Fast Track to Production - Gold X Mining · 2021. 1. 25. · TSX-V: SSP | OTC: SSPXF CORPORATE...

TSX-V: SSP | OTC: SSPXF

Fast Track to Production

CORPORATE PRESENTATIONJanuary 25, 2021

TSX-V: GLDX OTCQX: GLDXF

With One of the Largest Undeveloped Gold

Deposits in the Americas

TSX-V: SSP | OTC: SSPXFTSX-V: GLDX | OTCQX: GLDXF

CAUTIONARY NOTESForward-looking Statements and Cautionary Notes

Forward-looking Statements

Cautionary Note Regarding Forward-Looking Information: Except for statements of historical fact relating to Gold X Mining Corp. (the “Company” or “Gold X”), certain information

contained in this 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 the potential 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; conclusions of economic evaluations; requirements for additional capital; and other statements relating to the financial and

business prospects of the Company. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans,” “expects,” or “does not

expect,” “is expected”, “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” or “does not 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 the Company 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 be relevant 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 factors that 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

to contain 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 budget for 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 current level 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 environmental liability, 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 the Company 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 materially different 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 such statements. Accordingly, readers should not place

undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purpose of assisting investors in 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 not

undertake to update any forward-looking information, except in accordance with applicable securities laws.

Preliminary Economic Assessment Report

The 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, Upper Puruni River Area, Guyana”. PEA economics were calculated using a base case of US$1,300/oz gold, US$16/oz silver and US$3.00/lb. copper. The PEA Study has

been filed on SEDAR at www.sedar.com. The scientific and technical data pertaining to disclosure of the mineral resource estimates or economic information contained in the PEA has

been reviewed and approved by Fernando Rodrigues, MMSAQ, a Qualified Persons under NI 43-101 who consents to the inclusion of his name in this presentation.

Resource Estimates

This document uses the terms “resources”, “measured resources”, “indicated resources” and “inferred resources”. United States investors are advised that, while measured resources,

indicated resources 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 United States 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 time the 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, inferred resources 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 will ever 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 or economically. 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 grade without reference to unit measures. Accordingly,

information concerning descriptions of mineralization and resources contained in this release may not be comparable to information made public by United 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 by the Canadian

Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. All resource

estimates contained in this circular have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System.

2


INVESTMENT HIGHLIGHTS5 Pillars in a Rising Gold Environment

“The [Reunion JV] agreement

expands Barrick’s exploration

footprint in the Guiana

Shield, a significantly

underexplored region and one

of the most prospective in the

world for large scale gold

discoveries”

Mark Bristow, CEO Barrick

Feb 4, 2019

TEAM

The Gold X team and strategic

shareholders have created billions of

dollars of shareholder value, responsible for

numerous successful sales

One of the largest gold deposits in the

Americas with 7.35 million ounces

Measured & Indicated

Advanced development stage project with

key permits in place trading at explorer

valuations of US$16 / M&I ounce

Toroparu is located in Guyana, poised to be

world’s fastest growing economy according

to the IMF

Significant potential to upgrade inferred

resources and classify additional resources

in proximal targets within 53,800-hectare

mineral concession

SIZE

LEVERAGE

LOCATION

UPSIDE

TSX-V: GLDX | OTCQX: GLDXF 3

https://www.ft.com/content/5b29c8a6-288a-11e9-a5ab-ff8ef2b976c7


UNPARALLELED TRANSACTION PEDIGREE

TSX-V: GLDX | OTCQX: GLDXF

C$3.14B of shareholder value created over the last 13 years

4

TSX-V: SSP | OTC: SSPXFTSX-V: SSP | OTC: SSPXF

CORPORATE SNAPSHOT

Share Structure

Common Shares 53.0M

Options 6.6M

$1.32 Warrants Expiring Jun 12, 2024

$2.80 Warrants Expiring Aug 27, 2024

$3.20 Warrants Expiring Jul 20, 2023

$3.36 Warrants Expiring May 6, 2021

$4.00 Warrants Expiring Oct 12, 2022

3.4M

4.4M

5.0M

2.4M

2.2M

Fully Diluted Shares 77.0M

Total Insider Holdings (I/O) 49.7%

Top Shareholders:

Gran Colombia Gold

Wheaton Precious Metals

Insiders/Associates/Families

20.2%

9.5%

20.0%

Cash on Hand

Potential Warrant Exercise

C$8.5M

C$49.8M

Trailing 3 Month Average Daily Volume 122,320 Shares

MANAGEMENT

Paul Matysek, CEO & DirectorDeveloped and sold 5 public companies creating over $2.8 billion in

shareholder value, most recently as Executive Chairman of Lithium X

Energy

Richard Munson, President+35 years experience; advancing Toroparu since 1999

Bassam Moubarak, CFO & DirectorSeasoned executive who, as CFO, was instrumental in the sale of Lithium

X Energy, Goldrock Mines and Petaquilla Copper

Greg Barnes, Executive Vice PresidentSpecialist in trading, production and commodity investment in

developing countries

INDEPENDENT DIRECTORS

Robert Friedland, Chairman of the BoardLed some of the world’s largest mineral discoveries including Oyu Tolgoi,

Voisey’s, Fort Knox and Kamoa-Kakula and was inducted into the

prestigious Canadian Mining Hall of Fame in 2016

Lombardo Paredes, Independent Director

CEO of Gran Colombia Gold

Suresh Beharry, Independent DirectorCo-Chairman, Beharry Group of Companies (one of the largest

conglomerates operating in Guyana)

Federico Restrepo-Solana, Independent DirectorPartner & Corporate Director of Quartz Capital Partners

Brian O’Neill, Independent DirectorVice President, Merchant Banking at SAF Group



SIZE MATTERSOne of the Largest Undeveloped Gold Deposits in the Americas (Open Pit & Underground)

Open Pit

Underground


M O

z M

&I

-

2

4

6

8

10

12

Acquired by Artemis Gold for ~US$36 / PnP Oz

Acquired by Zijin Mining for

~US$280 / PnP Oz

Acquired by Zijin Mining for ~US$107 / PnP Oz

6


SIZE MATTERSOpen Pit Comparables


M O

z M

&I

0.73 0.73 0.81 0.91

1.63

0.38

0.98 0.65

1.85

0.50 0.82

0.50 -

2

4

6

8

10

12

M&I (moz) M&I (g/t)

7

TSX-V: SSP | OTC: SSPXFTSX-V: SSP | OTC: SSPXF 8

PRODUCTION COMPARABLESOpen Pit CIL / CIP Operations


AISC $875** $706** $525** $780**** $689*** $923** $754**

*Gold X Mining based on “Potentially Mineable Resource” from its 2019 PEA

**LOM AISC calculated from latest technical report

***Merian 2019 AISC

****Gold X Mining based on “AISC” from its 2019 PEA

0.970.4

2.76

1.01 1.23 11.52

-

2

4

6

8

10

12

14

16

Detour Lake (KL) Paracatu (K) Pueblo Viejo(ABX)

Toroparu (GLDX) Merian (NEM) Rosebel (IMG) Aurizona (EQX)

M A

u O

zs

Prod. Estimate (Ozs) * Prod. Grade (g/t)

https://s24.q4cdn.com/382246808/files/doc_financials/annual/2019/370034(1)_23_Newmont_Web-Ready-Annual-Report-and-10-K.pdf


Mine Designs

Metallurgical Test Work

Waste Rock & Tailings Geochem &

Water Balance, Water Mgmt. Structures &

Geotechnical and Condemnation Drilling &

Construction Cost Estimate

Mine Geotechnical and Hydrology

23 Kt/d Process Plant Design

Site Water Balance, Water Mgmt. Structures

Tailings Management Facility Design

Site Infrastructure Designs

Project Cost Estimate Review

US$150M spent on project to date

ADVANCED STAGE PROJECTHistorical Engineering and Permitting Work

Feasibility Level Eng. Studies

2011 2013

2019

Mineral Development

Agreement (MDA)

executed 2011

Environmental

Authorization (EA)

approved

EA renewed

Large-Scale Mining License

Application (MLA) reactivated

2015

Economic Viability

acknowledged by GGMC

2012 2014

Discovery PFS FS* PEA

Resource

ExpansionTECHNICAL

PERMITTING

9TSX-V: GLDX | OTCQX: GLDXF


ECONOMIC HIGHLIGHTS2019 PEA (based on $1,500 Au w/ PMPA)


