cibc whistler conference 2019 · 7.4 g/t au/65.7 m including 14.4 g/t au/26.1 m tm00392 17.1 g/t...

CIBC Whistler Conference 2019

Doris Mine and Plant

Caution Regarding Forward-Looking Information

Readers are cautioned that we will be making forward-looking

comments. To fully understand the risks inherent in our comments,

forecasts and estimates you are encouraged to read our

Management Discussion and Analysis for the third quarter ended

September 30, 2018 together with our Financial Statements for the

same period.

Strategy to Deliver Value

❑ Establish operational excellence at Doris Mine❑ Plant: YE Target 2,000 tpd and 90% recovery, then push to exceed

❑ Mine: YE Target 1,500 tpd underground with grade discipline, then push to exceed

❑ Permits now in place for Hope Bay Belt development

❑ Near-term Madrid development to provide additional ore to Doris

❑ Hope Bay development plan: high value / prudent risk assessment❑ Generate discrete project returns & build infrastructure for belt-wide optionality

❑ New PFS in late 2019 for Hope Bay Belt

❑ Value-focused exploration strategy❑ Grow resources at Doris to extend life

❑ Focus Madrid drilling on highest likelihood priority production targets

❑ Establish scale at Boston to inform infrastructure decisions

❑ Prioritize 90+ regional exploration targets

❑Choose and actively manage the right risks to take as a single-asset

junior producer/developer 2

Permitting Complete

❑ Underground mines at Doris, Madrid North, Madrid South and Boston

❑ Surface crown pillar recovery at Madrid North – provides option for

near-term ore feed to Doris plant

❑ 55km all-weather road from Madrid to Boston

❑ Security: no “over-bonding” and spread over 15 life of mine installments

❑ Permitted infrastructure is well beyond our 2015 PFS to provide flexibility

to enhance project economics; alternatives, not commitments:

❑ 6,000 tpd processing across Hope Bay Belt

❑ Pre-concentration at Madrid

❑ Boston can be built similar to Doris operating infrastructure

❑ Port expansion

❑ Wind power generation

❑ Excellent support from Inuit Communities

❑ Permitting achieved substantially ahead of our original schedule 3

Progress on Key Value Drivers

Q4 2017 Q3 2018 October

Plant

Recovery (%) 69 80 82

Throughput (tpd) 757 1,385 1,900

Mine

Production (tpd) 618 1,123 1,975

Grade (g/t) 9.1 8.4 7.3

Development (m) 1,500 1,800 n/a

Gold Production (oz) 21,200 33,100 10,470

Gold Poured (oz) 17,500 33,460 10,540

4

1.12x

0.93x

0.80x

0.76x

0.73x

0.67x

0.65x

0.65x

0.57x

0.51x

0.48x

0.47x

0.32x

SSR Mining (SSRM)

Wesdome (WDO)

Torex (TXG)

Atlantic Gold (AGB)

SEMAFO (SMF)

Alacer (ASR)

Golden Star (GSC)

TMAC (TMR)

Roxgold (ROXG)

Asanko (AKG)

Pretium (PVG)

Argonaut (AR)

Guyana (GUY)

TMAC’s Value Proposition

Hope Bay Located in Tier One Jurisdiction

One of the World’s Highest Grade Gold Camps

Near-Term Growth from Plant Expansion and Optimization

Opportunities for NAVPS Growth Through Optimizing Development of Three Defined Mines

Unparalleled Exploration Upside to Drive Resource Growth

Production Expansion Opportunity as New Deposits Developed

Rationale For Premium Multiple Street Consensus P/NAV (Ratio)

5

Source: FactSet, street research

Note: Medians exclude TMAC. Market data as of 16-Jan-19.

1. Calculated as attributable reserves of producing assets divided by attributable 2019E gold equivalent production.

Mine Life Index (Years)(1)

19.9 19.617.9 17.3

12.0 11.89.6

7.3 6.9 6.7 6.2 6.04.6

TMR

PV

G

AK

G

GU

Y

SSR

M

ASR

AR

WD

O

TXG

SM

F

GSC

AG

B

RO

XG

Denotes > 50% of Gold

Reserves in Canada/USA

Overall Median: 0.66x

Canada/USA

Median: 0.84x

Operations

6

Improving Plant Performance

7

Successful Ramp Up of Plant

8

Expansion of Gravity Effort

Grind/Flotation Feed Surge bins (2)

Remove cleaner Jigs

Move Spinners to Crushing Circuit

Falcon SB1350 (2)

KnelsonXD20 (2)

Replace Regrind Cyclones (2)

