toroparu gold project - sandspring resources · 2019-09-25 · toroparu gold project corporate...
Post on 06-Mar-2020
3 Views
Preview:
TRANSCRIPT
TOROPARU GOLD PROJECT
CORPORATE PRESENTATIONSeptember 2019
TSX‐V: SSP OTCQX: SSPXF
CHICHARRON SILVER‐GOLD PROJECTLocated in the Gran Colombia Segovia District
Re‐Scoped PEA Creates New Opportunities Now 10.5 million‐ounce Toroparu Gold Project in the Guiana Shield
High Grade, Potential Near‐Term Production
TSX-V: SSP | OTCQX: SSPXF
Forward‐looking StatementsCautionary Note Regarding Forward‐Looking Information: Except for statements of historical fact relating to Sandspring Resources Ltd. (the “Company” or “Sandspring”), certain information contained inthis presentation constitutes “forward‐looking information” under Canadian and U.S. securities legislation. Forward‐looking information includes, but is not limited to, statements with respect to thepotential of the Company’s properties; the future price of gold; success of exploration activities; costs and timing of future exploration and development; the estimation of mineral resources; conclusionsof economic evaluations; requirements for additional capital; and other statements relating to the financial and business prospects of the Company. Generally, forward‐looking information can beidentified by the use of forward‐looking terminology such as “plans,” “expects,” or “does not expect,” “is expected”, “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” or “doesnot anticipate,” “believes,” or variations of such words and phrases. Forward‐looking information is based on the reasonable assumptions, estimates, analysis and opinions of the management of theCompany made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that the management of the Company believes to berelevant and reasonable in the circumstances at the date that such statements are made. Forward‐looking information is inherently subject to known and unknown risks, uncertainties and other factorsthat may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward‐looking information,including but not limited to risks related to: the Company’s goal of creating shareholder value by concentrating on the development of the Toroparu Gold Project, believing that it has the potential tocontain economic gold deposits; the Company’s assessment of future plans for the Upper Puruni property; managements’ economic outlook regarding future trends; the Company’s exploration budgetfor the Upper Puruni property, and in particular, the availability of skilled labor, timing and the amount of the expected budget; the Company’s ability to meet its working capital needs at the currentlevel in the short term; expectations with respect to raising capital; sensitivity analysis on financial instruments may vary from the amounts disclosed; and government regulation and environmentalliability, as well as those risk factors discussed or referred to in the Company’s continuous disclosure filings with the securities regulatory authorities in Canada available at www.sedar.com. Although theCompany has attempted to identify important factors that could cause actual results to differ materially from those contained in forward‐looking information, other factors could also cause materiallydifferent results. There can be no assurance that forward‐looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in suchstatements. Accordingly, readers should not place undue reliance on forward‐looking information. The forward‐looking information contained herein is presented for the purpose of assisting investorsin understanding the Company’s expected financial and operational performance and the Company’s plans and objectives and may not be appropriate for other purposes. The Company does notundertake to update any forward‐looking information, except in accordance with applicable securities laws.
Preliminary Economic Assessment ReportThe Preliminary Economic Assessment, prepared by SRK Consulting (U.S.) Inc. with an effective date of June 11, 2019, is entitled “Preliminary Economic Assessment Report, Toroparu Gold Project, UpperPuruni River Area, Guyana”. PEA economics were calculated using a base case of US$1,300/oz gold and US$3.00/lb copper. The PEA Study has been filed on SEDAR at www.sedar.com.
Resource EstimatesThis document uses the terms “resources”, “measured resources”, “indicated resources” and “inferred resources”. United States investors are advised that, while measured resources, indicatedresources and inferred resources are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission (the “SEC”) does not recognize them. Under UnitedStates standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the timethe reserve determination is made. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Further, inferredresources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources willever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally oreconomically. Disclosure of “contained ounces” is permitted disclosure under Canadian regulations, however, the SEC normally only permits issuers to report “resources” as in place tonnage and gradewithout reference to unit measures. Accordingly, information concerning descriptions of mineralization and resources contained in this release may not be comparable to information made public byUnited States companies subject to the reporting and disclosure requirements of the SEC. National Instrument 43‐101 Standards of Disclosure for Mineral Projects (“NI 43‐101”) is a rule developed bythe Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. All resource estimatescontained in this circular have been prepared in accordance with NI 43‐101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System.
