Stronghold Metals Inc. Eagle Mountain Gold Project

Stronghold Metals Inc. Eagle Mountain Gold Project

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  STRONGHOLD METALS INC. EAGLE MOUNTAIN GOLD PROJECT GUYANA, SOUTH AMERICA A Canadian exploration and mining company focused on the development of its gold assets in South America TSX.V: Z OTC QX: SDMTF Frankfurt: E9X March 2012
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  LEGAL DISCLAIMER Some%statements%in%this%presenta.on%contain%forward3looking%informa.on.%We%have%iden.fied%such%statements%with%as%asterisk%for%your%ease%of%iden.fica.on%of%forward%looking3 informa.on.%%These%statements%include,%but%are%not%limited%to,%statements%with%respect%to%the%expected%benefits%from%having%a%management%team%seeking%to%aggressively%grow%the% Company%into%a%mid%.er%gold%producer%through%the%explora.on%and%development%of%exis.ng%assets,%the%comple.on%of%the%acquisi.on%of%a%significant%interest%in%the%Eagle%Mountain% Project%and%the%development%poten.al%of%the%Company's%proper.es.%%Specifically,%any%statements%regarding%the%poten.al%increase%of%the%Company’s%inferred%resource%at%the%Eagle% Mountain%Project%and%the%goals%and%objec.ves%of%the%Company%are%by%their%nature%forward%looking%informa.on.%%These%statements%address%future%events%and%condi.ons%and,%as% such,%involve%known%and%unknown%risks,%uncertain.es%and%other%factors%which%may%cause%the%Company’s%actual%results,%performance%or%achievements%to%be%materially%different% from%any%future%results,%performance%or%achievements%expressed%or%implied%by%the%statements.%% % General%risk%factors%and%assump.ons%include,%among%others,%the%effects%of%general%economic%condi.ons,%the%price%of%gold%and%other%metals,%changing%foreign%exchange%rates%and% ac.ons%by%government%authori.es,%uncertain.es%associated%with%legal%proceedings%and%nego.a.ons,%compe..on%for%resources,%and%misjudgements%in%the%course%of%preparing% forward3looking%informa.on.%% % Specific%risk%factors%include%risks%associated%with%the%ability%obtain%any%necessary%approvals,%waivers,%consents%and%other%requirements%necessary%or%desirable%to%permit%or%facilitate% the%development%of%the%Company’s%proper.es,%the%risk%that%any%applicable%condi.ons%of%the%acquisi.on%of%an%interest%in%the%Eagle%Mountain%Project%may%not%be%sa.sfied,%risks% associated%with%project%development;%the%need%for%addi.onal%financing;%opera.onal%risks%associated%with%explora.on%ac.vi.es%and%results,%mining%and%mineral%processing;% environmental%liability%claims%and%insurance;%reliance%on%key%personnel;%the%poten.al%for%conflicts%of%interest%among%certain%officers,%directors%or%promoters%of%the%Company%with% certain%other%projects;%the%vola.lity%of%the%Company’s%common%share%price%and%volume;%tax%consequences;%and%other%risks%and%uncertain.es.%% % Eagle%Mountain%is%in%the%explora.on%stage%only%and%is%without%a%known%body%of%commercial%ore.%%An%increase%in%the%current%inferred%resource%will%only%occur%if%favourable% explora.on%results%are%obtained.%The%business%of%exploring%for%minerals%involves%a%high%degree%of%risk.%% Any%forward3looking%informa.on%contained%in%this%presenta.on%is%based%on%the%geological%interpreta.on%of%results%obtained%from%explora.on%ac.vi.es%conducted%on%the% Company’s%proper.es%to%date,%including%geological%and%geophysical%surveys,%sampling%and%mapping%programs%and%drilling%results.