b
Near Term Production
with Exploration Upside
Investor Presentation | June 2017
Forward Looking Statements
Statements made in this presentation, other than those concerning historical information, should be considered
forward-looking statements which are subject to various risks and uncertainties. Such forward-looking statements
are made based on management’s belief as well as assumptions made by, and information currently available to,
management.
The Company’s actual results may differ materially from the results anticipated in such forward-looking statements
as a result of a variety of factors. Additional information concerning factors that could cause actual results to
materially differ from those in such forward-looking statements is contained in the Company’s filings with the
securities and regulatory authorities.
Note: Grade and tonnage historical estimates for Headway presented herein are historical in nature and were not
prepared in accordance with 43-101 and has not been verified by a qualified person. and should not be relied on
except to represent an order-of-magnitude estimate of mineral resources notwithstanding that Sage believes the
estimates are based on reliable information prepared by reputable individuals using accurate analytical
techniques. Goldbrook provided the source of the Headway historical estimate.
Sage currently plans on completing a reserve estimate and a prefeasibility study for the Clavos project. In the
event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating
economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned
that there is increased uncertainty and higher risk of economic and technical failure associated with such
production decisions.
2
Canadian near term
producer/explorer with two
principal assets in Ontario’s
most significant and historic
mining camps
– Timmins and Beardmore.
3
Highlights
CLAVOS
ONAMAN
• Timmins, Ontario
• The 100% owned Onaman
Property north of Beardmore, offers
exploration upside - VMS core with
compliant polymetallic
resources on the Lynx stringer
deposit
• 316,000 ounce Indicated and Inferred gold
project located amongst major industry
players in a world class gold mining camp
• One of the lowest CAPEX in the
industry, $70+ million historically invested by
St. Andrew Goldfields and Sage
• Toll milling agreement – Primero – Stock Mill
• Acquired highly prospective VMS
land package contiguous to
Onaman
• Permits – fully permitted for Production
•
Active exploration program
Aggressive goal for both properties
in production 2017 and 2020
4
Board of Directors
Mr. Mars is an independent consultant specializing in mine financing and analysis with over 30 years of experience in the investment
industry. Mr. Mars has acted as Chairman, CEO, or Director for several public-traded mining companies and is currently a Director of
Yamana Gold and Aura Minerals.
Patrick J. Mars
Chairman and Director
C. Nigel Lees
President, CEO & Director
Peter Bojtos
Mr. Bojtos is a professional engineer with extensive experience in mineral development and production. Since 1996 following a successful
career as CEO of several companies, Mr. Bojtos serves on mining company boards as an independent Director.
Director
Mr. Robertson is a Certified Financial Planner. He has worked in the financial industry for the past twenty years, and presently serves on
the board of several private companies as well as on the board of six Canadian junior gold mining companies.
Gary Robertson
Director
Mr.
. Freeman has over 30 year’s experience working in Financial Services in the City of London, including regulatory and compliance
roles within authorised firms and exchanges, as well as board roles in publicly quoted companies. He is a Senior Regulatory Officer at a
UK Recognised Investment Exchange; a Lay member of the Upper Tribunal (Tax & Chancery) and the Probate Committee of the
ICAEW. He is also a director of TSX-V quoted Cabo Drilling Inc., of Capital Lease Aviation PLC and of Jenolan Ltd.
Peter Freeman
Director
Thomas Puppendahl
Director
Mr. Lees is a founder and past director of TVX Gold Inc., a significant gold producer in North and South America, which merged into Kinross
Gold, listed on the TSX and the New York Stock Exchange. Mr. Lees has over 30 years experience in the Canadian investment industry and
is currently a Director of Yamana Gold.
Mr. Puppendahl is a Managing Partner of Cartesian Royalty Holding PTE Ltd., a gold streaming and royalty company. He is an investment
professional with 25 years of experience in global assets as a portfolio manager, strategist, investment banker and analyst in London, India
and Singapore.
