gbu pres june2013
TRANSCRIPT
The Rosia Montana Gold & Silver Project:
A Project for Romania
June 2013
2
Legal Notice
The summary information contained herein has been provided by Gabriel Resources Limited (the “Company”) in respect of its interest in the Rosia Montana Gold and Silver
Project (the “Rosia Montana Project” or “Project”). The Project is wholly owned by the Company’s subsidiary Rosia Montana Gold Corporation S.A. (“RMGC”) in which the
Company owns an 80.69% equity interest.
No representation or warranty, express or implied, as to the accuracy, completeness or fairness of the information or opinions contained herein is made or given by the
Company, its subsidiary companies, including RMGC or their respective officers, directors or employees and no responsibility or liability is accepted by any person for such
information or opinions. In all cases, recipients should conduct their own investigation and analysis of the Company and its interest in the Project. The contents of this
presentation are not to be construed as investment, legal, financial or tax advice.
In furnishing this presentation, the Company does not undertake or agree to any obligation to provide you with access to any additional information or to update you or this
presentation or to correct any inaccuracies in, or omissions from, this presentation that may become apparent. Except as otherwise indicated, the information contained herein
is as of June 2013.
The information is neither an offer to sell nor a solicitation of an offer to buy any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act
as an inducement to enter into, any contract or commitment whatsoever. The contents of this presentation are being provided to you solely for your information and must not be
copied, published, reproduced, distributed in whole or in part to others at any time by recipients. Any failure to comply with this restriction may constitute a violation of securities
laws.
The information contained herein contains forward-looking statements relating to the Company and/or the Project that are based on management’s current expectations,
estimates and projections. Such statements may reference timelines, economic impact, job creation, costs estimates, future ability to finance the Project, patrimony plans,
technical specification and Project delivery and other statements that express management's expectations or estimates regarding the timing of completion of various aspects of
the Projects’ development or of future performance.
The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", “projects”, "may", "will", "schedule", “potential”, and similar
expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered
reasonable by management, are inherently subject to significant procedural, legal, business, economic and competitive uncertainties and contingencies.
This presentation includes many such forward-looking statements which are subject to known and unknown risks, uncertainties and other factors which are difficult to predict
and that may cause the actual outcomes, level of activity, financial results, performance or achievements to differ materially from those expressed or implied by the forward-
looking statements, which are not guarantees of future performance.
These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of precious metals; fluctuations in exchange rates; legislative, political
or economic developments including changes to mining and other relevant legislation in Romania; geopolitical uncertainty, uncertain legal enforcement; changes in, and the
effects of, the government policies affecting the Company's and/or RMGC’s operations; uncertainties related to timelines for awaited approvals; changes in general economic
conditions, and the financial markets; operating or technical difficulties in connection with exploration, development or mining; environmental risks; the risks of diminishing
quantities or grades of reserves; and the Company’s requirements for substantial additional funding.
Certain scientific and technical information contained in this presentation is extracted or derived from the Company’s “Technical Report on the Rosia Montana Gold and Silver
Project Transylvania, Romania” with an effective date of October 1, 2012 (the “2012 Technical Report”), which is filed under the Company’s SEDAR profile. SRK Consulting
(UK) Ltd (“SRK”), the author of the 2012 Technical Report, considers the Mineral Reserve and Mineral Resource statements made in the 2012 Technical Report to be in
accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines (CIM
Standards).
All forward-looking and other statements made in respect of this presentation are expressly qualified in their entirety by this cautionary statement.
3
Contents
Gabriel Resources – Overview
The Rosia Montana Project – Deposit and Mine Plan
Additional Properties – Organic Growth Opportunities
Political & Permitting Overview
The Project Impact in Romania
Summary
4
Investment Highlights
World class asset:
One of the most significant gold deposits outside the
ownership of a “major” mining company;
Measured & Indicated Resource – 17.1M oz Au (+1.4M
Inferred), 81.1M oz Ag1 (Using cut off grade of 0.4g/t Au)
Proven & Probable Reserve - 10.1M oz Au, 47.6M oz Ag1
(Using US$400/oz Au pit shells)
Will be one of Europe’s largest gold mines; permitting
process to be completed
Lowest quartile cash cost anticipated
Potential for Growth:
No resource definition drilling since 2005
Additional exploration properties at Bucium Rodu Frasin
