Presentation - Treasury Metals Inc.

TREASURY METALS INC.
A d v a n c i n g To w a r d P r o d u c t i o n i n O n t a r i o
Corporate Presentation
October 2016
www.treasurymetals.com
FORWARD-LOOKING STATEMENTS
+
This presentation contains projections and forward-looking information that involve various risks and uncertainties regarding
future events. Such forward-looking information can include without limitation statements based on current expectations
involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks
and uncertainties could cause actual results and the Corporation’s plans and objectives to differ materially from those
expressed in the forward-looking information. Actual results and future events could differ materially from anticipated in
such information. These and all subsequent written and oral forward-looking information are based on estimates and
opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation
assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions
change. This presentation contains projections and forward-looking information that involve various risks and uncertainties
regarding future events. Such forward-looking information can include without limitation statements based on current
expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation.
These risks and uncertainties could cause actual results and the Corporation’s plans and objectives to differ materially from
those expressed in the forward-looking information. Actual results and future events could differ materially from anticipated
in such information. These and all subsequent written and oral forward-looking information are based on estimates and
opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation
assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions
change.
Technical information in this presentation has been reviewed and approved by Mark Wheeler, P. Eng. and Paul Dunbar who
are both Qualified Persons for the Goliath Gold Project under the definitions established by National Instrument 43-101.
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2
TREASURY METALS – A CANADIAN GOLD DEVELOPER
Canadian Gold
Development
Opportunity
+ The flagship Goliath Gold Project is among the few
advanced stage development projects in Canada
+ Canadian gold assets have been the target of a
number of recent M&A transactions
Excellent
Infrastructure
in Place
+ Located in northwestern Ontario adjacent to the
TransCanada Highway with year-round access
+ Power, natural gas, rail, skilled workforce
Attractive High
Grade, Open Pit
+ Avg. undiluted open-pit grade of 2.80 g/t AuEq(1)
+ Avg. undiluted UG grade of 5.13 g/t AuEq(2)
Advancing
Toward
Production
+ PEA(1) and optimization studies complete
+ Mine Permit Process well advanced
+ Build CIL plant and Open Pit mine followed by UG
Positioning to become one of Canada’s next producing gold mines
(1)
(2)
Preliminary Economic Analysis (PEA) of the Goliath Gold Project, effective July 19, 2012 (Press release July 19, 2012).
Based on Measured and Indicated Resource from NI 43-101 Mineral Resource Estimate completed by P&E Mining Consultants Inc. (Press release, August 28, 2015).
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3
TREASURY METALS INC.’S FLAGSHIP GOLD ASSET IN NORTHWESTERN ONTARIO
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4
TREASURY METALS – HISTORY OF GOLIATH GOLD PROJECT
Three Resource Estimates
and two Preliminary
Economic Assessments
(All NI 43-101 Compliant)
120,000+ Metres Drilled
2008-2015
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5
CORPORATE UPDATE
1.
Completed C$4M equity raise with Haywood and Strategic Investor,
and C$5M convertible/term loan

2.
Improving gold environment; attractive valuation

3.
Activity in the district and M&A in Ontario continues including
nearby Goldlund
Project activities:




4.
Expanded shareholder base, global shareholder base
Mine Permits and Engineering
Drill program and exploration commenced to completed in-fill
and resource expansion
First Nation discussions
Leading towards initiation of construction
Corporate activities include:



Additions to mine building team including CEO search
Completion of Goldeye Acquisition
Project Finance and Strategic Investor
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6
GOLIATH GOLD PROJECT – SUMMARY
Canadian Gold Development Opportunity – Figures based on Preliminary Economic Assessment(1)
New 43-101 Resource Estimate
High-Grade Gold
1,165,800 oz Au Eq Measured and Indicated
and 341,300 oz Au Eq Inferred
Average open pit grade of 2.80 g/t Au Eq
Attractive Cash Cost
Low Initial Capex
C$698 Operating Cash Cost per ounce of gold
(C$668 after silver credit)
C$92.5 million initial CAPEX for open pit and mill
with life-of-mine capex totals C$200.5 million
(including underground development)
Strong Metallurgy Recoveries
+10 Year Production Profile
95% by CIL or 92% by Flotation
80,000 oz Au Eq Average Production
10.3 year mine life – Open pit followed by underground operation
(1) Preliminary
Economic Analysis of the Goliath Gold Project, effective July 19, 2012 (Press release July 19, 2012). PEA is based on 2011 resource estimate
The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to
them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
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NORTHWESTERN ONTARIO/WABIGOON BELT REGION
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8
EXCELLENT INFRASTRUCTURE IN PLACE
Excellent
Infrastructure
in Place
Power lines
Highway access
Local workforce
Natural Gas
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9
SUPPORTIVE COMMUNITY AND WORKFORCE
Dryden, Ontario, Canada
 Close proximity to Winnipeg, Thunder Bay, and
northern U.S. (Minneapolis)
 Large pool of available skilled workers
 Transportation hub with its own airport, and on
the Trans-Canada Highway
A Solid Resource Base
 Region benefits from a high concentration of natural
resources (precious metals, wood)
 Nearby operating mines are Goldcorp.’s Red Lake and
Musselwhite and Barrick’s Hemlo
 Infrastructure-ready (natural gas, hydro) at Goliath
Gold
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SHORT-TERM MILESTONES
Permitting
+ Late stage mine permitting targeting early 2017 for completion
+ First Nations and community engagement to initiate long-term
relationship agreements
Engineering
+ Updated mine plan and engineering underway to support mine
permit process leading towards Feasibility Study
+ Lower strip, improved mine life and updated costs
Drilling
+ Commenced 2016 exploration program: two rigs are turning. In-fill
to potentially increase mine life, field exploration and diamond
drilling to explore high potential areas with the objective of adding
gold ounces to the current resource estimate
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11
GOLIATH GOLD CONCEPTUAL OPEN PIT OUTLINE
Goliath Conceptual Open Pit Deposit and Wide Underground Zones
 Main Zone and C Zone are the two
principal zones of mineralization
Main Zone
 Zones strike east-west and dip 70 °
- 80 °to the south-southeast
 Average widths of 10 m and 30 m for
Main and C Zones respectively, with
C Zone running parallel to the Main
Zone and approx. 40 metres behind
the Main Zone (North)
C Zone
 Comparable deposits for geometry,
potential mining operations and
production profile: Black Fox, YoungDavidson and Musselwhite
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GEOLOGY UPDATE – PHASE 1
2016 Drilling Program Progress
 Approx. 4,000 metres drilled to date
 Projected finish date: Mid-Nov 2016
 2 drills currently on site
 6,650 planned metres total
 Early indications of success in hitting grade and  Focused on central shoot deep
mineralized zones
