November 2012 presentation - Argonaut Gold Inc.
November 2012 presentation - Argonaut Gold Inc.
November 2012 presentation - Argonaut Gold Inc.
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Prodigy - Magino’s Flexibility<br />
Dec 2011<br />
Prodigy’s flagship asset is the Magino gold project<br />
(40 km northwest of Wawa, Ontario)<br />
On December 22, 2011, Prodigy released an updated<br />
Preliminary Economic Assessment (“PEA”):<br />
• Pre-tax NPV of C$939 mm and pre-tax IRR of 36%<br />
• LOM average gold production of 249k oz per year<br />
over 11 year mine life at cash costs of US$461/oz<br />
• LOM production of 2.6 million ounces at 1.15 g/t<br />
• Total development capital expenditures of C$404 mm<br />
with LOM sustaining capital expenditures of C$145<br />
mm<br />
• 20,000 tpd mill achieving 95% recoveries<br />
Resource Flexibility<br />
• Tremendous grade flexibility without the loss of<br />
significant ounces<br />
• Mine development that balances returns with scale<br />
• Multiple development scenarios have been evaluated<br />
by <strong>Argonaut</strong> management in assessing the merits of<br />
this transaction<br />
• Pre-feasibility study (2013 target) which will explore<br />
the development of Magino, focusing on a higher<br />
grade, lower scaled operation balancing returns for<br />
the project<br />
• Project funding through <strong>Argonaut</strong> cash flow<br />
PEA<br />
Cutoff<br />
Grade<br />
Indicated Resource<br />
Magino Project Mineral Resource Estimate<br />
Source: Prodigy SEDAR Company Filings as described on the slide “About Prodigy”<br />
Note: The December 2011 PEA is shown here for comparative purposes only, readers should note<br />
that the current technical report states as the new resource estimate is significantly different from<br />
the existing one, the mine plan and process disclosure in the PEA is no longer current<br />
(US$1,200/oz gold price and 0.93 USD:CAD exchange ratio)<br />
Inferred Resource<br />
Tonnes Grade Ounces Tonnes Grade Ounces<br />
(g/t) (000's) (g/t) (k oz) (000's) (g/t) (k oz)<br />
0.35 67,555 1.00 2,176 54,242 0.99 1,721<br />
Current Indicated Resource Inferred Resource<br />
Cutoff<br />
Grade<br />
Tonnes Grade Ounces Tonnes Grade Ounces<br />
(g/t) (000's) (g/t) (k oz) (000's) (g/t) (k oz)<br />
0.35 223,480 0.87 6,251 13,809 0.80 355<br />
0.40 199,897 0.92 5,913 11,920 0.87 333<br />
0.50 159,681 1.04 5,339 9,021 1.00 290<br />
0.60 128,135 1.16 4,779 7,006 1.13 255<br />
0.70 102,970 1.29 4,271 5,430 1.27 222<br />
1.00 55,306 1.69 3,005 2,795 1.71 154<br />
The December 2011 PEA is shown here for comparative purposes only, readers should note that the<br />
current technical report states as the new resource estimate is significantly different from the<br />
existing one, the mine plan and process disclosure in the PEA is no longer current; Prodigy is<br />
currently working on prefeasibility study which will supersede previous technical reports<br />
11<br />
TSX:AR TSX:AR.WT<br />
<strong>Argonaut</strong><strong>Gold</strong>.com<br />
<strong>November</strong> <strong>2012</strong><br />
11