(Au-Ag) and Bucium Tarnita (Cu-Au)
Potential to expand a major mining district
No debt, cash in bank:
$67.1 million in cash as at March 31, 2013
Monthly cash burn $2-4 million per month
(1) Taken from the 2012 Technical Report
5
Corporate Structure1,2
Gabriel Resources Romanian Government
Rosia Montana Gold Corporation (RMGC)
Rosia Montana Project
(1) Corporate structure shown excludes intermediate companies (2) The shareholding structure of RMGC has been under discussion with Romanian Government together with the 4% state royalty
Gabriel owns the Rosia Montana Project through its subsidiary, Rosia Montana Gold Corporation S.A. (RMGC),
a Romanian Company in which Gabriel holds an 80.69% stake. The balance is held by CNCAF Minvest S.A., a
Romanian state-owned mining enterprise
Gabriel is working with the Romanian Government to permit and build one of the most modern mines in Europe
80.69% 19.31%
100%
6
Capitalization1
Key information
Share Price $1.36
52 Week High/Low $2.94 / $1.21
Average Daily Trading Vol. (3 months) ~840,000 shares
Ticker GBU.TO
Market TSX
Market Cap $524 million
Shares Outstanding 384 million
Options (incl. DSUs & RSUs) 27 million
Filly Diluted Shares Outstanding
411 million
Cash (as at March 31, 2013) $67.1 million
Debt $0
Paulson & Co 16%
Electrum Global Holdings 16%
BSG Capital 16%
Newmont 13%
Baupost Group 13%
Free-float 26%
Major shareholders
Share price evolution – 12 months
(1) Information provided as at June 14, 2013 unless stated otherwise, and provided in Canadian Dollars
7
Contents
Gabriel Resources – Overview
The Rosia Montana Project – Deposit and Mine Plan
Additional Properties – Organic Growth Opportunities
Political & Permitting Overview
The Project Impact in Romania
Summary
8
Rosia Montana Project – Resources and Reserves1
Resources Tonnes
(Mt)
Au
(g/t)
Ag
(g/t)
Contained Au
M oz
Contained Ag
M oz
Measured 171.5 1.32 8 7.26 43.16
Indicated 341.2 0.90 3 9.89 37.96
Measured & Indicated 512.7 1.04 5 17.14 81.12
Inferred 44.8 0.98 3 1.42 4.10
Resources at 0.4g/t Au cut-off
Reserves at US$735/oz Au
US$10.5/oz Ag
Reserves Tonnes
(Mt)
Au
(g/t)
Ag
(g/t)
Contained Au
M oz
Contained Ag
M oz
Proven 112.5 1.63 9.01 5.9 32.6
Probable 102.5 1.27 4.55 4.2 15.0
TOTAL 214.9 1.46 6.88 10.1 47.6
(1) Taken from the 2012 Technical Report, Reserves contained within Resources
9
Carnic Cetate
Orlea
Jig
Rosia Montana Project – Reserve Model
Average content of
reserves block (g/t)
10
Rosia Montana Project – Perspective
Carnic Pit
Cetate Pit
Jig Pit
Orlea Pit
Plant Site
Carnic Waste Dump
Rosia Montana
Protected Area
LGS
Tailings Dam
11
Rosia Montana Project – Mine Layout
The Project consists of 4
open pits, one TMF, two
waste stockpile areas, a
processing plant and
other associated facilities
Compact and efficient
design to minimize
environmental impact
Total surface area 1,257
ha, approximately 7km in
length
12
Project Key Facts
Open pit truck and shovel mining process – 1.2:1 waste:ore strip ratio
Conventional CIL processing (closed circuit) – 14Mtpa design
16 year operating mine life
Old mining district; good infrastructure and access to educated mining talent
Access to grid power supplied from
existing 110kV transmission line
currently passing through the Project
site
Readily available water supply from
local river
Direct road and nearby rail access
Royalty currently 4%
Corporate tax rate 16%
13
Commissioned to reflect current CapEx and OpEx status of the Project
Undertaken by SRK Consulting (UK) Limited
Mineral Resource updated using a cut off grade of 0.4g/t; 2009 Resource was stated
using 0.6g/t cut off grade
No changes to the scope or scale of Project: no change to Mineral Reserve, still using
US$400/oz Au pit shell
Conservative input price assumptions for key consumables
Base case metal price assumptions:
• US$1,200/oz Au
• US$20/oz Ag
2012 NI 43-101 – Highlights of the Update
14
Estimated Production Profile1
Cetate 25%
Carnic 52%
Jig 3%
Orlea 20%
Production by Pit
Pro
du
ctio
n o
zs (
in 0
00
’s)
Year Pit Mined
1-4 Cetate, Carnic
5-6 Carnic
7-8 Carnic, Orlea
9 Cetate, Carnic, Orlea, Jig
10-11 Cetate, Orlea, Jig
12 Cetate, Orlea
13+ Cetate
Year of Mine Life
Annual Gold Production
Annual Silver Production
Pro
du
ctio
n o
zs (
in 0
00
’s)
Year of Mine Life
(1) Taken from the 2012 Technical Report
0
100
200
300
400
500
600
700
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 Yr16
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 Yr16
15
Cost Structure Estimates1
Initial Capital + Sustaining Capital = Total Capital
US$1.40 billion US$571 million US$1.97 billion
(1) Taken from the 2012 Technical Report. Operating costs have been estimated in accordance with standard industry practices and are valid as at the third quarter of 2012 (2) All figures in US Dollars and royalty based on 4%
Capital Costs:
Mining $102
Processing $263
G&A $52
Freight/Refining $3
Royalty $51
Silver Credit ($72)
LOM Cash
Costs2 of
US$399/oz
Mining $3.67
Processing $9.48
G&A $1.87
Other $1.95
Total Cost2 per Tonne of US$16.97
Operating Costs:
16
Project Economics
Description Units 2012 2009
Gold price (US$/oz) 1,200 750
Silver price (US$/oz) 20 10.5
Life of Mine Cash cost (US$/oz) 399 335
Pre-production capital (US$m) 1,400 876
Sustaining capital (US$m) 571 366
Closure cost (US$m) 146 128
Undiscounted cashflow after tax (US$m) 3,606 1,662
NPV after tax (5% discount rate1) (US$m) 1,836 997
IRR after tax % 19.6 20.4
Payback Years 3.3 3.5
(1) A 5% discount rate was used in the March 2009 43-101 Technical Report. The Base Case discount rate used in the 2012 Technical Report is 10%.
