Investor Presentation February 2012

Transcription

1 Investor Presentation February 2012

2 2 Forward Looking Statements This presentation contains "forward-looking information" (also referred to as "forward looking statements") which may include, but are not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, costs and timing of future exploration, the timing of the development of new deposits, requirements for additional capital, foreign exchange risk, government regulation of mining and exploration operations, environmental risks, reclamation expenses, title disputes or claims, insurance coverage and regulatory matters. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "hopes", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information involves and is subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities and feasibility studies; assumptions in economic evaluations which prove to be inaccurate; fluctuations in the value of the United States dollar and the Canadian dollar relative to each other; future prices of metals; possible variations of ore grade or recovery rates; accidents, labour disputes or slow downs and other risks of the mining industry; climatic conditions; political instability, insurrection or war; arbitrary decisions by governmental authorities; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this presentation and the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. There can be no assurance that forwardlooking information or statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information or statements. Accordingly, readers should not place undue reliance on forward-looking statements. Michael P. Gross, P.Geo., Vice-President Exploration of Northern Gold Mining Inc. ( NGM ), a qualified person as defined by National Instrument of the Canadian Securities Administrators, has reviewed and verified the technical information contained in this presentation regarding NGM s properties. Certain of the technical information in this presentation is taken from three NI technical reports* for the Garrcon Gold Project, which may be found under NGM s profile on Note: The October 2009, September 2010 and June 2011 resource update, which also contained a Preliminary Economic Assessment (PEA), are all National Instrument Reports that were independently prepared by A.C.A. Howe International Limited ( Howe ) of Toronto and posted by the Company on SEDAR. All monetary amounts herein refer to Canadian dollars unless otherwise specified.

3 3 Standards of Disclosure for Mineral Projects Information Concerning Estimates of Mineral Reserves and Resources The mineral resource estimates reported in this presentation were prepared in accordance with Canadian National Instrument Standards of Disclosure for Mineral Projects ( NI ), as required by Canadian securities regulatory authorities. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be converted into reserves. In addition, inferred mineral resources have an amount of uncertainty as to their existence and an uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, issuers must not make any disclosure of results of an economic analysis that includes inferred mineral resources.

4 4 Garrison Gold Project Our Value Proposition Garrison Gold Project hosts two key Gold deposits located in the Abitibi Greenstone Belt, 100 Km east of Timmins, Ontario Garrcon and Jonpol Deposits Garrison Gold Project Two NI compliant resource estimates for the Garrison Project including a Preliminary Economic Assessment (PEA) for Garrcon Timmins Val D or Kirkland Lake Toronto Low cost explorer Excellent land package for expanded exploration, infrastructure and development of future open pit mine

5 5 Corporate Data at Jan 31st, 2011 Capital Structure TSX Venture Symbol Share Price (Jan 31st) Share Price (52 Week Range) Basic Shares Outstanding Fully Diluted Shares Cash NGM C$0.22 C$0.17- C$ million 180 million C$7.5 million Debt $0 Market Capitalization Developing Institutional Shareholder Base C$34 million Sprott Asset Management, Dundee Resources

6 6 A 100 Year History of Prolific Canadian Gold Mining The Garrison Gold Project is located along the Porcupine-Destor and Munro Fault zone in the Timmins-Kirkland Lake Gold District, a region with historic production dating from the early 1900 s of over 200 million Au ounces. Garrison Gold Property Wahgoshig First Nation Garrison Gold Property Town Gold Deposits > 3.0M oz. Gold Deposits < 3.0M oz. Major Faults Hollinger-McIntyre Timmins 71 Moz Parmour Dome Black Fox Holloway North Gate Kirkland Lake 47Moz Matachewan Kerr Addison Ontario Rouyn-Noranda 19 Moz Quebec Doyon Cadillac 18 Moz Bousquet Malartic Malartic 9 Moz Sigma-Lamaque Val d Or 28 Moz

7 Garrison Property Drill & Zone Plan 7

8 Garrcon Gold Deposit 8 Surface exposure, bulk mineable potential Quartz-carbonate vein stockwork in siliceous - meta sediments Resource footprint is 800m long by 300m wide Open to east, west, at depth and to the north toward the Jonpol East Zone Aggressive 70,000+ meter drill program planned for 2012 Immediately adjacent to Highway 101. Nearby hydro-electric power, good water source Operating core shack facility Mines in proximity St. Andrew Goldfields Harker-Holloway, Hislop, and Brigus Black Fox

