For personal use only. Çöpler Gold Mine. Site Visit Presentation September Slide 1

Transcription

1 Site Visit Presentation September 2014 Slide 1

2 Cautionary Statements FORWARD LOOKING STATEMENTS Except for statements of historical fact relating to Alacer Gold Corp. ( Alacer ), certain statements contained in this presentation constitute forward looking information, future oriented financial information, or financial outlooks (collectively "forward looking information") within the meaning of Canadian securities laws. Forward looking information may be contained in this presentation and Alacer's public filings. Forward looking information often relates to Alacer's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", could, "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", projects, "predict", "potential", "targeted", "possible", "continue", "objective" or other similar expressions concerning matters that are not historical facts. Forwardlooking information contained in this presentation and other Alacer filings which may prove to be incorrect, include statements concerning, among other things, the generation of free cash flow and payment of dividends; matters relating to proposed exploration; production guidance and ability to target high grade ore bodies; the study, development and construction of proposed mines and process facilities; and the preparation and dissemination of technical studies. Such forward looking statements are based on a number of material factors and assumptions, which Alacer believes are reasonable, including, but not limited in any manner, to those to disclosed in any other of Alacer s public filings, and include the inherent speculative nature of exploration results; the ability to explore; governmental relations; commodity prices; the ultimate determination of and realization of mineral reserves; existence or realization of mineral resources; the development approach; availability and final receipt of required approvals, titles, licenses and permits; and supplies; foreign currency exchange rates; interest rates; access to capital markets and associated cost of funds; availability of a qualified work force; ability to negotiate, finalize and execute relevant agreements; lack of social opposition to the mines or facilities; lack of legal challenges with respect to the property of Alacer; the timing and amount of future production and ability to meet production targets; timing and ability to produce studies and analyses; capital and operating expenditures; availability of sufficient financing; the ultimate ability to mine, process and sell mineral products on economically favorable terms and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, regulatory and political factors that may influence future events or conditions. Actual results may vary from such forward looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Alacer filings at Forward looking statements are based upon management s beliefs, estimate and opinions on the date the statements are made and, other than as required by law, Alacer does not intend, and undertakes no obligation to update any forward looking information to reflect, among other things, new information or future events. The exploration results, Mineral Resources and Mineral Reserves disclosure in this presentation have been compiled and approved by Mr. James Francis, BSc (Hons) Geology and MSc Mining Geology, GM Technical of Alacer. Mr. Francis has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and a Qualified Person pursuant to NI He consents to the inclusion in this presentation of the matters based on this information in the form and context in which it appears. This presentation does not represent a solicitation or offer to sell securities. All dollars in this presentation are US$ s. Slide 2

3 Welcome Slide 3

4 Positioned to Capitalize on Excellent Organic Growth Potential Organic Growth Potential Positioned to Capitalize on Multi Mine Strategy Attractive Organic Growth Opportunities 1 Additional oxides Low capital cost High margin Significant cash flow Leverage existing infrastructure 2 Sulfide project Significant and scalable low cost, long term production 3 Standalone projects Become multi mine producer High quality targets identified Strong and growing cash position (~$300M) to pursue organic growth Slide 4

5 Life of Mine Production Profile For personal use only Çöpler Gold Production Gold Production ('000 oz) H Oxide Gold Produced Sulfide Gold Produced Slide 5

6 High Value, Near Term Oxide Opportunities Çöpler heap leach pad expansion Sulfide project DFS mine plan includes 4.2Mt at 1.2 gpt of heap leachable material currently classified as waste Study well progressed to expand existing heap leach pad capacity beyond current 50Mt Initial results indicate potential to add ~15 20Mt of additional capacity Further leachable ore opportunities Reviewing current operating parameters for leachable ore Exploration potential to discover satellite oxide deposit in Çöpler District Other heap leach pad locations identified Current 50Mt Heap Leach Facility Proposed expansion Slide 6

7 World Class Mine with Significant, Consistent Low Cost Production and Cash Flow World Class Mine with Significant, Low Cost Production and Cash Flow Significant Heap Leach Production (koz Au) (100%) First Quartile Total Cash Costs (C2$/oz) A 2012A 2013A 2014 Guidance 2013 Global Cash Cost Curve (US$/oz) $1,500 $750 $0 ($750) ($1,500) Average Cash Costs: $721/oz $429/oz Quartile 1 st 2 nd 3 rd 4 th Annual Production Cumulative Production Consistently Delivering Substantial Cash Flow ($M s) (100%) $60 $47 $45 $43 $28 $27 $26 $11 $55 $36 $41 $11 $50 $29 $38 $31 $30 $25 $12 $7 3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Operating Cash Flow Free Cash Flow 2 1 Source: SNL Financial. 2 Free Cash Flow is defined as Operating Cash Flow less capital expenditures (including capitalized exploration) 3 Q2 '14 Free Cash Flow affected by several annual cash outflows occurring in Q2 and will not reoccur again this year Slide 7

