Investor Presentation
March 2012
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 43-101
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 43-101 technical reports* for the Garrcon Gold Project,
which may be found under NGM’s profile on www.sedar.com.
Note: The October 2009, September 2010 and June 2011 resource update, which also contained a Preliminary Economic Assessment (PEA), are all
National Instrument 43-101 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.
2
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 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), 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.
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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
Two NI 43-101 compliant resource estimates
for the Garrison Project including a Preliminary
Economic Assessment (PEA) for Garrcon
Low cost explorer
Excellent land package for expanded
exploration, infrastructure and development of
future open pit mine
4
Garrison Gold
Project
Timmins
Val D’or
Kirkland Lake
Toronto
A 100 Year History of Prolific Canadian Gold Mining
The Garrison Gold Property 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
Garrison Gold Property
Wahgoshig
First Nation
Town
Gold Deposits > 3.0M oz.
Gold Deposits < 3.0M oz.
Major Faults
Hollinger-McIntyre
Timmins
71 Moz
Parmour
Dome
Black Fox
Holloway
Doyon
Sigma-Lamaque
Cadillac
Kirkland Lake
Rouyn-Noranda
47Moz
19 Moz
North Gate
Matachewan
Ontario
18 Moz
Malartic
Malartic
9 Moz Val d’Or
28 Moz
Kerr Addison
5
Bousquet
Quebec
Corporate Data at Feb 29th, 2012
Capital Structure
TSX Venture Symbol
NGM
Share Price (Feb 15th)
C$0.28
Share Price (52 Week Range)
C$0.17- C$0.64
Basic Shares Outstanding
155 million
Fully Diluted Shares
180 million
Cash
C$6.5 million
Debt
6
$0
Market Capitalization
C$43 million
Developing Institutional
Shareholder Base
Sprott Asset Management, Dundee
Resources
Garrison Property Drill & Zone Plan
7
Garrcon Gold Deposit
Surface exposure, bulk mineable potential
Quartz-carbonate vein stockwork in siliceous - meta
sediments
Resource footprint is 1.1km 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
8
Continuity of Mineralization
9
Garrcon Deposit
Selected Drill Intercepts Across the Garrcon Deposit showing
consistently long mineralized sections
Hole ID
10
Length (m)
Au Grade (g/t)
GAR-10-16
169.0
1.17
GAR-10-19
10.0
5.0
GAR-10-42
209.0
1.44
GAR-10-46
284.0
1.62
GAR-11-59
102.0
1.00
GAR-11-71A
66.0
1.94
GAR-11-78
44.0
1.98
GAR-11-130
55.0
1.19
GAR-11-114
(interval 194m-241m)
47.0
2.10
GAR-11-114
(interval 313m-463.6m)
150.0
1.24
Drill Hole Expansion
A.C.A. Howe International Limited- Technical and
Preliminary Economic Assessment – June 23, 2011
11
Longitudinal Section of Garrcon Deposit
12
Evolution of Resource Estimate
September 2010 | cutoff = 0.5 g/tonne
Indicated Resources
Inferred Resources
144,000 ounces
530,000 ounces
3,780,000 tonnes
18,500,000 tonnes
1.2 grams/tonne
0.9 grams/tonne
June 2011
13
| cutoff = 0.3 g/tonne
Indicated Resources
Inferred Resources
720,000 ounces
430,000 ounces
29,400,000 tonnes
18,600,000 tonnes
0.9 grams/tonne
0.8 grams/tonne
Garrcon Deposit Block Model and Pit
14
Preliminary Economic Assessment Highlights
Garrcon Deposit as at June 2011 – Gold Price US$1200 per ounce
In Pit Ounces:
Annual Production:
Mine Life:
Cash Costs:
130,000 oz./year
8+ years
$495 per ounce, life-of-mine
Initial Capex:
$156.3 million
NPV:
$265.9 million
IRR:
47% after tax
Payback:
Average Annual Cash Flow
15
High Grade Ounces (0.3g/t cutoff):
960,000 ounces @ 0.91 g/tonne
Low Grade Ounces (0.2g/t cutoff):
80,000 ounces @ 0.76 g/tonne
2.2 years
$49.2 million
Focus on Expanding
Current focus on
expanding known
mineralization to
depths of 500+
meters along
strike
16
58 holes with
1.0 g/t over
50+ meters
4 Diamond Drills
currently
operating
70,000+ meter
drilling program
planned for 2012
Upside Potential
17
Further Upside Potential
18
Historic Jonpol Gold Deposit
In 1996-1997 a
50,400 tonne bulk
sample was mined
with an average
grade of 8.3g/t
which produced
13,564 oz Au.
