Sau ppt march_2012_final
- 1. Developing the King-king Cu/Au Deposit A Project for the Philippines Corporate Presentation – March 2012 TSX: SAU www.sagcmining.com
- 2. Forward-Looking Statements This presentation contains “forward-looking statements” that were based on St. Augustine Gold & Copper Ltd’s expectations, estimates and projections as of the dates which those statements were made. These forward-looking statements include, among other things, statements with respect to St. Augustine Gold & Copper Ltd’s business strategy, plans, outlook and shareholder value, projections, targets, and expectations as to reserves, resources, results of exploration (including targets) and related expenses, mine development, mine operations, mine production costs, drilling activity, sampling and other data, recovery improvements, future production levels, capital costs, cost savings, cash and total costs of production of gold, expenditures for environmental matters, reclamation and other post closure obligations and estimated future expenditures for those matters, completion dates for the various development stages of projects, future gold prices (including the long-term estimated prices used in calculating mineral reserves), and currency exchange rates. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “outlook,” “anticipate,” “project,” “target,” “believe,” “estimate,” “expect,” “intend,” “forecast,” “should,” and similar expressions. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are inherently subject to known and unknown risks, uncertainties, and other factors that may cause St. Augustine Gold & Copper Ltd’s actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. An NI 43-101 has been prepared by Independent Mining Consultants, Inc with respect to the King-king project. A Preliminary Economic Assessment (PEA) has not yet been prepared and, consequently, any economic estimates, including all assumptions and costs, have yet to be verified. TSX: SAU March 2012 2 www.sagcmining.com
- 3. A Project for the Philippines The King-king copper / gold deposit: A Project for the Philippines Significant social economic benefits to the Philippines and the residents of Mindanao island with the development of King-king The King-king copper/gold project is one of the largest undeveloped deposits in world Listed as one of the top priority projects by the Philippine Mines and Geosciences Bureau 43-101 Resources equivalent to 22 million ounces of gold (M&I) 5.4 billion lbs of copper & 10.3 million oz of gold Deposit contains $24.8 billion in ground metal value (M&I only, $2.50/lb cu/$1,100/oz au) Independently owned and operated 60% earn-in 2/3 thirds complete with full earn-in upon on completion of Bankable Feasibility Study Significant exploration upside, see press release dated March 1, 2012 Permitting process expected to be complete by Q3 2012 Experienced Management Team TSX: SAU March 2012 3 www.sagcmining.com
- 4. Capital Structure Cash Price per Total Shares Major Shareholders Raised share RMMI * 27.45% RTO 1/7/2011 $7,210,251 90,000,000 CGA 21.66% Tranche 1 $25,900,000 $0.30 86,333,334 Wellington / Franklin Templeton / 25% Passport / (others): Tranche 2 $40,016,000 $1.22 32,800,000 74.11% Shares Issued to RMMI $0 80,000,000 * Additional 75M shares to be issued to RMMI at Feasibility Private Placement 11/17/2011 $11,790,000 $0.40 29,475,000 Ratel Options exercised after Jan $0.25 6,650,000 2011 Total Shares Outstanding: 325,258,334 Options 21,291,667 Warrants ($0.75): 14,737,500 Total Shares Fully Diluted: 361,287,501 Spend to date: $68,000,000 Cash on Hand (as of 03/31/2012): $16,000,000 TSX: SAU March 2012 4 www.sagcmining.com
- 5. Copper-Gold Project Comparison As of March 4, 2012 ** Comparative Project Details can be found in the Appendix TSX: SAU March 2012 5 www.sagcmining.com
- 6. Key Milestones for 2012 Go to production project - In the permitting phase now Next Steps Are: Environmental Impact Statement (EIS) Submittal – February 2012 Declaration of Mine Project Feasibility (DMPF) – May 2012 Prefeasibility Study (PFS), 43-101 compliant – May 2012 Bankable Feasibility Study (BFS) – Dec 2012 TSX: SAU March 2012 6 www.sagcmining.com
- 7. Project Description Contents Benefits to the Philippines King-king Project Earn-in King-king Resource Exploration Upside Mine Plan & Schedule Process & Plant, Pit End of Year 5 & 19 World Class Engineering & Sub Contractors Permitting Process Management & Board of Directors King-king Location and History TSX: SAU March 2012 7 www.sagcmining.com