8 Life of Mine Production Profile July 2014 to Dec 2017 Heap Leach Only 2018 to 2022 First 5 years of POX 2023 to 2034 Remainder of LOM Total (100%) Mining Oxide Ore to Heap Leach Pad Mt Sulfide Ore Mt Waste Mt Total Tonnes Mined Mt Strip Ratio Processing Oxide Ore Mt Oxide Head Grade g/t gold Oxide Gold Produced 000 oz Sulfide Ore Mt Sulfide Head Grade g/t gold Sulfide Gold Produced 000 oz 6 1,071 1,478 2,555 Total Gold Production 000 oz 616 1,144 1,478 3,239 Rounding differences will occur 1 Sulfide tonnes mined are planned to be stockpiled prior to commissioning of the sulfide processing plant Slide 8

9 Overview Slide 9

10 Outline of Presentation & Mine Tours Location & Ownership People & Administration Health, Safety & Environment Community Relations Pits & Infrastructure Geology Resources and Reserves Mining & Processing Projects Costs & Outlook Sulfide Project Welcome to Çöpler Gold Mine! Slide 10

11 Company Snapshot Corporate Overview Corporate / Asset Location Corporate Head Office Denver, Colorado Turkey 80% 50% 20% 1 50% Anagold JV Kartaltepe JV Polimetal JV Tunçpınar JV (Lidya Mining) (Lidya Mining) (Lidya Mining) (Lidya Mining) Istanbul Turkey Office Ankara Kabadüz Fol-ken Kurttepe Yelekkaya Ïvrindi Sariçayiryayla Dursunbey (50%) Akoluk Kazikbeli Çöpler District Guvemlï Erzincan Malmis Sin Cevïzlïdere (50%) Certain Çöpler District Licenses Turkey Regional Exploration Turkey Regional Exploration Yahyali Certain Çöpler District Licenses 5 Projects 11 Projects 3 Projects 4 Projects Tunçpınar JV Polimetal JV World-class gold mine, several attractive projects and extensive land package in Turkey 1 Alacer has the right to claw back up to a 50% interest in individual projects within the Polimetal JV. Slide 11

12 Çöpler Licenses Held in Two Joint Ventures Slide 12

13 People Turkish Business Unit Organizational Structure Slide 13

14 Human Resources - Employees Skill Levels of Employees in Çöpler Project as per Recruitment Places as of 31.Aug.2014 Unskilled Semi skilled Skilled Total Recruitment Place # % # % # % # % Çöpler 10 9% 27 6% 18 6% 55 6% Sabırlı 11 10% 31 7% 5 2% 47 6% Bağıştaş Dostal Bahçe 4 1% 2 1% 6 1% İliç Centre 74 68% % 88 27% % Other Villages of İliç 4 3% 9 2% 4 1% 16 2% Erzincan 7 6% 2 0% 21 7% 29 3% Other Cities 4 4% 6 1% % % Other Countries 9 3% 9 1% Grand Total Note: This table includes both ANAGOLD's and Contractors' employees who work for Copler Project. Numbers are full month equivalents. Slide 14

15 Health & Safety Performance Health & Safety Strategy 1. Meeting or exceeding legal requirements and international standards 2. Creating and maintaining a safe, healthy and positive working environment LTIs LTIs Over 550 Days without LTI & 4.05 million hours since last LTI (end of August) 3. Educating and training employees and contractors in HSE best practice and procedures in the spirit of Safe Production CY7 CY8 CY9 CY10 CY11 CY 2012 CY 2013 Q Q Çöpler LTI Slide 15

16 Environmental Performance For personal use only Environmental Strategy 1. Meeting or exceeding legal requirements and international environmental standards 2. Maintaining and improving the environmental management system to align with the requirements of ISO Educating and training employees in environmental practices and procedures to develop an environmental sensitive culture Incidents & Government Reportable Incident s Reportable Environmental Incidents Spills contained and remediated CY7 CY8 CY9 CY10 CY11 CY 2012 CY2013 Q Q Copler RI's Slide 16

17 Community Relations Social policies, procedures and plans implemented in accordance with IFC Guidelines, Company Social Impact Assessment and Relocation Action Plan. Communication with the local community and the Governmental officials by holding regular visits. Community Development Programs by working with Agricultural Departments, Governorship, Universities, Development Agencies, and other related parties. Community Relations, Cultural Sensitivity and Awareness Training for all company and contractor employees. Scholarship programs for high school and university students from İliç and all students of Mine Technology department of İliç Vocational High School. Communication with local media agencies. Alacer Gold has agreed to donate US$2.8M for the construction of a Primary School in İliç. Slide 17

