Washoe County, Nevada - Bravada Gold Corp · 2014-12-08 · BVA:TSX.V | BRT: FSE Wind Mountain –...

J.A. Kizis, Jr. & J.W. Cox December 12, 2013

BVA:TSX.V | BRT: FSE

The Wind Mountain Low-sulfidation Gold/Silver Project Washoe County, Nevada

M.E.G. Short Course

Some of the statements contained in this presentation may be deemed “forward-looking statements.” These include estimates and statements that describe the Company’s future plans, objectives or goals, and expectations of a stated condition or occurrence. Forward-looking statements may be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, reclamation, capital costs, and the company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as but not limited to; changes in general economic conditions and conditions in the financial markets; changes in demand and prices for the minerals the Company expects to produce; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the Company’s activities; and changing foreign exchange rates and other matters discussed in this presentation. Persons should not place undue reliance on the Company’s forward-looking statements. Further information regarding these and other factors, which may cause results to differ materially from those projected in forward-looking statements, are included in the filings by the Company with securities regulatory authorities. The Company does not assume any obligation to update or revise any forward looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws, whether as a result of new information, future events or otherwise. The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this presentation, that has been prepared by management.

Forward-looking Statement


Wind Mountain - Historic Production by Amax Gold

299,259oz Au recovered from 434,089oz Au mined, with 1,769,426oz Ag recovered (closure since 1997)


Wind Mountain Open Pit

Breeze Open Pit

5

Bravada has 14 exploration & development properties in Nevada ~10,000 hectares

N

Wind Mountain – Post-mineral fault blocks


Wind

deposit

Breeze

deposit

5

Post-mineral faults, down to north and west

N DeepMin

deposit

Water Well

Au

intercept

South End

deposit

Hilltop

deposit

Wind Mtn Geologic Setting

Travertine

Hydrothermal

Breccia

Fossil reeds

Sinter ‘debris’

with fossil reeds


Flow/drip

textures

Banded silica

replacement



sinter

cobbles

siltstone

cobble, now

highly altered



Pencil points to euhedral sanidine

phenocryst (reflecting light), note pink K-

spar alteration in angular fragments to

lower left of phenocryst, also note angular

clasts of black Triassic metasediments

from basement


Rhyolitic intrusive

breccia at North Hill

deposit


Unconsolidated Lake Sediments

(Quaternary)

Unconsolidated clays, silt and sand; variable

thickness.

-Unconformity-

Truckee Fm (U. Miocene-Pliocene)

Mostly tuffaceous sediment, sinter, sinter

rubble, rare felsic ash-flow tuff (4.8 Ma by G.

Rhodes, 2011) & high-level intrusions;

~300m thick.

-Unconformity-

Pyramid Fm (Miocene)

Intermediate to mafic volcanics with interbedded

sediments (24.1-15.1 Ma by G. Rhodes, 2011);

~350m thick.

-Unconformity-

Nightingale Sequence

(Triassic-Jurassic)

Highly folded argillite, phyllite, schist, slate, and

quartzite, intruded by Mesozoic granitic rocks in

places.


Simplified Stratigraphy

100% Bravada owned, Au/Ag open pit/heap leach

2006 – Earn-in option from Agnico Eagle

2007 – Initial NI 43-101 resource estimate

2008 – Discovered “DeepMin” deposit, completed 100% earn in (Agnico Eagle retains 1-2%NSR)

2010 – Positive PEA @ $850/oz Au, IRR = 15%

• oxide, low strip ratio, good metallurgy, great infrastructure, expansion possibilities

2011 – 50-hole program to expand shallow oxide resource

• Metallurgy, Biology, & Cultural studies completed; No significant issues identified

2012 – Improved PEA @ $1,300/oz Au & $24.42/oz Ag, IRR = 29%, Pre-tax NPV@5% = $42.9MM,

increased NI 43-101 Resource (oxide at 0.005 oz Au/ton cut off) • Indicated = 570,500oz Au with 14,736,000 oz Ag

