Moneta Porcupine Mines

Website: www.monetaporcupine.com
Primary ticker: TSX:ME, OTC:MPUCF, XETRA:MOP
Stage of development: Development
Commodity: Gold
Project to promote: Tower Gold Project
Project location: Canada

Live financials

Cash: C$26M
Debt: Nil

Major shareholders:
O3 Mining Inc. – 27%
K2 – 8%
1832 – Scotia – 6%
Dundee Resources & Goodman & Co – 5%
Eric Sprott – 4%
Insiders – 14%

Moneta holds 26,343 ha of prospective land in the Timmins Gold Camp including a joint venture with Kirkland Lake Gold Corporation (TSX: KL). The Company’s flagship project, covering the Golden Highway and Garrison Gold Projects is located 100 km east of Timmins and hosts a total indicated resource of 3,967,000 ounces gold contained and a total of 4,399,000 ounces gold inferred at a 2.60 g/t Au at South West, 3.00 g/t Au cut-off for the other underground deposits and 0.30 g/t Au for the open pit deposits. The project includes a total of 3,335,000 ounces of open pit indicated resources contained within 116.7 Mt @ 0.89 g/t Au and 2,270,000 ounces of open pit inferred resources contained within 79.4 Mt @ 0.89 g/t Au. The project also includes 632,000 ounces of indicated underground resources contained within 4.9 Mt @ 4.05 g/t Au and 2,129,000 ounces of inferred underground resources within 15.7 Mt @ 4.21 g/t Au.

Preliminary economic assessment (“PEA”) studies were completed on the Garrison open pit resources and the South West underground bulk mining resource in 2020. The Garrison PEA highlighted open pit mining operation consisting of a 12-year mine life with an after-tax NPV5% of C$321MM, IRR of 33% and a 2.3 year payback. The project envisaged open pit mining producing 121,000 oz/pa in years 1 to 8 (94,000 oz/pa LOM), at a strip ratio of 2.7:1 at a cash cost of US$721/oz using a gold price of US$1,450/oz and an exchange rate of US$0.75/C$. The PEA on the South West gold deposit, one of 6 deposits located on the Golden Highway project, highlighted an underground bulk mining operation consisting of an 11-year mine life with an after-tax NPV5% of C$236MM, IRR of 30% and a 3.4 year payback, generating C$371MM LOM after-tax free cash flow. The project envisaged producing 76,000 oz/pa at a cash cost of US$590/oz at a gold price of US$1,500/oz and an exchange rate of US$0.77/C$. The open pit resources and new underground discoveries have not yet been subjected to a preliminary economic assessment study at Golden Highway.

Moneta is currently drilling (70,000 m) the extensions of the resources in preparation of an updated resource estimate and combined PEA with an expanded scope and production profile.

Key investor takeaways:

Drill program this year is more than twice as big as 2020 – 70,000 m. Fully financed for this year and for the PEA study in early 2022. Experienced management team who understands how to advance economic projects

Management Profile

Gary O’Connor, CEO

Mr. Gary O’Connor, is currently CEO and a Director of the Company. He has over 35 years of experience in international mineral exploration and development. He is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM), a Fellow of the Society of Economic Geology, and holds a graduate degree in geology, geophysics and environmental studies from the University of Auckland.

Mr. O’Connor was Vice-President of Dundee Resources from 2007 to 2017 where he guided investment decisions with his technical due diligence on 200+ resource projects across all continents and covering gold, diamonds, base metals, bulk commodities and uranium.

From 2000 to 2007, Mr. O’Connor was Vice-President, Exploration of Gabriel Resources Ltd. and Vice-President, Exploration of European Goldfields from 2000 to 2003 where he was responsible for the discovery, drill out, scoping and feasibility studies of a number of gold and gold-copper deposits. He was previously District Exploration Manager for Freeport-McMoRan in Papua, Indonesia.


What is your rationale for attending 121 Mining Investment?

Growth and value investors, no financing coming up, looking for market support, new developments yes


What recent news would you like to highlight to investors attending?

MONETA COMPLETES ACQUISITION OF GARRISON PROJECT FROM O3 MINING TO CREATE A LEADING CANADIAN GOLD DEVELOPMENT COMPANY WITH 4.0M OZ GOLD INDICATED AND 4.4M OZ GOLD INFERRED

MONETA RECEIVES MAJORITY SHAREHOLDER CONSENT TO APPROVE THE ACQUISITION OF NORTHERN GOLD MINING INC.

