washoe county, nevada - bravada gold corp · 2014-12-08 · bva:tsx.v | brt: fse wind mountain –...
TRANSCRIPT
J.A. Kizis, Jr. & J.W. Cox December 12, 2013
BVA:TSX.V | BRT: FSE
The Wind Mountain Low-sulfidation Gold/Silver Project Washoe County, Nevada
M.E.G. Short Course
Some of the statements contained in this presentation may be deemed “forward-looking statements.” These include estimates and statements that describe the Company’s future plans, objectives or goals, and expectations of a stated condition or occurrence. Forward-looking statements may be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, reclamation, capital costs, and the company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as but not limited to; changes in general economic conditions and conditions in the financial markets; changes in demand and prices for the minerals the Company expects to produce; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the Company’s activities; and changing foreign exchange rates and other matters discussed in this presentation. Persons should not place undue reliance on the Company’s forward-looking statements. Further information regarding these and other factors, which may cause results to differ materially from those projected in forward-looking statements, are included in the filings by the Company with securities regulatory authorities. The Company does not assume any obligation to update or revise any forward looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws, whether as a result of new information, future events or otherwise. The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this presentation, that has been prepared by management.
Forward-looking Statement
BVA:TSX.V | BRT: FSE
Wind Mountain - Historic Production by Amax Gold
299,259oz Au recovered from 434,089oz Au mined, with 1,769,426oz Ag recovered (closure since 1997)
BVA:TSX.V | BRT: FSE
Wind Mountain Open Pit
Breeze Open Pit
5
Bravada has 14 exploration & development properties in Nevada ~10,000 hectares
N
Wind Mountain – Post-mineral fault blocks
BVA:TSX.V | BRT: FSE
Wind
deposit
Breeze
deposit
5
Post-mineral faults, down to north and west
N DeepMin
deposit
Water Well
Au
intercept
South End
deposit
Hilltop
deposit
Wind Mtn Geologic Setting
Travertine
Hydrothermal
Breccia
Fossil reeds
Sinter ‘debris’
with fossil reeds
Wind Mtn Geologic Setting
Flow/drip
textures
Banded silica
replacement
BVA:TSX.V | BRT: FSE
Wind Mtn Geologic Setting
sinter
cobbles
siltstone
cobble, now
highly altered
BVA:TSX.V | BRT: FSE
Wind Mtn Geologic Setting
Pencil points to euhedral sanidine
phenocryst (reflecting light), note pink K-
spar alteration in angular fragments to
lower left of phenocryst, also note angular
clasts of black Triassic metasediments
from basement
BVA:TSX.V | BRT: FSE
Rhyolitic intrusive
breccia at North Hill
deposit
Wind Mtn Geologic Setting
Unconsolidated Lake Sediments
(Quaternary)
Unconsolidated clays, silt and sand; variable
thickness.
-Unconformity-
Truckee Fm (U. Miocene-Pliocene)
Mostly tuffaceous sediment, sinter, sinter
rubble, rare felsic ash-flow tuff (4.8 Ma by G.
Rhodes, 2011) & high-level intrusions;
~300m thick.
-Unconformity-
Pyramid Fm (Miocene)
Intermediate to mafic volcanics with interbedded
sediments (24.1-15.1 Ma by G. Rhodes, 2011);
~350m thick.
-Unconformity-
Nightingale Sequence
(Triassic-Jurassic)
Highly folded argillite, phyllite, schist, slate, and
quartzite, intruded by Mesozoic granitic rocks in
places.