CAUTIONARY NOTESForward‐looking Statements and Cautionary Notes
2
TSX-V: SSP | OTCQX: SSPXF 3
SANDSPRING ‐2019 GOING FORWARDFlagship Toroparu and Chicharrón
• Increasing Gold Prices• Improved economics
• Longer mine life
• Two Phases of development:
• 1999 – 2009 Private Venture
• 2009 – 2019 Public Company
• Continuity of Management
• Years of experience in all aspects of mining industry
• Potential near term production
• New zone identified• Historical production
on site
• New PEA based on feasibility level information
• Improved economics, longer LOM
• Reduced Capex, Costs• Recognized Jurisdiction
Upgraded Toroparu Chicharrón
LeverageExperienced Board &
Management
Ranked #8 on The Northern Miner’s top 10 US‐based Mid‐Tier & Junior Precious Metals Companies
TSX-V: SSP | OTCQX: SSPXF 4
FLAGSHIP ASSETToroparu: Largest gold project in South America held by a junior
Toroparu
4.5Moz Au total production over 24 yr LOM
$1.25B A/T Free cash flow (with Wheaton PMPA)*
20.3% A/T IRR*, $495M A/T NPV5%, AISC $812 LOM
$378M Initial Capex$272M Financing Requirement
2.92 year Payback
Toroparu Exploration Upside
Satellite deposit potential (53k ha property area)
Mark Bristow: “the Guiana Shield, a significantly underexplored region and one of the most
prospective in the world for large scale gold discoveries”
In situ infrastructure for exploration
De‐Risked
Environmental Authorization & Mineral Agreement in place
Excellent relationship with Guyana Government
Strong Social License ‐ RoadConstruction – Pontoon Operation
Demonstrated exploration successes
*For Base Case @ US$1300/oz Au
TSX-V: SSP | OTCQX: SSPXF 5
TOROPARU PEA HIGHLIGHTSBase Case Metrics including Wheaton Precious Metals Support
Capital Requirements of
$272M(including
Wheaton PMPA)
4.5M oz Au Production
24 Year LOM
A/T FCF $1.25B
A/T IRR of 20.3%
A/T NPV5% of $495M
2.92 year Payback
TSX-V: SSP | OTCQX: SSPXF 6
PEA HIGHLIGHTSToroparu: Largest gold project in South America held by a junior
Metric w/o PMPA w/ PMPA w/ PMPA w/ PMPA w/ PMPAGold Price (incl $16/oz Ag & $3/lb Cu) $1,250/oz $1,400/oz $1,500/ozLOM (years) 24 24 24 24 24Gold Production (koz) 4,516 4,516 4,516 4,516 4,516Payable Gold (koz) 4,488 4,488 4,488 4,488 4,488Payable Silver (koz) 4,460 4,460 4,460 4,460 4,460Payable Copper (klb) 124,730 124,730 124,730 124,730 124,730After‐Tax FCF (US$M) $1,389 $1,251 $1,121 $1,511 $1,771After‐Tax IRR 16.56% 20.25% 18.16% 24.20% 27.68%After‐Tax Payback (yr) 3.67 2.92 3.27 2.34 2.02After‐Tax NPV5% (US$M) $519 $495 $428 $628 $760
Capital RequirementsInitial Capital (US$M) $360 $360 $360 $360 $360Capitalized Pre‐Stripping (US$M) $18 $18 $18 $18 $18Wheaton Finance (US$M) $0 ($106) ($106) ($106) ($106)Net Financing Requirement $378 $272 $272 $272 $272Sustaining Capital (US$M) $614 $614 $614 $614 $614
Cost StructureDirect Operating Costs ($514.16) ($514.16) ($514.16) ($514.16) ($514.16)Indirect Costs ($109.55) ($102.02) ($98.43) ($109.20) ($116.38)Total Cash Op Costs ($650.71) ($643.18) ($639.59) ($650.36) ($657.54)Sustaining Capex ($136.75) ($136.75) ($136.75) ($136.75) ($136.75)Corporate G&A + Exploration ($6M/yr) ($32.08) ($32.08) ($32.08) ($32.08) ($32.08)TOTAL AISC ($819.55) ($812.01) ($808.42) ($819.20) ($826.38)