MONETA CLOSES OVERSUBSCRIBED $22.6 MILLION FINANCING

MONETA EXTENDS GOLD MINERALIZATION FOR 1.6 KM EAST OF CURRENT RESOURCES AT GOLDEN HIGHWAY

MONETA FILES NI 43-101 TECHNICAL REPORT FOR THE MINERAL RESOURCE UPDATE ON THE GOLDEN HIGHWAY PROJECT

MONETA TO ACQUIRE GARRISON PROJECT FROM O3 MINING TO CREATE A LEADING CANADIAN GOLD DEVELOPMENT COMPANY WITH 4.0M OZ GOLD INDICATED AND 4.4M OZ GOLD INFERRED


What are your key goals for the next 3, 6 and 12 months?

3 Months:

Drill high grade and open pit targets at the Tower Gold Project – 70,000 m program compared to 2020’s 28,000 m program and release drill results. Some drilling at O3 Mining’s Garrison project which Moneta just acquired 100%. Moneta now has one of the top undeveloped gold projects in North America.

6 Months:

Complete winter drill program and identify targets for fall/winter drill program. Complete share consolidation. Commence updating resource estimate for announcement in Q3 2021.

12 Months:

Commence and complete updated PEA study which will include all of Moneta’s resources including the Garrison project and updated resources on Moneta’s project which will include a much larger scale program with a large open pit and several underground mining scenarios. Huge land package to explore – just increased by 73% due to the acquisition of O3 mining’s Timmins, Ontario assets.


What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Potentially gold price decline although we can still make money at US$1,000/oz gold price


What do you think makes your company such a compelling investment?

Relatively unknown story – new CEO in 2017 and just started IR program in 2020. We are trading at $16/oz whereas peer group trades at $0.77/oz. We have one of the top undeveloped gold projects in North America. Several synergies to be realized for the Tower Gold project since the acquisition of O3 Mining’s Timmins assets. Huge land position still to be explored. Safe jurisdiction with major infrastructure already built and experienced and available mining individuals who reside there.

Analyst Insight – provided by Independent Investment Research

Moneta Porcupine Mines is a TSX-listed gold exploration company which holds a 100% interest in six significant gold projects, all strategically located along the prolific Destor Porcupine Fault Zone within the world-class Timmins Camp in Canada. The Timmins Camp is one of the best mining jurisdictions in the world, with over 75 million ounces of past gold production directly related to the Destor Zone. Moneta holds 26,343 ha of prospective land within the Timmins Gold Camp, including a joint venture with Kirkland Lake Gold Corporation (TSX: KL).

The company’s flagship project is the Tower Project, covering the Golden Highway and Garrison Gold Projects, located 100km east of Timmins and hosts a total indicated resource of 3,967,000 ounces gold contained and a total of 4,399,000 ounces gold inferred at a 2.60 g/t Au at South West, 3.00 g/t Au cut-off for the other underground deposits and 0.30 g/t Au for the open pit deposits.

The project includes a total of 3,335,000 ounces of open-pit indicated resources contained within 116.7 Mt @ 0.89 g/t Au and 2,270,000 ounces of open-pit inferred resources contained within 79.4 Mt @ 0.89 g/t Au. The project also includes 632,000 ounces of indicated underground resources contained within 4.9 Mt @ 4.05 g/t Au and 2,129,000 ounces of inferred underground resources within 15.7 Mt @ 4.21 g/t Au.

Preliminary economic assessment (PEA) studies were completed on the Garrison open pit resources and the South West underground bulk mining resource during 2020. The Garrison PEA highlighted an open-pit mining operation consisting of a 12-year mine life with an after-tax NPV5% of C$321MM, IRR of 33% and a 2.3-year payback. The project envisages open-pit mining producing 121,000 oz/pa in years 1 to 8 (94,000 oz/pa LOM), at a strip ratio of 2.7:1 and at a cash cost of US$721/oz, using a gold price of US$1,450/oz and an exchange rate of US$0.75/C$.

The PEA on the South West gold deposit, one of 6 deposits located on the Golden Highway project, highlighted an underground bulk mining operation consisting of an 11-year mine life with an after-tax NPV5% of C$236MM, IRR of 30% and a 3.4-year payback, generating C$371MM LOM after-tax free cash flow. The project envisages producing 76,000 oz/pa at a cash cost of US$590/oz at a gold price of US$1,500/oz and an exchange rate of US$0.77/C$. The open pit resources and new underground discoveries have not yet been subjected to a preliminary economic assessment study at Golden Highway.

Moneta is currently drilling (70,000 m) the extensions of the resources in preparation of an updated resource estimate and combined PEA with an expanded scope and production profile.