberdeen International Inc. He has served as the Chief Financial Officer of publicly traded companies in the natural resources, financial services and pharmaceutical industries. Mr. Faught has broad financial management, corporate development and operating experience and from 1999 to 2005 served as the Chief Financial Officer for North American Palladium Ltd., a mid-tier platinum group metal producer. Prior to that, he served as Chief Financial Officer for Hudson Bay Mining & Smelting Co. Ltd., an integrated base metals producer, and William Resources Inc., an international gold producer. He also serves as a director of several public companies in the resource sector.

Robert Getz, MBA, Director

Mr. Getz is a managing director and a co-founder of Cornerstone Equity Investors, LLC. Mr. Getz has strong experience in public and private debt and equity financings and domestic and international mergers and acquisitions. Mr. Getz has served as a director of several public and private metals and mining companies. He completed a B.A., cum laude, International Relations at Boston University in May 1985, and obtained his MBA, Finance in February 1990 from The Stern School of Business at New York University.

Kevin Conboy, Director

Mr. Conboy was President and Chief Executive Officer of Acordia, Inc., a subsidiary of Wells Fargo based in Chicago. As well, he served as Chief Executive Officer for the NIA Group of Paramus, New Jersey. Mr. Conboy possesses a wealth of experience in the financial markets and has considerable exposure to financial instruments and business transactions. He sits on a number of corporate and charitable boards. Mr. Conboy completed a B.A. from Colorado State University in 1973.

Peter Tagliamonte, P. Eng., Director

Mr. Tagliamonte is a professional mining engineer and also holds an MBA from the Richard Ivey School of Business, at the University of Western Ontario. He is currently the President and CEO of Sulliden Gold, the former President and CEO of Central Sun Mining Inc. and former Chief Operating Officer of Desert Sun Mining Corp. where he was responsible for the development of the Jacobina Mine in Brazil into a 4,200-tonne-per-day mining operation. Mr. Tagliamonte has over 25 years of progressive managerial experience building and operating mines worldwide, notably in Central and South America. In 2005, he received the Mining Journal's "Mine Manager of the Year" award in recognition for his work in the mining sector.

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On February 29, 2012 a new Board of Directors was constituted and Chantal Lavoie was appointed as Chairman.

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Investor Contact Information

Chantal Lavoie Chairman, President and CEO 416-861-2964 [email protected]

www.crocgold.com Find us on:

A Member of the Forbes & Manhattan Group of Companies

Investor Relations Rob Hopkins 416-861-5899 [email protected]

TSX: CRK OTCQX: CROCF FRANKFURT: XGC

Crocodile Gold Corporation

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