December2009
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Transcript of December2009
Experienced Management
Infrastructure
Frasergold
Table Mountain& Taurus
Permitted
Cassiar Gold Mine
Building British Columbia’s Next Gold ProducerCorporate Presentation December 2009
Forward-Looking Information
Certain statements herein may contain forward-looking information within the meaning of applicable securitieslaws. Forward-looking information appears in a number of places and can be identified by the use of wordssuch as “intends” 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 includesstatements regarding the Company’s exploration and development plans with respect to its properties and theestimation of mineral resources and are subject to such forward-looking risks, uncertainties and other factorswhich may cause the Company’s actual results, performance or achievements, or industry results, to bematerially different from any future results, performance or achievements expressed or implied by suchforward-looking information. Such risks include gold price volatility, change in equity markets, the uncertaintiesinvolved in interpreting geological data, increase in costs and exchange rate fluctuations, permitting andenvironmental risks and other risks involved in the gold exploration and development industry. There can be noassurance that forward-looking information referenced herein will prove to be accurate, as actual results andfuture events could differ materially from those anticipated in such statements or information. Also, many ofthe factors are beyond the control of Hawthorne Gold. Accordingly, readers should not place undue reliance onforward-looking information. All forward-looking information herein are qualified by this cautionary statement.The Company does not undertake to update such forward-looking information except in accordance withapplicable securities laws.
A feasibility study has not been completed for any projects discussed in this presentation and there is nocertainty the disclosed targets will be reached nor that the proposed operations will be economically viable.
Michael Petrina, P.Eng., the Company’s Vice President of Mining and a Qualified Person as defined by NationalInstrument (“NI”) 43-101, has reviewed and approved the technical information contained in this presentation.
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Share Structure
Issued and Outstanding 81,525,211
Stock Options ($0.40 - $1.60) 7,038,700
Warrants ($0.30 - $2.25) 13,987,469
Fully Diluted 102,551,380
American Bonanza Gold Corp. 5,750,000 ~(8%)
Institutional Ownership ~25,000,000 ~(26%)
Market Capitalization (as at December 1, 2009) ~$30M
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Investment Highlights
Experienced Management , Operational and Technical Team• Led by respected company builders Michael Beley and Richard Barclay
Co-founded both Bema Gold and Eldorado Gold
• Strong board of directors and advisory team
Dedicated to Growth through drilling, development and acquisitions• Apply Bema/Eldorado Model (short term cashflow)
Advance towards cashflow at profitable mining operation within 3 years from Company inception
On track for production at Cassiar Gold Mine, British Columbia in early 2010
• Aggressive 8,000 to 10,000 metre diamond drill program at Cassiar Gold Camp 2009
Build resource portfolio and develop priority exploration targets for upside potential
• Merger & Acquisitions focus – build out management team, resource and production portfolio to become significant junior gold producer by 2012
Three advanced stage gold projects in British Columbia, Canada
• Table Mountain Deposit - high grade vein deposits
Fully permitted 270 tonnes per day mine, operational mill and tailings impoundment facility
Estimated replacement value for mill facility: ~$30M
• Taurus Deposit - open pit, bulk tonnage opportunity and/or selected smaller high grade open pit opportunities
• Frasergold Deposit - open pit, bulk tonnage opportunity
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Michael Beley Chairman and Director40 + years experience in senior executive roles in mining industry; former co-founder, VP & Director of Eldorado Gold Corp.; former co-founder, VP & Director of Bema Gold Corp.; co-founder of Polaris Minerals; and former Director of Nevada Pacific Gold
Experienced Management Team
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Peter A. Ball VP Corporate Communications20+ years mining, brokerage, marketing/communication and technical experience; previous roles with Eldorado Gold, Echo Bay Mines, Hudson Bay Mining and Smelting ltd., RBC Dominion Securities; graduate of Haileybury School of Mines and Georgian Business School
Richard Barclay President, CEO and Director40+ years experience in senior executive roles in financial sector; former founding CEO, President, & Director of Eldorado Gold Corp.; former co-founder, CFO and Director of Bema Gold Corp.; and former President, CEO & Director of Nevada Pacific Gold
Michael Petrina VP Mining25+ years experience in senior management , operational and consulting roles for such companies as Adanac Molybdenum Corporation, Pan American Silver Corporation, Miramar Mining, TVX Gold, and Kilborn Engineering Pacific Ltd.; B.Sc. Engineering, P.Eng and MBA
David McAdam CFO (Interim)25 years of international experience in senior financial roles. Mr. McAdam previously held the positions as CFO of Eastern Platinum Limited, and executive and advisory positions for Yellowcake Mining Inc., and other US/CDN based Co.’s; B. Comm.