Management has a long history of
moving grassroots exploration projects into production
5
Management and Consultants
C. Nigel Lees
President, CEO & Director
William D. Love
VP, Business Development
David McDonald
Chief Financial Officer
Bob Ritchie
P.Eng, QP
Project Manager
Avrom E. Howard
MSc, P.Geo
Senior Geologist
Peter Hubacheck
P.Geo, QP
Senior Geologist
Mr. Lees is a founder and past director of TVX Gold Inc., a significant gold producer in North and South America, which merged into Kinross
Gold, listed on the TSX and the New York Stock Exchange. Mr. Lees has over 30 years experience in the Canadian investment industry and
is currently a Director of Yamana Gold.
Mr. Love is a geologist who has been involved in mineral exploration in Canada and was part of the world class Hemlo discovery team. He
was also an institutional equity salesperson in London, England, for a Canadian brokerage firm. Mr. Love has spent the last fifteen years as
a venture capitalist and a corporate finance specialist in a variety of resource and technology companies.
Mr. McDonald brings over 25 years of experience in CFO roles in private and public companies, focusing on the mining industry since
2006. Mr. McDonald is a CPA, CA and holds an Honors Bachelor of Commerce from Laurentian University in Sudbury.
Mr. Ritchie is a Professional Engineer with over 40 years of experience in mine management and development, feasibility studies and
mine construction. He has worked with several mining companies including Goldcorp, Noranda Mines and St. Andrew Goldfields. He was
responsible for the construction of the Stock (now Brigus Gold) Mill. Mr. Ritchie is a graduate of the Michigan Technological University with
a Bachelor of Science in Geology Engineering. He is also a Qualified Person (QP) as defined by NI43-101.
Mr. Howard obtained a Bachelor of Science degree in Geology from the University of Toronto, and a Master of Science degree in
Economic Geology from the University of Colorado (Boulder). Subsequently, he obtained certification as a Gemologist from the
Gemmological Association of Great Britain. His professional experience spans a wide variety of mineral commodities, geological settings,
countries and continents.
Mr. Hubacheck is a consulting geologist with over 40 years of experience as a project geologist, exploration manager and Qualified
Person for the purposes of NI 43-101, with experience in the exploration for base metals, gold, silver and diamonds in Canada and the
USA. He has participated on exploration discovery and development teams for several companies including Texasgulf, Pan Ocean Oil,
Agnico-Eagle and Sage Gold. He holds a Mining Technologist diploma from the Haileybury School of Mines and Technology and a B.A.Sc.
(Geol. Eng.) degree from the South Dakota School of Mines and Technology.
6
Capital Structure
Symbol
TSX.V:SGX
Shares Outstanding
76.6 million
Shares Fully Diluted
107.6* million
Current Price
52 week high/low
Market Cap
$0.22
$0.27/$0.05
CAD $17 million
* Excludes 7.8 million restricted Special Warrants exercisable into Units of one common share and one Warrant.
If exercised the shares outstanding will be 76.3 million and fully diluted, 123.1 million.
7
Timmins Gold Camp
Clavos Project
8
Recent Highlights - CLAVOS
Permitted up to 700 tonnes/day
Life of mine toll milling contract with Primero Mining
Financing in place: $11.5 million
Dewatering and rehabilitation underway
Underground definition and exploration commencing
9
Ideal Location
10
Mineral Resources 10/2012
MAIN ZONE
Hangingwall Zones
960 ZONE
Contact Zones
Footwall Zones
Sediment Hosted Zones
Other Zones
0
MAIN ZONE
Indicated Resources
960 ZONE
Inferred Resources
Tonnes
Gr (g/t Au)
Oz Au
Tonnes
Gr (g/t Au)
Oz Au
Hangingwall
595,900
4.92
94,300
119,000
5.60
21,000
Footwall
267,000
5.11
43,900
162,000
4.20
22,000
Contact
237,800
4.45
34,000
-
-
-
Sediment
66,400
5.07
10,800
243,000
4.20
33,000
-
-
112,000
6.00
22,000
4.88
183,000
636,000
4.80
98,000
Other
Subtotal
-
1,167,100
Indicated Resources
100
200m
Inferred Resources
Tonnes
Gr (g/t Au)
Oz Au
Tonnes
Gr (g/t Au)
Oz Au
Hangingwall
69,900
4.04
9,100
77,000
5.0
12,000
Footwall
10,200
3.91
1,300
51,000
3.5
6,000
Sediment
11,200
3.51
1,300
32,000
4.7
5,000
91,300
3.99
11,700
160,000
4.5
23,000
Subtotal
Note: The 2012 resources are estimated at a cut-off grade of 2.75 g/t Au, high gold assays are cut to 60 g/t Au and an average long-term gold price of US$1600 per ounce was used.