Base Case
$1,300/oz
Sensitivity to Gold Price
$495MAfter‐Tax NPV5%
$272MNet Financing
Requirement with Wheaton Finance
20.25%After‐Tax IRR
At $1,300 Base Case:
TSX-V: SSP | OTCQX: SSPXF 7
TOROPARU 2013 PFS VS 2019 PEAToroparu PEA (based on feasibility level information generated in 2014)
Goal: Utilize new shallow‐gold‐only Satellite Deposit at Sona Hill to identify Project with Lower Initial Capex that provides Project Economics similar to PFS
• PFS: Dual Processing Streams – CIL and Flotation processes (23,000 tpd)• Average Gold Production: 224,000 ozs over 16 year mine life
• PEA: Two Phase Operation• Initial Phase (Years 1 ‐10) CIL only – 11,500 tpd • Second Phase (Years 11 – 24) CIL + Flotation ‐ 23,000 tpd
• Initial Phase: Average Gold Production in first 5 years: 175,000 ozs• Initial Phase: Total Gold Production: 1.476 M ozs
• Second Phase: Average Gold Production 217,000 Ozs• Second Phase: Total Gold Production 3.04 M Ozs
• Gold Production Life of Mine: AISC:• PFS: 3.7 M Ozs Au PFS: $817• PEA: 4.5 M Ozs Au PEA: $812
• PFS Initial Capex: $501M • PEA Initial Capex: $378M
• Estimate Reviewed by Pathfinder Inc. (https://www.pathfinderinc.com/industries/metals‐mining)• Pathfinder estimate within 3% of Sandspring Estimate
TSX-V: SSP | OTCQX: SSPXF
• Initial Capex: PFS:$501M vs PEA: $378M• CIL start‐up to produce gold only (1.476 M ounces) over first 10 years of mine life
• Simpler start‐up – average gold production of 175,000 ozs over first 5 years• No need to transport gold‐rich Cu concentrates over Interior Roads from Day 1• Lower energy requirements over first 10 years
• Addition of Flotation in Year 11 increases Au production to 217,000 ozs per year• Internally financed Run‐of‐River Hydro Project to power Operations after start‐up of
flotation results in significantly reduced operating cost• Life of Mine Gold Production increases by 800,000 ozs under PEA
8
TOROPARU PFS VS PEAWhich Project at Higher Gold Prices ‐ Optionality
TSX-V: SSP | OTC: SSPXF
WHEATON PRECIOUS METALS AGREEMENTSignificantly De‐Risks Project Finance Requirements
9
• Precious Metals Purchase Agreement (PMPA) with Wheaton Precious Metals 1
• Key transaction terms:– 10% of LoM gold production at US$400/oz Au– 50% of LoM silver production at US$3.90/oz Ag– US$15.5 M early deposit received– US$138 M project installments for royalty stream– Total contribution toward PFS project capex: US$153.5 M– Estimated contribution toward PEA project capex: US$106 M
• Wheaton Precious Metals early deposit agreement originally signed in 2013
• Agreement expanded in 2015 after 2014 final feasibility work• Substantially reduces project finance requirement by ~30%
1 PMPA currently requires completion of a Feasibility Study by December 31, 2019. After reviewing the feasibility, Wheaton Precious Metals (WPM) has the option to continue or opt out of the PMPA. If WPM elects not to proceed, Sandspring can choose to return US$11.5 million to WPM and terminate the GSPA, or can reduce the gold stream from 10% to 0.909% and the silver stream from 50% to nil.