9 Continuity of Mineralization 9

10 10 Garrcon Deposit Selected Drill Intercepts Across the Garrcon Deposit showing consistently long mineralized sections Hole ID Length (m) Au Grade (g/t) GAR GAR GAR GAR GAR GAR-11-71A GAR GAR GAR (interval 194m-241m) GAR (interval 313m-463.6m)

11 Drill Hole Expansion 11 A.C.A. Howe International Limited- Technical and Preliminary Economic Assessment June 23, 2011

12 Longitudinal Section of Garrcon Deposit 12

13 13 Evolution of Resource Estimate September 2010 cutoff = 0.5 g/tonne Indicated Resources 144,000 ounces 3,780,000 tonnes 1.2 grams/tonne Inferred Resources 530,000 ounces 18,500,000 tonnes 0.9 grams/tonne June 2011 cutoff = 0.3 g/tonne Indicated Resources 720,000 ounces 29,400,000 tonnes 0.9 grams/tonne Inferred Resources 430,000 ounces 18,600,000 tonnes 0.8 grams/tonne

14 Garrcon Deposit Block Model and Pit 14

15 15 Preliminary Economic Assessment Highlights Garrcon Deposit as at June 2011 Gold Price US$1200 per ounce In Pit Ounces: Annual Production: High Grade Ounces (0.3g/t cutoff): 960, g/tonne Low Grade Ounces (0.2g/t cutoff): 80, g/tonne 130,000 oz./year Mine Life: Cash Costs: Initial Capex: NPV: IRR: Payback: Average Annual Cash Flow 8+ years $495 per ounce, life-of-mine $156.3 million $265.9 million 47% after tax 2.2 years $49.2 million

16 Focus on Expanding 16 Current focus on expanding known mineralization to depths of 500+ meters along strike 58 holes with 1.0 g/t over +50 meters 4 Diamond Drills currently operating 70,000+ meter drilling program planned for 2012

17 Upside Potential 17

18 Further Upside Potential 18

19 19 Historic Jonpol Gold Deposit In a 50,400 tonne bulk sample was mined with an average grade of 8.3g/t which produced 13,564 oz Au. 45,000 meters of unassayed core from 419 historical holes to be re-assayed Jonpol is closed* but existing ramp and shaft are preserved *in full compliance with regulations Sulfide-rich, HG, narrow vein in mafic, ultra-mafic rocks

20 20 Hyperspectral Imaging Core Mapper by Photonic Knowledge Drill Core Mapping/Logging to identify lithology and alteration associated with Gold Represents a significant advance in logging and processing drill core when assessing gold mineralization on the property Output integrates with geological modeling, enabling 2D or 3D visualization Core Mapper used to map and identify mineralogical content of meters of core per week

21 21 Social and Environmental Responsibility Practice Social Actively working with neighbouring Wahgoshig First Nation Utilizing Wahgoshig as a preferred vendor Contractor Asinii Drill Co. has hired local band members Initiated IBA (Impact Benefits Agreement) discussions with Wahgoshig Plans to continue to provide jobs and training during mine development Environmental Considerations at all design and planning stages to optimize environmental processes Retained Blue Heron, Environmental Consultants to ensure mine development and planning will comply with environmental regulations Metallurgical testing is designed to reduce chemical footprint of the operation

22 Looking Forward Garrison Project: UPDATED RESOURCE ESTIMATE Q Complete IBA agreement with Wahgoshig First Nation Aggressive drill program (infill and step out) targeting Jonpol East Zone and Garrcon Deposit Ongoing environmental monitoring in support of mine permitting Follow-up and detailed metallurgic test work Continued geochemical definition of resources (ARD) Geotechnical Engineering Mine Design

23 Forward Looking Time Line Garrcon Deposit 1. Environmental Background Studies 2. Environmental Background Studies Production Permitting Mill & Facilities Siting Studies Condemnation Drilling Metallurgical Testing Feasibility & Pit Design Mill & Facilities Construction Mine Development Production Permitting for Expansion Feasibility For Expansion and Pit Design Infill and Definition Drilling 'Stepout & Infill Drilling to the East Stepout Drilling to the West Preliminary Economic Analysis Jonpol East Zone Infill (Garrcon Northerly Expansion) Stepout Drilling to the North Into Jonpol East Zone 'Infill Drilling In Jonpol East Zone Scanning/Re-logging & Assaying of Existing Core 'Preliminary Metallurgical Testing Metallurgical Testing Jonpol Deposit Scanning/Re-logging & Assaying of Existing Core 'Infill Drilling In HW of Jonpol RD, JP & JD Zones Preliminary Metallurgical Testing 'Metallurgical Testing 23

