TSX-V:GLW. Galway Gold s Vetas Project Santander State, Colombia

Transcription

1 TSX-V:GLW Galway Gold s Vetas Project Santander State, Colombia

2 FORWARD-LOOKING STATEMENT Certain disclosures in this presentation, including management s assessment of Galway Gold plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors beyond Galway Gold s ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, gold price volatility, changes in debt and equity markets, timing and availability of external financing on acceptable terms, the uncertainties involved in interpreting geological data and confirming title to recently acquired properties, the possibility that future exploration results will not be consistent with Galway Gold s expectations, increases in costs, environmental compliance and changes in environmental and other local legislation and regulation, interest rate and exchange rate fluctuations, changes in economic and political conditions and other risks involved in the gold and development industry. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this presentation. Such statements are based on a number of assumptions that may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for Galway Gold s exploration and development activities; operating and exploration costs; the Company s ability to retain and attract skilled staff; timing of the receipt of regulatory and governmental approvals for exploration projects and other operations; market competition; and general business and economic conditions. The forward looking statements contained in this document are based on what management believes to be reasonable assumptions, however, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Galway Gold s actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law. 2

3 CORPORATE OVERVIEW Galway Gold is a well-capitalized company focused on the exploration of gold in the historic Vetas gold district of northeast Colombia where mining dates back over 400 years Vetas is located just 8-km southeast of the multi-million ounce, world-class California gold district Galway Gold s predecessor company, Galway Resources, sold its interests in California plus a 10% interest in Galway Gold to AUX Canada (Eike Batista) for approximately $340 million in cash Galway embarked on very successful underground and surface drilling campaigns at Vetas in which over 46,000 meters in 91 holes were completed In the 68 underground drill holes in the El Volcan mine, Galway reported that 171 samples sent to the lab returned gold values of 10 g/t or more, which equates to 2.5 times per drill hole Measured and Indicated resource of 224,900 oz Au at 10.5 g/t and Inferred resource of 377,000 oz Au at 10.3 g/t identified through underground drilling at El Volcan 3

4 CORPORATE OVERVIEW The Reina de Oro option agreement is for Galway to pay 1.5% of the value of Measured and Indicated gold and silver resources, which equated to $4.3 million as of the date of option expiry Galway had $10.1 million in cash at September 30, 2015 Galway sought to exercise its option to acquire the Reina de Oro concession, which hosts the El Volcan Mine, but was rejected by landowners Galway received a favorable ruling in arbitration and was awarded damages of COP$79,341,923 (approximately US$35,000) per month from December 18, 2013 until February 13, 2015 for a total of approximately US$490,000. Under terms of this award, owners of the Reina de Oro concession were required to make the payment for damages by February 20, Payment was not received by the required date and therefore Galway has proceeded with legal action to collect the payment of damages. The option agreement remains in effect until title can be transferred into Galway s name, which is anticipated to require several months. Galway is committed to Building High-Grade Value, Ounce-by-Ounce 4

5 AUX ACQUISITION Galway Resources AUX Deal: Excellent Value for Galway Shareholders Cash Plus Growth in Two New Cash-Rich SpinCo s For Each Galway Resources Share, Shareholders Received: $2.05/share cash 1.0 share in Galway Gold to hold Vetas with US$18 million cash 1.0 share in Galway Metals to hold Victorio with US$12 million cash The combined US$30 million cash is worth $0.20/share; total cash from AUX is $2.25/share, or $340 mm AUX received Galway s California concessions and 10% of Galway Gold Vetas: High-Grade Gold-Silver System; Excellent Exploration Results at El Volcan Mine Excellent gold-silver resource potential in high-grade veins; maiden resource reported Nov 2013 El Volcan system drill-defined along 550 m of strike; open to at least 1.25 km Gold intersected 600 m below lowest level of El Volcan mine, or 900 m below surface; open to depth, along strike and laterally 16 sub-parallel and sub-vertical veins in competent host rock; bulk-tonnage low-cost underground mining Upside beyond El Volcan mine block: 6 anomalies, including western border with CB Gold 5

