Transcript Slide 1

TSX: AYX
|
Growing Gold Resources
in Namibia
MINEAfrica | Africa Investor Series | October 29, 2010
Growing Gold Resources in Namibia
Disclaimer/Forward Looking Statement
TSX: AYX
This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States federal securities laws.
Forward-looking information includes, but is not limited to: information with respect to the proposed business combination between Auryx Gold Corp. (the “Company”)
and Tova Ventures Inc.; the proposed subscription receipt financing transaction and acquisition of 92% of the Otjikoto Gold Project; the intended use of proceeds
from the proposed subscription receipt financing transaction; future exploration and development plans; the adequacy of the Company's financial resources, business
plans and strategy and other events or conditions that may occur in the future. Generally, forward-looking information can be identified by the use of forward-looking
terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not
anticipate", or "believes" or 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 is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level
of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including
risks associated with the exploration, development and mining industry such as economic factors as they effect exploration, future commodity prices, obtaining
financing, market conditions, changes in interest rates, actual results of current exploration activities, government regulation, political or economic developments,
environmental risks, insurance risks, capital expenditures, operating or technical difficulties in connection with development activities, personnel relations, the
speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources and reserves; contests over title to
properties, and changes in project parameters as plans continue to be refined. Forward-looking information is based on the reasonable assumptions, estimates,
analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other
factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.
Assumptions have been made regarding, among other things: the Company's ability to successfully complete the proposed business combination with Tova Ventures
Inc.; the proposed subscription receipt financing and acquisition of a 92% interest in the Otjikoto Gold Project; the timely receipt of any required approvals; the price of
gold; the ability of the Company to obtain qualified personnel; equipment and services in a timely and cost-efficient manner; the ability of the Company to operate in a
safe; efficient and effective manner; the ability of the Company to obtain financing on acceptable terms; the accuracy of the Company's resources estimates and
geological; operational and price assumptions on which these are based and the regulatory framework regarding environmental matters. Readers are cautioned that
the foregoing list is not exhaustive of all factors and assumptions which may have been used. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not
undertake to update any forward-looking information, except in accordance with applicable securities laws.
Investors are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral
resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
This presentation uses the terms “Measured”, “Indicated” and “Inferred” Mineral Resources. United States investors are advised that while such terms are recognized
and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great
amount of uncertainty as to their existence, and 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 rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic
studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral
Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
Growing Gold Resources in Namibia
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Company Highlights
TSX: AYX
AYX – A NEW GOLD COMPANY
 Listed July 2010
 Strong institutional support
 CAD 14.4 million in cash
NAMIBIA
 Stable democracy
 Mining friendly jurisdiction
 Sparsely populated
 Highly skilled professionals available
locally
Windhoek, Namibia
Growing Gold Resources in Namibia
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Project History
TSX: AYX
1999: Otjikoto was discovered by ARM’s
predecessor Avmin (100% owned)
2005: ARM spun Teal out retaining
65% ownership while 35% was listed on
the TSX
35%
65%
50%
50%
2009: Vale purchased 35% public float of
TEAL + an additional 15% from ARM
Sept 2009: Vale initiated process to
divest Otjikoto
Feb 2010: Auryx was named preferred
bidder for Otjikoto
8%
92%
June 2010: Auryx closed the
transaction to purchase 92% ownership
in Otjikoto for USD 28 million
2007: EVI purchased 8% ownership in
Otjikoto from Teal Minerals
Growing Gold Resources in Namibia
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Project Highlights
TSX: AYX
OTJIKOTO GOLD PROJECT
 Advanced-stage gold property
 1.2 Moz of indicated & 0.7 Moz of inferred
gold resources
 Excellent potential to expand resources
 USD 26 million spent historically & >76,000
m drilled
 Significant development work completed by
past operator
 Same age & tectonic environment to
Navachab, Anglogold’s operating mine in
the jurisdiction.
 Large concession: >240,000 Ha with an
additional 720,000 Ha in application
Namibia’s B1 National Highway
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Share Structure
TSX: AYX
Cash (in CAD)
$14.4 million
Common Shares Outstanding
127,122,680
Fully Diluted
144,135,245
Agent Options Outstanding*
7,015,065
Options Outstanding**
9,997,500
Insider Ownership
~12%
Institutional Ownership
~80%
*Exercisable at $0.50 24 months from the closing of Auryx’s financing
**Auryx has a 10% rolling option plan
Information current as at October 19, 2010
Growing Gold Resources in Namibia
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Management & Directors
TSX: AYX
MANAGEMENT & EXECUTIVE DIRECTORS
NON-EXECUTIVE DIRECTORS
TIM SEARCY– President
Over 15 years of experience in the mining business
BONGANI MTSHISI– Chairman
Currently President of BSC Mining – a private, South
African exploration and development company
Former President, CEO & Founder of Luna Gold Corp and
former VP, Business Development & Founder of Nautilus
Minerals Inc.