18 Community Relations Mine site tours for locals, officials, students, etc. Capacity building & social programs for women New Primary School Community awareness programs like cyanide brochures Some CR activity statistics to date: 1,444 consultation meetings held 224 grievances conveyed by the community have been resolved 498 community projects (excluding the school) were funded for US$1.6M Slide 18

19 Community Relations Expansion Project announcements were made to the Governor, Sub-governor, Mayor, village mukhtars, contractors, & employees. Public Hearing, an important part of the EIA process, has been successfully completed. Slide 19

20 Çöpler Oxide Pits & Infrastructure 2014 Slide 20

21 Overview of Çöpler Mine SE Waste Dump Manganese Pit Marble Pit Main Pit Crusher & Clay Handling SART ADR Leach Pad Agglomeration & Conveying Ponds Slide 21

22 Geology Slide 22

23 Exceptional Exploration Potential 18 years in Turkey gives Alacer early mover advantage Tethyan Belt is historically under explored and has excellent mineral potential Slide 23

24 For personal use only Çöpler Geology Regional Setting Çöpler Located in Tethyan Metallogenic Belt Slide 24

25 Çöpler District Geology & Licenses For personal use only 15 km Mining License (942 hectares) is surrounded by Exploration Licenses 25 km Slide 25

26 Çöpler Geology Key Rock Types Limestone Marble Old workings on contacts Metasediments Intrusive Looking west across Çöpler deposit Slide 26

27 Çöpler Geology Plan of Deposit 3 km long ore zone Slide 27

28 Çöpler Geology Mineralization Styles Çöpler is an intermediate sulfidation epithermal deposit Sulfide mineralization exhibits three principal styles: Disseminated sulfides in stock work quartz veined metasediments and diorite (Main Zone, Marble Zone) Disseminated sulfides in clay altered, brecciated and carbonitized diorite (Manganese Zone) Massive sulfide replacement bodies along the marble contacts (Main Zone contacts, Marble Zone, Manganese Zone) Slide 28

29 Çöpler District Priorities for 2014 Identify supplementary oxide ore within trucking distance of Çöpler infrastructure Discover standalone projects in the extensive mineralized system Continue target generation and prioritization $11.1M 2014 Budget (100%) Slide 29

30 Çöpler District 2013 Target Generation Slide 30

31 Strong Targets Identified in Highly Prospective Çöpler District Anagold Yakuplu (80%) 17m at 1.7g/t Au from 55m 6m at 4.7g/t Au from 55m 14m at 1.6g/t Au from 1m 17m at 2.7g/t Au from 73m Dursunbey Yakuplu (50%) 7m at 4.6g/t Au from surface 10m at 1.0g/t Au from 6m 14m at 1.1g/t Au from 42m 12m at 1.2g/t Au from 48m Bayramdere (50%) 21m at 1.5g/t Au from 27m 5m at 1.7g/t Au from 37m 5m at 1.7g/t Au from 28m Slide 31

32 Mineral Resources and Reserves Slide 32

33 Çöpler Resource Continues to Grow Million ounces of gold Feb 10 Dec 11 June 12 June 13 Dec 13 For personal use only Çöpler Resource + Mined Ounces (100%) Inferred Measured + Indicated Contained Ounces Mined Slide 33

34 Ongoing Resource Reconciliation Study Resource reconciliation work has significantly upgraded the quality of the reserve Changed modelling method from Ordinary Kriging to Probability Assigned Constrained Kriging (PACK), utilized because it allows better calibration of the resource model to historical mining results Completed exploration database audit: Ensured integrity of data, confirmed error rate of <1% on assay results Completed discreet 1,000m twin hole drilling program using triple wall PQ core tubing: Original drilling had some poor core recovery in some high grade zones New triple wall PQ drilling provided consistent high core recoveries Completed blast hole data audit and confirmed historical data is accurate Resource reconciliation study ongoing Slide 34

35 Block Model Comparison Manganese Pit Section 4,364,360N 2013 Pit Resource Model Ordinary Kriging & no historical comparisons 2013 Pit Resource Model Previous modelling by geology restricted ore definitions Block Color Legend 2013 Pit Resource Model Probability Assisted Constrained Kriging (PACK) calibrated to historical mining results provides better definition of mineralization Slide 35

36 Manganese Pit Geology Manganese Pit Ring of Fire Diorite intrusion contact zone (white ring around intrusion) Poor drilling recoveries along contact High-grade ore mined along contact Slide 36