• Inferred = 354,300oz Au with 10,115,000 oz Ag

2012/13 – 19-hole program to test exploration targets

• Expanded Au/Ag mineralization between the Breeze and DeepMin deposits

• Negatively tested three areas, including a close-in heap site that can now be used to reduce operating costs

• Currently evaluating a possible Phase I open-pit/crush/heap-leach operation w/ low capital requirements

Wind Mountain Milestones

BVA:TSX.V | BRT: FSE 6


Wind Mountain 2012 NI 43-101 Resource Update

7

Mine Development Associates (MDA)

A Technical Report for an independent Preliminary Economic Assessment (PEA) and resource estimate was conducted by Mine Development Associates (MDA) of Reno and has been posted on SEDAR, as reported in NR-07-12 dated May 1, 2012


Wind Mountain – MDA’s 2012 PEA BASE CASE - Open-pit contract mining w/ trucks, shovels,

ROM leaching, US$1,300/oz Au & $24.42/oz Ag

Resource inside the pits = 42.1 million short tons of Indicated Resource @ 0.011 oz Au/t & 0.26 oz Ag/t, and 2.2 million short tons of Inferred Resource @ 0.008 oz Au/t & 0.18 oz Ag/t, both utilizing a 0.006 oz Au/t cutoff

Gold & Silver Ounces mined = 465,000 oz Au & 11,198,000 oz Ag (516,000 oz Au-eq(2))

Gold & Silver Ounces produced = 288,000 oz Au & 1,680,000 oz Ag (320,000 oz Au-eq(2)), using 62% Au & 15% Ag recoveries

W:O Strip ratio = 0.71:1

Capital = Initial capital of $45.4 million, $18.4 million sustaining capital

Mine Life = approximately 7 years of mining, 2 additional years of residual leaching & rinsing

Payback Period = 2.2 years

Life-of-mine cash cost(3) = $859 per ounce Au

Total Pre-Tax cost(3) = $1,080 per ounce Au

IRR = 29%

Pre-tax NVP@5% = $42.9 million

(1) Canadian NI 43-101 guidelines define a PEA as follows: “A preliminary economic assessment is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied that would enable them to be classified as mineral reserves, and there is no certainty that the preliminary assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.” (2)Expected recoveries were incorporated to convert silver to gold equivalent (Au-eq) at 220Ag:1Au ($1,300 x 62% divided by $24.42 x 15%) (3)Costs include estimated Nevada Net Proceeds taxes, property taxes, but not corporate income tax, and treats silver as a by-product credit.

100.2926

100.2926

100.2926

100.2926

100.2926

Hwy 447 approx 10 miles

pro

pe

rty b

ou

nd

ary

ADR Plant

pro

pe

rty b

ou

nd

ary

4000 el

4020 el

4060 el

4180 el

4380 el

4420 el

4560 el

4580 el

4725 el

4700 el

4675 el

4650 el

4040 el

4220 el

4220 el

4300 el

4320 el

4460 el

4560 el

4600 el

4160 el

Heap Leach Pad

Guard Station

fence

fen

ce

fen

ce

fence

fence

fence

2065500 N

2066000 N

2066500 N

2067000 N

2067500 N

2068000 N

2068500 N

2069000 N

2069500 N

2070000 N

2070500 N

2071000 N

2071500 N

2072000 N

273500 E 274000 E 274500 E 275000 E 275500 E

273500 E 274000 E 274500 E 275000 E 275500 E

2065500 N

2066000 N

2066500 N

2067000 N

2067500 N

2068000 N

2068500 N

2069000 N

2069500 N

2070000 N

2070500 N

2071000 N

2071500 N

2072000 N

20-Apr-2012 Scale:Site Map

Wind Mountain Project

Bravada Gold Corportaion

1" = 1000'

MINE DEVELOPMENT ASSOCIATES

8


Wind Mountain – MDA’s 2012 PEA BASE CASE - Open-pit contract mining w/ trucks, shovels,