TSX-V: SSP | OTCQX: SSPXF
Significant Potential Savings• Self‐generation operating cost including financing ~US$59.40/mWh (fuel oil ~US$151.28/mWh)
• Years 10‐24 cost ~US$91.40/mWh based on blend of 79% hydro‐21% thermal power generation
• 50km SW of Toroparu and 110km SW of Aurora (GUY)
• Capex ~US$124M for 35MW run‐of‐river project
• Construction to start in Year 7, full capacity in Year 10
10
KURUPUNG RIVER HYDRO PROJECTOperational Savings
GROWING WORLD‐CLASS ASSETOne of the Largest Undeveloped Gold Deposits Owned by an Independent Junior Company
Toroparu’s 10.5 Moz of in‐situ gold (MI&I) resources and average grade ranks it among the world’s top deposits owned by an independent junior company, and second in South America
Source: SNLNote: Includes assets >1Moz Au contained resource (inclusive of reserves) and in feasibility stage or earlier.
“We measure
optionality in ounces, not
acres…”‐Randy
Smallwood, WPM
11
10 Largest Undeveloped Gold Deposits in South America Held by Independent Juniors
Rank Deposit NameSize(Mt)
Grade(g/t)
ContainedOunces
Location Ownership
1 Toroparu 382 0.86 10,503,000 Guyana Sandspring
2 Cangrejos 408 0.65 8,500,000 Ecuador Lumina Gold
3 Titiribi 494 0.50 7,900,000 Colombia GoldMining
4 Volta Grande 196 0.96 6,107,000 Brazil Belo Sun Mining
5 Fenix 492 0.37 5,852,000 Chile Rio2
6 Condor 208 0.58 3,894,000 Ecuador Luminex
7 Loma Larga 25 3.86 3,040,000 Ecuador INV Metals
8 Culebrillas 8 12.00 3,009,000 PeruGalaxy Minerals / Real Aventura
9 Santa Luz 49 1.58 2,477,000 Brazil Leagold
10 Borborema 69 1.10 2,430,000 Brazil Big River Gold
TOROPARU MI&I RESOURCESOne of the Largest Undeveloped Gold Deposits Owned by an Independent Junior Company
12
Tonnes Tonnes(000's) (g/t) (000's oz) (000's) (g/t) (000's oz) (%) Mlbs
Toroparu 227,416 0.90 6,556 227,416 0.84 6,130 0.086 433SE Zone 13,383 0.94 403 13,383 0.35 152 0.036 11Sona Hill 11,772 1.04 394 0 n/a n/a n/a n/aConcession 252,571 0.91 7,353 240,799 0.81 6,282 0.084 444Inferred ResourceToroparu 116,629 0.74 2,776 116,629 0.07 266 0.040 103SE Zone 686 0.83 18 686 0.45 10 0.049 1Sona Hill 11,630 0.95 356 0 n/a n/a n/a n/aConcession 128,945 0.76 3,150 117,315 0.07 276 0.040 104
In‐Pit Mineral Resource Statement within US$1,350/oz Au Resource Pit
AuAu Resources
Ag CuCu & Ag Resources
M&I Resource
SRK ‐ 9/20/2018 In‐Pit Resources at 0.30 Au (g/t) Cut‐off (within US$1,350/oz Au Resource Pit)Upper Puruni Concession Total Resources1, 2
1 All resources in the September 20, 2018 mineral resource statement are in‐pit resources reported within an optimized pit shell above an economic cut‐off grade of 0.30 g/t Au. The optimized pit shell was determined for Measured, Indicated and Inferred resources using an Au price of US$1,350/oz, a Cu price of US$3.00/lb; an average metallurgical recovery of 88.2% for Au, and 81.5% for Cu mill feed sent to the Cu flotation circuit. The optimized pit shell was determined using an average mining cost of US$1.60/t mined, saprolite processing cost of US$2.50/t, CIL processing cost of US$8.50/t, flotation processing cost of US$10.47/t, and G&A cost of US$1.24/t processed. Other costs included US$125/oz Au for Au refining and royalties, and US$1.036/lb for Cu concentrate transportation and smelting with 97% pay for terms. Pit slopes used in the pit optimization were 45°. Copper and Ag resources have not been estimated at Sona Hill. 2 Mineral Resources are reported in accordance with Canadian Securities Administrators (CSA) National Instrument 43‐101 (NI 43‐101) and have been estimated in conformity with generally accepted Canadian Institute of Mining, Metallurgy and Petroleum (CIM) "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding. 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.
