Sanatana Resources Corporate Presentation
Transcript of Sanatana Resources Corporate Presentation
Forward Looking Statements
2
This presentation is for information purposes only and does not constitute an offer to sell or a solicitation
to buy the securities referred to herein.
This document includes forward looking statements. Forward looking statements inherently involve
subjective judgement and analysis and are subject to significant uncertainties, risks and contingencies,
many of which are outside of the control of, and may be unknown to, the company. Actual results and
developments may vary materially from those expressed in these materials. The types of uncertainties
which are relevant to the company may include, but are not limited to, commodity prices, political
uncertainty, changes to the regulatory framework which applies to the business of the company and
general economic conditions. Given these uncertainties, readers are cautioned not to place undue
reliance on such forward looking statements. Forward looking statements in these materials speak only at
the date of issue. Subject to any continuing obligations under applicable law or any relevant stock
exchange listing rules, the company does not in providing this information undertake any obligation to
publicly update or revise any of the forward looking statements or any change in events, conditions or
circumstances on which any such statement is based.
Troy Gill, a Qualified Person, as such term is defined in National Instrument 43-101 - Standards of
Disclosure for Mineral Projects (“NI 43-101”), and the Exploration Manager of Sanatana Resources Inc.,
has reviewed and approved the scientific and technical disclosure contained herein.
Share Structure
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Shares Outstanding 114,848,573
Warrants 13,374,250 Exercisable between $0.12 and $0.40 until August
2015
Stock Options 8,050,000 Exercisable between $0.30 and $0.75 per share
Fully Diluted 136,272,823
Share Price $0.10 as at March 17, 2014
Market Cap $12.1 million
Peter Miles President & CEO, Director
Former Vice President at Midland Doherty Inc, Dean Witter Reynolds, CIBC World Markets. Former advisor to a number of public and private companies,
primarily within the natural resources industry, including Roughrider Uranium Inc. Currently a Director at Gamehost Inc., Western Potash Corp.
Barry Fraser Chairman of the Board, Director
Mr. Fraser is a senior litigation lawyer with over 35 years of experience in business and corporate governance and other related matters. Mr. Fraser has
distinguished himself as one of Vancouver’s leading litigators specializing in commercial and IP disputes. Mr. Fraser is also Chairman of the Board of a TSX and
NYSE Listed gold producer, and serves on that company's audit, compensation and corporate governance committees.
Buddy Doyle Vice President Exploration, Director
More than twenty-five years experience in gold and mineral exploration, including work as Senior Project Geologist at the 30+ million ounce Lihir gold mine in
Papua New Guinea. Currently oversees a gold junior in Brazil that features global resources of 1.6 million ounces and a project in the pre-feasibility stage. Former
Vice President Exploration for North American Diamonds at Rio Tinto. Credited as co-discoverer of the Diavik Diamond Mine.
Dr. Nicholas Archibald Non-Executive Director
More than thirty five years experience in the minerals industry. Founded and served as CEO at Fractal Graphics, which won the Goldcorp Challenge in 2001.
Fellow of the Australian Institute of Mining and Metallurgy, the Society of Economic Geologists, the Australian Institute of Geoscientists, and the Australian
Academy of Technological Sciences and Engineering.
Simon Anderson Chief Financial Officer
Chartered Accountant with a broad range of public and private experience in both the US and Canada. Formerly Partner at an international accounting and
consulting firm.
Troy Gill Exploration Manager
Fifteen years of exploration experience with Rio Tinto. Member of the Australian Institute of Geoscientists.
Veteran Leadership
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Sanatana Value Proposition
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1. Sanatana’s 50% joint venture partner acquired for $65 million
in November 2011 by Trelawney Mining and Exploration Inc.