ROM leaching, US$1,300/oz Au & $24.42/oz Ag

Resource inside the pits = 42.1 million short tons of Indicated Resource @ 0.011 oz Au/t & 0.26 oz Ag/t, and 2.2 million short tons of Inferred Resource @ 0.008 oz Au/t & 0.18 oz Ag/t, both utilizing a 0.006 oz Au/t cutoff

Gold & Silver Ounces mined = 465,000 oz Au & 11,198,000 oz Ag (516,000 oz Au-eq(2))

Gold & Silver Ounces produced = 288,000 oz Au & 1,680,000 oz Ag (320,000 oz Au-eq(2)), using 62% Au & 15% Ag recoveries

W:O Strip ratio = 0.71:1

Capital = Initial capital of $45.4 million, $18.4 million sustaining capital

Mine Life = approximately 7 years of mining, 2 additional years of residual leaching & rinsing

Payback Period = 2.2 years

Life-of-mine cash cost(3) = $859 per ounce Au

Total Pre-Tax cost(3) = $1,080 per ounce Au

IRR = 29%

Pre-tax NVP@5% = $42.9 million

(1) Canadian NI 43-101 guidelines define a PEA as follows: “A preliminary economic assessment is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied that would enable them to be classified as mineral reserves, and there is no certainty that the preliminary assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.” (2)Expected recoveries were incorporated to convert silver to gold equivalent (Au-eq) at 220Ag:1Au ($1,300 x 62% divided by $24.42 x 15%) (3)Costs include estimated Nevada Net Proceeds taxes, property taxes, but not corporate income tax, and treats silver as a by-product credit.

100.2926

100.2926

100.2926

100.2926

100.2926

Hwy 447 approx 10 miles

pro

pe

rty b

ou

nd

ary

ADR Plant

pro

pe

rty b

ou

nd

ary

4000 el

4020 el

4060 el

4180 el

4380 el

4420 el

4560 el

4580 el

4725 el

4700 el

4675 el

4650 el

4040 el

4220 el

4220 el

4300 el

4320 el

4460 el

4560 el

4600 el

4160 el

Heap Leach Pad

Guard Station

fence

fen

ce

fen

ce

fence

fence

fence

2065500 N

2066000 N

2066500 N

2067000 N

2067500 N

2068000 N

2068500 N

2069000 N

2069500 N

2070000 N

2070500 N

2071000 N

2071500 N

2072000 N

273500 E 274000 E 274500 E 275000 E 275500 E

273500 E 274000 E 274500 E 275000 E 275500 E

2065500 N

2066000 N

2066500 N

2067000 N

2067500 N

2068000 N

2068500 N

2069000 N

2069500 N

2070000 N

2070500 N

2071000 N

2071500 N

2072000 N

20-Apr-2012 Scale:Site Map

Wind Mountain Project

Bravada Gold Corportaion

1" = 1000'

MINE DEVELOPMENT ASSOCIATES

8


Wind Mountain – Potential Increases

MDA’s

$2,000 Au

Pit Outline

Gray – air photo

Black – drill holes

Red – Indicated Au Resource

Yellow – Inferred Au Resource

Purple – PEA $2,000 Au Pit*

*MDA estimates ~12% increase in

oz Au-eq w/in $2,000 pit

compared to $1,300 pit

10


Wind Mountain – Section A

NOTE: Au as oz/ton, blocks are 20’ x 25’

Breeze Open Pit

50’ (15m) of 0.037 opt Au

(1.3g/t)

50’ (15m) of 0.020 opt Au

(0.68g/t), many lost samples

85’ (26m) of 0.040 opt Au

(1.4g/t)

50’ (15m) of 0.029 opt Au

(1.0g/t)

NOTE: 0.03 oz/ton = ~1 g/t Au

NOTE: Areas of probable under-estimated Au grade

11


NOTE: blocks are 20’ (6.1m) x 25’ (7.6m)