17
Gabriel Benchmarking
3.9 3.4 2.8 1.6
80.1
28.720.6 19.8 16.4
13.19.0 8.9 8.4 8.2 7.2 7.1 6.6 5.4 5.4 5.1 4.8 4.6
0
15.0
30.0
45.0
60.0
75.0
90.0
Se
ab
rid
ge
No
va
go
ld
Int. T
ow
er
Hill
Ch
esa
pe
ake
Ga
bri
el
Pre
tiu
m
Ca
rpa
thia
n
Gu
ya
na
Ra
iny R
ive
r
Pre
mie
r
Be
lo S
un
Mid
as
Sa
bin
a
To
rex
Co
ntin
en
tal
Ore
zo
ne
Ro
ma
rco
Asa
nko
Lyd
ian
Pa
pillo
n
Ru
bic
on
Au
reu
s
Mo
z
3.5 2.8 2.6 2.2 2.0 0.8 0.84.04.1
7.3
8.118.519.7
44.7
0
10.0
20.0
30.0
40.0
50.0
Se
ab
rid
ge
No
va
go
ld
Ch
esa
pe
ake
Ga
bri
el
Pre
tiu
m
To
rex
Ra
iny R
ive
r
Gu
ya
na
Be
lo S
un
Asa
nko
Lyd
ian
Ro
ma
rco
Ca
rpa
thia
n
Au
reu
s
Mo
z
(1) Reserves include total Proven and Probable inventory of Au (2) Resources are inclusive of Reserves (3) Represents Brucejack – High Grade Resources only
Developers’ Attributable Total Resources(2)
Developers’ Attributable Reserves(1)
g/t Au 0.62 1.18 0.50 1.46 12.01 2.61 1.08 2.74 1.48 1.13 0.75 2.06 1.24 3.27
g/t Au 0.59 0.96 0.54 0.49 1.05 13.40 0.61 2.94 1.04 2.67 1.76 1.65 6.42 2.62 9.84 1.08 1.65 1.73 1.00 2.37 0.59 0.96
(3)
Source: Company filings and RBC Capital Markets, June 14, 2013
(3)
18
10 Year Industry Average Cash Costs vs Gold Price1
180 224 253 271 317 395
467 478 557
643 738
55 53
60 68 84
99
118 139
166
166
190
235 277
313 339 401
494
585 617
723
809
928
-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
US
$/o
z
Operating Cash Cost Depreciation and Amortization Avg. Annual Gold Price
Average 2012
Production Margin:
$740/oz
Rosia Montana
LOM Cash Cost:
$399/oz
(1) Source RBC Capital Markets
19
4 Year Industry Average All-In Sustaining Costs vs Gold Price1
462 537
611 699
16
20
32
39
239
300
400
473
717
857
1,043
1,211
-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2009 2010 2011 2012
US
$/o
z
Mine Site Cash Cost Smelting, Refining, Royalties
D&A, Corp. G&A, Int. Exp., Sust. Capex Avg. Annual Gold Price
Average 2012
All-In Margin:
$457/oz
Rosia Montana LOM
Average All-In Cash Cost:
$653/oz
Rosia Montana
LOM Cash Cost:
$399/oz
(1) Source RBC Capital Markets
20
Contents
Gabriel Resources – Overview
The Rosia Montana Project – Deposit and Mine Plan
Additional Properties – Organic Growth Opportunities
Political & Permitting Overview
The Project Impact in Romania
Summary
21
Rosia Montana – A Mining District
Rosia Poieni: A state owned working mine Rosia Montana: Historical workings at
the Cetate pit
22
Organic Growth Opportunities – Additional Properties
Rosia Montana
Rosia Poieni
Bucium Rodu-Frasin
Bucium Tarnita
Bucium Rodu Frasin – Resource Estimate
Category Tonnage
(Mt)
Grade
Au
(g/t)
Grade
Ag
(g/t)
Contained
Au (oz)
Contained
Ag (oz)
Indicated 7.9 1.92 5 491,000 1,385,000
Inferred 35.4 1.16 3 1,320,000 3,271,000
Bucium Rodu-Frasin1:
Gold and silver low sulphidation epithermal system
Dominantly disseminated with associated stockworks and
breccias, veins
• Block size 40mE x 40mN x 10mRL
• Ordinary Kriging
• 0.6 g/t Au cut off
Bucium Tarnita:
A copper/gold porphyry deposit covering a surface area
of 700m x 700m
Potential to host large tonnage deposit - Untested at
depth
Resource estimate not yet published by the Company
(1) Certain scientific and technical information contained in this slide is extracted or derived from the RSG Global report dated November 2004 (“Bucium Technical Report”), which is f
filed under the Company’s SEDAR profile. The Mineral Resource Estimates reported therein have been estimated by Julian Verbeek, MAusIMM, of RSG Global in accordance with
the Canadian Institute of Mining, Metallurgy and Petroleum’s standards and definitions and are dated as of November 2004.
23
Contents
Gabriel Resources – Overview
The Rosia Montana Project – Deposit and Mine Plan
Additional Properties – Organic Growth Opportunities
Political & Permitting Overview
The Project Impact in Romania
Summary
24
Romania Rosia Montana
2,000 years of mining history with reports of up
to 50 million ounces of gold produced, together
with significant silver and copper
In the 5 years leading to EU accession in 2007,
in excess of 500 mines were closed, with over
200,000 jobs lost
Romania is in the European Union;
governed by EU rules and regulations
Coalition Government
(PSD/PNL) returned to power in
December 2012 General
Election
With the current GDP per
capita among the lowest in
the EU, the Romanian
government may look to
harness the potential of its
natural resources
Educated and skilled
workforce
Located in a highly prospective mining district
Rosia Montana has been mined for 2,000 years
and most recently by the state until 2006
Unemployment in the Rosia Montana region is
approximately 65% - RMGC employment has
brought this number down from over 90%
The Project will assist in the clean-up of pollution
from years of unregulated mining in the Rosia
Montana region
Designed to comply with
Romanian laws and EU
directives
Key infrastructure already in
place
Long-lead time equipment
already purchased and
stored in warehouses
• SAG mill
• 2 x Ball mills
• Crusher
25
Romanian Parliament structure – 412 deputies, 176 senators
PSD leading Parliamentary party has a total of 223 seats. The USL coalition, plus Minorities have 417 seats.