- 8. Benefits to the Philippines A Project for the Philippines: Significant increase in tax and royalty revenue for the government and Indigenous People Environmental improvements related to small scale mining Significant high paying jobs for locals with approximately 4,000 jobs during construction and 2,000 careers during operation Dedicated community development in the areas of education, health care, infrastructure and livelihood as 1.5% of the operating expense is earmark for these investments in community Training programs developed through a public private participation program in conjunction with the Philippine Technical and Education and Skills Development Authority (TESDA) will be developed to facilitate local hire and a JV will be put in place Local purchase of goods and services to benefit the local businesses and economy For more information on the on-going projects bringing opportunities to the people, visit: www.pantukansfuture.com TSX: SAU March 2012 8 www.sagcmining.com
- 9. King-king Project Earn-In Total Earn-in % Total Earn-in $ Spend to Date Difference Payment to Nadecor 6% $7.5M $3.4M $4.1M BFS 45% $43.5M $30.6M $12.9M Capex 9% $32.0M* $34.0M -2.0M* Total Earn-In: 60% $83.0M $68.0M $13M *Will increase on a linear basis based on tpd per MOU with Nadecor. Expected increase of $13.7M for a total $45.7M TSX: SAU March 2012 9 www.sagcmining.com
- 10. King-king Resource 962.3 million tonne M & I resource: 5.4 billion lbs Cu 10.3 million oz Au Average annual production for first 5 years** 232 million lbs Cu 362,000 oz Au 60,000 tpd milling operation 40,000 tpd leach operation in final evaluation 120,000 milling operation expansion plan under feasibility study Low net production costs Low strip ratio for M, I & i resources Tide water proximity deposit Resources Ore Eq Cu Total Cu Au (g/t) Eq Au Notes: (Ktonnes) (%) (%) (g/t) Updated Resource based on new data from ongoing feasibility work Total Material within a floating cone pit Measured & Indicated 962,252 0.533 0.254 0.334 0.660 shell, based on Cu $2.50/lb. and $1100 / oz. Au prices. Inferred 188,816 0.439 0.215 0.265 0.542 ** @ 93,000 tpd TSX: SAU March 2012 10 www.sagcmining.com
- 11. King-king Geology & Upside Potential Gold-rich porphyry copper deposit with epithermal vein systems (1,656 ha) Epithermal Prospect: Resources based on 291 holes/ 95,651 metres Preliminary gold resource: First pass fieldwork showed at least 8 veins with good potential; previous testing confirms assays @4.17-15.37/g/t Au Epithermal; low sulfidation quartz- carbonate-base metal gold system Field work confirming multiple epithermal vein targets in Binutaan, Panganson and Diat areas As described in the March 1, 2012 Press Release: Initial drill tests results confirm surface sampling and wide intervals of porphyry Au-Cu mineralization 1 km and 4 km northeast of the King-king deposit TSX: SAU March 2012 11 www.sagcmining.com
- 12. Mine Plan & Schedule Mine Plan Develop a dual processing plant that is built on a high grade front-end mine plan Plan to deliver 60,000 tonnes per day (tpd) or 21.9 million tonnes per year, to a flotation mill with a tailing leach circuit In addition a 40,000 tpd heap leach operation is being evaluated for copper oxide dominant ore Opportunity to start producing copper via the heap leach - Solvent Extraction and Electrowinning (SXEW) process before completion of the mill construction, thus generating early cash flow Ore Delivery Schedule High grade first 5 year Plan Heap leach provides early low cost copper production for the first 6 years of mining 20 year Project Life of Mine (LOM) with additional 5 years of processing low grade stockpiles TSX: SAU March 2012 12 www.sagcmining.com
- 13. Process & Plant Process Stages: Primary Crushing (gyrator crusher) Primary Grinding (SAG and Ball Mills) Gravity Gold Concentrate Dore to Market Flotation Cu - Au Concentrate to Smelter Sulfuric Acid Leach of Flotation Tailing Liquid Solid Separation (CCD Circuit) Solvent Extraction for Copper Electrowinning Cu Cathode to Market TSX: SAU March 2012 13 www.sagcmining.com
- 14. Pit End of Year 5 Equivalent Copper – 0.666% or Equivalent Gold – 1.038g/t (Mined: Ore-171 Mtonnes (0.373% Cu, 0.456 g/t Au), Total - 356 Mtonnes) TSX: SAU March 2012 14 www.sagcmining.com
- 15. Pit End of Year 19 Equivalent Copper – 0.511% or Equivalent Gold – 0.796 g/t (Mined: Ore-793 Mtonnes (0.278% Cu, 0.363 g/t Au), Total - 1535 Mtonnes) TSX: SAU March 2012 15 www.sagcmining.com
