Professional Documents
Culture Documents
PART2
Explorationandbusiness
developmentupdate
June2010
1
Ourexploration
focus
2
Wherearewe?
3
DepositType:EBITDAgenerationpotential
250
# of deposits
20
200
15
150
10
100
50 5
0 0
Intrusive (non-
Intermediate
IOCG
Orogenic BIF
Turbidite/Black S
Paleoplacer
Carlin
Skarn/Carbonate
Epithermal Low
Epithermal High
Sulphidation
Porphyry
Greenstone/Volcanic
VMS
Epithermal Alkalic
Epithermal
Sulphidation
Sulphidation
Replacement
porphyry)
Orogenic
Orogenic
EverydeposittypehasadistinctEBITDAgenerationcapacity
CurrentfocusinEpithermalLow/IntermediateSulphidations tendtoyieldlowerEBITDAcontributions
Porphyry,Carlin,HSEandOrogenic depositstendtoyieldhigherEBITDAcontributions
Additionally,asseenbefore,theyalsoyieldhigherNPVperouncemultiples
Source:MetalsEconomicsGroup
4
(www.metalseconomicsgroup.com)
5
years years
-
25
50
75
100
25
50
75
100
Sukhaybarat Antapite
Kemess Ishihuinca
yrs
Central Martha
Pierina Shila-Paula
Wharf Diablito
Angovia San
Morila Topia
Bronzewing Quiruvilca
Ruby Hill
Average = 10.7
Colombia
La Coipa
Ares
Corrales
Source:MetalsEconomicsGroup
Gedabek Pimenton
La Libertad G uanajuato
(www.metalseconomicsgroup.com)
Reserve LOM
Reserve LOM
San Andres Pogo
C Creek- Arcata
Laverton N. Senora
Voro Guanacevi
Lefa Corridor El Penon
Kumtor San Jose
Bonikro G uanajuato
La Herradura La
El Chanate
San Martin
North Mara
Co-O
Resource LOM
El Castillo
Penjom Silver
Chatree Zaruma
Resource LOM
Maricunga Caylloma
Soledad- Rossi
Sadiola Hill Troy Mine
Samira Hill Greens
Ahafo Cubo-
Hidden La Cienega
Siguiri San Dimas
Chapada Morococha
Boddington Fresnillo
Choco Huaron
Navachab Lucky
Andacollo
Deposittype:Formallifeofmine
Bolanos
Sukari
Middelvei
Maikainzoloto
Bereznyaki
High
Porphyry
(ELS) type deposit
6
Source:MetalsEconomicsGroup
(www.metalseconomicsgroup.com)
Growth:Greatergoldexposure
Golduniversehaslessounces,butrepresentsahighervalue
Golddepositstendtohaveamuchhigherpreciousmetalpremiumthansilverdeposits
7
Investinginourgrowthstrategy
Greenfieldexplorationexpenditureismorethantwicetheindustryaverage.Intermediate
majorcompaniesspendonaverageUS$14MMperyearingreenfield activities(MEG2009)
Greenfield
27 geologists who collectively hold
15postgraduatedegrees
23 support staff to ensure our
geologistsfocusonexploration
Brownfield
40 geologists who collectively hold
10postgraduatedegrees
8 support staff to ensure our
geologistsfocusonexploration
9
Weareintherightlocation
HSE Au
Pueblo Viejo (38.9
Moz) Porphyries
These deposit types occur geographically in the Andes of Chile and Peru and opening up the
field isconsistentwithourclusterstrategy
WehaveexperienceofHSEdeposits(Sipan)
OuracquisitionofSWGhasgivenusexposuretoCu(Au)porphiries insouthernPeruinatleast3
earlystagetargets
10
Highqualityprojectpipeline
CURRENTOPERATIONS Peru
Ares GRC ElAguila* Argentina
Arcata Moris Chile
Pallancata LakeShoreGold* Mexico
SanJos Canada
Projectdevelopment Azuca
Resourcedelineation Inmaculada
Crespo
Victoria AstanaFarallon
Mercurio Drilltargets CerroBlanco
7projectsin3countries
Josnitoro Guerrero
Apacheta Prospects
Numerousprospectsinseveralcountries
Generative
556,482hectaresin4countries
11
*Hochschild owns38%ofLakeShoreGoldand30%ofGRC
Ourcurrentminesand
developmentprojects
12
Maintainingandincreasingourresourcesbase
Minelifeofmainoperations
(years)
20%increaseinresourceLOM
20%
20% to7.1yearsin2009
Resourcescalculatedusing
samecutoffgradesas
reserves
Highconversionratioof
resourcestoreserves
*
2008LOMrestatedtoreflect2009capacity
13
ResourcesM+I+IatDecember2009
100%minesandprojectbasis
TotalResources:Measured,indicatedandinferred
Tonnage (Mt) Ag (g/t) Au(g/t) Ag Eq (g/t) Ag Eq (Moz)
ARCATA
15
Arcata
NORTH ZONE
NE ANOMALIE
(2.0 Moz Au
Eq / 120 Moz
Ag Eq)
BROWNFIELD
POTENTIAL
NORTH ZONE RESOURCE
DEV.