Marlin Murphy Manager of Environmental and Governmental AffairsOver 25 years of environmental and government relations experience; previous senior management positions with EBA Engineering, Compliance Energy Corporation, Barrick Gold Corporation, Homestake Mining and Cassiar Mining Corporation
Technical Team and Advisors
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David Rhys Board AdvisorPrincipal of Panterra Geoservices Inc.; specializes in the application of structural geology techniques to the assessment of mineral deposits; has extensive experience in the evaluation of gold deposits at all phases of development
Dr. John-Mark Staude Board Advisor20+ years of international exploration experience in precious and base metals; held various positions of increasing responsibility with Kennecott, BHP Billiton, and Teck Cominco
Bernard Kahlert Director35+ years of international exploration experience primarily focused on gold and base metals; held various positions with mining companies in Australia, United States and Canada; graduate in Geology and P.Eng
Jack McClintock Board Advisor/Consultant30+ years experience in all facets of the mineral exploration business; held various positions of increasing responsibility with Rio Algom, Billiton and BHP Billiton, the last being Global Exploration Manager with BHP Billiton; graduate degrees in Geology and MBA
Dale A. Sketchley Director30 + years experience encompassing all phases of exploration, QAQC, geological modelling and resource evaluation; Mr. Sketchley has been involved Ivanhoe Mines, Union Minié, Chevron, Denison, Erickson Gold, Cooke Geological, MineQuest, and Placer Dome
British Columbia – A Pro Mining Province
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FrasergoldDeposit
TaurusDeposit
Table Mountain Deposit (Cassiar Gold Mine)
Cassiar Gold District
Cariboo Gold District
Cassiar Gold Camp
Table Mountain and Taurus Deposits
Progress To Date
• Increased land position by 245%
• Purchased remaining 70% of Taurus Deposit
• Completed geological compilation model of 40 years of data
• Completed 2,536 metre surface diamond drill program at East Bain zone
• Rehabilitated underground access workings at Cassiar Gold Mine
• Re-established exploration and mining camp
• Completed property-wide geophysics program
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• 58,901 hectare claim boundary
• Historical production of ~500,000 ounces
Table Mountain Deposit & Cassiar Gold Mine
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High-Grade Gold System
• NI 43-101 Mineral Resource Estimate
• Deposits hosted in extensive quartz-carbonate-gold vein systems similar to some of Canada’s largest gold camps, including Timmins, Kirkland Lake and Val d’Or
2009 Exploration & Development Program
• Commenced 8,000 to 10,000 metre diamond drill program (June 4, 2009) focused on:
Priority zones identified at Table Mountain to potentially increase resource base
Regional targets to identify new zones
• Commenced underground pre-development at East Bain zone to prepare for production at Cassiar Gold Mine (July 23, 2009)
• Commenced surface soil sampling, trenching and property-wide reconnaissance exploration program (June 4, 2009)
• 23 km of road access throughout property to access 13 adits and ~25 km underground workings
Taurus Gold Deposit
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Highlights
• NI 43-101 Mineral Resource Estimate
• High-grade zones identified within resource; selected smaller high grade open pits
• Open pit, bulk tonnage opportunity
• Historical production of 32,700 ounces from high grade zones within deposit
2009 Exploration & Development Program
• Commenced surface exploration drill program to define high grade zones within Taurus deposit for smaller open pits to use as supplemental feed for Table Mountain mine & mill complex