19
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
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
20
Output integrates with
geological modeling,
enabling 2D or 3D
visualization
Core Mapper™ used to
map and identify
mineralogical content of
1500-2000 meters of
core per week
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
21
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
Looking Forward – 2012
Garrison Project:
UPDATED
RESOURCE
ESTIMATE
Q1 2012
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
22
Forward Looking Time Line
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
Garrcon Deposit
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
2012
2013
2014
2015
Continuing Story of Growth
Resource Growth on the
Garrison Property
JonPol
June
2011
Indicated:
63,000
Inferred:
247,000
Garrcon
Indicated: 720,000
Inferred: 430,000
JonPol
Sep
2010
Oct
2009
24
Indicated:
63,000
Inferred:
247,000
Garrcon
980,000 oz
Indicated: 144,000
Inferred: 530,000
JonPol
Indicated:
63,000
Inferred:
247,000
1,459,000 oz
300,000 oz
371%
(Oct 2009 – Jun 2011)
Indicated and Inferred Oz Au
Low Cost Explorer
Low Cost Per Ounce of Resource
Developed on the Garrison Gold Project
Cost Per Ounce Resource
At June 30, 2011
Exploration Costs Per Meter
Drilled:
Total Exploration Costs
Overall/Meter Drilled:
Direct Cost Categories/
Meter Drilled:
Diamond Drilling
Garrcon
w/o
Acquisition
$5.14
@Dec 31st,
2011
$202.24
$88.05
DD + Assaying
$122.12
DD + Assay + Field Labour
$143.08
Ditto + Field Equipment &
Supplies
$154.52
25
Meters
Drilled from
Oct. 2009
Acquisition
$/oz
Resource
At Sept 30,
2011
@
Jun
2011
@
Sep
2011
@
Dec
2011
26,761
37,479
56,143
Garrcon
$6.97
Significant Drilling/Assaying Statistics
Data Since Drilling Commenced in May 2010 to October 2011
Total Drill Holes Drilled
Total Holes with No Significant Results
Percent Success
106
5
95.3%
Depth drilled
Significant downhole intercepts greater than 0.3g/t Au
found in 41 holes
100 Meters+
200 Meters+
11
30
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
7
6
1
1
Intercepts Longer Than 50 M and Less Than 100 M
12
13
Intercepts Longer Than 100 M and Less Than 200 M
8
3
Intercepts Longer Than 200 M and Less Than 300 M
11
3
Intercepts Longer Than 300 M
26
7
1
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 2011.
Resource Estimate
doubled every 9 months
Low cost explorer
Low Cost
Explorer
27
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
Large
Tonnage
Open Pit
Mineable
MANAGEMENT
EXPERIENCE
Skilled team with
proven geology, mine
start-up and mine
operations experience
Significant public
market and financing
experience
Continuity
of
Mineralization
Management
• Founder and Director of
• Formerly at Hecla Mining, Exall
Northern Gold Mining Inc.
• Over 25 years in mineral
exploration and brokerage
industry
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
• Over 25 years in public
accounting and brokerage
industry
• Currently CFO of Castle
Resources and Northern
Gold Mining Inc.
Eric E. V. Szustak
C.A., Chief Financial
Officer
28
• 15 years governance, corporate
secretarial and securities
regulation experience with a
focus on the resource sector
• Experience with TSX, TSXV, NYSEAMEX and London - AIM listed
Heather A. Laxton issuers
Chief Governance
Officer & Corporate
Secretary
Board of Directors
• Retired from the
•
James C.
Gervais, LGen
(Ret’d),
Chairman and
Independent
Director
Canadian Forces in
1993 as
Commander of
the Army
Director SAMA
Resources Inc.,
an international
mineral company
• Registered
•
Eric M. Moeller
Independent
Director
• Over 20 years
•
•
Patrick Culhane
Director
29
•
Professional
Geologist
(RPG 374 SC)
Principle,
Nanoparticle
Consultancy LLC
Over 30 years of
surface and
underground
mining
experience
• Professional
•
•
Dennis H.
Waddington
Independent
Director
• Founder and
• General Partner
mineral exploration
Independent
geological
contractor
•
Former Ontario
Provincial Police
Nuno Brandolini
officer
Independent
Director
of Scorpion
Capital Partners,
L.P.,
Formerly with
Lazard Frere,
Solomon and
Rosecliff Inc.
Geoscientist (ON)
45 years within
the mineral
resource sector
Financial
consultant; gold
and base metals
exploration
•
Martin R. Shefsky
President & CEO,
Director
Director of
Northern Gold
Mining Inc.
Over 25 years
in mineral
exploration
and brokerage
industry
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
www.northerngold.ca