%Results%are%interpreted%by%the%Company’s% management%and%staff%and%future%programs%and%plans%are%formulated%based%on%such%interpreta.ons.%In%making%statements%that%contain%forward3looking%informa.on,%management% assumes%that%the%results%are%accurate%and%will%be%verified%by%independent%examina.on,%that%in%country%condi.ons%and%in%the%state%of%the%financial%markets%remain%somewhat% constant%and%that%management%has%the%technical%and%financial%capability%and%exper.se%to%achieve%the%Company’s%growth%plans.%%Forward3looking%statements%are%made%based%on% management's%beliefs,%es.mates%and%opinions%on%the%date%that%statements%are%made%and%the%Company%undertakes%no%obliga.on%to%update%forward3looking%statements%if%these% beliefs,%es.mates%and%opinions%or%other%circumstances%should%change,%except%as%required%by%law.%In%accordance%with%good%corporate%governance%procedures,%management% constantly%monitors%and%re3assesses%the%Company’s%ac.vi.es,%results%achieved%and%future%plans.%%In%the%event%management%forsees%or%experiences%material%changes%to%the% Company’s%business%and%future%plans,%it%will%update%forward%looking%statements%accordingly%% % Each%recipient%of%this%document%accepts%that%no%representa.on%or%warranty%is%made%concerning%the%informa.on%herein%nor%is%any%liability%accepted%in%respect%thereof%by%Stronghold% Metals,%or%any%other%shareholder%(present%or%future),%or%Director,%Officer,%advisor,%or%by%any%of%their%respec.ve%affiliates;%Company%Copyright%clauses%are%valid%in%this%case.%Content% and%slides%from%this%presenta.on%are%not%allowed%to%be%copied%or%distributed%otherwise,%without%the%wriVen%consent%of%the%Company.% % *Denotes%forward3looking%informa.on.% 2%
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  OUR MISSION & STRATEGY Our Mission: !  To move quickly to becoming a near term, mid-tier gold producer by establishing the economics of a low cost, open pit operation in a mining and environmentally friendly way.* Our Strategy and Timeline for 2012: !  Q2 2012 – Update existing 43-101 compliant resource based on the results of the 2011 exploration program. !  Q3 2012 - Deliver a Scoping Study and Economic Assessment Report to develop a costing model to support an independent Au mining operation targeting 60k-75,000 ounces per year. (1st Phase development) !  Q2 2012 – Commence work on an Environment Impact Assessment Report to ensure compliance with all Guyanese environmental regulations and with global “best practises”. !  Q3 – Q4 2012 – Application for a Mining Permit and Minerals For%more%informa.on,%please%%visit:% Agreement with Government of Guyana. WWW.STRONGHOLDMETALS.COM0 3%
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  STRONGHOLD METALS A GREATINVESTMENT PROPOSITION Existing shallow Current drilling program Very good Au grade, NI 43-101 compliant is adding inferred gold suitable for open-pit resource ounces every month* operation Soft-rock, saprolite Long term: huge Remodeled Agreement represents a low cost potential for hard rock with IAMGOLD to get to mineable resource on resource size and 95% ownership surface economics* Deposit is 5 km from Strong institutional Strong experienced main road to Capital shareholders management team City (IAMGOLD, Sprott, etc.) 4%