(Trelawney subsequently acquired by IAMGOLD in June
2012 for a transaction value of $608 million)
2. IAMGOLD will likely need to acquire Sanatana land that
surrounds the Côté Gold Project in order to proceed with an
optimized mine plan. IAMGOLD has applied for easements
over Sanatana claims, which Sanatana is defending
vigorously. Significant case precedent established in 2013
(see Cliffs Denied Easement over Canada Chrome Mining
Claims)
3. Sanatana has intercepted mineralization on claims adjacent
to IAMGold proposed pit suggesting Côté Gold Deposit
trending onto its property.
The Watershed Project
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The Watershed property is located between Sudbury and Timmins, Ontario. The property
covers 7,904 hectares, and consists of 46 mining claims, a 20% interest in the three Crown
Gold mining claims, as well as a right of first refusal over a further nine claims.
*The Watershed Property is an Option and JV Agreement between Sanatana Resources Inc. and Trelawney Augen Acquisition Corp., a wholly owned subsidiary of IAMGOLD.
Watershed Property Claims
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Sanatana Resources Inc. (TSX.V:STA) holds an option and joint venture
agreement (the “Agreement”) with Trelawney Augen Acquisition Corp.
(“TAAC”) governing control of the Watershed Property (the “Property”).
The Property surrounds the Côté Gold Project, which is held by a
subsidiary of IAMGOLD Corporation (“IAMGOLD”) (TSX:IMG,
NYSE:IAG). IAMGOLD is also the sole indirect shareholder of TAAC.
As a result of the Agreement, Sanatana owns a 50% undivided interest
in 46 mining claims and a further 20% carried interest in three mining
claims covering an area of 7,904 Ha in northern Ontario, as well as a
right of first refusal on a further nine claims. The Company may earn an
additional 1% interest by completing a prefeasibility study at the
Property. The Property is protected by an area of interest (the “AOI”)
extending at least one kilometre from any portion of the Property.
In April of 2013, a subsidiary of IAMGOLD filed an application with the
Ontario Mining and Lands Commissioner with respect to proposed
easement rights on the Property. Sanatana objects to the proposed
easements on both substantive and procedural grounds.
Watershed/Côté Gold Timeline
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*Complete details of the option and joint venture agreement are available in Sanatana’s press release dated February 16, 2011.
February
2011
Sanatana and Augen Gold Corp. (“Augen”) enter into an option and joint venture agreement for the Watershed
Property*
March 2011 Trelawney Mining and Exploration Inc. (“Trelawney”) releases the maiden Resource Estimate for the “Côté Lake
Deposit”
November
2011
Augen is acquired by Trelawney for approximately $65 million and subsequently renamed Trelawney Augen Acquisition
Corp (“TAAC”)
June 2012 IAMGOLD Corp. (“IAMGOLD”) completes its acquisition of Trelawney for approximately $608 million, becoming the
sole indirect shareholder of TAAC
October
2012
IAMGOLD publishes an updated resource estimate for Côté Lake, increasing Indicated Resources by 274%, and
commences work on a Prefeasibility Study for the project
November
2012
Santana completes all exploration expenditures and share issuance conditions necessary to fulfill its option and joint
venture agreement with TAAC, earning a 50% undivided interest in the Watershed Property
January
2013
Sanatana reports drill results from exploration efforts over the second half of 2012, encountering gold mineralization in
25 of 27 holes drilled
IAMGOLD publishes an updated resource estimate for the Côté Gold Deposit, increasing Indicated Resources by
114%
April
2013
Trelawney files an application with the Ontario Mining and Lands Commissioner with respect to proposed easement
rights on the Watershed Property. Sanatana objects to the proposed easements on both substantive and procedural
grounds
January
2014
Ontario Mining and Lands Commissioner agrees to hear the Company's preliminary motion requesting that the
easement application be dismissed on the basis that Trelawney has not met the requirements under subsection 175(4)
of the Mining Act (Ontario). The preliminary motion is scheduled to be heard on March 11, 2014.
March 11
2014
Ontario Mining and Lands Commissioner hears motion to dismiss easement application filed by subsidiary of IAMGold.