37 Resource Domains Source: Figure 14-3 of Çöpler NI Technical Report dated July 29, Slide 37

38 Summary of the Two Pass PACK Method Source: Figure of Çöpler NI Technical Report dated July 29, Slide 38

39 For personal use only Resource Classification Plan of Resource Classification Showing Indicated (Green) with Inferred (Blue) Material Forming a Ring around the Indicated Material Source: Figure of Çöpler NI Technical Report dated July 29, Slide 39

40 Whittle Pit Optimizations Source: Figure 16-2 of Çöpler NI Technical Report dated July 29, Slide 40

41 Çöpler Mineral Resource Updated Mineral Resources for the Ҫӧpler Deposit (As of December 31, 2013) Gold Cut off Grade (g/t) Material Resource Category Tonnes Contained Au Au (g/t) Ag (g/t) Cu (%) Type Material (x1000) (oz x 1000) Measured Indicated 69, ,421 Variable Oxide Stockpile Indicated Measured + Indicated 69, ,422 Inferred 28, Measured Indicated 81, , Sulfide Stockpile Indicated 1, Measured + Indicated 83, ,374 Inferred 22, ,411 Variable Stockpiles Indicated 1, Measured Variable Total Indicated 152, ,796 Measured + Indicated 152, ,796 Inferred 51, ,315 M+I Resources total 7.8M contained ounces of gold Note: Resources are quoted after mining depletion and are inclusive of reserves. Resources are shown on a 100% basis, of which Alacer Gold owns 80%. Rounding errors will occur. Further information on this resource estimate is in the NI Technical Report dated July 29, Slide 41

42 Çöpler Mineral Reserve Updated Mineral Reserves for the Ҫӧpler Deposit (As of December 31, 2013) Reserve Category Material Tonnes (x1000) Au (g/t) Ag (g/t) Cu (%) Contained Au Ounces Recoverable Au Ounces Proven Oxide In Situ Probable Oxide In Situ 26, ,114, ,900 Probable Oxide Stockpile ,800 1,200 Total Oxide 26, ,116, ,100 Proven Sulfide In Situ Probable Sulfide In Situ 30, ,482,500 2,330,200 Probable Sulfide Stockpile 1, , ,100 Total Sulfide 31, ,721,500 2,555,300 Proven Oxide + Sulfide + Stockpile Probable Oxide + Sulfide 57, ,838,000 3,327,400 Total Oxide + Sulfide 57, ,838,000 3,327,400 Mineral Reserves total 3.8M contained ounces of gold Note: Reserves are shown on a 100% basis, of which Alacer Gold owns 80%. Rounding differences will occur. Further information on this resource estimate is in the NI Technical Report dated July 29, Slide 42

43 Reserve Comparison Ҫӧpler Mineral Reserve Comparison (100% Basis) Previous Reserve (as at December 31, 2013) New (updated) Reserve (as at December 31, 2013) Change Reserve Category Material Tonnes (x1000) Au (g/t) Contained Au Ounces Tonnes (x1000) Au (g/t) Contained Au Ounces Tonnes (%) Au (%) Contained Au Ounces (%) Proven Oxide In Situ 28, , % 100% 100% Probable Oxide In Situ 9, ,600 26, ,114, % 29% 252% Probable Oxide Stockpile , ,800 0% 0% 0% Total Oxide 37, ,194,800 26, ,116,500 31% 34% 7% Proven Sulfide In Situ 22, ,570, % 100% 100% Probable Sulfide In Situ 8, ,900 30, ,482, % 7% 298% Probable Sulfide Stockpile 1, ,000 1, ,000 0% 0% 0% Total Sulfide 32, ,433,700 31, ,721,500 2% 14% 12% Proven Oxide + Sulfide + Stockpile 52, ,688, % 100% 100% Probable Oxide + Sulfide 17, ,500 57, ,838, % 25% 308% Total Oxide + Sulfide 70, ,628,500 57, ,838,000 17% 28% 6% M+I Resources have increased by 0.62Moz (+9%) to 7.80Moz of contained gold Mineral Reserves increased by 0.21Moz (+6%) to 3.84Moz of contained gold Oxide grade has increased by 34% to 1.32g/t gold Sulfide grade has increased by 14% to 2.67g/t gold Slide 43

44 Mining Slide 44

45 Mining Overview Mine plans and designs are prepared by Anagold Engineering. Staged open pit development 4oxide pits within large sulfide pit Drilling & blasting and loading & hauling is by a contractor. Bench height = 5m Blast hole pattern = 3.50m x 3.50m Blast hole diameter = 102mm Explosives factor = 0.16 kg/t Explosives ANFO Samples are taken from each hole to be assayed for Au. Ore tonnage and grade is determined from computer analysis. Boundaries are provided to surveyors. Assays from the blast holes are reconciled against the geological block model. Mining activities are directed by Anagold Mine shift engineers to ensure compliance with all company policies and government regulations. Slide 45