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  MANAGEMENT & DIRECTORS 288 YEARSOF RELEVANT EXPERIENCE - SUCCESSFUL TRACK RECORDS% Yannis Tsitos, President, CEO & Director : Physicist/geophysicist with 25 years experience in the mining industry. 19 years with BHP Billiton, the last 9 as senior business development manager global minerals exploration. Worked on exploration projects and business deals in 32 countries. Has identified, negotiated and executed in excess of 55 exploration, development and mining agreements and Joint Ventures. Important role in 2 major discoveries. Geoff Hampson, Chairman & Director : A private equity investor and businessman with 35 years experience in start ups, turn around situations and M&A. Has been involved in building and selling private and public companies in the mining, oil and gas, manufacturing, internet and medical fields. Has negotiated JV and acquisitions in Brazil, Eastern Europe, China and North America. Anne Casselman, Exploration & Country Manager, Guyana : Senior Geologist with more than 20 years experience in precious metal exploration (Newmont, Golden Star, Cambior, IAMGOLD) – Works on EM project for the last 6 years and has played a major role in its expansion and exploration success. Worked in several other countries. Art Freeze, P.Geo Director : 43 years of experience as an exploration and production geologist (Cominco, Pasminco, Echo Bay, Pan American Silver, Stillwater…). Currently a principal consultant to Goldcorp Inc. Paul McGuigan, P.Geo, Director : Geoscientist with 35 years experience in mineral exploration and mining operations including Pechiney, ESSO Minerals and others. Founder and Managing Director of Cambria Geosciences Inc. Luiz Bizzi, Director : Brazilian professional geologist and Certified Investment Analyst with over 27 years experience . PhD, MBA, and past exploration manager for South America for BHP Billiton. Dr Bizzi was also the Director of Geology and Mineral Resources at CPRM – the Brazilian Geological Survey and a Senior Consultant at the Brazilian Development Bank. Jim Heras, Director and Founder : 40 years of experience as a businessman and investor in numerous private and public ventures including several successful mining companies including St Phillips. Director of various companies in Canada. Claudio Gianascio, Director : 30 years experience as a Director and Financier of public and private companies around the world. Formerly with the Union Bank of Switzerland, Manufacturers Hanover (Suisse) S.A., and Chemical Bank (Suisse) S.A. Albert Wu, CFO : Over 35 years experience as CFO of several public medium size exploration and mining companies. . 5%
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  Guyana overview Miningin Guyana Guyana0–0poli:cal0and0economic0overview0 Successful0Mining0Projects0 "  Popula.on%of%744,700%(2010A)% 0Long%history%of%bauxite%and%gold%extrac.on% The$poli)cal$and$ "  GDP%of%US$2.2bn%(US$2,950%per%capita)% "  RUSAL0 economic$situa)on$ in$Guyana$has$been$ –  2010A%GDP%breakdown:% –  Formed%the%Bauxite%Company%of%Guyana%in%2004% persistently$stable$ with%the%Guyanese%government% –  Agriculture%24%,%Industry%(including%mining)% $ 24%,%Services%51%% –  Government%reduced%stake%to%10%%in%2006% The$government$ –  Gold%&%Bauxite%are%key%exports%from%Guyana% "  Omai0Bauxite0(currently0operated0by0Bosai)0 has$followed$a$ –  Real%GDP%growth%of%3.6%%(2010A),%3.3%%(2009A)% –  Developed%by%Cambior%(acquired%by%IAMGold%in% policy$of$economic$ 2006)%from%former%government%assets% liberaliza)on$and$ –  Unemployment%11%%(2007A)% promo)on$of$ –  Government%has%an%interven.onist%currency%policy,%%%%%%%%%%%%% –  Government%retained%30%%interest% foreign$investment$$ 