• Complete metallurgical studies on mineralized zones for compatibility with mill flowsheet
• Commenced Bulk Sample August 20, 2009
Oro Vein
Taurus Project – Summer 2009
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Examples of potential high grade zones within
Taurus Low Grade deposit
Infrastructure, Resources, PeopleReady for Production (July 2009)
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Mine and Mill Site 270 tpd Mill Facility Entering East Bain Zone
Underground at Table Mountain Developing Ramp to East Bain Taurus High Grade Veins at Surface
Taurus pre-stripping, drilling, trenching Taurus Drilling Zone #1 Reviewing Core (President and Advisors)
Resource Opportunities
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Main Mine
Cusac Mine
East Bain
Erickson Creek Fault
14 Adit
21Adit
28 Adit
Resource Opportunities
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Erickson Creek Fault
Cassiar Gold Camp Resource & Development Strategy
• Utilize completed geological data compilation model of 40 year history of camp to identify priority drill targets (data includes drill holes, maps, surveying, and geophysical information)
• Build near-term gold resource portfolio through aggressive surface drill programs
• Continue with regional reconnaissance exploration to identify targets for long term continued growth of resource portfolio across significant land position
• Complete underground rehabilitation and pre-production development
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Cassiar Gold Camp 2008 Progress &Q1 – Q4 2009 Development Plan
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Sept
Table MountainAccess / Surveying / UG Rehab.
2008 2009
Oct Nov Dec Q3Q1 Q2
Resource Modeling
Diamond Drilling
Taurus
Resource Modeling / Expansion
Cassiar Gold MineCamp / Site Prep / Equip. / Misc.
MillRehab./Maintenance/Prep.
Infrastructure
Resource Development
Eng./Mine Planning/Development
Bain
GIS Data Compilation
Q4
Metallurgical Study
Bulk Sample
Diamond Drilling
Frasergold Summary
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2007/08 Drilling
Earn up to a 60% interest in the property from Eureka Resources Inc.
• Completed an independent National Instrument 43-101 technical report on November 15, 2009.
• Open pit, bulk tonnage opportunity
• ~50,000m of historical diamond and RC drilling and 300m underground workings (includes 3,617m in 2007 and 10,405m in 2008)
• Extensive infrastructure with road access directly to site
• 65 different visible gold occurrences logged in 60% of the 58 completed holes; drilling highlights: 48.77m averaging 5.84 g/t Au, including 4.38m averaging 63.05 g/t Au
Deposit Resource Resource (Oz Au) Resource (Oz Au) Company Stage Cash CostCut-off
(g/t) P & PGrade(g/t) M & I
Grade(g/t) Inferred
Grade(g/t) Per Oz
Paracatu, Brazil 0.18 18,162,000 0.400 4,267,000 0.380 450,000 0.370 Kinross Operation $373
Fort Knox, Alaska 0.43 3,807,000 0.470 1,723,000 0.550 35,000 0.550 Kinross Operation $344
Marigold, Nevada n/a 1,020,000 0.690 510,000 0.550 460,000 0.480 Goldcorp Operation $308Frasergold, British Columbia* 0.30 611,959 0.559 1,228,457 0.507
Hawthorne Gold / Eureka Resources
Advanced Exploration N/A
Spanish Mtn, British Columbia 0.30 3,940,000 0.581 460,000 0.574
Skygold Ventures Ltd.
Advanced Exploration N/A
Maricunga, Chile n/a 6,541,000 0.720 2,290,000 0.610 2,400,000 0.560 Kinross Operation $447Round Mtn, Nevada 0.42 1,621,000 0.600 529,000 0.640 450,000 0.404 Kinross Operation $316
* The Frasergold current resource is base is based on an approximate strike length of 1.5 km within the 10 km mineralized zone on the Frasergold Property
Notes:P & P - Proven and ProbableM & I - Measured and Indicated
Other:All information presented above is based on public information gathered from company websites.