TSX-V: SSP | OTC: SSPXF
‐‐
$50
$100
$150
$200
$250
Enterprise Value / U
S$ oz G
old Re
source
Enterprise Value per Ounce of Gold
DEEP VALUE INVESTMENT OPPORTUNITYTrading at < US$5 EV/oz gold resource
Source: Company filings, FactSetNote: EV/oz calculated using attributable EV and attributable M&I resource (inclusive of reserves). Market data as of 22‐Aug‐19.
Median: US$67/oz
TSX-V: SSP | OTC: SSPXF
LEVERAGE TO GOLD PRICERising gold price delivers
14
After‐TaxUS$1,250/oz
AuUS$1,400/oz
AuUS$1,500/oz
AuNPV5% $428M $628M $760MIRR 18.16% 24.20% 27.68%Payback 3.27 years 2.34 years 2.02 yearsFree Cash Flow $1,121M $1,511M $1,771M
Toroparu delivers $1.8B Free Cash FlowAt $1500 Au Price
15TSX-V: SSP | OTC: SSPXF
LOCATION – GUIANA SHIELDOverview of Gold Deposits
Venezuela In‐situ GoldChoco ~18 MozLas Cristinas ‐ Las Brisas ~26 MozLa Camorra ~1.5 Moz
GuyanaAurora (Guyana Goldfields) ~9 MozToroparu (Sandspring) ~10 MozKAROUNI (Troy) ~1.1 MozOmai (Iamgold–closed) ~4 Moz
Suriname Gros Rosebel (Iamgold) ~14 MozMerian‐Nassau (Newmont) ~4 Moz
French Guiana Yaou ~1 MozCamp Caiman (Iamgold) ~3 Moz
Paleozoic and Recent Sediments
Upper Proterozoic Sediments
Clastic Sediments (Roraima)
Large intrusive zonesGranitoid BatholithesVolcano-sedimentary BeltsArchean formations
Regional ShearzonesPanafrican Mobile Belts
Lower Proterozoic
Late Lower ProterozoicIntrusives and Volcanics
Reconstruction of the West Africa and Guiana Shields
TSX-V: SSP | OTC: SSPXF
• Puruni Shear Corridor: a regional feature that can be traced more than 100 km into the Venezuelan Gold District
• Venezuela: > 20 bedrock gold mineralization systems, including several multi‐million ounce gold deposits for > 45 Moz in‐situ gold
• Guyana Underexplored: volcano‐sedimentary belt resources include Toroparu (Sandspring), Aurora (Guyana Goldfields) and Karouani (Troy) with > 20 Moz in‐situ gold
• Majors Moving In:
• Barrick JV with Reunion Gold
• Zijin Strategic Investment – Guyana Goldstrike
REGIONAL EXPLORATION POTENTIALWestern Guiana Shield
?
Coastal Plaines/Sediments
Coasta l Pl aines /Sediments
BARTIKA
LINDEN
GEORGETOWN
Mathews Ridge
Port Kaituma
ParikaAurora
MillionMountain
Peter's Mine
TOR
Puruni Landing
RoadCamp
Eagle Mountain
Omai
Itabali
MAIN ACCESS ROAD
PURUNI
PUTA REN G
MAZARUNI RIVER
Kaitum
a
Wynamu
Toroparu
Esse
quib
o
Dem
erar
a
Cuyuni
Mazaruni
Bara
ma
Maz aruni
Rio OrinocoOrinoco
Northwestern GUYANA
VENEZUELA
Bartika
Itabali
Atlantic Ocean
BRASIL
0 50 100 km
Geological Sketch - Western Guiana ShieldLegend
Roraima Basin : Late Paleo-Proterozoic(1.7 - 1.8 Ga) clastic sedimentsPaleo-Proterozoic(2.0 - 2.3 Ga) Volcano-sedimentary BeltsArchean Formations ( > 2.6 Ga)
Multi Moz Gold Deposits < 1 Moz Gold DepositsBedrock Gold Mineralization
Major Structural lineaments
Otomung PLs
GS14: G-102GS14: G-103
Aurora
Hick's Smart
Las ChristinasLas Brisas
Choco
Tassawini
Upper Cuyuni
Gold District
El Callao Gold District
Marwani Gold District
Cuyuni-Mazaruni
Gold District
Northwest
Gold District
TOROPARU
>45M oz in‐situ Au in Venezuela on Guiana Shield
16
TSX-V: SSP | OTCQX: SSPXF 17
CHICHARRÓN PROJECTStrategic Acquisition
Chicharrón Project:
• Located 130 km NE of Medellin (227 km by road) in Segovia & Remedion Municipalities, Antioquia
• 7°04’45” N and 74°40’07” W (Guia Antigua mine). Located ~4.4 km east of town of Segovia.
