JV video: Economics back Tiger Gold’s Colombia push

Key Concepts

• Tiger Gold: A new mining company with an exclusive option to acquire the Kingia and Andis Gold projects in Colombia's Midcock Belt.
• Kingia and Andis Gold Projects: Projects in Colombia's Midcock Belt with over 2 million ounces in current and historical resources.
• Midcock Belt (Colombia): A geologically endowed region known for large-scale, world-class gold deposits, offering year-round operational benefits.
• Robert Val: CEO of Tiger Gold, bringing extensive experience from major deals at Barrick and Yamana.
• Operatorship: Tiger Gold has assumed full control and responsibility for the Kingia project, moving it from care and maintenance to active development.
• Preliminary Economic Assessment (PEA): A study conducted by Tiger Gold to establish a foundational understanding of the project's resources and economic viability.
• Resource Deposits:
  • Mera Flores: An underground resource, fully permitted for small-scale construction and operation.
  • Tesarito: A near-surface, open-pittable resource, constituting the bulk of ounces in the PEA.
  • Dos Cabraatus: A deposit 2 km away with a historical resource, requiring further drilling.
  • Seabell & Chuscow: New discoveries adjacent to Mera Flores and Tesarito, not yet in resource categories but showing strong potential.
• Environmental, Social, and Governance (ESG): Emphasis on community engagement and social responsibility as a critical component of project de-risking and advancement.
• Net Present Value (NPV) & Internal Rate of Return (IRR): Key financial metrics used to assess project profitability.

Tiger Gold: Strategic Entry into Colombia's Midcock Belt

Tiger Gold is positioning itself as a significant player in Colombia's Midcock Belt, a region recognized for its rich geological endowment and the presence of world-class gold deposits. The company has secured an exclusive option to acquire the Kingia and Andis Gold projects, which collectively hold over 2 million ounces in current and historical resources. A key development is Tiger Gold's assumption of full operatorship of the Kingia project, a move that allows for direct management of liabilities, care and maintenance, and operational costs. The company is actively transitioning the project from a care and maintenance status to active development, leveraging the expertise of its on-the-ground team. Full ownership of the project is anticipated upon completion of final cash payments by mid-next year.

Leveraging Global Experience for Project Advancement

CEO Robert Val, whose background includes significant deal-making at Barrick and Yamana, emphasizes the application of his global experience to Tiger Gold's emerging projects. This experience provides a broad perspective on the multifaceted nature of mining projects and the intricate interconnectivity of their various components. By applying this knowledge, gained from large-scale producers, to a developing project like Kingia, Tiger Gold aims to identify risks and opportunities much earlier in the project lifecycle, enabling a more focused and efficient approach to value generation.

Kingia Project: A Multi-Deposit Gold System

The Kingia project is characterized by a multi-deposit gold system with close proximity and rapid discovery succession, indicative of a rich gold environment. The company has recently completed a Preliminary Economic Assessment (PEA) to establish a foundational understanding of these resources and their potential.

Resource Deposits within Kingia:

• Mera Flores: This underground resource is fully permitted for construction and operation as a small-scale underground mine, serving as the nucleus of the project's current focus.
• Tesarito: Located immediately adjacent to Mera Flores, this is a near-surface, open-pittable resource that forms the majority of the ounces considered in the PEA.
• Dos Cabraatus: Situated 2 kilometers away, this deposit currently holds a historical resource. Tiger Gold plans to conduct drilling to move it into a defined resource category.
• Seabell and Chuscow: These are new discoveries located immediately adjacent to Mera Flores and Tesarito. While not yet categorized as resources, they exhibit strong potential for future delineation.

All these deposits are open to depth and, in many areas, along strike, presenting significant opportunities for growth. The gold system is situated in a location that is advantageous for operational efficiency and scalability.

Preliminary Economic Assessment (PEA) Findings

The PEA, completed approximately 10 days prior to the interview, affirmed two critical aspects of the Kingia project: its solid economic and technical foundations. At a gold price of $26.50 per ounce (consensus pricing), the PEA indicates a post-tax Net Present Value (NPV) exceeding half a billion dollars and a post-tax Internal Rate of Return (IRR) of over 21%. The assessment also demonstrates the project's leverage to gold price fluctuations, with significant improvements in IRR and NPV projected at a gold price of $3,700 per ounce. This data provides a substantive foundation for future growth and a clear, prescriptive approach to the project's next steps, focusing efforts on value generation and de-risking towards a construction decision.

Commitment to Community Engagement and ESG

Tiger Gold places a high priority on building local trust and fostering community engagement, recognizing its crucial role in project success. The company is pleased to find that the previous owners of the Kingia project had established exemplary community and social engagement practices, even receiving awards in Colombia for their efforts. This provides a strong ESG foundation, particularly in the social and community aspects. Tiger Gold is actively reactivating and enabling programs that were previously in place, ensuring these initiatives are ramping up concurrently with the project's development. These social and community programs are considered as important for de-risking and advancing the project as the resource and engineering aspects. The company acknowledges the ongoing work required to maintain these relationships as the project evolves and potentially expands beyond its initial permitted scope.