zurich gold show april 2015 - the denver gold group, inc. · 2015. 4. 12. · zurich gold show...

TSX: KDX OTCQX: KLNDF WWW.KLONDEXMINES.COM1

ZURICH GOLD SHOW

APRIL 2015


FORWARD-LOOKING INFORMATION

Qualified Person

Mark Odell, P.E., Principal Engineer, Practical Mining LLC, a "qualified person" as defined by National Instrument 43-101 – Standards of

Disclosure for Mineral Projects ("NI 43-101"), reviewed and is responsible for the technical information contained in this presentation.

Cautionary Note Regarding Technical Information and Forward-looking Information

A production decision at the Fire Creek Project has not been made by Klondex, as it is still in the bulk sampling phase. Although a production

decision at the Fire Creek Project has not been made, the mineralized material extracted from the Fire Creek Project under the bulk sample

permit is processed through the Midas mill.

A production decision at the Midas Mine was made by previous operators of the mine, prior to the completion of the acquisition of the Midas

mine by Klondex and Klondex made a decision to continue production subsequent to the acquisition. This decision by Klondex to continue

production and, to the knowledge of Klondex, the prior production decision were not based on a feasibility study of mineral reserves

demonstrating economic and technical viability prepared in accordance with NI 43-101. Readers are cautioned that there is increased uncertainty

and higher risk of economic and technical failure associated with such production decisions.

This presentation contains certain information that may constitute forward-looking information under applicable Canadian securities legislation,

including but not limited to information about current expectations on the timing, extent and success of exploration, development and

metallurgical sampling activities, the timing and success of mining operations, the timing and completion of updated mineral resource estimates

in respect of the Midas Project and Fire Creek Project, the timing and completion of an economic analysis in respect of the Fire Creek Project, the

Company's intention and ability to monetize mineralized material, the successful execution of the bulk sampling program at the Fire Creek

Project, project development and related permitting. This forward-looking information entails various risks and uncertainties that are based on

current expectations, and actual results may differ materially from those contained in such information. These uncertainties and risks include, but

are not limited to, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the degree to which mineral

resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially

viable are present; the risks and hazards associated with underground operations; and the ability of Klondex to fund its substantial capital

requirements and operations. Risks and uncertainties about the Company’s business are more fully discussed in the Company’s disclosure

materials filed with the securities regulatory authorities in Canada and available at www.sedar.com. Readers are urged to read these materials.

Klondex assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such

information unless required by law.


OUR FOCUS

PEOPLE – PROPERTIES – PROFITABILITY

People : Experienced, Efficient and Invested

Properties : Growing Production

• Fire Creek and Midas, Nevada

• Issued reserves early 2015

Properties : Investing in growth

• $33 M 2015 growth and sustaining capital

Profitability : 2014 Actual 108k GEO Recovered

• Production Costs $679 (US$585)/ GEO

• Net income of $18.3 million or $0.16 per share

• Working capital of $57 million

• Cash balance of $53 million

2015 Profitability Target : 120-125k GEO

• Production costs: $688-750 (US$550- $600) per GEO

• All-in sustaining costs: $1,000-1,063 (US$800 - $850) per GEO

Fire Creek operating under a bulk sample permit.