Decision expected April 2014.
Côté Gold Project Resource
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Côté Gold is a high priority project for IAMGOLD
Source: February 23, 2013 IAMGOLD Presentation at BMO Capital Markets’ Global Metals and Mining Conference.
MINERAL RESOURCE ESTIMATE – DECEMBER 31, 2012
Tonnes (millions) Grade (g/t) Contained Ounces
(millions)
Indicated
0.25 g/t Au cut-off 278 0.86 7.68
0.30 g/t Au cut-off 269 0.88 7.61
0.40 g/t Au cut-off 244 0.93 7.32
0.50 g/t Au cut-off 210 1.01 6.83
Inferred
0.25 g/t Au cut-off 47 0.71 1.07
0.30 g/t Au cut-off 44 0.74 1.04
0.40 g/t Au cut-off 36 0.83 0.95
0.50 g/t Au cut-off 30 0.90 0.88
Prefeasibility Study commenced in Q4 2012
Preliminary Mine Plan for Côté
Gold Project
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• On March 26, 2013, Trelawney Mining
and Exploration Inc., a wholly owned
subsidiary of IAMGOLD, filed a Project
Description and Terms of Reference for
Environmental Assessment with the
Canadian Environmental Assessment
Agency
• On April 26, 2013, Trelawney Mining
and Exploration Inc., a wholly owned
subsidiary of IAMGOLD, filed an
application with the Ontario Mining and
Lands Commissioner with respect to
proposed easement rights on the
Watershed Property that are key to
fulfilling the current mine plan for Côté Gold Project.
• Sanatana objects to the proposed
easements on a number of grounds and
the Company looks forward to the
opportunity to make its position known
to the Commissioner.
Côté Gold Trend
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Source: June 25, 2012 – 2012 Investor Day Presentation by IAMGOLD. Watershed Property added for reference.
Watershed Exploration Summary
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• 3-D geological database compilation
• 1,045-line km ZTEM airborne survey
• Regional airborne magnetics and EM structural interpretation
• Property-wide soil geochemical sampling
• 25-line km "Earth Probe" IP survey over areas immediately along
strike from the adjacent IAMGOLD Côté Gold Deposit.
• Outcrop stripping, mapping and channel sampling
• Ground magnetic surveys over the drill target areas of east Clam
Lake, Chain of Lakes and Chester as well as the Northern Shear
target in the east of the proprty.
• 17,131m diamond drilling over three programs - 25 drill holes
targeting east Clam Lake area, 11 drill holes around Chain of Lakes,
six drill holes at west Clam Lake and one drill hole at Chester targeting
IP anomalies and coincident gold in channel sampling. Highlights on
following page.
Correlating IP Anomalies
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Based on results from all the drilling targeting IP anomalies at Clam Lake, gold mineralization is present as a lower
grade disseminated zone hosted in an intensely silicified breccia. Within and immediately peripheral to these lower
grade zones, high grade gold occurs variously associated with quartz veins, structures, and areas of the most intense
alteration. The nature of the gold mineralization at Clam Lake is similar to that of the adjacent Côté Gold Deposit.
Clam Lake and Côté Gold
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Down hole gold mineralization intercepts from drilling at Clam Lake
correlate along strike with previously published significant drill hole results
from Côté Gold Project and included in the NI 43-101 resource calculation
and the current mine plan pit outline.