BVA:TSX.V | BRT: FSE
Simplified Stratigraphy
100% Bravada owned, Au/Ag open pit/heap leach
2006 – Earn-in option from Agnico Eagle
2007 – Initial NI 43-101 resource estimate
2008 – Discovered “DeepMin” deposit, completed 100% earn in (Agnico Eagle retains 1-2%NSR)
2010 – Positive PEA @ $850/oz Au, IRR = 15%
• oxide, low strip ratio, good metallurgy, great infrastructure, expansion possibilities
2011 – 50-hole program to expand shallow oxide resource
• Metallurgy, Biology, & Cultural studies completed; No significant issues identified
2012 – Improved PEA @ $1,300/oz Au & $24.42/oz Ag, IRR = 29%, Pre-tax NPV@5% = $42.9MM,
increased NI 43-101 Resource (oxide at 0.005 oz Au/ton cut off) • Indicated = 570,500oz Au with 14,736,000 oz Ag
• Inferred = 354,300oz Au with 10,115,000 oz Ag
2012/13 – 19-hole program to test exploration targets
• Expanded Au/Ag mineralization between the Breeze and DeepMin deposits
• Negatively tested three areas, including a close-in heap site that can now be used to reduce operating costs
• Currently evaluating a possible Phase I open-pit/crush/heap-leach operation w/ low capital requirements
Wind Mountain Milestones
BVA:TSX.V | BRT: FSE 6
BVA:TSX.V | BRT: FSE
Wind Mountain 2012 NI 43-101 Resource Update
7
Mine Development Associates (MDA)
A Technical Report for an independent Preliminary Economic Assessment (PEA) and resource estimate was conducted by Mine Development Associates (MDA) of Reno and has been posted on SEDAR, as reported in NR-07-12 dated May 1, 2012
BVA:TSX.V | BRT: FSE
Wind Mountain – MDA’s 2012 PEA BASE CASE - Open-pit contract mining w/ trucks, shovels,
ROM leaching, US$1,300/oz Au & $24.42/oz Ag
Resource inside the pits = 42.1 million short tons of Indicated Resource @ 0.011 oz Au/t & 0.26 oz Ag/t, and 2.2 million short tons of Inferred Resource @ 0.008 oz Au/t & 0.18 oz Ag/t, both utilizing a 0.006 oz Au/t cutoff
Gold & Silver Ounces mined = 465,000 oz Au & 11,198,000 oz Ag (516,000 oz Au-eq(2))
Gold & Silver Ounces produced = 288,000 oz Au & 1,680,000 oz Ag (320,000 oz Au-eq(2)), using 62% Au & 15% Ag recoveries
W:O Strip ratio = 0.71:1
Capital = Initial capital of $45.4 million, $18.4 million sustaining capital
Mine Life = approximately 7 years of mining, 2 additional years of residual leaching & rinsing
Payback Period = 2.2 years
Life-of-mine cash cost(3) = $859 per ounce Au
Total Pre-Tax cost(3) = $1,080 per ounce Au
IRR = 29%
Pre-tax NVP@5% = $42.9 million
(1) Canadian NI 43-101 guidelines define a PEA as follows: “A preliminary economic assessment is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied that would enable them to be classified as mineral reserves, and there is no certainty that the preliminary assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.” (2)Expected recoveries were incorporated to convert silver to gold equivalent (Au-eq) at 220Ag:1Au ($1,300 x 62% divided by $24.42 x 15%) (3)Costs include estimated Nevada Net Proceeds taxes, property taxes, but not corporate income tax, and treats silver as a by-product credit.
100.2926
100.2926
100.2926
100.2926
100.2926
Hwy 447 approx 10 miles
pro
pe
rty b
ou
nd
ary
ADR Plant
pro
pe
rty b
ou
nd
ary
4000 el
4020 el
4060 el
4180 el
4380 el
4420 el
4560 el
4580 el
4725 el
4700 el
4675 el
4650 el
4040 el
4220 el
4220 el
4300 el
4320 el
4460 el
4560 el
4600 el
4160 el
Heap Leach Pad
Guard Station
fence
fen
ce
fen
ce
fence
fence
fence
2065500 N
2066000 N
2066500 N
2067000 N
2067500 N
2068000 N
2068500 N
2069000 N
2069500 N
2070000 N
2070500 N
2071000 N
2071500 N
2072000 N
273500 E 274000 E 274500 E 275000 E 275500 E
273500 E 274000 E 274500 E 275000 E 275500 E
2065500 N
2066000 N
2066500 N
2067000 N
2067500 N
2068000 N
2068500 N
2069000 N
2069500 N
2070000 N
2070500 N
2071000 N
2071500 N
2072000 N
20-Apr-2012 Scale:Site Map
Wind Mountain Project
Bravada Gold Corportaion
1" = 1000'
MINE DEVELOPMENT ASSOCIATES
8
BVA:TSX.V | BRT: FSE
Wind Mountain – MDA’s 2012 PEA BASE CASE - Open-pit contract mining w/ trucks, shovels,