11
1000 drill intercepts above cut-off
grade to be added to the resource
blocks.
Potential increase in tonnage.
12
High grade exploration potential
N
S
Looking East
Contact
Zone
Porphyry
Sediment
Altered Ultramafic
Ultramafic and Volcanics
Sediment
Hosted
Zones
Hangingwall
Zone
Hangingwall Zones
Contact Zones
Footwall Zones
KC99-155
KC99-154
Sediment Hosted Zones
Other Zones
10.9 gpt/0.5m
5.9 gpt/0.9m
9.4 gpt/1.0m
17.4 gpt/1.5m
KC99-154
65.3 gpt/4.2m
Incl. 374.1 g/t over 0.7m
At depth very good intersections,
and potentially another high
grade mine zone.
KC99-155
13
Exploration Potential
960 ZONE
MAIN ZONE
2
3
9.4 gpt/1.0m
7.0 gpt/1.5m
?
10.5 gpt/3.4m
8.4 gpt/0.9m
Plunging high Grade Zones?
?
1①
?
65.3 gpt/4.2m
1
Plunging high Grade Zones
2
Potential connection between
Main Zone and 960 Zone
3
Extension along strike
(east and west directions)
3
3
Drillhole Au
Legend (gpt)
1.0 to 2.5
2.5 to 5.0
5.0 to 10.0
10.0 to 50.0
50.0+
0
200
400m
14
Grade Thickness Map – High Grade Holes
KC 99-131
94.6g/t – 9.6 m
KC 99- 137
61.59g/t – 3 m
KC 99-155W
85.15g/t –
3.2 m
15
Recent gold price CDN$1700
Already beyond $1500 base case,
which will will have a materially
positive impact on revenue
and profitability.
16
Clavos PEA 2013 Economic Model
GOLD PRICE
USD / Oz (Au)
$1500/Oz Base Case
Oz/Au
145,448
Revenue
$CAD million
218.2
Initial Capital Expenditures (100%) - See Note 1
$CAD million
8.0
Sustaining Capital
$CAD million
21.1
Total Capital
$CAD million
35.1
Operating Expense
CAD t/Ore
142.5
Net Smelter Return
CAD t/Ore
6.5
$CAD million
34.0
Net Present Value (NPV) 8%
$CAD million
23.2
Internal Rate Of Return (IRR)
%
71%
Net Present Value (NPV) 8%
$CAD million
12.6
Internal Rate Of Return (IRR)
%
47%
Life of Mine
Year
7
Payback Period
Year
2.00
Gold Production
Cash flow (undiscounted) – See Note 2
Pre Tax – See Note 3
After Tax
Note - assumes an exchange rate of 1:1 of CDN to US Dollar;
1.
contingency on capital expenditures of 30% and represents 100% ownership
•
Initial CAPEX $8 million
•
Life of mine $14.1 million
2.
tax rates are based on a blended rate between Sage and SAS
3.
excludes any financing costs
The PEA does not indicate the economic viability of the mineral resource and is preliminary in nature, includes inferred resources that are
considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as
mineral reserves and that there is no certainty that the PEA will be realized. Mineral resources that are not mined reserves do not have
demonstrated economic viability.
17
Onaman Property
Lynx Deposit
18
Path to Production … & Beyond
Northwestern
Ontario
Situated
in NW
Ontario
Onaman Property
N
Sage Gold Inc.
Polymetallic northern volcanic belt
Barrick Gold Corp.