Frasergold Deposit Comparison
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Due to the uncertainty of Inferred Mineral Resources it cannot be assumed that all, or any part of this resource will be upgraded to an Indicated or Measured Resource as a result of continued exploration. To
justify upgrading of the Mineral Resource to a Mineral Reserve, demonstrated economic viability is required. 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, socio-political, marketing, or other relevant issues.
TABLE MOUNTAIN DEPOSIT AND CASSIAR GOLD MINE
• Continue resource development through surface drilling during 2009 summer/fall; exploration program will consist of 8,000 to 10,000 metres of diamond drilling, trenching, mapping and soil sampling
• Complete engineering and mine planning• Complete pre-production mine development leading towards production at Cassiar Gold Mine
TAURUS
• Continue surface drilling and metallurgical work to define high-grade small open pit opportunities to supplement mill feed at Cassiar Gold Mine
FRASERGOLD
• Completed An independent National Instrument 43-101 technical report titled, "Report on the 2007 and 2008 Drill Programs on the Frasergold Property, Cariboo Gold District, B.C.”, prepared by K.V. Campbell, Ph.D, P.Geo of ERSi Earth Resource Surveys Inc. and G.H. Giroux, MA.Sc, P.Eng. of Giroux Consultants Ltd. -dated November 15, 2009; reviewing opportunities and action plan for mining camp and project
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Exploration and DevelopmentGoing Forward
NI 43-101 Mineral Resource Estimate
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Projects
Measured Indicated Inferred
Tonnes Gradeg/t
Contained Au Tonnes Gradeg/t
Contained Au Tonnes Gradeg/t
Contained Au
Kg Oz Kg Oz Kg Oz
East Bain* 20,101 21.21 426.37 13,708 1,158 68.57 79.38 2,552
Taurus** - - - 33,055,000 0.990 32,829.72 1,055,500
Frasergold 11,470,000 0.595 6,824.65 219,418 22,610,000 0.540 12,209.40 392,541 75,310,000 0.507 38,209.28 1,228,457
Total 11,470,000 0.595 6,824.65 219,418 22,630,101 0.558 12,635.77 406,249 108,366,158 0.655 71,118.38 2,286,509
• An independent National Instrument 43-101 technical report titled, "Report on the 2007 and 2008 Drill Programs on the FrasergoldProperty, Cariboo Gold District, B.C.”, prepared by K.V. Campbell, Ph.D, P.Geo of ERSi Earth Resource Surveys Inc. and G.H. Giroux,MA.Sc, P.Eng. of Giroux Consultants Ltd. -dated November 15, 2009, is available on www.sedar.com and on Hawthorne’s website.The Company is earning up to 60% of the project from Eureka Resources and 100% of ounces from project are shownabove***.
• *Update of Technical Report on the Table Mountain Property, Liard Mining District, BC on the Table Mountain Property prepared byBeacon Hill Consultants (1988) Ltd. - June 1, 2008. For 68.57 g/tonne cut values, individual assays greater than 68.57 g/tonne Au arecut to 68.57 g/tonne Au.
• ** An updated NI 43-101 report (Wardrop Engineering Inc. – Updated Resource Report on the Taurus Deposit – Liard Mining District,BC - dated March 11, 2009) regarding the Taurus Property is available on www.sedar.com. Taurus NI 43-101 resource estimateconversion equates to 33.055 million tonnes at 0.99 g/t Au. This uses a cut-off grade of 0.50 g/t Au.
***About the Frasergold Option Agreement Pursuant to an option agreement dated October 31, 2006 between Hawthorne and Eureka, Hawthorne can earn a 51% interest in the Frasergold Project by
completing sufficient exploration expenditures totaling $3.5 million (expended), completing a feasibility study by April 30, 2010 (April 30, 2012 with extensions) andmaking cash payments totaling $175,000 ($175,000 paid) before October 31, 2009. Hawthorne can earn a further 9% (for a total of 60%) by arranging financing for70% of the estimated capital costs for production.
Contact:
For more information please contact:
Todd Hanas, Investor Relations
Telephone: 604.484.3668
Toll Free: 866.869.8072
Email: [email protected]
www.hawthornegold.com
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