Falcon C2000 (2)

9

Ramp Up Doris Mine

• Mine is ramping up to targets

• High grade Hinge, BTD and Doris Crown Pillar important to Q4 and 2019 plan

• Doris BTD underexplored and highly prospective – drilling platforms being established

with exploration plan

10

Doris North Doris Connector Doris Central

Extension

East Limb

BTD Connector BTD Central

N Hinge

Crown Pillar

Doris North BTD

Planned Development

Existing Development

Mining Area Timing

Doris North

Hinge

Q4-18 to

Q2-19

Doris North

Crown PillarQ4-18

Doris North

BTD

Q4-18

Onward

Doris

Connector

Q4-18 to

Q4-20

Doris

Central

Q4-19 to

Q4-21

Doris BTD

Connector

2019

Exploration

Doris BTD

Central

2020

Exploration

Finance

11

2018 Cash Costs and AISC (US$/oz)

Q1 2018 Q2 2018 Q3 2018

Ounces Sold 19,540 25,760 32,140

Cash Costs $1,049 $928 $825

Less: Non-Cash Inventory NRV Adjustment(2) (-) (12) (47)

Cash Costs excluding NRV adjustment $1,049 $916 $778

Corporate general and administration costs 169 132 103

Underground development 215 198 149

Site Infrastructure projects 174 104 139

All-in sustaining costs before the following $1,607 $1,350 $1,169

South dam 190 256 19

Marine outfall pipeline 10 20 131

Gravity concentrator project - 4 90

Add back: Non-Cash Inventory NRV Adjustment(2) - 12 47

AISC $1,807 $1,642 $1,456(2)The net realisable value adjustment on ore stockpiles is a non-recurring adjustment. Refer to the management discussion and analysis for the third

quarter of 2018 for further details. 12

(3) AISC excluding the south dam, marine outfall pipeline, gravity concentrator project and inventory NRV adjustments - Cash Cost excluding

inventory NRV adjustments

Gold Production and Costs

(3)(3)

13

Key Financial Metrics

Q2 2018 Q3 2018

Gold Sold (ounces) 25,760 32,140

Revenue (C$ millions) 43.3 50.3

Realized Gold Price (US$/oz) 1,300 1,201

Cash Costs (US$/oz) 928 825

AISC (US$/oz) 1,642 1,456

Cash flow from Operating Activities (C$ millions) 14.6 6.1

EBITDA (C$ millions) 4.9 15.7

Capital Expenditures (C$ millions) 27.1 28.4

Ending Unrestricted Cash Balance(4) (C$ millions) 24.2 13.6

Debt(4) (C$ millions) 205.2 202.2(4) Excludes the impact of the net proceeds of $88.0M from equity issue closed October 3, 2018 and the payments on October 31, 2018 to reduce debt

from US$160M to US$125.8M 14

Exploration

15

Doris North High Grade Gold

0

10

20

30

40

50

60

70

80

90

0

10

20

30

40

50

60

70

Ye

llow

kn

ife

He

mlo

Re

d L

ake

Kirkla

nd

-

Lard

er

Lake

No

ran

da

Ca

dill

ac

-Va

l-

D'O

r

Tim

min

s-

Ma

the

son

Ho

pe

Ba

y

Str

ike

Le

ng

th (

km

)

Cu

mu

lativ

e R

eso

urc

e (M

oz)

1

Cumulative Resources (M oz Au)

Strike Length (km)

?

1 “Cumulative Resource” refers to the estimated sum of historical production and current resource

estimates. Source: Metals Economics Group, Intierra, and company reports.

?

?

Hope Bay and Archean Greenstone Belts

Madrid

20 km

Doris

Boston

80 km

Measured and Indicated Resources of 17.8 Mt at

8.6 g/t gold containing 4.9 M ounces

16

2019 Exploration Strategy

17

Doris

$6M

❑ Extend BTD with 2019 access to another 100m strike length

❑ Infill and Expand Connector and BTD Connector

❑ Advance Naartok East, Naartok West and Suluk towards development

❑ Current Suluk winter program with objective to grow resource and

support metallurgical testing

❑ Summer 2019 program to (1) test high grade plunge near surface and

(2) explore south from Boston along 6km alteration

❑ Winter 2019/2020 program from ice to test high grade plunge ~1,000m

❑ 2020 decision to remove ice plug and begin exploring from >2,500m of

underground development

❑ Lateral extension at Doris

❑ Madrid regional to south along route of permitted road to Boston

❑ Boston regional

Madrid

$3M

Boston

$6M

Regional

$5M

19

TM5015611.3 g/t Au/16.2 mIncluding 26.2 g/t Au/5.6 m

TM50168126.5 g/t Au/0.7 mAnd 38.2 g/t Au/9.7 m

TM5017216.4 g/t Au/6.5 m

• BTD Extension remains open

to the north

• BTD ramp development will

provide drill platforms for

drilling on additional ~100 m

strike to the north in 2019

Doris: Extend BTD Resources


-500 m

18

BTD North Resources

Indicated:

0.07 mt @ 18.3 g/t Au, 40 koz Au

Inferred:

0.20 mt @ 14.7 g/t Au, 94 koz Au 0 m

TM5023552.8 g/t Au/1.9 m

Doris: Expand Connector and BTD Connector

19

Potential UG

development

BTD Connector Resources

Indicated: 0.14 mt @ 8.4 g/t Au, 38 koz Au

Inferred: 1.06 mt @ 7.5 g/t Au, 254 koz Au

Connector-Central Resources

Indicated: 1.54 mt @ 9.4 g/t Au, 463 koz Au

Inferred: 0.20 mt @ 5.8 g/t Au, 38 koz Au

Open

21



Naartok West

Naartok East

High Grade

Plunge

W E

• 44 drillholes completed in 2018 drill

program

• Focused above 150 metre level,

within and below the Naartok West

crown pillar recovery area

• Confirmed the plunge and

continuity within wide, high grade

core

Madrid: Naartok West Advancing to Development

0 m

-500 m

20

Naartok Resources (West and East)

Indicated:

7.44 mt @ 7.5 g/t Au, 1.8 Moz Au

Inferred:

1.12 mt @ 6.8 g/t Au, 0.2 Moz Au


22

N S

TM0042210.4 g/t Au/9.6 m


• 31 drillholes completed in 2018 drill

program

• Materially added Au ozs within the

crown pillar, not previously

identified with the wide spaced

historical drilling

• Potential opportunity to add Au ozs

within the crown pillar in 2019 with

additional drilling

Madrid: Naartok East Advancing to Development

Structural Trend


0 m

-500 m

TM0044111.0 g/t Au/12.5 m

21

Naartok Resources (West and East)

Indicated:

7.44 mt @ 7.5 g/t Au, 1.8 Moz Au

Inferred:

1.12 mt @ 6.8 g/t Au, 0.2 Moz Au

Naartok

East

Naartok

West

RandSuluk

Crown Pillar Beneath Patch Lake

Indicated

Inferred

Inferred

Madrid: Suluk Zone Advancing to Development

250 m

N

0 m

-500 m

• Potential for 2019 winter drill program from ice to increase and upgrade mineral resources as well as supporting metallurgical testwork

22

Suluk Resources

Indicated: 3.20 mt @ 7.7 g/t Au, 0.8 Moz Au

Inferred: 2.58 mt @ 6.3 g/t Au, 0.5 Moz Au

Doris

Madrid

Au > 10 g/t High Resolution

Gravity Image1st order

Structure

2nd order

Structure

Gold

Deposit

Pogey

Kamik

North Doris

Quaqtuq

Dinger

Gunn

Madrid Regional: Establish

New Economic Deposits

23

• > 25 Years of modern exploration

• 4 owners

• > 1 million metres of historic drilling, more than 95% on established

deposits

• Enormous amount of high quality data available

• >90 Exploration targets identified

Exploration Datasets

Airborne geophysics Geological mapping

Magnetic Outrcrop sampling

Electro-Magnetic Gold in glacial till sampling

High resolution gravity gradiometry Diamond drilling

Ground geophysics RC drilling

Magnetic

Induced polarization

Seismic

11SBD411A

12.46m @ 10.16 g/t Au

12.38m @ 10.62 g/t Au

2.7m @ 16.1 g/t Au

(-820m level)

94NOD118

9.1m @ 16 g/t

93NOD047

2.5m @ 238 g/t Au

S00243

5.7m @ 35.1 g/t Au

B3/Newton

Intersection

N S

B2 Zone

250 m

-50m

-100m

-200m

-300m

-400m

-500m

11SBD414

7.1m @ 28.5 g/t Au

4.8m @ 17.3 g/t Au

7.8m @46.6 g/t Au

(-600m level)

S04-322

3.7m @ 36.3 g/t Au

Boston: Increase Resource Scale

24

Significant Growth Potential of Established Deposit High Priority Regional Targets

Boston ResourcesIndicated: 3.7 Mt @ 9.2 g/t Au

1,096,000 ozs Au (~ 3,200 ozs/vertical metre)