• Gran Colombia Gold focused on Segovia District; Amended NI 43‐101 Technical Report Prefeasibility Study Update filed on Sedar; authored by SRK Consulting (US) dated April 25, 2019
Why Any Acquisition?
• Potential near‐term production
• Cash Flow
• Geographic diversification
Why Chicharrón?
• Small yet high grade
• Good location
• Helpful neighbors
TSX-V: SSP | OTCQX: SSPXF 18
GUÍA ANTIGUA MINESampling Programs
Gran Colombia Gold (GCG) 2017‐2018 exploration program confirms high‐grade mineralization in Guía Antigua mine
• Guias Gold, operator from 2014‐2016 reported avg. of 466 g/t Ag and 7.44 g/t Au from ~1,000 samples collected while mining
• GCG 2017 check‐assay program reported 151.24 g/t Ag and 15.64 g/t Au grades over 29 check‐assay program
• GCG 2018 results include 140.9 g/t Ag and 5.46 g/t Au grades over 115 sample program
• Sandspring Exploration Program to analyze variability between historical reports and GCG data
TSX-V: SSP | OTCQX: SSPXF 19
CHICHARRÓN EXPLORATION CAMPAIGNQ4 2019 Drill Program
Surface Geology• Recent completion of
surface geologic mapping by GCG
• Outcrops indicate sigmodal flexure in Chicharron Shear
• Sinestral movement along fault creates dilational zone
• Intact quartz veins outcropping in saprolite forms drill target
TSX-V: SSP | OTCQX: SSPXF 20
CHICHARRÓN EXPLORATION CAMPAIGNMineralized Vein Outcrop & Q4 2019 Drill Program
Mineralized Vein Outcrop• 13 channel samples in vein • 2.4 kg average weight• 1.88g/t avg. Au • 5 samples > 2g/t
• 3.24 g/t• 2.24 g/t• 3.5 g/t• 8.2 g/t
Drill Program • 1300 m drill program scheduled for late Q3 – early Q4
• $305,000 budget @$225/m (all‐in)
TSX-V: SSP | OTC: SSPXF
CORPORATE SNAPSHOTSignificant Insider Support
Share Structure
Common Shares 279.2M
Options 17.4M
Warrants 165.0M
Fully Diluted Shares 461.6M
Total Insider Holdings 38.2%
Top Shareholders: Gran Colombia GoldFrank GiustraBrian Paes‐Braga
21.0%8.5%5.9%
Cash on Hand C$9.1M
52‐week trading range (9/5/19)
C$0.15 ‐ $0.45
John Adams, Chairman+35 years experience; Advancing Toroparu since 1999; Director, Rojo Resources; Chairman/President, Energy Fuels Corporation
Richard Munson, Director & CEO+35 years experience; Advancing Toroparu since 1999
Greg Barnes, Director & Executive Vice PresidentSpecialist in trading, production and commodity investment in developing countries
Suresh Beharry, Independent DirectorCo‐Chairman, Beharry Group (conglomerate operating in Guyana/Caribbean)
David Constable, Ind. Director, Audit Comm Chair+40 years experience; Professional Geologist; Chairman, U308 Corp; former VP Investor Relations, FNX Mining Inc.