2014 GEO ratio 63.15:1; 2015 GEO ratio 66.67:1.

BEAT 2014 PRODUCTION GUIDANCE BY 25%

0

20

40

60

80

100

120

140

2014A 2015E

AuEq Ounces Recovered

Actual

Guidance

Range


PEOPLE – PROPERTIES – PROFITABILITY

OWNERSHIP

Sentry Investments 19.8

Sun Valley Gold 14.3

K2 Principal Fund 12.1

US Global Investors 11.8

Glenn Pountney 6.5

OFI Global Asset Mgmt 5.4

Van Eck 5.1

RBC Global Asset Mgt 1.8

Investors Group 1.5

BMO Asset Management 1.2

Dynamic Funds 1.0

Clarus Securities, Jamie Spratt

Dundee Capital, Josh Wolfson

GMP Securities, Oliver Turner

Haywood Securities, Tara Hassan

Mackie Research Capital, Barry Allan

MPartners, Derek Macpherson

PI Financial, Phil Ker

RBC Capital Markets, Sam Crittenden

Sell Side Research

KDX Ownership

Mgmt/Insiders

Institutional

Other

Major Holders (M’s of shares) Share Price (KDX:TSX; KLNDF:OTCQX) $2.74

52 Week High/Low C$2.80 - C$1.68

Average Daily Volume (3 mos) 384 k

Shares Outstanding 128 M

Fully Diluted Shares Outstanding 149 M

Market Capitalization C$351 M

Enterprise Value C$322 M

Cash (Dec 31, 2014) C$53 M

Inventories (Dec 31, 2014) C$25 M

Debt @ 11% C$25 M

FNV Gold Purchase Agmt (31,500 oz as at 12/31) 18% repaid

TSX: KDX OTCQX: KLNDF WWW.KLONDEXMINES.COM

THE UNDERGROUND GOLD COMPANY

PEOPLE

PROPERTIES

PROFITABILITY

EXPERIENCED

EFFICIENTINVESTED


A STRONG LEADERSHIP AND OPERATIONS TEAM

ACHIEVING RESULTS AND FOCUSED ON SAFETY

Paul Huet, A.Sc.T. – President, CEO and Director

• 27 yrs of mining experience within North America,

focused on underground narrow vein gold and silver

mining. Operated both the Midas and Hollister Mines

in the 2000’s.

Barry Dahl – Chief Financial Officer

• 26 yrs of accounting experience in mining,

construction and manufacturing. Previously CFO of

Argonaut Gold during its growth to a 100,000+ ounce/

yr producer.

Brent Kristof – Chief Operating Officer

• 33 yrs operations u/g and open pit experience with

major mining companies in North America, PNG and

Australia

Mike Doolin – VP Business Development

• 27 yrs with extensive experience in metallurgy, design

and permitting of narrow vein and open pit mining

projects

Brian Morris – VP Exploration

• 25 yrs experience providing exploration and geological

support to major producing assets in Nevada,

including Midas and Hollister.

Alison Dwoskin – Manager, Investor Relations

• 10 yrs experience designing and managing IR

programs for public mining companies

DI

RE

CT

OR

S

MA

NA

GE

ME

NT

6

Richard J. Hall, Chairman

• Seasoned mining executive, involved in building and acquiring precious

metals companies in the America’s and Australia; Served as CEO of

Northgate Minerals, Grayd Resource and Metallica Resources, as well as

Chairman of a number of other precious metals companies.

Blair Schultz, Executive Director

• Former Klondex Chairman (2012-2014). Over 13 yrs of experience

evaluating M&A transactions in the mining space; was most recently

Vice President and Head of Special Situation Analytics, Portfolio

Management & Trading at K2 & Associates Investment Management

Inc. in Toronto

Renaud Adams

• Currently, the President of Richmont Mines. Over 20 years of mining

experience, and most recently served as President and COO at Primero

Mining Corp. Prior to this, Mr. Adams served at IAMGOLD Corporation

and held various senior positions with Cambior Inc. and Breakwater

Resources Ltd.

Rodney Cooper

• Currently the President and Chief Operating Officer at Labrador Iron

Mines with 30 years in mining; broad experience in technical services,

operations, project management, investment evaluation and finance

Jamie Haggarty

• Financial and operational executive with over 20 years of experience

ranging from strategic planning to M&A transactions to managing

diverse businesses day-to-day

William Matlack

• Specializes in metals and mining investment banking with Scarsdale

Equities LLC; has 15 years prior experience in metals and mining equities


PEOPLE

IMPROVING OPERATIONAL EFFICIENCIES AT MIDAS

220

110

0

50

100

150

200

250

NEM KDX

Approximate Total

Headcount at Midas

25% Less Equipment Doubled Head Grade

EFFICIENTEXPERIENCED

340%

140%

0%

50%

100%

150%

200%

250%

300%

350%

400%

NEM KDX

Dilution at Midas

(0.15 opt AuEq vs. YTD ore grade

0.31 opt AuEq)

Shipped for use at Fire Creek

-20

0

20

40

60

80

100

Breakdown of Midas Acquisition

DELIVERING

Midas Acquisition Value



HIGH GRADE

POWERFUL UPSIDELOW RISK

PEOPLE

PROPERTIES

PROFITABILITYFIRE CREEK PROJECT

MIDAS MINE AND MILL


KLONDEX APPROACH AT MIDAS

DISCIPLINED MINING AND EXPANSION

• Operating since 1998 (2.2 M oz Au; 27 M oz Ag)

• High grade, ramp access, grid power

• Dedicated continued exploration on the district

• Advance, Develop, Discover

• Permitting tails facility for 5 yrs capacity

• Significant management experience operating

Midas

Reserve Cash Flow Sensitivity

$33.1 million @ $1000/oz Au; $15.83/oz Ag

$49.6 million @ $1200/oz Au; $19/oz Ag


Cash flow sensitivities use the same mine plan and only reflect a change in

metals sales.