ROM leaching, US$1,300/oz Au & $24.42/oz Ag
Resource inside the pits = 42.1 million short tons of Indicated Resource @ 0.011 oz Au/t & 0.26 oz Ag/t, and 2.2 million short tons of Inferred Resource @ 0.008 oz Au/t & 0.18 oz Ag/t, both utilizing a 0.006 oz Au/t cutoff
Gold & Silver Ounces mined = 465,000 oz Au & 11,198,000 oz Ag (516,000 oz Au-eq(2))
Gold & Silver Ounces produced = 288,000 oz Au & 1,680,000 oz Ag (320,000 oz Au-eq(2)), using 62% Au & 15% Ag recoveries
W:O Strip ratio = 0.71:1
Capital = Initial capital of $45.4 million, $18.4 million sustaining capital
Mine Life = approximately 7 years of mining, 2 additional years of residual leaching & rinsing
Payback Period = 2.2 years
Life-of-mine cash cost(3) = $859 per ounce Au
Total Pre-Tax cost(3) = $1,080 per ounce Au
IRR = 29%
Pre-tax NVP@5% = $42.9 million
(1) Canadian NI 43-101 guidelines define a PEA as follows: “A preliminary economic assessment is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied that would enable them to be classified as mineral reserves, and there is no certainty that the preliminary assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.” (2)Expected recoveries were incorporated to convert silver to gold equivalent (Au-eq) at 220Ag:1Au ($1,300 x 62% divided by $24.42 x 15%) (3)Costs include estimated Nevada Net Proceeds taxes, property taxes, but not corporate income tax, and treats silver as a by-product credit.
100.2926
100.2926
100.2926
100.2926
100.2926
Hwy 447 approx 10 miles
pro
pe
rty b
ou
nd
ary
ADR Plant
pro
pe
rty b
ou
nd
ary
4000 el
4020 el
4060 el
4180 el
4380 el
4420 el
4560 el
4580 el
4725 el
4700 el
4675 el
4650 el
4040 el
4220 el
4220 el
4300 el
4320 el
4460 el
4560 el
4600 el
4160 el
Heap Leach Pad
Guard Station
fence
fen
ce
fen
ce
fence
fence
fence
2065500 N
2066000 N
2066500 N
2067000 N
2067500 N
2068000 N
2068500 N
2069000 N
2069500 N
2070000 N
2070500 N
2071000 N
2071500 N
2072000 N
273500 E 274000 E 274500 E 275000 E 275500 E
273500 E 274000 E 274500 E 275000 E 275500 E
2065500 N
2066000 N
2066500 N
2067000 N
2067500 N
2068000 N
2068500 N
2069000 N
2069500 N
2070000 N
2070500 N
2071000 N
2071500 N
2072000 N
20-Apr-2012 Scale:Site Map
Wind Mountain Project
Bravada Gold Corportaion
1" = 1000'
MINE DEVELOPMENT ASSOCIATES
8
BVA:TSX.V | BRT: FSE
Wind Mountain – Potential Increases
MDA’s
$2,000 Au
Pit Outline
Gray – air photo
Black – drill holes
Red – Indicated Au Resource
Yellow – Inferred Au Resource
Purple – PEA $2,000 Au Pit*
*MDA estimates ~12% increase in
oz Au-eq w/in $2,000 pit
compared to $1,300 pit
10
BVA:TSX.V | BRT: FSE
Wind Mountain – Section A
NOTE: Au as oz/ton, blocks are 20’ x 25’
Breeze Open Pit
50’ (15m) of 0.037 opt Au
(1.3g/t)
50’ (15m) of 0.020 opt Au
(0.68g/t), many lost samples
85’ (26m) of 0.040 opt Au
(1.4g/t)
50’ (15m) of 0.029 opt Au
(1.0g/t)
NOTE: 0.03 oz/ton = ~1 g/t Au
NOTE: Areas of probable under-estimated Au grade
11
BVA:TSX.V | BRT: FSE
NOTE: blocks are 20’ (6.1m) x 25’ (7.6m)
Wind Mountain – Section B
Breeze Deposit
Hill Top Deposit
Under Estimated
Grade Potential
Under Estimated
Grade Potential
Untested Potential
12
Large-size samples collected from spent heaps, waste dumps, & open pits
Moderately hard to crush, abrasive • Abrasion indices average ~0.53 • Crusher work index average ~14 kW-hr/st • Ball mill grindability tests average ~24 kW-hr/s
Scoping-level bottle roll tests encouraging • Spent heaps – higher Ag recovery w/ higher NaCN, no change in Au • ‘Waste’ piles – no increase in Au or Ag w/ higher NaCN • Higher Au & Ag at 10 mesh vs ½ inch
Head Screen for column-leach tests encouraging • Very low % fines in all samples • Spent heaps – Au & Ag higher in +1/4” fraction due to incomplete leaching • Screen tests of pit and ‘waste’ samples show even distribution of Au & Ag in size fractions w/
moderate increase in grades +1/4”
Wind Mtn Metallurgy Results
BVA:TSX.V | BRT: FSE
West
Dump
Wind Mtn ‘Waste’ Pile Resource?