inferred resources
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GEOLOGY UPDATE – PHASE 2
2016 Phase 2 Drilling Program
 5000+ planned metres in total
 Focused on eastern reaches of
resource area and
condemnation drilling at TSF
and ore processing plant
 Planned Start date:
December 2016
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GOLIATH GOLD PROJECT EXPLORATION POTENTIAL
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GOLIATH GOLD PROJECT – PROJECT TIMELINE
Treasury Metals
Goliath Gold Project
2015
Q3
Environmental Baseline Studies
Q1
Q2
2017
Q3
Q4
Q1
Q2
2018
Q3
Q4
Q1
Q2
2019
Q3
Q4
Q1
:::
2028
2029
Q2
Continued Environmental Baseline/Monitoring
Continued Infill Drilling
Geological Drilling
Environmental Impact Statement
and Federal Permitting
Q4
2016
EIS
Provincial Permitting
Engineering and Feasibility Study
Mine Financing
Procurement and Site
Development
Production Begins
Reclamation
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GOLIATH GOLD – INPUT COSTS AND IMPACT OF CANADIAN DOLLAR ON THE PROJECT
CAD recent range of C$1,500 C$1,700 per Oz
Higher Canadian gold price
and firmer USD gold price
C$800 - C$950 per Oz1
AISC expected to be similar in Feasibility
Study
Input Costs declining to neutral
Attractive Ontario Power costs
Energy, Employment and Construction
Expected to be C$0.07 per / kWh for Hydro
and natural gas available
~C$668 per Oz1
Reduced Strip Ratio
cash costs (after silver credit)
From in-fill drilling and C Zone
Updated capital and costs
New mine plan with new resource
1Cash
Costs and AISC based on Corporate PEA. AISC based on World Gold Council definition. Closure costs were adjusted higher
from PEA numbers to better reflect recent Ontario project examples. PEA was based on USD/CAD $1.02
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TREASURY POSITIONED TO BECOME “GO TO” CANADIAN GOLD STORY
Jr. CDN Gold
Comparables
Lake Shore (Acquired)
Claude (Acquired)
Kaminak (Acquired)
Richmont Mines
Wesdome Gold Mines
TMAC
Atlantic Gold
Integra
Treasury Metals Inc.
Stage
Mkt Cap
(C$M)
Annual Prod.
(000 oz Au)
Consensus
P/NAV
Production
Production
Permitting
Production
Production
$945
$337
$520
$650
$220
175
69
193
92
57
1.25x
1.34x
1.04x
1.45x
0.84x
Construction
Construction
Feasibility/Permitted
$1,098
$100
$314
160
87
109
1.34x
0.48x
0.79x
Pre-Feasibility
$56
80
0.34x
+ Among the few quality + Treasury Metals
advanced stage assets
undervalued
in Canada. Ontario
compared with
provides access to
Canadian peers at
lower political risk,
similar stage –
infrastructure, quality
C$70MM mkt cap.
assets, skilled
trading at $25
workforce and low
oz/AuEq
Canadian dollar.
+ Significant M&A
+ Attractive global
in Ontario –
shareholder base:
enterprise value
+7,500 shareholders –
ranges from $300~40% in Europe, ~20%
500MM; MI&I
Canada, ~15% US and
from U$35
~20% insiders/closely
oz/AuEq to U$100
held; raised +$30MM
oz/AuEq
since 2011 for project
+ Trading
volume up:
+9MM
shares
traded in
past 3 mos.
and raised
C$10MM in
Q2 2016
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TSX: TML SHARE PRICE
Three Years – Traded in tight range
One Year – Improving Liquidity
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TREASURY METALS – SHARE STRUCTURE
Publicly traded: TML (TSX); TSRMF (OTC); TRC (FSE)
Share price / Market Cap: C$0.65 / $60MM
Shares issued outstanding: 95MM
Fully-diluted outstanding: 109 MM (9M warrants/5M options)
Cash: $3.0 million1
Largest investors: Insiders (14%); Laramide (3.5%); Haywood (~4%);
Canaccord (~3.5%) Extract (~3%); Gravitas (~3%); Osisko (~2%)
Most recent
financings:

$4M private placement at $.48 and $5.5 convertible (May/16)

$2M private placement at $.45 (Sept/15) and $1M in Jan/16

$1M private placement @$0.40 (Dec/14)

$9.3M - $3.3M private placement and $6M RMB facility
(Jan/14)

$2M private placement @$0.45/@$0.50 (May/13)

$10M two private placement in 2012 and 2011
1
The Company completed a repayment of C$5M to RMB with a transaction on June 10, 2016 with
Extract and Loinette.
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TERMS OF GOLDEYE ACQUISITION, NW ONTARIO
+ Treasury Metals entered into definitive agreement to acquire Goldeye Explorations Limited (TSXV:GGY) (“Goldeye”),
contemplates an all share issuance pursuant to a business combination
 Treasury will issue approximately 5,005,359 common shares for 100% interest
+ Goldeye’s principal asset is the Weebigee Project, a high-grade gold project located near Sandy Lake in NW Ontario:
 Proximal to giant gold deposits: Red Lake and Musselwhite
 Recent drill results report significant near surface intersections
+ Provides Treasury with a second high-quality asset in Northwestern Ontario, one that requires low capital (carried
interest due to joint venture partner) in an exciting gold district at the heart of the unexplored Sandy Lake greenstone
belt.
 6,000 ha. (363 claim unit) and potential JV on new claim block stated by GPM Metals (“GPM”)
+ The Weebigee Project is subject to an earn-in option agreement with GPM the operator (spun-out to Sandy Lake Gold)
 In order for GPM to earn a 50.1% interest, spend $5M on exploration over next three years and Feasibility to
earn an additional 20%.
+ Excellent relationship with Sandy Lake First Nation
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WEEBIGEE LARGE LAND PACKAGE
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MANAGEMENT TEAM AND BOARD OF DIRECTORS
Bill Fisher, Lead Director
Marc Henderson, Chairman
Dennis Gibson, Chief Financial Officer
Bill Fisher, Lead Director
Norm Bush, Vice President, Goliath Gold Project
Doug Bache, Independent Director
Greg Ferron, Vice President, Corporate
Development
Flora Wood, Independent Director
Mark Wheeler, Director, Projects
Christophe Vereecke, Independent Director
Paul Dunbar, Project Geologist
Blaise Yerly, Independent Director
Darryl Boyd, Director of Regulatory
and Community Affairs
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HOW DOES GOLIATH GET BUILT AND FUNDED
Major Mineral & Energy Projects in Ontario
and Western Canada. Local access to skilled
mine building, engineer consultants and
workforce. Reduced labour, service costs,
mining equipment in today’s economy.
+ Project Finance & Debt Discussions Ongoing
from traditional bank opportunities to the
mine debt groups.
+ Feasibility/ ECPM – discussions are ongoing
Source: Ontario Mining and
Exploration Directory and
Resource Guide 2015
+ Insiders Are Large Shareholders Attractive
European shareholder base. Canadian
shareholder base. Building institutional
investors and analyst coverage.
Goliath Gold Project Benefits From Safe, Stable, Mining-Friendly Jurisdiction
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GOLIATH GOLD DEPOSIT
Hole T11-132: Remobilized mineralization, coarse Galena (Pb) and Gold
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GOLIATH GOLD PROJECT SITE
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CONTACT INFO
Greg Ferron
Mark Wheeler
VP, Corp. Development
416.214.4654
[email protected]
Director, Projects
416.214.4654
[email protected]
Toronto Office
Dryden Office
416.214.4654 or
1.855.664.4654 (toll-free)
807.938.6961
www.treasurymetals.com
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TECHNICAL DATA APPENDIX
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GOLIATH GOLD PROJECT – NI 43-101 RESOURCE ESTIMATE*
Resource
Category
Open Pit
Underground
Total
Block Cut-off
AuEq g/t
Tonnage
Au
(g/t)
Contained Au
(ounces)
Contained Ag
(ounces)
AuEq
(g/t)
Contained AuEq
(ounces)
Measured
0.35
1,015,000
1.90
62,100
7.8
256,000
2.00
65,200
Indicated
0.35
17,174,000
1.22
675,700
5.2
2,869,000
1.29
710,400
M+I
0.35
18,189,000
1.26
737,800
5.3
3,125,000
1.33
775,600
Inferred
0.35
1,351,000
0.99
42,800
4.3
186,000
1.04
45,000
Measured
1.90
103,000
7.32
24,200
23.1
76,000
7.60
25,100
Indicated
1.90
2,264,000
4.84
352,400
14.4
1,044,000
5.02
365,000
M+I
1.90
2,367,000
4.95
376,600
14.7
1,120,000
5.13
390,100
Inferred
1.90
2,120,000
4.22
287,300
10.9
743,000
4.35
296,300
Measured
0.35&1.90
1,117,000
2.40
86,300
9.2
332,000
2.51
90,300
Indicated
0.35&1.90
19,437,000
1.65
1,028,100
6.3
3,913,000
1.72
1,075,500
M+I
0.35&1.90
20,554,000
1.69
1,114,400
6.4
4,245,000
1.76
1,165,800
Inferred
0.35&1.90
3,470,000
2.96
330,100
8.3
928,000
3.06
341,300
Notes from Resource Estimate:
1. 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.
2. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been
insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is
uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
3. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM
Standing Committee on Reserve Definitions and adopted by the CIM Council.
Ag (g/t)
4. A gold price of US$1,397/oz and silver price of US$22.93/oz based on the April 30, 2015 three year
trailing average prices and an exchange rate of US$1.06=Cdn$1.00 were utilized in the AuEq cut-off
grade calculations of 0.35 g/t AuEq for Open Pit and 1.90 g/t AuEq for Underground mineral resources.
5. Open Pit mining costs were assumed at Cdn$5.00/t for mineralized material, Cdn$3.15/t for waste rock
and Cdn$2.00/t for overburden, while Underground mining costs were assumed at Cdn$70.00/t, with
process costs of Cdn$13.81/t, G&A of Cdn$2.72/t, and process recoveries of 95% for gold and 70% for
silver.
6. The Au:Ag ratio used for AuEq was 82.68.
7. A bulk density model averaged 2.76 t/m3 for mineralized material.
8. Totals in the table may not sum due to rounding.
+
* Independent NI 43-101 Mineral Resource Estimate completed by P&E Mining Consultants Inc. (Press release, August 28, 2015).
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GOLIATH GOLD PROJECT CASH FLOW SUMMARY
Preliminary Economic Assessment (2012) After-Tax Project Cash Flow
Operating Cash Flow
Less: Capital Investment
Working Capital
Net Cash Flow to Project
$80,000,000
$60,000,000
$40,000,000
CAD$
$20,000,000
$0
Total
($20,000,000)
LOM Net Metal Revenue:
C$1,150,701,000
LOM Net Income After Depreciation and Taxes: C$250,732,000
LOM Depreciation:
C$199,078,000
LOM Capital Investment:
C$200,533,000
LOM Net Pre-Tax Cash Flow:
C$334,682,000
LOM Net Post-Tax Cash Flow:
C$249,753,000
($40,000,000)
($60,000,000)
($80,000,000)
Year -2
(1)
(2)
Year -1
Year 0
Year 13
Assumes US$1,375/oz Au, US$27.00/oz Ag and USD:CAD $1.02.
See PEA and appendix for assumptions
Year 22
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
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2012 PRELIMINARY ECONOMIC ASSESSMENT(1)
Preliminary Economic Assessment
Project Parameters
Gold Resources
Gold and Silver - Resources Mined
Gold and Silver - Production
Gold Price - Optimized Pit Model
Cut-off Grade - Open Pit and Underground
Average Mill Feed Gold Grade (Au Eq)
Operating Metrics
Waste Mined
Total Tonnes Ore Produced (OP and UG)
Open Pit Ore Production Rate
Total Strip Ratio
Gold and Silver Recovery (Processing)
Dilution and ore recovery
Average Gold Production (Au Eq)
Mine life
Financial Metrics
Realized Gold and Silver Price (Base Case)
Total Initial Capital Expenditures
Total Sustaining Capital (Including U/G)
Total Capital Investment
Cash Operating Cost
Mining Costs - Open Pit and UG
General and Admin cost
Milling Costs and G&A Costs
Average NSR
Exchange Rate
Unit
Amount
+
Oz
Oz
US $/Oz
Au g/tonne
Au (g/tonne)
835,000 and 2,703,000
793,000 and 1,892,000
$1,175
0.45 and 2.5
3.05
+
Tonnes
Tonnes
tpd/tpa
Waste:Ore
%
%
Oz/year
years
42,030,000
9,039,000
2,500 tonne/day or 875,000/yr
9.3:1
95% and 70%
15% and 95%
80,000
10.3 years
US$/Oz
C$M
C$M
C$M
C$/Oz
$/tonne
C$/yr or tonne
$/tonne
%
US$1,375 and $27
$92.50
$107.95
$200.45
$698
OP $3.01 and UG $60
1.75M or $2.05
$15.81 and $2.05
0.70%
C$
C$1.02: US$1.00
>2.8 g/t Au Eq. Open Pit,
3.05 g/t Au Eq Average
Mill Feed
U$1,375 Gold Price,
After Tax NPV (5%) of
C$144.3M, IRR 32.4%,
2.8 year payback
The preliminary economic assessment is
preliminary in nature and includes inferred
mineral resources that are considered too
speculative geologically to have the
economic considerations applied to them
that would enable them to be categorized as
mineral reserves, and there is no certainty
that the preliminary economic assessment
will be realized. Mineral resources that are
not mineral reserves do not have
demonstrated economic viability.
(1) Independent NI 43-101 Resource Estimate completed by ACA Howe International on November 7, 2011 (Press release, Nov. 9, 2011) and restated in the Preliminary Economic Analysis of the
Goliath Gold Project, effective July 19, 2012 (Press release July 19, 2012).
+
31
GOLIATH GOLD – LONGITUDINAL SECTIONS
West Extension
Near surface resources
C Zone
High-grade shoots
Near surface resources
800 metres
+
Main Zone
High-grade shoots
remain open at depth
2,200 metres
+
32
GOLIATH GOLD PROJECT- MILL PROCESS
+
2,375 tonne sample previously tested
with 97% recovery using CIL process
and 70% recovery from gravity alone.
+
Two additional samples tested:
+
+
G&T Metallurgical Services –
95+% recovery with cyanide, 6070% recovery by gravity, 8-12
hours leach time, medium
hardness rock.
+
Gekko Systems Australia – tested
their Python Process to confirm
amenability ore to treatment
using VSI and continuous gravity
concentration CGR.
Goliath Gold Conceptual Flow Sheet
Trade off and final studies incorporated
in Optimization Study in Q2 2014.
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33
GOVERNMENT VISITS TO TREASURY METALS PROJECT
Provincial MDNM
Deputy Minister
David de Launay
Former Federal Minister
of Natural Resources
Greg Rickford
MNDM (left) and Ministry of Natural Resources
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