The Opposition has 153 seats.
64
50
8
23 20
9
1 1
0
10
20
30
40
50
60
70
PSD PNL PC PD-L PP-DD UDMR Independents Vacancy
Senators mandates
PSD PNL PC PD-L PP-DD UDMR Independents Vacancy
159
101
17 18
4934
18 13
10
20
40
60
80
100
120
140
160
PSD PNL PC Ethnic
Minorities
PD-L PP-DD UDMR Independents Vacancy
Deputies mandates
PSD PNL PC Ethnic Minorities PD-L PP-DD UDMR Independents Vacancy
26
Romanian Government structure and Ministries
27
Permitting Process The Rosia Montana Project with annual production of >5M tonnes is deemed a project of “national interest” and as such has
to be permitted at the National level
Progress:
Q3 2010 – resumption of the Technical Analysis Committee (TAC) review of the Environmental Impact Assessment (EIA)
2011 – received Environmental Approval of the PUZ for the Industrial Project and Archaeological Discharge Certificate for
Carnic (ADC #4)
2011 – TAC visits Project, TAC concludes all technical matters completed; await process confirmation
X 2012 – austerity protests; changes to Government; local council elections; presidential impeachment; general elections
Q4 2012 – Local referendum held: “Do you agree with the resumption of mining in the Apuseni Mountain region and
specifically at the Rosia Montana Project?” - 62.5% voted in favour
Q4 2012 – National elections held; landslide victory for USL providing a stable platform for government not seen in years
Engagement with USL government to finalize permitting process; further TAC Meetings May 10th and 31st, 2013
Next Steps:
Completion of TAC → cabinet approval of EIA → issuance of Environmental Permit → ratification by Parliament
Completion of PUZ for the Industrial Project Area and Historical Area
Once the Environmental Permit is obtained from the Romanian Government, and the PUZ are approved, in the absence
of any other extraordinary events (legal or otherwise) it would take approximately one year to:
• Complete the majority of outstanding surface rights acquisitions
• Receive the majority of other permits and approvals, including initial construction permits
• Finalise the project build details and advance financing for the project
Following this, construction is estimated to take approximately 30 months
28
Romanian Political Overview
2007 - 2009 2010 2011 2012 2013 2014 2015 2016
Electoral years Non-electoral years
May ’07
Presidential
impeachment
Jun ’08
Local Elections
Nov ‘08
National Elections
Romanian Parliament
Dec ’09
Presidential
Elections
Dec ‘12
National Elections
Romanian Parliament
End ’16
National Elections
Romanian Parliament
End ’14
Presidential
Elections
Jun ’12
Local Elections Mid ’16
Local Elections
29
USL Government – Recent Media Statements Minister Delegate of Large Projects, Dan Sova:
“All what I can say now is that a political decision will be taken within the next two or three months, if it (the Project) would be
implemented, or not” 1
Prime Minister, Victor Ponta:
“If all environmental standards are complied with, if the Romanian state gets a much higher interest and if we collect royalties at
European level, if the Romanian Parliament will decide, not only about that case, but also in the case of all mining exploitations,
reopening of mines, creation of jobs, investments in the environment and so on, revenues to the budget, I think I will keep my promise
to the people – we create jobs, we preserve the environment and we obtain more money – this is what I want to do.” 2
Minister of Environment, Rovana Plumb:
“Any authorization of an investment requires an integrated environmental approval from the environment authorities. An integrated
environmental approval cannot be approved, cannot be adopted without political debates. The Government will work transparently, but I
repeat, in the form I took it over last year, the Project cannot be sustained. If the additional guarantees related to the environmental
risks are observed, if the requirements regarding the benefits for Romania are met and if a new sustainable project is proposed, then
we will discuss. Until then, the Government has made no decision.” 3
Minister of Culture, Daniel Barbu:
“Looking at the whole political-technical debate on cyanides, jobs, and I look at the monuments... What do I see? That, in a locality of
300 houses, half have been restored on the money paid by the company...The underground; I have seen restored Roman galleries,
including wooden devices recovered from the times of the Romans. The Romanian State has never had the necessary money to
restore these. I say that from what I read on paper, I repeat; in addition I also read the opinions of both sides. I have seen a team of
archaeologists led by a French woman – who I understand is an authority in the field – who preserved these galleries, some can be
even visited, there is a museum with mining equipment used throughout time. What I see on paper does not seem discouraging in
terms of heritage valorization.” 4
Government of Romania:
The Official Gazette Reported: “The establishment of the new company is motivated by the Government by claiming that the project
operating in Rosia Montana can generate operating revenues and direct contributions for the state budget estimated at several billion
dollars, and can also be a major contributor to the recovery of the mining industry Romania and the creation of a significant number of
jobs in an area, an area concerned by major unemployment.” 5
(1) Antena 3, March 16, 2013 (2) Antena 3, May 7, 2013 (3) Antena 3, May 18, 2013 (4) Interview, May 13, 2013 (5) Official Gazette, May 29, 2013
30
60% of total
surface
already