46 Mining Contractor Mining Fleet Mining Contractor Çiftay İnşaat Taahhüt Tic AŞ 72 Mercedes Haul Trucks (38 tonne capacity) 2Volvo Articulated Haul Truck (35 tonne capacity) 11 CAT Excavators (5m³) 1CAT Excavator (3.5m³) 1CAT Excavator (2.5m³) 2CAT Excavators (2.25m³) (Rock Breakers) 7Atlas Copco Drills 6Cat Wheel Loaders 3CAT Graders 7CAT Bulldozers 2CAT Compactors 5Mercedes Water Trucks 2 Motorin Delivery Trucks 2 Maintenance Trucks Slide 46

47 Mining Pit Design Parameters Source: Table of Çöpler NI Technical Report dated July 29, Slide 47

48 Mining Production to Q Mined Material Units Q Q2 TOTAL Oxide Ore Tonnes t 7,482,545 7,077,728 6,673,520 1,418,391 1,558,392 24,210,575 Gold Grade g/t Sulfide Ore Total Ore Waste Cont.Ozs. oz 371, , ,361 68,336 71,656 1,293,512 Tonnes t - 148,517 1,345, , ,187 2,331,717 Gold Grade g/t Cont.Ozs. oz - 13, ,591 81,368 37, ,309 Tonnes t 7,482,545 7,226,245 8,019,402 1,926,521 1,887,579 26,542,292 Gold Grade g/t Cont.Ozs. oz 371, , , , ,346 1,639,821 Tonnes t 11,371,208 18,071,313 20,683,285 5,471,484 6,365,596 61,962,886 Slide 48

49 Processing Slide 49

50 Processing Overview Nominal plant throughput = 6.2Mtpa or 17,000tpd: Primary gyratory & secondary/tertiary cone crushing circuit for rock ore supply. Sizer circuit for clay ore supply. Approximately equal split of clay to rock ore supply (nominal crush size to minus 12mm/25mm). Cement added for alkalinity & agglomeration. Conveyed to heap leach pads via grasshopper stackers. Nominal 8m lifts on heap leach pads. Dilute sodium cyanide solution distributed via drip system. Adsorption, Desorption & Refinery ( ADR ) Plant: Pregnant solution flows to two trains of 6 carbon in column ( CIC ) tanks. Loaded carbon then stripped & regenerated. Electro winning circuit removes gold from solution onto steel cathodes. Induction furnace produces gold dore (average 60 65% Au, 15 20% Ag). Slide 50

51 Processing Flow Sheet Slide 51

52 Processing Production Performance Q (average) Q (average) Q (average) Q1 Q2 Stacked Ore ton 471,527 1,074,257 1,447,149 1,384,123 1,524,013 Grade g/t ROM ton 1,350, , ,052 Grade g/t Total Ore to HL ton 1,822,046 1,768,946 1,674,120 1,384,123 1,524,013 Grade g/t Gold Poured oz 46,398 47,189 68,338 52,919 49,795 Slide 52

53 Processing Initiatives and Projects Recently completed: Clay Handling Circuit commissioned and operating Q New agglomerator commissioned Q Grasshopper conveyor upgrade phase 1 HLP barren solution flow rate increased up to 1,200m 3 /hr Current improvement projects: CIC tanks second train of 6 new tanks commissioned Q SART plant full chemical commissioning completed Q Grasshopper conveyor upgrade phase 2 Carbon filter project New assay laboratory Further improvement projects: HLP Phase 4 scheduled to start Q with design in progress Counter current leaching (2015) and differential cyanide dosing (2014) Fire and water reticulation upgrade Slide 53

54 Projects Slide 54

55 Substantial Capital Invested to Optimize Operations Over Past Three Years Over $60 million invested in optimization and process improvement projects Clay Handling Circuit $13M spent Designed to improve processing of ore with high clay content Work completed in October 2013 and commissioned for immediate operation in November 2013 HL Pad Phase 3 Expansion $7M spent Increased total leach pad capacity to 42 Mt of ore Overliner completed in 2013 and stacking commenced in Q Phase 4 Expansion to commence in 2014 and finish in 2015 Agglomerator Upgrade $6M spent Increases capacity of circuit to handle ore with high clay content Construction and commissioning completed during Q Transferred to operations end Q Explosives Magazine $3M spent State of the art underground explosives storage magazine with a designed life of 50 years 75 tonne explosive storage capacity Transferred to operations in Q SART Plant $31M spent Produces a saleable copper product and cyanide is recycled to gold recovery process Completed dry commissioning during Q with wet commissioning and operation planned in Q when copper threshold is met New Storm Pond $4M spent Provides ability to contain potential high rain or snow fall events, due to larger heap leach pads Construction completed in July 2014 and transferred to operations Slide 55