24 Continuing Story of Growth Resource Growth on the Garrison Property June 2011 Sep 2010 Oct JonPol Indicated: 63,000 Inferred: 247,000 JonPol Indicated: 63,000 Inferred: 247,000 JonPol Indicated: 63,000 Inferred: 247,000 Garrcon Indicated: 720,000 Inferred: 430,000 Garrcon Indicated: 144,000 Inferred: 530,000 Indicated and Inferred Oz Au 980,000 oz 1,459,000 oz 300,000 oz 371% (Oct 2009 Jun 2011)

25 25 Low Cost Explorer Low Cost Per Ounce of Resource Developed on the Garrison Gold Project Cost Per Ounce Resource Garrcon w/o Acquisition At June 30, 2011 $5.14 Meters Drilled from Oct. June Sept ,761 37,479 Exploration Costs Per Meter 30, 2011 Acquisition $/oz Resource Garrcon Total Exploration Costs Overall/Meter drilled $ Direct Cost Categories: At Sept 30, 2011 $6.97 Diamond Drilling $90.41 DD + Assaying $ DD + Assay + Field Labour $ Ditto + Field Equipment & Supplies $168.25

26 26 Significant Drilling/Assaying Statistics Data Since Drilling Commenced in May 2010 to October 2011 Total Drill Holes Drilled 106 Total Holes with No Significant Results 5 Percent Success 95.3% Depth drilled 100 Meters+ 200 Meters+ Significant downhole intercepts greater than 0.3g/t Au found in 41 holes Number of Drill Holes Intercepts By g/t Drill Intercepts >0.5 & <1.0 >1.0 & <2.0 >2.0 & <3.0 >3.0 Intercepts Longer Than 25 M and Less Than 50 M Intercepts Longer Than 50 M and Less Than 100 M Intercepts Longer Than 100 M and Less Than 200 M 8 3 Intercepts Longer Than 200 M and Less Than 300 M Intercepts Longer Than 300 M 7

27 27 A Solid Story RESOURCE EXPANSION POTENTIAL Garrcon is open on strike, at depth and north to Jonpol East Zone 95% drill success rate for 106 holes drilled over 18 months - May 2010 to Oct Resource Estimate doubled every 9 months Low cost explorer STRATEGIC LOCATION AND INFRASTRUCTURE A centrally located, surface Gold resource in the historic Timmins/Kirkland Lake Gold Mining District Close to operating St. Andrew Goldfields Holloway Mines and Brigus Black Fox Mine An excellent land package, with infrastructure and qualified labour force MANAGEMENT EXPERIENCE Skilled team with proven geology, mine start-up and mine operations experience Significant public market and financing experience Low Cost Operation Large Tonnage Open Pit Mineable Continuity of Mineralization

28 28 Management Founder and Director of Northern Gold Mining Inc. Over 25 years in mineral exploration and brokerage industry Formerly at Hecla Mining, Exall and Royal Oak Over 42 years exploration, mining, mine operations and corporate management Martin R. Shefsky President & CEO, Director Michael P. Gross Vice President Exploration Eric E. V. Szustak Chief Financial Officer Over 25 years in public accounting and brokerage industry Currently CFO of Castle Resources and Northern Gold Mining Inc. Heather A. Laxton Chief Governance Officer & Corporate Secretary 15 years governance, corporate secretarial and securities regulation experience with a focus on the resource sector Experience with TSX, TSXV, NYSE- AMEX and London - AIM listed issuers

29 29 Board of Directors James C. Gervais, LGen (Ret d), Chairman and Independent Director Retired from the Canadian Forces in 1993 as Commander of the Army Director SAMA Resources Inc., an international mineral company Eric M. Moeller Independent Director Registered Professional Geologist (RPG 374 SC) Principle, Nanoparticle Consultancy LLC Over 30 years of surface and underground mining experience Dennis H. Waddington Independent Director Professional Geoscientist (ON) 45 years within the mineral resource sector Financial consultant; gold and base metals exploration Patrick Culhane Director Over 20 years mineral exploration Independent geological contractor Former Ontario Provincial Police officer Nuno Brandolini Independent Director General Partner of Scorpion Capital Partners, L.P., Formerly with Lazard Frere, Solomon and Rosecliffe Inc. Martin R. Shefsky President & CEO, Director Founder and Director of Northern Gold Mining Inc. Over 25 years in mineral exploration and brokerage industry

30 Northern Gold Mining Inc. is led by an expert team with the ability to create a high value mine out of low cost assets with the clear vision to maximize shareholder value. 30