Denver Gold Forum Sept 25-28, 2005

Transcription

1 Denver Gold Forum Sept 25-28, 2005

2 1. Table of Contents Sustainable Value-Growth Low-Cost Gold Districts Responsible Mining

3 2. Low Cost Low Cash-Costs Lowest cost gold production world-wide ( ) Year El Peñón ($43) El Peñón ($35) Eskay Creek Eskay Creek 2. Eskay Creek Eskay Creek El Peñón LaRonde ($54) 3. Chatree Red Lake Red Lake El Peñón ($50) 4. Pierina Chatree Ridgeway Red Lake 5. Red Lake Morila Pierina Pierina *RAW Materials Database

4 3. Low Cost Low Cost = Real Cash Flow = No Dilution Cash & short term investments (US $M) $251 $ Q1 05 Q2 05 ALL Cash flow from Operations! NO DEBT!

5 4. Low Cost Financial Strength Invested in Exploration Spending Exploration Cost (US$million) Peer Group Comparison of Expensed Exploration Costs Meridian Glamis Agnico-Eagle Goldcorp Iamgold Cambior Budget

6 Glamis Newmont Cambior 5. Low Cost Least Dilution in the Past Decade 600, , , , , ,000 0 Share Issuance 1996 versus 2004 Meridian Barrick Placer Dome Agnico-Eagle IAM Gold Goldcorp Shares Issued (Thousands) Kinross

7 6. Gold District Gold District = Secret to Value Creation District Size Date Producer Abitibi, Canada 150 M oz Au 1850 s PDG + Others Carlin Trend, Nevada >100 M oz Au 1962 ABX, NEM Yanacocha > 40 M oz Au 1992 NEM, BVN Cortez Trend, 37 M oz Au 1966 PDG Nevada Red Lake > 20 M oz Au 1930 s GG, PDG + Others El Peñón > 5 M oz Au 1992 MDG

8 7. Gold District Consistent Resource Growth at El Peñón District Size (Millions of Ounces of Gold) M oz GEO 6 M oz Au M oz Au Year GEO = Gold Equivalent Ounces

9 8. Gold District El Peñón Finding Costs Remain Low 20 Finding Cost Per Gold Ounce $/oz Au Year

10 9. Gold District District Potential at El Peñón Key to Value Creation Expected Project IRR 100% 93% El Penon IRR 80% 60% 40% 46% 67% 20% 0% 12%

11 10. Gold District Development of a New Gold District at El Peñón _E _E _E _E _N _E _E _E _E _N _E _E _E _E MARTILLO FLATS _N _N CERRO MARTILLO _N CERRO MARTILLO _N DISCOVERY WASH DISCOVERY WASH DIABLADA ZONE VISTA NORTE QUEBRADA ORITO _N ORITO NORTE QUEBRADA ORITO EL VALLE Q. COLORADA _N ORITO NORTE QUEBRADA ORITO EL VALLE Q. COLORADA _N _N _N _N SCALE IN METERS M oz SCALE IN METERS SCALE IN METERS 3 g/tonne cutt-off M oz M oz ORITO SUR Resource / Reserves Silicified Vein Or Structure _N ORITO SUR 5 g/t Grade Shell Resource / Reserves Silicified Vein Or Structure _N ORITO SUR 5 g/t Grade Shell Resource / Reserves Silicified Vein Or Structure _N Reserve & Resource (M oz gold) Mined Production (000 oz gold) Total Deposit (M oz gold) Total Deposit (M oz silver)

12 11. Gold District Land Acquisition Expands El Peñón Land Position 80% 750 square kilometer land position at El Peñón Partial El Peñón Land Position Added 330 square kilometers during past 2 years Sparsely explored noncore area Two high grade vein discoveries Dorada and Fortuna The district continues to expand

13 12. Gold District El Peñón Update Currently running at 2,400 tpd Current investments providing operating flexibility Evaluating expansion to 2,800 tpd to maintain production rate longer-term If discovery leads to mine life >10years, evaluate further mill expansion Evaluating impact of satellite ore bodies Run for cash flow/nav Quebrada Colorada Cerro Martillo Portal Cerro Martillo Dorada QC / Dorada Drift Advance (04/17/05) Providenci a Pampa Campamento / Doncella The district continues to expand

14 13. Gold District Expanding Land Holdings in the Atacama Desert Expanded footprint by 5000 square km s Similar geology to El Peñón Under-explored for veins Inexpensive holding costs

15 14. Gold District In Search of the Next Low Cost Gold District Atacama Desert (El Peñón) Carlin Trend (Rossi) Patagonia (Esquel) Americas high grade gold potential Alhue Chile La Pepa Chile Natividad Nicaragua M&A

16 15. Gold District Rossi Extension of Known District Joint Venture with Barrick (60%, operator) High-grade mineralization on northern end of Carlin Trend Ongoing optimization of the feasibility study Exploration Results driving production and timing Small, but potentially profitable

17 16. Gold District Esquel District Listen Evaluate Development Alternatives Social License Mineralized Corridor La Joya Del Sol La Cupula Mallin Del Toro N Esquel Gondolin Galadriel - Julia Antonia Elena Rodeo Bajo Isengard Beleriand Gandalf Airport Ungoliant Clare Marion SCALE 10 km

18 17. Gold District Alhue Option Agreement US $ 100 million for 100% ownership 18 months due diligence for $5 million Located 70 km s south of Santiago, Chile 2004 gold production of 70,000 oz at a cash cost of $155/ounce

19 18. Gold District Minera Florida Mines Exploration Potential Stockwork Zones

20 19. Gold District 2004 Exploration Drilling at Alhue Hellazgo Zone Hole # Intercept (m) Au g/t Ag g/t Zn (%) Pb (%) % 1.0% % 1.6% % 1.3% % 0.3% Tribuna Zone % 0.1% % 0.6% *Drilled by Minera Florida/ Not Audited by Meridian Gold

21 20. Responsible Mining Responsible Mining Environmental/Safety ISO Certification Benjamin Teplizky Lijavetzky Award Completed 1 million man-hours without a lost time accident

22 21. Why Meridian Gold? Low Cost Producer Gold District Advantage Responsible Mining = Superior Shareholder Returns

23 22. Future Outlook Goals to Accomplish for 2008 Characteristics at 1,000,000 oz: 1,000,000 oz Cash costs < $150 US Reserve/ resource life: 10 years Pay meaningful dividends 300,

24 Safe Harbor Statement Certain statements in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or other future events, including forecast production, earnings and cash flows, to be materially different from any future results, performances or achievements or other events expressly or implicitly predicted by such forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, recent operating losses, uncertainty of title to properties, risk associated with foreign operations, environmental risks and hazards, proposed legislation affecting the mining industry, litigation, governmental regulation of the mining industry, properties without known mineable reserves, uncertainty as to calculations of reserves, mineral deposits and grades, requirement of additional financing, uninsured risks, competition, dependence on key management personnel, potential volatility of market price of the Company s common shares, dilution and certain anti-takeover effects. Such information contained herein represents management s best judgment as of the date hereof based on information currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.

25 Denver Gold Forum Sept 25-28, 2005