Location

Mine Type

Ownership

Elko County, Nevada

Underground, gold and silver

100%

Proven and Probable Reserves

AuEq

132.6k oz

0.55 opt (18.8 g/T) - 242.1 k tons

M&I Mineral Resources

AuEq (inclusive of reserves)

526k oz

0.47 opt (16.2 g/T) - 1,117 k tons

Inferred Mineral Resources

AuEq

287k oz

0.33 opt (11.5 g/T) - 858 k tons

Mining Method Cut and Fill, Long Hole, Shrinkage

Mining rate 400-450 tpd

Processing Merrill Crowe (gravity and cyanide)

1200 tpd capacity

Recoveries 94% Au; 95% Ag (actuals)

Operating Cost $315/t

Total costs $932/oz AuEq

$485/oz net Ag by product

Reserve Life 2.8 yrs

Reserve Cash Flow

@$1000/oz Au

$33.1 Million

Royalty 2.5% (on the mine) to FNV starting

in 2019See last slide for footnotes.

Reserves use US$ cost assumptions

Plan view of all exploration

2-yr Mine Plan


PROPERTIES

POWERFUL UPSIDE – RECENT INTERCEPTS


PROPERTIES: LONG SECTIONS

NEW INTERCEPTS EXPANDING MINABLE MINERALIZATION

705 Vein

Looking West

505 Vein

905 Vein


MIDAS NEAR-TERM MINING UPSIDE NOT IN RESERVES

12

905 Vein – Spiral 9

• 1500 ft x 200 ft footprint – follows structural periodicity

• Numerous well supported >1opt intercepts

505 Vein (Discovery)

• High-grade ore shoot was missed and discovered 100 ft off main development while drilling 905 vein

south Vein contains VG and naumannite bands

• 200 ft x 500 ft ore shoot

705 Vein (Colorado Sur)

• Zone of >1.0 opt Au intercepts approximately 300 ft west of the 3-haulage

• Currently 300 ft x 400 ft footprint

105 Vein (Colorado Grande)

• Drilling 705 vein intercepted the 105 vein in an area to offer additional mining opportunity while

developing to the 705 vein 200 ft to the west

Midas Trend (201)

• 1000 ft x 500 ft with 2 >1opt intercepts adjacent to one another, numerous lower grades in old

drilling

• Some core photos recently found show almost 2 ft vein (0.73opt Au, 7.4opt Ag) near highest grade

intercepts of the ore shoot

• Grant Jackson and Rico veins on the way to Midas Trend

Queen Vein (1605)

• 750’ x 500’ footprint with numerous well supported >1opt intercepts

• Southern development will locate us 200 ft from the ore zone on this vein

• Opportunities for more ounces along strike to the south and at depth


PROPERTIES – POWERFUL UPSIDE

MIDAS

13

2015: EXCAVATE MINE WORKINGS TO DEVELOP HIGH PRIORITY RICO AND SOUTH ZONES


• Bulk sampling began in 2014

• High-grade 1.17 opt Au FY 2014 grade

• Ramp access, grid power

• Disciplined mining approach

• Begin testing long hole mining in 2015

• Aggressive exploration

• Five main veins open in all directions (along

strike, up/down dip)

• Several other high-priority targets

FIRE CREEK PROJECT

EA PERMITTING EXPECTED IN H2 2015

Isometric view : 2015

development and production

Location

Mine Type

Ownership

Lander County, Nevada

Underground, gold and silver

100%

Proven and Probable Reserves

AuEq

241.4k oz

1.3 opt (44.6 g/T) – 185.8 k tons

M&I Mineral Resources

AuEq (inclusive of reserves)