6 CAPITAL PROFILE Market cap 3/1/16: C$9m Shares issued and outstanding: 166,511, week high-low: C$ C$0.04 Share price as of 3/1/16: C$0.05 Cash: US$10.1m (September 30, 2015), $0 debt Ownership position: AAV (Mubadala): 17% Institutions: 30% Management, family, friends: 15% 6

7 COLOMBIA VAST GOLD POTENTIAL 80 million ounces of gold have been discovered in the past years, accounting for about 10% of the discoveries worldwide in that time. Early mover advantage enabled Galway Gold to secure an excellent property package in Vetas Other discoveries include Angostura, Gramalote, Marmato, La Colosa and AUX s (Ventana) La Mascota/La Bodega The country hosts 4 prolific gold trends 7

8 VETAS GOLD DISTRICT Reina de Oro - El Volcan Mine 8

9 VETAS DEAL TERMS All option payments of US$1,642,500 and 1,200,000 shares have been made. Only the exercise payment remains. Option exercise payment to earn 100% of the Vetas project is 1.5% of the gold and silver values of Measured and Indicated gold resources, payable in cash and/or stock, at Galway Gold s discretion. 9

10 VETAS HIGHLIGHTS The largest gold and silver mine in the Vetas district, producing for over 400 years, metallurgical recoveries 80%-90% with artisanal mill Exploration efforts are looking for strike, lateral and vertical extensions of mineralized veins; 16 veins now identified - double the original 8 previously known; mineralization open in all directions Mineralization drill intersected along 550 m of strike, 250 m of width and 600 m below the lowest level of the mine (the main, or Reina de Oro level), or to 900 m below surface 2,000 meters of accessible underground workings enable quick geological advancement Galway is the first company to carry out a modern geological exploration program; over 46,000 meters in 91 holes have been completed Measured and Indicated resource of 224,900 oz Au at 10.5 g/t and Inferred resource of 377,000 oz Au at 10.3 g/t High hit ratio in 68 underground drill holes: 5 g/t Au or more, 282 times 50 g/t Au or more, 36 times 10 g/t Au or more, 171 times 100 g/t Au or more, 16 times 20 g/t Au or more, 84 times 150 g/t Au or more, 9 times 30 g/t Au or more, 50 times 1,000 g/t Au or more, 2 times 10

11 RPA RESOURCE ESTIMATE ON VETAS BASED ON 33,238 METERS IN 68 U/G DRILL HOLES TABLE 1: MINERAL RESOURCE ESTIMATE SUMMARY* Category Tonnes Grade Contained Ounces (g/t Au) (g/t Ag) (oz Au) (oz Ag) Measured 23, ,100 9,400 Indicated 641, , ,700 Measured & Indicated 664, , ,100 Inferred 1,146, , ,000 RESOURCE BROKEN DOWN BY VEIN Measured Indicated Vein Name Tonnes Au g/t Ag g/t Ounces (Au) Ounces (Ag) Tonnes Au g/t Ag g/t Ounces (Au) Ounces (Ag) BURRO 137, ,400 61,900 CORTEROS 3, ,500 GREEN 101, ,700 41,700 LOSCAS 5, ,100 61, ,500 20,100 LOSCAS FW 62, ,000 25,700 MANZANILLA 10, , , , ,200 TAJO 4, ,100 83, ,200 40,100 VIRGEN 1 Totals 23, ,100 9, , , ,700 Measured & Indicated Inferred Vein Name Tonnes Au g/t Ag g/t Ounces (Au) Ounces (Ag) Tonnes Au g/t Ag g/t Ounces (Au) Ounces (Ag) BURRO 137, ,400 61, , ,000 67,000 CORTEROS 3, , , , ,000 GREEN 101, ,700 41,700 57, ,000 18,000 LOSCAS 66, ,800 22, , ,000 42,000 LOSCAS FW 62, ,000 25,700 68, ,000 30,000 MANZANILLA 206, , , , , ,000 TAJO 87, ,800 41, , ,000 56,000 VIRGEN 1 245, ,000 86,000 Totals 664, , ,100 1,146, , ,000 *Refer to the press release dated November 27, 2013 for notes associated with the resource estimate