David Laing, Independent DirectorCOO, Trek Mining; Formerly with True Gold, Quintana Resources, Endeavour Mining, and mining investment banking
Harry Pokrandt, Independent DirectorCEO, Blockchain Technologies Ltd; experienced director and former investment banking
Gordon Keep, Independent DirectorCEO, Fiore Management & Advisory Corp.(private firm managing broad portfolio of equity investments)
Lombardo Paredes, Independent DirectorCEO, Gran Colombia Gold Corporation
Federico Restrepo‐Solano, Independent DirectorPartner & Corporate Director of Qvartz Capital Partners
21TSX-V: SSP | OTC: SSPXF
CORPORATE SNAPSHOTSignificant Insider Support
Share Structure
Common Shares 279.2M
Options 17.4M
Warrants 165.0M
Fully Diluted Shares 461.6M
Total Insider Holdings 38.2%
Top Shareholders: Gran Colombia GoldFrank GiustraBrian Paes‐Braga
21.0%8.5%5.9%
Cash on Hand C$9.1M
52‐week trading range (9/5/19)
C$0.15 ‐ $0.45
John Adams, Chairman+35 years experience; Advancing Toroparu since 1999; Director, Rojo Resources; Chairman/President, Energy Fuels Corporation
Richard Munson, Director & CEO+35 years experience; Advancing Toroparu since 1999
Greg Barnes, Director & Executive Vice PresidentSpecialist in trading, production and commodity investment in developing countries
Suresh Beharry, Independent DirectorCo‐Chairman, Beharry Group (conglomerate operating in Guyana/Caribbean)
David Constable, Ind. Director, Audit Comm Chair+40 years experience; Professional Geologist; Chairman, U308 Corp; former VP Investor Relations, FNX Mining Inc.
David Laing, Independent DirectorCOO, Trek Mining; Formerly with True Gold, Quintana Resources, Endeavour Mining, and mining investment banking
Harry Pokrandt, Independent DirectorCEO, Blockchain Technologies Ltd; experienced director and former investment banking
Gordon Keep, Independent DirectorCEO, Fiore Management & Advisory Corp.(private firm managing broad portfolio of equity investments)
Lombardo Paredes, Independent DirectorCEO, Gran Colombia Gold Corporation
Federico Restrepo‐Solano, Independent DirectorPartner & Corporate Director of Qvartz Capital Partners
21
TSX-V: SSP | OTCQX: SSPXF
CONCLUSIONAdvancing Toroparu and Chicharrón
• 7.4M oz M&I + 3.2M oz Inferred• PEA: 4.5M oz Au production, 24 yr mine life, $1.25B A/T FCF (with Wheaton)
• District‐scale top undeveloped gold projects in South America held by a Junior
World Class Gold Asset in Toroparu
•Management and Board are invested•WPM agreement to reduce Capex • Gran Colombia largest shareholder• Frank Giustra 2nd largest shareholder• Top 10 US‐based mid‐tier & junior precious metals companies by The Northern Miner
Key Support from Financial Partners
• Geopolitical diversification• Fast track to potential production• Former production
Chicharrón Exploration –Drilling to Commence
22
“I believe we are in the third and
final phase of the gold market that started in 2001 and this will be
the most explosive phase
for gold.”Frank Giustra
“I believe that it would be both
risk‐reducing and return‐enhancing to consider adding
gold to one’s portfolio.”Ray Dalio
THANK YOU
TSX‐V: SSP OTCQX: SSPXF
Sandspring Resources Ltd. 9137 East Mineral CircleCentennial, CO 80112 USA
IR phone: 720‐854‐0104info@sandspringresources.comwww.sandspringresources.com
APPENDIX
TSX‐V: SSP OTCQX: SSPXF
CONCESSION POTENTIALResource Growth from Drill Ready Targets
• Series of “magnetic low” features align with the southern Puruni Shear Corridor boundary
• Magnetic lows interpreted as small plutons of intermediate composition similar to tonalitic‐quartz‐dioritic intrusives at Toroparu
• Overlaying the geochemical results indicate the majority of gold anomalies are associated with these “magnetic low” features
• Large hydrothermal halo extends for 20km x 7km around the Toroparu Deposit
• Geochemical footprint is indicative of poly‐phased hydrothermal alteration, suggesting that more mineralization systems exist
• Cluster of ten gold anomalies within 20km of Toroparu represent advanced‐stage exploration targets
AirborneMagnetics
High
Low
0 5 10 15km
6800
0069
0000
7000
0071
0000
7200
0073
0000
7400
00
680000690000
700000710000
720000730000
740000
790000 800000 810000 820000 830000 840000 850000 860000 870000
790000 800000 810000 820000 830000 840000 850000 860000 870000
UTM PSAD56 zone 20N
UPPER PURUNIGEOLOGICAL SKETCH 81
0,00
0
820,
000 UTM PSAD Zone 20N
Toroparu Au-Cu-Ag Deposit
Upper PuruniConcession
Interpreted Restraining Bending Zone in Puruni Shear Corridor
WYNAMU
TIMMERMANS
AMEEBARED DRAGON
Otomung
Concession
SONA HILL
5 km
REPROCESSED AIRBORNE MAGNETIC DATA?
