origin corp pres mill sept-15 2018 v2 · 2018-09-19 · from 1988 to 1993, he managed audit...
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Origin GoldCorporation CORPORATE PRESENTATION
TSXV: OIC1
September 15, 2018
Origin GoldCorporation CORPORATE PRESENTATION
TSXV: OIC2
Regional Gold Milling in Colombia
September 10, 2018
Origin GoldCorporation FORWARD-LOOKING STATEMENT
TSXV: OIC3
Caution regarding forward-looking information:
This presentation contains forward-looking statements. The completion of the future business, operations and performance ofthe Corporation discussed herein could differ materially from those expressed or implied by such statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations,including whether the transactions contemplated herein are completed. Forward-looking statements are based on a number ofassumptions which may prove to be incorrect including the ability of the Corporation to obtain necessary financing to completethe proposed project.
There can be no assurances that forward-looking statements will prove to be accurate, as actual results and future eventscould differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance onforward-looking statements. The cautionary statements qualify all forward-looking statements attributable to the Corporationand persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this pressrelease and the Corporation has no obligation to update such statements except as required by law.
Origin GoldCorporation
ORIGIN REGIONAL 150/300 tpd* GOLD MILL
TSXV: OIC4
Gold mining district, Bolivar Province, Colombia
• ORIGIN completed a Study fora 150/300 tpd* gold processingplant in South Bolivar,Colombia
• Gold mined in the area sincepre-colonial times
• Gold still mined by thousandsof artisan miners
• Gold extraction by mercuryamalgamation yields lowrecovery (40-45%) vs. 90% forORIGIN plant.
* tonnes per day
Origin GoldCorporation
ARTISANAL MINING
TSXV: OIC 5
Origin GoldCorporation
ARTISANAL PROCESSING
TSXV: OIC 6
Origin GoldCorporation
Artisan Miners Production within 40 km Radius of Mill Site
TSXV: OIC7
– Production of 300 tpd materialat an average grade of 20g/tAu from the first 60 artisanmining sites alreadyinvestigated
– Additional 50 artisan miningsites pending investigation
– Estimated total miningproduction of more than 500tpd in the region
GOLD MINERAL SUPPLY
Origin GoldCorporation
ARTISAN MINERS INCENTIVES TO WORK WITH ORIGIN
TSXV: OIC8
• Artisan miners revenue would increase by 27% at actualproduction rate
• Artisan miners production could increase by anadditional 30% as no time is spent on processing
• Better gold recovery with ORIGIN
• Elimination of the illegal use of mercury
• Artisan miners will operate legally and will be entitled toSocial Security
• Better and safer mining practices.
Origin GoldCorporation
INFRASTRUCTURE
TSXV: OIC9
ACCESS-WATER-POWER-MANPOWER-SECURITY
3 phases powerline (13.5 KV)near PuebloMejia
River North ofPueblo Mejia
• Many access roads in the area.
• Water is abundant from rivers andaquifers
• High voltage power available in thearea
• Abundant mining and processingworkforce
• Calm and secure area with presenceof Police and Army
Origin GoldCorporation PRODUCTION OF GREEN GOLD
TSXV: OIC10
• The mill will use state of the art technology.
• Abiding by the strict environmental norms of the World Bank.
• Minimum consumption of chemical by using gravimetricconcentration.
• Recycling of all water used in the process.
• No risk of tailings spills by opting for dry tailings.
• ORIGIN would produce “Green Gold”
Origin GoldCorporation MILL OPERATION PARAMETERS
TSXV: OIC11
• Mill capacity : 150/300 tpd.
• Gold recovery: 90%
• Gold grade of feed: 20.7g/t Au.
• Gold price: US$1,200
• CAPEX: US$ 6.6M/10.4M
• Operating cost: US$830/819/oz Au
• EBITDA: US$ 12.7M/26.2M
• Annual Production: 31,400/62,900 oz of Green Gold
Origin GoldCorporation
PROJECT ECONOMICSfor Phase I and II (150 t/d - 300 t/d)
12
@ 150 t/d @ 300 t/d
Production Capacity t/year 52,500 105,000
Revenues
Gold Grade g/t 20,7 20.7
Recovery % 90% 90%
Gold Production oz 31,446 62,892
Gold Revenues USD 37,735,020 75,478,457
Silver Grade g/t 166 166
Recovery % 27% 27%
Silver Production oz 75,652 151,305
Silver Revenues USD 1,134,785 2,269,823
Total revenues USD 38,869,805 77,748,280
Production costs
Operation costs USD 2,989,440 4,980,150
Administration costs Montreal USD 900,000 1,200,000
Administration costs Colombia USD 650,000 870,000
Ore costs USD 21,577,130 44,478,399
Total Production Costs USD 26,116,570 51,528,549
Profit before income tax USD 12,753,235 26,219,730
Income tax 33% 4,208,570 8,652,511
Net Profit before depreciation and interests USD 8,544,665 17,567,219
Typical Year of Mill Production
Origin GoldCorporation PLANT DESIGN – SCHEDULE - BUDGET
TSXV: OIC13
• Metallurgical tests, flow sheet
and plant design.