Mining Engineer and formerly with Anglo Platinum,
Debeers/HUF Joint venture, and Sub Nigel Gold
HEYE DAUN– President, Africa & Operations
Qualified mining engineer with extensive mine building and
finance experience
GEORGE PIRIE
Former President & CEO of Breakwater Resources and
former President & CEO of Placer Dome (Canada) Ltd.
Former Mine Superintendent at AngloGold’s Sadiola & Yatela
Mines and a former Mine Manager at Gold Field’s Tarkwa
mine in West Africa
Over 25 years in all facets of the mining industry, including
finance, operations, exploration, and development
Engaged in mining project finance and fund management in
Africa and currently a partner with South Africa’s Bright Group
ALAN FRIEDMAN–VP, Corp. Development
South African qualified attorney
Extensive experience in the acquisition of various assets,
financings, and go-public transactions for client companies
Currently a director and co-founder of Adira Energy Ltd, Tova
Ventures Inc and Rivonia Capital Inc. He is a director of the
Canada-South Africa Chamber of Business
Growing Gold Resources in Namibia
TONY HARWOOD
Johannesburg based junior mining executive and director,
with 25+ years in exploration
Spent 8 years as VP of Generative Exploration in Africa and
Asia for Placer Dome. Dr. Harwood previously lectured at
Universities in South Africa and the UK
DAVID HODGSON
Employed by the Anglo American and De Beers group of
companies for over 30 years
Served as the Chief Operating Officer of Anglogold Ashanti
from November 2001 through to his retirement in April 2005
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Namibia:
A Premier Mining Jurisdiction
TSX: AYX
STABLE, MINING FRIENDLY
 Mining >8% of GDP, >50% of forex earnings
 Sparsely populated with highly skilled professionals
available locally
 Stable democratic government, economy, legal and
mineral title regime
 Political and social support of mining with stated
ambitions to develop mineral resources
 Significant mining operations include:
Navachab (AngloGold)
Trekkopje (Areva)
Rössing (Rio 69%)
NamDeb (De Beers 50%)
Langer-Heinrich (Paladin)
EXCELLENT INFRASTRUCTURE
 Project area is linked by highways and railways to
Namibia’s port of Walvis Bay
 National highway, railway, high voltage (33, 66, 220,
& 400 kV) overhead grid power, and water supply in
nearby vicinity of project
 Located between 2 fully serviced local towns, no
need for mine village construction
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Otjikoto Land Package
TSX: AYX
LOCATED WITHIN A HIGHLY
PROSPECTIVE GOLD DISTRICT
 License Granted: >240,000 Ha;
 Current Applications: ~720,000 Ha
FIRST WORLD INFRASTRUCTURE
 3 km from a paved national
highway “B1”
 3 km from railhead
 15 km from a power grid “right-ofway”
 ~30 km from a water grid tie in
 Significant aquifer on site
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SRK 43-101 Mineral Resources
TSX: AYX
 NI 43-101 resource estimate by SRK (August, 2009):
 Indicated resource of 28.4 Mt @ 1.34 g/t Au
(1.2 Moz contained Au)
 Inferred resource of 17.2 Mt @ 1.28 g/t Au
(0.7 Moz contained Au)
Ore Type
Classification
kT
Au
(g/t)
Oxide
Indicated
2,941
1.36
129
182
1.13
6
Indicated
25,474
1.33
1,093
Inferred
16,989
1.29
702
Indicated
28,415
1.34
1,222
Inferred
17,170
1.28
708
Inferred
Fresh
Total
koz
0.4 g/t cut-off and capped at 15 g/t
Note: Auryx Gold has retained an external 43-101 compliant resource estimation specialist
(Peter Bloy of BMRE), who is a recognized expert in modeling coarse gold mineralization.