- 16. World-Class Engineering Sub-Contractors x A celtechs DMPF Geotechnical Engineering Tailing Storage Facility Baseline Studies Pit Slope Stability Permitting Metallurgy NAZ-ENVIRONTECHNICS GROUP Air Dispersion Model King-king BFS Contractor Port Design Processing Plant Port Cost Estimate Project Economics Power Plant Design Mine Plan & Design ENVIRONMENTAL COUNSELORS, INC. Power Plant Cost Estimate Mining Cost Estimate EIS Preparation Lands Consulting TSX: SAU March 2012 16 www.sagcmining.com
- 17. Permitting Process Permits to Operate Construction Declaration of Mine Project Feasibility MAJOR PERMITS SCHEDULE Submit EIS February 2012 Environmental Compliance Certificate Submit Declaration of Mine Project Feasibility App. May 2012 Environmental Compliance Certificate September 2012 Environmental Impact Statement Approved Declaration of Mine Project Feasibility December 2012 TSX: SAU March 2012 17 www.sagcmining.com
- 18. Management Team Andrew Russell, President & CEO Founder – RMMI VP Project Development – General Moly, Mount Hope and Liberty Projects, bankable feasibility/NEPA Maintenance Superintendent/Mechanical Engineer – Kennecott Copper Refinery, Kidd Creek Process installation Business leader – Honeywell International, Gas Turbine Engine Division Robert Orr, CFO and VP Business Development BSc – Economics, Chartered Accountant and Chartered Business Valuator; Transaction Partner with PricewaterhouseCoopers, 20 years of public practice experience as a transaction and tax advisor: Resource clients included: Teck, Goldcorp, Novagold, Eldorado Gold, Quadra FNX Mining Ltd., First Quantum Minerals, Sprott Resources, NewGold, Taseko, Sojitz, Sumitomo Tom Henderson, COO VP and GM – Coeur Alaska, Inc. Director of Operations/Mine Manager – Kensington, Coeur Mine Management/Engineering – Robinson Mine, Goldstrike Mine, NV; Grasberg Mine, Indonesia Jim Moore, VP Technical Technical Project Manager – General Moly, Mount Hope and Liberty Project and bankable feasibility More than 32 years of experience in mining, metallurgical design, engineering and operations, leaching, SX/EW, concentrating, smelting & refining ZCCM – Nchanga Division and Phelps Dodge Louis Lazo, VP Human Resources Independent Human Resources Consultant – Broad based Human Resources consulting including mining project in US, Bolivia, and Ghana Director of International Human Resources – Newmont Mining. Responsible for Human Resources at all international projects including Batu Hijau in Indonesia Kee Ming Chi, General Counsel Counsel – O’Melveny and Myers, LLP - specializing in infrastructure, energy, natural resources and technology Includes advising on mergers and acquisitions, public private partnerships, and privatizations Admitted to practice in England, Singapore and Hong Kong, he has experience in multiple jurisdictions (including European, Middle Eastern and Asian countries) TSX: SAU March 2012 18 www.sagcmining.com
- 19. Board of Directors Robert Russell – Chairman of the Board Executive VP and GM – Freeport Copper and Gold VP – Freeport Indonesia GM – Nchanga Division, Zambian Consolidated Copper Mines Chairman/CEO/Founder – General Moly/Idaho General Mines Andrew Russell – Director Founder – RMMI, has led the King-king project since 2009 VP Project Development – General Moly, Mount Hope and Liberty Projects, bankable feasibility/NEPA Maintenance superintendent/Mechanical engineer – Kennecott Copper Refinery, Kidd Creek Process installation Max V. Anhoury - Director 20 years of operational, sales and marketing experience At Lovation, Inc. responsible for Global Sales and Marketing and a member of the Senior Executive Team Strategic direction as well as managing the day to day operations of a worldwide team Thomas L. McKeirnan - Director Senior Vice President, General Counsel and Secretary of Red Lion Hotels Corporation since February 2005 executive officer of the company, involved in all strategic decision-making Served as Vice President, General Counsel and Secretary of Red Lion Hotels Corporation, and Vice President, Assistant General Counsel Terry Krepiakevich, CA – Director Past CFO of SouthGobi Resources Ltd. and is now a senior advisor to the company Director and Audit Committee Chair of Alexco Resource Corp., Western Lithium USA Corp., Concordia Resource Corp., and NovaCopper Inc. Recognized with the British Columbia CFO of the Year Award, for his contribution to SouthGobi's rapid growth TSX: SAU March 2012 19 www.sagcmining.com