* Resource estimate based on 675 DDH – 202,250 meters

*

10

TSX-V: SSP | OTC: SSPXFTSX-V: SSP | OTC: SSPXFTSX-V: GLDX | OTCQX: GLDXF

Phased Development: PEA Production Schedule

LEVERAGE

Phase I – Y1-2411.5kt/d Gold Leach (CIL) Plant

Phase II - Year 11 -2411.5 kt/d Copper Concentrator Expansion23 kt/d total ore throughput

Production Metrics

($1,500/oz)

Head

Period Avg. Prod Grade Rec AISC

2y Pay 193k oz/y 1.63 g/t 93.6% $615/oz

1-7 163k oz/y 1.33 g/t 92.5% $769/oz

8-24 199k oz/y 0.93 g/t 87.4% $793/oz

LOM 188k oz/y 1.01 g/t 88.6% $798/oz

Financial Metrics

(US$ M)

Gold FCF NPV5%* IRR Payback

$1,250 $1,121 $428 18% 3.27

$1,300 $1,251 $495 20% 2.92

$1,500 $1,771 $760 28% 2.02

$1,750 $2,421 $1,087 36% 1.66

$1,900 $2,826 $1,291 40% 1.50

* After Tax

Phased Project Development

(w/ WPM PMPA)

Phase I Lower Project Finance $272m

- 161k ozs/y prod. (8-yr)

Phase II Internally Financed ($1,300/oz)

- 217k ozs/y Au prod.

- Copper & Silver by-prod.

- Reduced Cost (hydro)

LOM Production:

- 3.64 m-oz gold dore + 876 k-oz in

concentrate

- $342.5 million by-product Cu & Ag

- 5.95 m-oz AuEq. contained

- 1.18 g/t AuEq. mill head grade

413,000 ozs

775,000 ozs

1.234M ozs

1.722M ozs

2.859M ozs

3.702M ozs

4.454M ozs

5.095M ozs

Year 2

Year 4

Year 7

Year 11*

Year 15

Year 18

Year 21

Year 24

1.63 g/t

1.44 g/t

1.33 g/t

1.16 g/t

1.07 g/t

1.06 g/t

1.04 g/t

1.01 g/t

$615/oz

$697/oz

$769/oz

$1,022/oz*

$897/oz

$851/oz

$831/oz

$798/oz

Toroparu Open Pit Cumulative Gold Production Profile ($1,500/oz)

Mill Feed Gold Grade All-In Sustaining CostsContained oz

* Addition of 11,500 tpd flotation circuit

Cumulative

Through

11


WHEATON PRECIOUS METALS AGREEMENTSSignificantly De-Risks Project Finance Requirements

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$15.5M early deposit received

– US$138M project installments for royalty stream

– Total contribution toward PFS project capex: US$153.5M

– Estimated contribution toward PEA project capex:

US$106M

1 PMPA currently requires completion of a Feasibility Study by December 31, 2020. 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, Gold X can choose to return US$11.5 million to WPM and terminate the PMPA or can reduce the gold stream from 10% to 0.909% and the silver

stream from 50% to nil.


Wheaton Precious Metals early

deposit agreement originally

signed in 2013

Agreement expanded in 2015

after 2014 final feasibility work

Provided US$10M in 2019 for

convertible debenture financing

to exercise purchase option for

Toroparu

Converted debentures to equity at

$3.20/share twenty-eight months

before maturity

12


DEVELOPMENTAL DRILL PROGRAM Open Pit Resource Expansion

Toroparu NW

Infill and step-out drilling of NW Zone designed to:

• Infill 2.0 km mineralized NW Zone corridor

o Re-classify 290,000 ozs of shallow Inferred Gold Resources

o Infill areas of low drill density to expand shallow gold resources

• Step out minimum 600 m along strike to NW of historical drilling

• Significantly expand historical 39,600m drilling in NW zone (2011-2013)

Toroparu Main

Infill drilling within the Toroparu Main Zone designed to:

• Re-classify near surface Inferred Gold Resources within the 5-Moz Potentially Mineable Open Pit



DEVELOPMENTAL DRILL PROGRAM Historical High-Grade Assays

• 1,811 assays in the database exceed 3 g/t

• Majority of these lie within the identified high-grade structurally controlled veins

• Late cycle barren mafic dykes lie along same orientation as high-grade structurally controlled veins

Gold Grade (> 3 g/t) Frequency Distribution

Major Rock TypesVolcanicsIntrusiveSaprolite

Au g/t


27.9 Au ppm/6.0m


DEVELOPMENTAL DRILL PROGRAM Toroparu High-Grade Zones

Recent Geology Review by &

• Identified several discreet structurally controlled high grade veins within the Toroparu Gold Trend (above)

• Structures extend beyond the boundaries of the open pit grade shells both laterally and at depth

• Thin vein structures host the majority of gold assays > 3 g/t

• Phase 1 developmental drilling targeting continuity of grade around several high-grade structures in the Main and

Northwest Toroparu Deposit Areas



GUYANAThe World’s Fastest Growing Economy According to the IMF


English speaking democratic

republic

Member of Commonwealth of

Nations, World Trade

Organization, and CARICOM

headquarters located in

Georgetown

Courts governed by British

Common Law

Financing supported by

- International Finance

Corporation (IFC)

- Overseas Private

Investment Corp (OPIC)

- Export Development

Bank of Canada

- US Import-Export Bank

(EXIM)

RESOURCE ENDOWMENT

Oil – 8 bn barrel gross recoverable resource from ExxonMobil’s 16 discoveries in the Stabroek Block (25% explored).

3 Production Projects w/ 120 mbo/d production in 2020 growing to 560 mbo/d by 2023

Gold – Omai, Aurora, Karouni, Toroparu, Aremu, Peters Mine

Bauxite – Guyana’s 350 M-ton bauxite reserve is one of the world’s largest deposits with current projects belonging to First Bauxite (US), Rusal (RUS), Bosai (CHN)

Manganese – 30 M-ton reserve being developed by Bosai (CHN) with 600kt/y expected to begin in 2021

Hydro – GLDX MoU with Gov’t of Guyana for 80 MW RoR Hydro project 50 mi SW of Toroparu

“The IMF has

considered the change

in the price of oil due to

the price war between

Saudi Arabia and

Russia as well as

COVID-19’s effects on

the overall global

demand for oil and

revised Guyana’s

growth projection to

52.8 %.”

IMF World Economic

Outlook, April 2020

16


INFRASTRUCTURE

AURORA- BUCKHALL LANDING

BARAMA - BUCKHALL

LANDING


120-person camp & all-weather

airfield at Toroparu• Northern Access/ Haul Route Engineering complete in October 2020

• Next steps – secure port and construction cost bids


“The Guiana shield is 50 years behind

in everything related to geologic

knowledge. In 2018, 12% of the gold in

South America was produced out of

Guyana and Suriname, but only 9% of

the exploration budgets went to that

area”

- Marc Bardoux, Chief Geologist

Barrick, April 2020 Sandspring Resources Ltd.

REGIONAL GEOLOGY SKETCH

L.W.Claessens

AirborneMagnetics

High

Low

0 5 10 15km

680000

690000

700000

710000

720000

730000

740000

680000

690000

700000

710000

720000

730000

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

0,0

00

82

0,0

00 UTM PSAD Zone 20N

Toroparu Au-Cu-Ag Deposit

Upper PuruniConcession

Interpreted Restraining Bending Zone in Puruni Shear Corridor

WYNAMU

TIMMERMANS

AMEEBA

RED DRAGON

Otom

ung

Concession

SONA HILL

5 km

REPROCESSED AIRBORNE MAGNETIC DATA

Upper Puruni Concession

The Puruni Shear zone is a regional structure extending 100 km into Venezuela

Medium to large batholiths identified as low magnetic features align with the southern boundary of the shear

The Toroparu and Sona Hill deposits occur at the margin between the batholiths and surrounding meta-volcanic host rocks.