1%USD%=%GYD%206%(July%2011)% –  Sold%in%2006%to%Bosai%Minerals,%a%Chinese%firm% –  Consumer%price%infla.on%6.8%%(2010A),%2.9%% –  Open3pit,%low%capital%requirements% (2009A)% "  Omai0Gold0 There$has$been$a$ long$history$of$ "  Independence%from%UK%in%1966% –  Joint%venture%between%Cambior%and%Golden%Star% successful$ –  First%free%and%fair%elec.ons%in%1992%returned% Resources% investment$in$the$ independence%leader%Cheddi%Jagan%of%the%People’s% –  Producing%mine%from%199332005% minerals$sector$in$ Progressive%Party%(“PPP”)%as%President% –  3.7%million%oz%gold%produced% Guyana$ –  The%PPP%has%been%in%power%ever%since% $ "  Extensive%gold%explora.on%by%junior%firms% % $ Guyana0–0Bri:shObased0Law0&0Robust0Mining0Law0 Source%CIA%World%Factbook,%U.S.%Department%of%State%–%Investment%Climate%Statement,%UNCTAD%Country%Profile$
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  DEPOSITS ARE DISCOVEREDBUT MINES ARE MADE Management%is%focused%on%understanding%the%geology%and%the%economics%of%the%project% which%translates%into%a%predictable%cash%margin%from%producing%gold%*%%%%%%%%%%%%% Summary of work conducted to date: Highly Strong supportive !  Advanced Exploration Project Mining00 !  Excellent Historical Database Geology0&0 Parameters0 Resources0 (depth,0mining0&00 !  Produce a Scoping and Economic (explora:on0seTng,0 Processing,0OPEX,00 Assessment Study in mid 2012, and grades,0tonnage)000 Production & CAPEX,0etc)0 subject to its results, a PreFeasibility Profitable Study in Q1 2013 Operation !  Drilling of approximately 35,000m (225 holes) already completed # 11,000 m in 2011 by Stronghold Metals Infrastructure0 # 25,000 m completed historically Community,0Environment0 before Stronghold Metals Government0 !  The known resource covers an area of Favorable 1.5 km x 2 km (300 hectares) 7%
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  EAGLE MOUNTAIN Au PROJECT GUYANA SOUTH AMERICA Video Clip !!! (please click your mouse to play, or check the clip at www.strongholdmetals.com) 8%
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  Project Acquired FromIAMGOLD Corp. Option & Joint Venture Agreement 1.  November02010:%Stronghold%enters%an%Agreement%with%IAMGOLD%with%an%op.on% to%acquire%100%%of%a%subsidiary%of%Omai%Gold%Mines%Ltd%(“OGML”)%which%owns% 95%%of%the%Eagle%Mountain%property%in%Guyana% 2.  Government%of%Guyana%owns%the%other%5%% 3.  IAMGOLD%became%the%shareholder%of%6%%of%Strongholds%shares% 4.  During%2011%Stronghold%spends%$4.1%million%on%Eagle%Mountain%% 5.  March02012:00Stronghold%earns%50%%of%OGML%by%issuing%7.5%million%shares%to% IAMGOLD% 6.  IAMGOLD%becomes%a%15.9%%shareholder%of%Stronghold% 7.  Stronghold%can%earn%100%%of%OGML%by%paying%IAMGOLD%$1%million%cash%or%an% equivalent%number%of%shares%–%at%the%op.on%of%Stronghold%.ll%April%2013.% 9%
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  What does thismean? MOVING BEYOND EXPLORATION TO RESOURCE EVALUATION •  The%Eagle%Mountain%Project%was%purchased%from%IAMGOLD%for%$15%per%compliant%ounce%(approx.)%% •  IAMGOLD%is%the%biggest%shareholder%of%Stronghold% •  2011%drilling%program%3%in3fill%and%step%out%Diamond%Drilled%Holes% •  Stronghold%has%enough%data%now%to%move%to%a%Scoping%Study%(Preliminary%Economic%Assessment% Report)%in%2012%to%verify%future%project%development%economics.% •  Mining%will%poten.ally%generate%non3dilu.ve%cash%flow%to%fund%further%explora.on%*% •  Mul.ple%opportuni.es%to%expand%resource%on%three%open%sides%of%known%deposit%and%at%Mowasi% 10%