secured
To date RMGC has secured 757ha of
land, amounting to 60% the total
surface area required for Project
construction – this includes 78% of the
number of homes in the Project footprint
Surface Rights Status
61%
belongs to
residential
owners
39% are
institutional
properties
Of the total remaining surface to be
acquired, 39% (196ha) are institutional
properties
The remaining 304ha (61%) of the total
surface to be acquired belongs to
private owners
A total of 155 households located
under the Project footprint are still to be
relocated
Once the Environmental Permit is granted the Company will resume the surface rights acquisition process; the acquisition
programme ceased soon after the 2007 permitting process was put on hold
Project
Objective:
Secure 100% of
the surface rights
and hand over to
the construction
team 40% of total
surface still
to be secured
Resettlement to Date:
125 families opted for resettlement in the Recea neighbourhood at Alba Iulia – a
location chosen by the community and built by RMGC
Construction began in 2006 and was completed in 2010
Resettlement and community support is an ongoing commitment of the
Company
Land is available and in possession for expansion of up to 80 additional houses
for those opting for resettlement
31
Contents
Gabriel Resources – Overview
The Rosia Montana Project – Deposit and Mine Plan
Additional Properties – Organic Growth Opportunities
Political & Permitting Overview
The Project Impact in Romania
Summary
32
Today The vision
Economy High unemployment / poverty rate
Lack of opportunities for businesses
Harsh macroeconomic conditions
>3,000 in direct jobs over the Project’s lifetime
Opportunities for local businesses
>$24 billion(1) in total contribution to Romania’s GDP
Environment
Current pollution
Acid waters; heavy metal
contamination in local water system
Abandoned open pits
Soil contamination
Acid waters are cleaned by operation
Pits are closed and planted or transformed into lakes
Pilot water treatment plant currently operating
Establishment of a $146 million financial guarantee for
closure, environmental restoration and post-closure
monitoring
Patrimony
Most Roman galleries not accessible
Limited historical monuments exhibited
Cultural heritage houses in
advanced degradation, no government
money to preserve
Allocation of significant expenditure for the
conservation of heritage
Many Roman galleries restored and open for visitors
Restoration of historical town center; most historical
houses renovated and used for sustainable
development programs
Community Young leaving the area in search of a
better life
Poverty affects social cohesion
Community life and traditions are restored
Sustainable development strategies ( professional
reconversions, business plans for post mining
activities)
OVERALL Impoverished community with no real
alternative
SOLUTION - Prosperity, growth, clean environment,
tourist destination, cultural heritage rehabilitated.
A long term future for Rosia Montana
Rosia Montana Project Benefits: Summary
(1) At a gold price of USD $1,200/oz
33
Contents
Gabriel Resources – Overview
The Rosia Montana Project – Deposit and Mine Plan
Additional Properties – Organic Growth Opportunities
Political & Permitting Overview
The Rosia Montana Project – Impact in Romania
Summary
34
Summary
Bringing one of the world’s largest
undeveloped gold projects to production
Rosia Montana will become one of
Europe’s largest gold mines
Production profile of c.500,0001 oz Au per
annum at lowest quartile cash costs
Project economics robust at current
gold/silver prices - >US$0.5 billion free
cash flow generated per annum with a
substantial reinvestment into the
Romanian economy
>US$24 billion2 direct and indirect
potential impact from the Project on the
Romanian economy at current gold prices
Continual efforts to rehabilitate the
historical center of Rosia Montana
Local community support remains strong
Romanian public support through
December 9, 2012 positive referendum
vote
Working with new Romanian
Government to bring the first modern
mine to the Romanian people
Environmental permitting process to be
completed
TSX listing with strong supportive global
shareholder base
Permitting Europe’s largest gold mine……… Gabriel Resources, Romania and Rosia Montana
(1) Taken from the 2012 Technical Report (2) At a gold price of USD $1,200/oz
35
ANNEXES
36
Analyst Coverage1
Institution Analyst Contact Information
BMO Capital Markets John Hayes (416) 359-6189
CIBC World Markets Cosmos Chiu (416) 594-7106
Cormark Securities Inc. Mike Kozak (416) 943-6749
Cowen Securities Adam Graf (646) 562-1344
RBC Capital Markets Stephen Walker (416) 842-4120
Scotia Capital Inc. Trevor Turnbull (416) 863-7427
(1) Gabriel is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Gabriel's performance made by these (or any other) analysts are theirs
alone and do not represent the opinions, forecasts or predictions of Gabriel or its directors or officers. Gabriel does not by its reference above or distribution imply its endorsement of, or
concurrence with, such information, conclusions or recommendations
37
Largest Shareholder Ownership History
Source: Bloomberg, as of June 2013
Current
Shareholders >10% 31-Dec-04 31-Dec-05 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 Latest
millions % of total millions % of total millions % of total millions % of total millions % of total millions % of total millions % of total millions % of total millions % of total
Paulson & Co. - - - - - - - - 46.0 18.0% 61.4 18.1% 61.4 17.6% 61.4 16.2% 61.4 16.0%
Electrum Strategic