421k oz

1.1 opt (37.7 g/T) - 377 k tons

Inferred Mineral Resources

AuEq

363k oz

0.43 opt (14.7 g/T) – 840 k tons

Mining Method Cut and Fill, Long Hole, Shrinkage

Mining rate 125 - 200 tpd

Processing Midas Mill - $34/t shipping

Recoveries 94% Au; 95% Ag (actuals)

Operating Cost $460/t

Total costs $503/oz AuEq

$492/oz net Ag by product

Reserve Life 3.8 yrs

Reserve Cash Flow

@$1000/oz Au

$83.6 Million

Royalty 2.5% to FNV starting in 2019

See last slide for resource and reserve footnotes.Reserves use US$ cost assumptions

Reserve Cash Flow Sensitivity


$115.9 million @ $1200/oz Au; $19/oz Ag


Reserve cash flow sensitivities use the same mine plan and only reflect a change in metals sales.



FIRE CREEK

Minimal historic drilling gives strong upside for near term mining and resource

expansion

• Karen vein was not identified

from historic drilling. There is

opportunity to discover new

structures of similar nature

that are not evident in current

drilling

• Significant vein extension

along strike and up/down dip

Joyce

Vonnie

Karen

Honeyrunner

• Potential to add resources on

subsidiary veins and new vein

discoveries

2015 OBJECTIVE: EXCAVATE MINE WORKINGS TO DRILL

TEST VERTICAL EXTENTS AND VEIN EXTENTIONS



MILLING CAPACITY

Capacity: 1,200tpd, Recovery: 94% Au, 95% Ag

Operate Midas mill @ 600-650 tpd in 2015

Klondex Mill feed from:

Fire Creek and Midas

Toll milling Washington Mine (concentrates)

Toll milling Golden Wonder (monthly shipments)


PROPERTIES

LOW RISK

17

NEVADA

Mining-friendly jurisdiction

Low permitting risk

MIDAS

Fully-permitted

Tails expansion in progress (expected 3Q2015)

FIRE CREEK

~90% permitted

Water pollution control permit (submitted 1Q2015)

Environmental assessment (expected 2H2015)


PROPERTY – HIGH GRADE

INCREASING MINERAL RESOURCES; INCREASING M&I

428 363

287 420

FC 2014 FC 2015 ($1200/OZ A U)

Inf M&I

75

287

384

526

MID A S 2013 MID A S 2014 ($1200/OZ A U)

Inf M&I

FIR

E C

REEK

MID

AS 0.47 opt

AuEq

1.11 opt

AuEq

0.43 opt

AuEq

0.33 opt

AuEq

+46% M&IFIRE CREEK MINERAL RESOURCE

+37% M&IMIDAS MINERAL RESOURCE


PROPERTIES - HIGH GRADE

ONE OF THE HIGHEST GRADE GOLD OPERATORS IN THE WORLD

Source: M Partners and company reports on February 12, 2015, using resource grades.

PROJECT OPERATOR GRADE (g/T) COUNTRY

Fire Creek Project Klondex Mines 38.10 USA

Valley of the Kings* Pretium Resources 17.98 Canada

Midas Mine Klondex Mines 16.20 USA

TauTona AngloGold Ashanti 16.01 South Africa

Main Break + SMC Kirkland Lake Gold 15.74 Canada

Buriticá Project* Continental Gold 15.12 Colombia

Moab Khotsong

AngloGold Ashanti

Limited 14.05 South Africa

Gosowong Newcrest Mining 13.00 Indonesia

Red Lake Goldcorp 12.27 Canada

Curraghinalt Dalradian Resources 10.41 Ireland

Kupol Project Kinross Gold 8.89 Russia

Phoenix Gold Project Rubicon Minerals 8.1 Canada

Island Gold Mine Richmont Mines 6.36 Canada

Turquoise Ridge Barrick Gold 5.12 USA

Timmins West Mine Lake Shore Gold 5.09 Canada

Fire Creek

Project

Valley of the

KingsMidas Mine TauTona

Main Break

+ SMC

Buriticá

Project

Moab

KhotsongGosowong Red Lake Curraghinalt

Kupol

Project

Phoenix

Project

Island Gold

Mine

Turquoise

Ridge

Timmins

West Mine

Grade (g/T) 38.1 18.0 16.2 16.0 15.7 15.1 14.1 13.0 12.3 10.4 8.9 8.1 6.4 5.1 5.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Global M&I Gold Equivalent Grade (g/T)