Wind Mountain Economic Summary
BVA:TSX.V | BRT: FSE
• BVA’s internal “what if” scenarios suggest a Phase I pit of ~300K oz could: • exploit a smaller, close-in heap site, significantly reducing operating & capital costs compared to the 2012 PEA; • while taking the highest gold/silver grades within the global resource; and • simplifying permitting by remaining within the footprint of previous disturbance.
• Leaching “waste” dumps that must be moved instead of moving to another waste pile should further enhance economics.
• Crushing the higher grade Phase I mineralization could significantly increase NPV & IRR, although more test work on crushing is needed.
• Reprocessing the heaps might be economically possible, particularly for their Ag content.
• Additional phases of mining the remaining resource would be dependent upon further discoveries and future economics.
Wind Mountain Economic Summary
BVA:TSX.V | BRT: FSE
• BVA’s internal “what if” scenarios suggest a Phase I pit of ~300K oz could: • exploit a smaller, close-in heap site, significantly reducing operating & capital costs compared to the 2012 PEA; • while taking the highest gold/silver grades within the global resource; and • simplifying permitting by remaining within the footprint of previous disturbance.
• Leaching “waste” dumps that must be moved instead of moving to another waste pile should further enhance economics.
• Crushing the higher grade Phase I mineralization could significantly increase NPV & IRR, although more test work on crushing is needed.
• Reprocessing the heaps might be economically possible, particularly for their Ag content.
• Additional phases of mining the remaining resource would be dependent upon further discoveries and future economics.
So what have we learned &
is there additional upside?
Wind Mtn Schematic Geology Looking East
BVA:TSX.V | BRT: FSE
North Hill
deposit
Breeze
deposit
South End
deposit
X
X
X
X X
X X
X X
X X
X
~3
00
me
ters
NOTE: several small
post-mineral faults
not shown for
simplicity
~300 meters
Wind & DeepMin
deposits
Wind Mtn “Hishikari – style” Exploration Potential ?
BVA:TSX.V | BRT: FSE
North Hill
deposit
Breeze
deposit
Wind & DeepMin
deposits
South End
deposit
X
X
X
X X
X X
X X
X X
X
Preserved Gold
mineralization
~3
00
me
ters
~300 meters
NOTE: Hishikari mine (Japan) ~6.9MM oz Au production, ~6.1MM oz “reserves”, grade 45-50g/t Au, ~1Ma age
(sources - Sumitomo Metal Mining Co., Ltd. press release 11/11/12 & website)
Wind Mountain Summary
BVA:TSX.V | BRT: FSE
• Favorable metallurgy, strip ratio, and logistics make the Wind Mountain property an attractive mining investment.
• The Wind Mountain deposits are the partially eroded remnants of a very large epithermal gold deposit, similar in age, and probably original size, to the Hycroft deposit.
• At least one major funnel-like feeder zone has been identified.
• An attractive high-grade “Hirshikari” -type deposit could occur where the feeder cuts the unconformity between Tertiary volcanic rocks and Mesozoic metasediments and intrusions… younger block faulting may have resulted in reasonable mining depths to this target.