56 SART Plant Design Throughput SART Plant Process Design Criteria Plant Availability 92% Feed Solution Copper Copper Recovery Discharge Solution Copper Copper Production Precipitate Production Gypsum Production 380 m 3 /hour (PLS or BLS) 383 mg/l (average) 93.7% (average) 24 mg/l (average) 3.3 tpd Cu (average) 4.8 tpd dry (average) 22.4 tpd dry (average) Full Chemical commissioning of SART Plant completed in August 2014 as copper in solution levels increased towards 250 ppm Cu threshold Slide 56

57 New CIC Circuit Overview and Design Criteria Designed Capacity Maximum Capacity New CIC Circuit Design Criteria 582m³/hour 600m³/hour Capacity Increase with Introduction of New CIC Circuit Total CIC Capacity After Upgrade 400m³/hour 1000 m³/hour Slide 57

58 Costs and Outlook Slide 58

59 Summary Operating Costs Q Q Operating Statistics 100%: Waste tonnes mined 11,371,206 18,071,316 20,683,286 5,471,484 6,365,596 Oxide ore mined tonnes 7,443,854 7,036,221 6,673,520 1,418,391 1,558,392 Oxide ore mined grade (g/t) Oxide ore mined ounces 368, , ,390 68,336 71,656 Sulfide ore mined tonnes 190,024 1,345, , ,187 Sulfide ore mined grade (g/t) Sulfide ore stockpiled ounces 25, ,592 81,368 37,689 Oxide ore treated tonnes 7,568,380 7,077,727 6,697,209 1,384,124 1,524,013 Oxide ore treated head grade (g/t) Ratio between gold produced and contained gold in ore stacked 49% 50% 66% 80% 70% Gold ounces produced 185, , ,063 52,919 49,795 Gold ounces sold 166, , ,352 55,128 49,455 Attributable Production: (2011 5% ownership, all other periods 80% ) Gold ounces produced 176, , ,850 42,335 39,836 Gold ounces sold 158, , ,682 44,102 39,564 Cash Operating Costs/ounce sold $ 322 $ 335 $ 414 $ 515 $ 552 Total Cash Costs/ounce sold $ 369 $ 375 $ 429 $ 541 $ 568 All in Sustaining Costs/ounce sold, N/A N/A $ 820 $ 680 $ 714 All in Costs/ounce sold, N/A N/A $ 864 $ 739 $ 806 Average realized gold price $ 1,644 $ 1,664 $ 1,379 $ 1,302 $ 1,288 Slide 59

60 2014 Guidance Çöpler Mine 2014 Guidance Waste tonnes mined (100%) (millions) 25 Oxide ore tonnes treated (millions) 6.2 Oxide ore grade (g/t gold) 1.6 Heap-leach gold ounces produced (100%) ( 000 s) 200,000 to 225,000 Heap-leach gold ounces produced (attributable 1 ) ( 000 s) 160,000 to 180,000 Capital expenditure (attributable 1 ) (millions) 17 General and Administrative (millions) 15 All-in Costs 2 ($/oz) 730 to 780 Costs will remain near the lowest in the industry Capex includes $9M of non-recurring sustaining Capex 1 Attributable gold ounces and attributable capital expenditures are reduced by the 20% non-controlling interest at Çöpler. 2 All-in Costs are non-ifrs financial performance measures with no standardized definition under IFRS and does not include post sulfide growth capital. For further information, see the Non-IFRS Measures section of the MD&A for the three month period ended June 30, Slide 60

61 Sulfide Project Slide 61

62 Sulfide Project Demonstrates Robust Economics LOM Key Assumptions 1 (100%) Free Cash Flow 1 (millions) (100%) Oxide HL Sulfide POX LOM Operating Parameters Total Ore Mined Kt 23,249 28,868 Au Grade g/t Au Recovery % 69.2% 93.9% Modelled Mine Life years 6 18 Total Au Production koz 684 2,555 $197 $227 $227 $447 $550 LOM $1.6B Free Cash Flow Annual Avg. Au Production koz Operating Costs $/t $35.46 $21 $57 $283 $163 $104 $77 Total Cash Costs 2 (net of by prod) $/oz $540 $21 AiSC 2 (net of by prod) $/oz $597 ($206) ($170) By products Annual Avg. Ag Production koz 40 Annual Avg. Cu Production klbs 3,700 ($367) ($162) Capex NPV Development Capex $ mm $633 LOM Sustaining Capex 3 $ mm $182 NPV 0% $ mm $1,600 NPV 5% $ mm $921 ($227) 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 3 LOM Average Free Cash Flow Cumulative Free Cash Flow From Does not include current cash position of ~$300 million or free cash flow for the remainder of H Total Cash Costs and AiSC costs are non-ifrs financial performance measures with no standardized definitions under IFRS. For further information and detailed reconciliations, see the Non-IFRS Measures section of the MD&A for the three months ended June 30, The above AiSC does not include non-çöpler costs (eg, G&A and JV exploration) or accounting entries related to the balance sheet (eg changes in inventory) 3 Excludes reclamation costs of $56 million. Slide 62