PEOPLE

PROPERTIES

PROFITABILITY

POSITIVE CASH FLOW

LOW COST

SELF FUNDED


PROFITABILITY – POSITIVE CASH FLOW

15% PROFIT MARGIN IN FY 2014

FY 2014 financials will be released March 24, 2015

(1) Au Equivalent ounces used a 63.15:1 silver to gold ratio; 1 ounces per short ton equals 34.2857 grams per tonne

1Q 2Q 3Q 4QTotal 2014/

YTD

Gold Equiv Grade (opt) 0.66 0.50 0.79 0.65 0.64

Gold Equiv Grade (g/T) 22.7 17.1 27.2 22.1 22.0

Au Equivalent Ounces

Recovered(1) 16,052 22,239 39,109 30,460 107,860

Au Equivalent Ounces Sold(1) 4,288 25,725 28,162 32,617 90,791

Revenue (in C$) $2.6 M $36.4 M $38.0 M $44.6 M $121.7 M

Net Income (in C$) $(2.4) M $4.4 $7.2 M $9.0 M $18.3 M

Earnings Per Share $(0.02) $0.04 $0.06 $0.07 $0.18

Production Cost/GEO (C$) $906 $730 $613 $685 $679

Production Cost w/Ag by-

product (C$)n/a n/a $478 $553 $526

Capital Expenditures (C$) $4.3 M $7.1 M $7.8 M $10.5 M $30.8 M


FCF Yield '15E

KDX VALUATION

10.9% 10.5% 10.0%

5.9%

4.4% 4.2% 3.1%

(1.5%) (1.8%)

(3.5%)(4.2%)

(17.8%)

Peer

Average:

0.9%

2015E-’17E AVERAGE EBITDA MARGIN (%)

51.7%

43.2% 42.9% 42.0%

38.7%

34.6% 34.0% 32.8% 32.6%

30.1% 27.7% 27.6%

Peer

Average:

35.1%

Source: FactSet, Bloomberg. Prepared by GMP Capital, February 5, 2015.


PROFITABILITY AND PERFORMANCE

29%21%

-61%

-23%

-80%

-60%

-40%

-20%

0%

20%

40%

Perc

en

t A

nn

ual P

rice

Ch

an

ge

Year

KDX and GDXJ Annual Price

Change

KDX GDXJ

20142013

$155,976

$30,223

$0

$50,000

$100,000

$150,000

$200,000

KDX GDXJ

Invest

men

t W

ort

h in

$ U

SD

$100,000 in KDX vs. GDXJ

(End of Year - 2012 to EO

2014) $232,000

$(58,824) $(100,000)

$(50,000)

$-

$50,000

$100,000

$150,000

$200,000

$250,000

KDX GDXJ

Value of 2012's $100,000 YTD in 2015


PROFITABILITY - RAPIDLY REPAYING DEBT

ATTRACTIVE LIQUIDITY MEASURES

• Financings associated with Midas acquisition

• In 2019, a 2.5% royalty to Franco-Nevada will begin, paid on Fire Creek and Midas ore

2014 2015 2016 2017 2018

Paid 6750 7500 8000 8000 8000

Owing 31500 24000 16000 8000 0

05000

10000150002000025000300003500040000

Franco-Nevada Au oz Payments

2014 2015 2016 2017

Paid $- $4.0 $4.0 $17.0

Owing $25.0 $21.0 $17.0 $-

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$25M Senior Debt @ 11%

FY2014 CASH @ $53 MILLION; WORKING CAPITAL @ $56 MILLION

in Millions $


The Underground Gold Company

PEOPLE

PROPERTIES

PROFITABILITY

FREE CASH FLOW.

15% PROFIT MARGIN FY14.

LOW AISC.

120-125K OZ

PRODUCTION.

LOWERING PERMITTING

RISKS.

RESERVE STATEMENTS on

MIDAS AND FIRE CREEK.

DEDICATED TO

EXPLORATION AND

DEVELOPMENT.

ALIGNED WITH

SHAREHOLDERS.

LEVERAGING EXPERTISE.