12 INITIAL GEOLOGICAL MODEL TO TEST FOR STRIKE, LATERAL AND VERTICAL EXTENSIONS TO VETAS EL VOLCAN MINE 12

13 FIRST STEP WAS TO CHANNEL SAMPLE EXISTING TUNNELS IN EL VOLCAN MINE Vein Average Gold Sample Grade (g/t Au) Average Silver Sample Grade (g/t Ag) Average Width (m) Total Strike (m) Reina de Oro Level Corteros Vein including Loscas Vein including which includes 2, Manzanilla Vein including which includes Chocolatua Vein Tajo Abierto Vein Total Reina Level Tajo Abierto Level Manzanilla Vein including Burro Vein Tajo Abierto Vein Hueso Duro Vein Ancha Vein-Lower Ancha Vein-Upper Total Tajo Level

14 HIGHLIGHTS OF VETAS DRILL RESULTS Hole ID From To Interval Au Ag (Meters) (Meters) (Meters) g/t g/t Vein Name-Notes GWY-V El Burro Tajo Abierto-VG GWY-V Manzanilla including Manzanilla El Burro-VG including El Burro-VG GWY-V New- VG Loscas-VG GWY-V Manzanilla-VG including Manzanilla-VG GWY-V Green including Green-VG Manzanilla-VG including Manzanilla-VG GWY-V Loscas including Loscas Green-VG GWY-V Tajo Abierto including Tajo Abierto El Burro La Virgen 1-VG GWY-V Loscas-VG including Loscas-VG GWY-V El Burro-VG including El Burro-VG Loscas-VG including Loscas-VG GWY-V Loscas FW-VG GWY-V Loscas HW Loscas FW Manzanilla-VG GWY-V Manzanilla GWY-V Loscas FW-VG Tajo Abierto including Tajo Abierto GWY-V Green *True widths are 18%-98% of down-hole widths Hole ID From To Interval Au Ag (Meters) (Meters) (Meters) g/t g/t Vein Name-Notes GWY-V Loscas HW including Loscas HW GWY-V Manzanilla including Manzanilla GWY-V Green including Green-VG GWY-V Manzanilla including Manzanilla GWY-V Green-VG GWY-V Tajo Abierto HW Corteros Including Corteros Corteros including Corteros GWY-V Manzanilla including Manzanilla GWY-V Corteros FW-VG GWY-V Green-VG including Green-VG GWY-V Loscas-VG GWY-V Manzanilla GWY-V Green including Green Loscas HW GWY-V Tajo Abierto HW Vetas Surface Drilling GWY-VS La Araña-VG including La Araña-VG Piedra Colorada including Piedra Colorada including Piedra Colorada-VG including Piedra Colorada-VG GWY-VS El Brinco including El Brinco-VG New

15 3D EL VOLCAN MINE MODEL New view of 3D vein interpretation from El Volcan Mine-Vetas project. 16 veins intercepted with gold values up to 1,084.6 g/t Au. Initial drilling intersected El Volcan s veins over 0.41 km of strike. Potential exists to extend strike to at least 1.25 km. Drillholes show the first underground drilling campaign (33,238 m drilled in 68 drill holes)