63 Sulfide Project Development Timeline Sulfide Project Development Timeline Çöpler Sulfides Project Schedule Build Project Team: July 2014 to March 2015 Project Director position filled Recruit Owner s Construction Team Project Operations Manager position filled Continue to build Operations Team through life of project Build Project Team Permitting Board Construction Decision Engineering Supplemental Environmental Impact Assessment: application submitted April 2014; approval expected in late 2014 Builds on current Çöpler approved EIA minimal need for additional baseline studies Socio Economic Impact Assessment: expected to be finalized in December 2014 Land Permit Approvals: expected Q Procurement Construction Basic & Detailed Engineering: Q to Q Key items include the tailings storage facility and POX plant Commissioning Commercial Production Procurement Equipment: Q to Q Procurement Bulk Materials: Q to Q Slide 63

64 Overview of Sulfide Processing Facility Proven technology Proven technology used for 38% of global gold production Autoclave circuit comprised of seven individual pressure vessels Temperature of 220 o C (430 o F), Pressure of 2,900 kpag (420 psi) Sulfur grade averages 4.2%, providing the heat required to maintain the chemical reaction Achieves near complete oxidation of fine grained, gold bearing sulfides Overall gold recoveries of 94% from sulfide ore confirmed by pilot plant testing Slide 64

65 Çöpler Sulfide Process Schematic For personal use only Source: Figure17-11 of Çöpler NI Technical Report dated July 29, 2014 Slide 65

66 Sulfide Project Site Layout Designed with room for a staged approach EXISTING AGGLOMERATOR EXISTING CRUSHING Slide 66

67 Sulfide Project Capital Cost & Risk Management Capital Cost Summary 1 (millions) Crushing and Grinding Equipment $70 Autoclaves and Ancillary Equipment $170 Metal Recovery (incl. ADR) $74 Tailings Storage Facility $102 Reagent Handling $21 Facilities and Infrastructure $108 Owner s Costs & Other $25 Contingency $63 Total Pre-Production Capital $633 LOM Sustaining Capital Costs (oxide + sulfide) $182 Project Management Recruitment of the owner s team Leverage local knowledge and experience Set clear and achievable milestones Disciplined Cost and Capital Management Pursue EPC strategy Explore cost price protection Funding flexibility Continue to de risk the project Initial Capital Costs Funded by Existing Cash and Future Cash Flow Generation from Çöpler Çöpler Sulfide Project + Heap Leach. Slide 67

68 Sulfide Project Capital Schedules Pre Production Capital Expenditure $ Millions Total Plant Tailing Facility Social and Permitting Total Pre Production Capital Sustaining Capital Expenditure $ Millions Total '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 TSF Phased Construction Plant Related Total Sustaining Rounding differences will occur. Slide 68

69 Sulfide Project to Deliver Significant Growth Average annual gold production of >150 koz at Total Cash Costs 1 of $540/oz Tonnes Processed and Grade (100%) Production and Total Cash Costs 1 (C2) (100%) H H $ E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E LOM Average Oxide Throughput Oxide Grade E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E LOM Average Sulfide Throughput Sulfide Grade 2014E 2015E 2016E 2017E 2018E 2019E $ 2020E 2021E 2022E LOM Average Production (koz) C2 Cash Costs (US$/oz) 1 Total Cash Costs is a non-ifrs financial performance measures with no standardized definition under IFRS. For further information and detailed reconciliation, see the Non-IFRS Measures section of the MD&A for the three months ended June 30, Slide 69

70 Sulfide Ore Mined by Year Sulfide Ore Total Low Grade ( g/t) Mined (Mt) * Low Grade Gold Grade (g/t) Low Grade Sulfur Grade (%) Mid Grade ( g/t) Mined (Mt) * Mid Grade Gold Grade (g/t) Mid Grade Sulfur Grade (%) High Grade (>3.1 g/t) Mined (Mt) * High Grade Gold Grade (g/t) High Grade Sulfur Grade (%) Total Sulfide Ore Mined (Mt) * Average Gold Grade (All) (g/t) Average Sulfur Grade (%) *in 2026 low-grade ore mined will be 37,600 tonnes; mid-grade ore mined will be 12,800 tonnes and high-grade ore mined will be 1,700 tonnes. This table does not include sulfide ore stockpiled prior to As of December 31, 2013, 1,536,000 tonnes at 4.84 gpt gold grade had been mined to stockpile. Rounding differences will occur; 1 Sulfide tonnes mined are planned to be stockpiled prior to commissioning of the sulfide processing plant in Slide 70