Marshall Lake Property
(copper‐zinc‐silver‐gold)
Premier Gold Mines Ltd. & Centerra Gold Inc. Premier Gold Mines Ltd.
Onaman
Property
North American Palladium Ltd.
Laurion Minerals Exploration Inc. Copper Lake Resources Ltd.
Other Company Lake Nipigon
Clavos
Property
ONAMAN PROPERTY
(copper‐gold‐zinc‐silver)
11
Brookbank Deposit
Ishkoday Property Geraldton
TRANS CANADA HIGHWAY
(gold) (copper‐gold)
Leitch Mine Northern Empire (gold)
Hardrock/Trans Canada Mine (gold)
Beardmore
Deposit (gold)
Mattabi Mine
(zinc‐copper‐silver)
Wabigoon
Subprovince
Ontario
Gold‐dominant southern sedimentary belt
Lac Des Iles
(palladium‐platinum)
11
Younger
Rocks
Wawa Subprovince
TRANS CANADA HIGHWAY
Archean
Metasediments
0 35 70km
Thunder Bay
Lake Superior
Hemlo (gold)
Marathon
1
19
Exploring for High Value VMS Deposits
Volcanic-hosted polymetallic sulfide (VMS)
deposits are extremely attractive
exploration targets:
•
•
•
•
•
•
•
Mix of copper-lead-zinc-gold-silver
Hedge against fluctuating metal prices
Deposits can range from under 1 to over 100
million tonnes
Large, discrete lenses of high value ore enables
cost-effective mining
Smaller surface and environmental footprint
VHMS deposits tend to occur in clusters
Additional discoveries often following one upon
the other
20
Onaman Property: On the verge of discovery
Historical exploration (1940s) led to discovery
of the Headway deposit, hosting 739,400 tons
averaging 3.15% zinc and 31 g/t silver (NonCompliant Historical Resource)
Recent exploration (2000s) led to the
discovery of the Lynx deposit with a
Compliant Inferred Resource of 1.936 million
tonnes averaging 1.44% copper, 39.6 g/t
silver and 0.58 g/t gold
Both deposits fit perfectly within the context
of a classic VMS setting, with the main
deposit remaining to be found
Historical and current geological mapping has
documented numerous features associated
with the VMS setting
21
Milestones
CLAVOS
ONAMAN
Q3 2012
Fully Permitted
Q3 2016 Complete surface mapping of
the IBZ zone
Q1 2013
PEA Completed
Q3 2016
Finalized all regulatory and
logistical production requirements
Q4 2016
Signed Life of Mine milling contract
Production permit 700 tonnes/day
Mapping to identify new zone
and link to previous Sage geophysics
Analyzing previously discovered
massive sulphide float bolder
Q1 2017
Dewatering and rehabilitation underway
Q4 2016 Interpretation of data with the aim of
selecting drill targets in IBZ
Q1 2017
Surface Exploration Drill program completed
Q1 2017 Acquired Strategic Property
Underground definition and exploration
drilling commences
Q1 2017 Surface Drill program completed
Q3/4 2017 Production begins
Q3 2017 Summer Exploration program begins
22
Why invest?
Two properties, situated in established mining camps near industry players, offer production
potential with low CAPEX, exploration upside and commodity diversification.
Clavos – Dewatering, Drilling Q1/2 2017, Production Q3 2017, new Gold structures to be drilled
Onaman - VMS targets selected, Acquired Strategic Property, Drilling Q1 2017
Rerating event – Project Financing – non-dilutive, Clavos Production, Onaman New Discoveries,
Timmins camp consolidating
Strong financial backing, and broad shareholder base.
23
With production, development and exploration
stage assets consisting of both base and
precious metals, an experienced and dedicated
management team, commodity diversification and
a renewed metals bull market underway,
Sage is poised for significant appreciation.
24
CONTACT
Sage Gold Inc.
67 Yonge St., Suite 808
Toronto, ON M5E 1J8
Tel.: 416-204-3170
Fax: 416-860-9349
Karen Levy
[email protected]
25