069
0000
6950
0070
0000
7050
0071
0000
7150
0072
0000
7250
0073
0000
6690000
695000700000
705000710000
715000720000
725000730000
805000 810000 815000 820000 825000 830000 835000 840000 845000 850000
LEGEND
Granitoid batholithes (G2)
Granodiorites/Tonalites (G1)
Mafic Metavolcanics
Felsic/Interm. MetavolcanicsSediments
Litho-structural lineaments
Fault lineaments
Late Proterozoic mafic intrusions
Regional Geochem Surveyvalues > 50ppb
Hydrothermal Halo
Toroparu Au-Cu-Ag Deposit
Upper PuruniConcession
WYNAMU
TIMMERMANS
AMEEBARED DRAGON
SONA HILL
5 km
UTM PSAD56 Zone 20N
0 5 km
25
TSX-V: SSP | OTC: SSPXF
MINING & METALLURGYThree ore types fed to 2 parallel process circuits
Fresh Au/Cu Ore
Fresh Au Ore (grey)Processing: Whole Ore
Leach
Constrained Resource shell (green)
TOROPARU MAIN
TOROPARU SOUTH EAST
26
SONA HILL
Au‐Cu at Main & South EastOnly Au at Sona Hill
MAY 2013 PRE‐FEASIBILITY Toroparu Mine Site Layout
• Compact footprint• Main Pit and Satellite Pit• Central stock pile• Tailings dam 8km away in a natural depression with mountains on three sides
27
TSX-V: SSP | OTC: SSPXF
OPERATING COSTSToroparu
28
LoM Operating Costs Expenses US$/t US$/tArea US$000s Mined MillMine $1,037,567 $1.59 $6.64Processing* $1,464,680 n/a $9.37G&A $276,221 n/a $1.77Total Operating $2,777,048 n/a $17.77
AISC $812/oz Au
TSX-V: SSP | OTC: SSPXF
METALLURGICAL RECOVERY DETAILSMay 2013 Pre‐Feasibility Study
1. Metallurgical Recoveries as outlined in Pre‐Feasibility Study prepared by SRK Consulting (U.S.) Inc. with an effective date of May 8, 2013, entitled “NI 43‐101 Technical Report Pre‐Feasibility Study, Toroparu Gold Project, Upper Puruni River Area, Guyana”. See Cautionary Notes.
Metal Recoveries Pre‐Prod Year 1‐5 Year 1‐10 Life of Mine
Saprolite Au Ore Leach (Doré)Gold Recovery 98% 98% 88% 96%
Fresh Au/Cu Ore (Concentrate + Doré)Gold Recovery 88% 88% 88%Copper Recovery 91% 91% 91%
Fresh Au Ore Cyanide Leach (Doré)
Gold Recovery 95% 95%
Doré vs. Concentrate Production Gold in Doré 100% 65% 73% 78%Gold in Concentrate 35% 27% 22%
Concentrate
Annual Concentrate Production 42k dmt 30k dmt 26k dmtCopper Grade 21% 21% 21%Gold Grade 60 g/t 63 g/t 62 g/t
29
top related