16 EL VOLCAN DRILLING AND STRIKE POTENTIAL

17 EL VOLCAN DRILLING AND DEPTH EXTENSION POTENTIAL; MANY VEINS OUTCROP AT SURFACE 17

18 NEXT STEPS: MOVE DRILLS NORTH TO PADS 3 AND 4 EXTEND STRIKE NORTH; DRILL WESTERN BOUNDARY 18

19 SURFACE PRIORITY TARGETS INTRUSIVE ZONE, ANOMALIES WILL BE TESTED ADDITIONAL 19

20 PROJECTION OF VETAS VEINS ON SURFACE (Looking South-West)

21 SANTURBAN AREA REGIONAL PARK 21

22 SOCIAL AND ENVIRONMENTAL RESPONSIBILITY Galway Gold s Department of Environmental Safety ensures proper management of natural resources, including: air, water, soil, flora and fauna, such that activities generate the least impact possible on the landscape and ecosystem the proper classification and disposal of solid waste and recyclable materials generated in the Company s exploration efforts Regular meetings held with the local community to promote community awareness and involvement Employees in environmental dep t Vetas-6 It is the Company s objective to hire and train local personnel wherever possible Galway Gold surveys its personnel to identify professional and personal goals and attempts to align these goals with Company objectives wherever practicable Galway Gold provides training to improve the professional development of its employees Galway Gold implements activities to involve employee families, such as: Training and Company activities for the families of employees Financial aid for college-age employee children Sponsorship of sports teams 22

23 MANAGEMENT AND DIRECTORS Robert Hinchcliffe CEO, Director & Principal Mr. Hinchcliffe has over 25 years working in the mining industry and has been directly involved in capital raises and transactions in excess of $600 million. Mr. Hinchcliffe founded Galway Resources in 2005 and went on to raise over $100 million and successfully negotiate the sale to AUX for $340 million and establish two new, well capitalized, spinout companies. Prior to that, he worked as Chief Financial Officer of Kirkland Lake Gold, wherein the company raised over $50 million in funds to re-commission the Kirkland Lake Gold Mine. Kirkland Lake currently has a market value of approximately CDN$500 million and produces approximately 150,000 ounces per year. He also worked for seven years on Wall Street as a Mining Analyst for Prudential Securities, SG Cowen, and Santander Investment, covering U.S., International, and Latin American mining companies, in addition to other sectors. Prior to that he spent 4 years working for Jordex Resources in Venezuela where he played a primary role in the identification and then development of a nickel deposit which was later sold for $65 million to Anglo American. Mr. Hinchcliffe has a M.B.A. from Georgetown University, and a B.A. in Economics from the University of Arizona (with a concentration in Mining & Geology). Mr. Hinchcliffe is also fluent in Spanish. Alfonso Gomez Colombia Country Manager, Director Mr. Gómez has over 30 years working in the resource sector, holding various positions with prominent international mining companies in Colombia. Mr. Gómez was a director for Galway Resources and is currently the Colombia Country Manager and Director for Galway Gold, in charge of its efforts in Colombia regarding financial, legal, permitting, environmental and community affairs among other areas. Before joining the Corporation, Mr. Gómez was Vice President of Operations for Prodeco and Vice President of Public Affairs of Carbones del Cerrejon, one of the world's largest coal producers and owner of one of the largest coal mines in the world, producing approximately 35 million tons per year. Mr. Gómez has a degree in Economics from El Rosario University in Bogota and a Masters in International Commerce from the Istituto nazionale per il Commercio Estero ICE, Rome, Italy. Mr. Gómez is also an honorary member of the board of the National Federation of Colombian Miners. In addition to speaking Spanish, Mr. Gómez is fluent in both English and Italian. 23