Holdings - - - - - - - - 50.8 19.9% 61.4 18.1% 61.4 17.6% 61.4 16.2% 60.4 15.7%
BSG Capital Markets - - - - - - - - - - 30.0 8.8% 30.0 8.6% 60.0 15.8% 60.0 15.6%
Newmont Canada 15.0 10.2% 33.4 18.9% 33.4 15.9% 46.8 18.4% 50.3 19.7% 50.3 14.8% 50.3 14.4% 50.3 13.2% 50.3 13.1%
The Baupost Group - - - - - - - - - - - - - - 48.6 12.8% 48.6 12.7%
Total 15.0 10.2% 33.4 18.9% 33.4 15.9% 46.8 18.4% 147.1 57.6% 203.1 59.9% 203.1 58.3% 281.7 74.2% 281.7 73.1%
38
Romania's Golden Quadrilateral
Copper +/- gold deposits
Gold and silver deposits
Exploitation licenses
Exploration licenses
Exploitation license pending
Gabriel Resources license
Border of Golden Quadrilateral
There are around 64 ore deposits and
prospects, some of them having been
mined in the past
3 active exploitation licenses:
Rosia Poieni
Rosia Montana
Certej
5 exploration licenses
Voia
Cainel
Rovina
Magura Tebii
Caraci-Birtin
Within the Golden Quadrilateral:
39
Project – Geology
40
Project Geology– Cetate and Carnic Cross Section
Marine Sediments Dacite
Tuffaceous
Vent Breccia
Andesite
Black
Breccia
W E
Cirnic Cetate
Polymictic breccia
41
Immediately SE of Rosia Montana
NNW structural corridor
Andesite and dacitic intrusions and lavas
Volcanic centres aligned NNW
Epithermal deposits:
• Rodu – Frasin
• Contu
• Arama – Argint – Vipere
• Valcoi – Corabia
• Izbicioara - Botes
Porphyry Copper - Gold:
• Bucium Tarnita
Rosia Montana and Bucium Rodu-Frasin
similar
2 proposed exploitation licenses
Bucium Rodu-Frasin
Bucium Tarnita
Project Geology – Bucium Properties
Legend
Dacite
Andesite – lava flow
Andesite – lava flow
Mixed Brecia
Vent Breccia reworked
Sediment
Alterations
Structural trend
Porphyry Copper
42
The Proposed Mining Process
• An illustration of the most modern mining project in Romania
Process tailings
Processing
Pit
Pit setup Blasting Ore loading
and transport Crushing
Grinding
Leaching
Gold recovery
with active
carbon Electrolysis
Melting CN
neutralisation
Clear water Settled tailings Final dam
Secondary dam
Primary dam Runoff recirculated
Proposed
Rosia Montana Project
CONCRETE PLATFORM lined with high density polyethylene
43
The ore is extracted in pits and crushed before entering the grinding circuit
The Technological Process in the Pits
2. Blasting
3. Loading and transport
4. Crushing
1. Pit setup
Zone I– distances over 300m
Zone II – distances below 300m
Special technology for each sub-zone
Trucks with a capacity of 146 t will be used
70,000 tons of rock will be transported every day (waste and ore)
The travel distance is maximum 6km. The maximum driving speed 30 km/h
The travel duration is 20 minutes, including the rock loading and unloading time
The minimum number of trucks necessary is 8-9, the average no. of trucks 14
The extracted ore is crushed before entering the grinding circuit
4 pits will be set up: Carnic, Cetate, Jig and Orlea
The 4 pits will be exploited in 2 phases: Cetate and Carnic in the first 9 years, while Orlea
and Jig will be opened as of year 9, with the continuation of the mining operations in Cetate
The closing of the pits and of the stockpiles will be done progressively, the stockpile of
Cetate starting with year 5, the stockpile and pit of Carnic as of year 9, and the pits of Orlea
and Jig in the years 12-14
44
Wet grinding of the crushed ore in 2 ball crushers and one semi-autogenous mill;
Leaching of the ore in a CN solution, in closed tanks; the CN solution dissolves the gold
and silver from the ore.
Gold and silver recovery from the pores of the activated charcoal, by acid washing: CN
bound to silver and gold settles in the pores of the activated charcoal, which floats in the
solution from the leaching tanks. The coal is recovered by backwash pumping, and the
gold and silver sludge is washed out from the pores with a HCl solution.
Gold and silver recovery from the gold-bearing sludge by electrolysis; the gold-bearing
sludge is purified/enriched through electrolysis.
Gold/silver melting/casting in ingots – the gold alloy is cast in ingots in an electric furnace.
CN neutralization from the process tailings before leaving the plant, using the INCO
procedure – slurry oxidation in the presence of sodium metabisulfite and copper sulfate.
The CN concentration is reduced as a result of the oxidation process.
5. Grinding
6. Leaching
7. Gold and silver
recovery on activated
charcoal
8. Electrolysis
9. Melting
10. CN neutralization
The Technological Flow in the Processing Plant
45
Tailings Management Facility
13 sites were reviewed initially
Corna Valley is the only site which fulfils all requirements:
Storage capacity;
Favorable geology;
Easy to exploit;
Low environmental impact – almost non-existent
phreatic layer
Itinerary
Designed capacity – 250 million tonnes
Necessary storage capacity – 215 million tonnes
Designed to resist earthquakes of 8 degrees Richter
Designed to resist two consecutive rainfall events, which
can occur once every 10,000 years
Slopes generally 1.75H:1V to 2H:1V (RMGC 3H:1V)
Final height 185 m + 20 m under the valley floor
Length 1,182 m
Secondary catchment dam 22 m
NGI Report: The Norwegian Geotechnical Institute
conducted a risk assessment in order to assess the safety
of the tailings dam of the Rosia Montana Project. The
assessments took into account critical scenarios,
including all possible ways in which the Corna dam could
fail in extreme situations, such as an unusually large
earthquake, which appears extremely rarely, and an
extreme 24-hour rainfall. The conclusion formulated by
the report published in April 2009 was clear: as it was
designed, the dam will be among the safest in the world.