• All the required equipment ofsuperior quality at hand fromsuppliers in Medellin, Colombia.
• Schedule: 18 months to completion.
• Capital cost
– Phase I (150 t/d): US$ 6.6 million
– Phase II (300 t/d): US$ 3.8 million
Origin GoldCorporation PROJECT CAPITAL COST
14
Plant USD USD USD
Equipment Cost 1,680,409 903,757 2,584,166
Civil 360,500 156,333 516,833
Installation 640,751 134,499 775,250
Electrical 540,751 234,499 775,250
Piping 180,251 78,166 258,417
Instrumentation 90,125 39,083 129,208
Transport 117,163 50,808 167,971
3,609,950 1,597,145 5,207,095
Infrastructure
Clean water wells 20,000 20,000
Roads improvement - 600,000 600,000
Mobile equipment 350,000 150,000 500,000
Mobile crane 250,000 250,000
Machine shop 243,950 243,950
Warehouse, office, reagent storage, washrooms, dry 83,300 83,300
Electrical power generation 553,350 317,334 870,684
Tailing pad 100,000 100,000 200,000
1,600,600 1,167,334 2,767,934
EPCM 390,532 390,532 781,064
Laboratory 150,000 207,000 357,000
540,532 597,532 1,138,064
Grand Total 5,751,082 3,362,011 9,113,093
Unforeseen, miscellaneous 814,135 491,651 1,305,786
Total CAPEX 6,565,217 3,853,662 10,418,879
Land acquisition cost 120000 0 120,000
Working Capital 1000000 0 1,000,000
CAPEX Phase II: 300t/d CAPEX
TOTAL
CAPEX Phase I: 150 t/d
Origin GoldCorporation PLANT LAYOUT
TSXV: OIC15
Origin GoldCorporation
CONCLUSIONS:WIN-WIN FOR ALL STAKEHOLDERS
TSXV: OIC16
ORIGIN• Net Profit (before depreciation and interests) per year:
– For Phase I @ 150 t/y: US$ 8.54 million– For Phase II @ 300 t/y: US$ 17.56 million
• Payback in 1.8 years• Production of “Green Gold”ARTISAN MINERS AND CONCESSION OWNERS• Increase production and safety• Increase profitsGOVERNMENT• Legalisation of Artisan Miners.• Collects its 4% NSR on Gold production.• Collects corporate taxes.COMMUNITY• Elimination of mercury.• Cleaner environment.• Greater standard of living.
Origin GoldCorporation CORPORATE STRUCTURE
TSXV: OIC As of September 16, 201817
$Cdn
Shares issued 40,909,191
Warrants 6,385,261
Options 3,046,956
Fully diluted 50,341,408
Share price $0.10
52-week low $0.09
52-week high $0.14
Ownership (Shares issued):
Directors and officers 28% 11,467,883
Goldcorp Inc. 9% 3,478,261
Origin GoldCorporation
MANAGEMENT AND BOARD OFDIRECTORS
TSXV: OIC18
Rejean Gosselin, President and CEO, Director
Rejean Gosselin graduated from Laval University in 1979 with a M.Sc. in Geology. He has worked as a consulting geologist on uranium, gold and
base metals mining exploration projects in Canada, United States, and South America since 1979. For the past 35 years, Rejean acted as founder
and promoter of numerous junior mining companies exploring for different commodities in Canada, West Africa, and Mexico. Rejean is responsible for
gold and base metals discoveries in Canada and Mexico. Recent involvements include Dia Bras Exploration (now Sierra Metals) as President and
CEO from 2003 to 2008 and most recently as Chairman of the Board of Maya Gold and Silver.