24 MANAGEMENT AND DIRECTORS Mike Sutton Chief, Geologist, Independent Director Mr. Sutton s career spans over 25 years as an exploration geologist. Mr. Sutton has worked in some of the largest gold camps in the world, including Witwatersrand, Timmins, and Kirkland Lake, serving in various capacities related entirely to the exploration and mining of gold. Mr. Sutton was awarded the Prospector of the Year for Ontario (along with Stew Carmichael) for the discovery of the South Mine Complex while he was Chief Geologist and Assistant Manager at Kirkland Lake Gold Inc. He guided Vault Minerals as Vice President of Exploration to a takeover by Queenston Mining Inc. He has since worked as Senior Geologist (Consultant) at Queenston, Osisko, and now Canadian Malartic. Previous to that, he worked for Kinross, Barrick, Lac Minerals, and Corona. Mr. Sutton is a Director of several companies. He has undertaken over 100 mineral property appraisals and evaluations. He was a Director of Galway Resources, where he played a significant role in the company s take over by AUX for $340 million. As Director of a spin-out company, Galway Gold, he has overseen exploration work at Vetas, Colombia. Mr. Sutton has successfully signed numerous option agreements for his own claim blocks. He is a member of the Association of Professional Geoscientists of Ontario and has been a member of the Prospectors and Developers Association of Canada since Mr. Sutton graduated in 1984 from the University of Toronto with a B.Sc., Geology (honours). Larry Strauss Vice President of Corporate Development, Independent Director Larry Strauss has over 25 years working in the mining industry in different capacities. More specifically, Mr. Strauss has 18 years of experience as a mining and commodities analyst in both Canada and the United States, followed by seven years as a Director and advisor to resource exploration companies. He was most recently a director at Galway Resources from April 2009 until its acquisition in December Prior, Mr. Strauss was a Director at GMP Securities, where he spent seven years as a mining analyst. During his time with GMP, the firm secured advisory roles on mergers and acquisitions, and raised several billion dollars for many leading international mining companies, including Goldcorp, Kinross Gold, Wheaton River, Bema Gold, Ivanhoe Mines and Northgate Minerals, among others. During his career, Mr. Strauss has been awarded Best on the Street in the Mining and Metals category by the Wall Street Journal. Earlier in his career, Mr. Strauss worked with Canaccord Capital, Prudential Securities and Merrill Lynch. Mr. Strauss holds an M.A., Energy and Mineral Resources (cum laude) from the University of Texas at Austin, and a B.S., Geology (honors) from City University of New York at Brooklyn College. 24

25 MANAGEMENT AND DIRECTORS Robb Doub Independent Director Mr. Doub has over 20 years of investing in high growth international and domestic emerging businesses. He is currently a general partner of New Markets Venture Partners, and sits on the Board of several different companies. Mr. Doub sits on the board of multiple mutual funds and hedge funds. Mr. Doub is also a director of Galway Gold and was a director of Galway Resources. He was also a Managing Director of SEAF, an emerging market venture capital company managing over $200 million in Central and Eastern Europe, Latin America, and Asia. He currently serves on the board of K2 Alternative Strategies Offshore LTD, a hedge fund of funds managed by K2 Advisors, a leading multibillion dollar hedge fund of funds. Mr. Doub also serves on the Conflicts Advisory Board of the off-shore hedge funds managed by Deutsche Asset Management's Absolute Return Strategies Group. Mr. Doub graduated from the University of Vermont, with a major in History, and received a MBA with Honors from Georgetown University. 25

26 SUMMARY Galway Gold is a well-capitalized company focused on the exploration of gold in the historic Vetas gold district of northeast Colombia where mining dates back over 400 years Vetas is located just 8-km southeast of the multi-million ounce, world-class California gold district Galway Gold s predecessor company, Galway Resources, sold its interests in California plus a 10% interest in Galway Gold to AUX Canada (Eike Batista) for approximately $340 million in cash Galway Gold s management and board are the same as those that led Galway Resources. Galway has US$10.1m in cash (September 30, 2015), $0 debt Galway embarked on a successful drilling campaign at Vetas; over 46,000 meters in over 91 drill holes have been completed In the first 68 underground drill holes in El Volcan, Galway reported that 171 samples sent to the lab returned gold values of 10 g/t or more, which equates to 2.5 times per drill hole Strong drill results include the discovery of three new veins west of the mine, several within the mine and extend 550 m along strike and to 900 m below surface Measured and Indicated resource of 224,900 oz Au at 10.5 g/t and Inferred resource of 377,000 oz Au at 10.3 g/t In addition to drilling the El Volcan mine from underground, Galway targeted extensions to CB Gold s recent discoveries along its western border; all zones are open in all directions Galway is committed to Building High-Grade Value, Ounce-by-Ounce 26