Several exploration targets within the 20km x 7km hydrothermal alteration halo surrounding Toroparu represent satellite deposit targets

RESOURCE POTENTIAL53,800 Hectares in Elephant Country

18


FLYING UNDER THE RADAR


Source: Comparable company data taken from BMO Capital Markets Precious Metals & Minerals Report (January 18, 2021)

Enterprise Value per Ounce of M&I Resource Price to NPV5% at $1,848 / Oz Au

19

AVERAGE = $147/Oz

$-

$100

$200

$300

$400

$500

$600

-

0.2

0.4

0.6

0.8

1.0

1.2

1.4

AVERAGE = 0.53X


FLYING UNDER THE RADAR


0

2

4

6

8

10

12

14

M&I Resource TR LOM Prod. Est. Mill Head grade(O/P Only)

Free Cash Flow(a/tax)

All In Cost (AIC) CAPEX % of NPV5%(a/tax @ $1500/oz)

Market Cap perM&I oz

Market Cap perNPV5% (a/tax@$1500/oz)

Project Metrics Valuation Metrics Toroparu (GLDX) Rank

Overvalu

ed ---------------------------

Un

dervalu

edW

ors

t --

----

----

----

----

----

----

----

----

----

----

----

-B

est

Source: Company filings and technical reports

Open Pit Project & Financial Comparables

20


RESOLVING THE TOP 10 VALUE MISCONCEPTIONS

Misconception


Significant Leverage and Robust Economics

Transformational Shift in Country

Ready Access to Infrastructure

Competitive Open-Pit Grade

US$150M Spent and Significant Work Completed

CAPEX Reduction Strategy in Place

OPEX In Line With Peers

Feasible and Optimizable Metallurgy

Significant Track-Record of Success

Reengineered Capital Market Approach

Gold Price Requirement

Country Risk

Project Remoteness

Low Grade

Early Development Stage

High CAPEX

High OPEX

Poor Metallurgical Recovery

Tired Management

Lacking Capital Market Strategy

Correction

21


Next Steps

PATH TO PRODUCTION

PROJECT OPTIONALITY

1. JUNIOR OPPORTUNITY

• 2-phased development plan (PEA)

• 11.5k t/d expanding to 23k t/d capacity

• 188k oz/y over 24-yr mine life

• $378 M pre-prod CAPEX (PEA est.)

• $272 M (non optimized) financing

estimate with WPM

2. MID-TIER OPPORTUNITY

• Feasibility level engineering

• 23k t/d capacity

• 232k oz/y over 17-yr mine life

22

Technical

Permitting

3Q 2020

Developmental / Infill Drill Program

4Q 2020 - 1Q 2021

Project Geology Review HPX /

Nordmin

2Q 2021

Capacity Optimization

Study (Internal)

Project Feasibility /

FEED Studies

3Q 2021 - 4Q 2021

Production Decision

1Q 2022

2Q 2020

Regulatory Review of ML

Application(subject to Covid-19)

3Q 2020 - 1Q 2021

Updated Mining

License (ML) Application

Filed

2Q 2021

Mining License

Issuance

ML Amendment

for Final Feasibility

3Q 2021 - 4Q 2021

Fully Permitted

for Construction

1Q 2022


THANK YOU

TSX-V: GLDX OTCQX: GLDXF

Gold X Mining Corp.

3123 – 595 Burrard Street

Vancouver, BC V7X 1J1

Canada

IR phone: +1 (604) 609-6132

[email protected]

www.goldxmining.com

mailto:[email protected]

http://goldxmining.com/

Fast Track to Production - Gold X Mining · 2021. 1. 25. · TSX-V: SSP | OTC: SSPXF CORPORATE...

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Transcript of Fast Track to Production - Gold X Mining · 2021. 1. 25. · TSX-V: SSP | OTC: SSPXF CORPORATE...