236.5 m @ 1.49 g/t Au (cut)
383.0 m @ 1.07 g/t Au (cut)
454.0 m @ 0.91 g/t Au (cut)
63.0 m @ 0.63 g/t Au (cut)
113.6 m @ 0.52 g/t Au (cut)
32.7 m @ 1.45 g/t Au (cut)
50.0 m @ 1.23 g/t Au (cut)
101.2 m @ 0.86 g/t Au (cut)
93.4 m @ 0.32 g/t Au (cut)
62.4 m @ 0.31 g/t Au (cut)
18.5 m @ 1.16 g/t Au (cut)
Watershed Drill Results
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DRILL HOLE GOLD MINERALIZED INTERVAL HIGHLIGHTS
Hole From To Length Au Au Cut
(m) (m) (m) (g/t) (25g/t)
SR-11-02 401 446 45 0.48
SR-11-04 153 203 50 1.33 1.23
SR-11-04 451 454.9 3.9 16.23 10.35
SR-11-05 166 225 59 0.3
SR-12-01 24.8 27 2.2 11.67
SR-12-01 265 321.6 56.6 0.43
SR-12-03 281.9 308 26.1 3.96 0.76
SR-12-11 11 29.7 18.7 1.2 1
SR-12-24 219 322 101.2 0.86
SR-13-01 141.6 235 93.4 0.32
SR-13-03 230.3 263 32.7 1.76 1.45
SR-13-09 151.1 172.5 21.4 1.14
SR-13-12 12 18 6 3.87 2.28
SR-13-14 319.4 433 113.6 0.83 0.52
Notes:
• True widths of intersections are unknown at this time.
• Mineralized intervals are calculated using the weighted Au average based on length of sample, a
lower cut-off of 0.3 g/t Au and an upper cut-off of 25.0 g/t Au, including low grade zones no greater
than 20 metres in length.
Sanatana Value Proposition
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1. Sanatana’s joint venture partner acquired for $65 million
in November 2011 by Trelawney Mining and Exploration
Inc. (Trelawney subsequently acquired by IAMGOLD in
June 2012)
2. IAMGOLD will likely need to acquire Sanatana land that
surrounds the Côté Gold Project in order to proceed with
an optimized mine plan. IAMGOLD has applied for
easements over Sanatana claims, which Sanatana is
defending vigorously. Significant case precedent
established (see Cliffs Denied Easement over Canada
Chrome Mining Claims)
3. Sanatana likely has part of the Côté Gold Deposit
trending onto its property.
Overview of the Agreement
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Initial Agreement
• In February of 2011, Sanatana entered into the Agreement for the Property with Augen Gold
Corp.
• In November of 2011, Augen Gold Corp was acquired by Trelawney Mining and Exploration
Inc., and subsequently renamed Trelawney Augen Acquisition Corp (“TAAC”) Under the
terms of this agreement, Sanatana issued two million shares to TAAC, as well as providing a
cash consideration of $150,000.
50% Secured
• In November of 2012, Santana exercised its first option in the Agreement, acquiring a 50%
undivided interest in the Property
• In order to exercise this option, Santana paid TAAC $150,000 in cash, issued TAAC an
aggregate of 5 million common shares, and incurred over $5 million in work costs related to
exploration of the Property
• The 46 mineral claims that constitute the Property are now registered in Sanatana’s name
• Sanatana also possesses a right of first refusal on a group of nine additional mineral claims
• Santana is the registered owner of the Property, which is to be held in trust for the benefit of
both parties in accordance with their respective interests
• For the life of the agreement, TAAC will have the option to purchase up to 10% of any
securities issued by Sanatana in any future equity offerings.
Reaching 51%
• In order to earn an additional 1% interest in the Property, Sanatana must prepare a
prefeasibility study (anticipated cost of $4 million) for the Property and deliver it to TAAC by
March 23, 2016
• If Sanatana acquires this 51% total interest, the parties would form a Joint Venture to further
explore the Property
• Under the terms of the Agreement, Sanatana will possess the right to function as Manager of
this Joint Venture, and as a result direct any work programs the Joint Venture conducts
Complete details of the option and joint venture agreement are available in Sanatana’s press release dated February 16, 2011, and on www.sedar.com
Investor Presentation – October 2013
TSX.V: STA
© 2012 SANATANA RESOURCES INC.
PH: 604.408.6680
FAX: 604.408.6682
Investor Relations
Matt Hallaran
604-655-2462