Wind Mountain – Section B

Breeze Deposit

Hill Top Deposit

Under Estimated

Grade Potential

Under Estimated

Grade Potential

Untested Potential

12

Large-size samples collected from spent heaps, waste dumps, & open pits

Moderately hard to crush, abrasive • Abrasion indices average ~0.53 • Crusher work index average ~14 kW-hr/st • Ball mill grindability tests average ~24 kW-hr/s

Scoping-level bottle roll tests encouraging • Spent heaps – higher Ag recovery w/ higher NaCN, no change in Au • ‘Waste’ piles – no increase in Au or Ag w/ higher NaCN • Higher Au & Ag at 10 mesh vs ½ inch

Head Screen for column-leach tests encouraging • Very low % fines in all samples • Spent heaps – Au & Ag higher in +1/4” fraction due to incomplete leaching • Screen tests of pit and ‘waste’ samples show even distribution of Au & Ag in size fractions w/

moderate increase in grades +1/4”

Wind Mtn Metallurgy Results


West

Dump

Wind Mtn ‘Waste’ Pile Resource?

Wind Mountain Economic Summary


• BVA’s internal “what if” scenarios suggest a Phase I pit of ~300K oz could: • exploit a smaller, close-in heap site, significantly reducing operating & capital costs compared to the 2012 PEA; • while taking the highest gold/silver grades within the global resource; and • simplifying permitting by remaining within the footprint of previous disturbance.

• Leaching “waste” dumps that must be moved instead of moving to another waste pile should further enhance economics.

• Crushing the higher grade Phase I mineralization could significantly increase NPV & IRR, although more test work on crushing is needed.

• Reprocessing the heaps might be economically possible, particularly for their Ag content.

• Additional phases of mining the remaining resource would be dependent upon further discoveries and future economics.

Wind Mountain Economic Summary


• BVA’s internal “what if” scenarios suggest a Phase I pit of ~300K oz could: • exploit a smaller, close-in heap site, significantly reducing operating & capital costs compared to the 2012 PEA; • while taking the highest gold/silver grades within the global resource; and • simplifying permitting by remaining within the footprint of previous disturbance.

• Leaching “waste” dumps that must be moved instead of moving to another waste pile should further enhance economics.

• Crushing the higher grade Phase I mineralization could significantly increase NPV & IRR, although more test work on crushing is needed.

• Reprocessing the heaps might be economically possible, particularly for their Ag content.

• Additional phases of mining the remaining resource would be dependent upon further discoveries and future economics.

So what have we learned &

is there additional upside?

Wind Mtn Schematic Geology Looking East


North Hill

deposit

Breeze

deposit

South End

deposit

X

X

X

X X

X X

X X

X X

X

~3

00

me

ters

NOTE: several small

post-mineral faults

not shown for

simplicity

~300 meters

Wind & DeepMin

deposits

Wind Mtn “Hishikari – style” Exploration Potential ?


North Hill

deposit

Breeze

deposit

Wind & DeepMin

deposits

South End

deposit

X

X

X

X X

X X

X X

X X

X

Preserved Gold

mineralization

~3

00

me

ters

~300 meters

NOTE: Hishikari mine (Japan) ~6.9MM oz Au production, ~6.1MM oz “reserves”, grade 45-50g/t Au, ~1Ma age

(sources - Sumitomo Metal Mining Co., Ltd. press release 11/11/12 & website)

Wind Mountain Summary


• Favorable metallurgy, strip ratio, and logistics make the Wind Mountain property an attractive mining investment.

• The Wind Mountain deposits are the partially eroded remnants of a very large epithermal gold deposit, similar in age, and probably original size, to the Hycroft deposit.

• At least one major funnel-like feeder zone has been identified.

• An attractive high-grade “Hirshikari” -type deposit could occur where the feeder cuts the unconformity between Tertiary volcanic rocks and Mesozoic metasediments and intrusions… younger block faulting may have resulted in reasonable mining depths to this target.

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Washoe County, Nevada - Bravada Gold Corp · 2014-12-08 · BVA:TSX.V | BRT: FSE Wind Mountain –...

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