- 20. King-king Location Location: Philippines, Mindanao, Compostela Valley Province Adjacent to Coastal Plain Access: About 35 km east-northeast of Davao City by air By road: about 17 km from Pantukan (92 km from Davao city by paved highway) TSX: SAU March 2012 20 www.sagcmining.com
- 21. King-king History 2011 RTO of Ratel Gold, final settlement with Benguet clearing title 2010 Contract consummated with Benguet for settlement, DENR approves the exploration work 2009 program and program is initiated Nadecor and RMMI reach an agreement to develop the King-king project 2008 Nadecor terminated the Operating agreement and applied to have Benguet removed 2005 from MPSA Nadecor & Benguet applied for a conversion of MPSA into a Financial Technical Assistance Agreement (FTAA) 1995 - 1997 Echo Bay drilled ~ 128 holes (52,718 m). All Echo Bay data was acquired by Kinross which waived its option to proceed with the King-king project 1992 The Mineral Production Sharing Agreement (MPSA) was signed by Nadecor, Benguet & The Philippines Government 1991 - 1994 Benguet drilled 69 DDH & 25 RCH in addition to complete an in-house feasibility study 1981 – 1991 Litigation - ownership did not allow any activity within this project. In 1991, legal issues resolved in favor of Nadecor 1981 Nadecor entered into an operating agreement with Benguet Corporation 1969 – 1972 Mitsubishi Mining drilled 54 surface diamond drill holes 1966 – 1968 NADECOR discovers the King-king mineralization Anomaly TSX: SAU March 2012 21 www.sagcmining.com
- 22. King-king Project Summary Advanced Stage Deposit with greater than 1.15 billion tonnes M, I & I resource Significant social economic benefits for the Philippines Front end high grade Low strip ratio Uniquely prime location close to infrastructure 1 of 3 top resource development projects in Philippines Advanced stage with production planned for 2015 Primary sulfide mineralization with near surface oxide Oxide resource leach facility provides early low cost, high grade recovery Next Steps Are: EIS Submittal – February 2012 DMPF Submittal – May 2012 PFS – May 2012 BFS – 2012 Technical studies essentially complete (mine process and metallurgy, process, tailings, infrastructure) Final facility and infrastructure locations defined Primary & Alterative options developed TSX: SAU March 2012 22 www.sagcmining.com
- 23. Contact Information KRISTI HARVIE MANAGER INVESTOR AND CORPORATE AFFAIRS T: 509-343-3193 E: KHARVIE@SAGCMINING.COM JEANNY SO CHF INVESTOR RELATIONS DIRECTOR OF OPERATIONS T: 416-868-1079 x 225 E: JEANNY@CHFIR.COM TSX: SAU March 2012 23 www.sagcmining.com
- 24. Cautionary Note & Compliance The information contained in this document has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, or correctness of the information or opinions contained herein. Neither St. Augustine Gold & Copper Ltd. nor any of its advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss arising from any use of this document or its contents or otherwise arising in connection with this document. This document does not constitute or form part of, and should not be construed as, an offer, invitation, or inducement to purchase or subscribe for any securities nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. NATIONAL INSTRUMENT 43-101 COMPLIANCE Mr. James J. Moore, P.E., the Company's qualified person for this project under NI 43-101, has reviewed and approved this presentation. A NI 43-101 compliant technical report entitled “King-king Copper-Gold Project Mindanao, Philippines” dated October 12, 2010 and prepared by Michael G. Hester, FAusIMM of Independent Mining Consultants, Inc., Donald F. Earnest, P.G., of Resource Evaluation, Inc. and John G. Aronson of AATA International, Inc. has been filed by the Company on www.sedar.com. TSX: SAU March 2012 24 www.sagcmining.com
- 25. Appendix – Project Comparative Details Project Comparatives: Symbol SAU LCC CUU AZC NCU XRC WRN St. Augustine Copper Fox Augusta Exeter Western Company Lumina Copper Nevada Copper Gold & Copper Metals Resources Resource Copper & Gold Project King-king Taca Taca Schaft Creek Rosemont Pumpkin Hollow Caspiche Casino Type Cu-Au Au-Cu-Ag-Mo Cu-Au-Mo-Ag Cu Cu-Au-Ag Cu-Au-Ag Cu-Au-Ag Location Philippines Peru BC, Canada Arizona Nevada Chile Yukon, Canada Stage PFS PFS PFS PFS FS PFS PFS TSX: SAU March 2012 25 www.sagcmining.com