46
Rosia Montana – Post Closure
47
Referendum December 2012- Positive
Referendum Highlights:
Local referendum – requested October 1, 2012
by 35 Mayors representing the Apuseni
Mountains region of Alba County, location of
Rosia Montana
Voting ballot question: “Do you agree with the
resumption of mining in the Apuseni Mountain
region and specifically at the Rosia Montana
Project?”
Voting to took place on December 9, 2012 – the
same day as the Romanian General Elections
Eligible voters- approximately 80,000
Positive Outcome:
62.5% voted in favour of mining
Voting participation for the referendum was
greater than the General Election turnout
Although not legally binding, this positive
outcome of the referendum can provide the
Company with a catalyst for further permitting
of the Project
Alba County
Apuseni Mountains
Bucharest
48
Key People at Gabriel Resources
Non-Executive Chairman
Keith Hulley is the current Chairman of the Board of
Gabriel, is the former Interim CEO of Gabriel and has
been a member of the Gabriel Board since 2006.
Previously, Mr Hulley served seven years successively
as President, Chief Executive Officer and Executive
Chairman of Apex Silver Mines before retiring in 2009.
Mr. Hulley has more than 48 years’ experience in the
mining business which, in addition to the above,
includes Board and senior executive experience at
Western Mining Holdings Ltd. and independent
directorships with Red Tiger Inc. and Ecometals Ltd.,
and is Chairman of the Board of Luna Gold Corp. Mr.
Hulley is not independent within the meaning of NI 58-
101. Mr. Hulley is the Chairman of the Board of
Directors and a member of the Technical Committee.
Keith R Hulley
President and Chief Executive Officer
Jonathan Henry has been the President and Chief
Executive Officer of Gabriel since June 2010. Mr.
Henry has 18 years’ experience in the mining industry
successfully executing on exploration, development,
operational and M&A activities. Formerly, Mr. Henry
was the CEO of Avocet Mining, a London listed gold
mining company with assets in West Africa from 2006
until he joined Gabriel. Prior to that he was Avocet’s
Finance Director for four years. Mr. Henry is not
independent within the meaning of NI 58-101.
Jonathan Henry
Non-Executive Director
Alfred Gusenbauer is the former Federal Chancellor of
Austria and was a member of the European Council.
Dr. Gusenbauer holds a PhD in political science from
the University of Vienna. In addition to a long career in
politics in Austria and Europe, he also works in
academia as a Professor-at-Large at Brown University
and is a Visiting Professor at the Institute for Global
Law and Policy at Harvard University. Dr. Gusenbauer
is currently the CEO of Gusenbauer Projektentwicklung
and Beteiligung GmbH and Chairman of STRABAG
SE, Signa Prime Selection AG and Cudos Capital AG.
Dr. Gusenbauer is independent within the meaning of
NI 58-101. Dr. Gusenbauer is a member of the
Corporate Governance Committee.
Dr. Alfred Gusenbauer
Non-Executive Director
Wayne Kirk has over 35 years of experience as a
corporate attorney, including nine years’ experience as
Vice President, General Counsel and Corporate
Secretary of Homestake Mining Company. Mr. Kirk
currently holds directorships and is the Chairman of
Nominating and Corporate Governance committees at
Northern Dynasty Minerals Ltd. and Taseko Mines
Limited. He is also a director of Luna Gold Corp., a
director and Chairman of the Corporate Governance
and Nominating Committee and Compensation
Committee of Electrum Ltd., and a director and
Chairman of the Compensation and Nominating
Committee of Sunshine Silver Mines Corporation. Mr.
Kirk is independent within the meaning of NI 58-101.
Mr. Kirk is the Chairman of the Corporate Governance
Committee and a member of the Audit Committee.
Wayne Kirk
Non-Executive Director
Igor Levental is President of the Electrum Group, a
privately-owned company involved in identifying and
negotiating opportunities in exploration and mining
ventures. With more than 30 years of experience in the
mining industry internationally, Mr. Levental has held
senior positions with mining companies including
Homestake Mining Company and International Corona
Corp. Mr. Levental holds a BSc in Chemical
Engineering and an MBA from the University of
Alberta, Canada. Mr. Levental is a director of
NovaGold Resources Inc., NovaCopper Inc., Sunward
Resources Inc. and Taung Gold Limited. Mr. Levental
is independent within the meaning of NI 58-101. Mr.
Levental is a member of the Corporate Governance
and Finance Committees.
Igor Levental
49
Key People at Gabriel Resources
Non-Executive Director
David Peat has over 25 years of experience in financial
leadership in support of mining companies. He is a
director and Chairman of the Audit Committee of Brigus
Gold and a director and Chairman of the Audit
Committee of Sunshine Silver Mines Corporation. Mr.
Peat was Vice President and Chief Financial Officer of
Fontera Copper Corporation from 2006 to 2009, Vice
President and Global Controller of Newmont Mining
Corporation from 2002 to 2004, and Vice President of
Finance and CFI of Homestake Mining Company from
1999 to 2002. Mr. Peat received a Bachelor of
Commerce, Honors in Business Administration from the
University of Windsor in 1976 and a Bachelor of Arts,
Economics from the University of Western Ontario in
1975. Mr. Peat is independent within the meaning of NI
58-101. Mr. Peat is the Chairman of the Audit Committee
and a member of the Compensation Committee.
David Peat
Non-Executive Director
Dag Cramer is the CEO of Onyx Financial Advisors UK.