Vatche Tchakmakian, CFO
Mr. Vatche Tchakmakian is a Chartered Professional Accountant (CPA, CA) with over 25 years of experience in the minerals industry. He is
specialized in the field of public companies and securities regulations in Canada. Mr. Tchakmakian has been an officer of several public companies in
the mineral sector having operations in Canada, and South and Central America. From 1988 to 1993, he managed audit assignments at one of the
predecessors of PricewaterhouseCoopers LLP, a national accounting firm, for a number of large private and public companies. Mr. Tchakmakian
received his B.S. in Public Accounting from École des Hautes Études Commerciales, Université de Montréal in 1988. He is a member of the TSXV
Advisory Committee.
Jean Depatie, Chairman of the Board, Director
Internationally recognised expert in the mining world in financing, takeovers, and mergers and acquisitions, Mr. Depatie has been at the forefront of
the mining industry for the past 45 years. He has been a director of Glamis Gold Ltd. that was sold to Goldcorp Inc., creating a $21.3-billion entity, a
past Director of Novicourt Inc. (acquired by Xstrata plc, now Glencore plc), and a past Director of Consolidated Thomson Iron Mines Ltd. (acquired by
Cliffs Natural Resources Inc. in a $4.9-billion transaction in 2011). Mr. Depatie has served many public companies at the highest levels and has been
actively involved in exploration and economic geology in Canada and abroad. Mr. Depatie holds both Bachelor of Science and Master of Science
degrees in Geology from Laval University.
Origin GoldCorporation
MANAGEMENT AND BOARD OFDIRECTORS
TSXV: OIC19
Pierre Colas, Director
Mr. Pierre Colas is a retired Quebec based investment banker and was Vice-President & Managing Director Investment banking at Industrielle
Alliance Securities Inc. ("IAS"). Prior to his appointment at IAS, he was First Vice-President Investment Banking at Desjardins Securities Inc.
He has successfully transacted over $5B in equity financing and participated in the initial public offering of more than 100 new companies. Mr.
Colas was a member of the Advisory Committee on the small and midcap companies for the Autorité des marchés financiers ("AMF") in
Québec and was a member of the TSX Venture Exchange Advisory Committees. Mr. Colas holds a Bachelor degree in Commerce from the
University of Concordia, Montreal.
Jacques Authier, Director
Mr. Jacques Authier is a Chartered Professional Accountant, holding a M.Sc. Comm from the University of Sherbrooke, offering consulting
services in the areas of tax planning, wealth management and corporate finance. Mr. Authier was a partner at the international accounting firm
Ernst & Young, from 1988 to 2009, where he developed extensive expertise in audit services, corporate finance and tax planning. Since then,
he has acted as financial consultant for high net worth families and he has been involved in several privately owned enterprises, as partner and
director.
Origin GoldCorporation
ADVISORY BOARD
TSXV: OIC20
Daniel Goffaux, Technical Advisor
Daniel Goffaux, P. Eng. M.Sc. Mining and Geology, former VP Latin America for Breakwater Resources with vast experience in mining, milling and plant
construction in Canada and Latin America.
Hubert Vallée, Construction Advisor
Hubert Vallée , P Eng., formerly with Consolidated Thomson Iron Mines Ltd, in charge of the construction of the 1100M$ Bloom Lake Iron mine and mill complex.
Jean-Guy Lambert, Financial Advisor
Jean-Guy Lambert has been President and CEO of a Publicly traded Merchant Bank. He was President and CEO of an oil and gas corporation and was financial
advisor to Hydro Quebec. He has been Director and Officer of many public corporations.
Ary Fernando Pernett Marquez, Colombia Technical Advisor
Ary Pernett, Ph.D. Geology, former professional for the Colombian Mine Department and for the University of Medellin. Ary is involved in all aspects of gold mining
from exploration to production and marketing in Colombia. He has a deep understanding of the mining sector in Bolivar South and he is highly appreciated by the
artisanal mining community.
Kevin Telmer, Artisanal Gold Mining Expert
Executive director of the Artisanal Gold Council (AGC), a non-profit organization dedicated to improve the environment, economics and health of the artisanal gold
mining sector. Ph.D. Geochemistry, with extensive experience in technical, policy and business capacities in the field with miners, governments, international
institutions and industry, Kevin is a world-renowned expert on mercury use in artisanal mining.
Origin GoldCorporation
BOLIVAR GOLD PROCESSING PLANT
TSXV: OIC 21
THANK YOU FOR YOUR ATTENTION