71 Sulfide Ore Processed by Year *38,000 tonnes processed in 2017 during commissioning. Rounding differences will occur Total Sulfide Ore Processed (Mt) * Sulfide Au Grade Processed (g/t) Sulfide Ag Grade Processed (g/t) Sulfide Cu Grade Processed (%) Slide 71

72 Sulfide Project Operating Costs LOM Cash Operating Costs 1 Summary Unit Cost Mining Per tonne mined $1.85 Rehandle Per tonne rehandled $1.16 Heap Leach Processing Per tonne heap leach $9.79 processed POX Processing Per tonne POX processed $34.55 Site Support and Offsite Per tonne processed $3.54 Cash Operating Costs 1 Per ounce $601 By product Credits Per ounce ($85) Cash Operating Costs 1 net of By products Per ounce $516 Royalties Per ounce $23 Total Cash Costs 1 Per ounce $540 Sustaining Capex Per ounce $58 All in Sustaining Costs 1 Per ounce $597 Sulfide Project Pre Production Capital Per ounce $195 Reclamation Costs Per ounce $17 All in Costs 1 Per ounce $810 Rounding differences will occur LOM Cash Costs Remain In Line With Low Historical Cash Costs Achieved Source: Table 21-5 of Çöpler NI Technical Report dated July 29, Cash Operating Costs, Total Cash Costs, All-in Sustaining Costs and All-in Costs are non-ifrs financial performance measures with no standardized definitions under IFRS. For further information and detailed reconciliation, see the Non-IFRS Measures section of the MD&A for the three months ended June 30, The above AiSC does not include non-çöpler costs (eg, G&A and JV exploration) or accounting entries related to the balance sheet (eg changes in inventory) Slide 72

73 Sulfide Project Operating Costs LOM ($/t ore processed) ($/oz) Mining Contract / Support $7.18 $ Rehandle Heap Leach $0.06 $0.96 Sulfide Ore $0.61 $10.39 Processing LOM Cash Costs Summary Heap Leach $4.14 $70.24 POX $19.93 $ Site Support $2.67 $45.34 Offsite $0.86 $14.67 Total $35.46 $ By-Product Credit ($85.11) Total Net of By-Products $ G&A Supplies $14/oz 3% POX Processing Costs by Component Electric Power $109/oz 26% Repair Supplies $18/oz 4% Reagents $178/oz 42% Total CN Detox, Neutralization & Tailings $34/oz 8% POX Processing Costs by Area Total Utilities $44/oz 10% Fuel Oil $15/oz 3% Mobile Equipment Fuel $7/oz 2% Labour $53/oz 12% Wear Materials $20/oz 5% Grinding Media $15/oz 3% Total Crushing & Milling $65/oz 15% Forecast reagent usage: Average hydrated lime consumption = 25.4 kg/tonne of ore Average limestone consumption = 5.9 kg/tonne of ore Average cyanide consumption = 1.25 kg /tonne of ore Assumed cyanide cost = $2.73/kg Total CCD/Leach/CIP/ Cu Precip/ADR $115/oz 27% Total Pressure Oxidation $170/oz 40% Source: Section 21.8 of Çöpler NI Technical Report dated July 29, Tables 21-4, 21-6 and Slide 73

74 Base Case Financial Metrics An Incremental Analysis Financial Metrics (as of July 1, 2014) Base Case (Oxide Only) A DFS Case (Heap Leach + POX) B Incremental B A LOM cash flow (millions) $323 $1,600 $1,250 NPV at 5% (millions) $299 $921 $622 IRR % N/A N/A 20.5 Payback from start of sulfide gold production Years N/A 1.7 Gold price of $1,300 per ounce based on bank and industry consensus Copper price of $3.29 per pound Silver price of $22 per ounce US$/Turkish Lira exchange rate: 2.2 Electricity ($/kwh): 0.09 Diesel cost: $2.12/litre Slide 74

75 Reduced Execution Risk Brownfield project with well understood orebody: Mined Çöpler orebody for over 3 years Stockpiled >2.3 Mt of sulfide ore at 4.62g/t Existing infrastructure Exhaustive studies and reviews completed: Extensive metallurgical peer reviews 4 pilot plant tests confirming 94% recovery Strong local base and relationships: 18 years in Turkey successfully exploring, permitting, constructing and operating Long-standing local JV partner Permitting process already underway Supplemental EIA submission process commenced in April 2014 Slide 75

76 September 2014 Thank you for your interest Slide 76