FOR M ORE INFORM ATION

ALISON DWOSKIN

647-233-4348; 775 -299-1049

ADWOSKIN@KLONDEXM INES.COM


297

363

195

287

399 420 430

526

0

100

200

300

400

500

600

Fire Creek 2015 Fire Creek 2015 Midas 2014 Midas 2014

Inf

M&I

MINERAL RESOURCE ESTIMATE VARIATION TO THE GOLD PRICE

OU

NC

ES (

000’s

)

0.47 opt

AuEq

1.11 opt

AuEq

0.43 opt

AuEq

0.33 opt

AuEq

27

PROPERTIES – HIGH GRADE

LOW RISK TO GOLD PRICE DOWNSIDE

Global Mineral Resources

M&I: 946k oz AuEq

Inf: 650k oz AuEq

0.60 opt

AuEq

0.46 opt

AuEq

1 opt = 34.2857 g/T

1.34 opt

AuEq

0.54 opt

AuEq

$800/oz Au vs $1200/oz Au $800/oz Au vs $1200/oz Au


GLOBAL RESERVES AND RESOURCES

Mineral Resources

Category Au opt (g/t)Ag opt

(g/t)

AuEq opt

(g/t)

Au Ounces

(000’s)

Ag Ounces

(000’s)

AuEq Ounces

(000’s)

Tons

(000’s)

Fire CreekM&I Au 1.10 (37.7) 0.86 (29.5) 1.11 (38.1) 415.5 324.2 420.5 377.4

Inf. Au 0.43 (14.7) 0.38 (13.0) 0.43 (14.7) 358.3 320.8 363.3 840.0

MidasM&I Au 0.38 (12.9) 6.05 (207.7) 0.47 (16.2) 421 6,765 526 1,117

Inf. Au 0.28 (9.6) 3.48 (119.3) 0.33 (11.5) 241 2,988 287 858

TOTAL M&I : 946 k oz AuEq

TOTAL INF: 650 k oz AuEq

Mineral Reserves

Category Au opt Ag opt Au Eq optAu Ounces

(000's)

Ag Ounces

(000's)

AuEq Ounces

(000's)

Tons

(000's)

Fire Creek Proven Reserves 1.462 1.108 1.479 118.2 89.6 119.6 80.9

Probable Reserves 1.149 0.787 1.161 120.5 82.6 121.8 104.9

Proven + Probable 1.285 0.927 1.300 238.7 172.2 241.4 185.8

MidasProven Reserves 0.381 13.349 0.588 51.1 1,790.5 78.8 134.1

Probable Reserves 0.376 7.918 0.498 40.6 855.2 53.8 108.0

Proven + Probable 0.378 10.926 0.548 91.6 2,645.6 132.6 242.1


FOOTNOTES

Price assumptions in mineral reserves and resources use US dollars unless otherwise stated.

All Midas and Fire Creek mineral resources and reserves are prepared by Practical Mining LLC.

Mineral resources and mineral reserve estimates have been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s (CIM) “CIM Definition Standards – For

Mineral Resources and Mineral Reserves” adopted by the CIM Council on May 10, 2014. Proven and probable mineral reserves are the economically minable portions of the measured and

indicated Mineral Resources after the application of appropriate Modifying Factors.

Notes to the Mineral Resources

Fire Creek mineral resource update has an effective date of December 31, 2014 (press released January 30, 2015)

Midas mineral resource update has an effective date of June 30, 2014 (press released September 30, 2014)

1. Mineral resources have been estimated at a gold price of $1,200 per ounce and a silver price of $19.00 per ounce, and, $800 per ounce gold and $12.67 per ounce silver;

2. Gold and silver recoveries are 94% and 92%, respectively;

3. Mineral resources include dilution to achieve mining widths of four feet or the vein width plus two feet whichever is greater;

4. Mineral resources include allowances for 5% mining losses and an additional 10% unplanned dilution;

5. Cutoff grade thicknesses are calculated using mining, processing and administrative costs of $249 per ton of mineralization and a minimum mining width of four feet;

6. 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 socio-political, marketing or other relevant issues;

7. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred mineral

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.

Ore Reserves

1. Reserves have been estimated with a gold price of $1000/ounce and a silver price of $15.83/ounce

2. Metallurgical recoveries for gold and silver are 94% and 92% respectively;

3. Mining losses of 5% and unplanned mining dilution of 10% have been applied to the designed mine excavations.

4. Fire Creek Mineral reserve uses an effective date of December 31, 2014.

4. Mineral reserve uses an effective date of August 31, 2014.

zurich gold show april 2015 - the denver gold group, inc. · 2015. 4. 12. · zurich gold show...

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