Prior to joining Onyx in 2003, he worked for Anglo
American PLC as a management trainee in 1989
followed by three years as executive assistant to the
Deputy Chairman and CFO. His subsequent senior roles
within that group included responsibility for the group’s
treasury operations as well as its investment activities
and the group’s risk management activities after its
listing in London. Mr. Cramer is currently a director of a
number of private and unlisted public companies
including Onyx, Vale BSGR Guinea, BSG Capital
Markets, BSG Resources, DB Petroleum, Siboney PLC,
Lubel Coal, BSG Med and Koidu Holdings. He is a
Swedish citizen. Mr. Cramer is not independent within
the meaning of NI 58-101. Mr. Cramer is a member of
the Finance Committee.
Dag Cramer
Non-Executive Director
Walter Segsworth is a director of Heatherdale
Resources, Pan American Silver, NovaCopper Inc.,
Alterra Power Corp., and Roxgold Inc. Mr. Segsworth
has 40 years of experience in mining in Canada and
overseas and has served as a senior officer of several
mining companies including Westmin Resources, where
he was President and CEO, and Homestake Mining
Company, where he was President and COO. Mr.
Segsworth is currently lead independent director of
Alterra Power Corp. and Pan American Silver. Mr.
Segsworth is past Chairman of both the Mining
Associations of British Columbia (BC) and Canada and
was named BC’s Mining Person of the year in 1996. Mr.
Segsworth is independent within the meaning of NI 58-
101. Mr. Segsworth is the Chairman of the
Compensation Committee and a member of the
Technical Committee.
Walter Segsworth
Chief Commercial Officer
Richard Brown is the Chief Commercial Officer and
Corporate Secretary of Gabriel with responsibility for
the commercial operations and business compliance.
Mr. Brown joined Gabriel in March 2011 and brings
business, regulatory and equity markets expertise
gained over 18 years in corporate advisory positions,
notably at the London Stock Exchange, KPMG and
more recently the mining focused investment bank,
Ambrian Partners Limited, where he was Head of
Corporate Finance for four years and latterly the Chief
Operating Officer.
Richard Brown
Chief Financial Officer
Max Vaughan joined Gabriel as Chief Financial Officer
in March 2011. Mr. Vaughan has spent 13 years in
financial advisory and investment banking focused
exclusively on the mining and metals sector. Prior to
joining Gabriel, Mr. Vaughan was Managing Director of
Ogmore Capital from 2009, a mining and metals
financial advisory business, and prior to this was
Managing Director at RBS Global Banking & Markets
specialising in structured finance for several years. Mr.
Vaughan is a member of the Institute of Chartered
Accountants in England and Wales and holds an MBA
from London Business School.
Max Vaughan
50
Key People at RMGC
General Manager RMGC
Mr. Tánase joined RMGC in February 2008, coming from the largest cable communications operator in Romania, UPC. Within UPC, Mr. Tánase coordinated the merger of two large cable operators, UPC and Astral, which combined employed a workforce of 3,600 people and held the position of CFO for 7 years. Previously, Mr. Tánase - an expert in financial management - worked in financial and business consultancy, first at the Ministry of Finance and then with Arthur Andersen.
Dragos Tanase
Senior Vice-President Governmental Affairs
and Community Relations
Mr. Suciu began working for RMGC in 2006, initially as a Legal Manager, then as a Legal Director, and subsequently as a Legal Vice-President. In June 2009, Mr. Suciu became Senior Vice-President in charge of coordinating the Legal and Community Relations Departments, as well as the team managing the dialogue with the governmental institutions responsible for assessing the mining project.
Nicolae Suciu
Vice-President Environment
Mr. Avram has been Vice-President of Environment at RMGC since January 2007, and was previously Environmental Monitoring Officer (2003-2006) and then Environment Director (2006-2007) of RMGC. His main responsibilities include coordinating the project permitting process in terms of environmental protection and drafting RMGC's environmental strategy and policy. Between 1996 and 2003, Mr. Avram occupied various positions in the governmental sector, being responsible for environmental matters.
Horea Avram
Vice-President Patrimony and Sustainable
Development
Mr. Gligor has been working for RMGC since 2002 in the Patrimony department, which he has been running since 2005. He has also been in charge of the sustainability strategy since 2008. Mr. Gligor is responsible for identifying the best solutions for the preservation and valorisation of the cultural heritage from Rosia Montana, within the context of the mining project. Mr. Gligor graduated from "1 decembrie 1918" University of Alba Iulia, specialising in history-archaeology. Mr. Gligor is now completing his PhD within the same University.
Adrian Gligor
Vice-President Communication
Mrs. Plesa joined RMGC in June 2008 to develop and coordinate RMGC's internal and external communication strategy, and transform RMGC into a communicative company, open for dialogue with all relevant stakeholders. Mrs. Plesa has 15 years of experience in marketing, communication and lobbying, and her professional achievements include the creation and consolidation of UPC Romania's reputation, from the third position of the cable communication market to market leadership.
Andreea Plesa
Vice-President Human Resources
Mr. Mátáuan joined RMGC in September 2010 and coordinates RMGC's HR and Social Responsibility (CSR) activities. With 20 years of experience in human resources management, Mr. Mátáuan held for the last ten years the position of Human Resources and Public Relations Director of Lafarge Romania, a world leader in building materials industry. Mr. Mátáuan is a graduate of the Commerce Faculty within the Academy of Economic Studies in Bucharest and holds a PhD degree in sociology from the University of Bucharest.
Gabriel Măţăuan