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Cross Section – Line 7000N
TSX: AYX
Growing Gold Resources in Namibia
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Long Section
TSX: AYX
High-Grade Structure at Otjikoto– high potential exists to continue hitting parallel structures
with more step out drilling
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Genesis of the Damara Belt
TSX: AYX
 The Damara Orogenic belt represents the
remnants of a failed continental rift from
the late Proterozoic
1) Rift opens
2) Fills with clastic sediments, shallow marine
sediments, MOR volcanism commences
3) Rift fails and closes
a) Kalahari craton collides with the
Congo craton
b) Deep seated fractures are created
(020)
c) Increase temperature and pressure,
generates partial melts and
squeezes fluids out of the sediments
d) These fluids migrate through the
recently created fractures, dropping
their mineralization in favourable
horizons
Growing Gold Resources in Namibia
Otjikoto
Navachab
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Comparable Deposits to Otjikoto
TSX: AYX
AURYX
ROMARCO
ANGLOGOLD
Otjikoto
Namibia
Haile*
South Carolina, USA
Navachab
Namibia
~240,000
1190
>76,000
1999
>169,000
2008 (1768)
1984
Host Rock
Metasedimentary
Metasedimentary - Metavolcanic
Metasedimentary
Alteration
Albite w lesser amphibolite-chlorite
Silicification
Veining
Po, Py, Mag, Qtz, Carb, Grt Amph
Qtz, Py, Po
Fe-Amph, Qtz, Cpx, Grt, Po, Cpy, Py
Amphibolite
530 - 490
closing of continential rift
Greenschist
550 - 530
accretionary island arc
Greenschist - Amphibolite
~510
closing of continential rift
Deposit
Location
Background Size of Concession
Information (ha)
Metres Drilled to Date
Discovery
Geology
Metamorphism
Age (in millions)
Tectonic Environment
Fluid Source
Road
Infrastructure Power
Water
Measured
Indicated
Resource
Inferred
(Moz)
Reserve
Average Grade
Recovery (%)
Metallurgy
Production
Method
Strip Ratio
Production Rate (oz/yr)
deep seated
deep seated
deep seated
Paved Highway - B1
grid
grid and groundwater
1.2
0.7
-
Paved Highway - 601
grid
Potable water lines
1.47
0.697
2
1.3
Paved Highway - B2
grid
piped in (water grid)
0.33
2.51
1.49
1.34
1.3 g/t
1.3 g/t
1.1 g/t
mid 90's
80
100+
milling, gravity, flotation, & cyanidation of
concentrates
milling, flotation, & cyanidation of
concentrate
milling & CIP
~4.5:1
~5:1
6.2:1
-
-
68,000
*Haile 43-101 Technical Report by Gustavson Associates, LL December 3, 2009
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Potential for Upside at Otjikoto
TSX: AYX
 Otjikoto occurs at the northern
end of a long and intensive
alteration system
 Only one of the first ten holes at
Otjikoto hit economic
mineralization
10 km long alteration zone
Growing Gold Resources in Namibia
 7 holes have been drilled in the 7
km of strike south of Otjikoto, and
one hit gold mineralization, 1.5m
of 0.8 g/t Au, within an envelope
of albitite alteration
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2010-2011 Drill Targets
TSX: AYX
 Mineralization occurs in “shoots” on
three different levels
 Some zones have not been fully
tested down or up-shoot
 Potential for the discovery of new,
parallel shoots still exists
 Mineralized calcrete has not been
modeled in the resource
 Hole OT96, 200m E of the “pit”, hit
8m of 1.2 g/t Au
 Hole WHD 91, 600m N of the “pit” hit
9m of 0.8 g/t Au
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Metallurgical Test Work
TSX: AYX
 Rock Hardness
 Oxides: Very soft Bond Ball Work Index of 6.5 kWh/t
 Sulfides: Moderately soft to hard Bond Ball Work Index
of 11.4 kWh/t
 Coarse, Visible Gold
 50 grains found >500 µm
 40% >106 µm
 Gravity and Leaching
 Knelson
Oxide: 80 – 85% recovery with a 1 – 5% mass pull
Sulfide: 80 – 85% recovery with a 1 – 5% mass pull
 Falcon
Oxide: 70 – 80% recovery with a 20% mass pull
Sulfide: 80 – 90% recovery with a 20% mass pull
 Intensive Leaching – 97% leach in 6 hours
 Gold Only Flotation
 Oxide: 85% recovery with a 1-4% mass pull
 Sulfide: 90 – 95% recovery with a 3 – 8% mass pull
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Technical Work Completed
TSX: AYX







Metallurgical Testwork (Mintek)
Process Route identified (Mintek & Gecko Systems)
Geotechnical studies & slope design (SRK)
Scoping study updated (Aug 2009: GRD Minproc & Minxcon)
Geohydrological studies
ESIA close to completion, first Public Participation Meeting conducted
Further project development dependent on “right-sizing”
 Completed
 Completed
 Completed
 Completed
On-going
On-going
On-going
Going Forward – Focus of the Next 12 Months
 New Resource Re-estimate – Q1 2011
 Exploration Program – 15,000 m of DD and 10,000 m of RC drilling
 Development work to focus on ESIA and Geohydrology
Growing Gold Resources in Namibia
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THANK YOU!
TSX: AYX
Tim Searcy
President & Director
Elina Chow
Investor Relations Manager
120 Adelaide Street West
Suite 1204
Toronto, Ontario
M5H 1T1 Canada
+1 (416) 361 2213 (office)
+1 (416) 400-0149 (mobile)
+1 (416) 361 6455 (fax)
[email protected]
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