Inferred: 1.4 Mt @ 7.4 g/t Au

330,000 ozs Au

1 Km

Boston Deposit

Alteration Trend

N

25.6 g/t Au/1.2m

37.5 g/t Au/1.0m

> 10 g/t Au

Surface Sample

SO-293

8.7m @56.6 g/t Au

(-1020m level)

• Complete gravity enhancement in Plant and deliver 90% recovery

• Continue to build on successes of increasing plant throughput

• Feed the Plant

• Take advantage of three production areas and one development

area to continue ramp up of Doris mine production

• Deliver plan for development of Madrid, including 2019 ore

• Execute 2019 exploration plan to support near-term production and

ongoing belt-wide development

• Advance analysis of optimized Hope Bay Belt development, including

completion of new PFS in late 2019

Near-Term Priorities

25

Appendices

26

Mineral Reserves (as at June 30, 2017)

Category/Deposit Tonnes(t 000)

Grade(g/t Au)

Contained Au(oz 000)

Proven

Doris 493 15.8 250

Boston 657 8.5 180

Total Proven 1,150 11.6 430

Probable

Doris 1,652 8.3 442

Madrid North 8,350 6.7 1,802

Madrid South 692 10.3 230

Boston 2,687 8.1 703

Total Probable 13,381 7.4 3,177

Total P & P

Doris 2,145 10.0 692

Madrid North 8,350 6.7 1,802


Boston 3,343 8.2 883

Total P & P 14,531 7.7 3,607

27

Mineral Resources (as at June 30, 2017)

Category/Deposit Tonnes(t 000)

Grade(g/t Au)

Contained Au(oz 000)

Measured

Doris 281 22.9 207

Boston 608 10.3 201

Total Measured 889 14.3 408

Indicated

Doris 1,838 9.6 567

Madrid North 11,443 7.5 2,759


Boston 3,103 9.0 895

Total Indicated 16,954 8.3 4,503

Total M&I 17,843 8.6 4,911

Inferred

Doris 1,521 8.2 400

Madrid North 4,125 6.4 843


Boston 1,393 7.4 330

Total Inferred 7,459 7.1 1,69428

Information Regarding Scientific and

Technical Information

• Notes:

• CIM definitions were followed for Mineral Reserves and Mineral Resources.

• Numbers may not add due to rounding.

• Mineral Reserves are estimated using a cut-off grade of 4.4 g/t for Doris and Madrid North. Madrid

South and Boston use a 4.7 g/t Au cut-off grade.

• Mineral Reserves are estimated using an average long-term gold price of US$1250 per ounce and a

US$/C$ exchange rate of 0.85.

• A minimum mining width of 1.5 metres for longhole mining and 3 metres for Drift and Fill mining was

used.

• Density was calculated using the geological block model density field.

• A 95% extraction factor was applied to longhole mining.

• The application of dilution varied by deposit, and depended on stope thickness.

• Mineral Resources are estimated at a cut-off grade of 4.0 g/t Au for Doris and Madrid North, and 4.5 g/t

Au for Madrid South and Boston.

• Mineral Resources are estimated using a long-term gold price of US$1400 per ounce, and a US$/C$

exchange rate of 0.85.

• A minimum mining width of approximately 1.5 metres was used.

• A 50 metre crown pillar allowance was applied to resources located below lakes.

• Doris North has been depleted based on surveyed mining cavities up to the end of May 2017. For the

month of June 2017, a mathematical depletion was used based on production figures and the

average dilution used for the Mineral Reserve estimate for Doris North.

• Mineral Resources are inclusive of those resources converted to Mineral Reserves.

• Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 29

Information Regarding Scientific and

Technical Information

• Several slides reported drill intervals representing down-hole thickness;

true width varies depending on the dip of the drill hole. True widths are

estimated to be approximately 50% to 85% of down hole widths.

Composite intervals are based on geological observations. Gold values

used to calculate composite intervals are uncut.

• Reported historical drill hole intersections have been obtained from

TMAC Resources’ Hope Bay Drillhole Database which has been

independently validated by Roscoe Postle Associates Inc (“RPA”) and

reported in Section 12 - Data Verification of the “Technical Report on the

Hope Bay Project Nunavut, Canada” dated May 28th, 2015.

• Please refer to the news published June 14, 2018 and November 8, 2018

which are both available from TMAC’s website at

www.tmacresources.com for the complete text of the releases covering

the results of this work.

30

cibc whistler conference 2019 · 7.4 g/t au/65.7 m including 14.4 g/t au/26.1 m tm00392 17.1 g/t...

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