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  EAGLE MOUNTAIN CURRENT RESOURCE FROMTHE GOLDEN STAR/CAMBIOR/IAMGOLD ERA !  Current drilling results cause Stronghold management to believe that an additional 300,000 to 500,000 of Inferred ounces can be defined by the higher density DDH program and that the “step out” drilling will expand the known deposit zone.* A certain amount of ounces will be moved to the Indicated category.* !  In 2009 IAMGOLD took bulk samples of both hard rock and saprolite from the three known types of mineralization for mineralogical and metallurgical testing at SGS Laboratories. !  Recoveries were 92% for Cyanidation of both the hard rock and the saprolite and >70% using only 2010 Inferred NI 43-101 resource starting from surface. gravity for the saprolite !! 733,500 ounces Au @ 1.27g/t (0.5 g/t cut-off) or 787,800 ounces Au @ 1.11 g/t (0.3 g/t cut-off)% AN UPDATED NI43-101 REPORT IS PLANNED FOR APRIL 2012 11%
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  Cross>sec)on$A$ EAGLE$ A$ MOUNTAIN$ PL$ 5$km$ Eagle$Mountain$Au$ Deposit$
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  RECENT AGREEMENT WITH MOWASIGOLD Highlights: 10 km !  Stronghold signed an Option Agreement with Mowasi Gold Corp (Oct 2011) Eagle !  Stronghold can earn up to 95% interest. Mountain PL (8,500 ha + additional rights of first refusal) !  History of artisanal mining of both the alluvial and the saprolite, indicating the possibility of hard rock mineralization Area Enclosing !  Exploration work commenced in Q1 Mowasi Gold’s 2012 EM Au Properties Deposit Eagle Mountain PL (5,050 ha - 50.5 km2) Artisanal Miners 13%
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  2011 EAGLE MOUNTAIN DRILLING PROGRAM HIGHLIGHTS: RESULTS INCLUDE: !  15,000 m DDH program commenced in May 2011 !  24.19 m at 9.1 g/t Au from 0.0 to 24.19 m depth in with a plan for 120 holes to a minimum depth of 150 EMD11-76 (Zion – infill) m !  22.85 m at 2.28 g/t Au from 1.5 to 24.35 m depth in !  78 holes completed for a total of 10,850 m EMD11-75 (Zion – infill) !  14.1 m at 1.82 g/t Au from 5.4 to 19.5 m depth in !  Program included Infill holes and Step out DDH’s EMD11-62 (Ounce – infill) !  Infill holes were at an increased density allowing for !  14.4 m at 1.40 g/t Au from 33 to 47.4 m depth in an increase in resource size and to be able to move EMD11-70 (Saddle – step-out) part of the geological resource from inferred to !  19.05 m at 3.13 g/t Au from 0 to 19.05 m depth in indicated. EMD11-83 (Bottle Bank – infill) !  The step holes expand the known mineralized zone. !  42.20 m at 0.97 g/t Au from 0 to 42.2 m depth in EMD11-77 (Zion – infill) !  Analytical results have been received from 46 holes !  7.80 m at 30 g/t Au from 36 to 43.8 m depth in with all but 2 returning gold mineralized intersections EMD11-85 (Bucket Shaft – infill) Announced Results have been EXCELLENT 44 of 46 holes announced to date intersected Au at good to excellent grades and widths 14%
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  TIMELINE 2012 –IMPORTANT MILESTONES Towards Development * in 2013 1.%CONCLUDE%DISCUSSIONS%ON% PERMITTING%AND%MINING%LICENCE% 1.%IAMGOLD%AMENDMENT% WITH%GGMC%–%SIGN%MINERAL% (DONE)% AGREEMENT%WITH%GOV%OF%GUYANA% 2.%COMPLETE%INTERPRETATION% 2.%DELIVER%PEA%/SCOPING%STUDIES% OF%2011%DATA%–%RECOMMENCE% (COMPLIANT)%(ON%SOFT3ROCK)% DRILLING%IN%MARCH% 3.%ADVANCE%MOWASI%INTO%DRILLING% 3.%UPDATED%NI433101%REPORT% TARGETS%PHASE% 4.%INTERNAL%SCOPING%STUDY% 4.%UPDATED%NI433101%(SOFT%&%HARD% ON%SOFT3ROCK%SAPROLITIC%ORE% ROCK)% 5.%QUOTES%ON%EXTERNAL% 5.%SCOPE%PROJECT%FINANCING%FOR% COMPLIANT%PEA%STUDY% DEVELOPMENT%OF%SOFT3ROCK%ORE% EXPLOITATION%% Q1#2012# ##Q2#2012# #####Q3#2012# Q4#2012# 1.%DISCUSSIONS%WITH%GGMC%&% MINISTRY%OF%MINES%ON%FUTURE% DEVELOPMENT%OF%EM/STRATEGY% 2.%COMMENCE%MINERALOGICAL%&% METALLURGICAL%TESTS% 3.%COMMENCE%ENVIRONMENTAL%BASE% STUDY% 4.%COMMENCE%EXTERNAL% Visible gold in the core ENGINEERING%ANALYSIS%&%PEA%STUDY% 5.%DRILL%OTHER%SIDE%OF%GRANITOID% WITHIN%EM%CONCESSION% 6.%ADVANCE%MOWASI%WORK% 15%
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  Scoping the Saprolite Au Resource inprogress… 16%
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  STRONGHOLD METALS CORPORATE FACTS Listings: TSX-V (Canada) Symbol: Z OTC QX (USA) Symbol: SDMTF Major Shareholders: Frankfurt (Ger.) Symbol: E9X -  Managers & Insiders: approx. 15% -  Sprott Gold & Precious Metals Fund: 8.5% Share Structure -  IAMGOLD: 6.0%(becomes 15.9% in Feb Issued : 65,701,290 2012) Warrants : 11,666,362 ($0.55, $0.75) -  CD Capital (London): 3.4% Options : 6,260,000 -  Total European Holders: 15-18% Fully Diluted Shares : 83,627,652 Recent Share Price : $0.22 (Feb 29th) Other Assets: Market Capitalization : $14.5 Million Debt : $Nil Compania Mineracao Do Sonhos, Brazil Recent Financing : July 2011 (at $0.40/share + (100%) -  Being spun off to a CPC which will, post ½ warrant at $0.55, exp. In July 2013) transaction, be controlled by Stronghold Nov 2010 (at $0.55/share + -  Asset being valued at approximately $4 Million ½ warrant at $0.75, exp. In June 2012) 17%
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  ENTERPRISE VALUE GROWTH PROFILE Enterprise Value (EV) per Minable Oz Increase Value through Resource Expansion $350-$450 Production per Au oz Feasibility $100-$150 Study per Au oz Pre-Feasibility Study Advanced Development $50-$75 Stage (Reserves) per Au oz Z Stronghold is at the advanced exploration stage moving towards pre-feasibility study stage* Discovery Increase Value with Project Advancement Note: EV/oz figures vary as gold price fluctuates. Indicated figures derived from major gold producers’ web data (eg. Barrick Gold, Newmont, etc…) 18%
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  SUMMARY VALUE PROPOSITION Our Objective: To become a mid-tier Au producer, thus seeking a near-future positive cash-flow position.* We offer: !  Strong Management and Board of Directors with tremendous experience. !  Aggressive exploration & development approach. Budget for the next 12 months expected to exceed $5.0 Million.* !  Advanced-stage Eagle Mountain Gold project in line to produce an Economic Assessment Report in mid-2012.* !  Eagle Mountain project open in all directions. Stronghold Metals has tremendous “Blue Sky” potential.* 19%
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  CONTACT US At Anytime Address : 1220 – 1066 West Hastings Street Vancouver, BC, V6E 3X1, Canada TEL : +1 604 806-0916 FAX : +1 604 806-0956 WEBSITE : www.strongholdmetals.com EMAIL : [email protected] Stronghold Metals% @StrongholdMtls% Investor Relations : Daniel Boase First Canadian Capital Corp. +1 866 580-8891 dboase@firstcanadiancapital.com 20%
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  THANK YOU SEEYOU SOON