SOUTH ZONE
ANCASCOCHA
SOUTH ZONE
(5.4 Moz Au Eq /
CALVARIO 324 Moz Ag Eq)
LOURDES
Arcata:Continuallyfindingnewveins(Luzvein)
Quartz-Calcite-
Rodocrosite-Ag
Sulfosalts.
1.50 m @ 670 g/t Ag 1.8
g/t Au
17
Pallancata
18
Pallancata:Explorationsareas
Resources 2010
Brownfield 2010
PA
RA
L EL
A
CI
M
O
ID
E
19
Pallancata:WestVein
20
Pallancata:NWExploration(XC700)
KEY
VEINS
Veins
Veins Projected
DRILLS
Executed
2010 Program
LABORS
Programmed Labor
21
PallancataEastVein:ResourcestobeDeveloped
KEY
DDH executed by Oro
Vega
KEY
DDH executed by
Resource to be
developed
HOCPLC
Resource developed
Width(mt) Au(g/t)
Ag(g/t)
22
Pallancata:VirgendelCarmenVein(Resource
Development)
t
Faul
rred
Infe
KEY
EXPLORATI
ON
SERVITUDE
2010 AREAS
MINE
2009
PROJECTS
2010 Ag
PROJECTS
2011
PROSPECTS Ag
VARIOUS High Sulphidation
PROSPECTS
Ag Ag
South
5
K Pallancata East Side
M
24
SanJos
ARCATA
25
SanJos
26
SanJos:Geophysicalanomalies
27
SanJos:Saavedra WestProject
Inferred Resources
59,190.00 MT @ 9. g/t Au;
860 g/t Ag.
2.75 Moz Ag_equivalent
28
Advancedprojects
29
AqualitylandpackageinPeru
1.0 Moz
Au Eq
Anab
2.1 Moz
Au Eq
2.6 Moz
4.2 Moz Au Eq
Au Eq
4.2 Moz
Au Eq
Orcopampa
30
Advancedprojects:Azuca (Peru)
100%ownedproject
97kmfromArcata
Explorationupside:maindrillingresults
Reserves&Resources
Tonnes Grade(g/t Grade(g/t MAgeq Oz
(MM) Ag) Au)
Inferred 4.3 288 1.31 44
31
Advancedprojects:Azuca (Peru)
In20093newmineralizedveinsystemswereidentifiedanddrilled:Yanamayo,Vivianand
Marcela.
2010drillingprogramme commencedinApril2010afterrainyseasonandnewpermits.
32
Advancedprojects:Azuca (Peru)
ReasonswhyAzuca willbeamine:
Aimingtoincreaseourexpectedresourcebaseto60MMozAgeq byQ32010
Scopingstudyunderway
Goodinfrastructureandaccesibility
Synergieswithcurrentoperations
Projectnextsteps
2010 2011
Azucatimetable
Q2 Q3 Q4 Q1 Q2 Q3 Q4
Resourceadditions
Scopingstudy
Engenieringstudies
Undergroundexplorations
33
Advancedprojects:Crespo (Peru)
100%ownedproject
Highergradeareas
Width(m) Au(g/t) Ag(g/t)
7.40 11.9 1,050
9.00 9.3 326
34
Advancedprojects:Crespo (Peru)
Excellentlocation,closetoourmines
HistoricalmetallurgicalstudiesbyNewmontoveroreto1
inch show recoveries of 7380% for gold and 750% for
silver.
Advanceatunnelatthebaseofthehilltoevaluatethe
real grade of this mineralization (experience indicates
itmaybehigherthandrillresults).
TransferprojecttooperationsinJulywith+60Moz Ag
equivalentresources.
35
Crespo:Besthistoricalintercept
Oxides
Sulfurs
500 m
Geological Potencial
>540,000 MT Key
High grade intercepts
High grade (1 2010 Program (2700 m)
Structure) Oxide- Sulfurs Limit
36
Advancedprojects:Crespo (Peru)
ReasonswhyCrespo willbeamine
Projectnextsteps
2010 2011
Crespotimetable
Q2 Q3 Q4 Q1 Q2 Q3 Q4
Resourceadditions
Scopingstudy
Engineeringstudies
Undergroundexplorations
37
Advancedprojects:Inmaculada (Peru)
38
Companymakers
39
CompanyMakers:Victoria(Chile)
JVwithIronCreekCapitalCorp.alongthehighly
prospectiveDomeyko faultzone
36,050hectares
Righttoearnin60%
Drillinginitiatedin2009atVaquillas
disseminatedAuAgtarget,recognised800m
alongstrike
Significantinterceptsofhighgradematerial
Width Au(g/t) Ag(g/t)
(m)
8.00 10.5 30
2.00 28.6 74
40
40
Victoria:Vaquillas Target Disseminatedsystem
Vaquillas
Interpretation
North Soil Magnetometry
Section
Key
2010 Drilling (MHC)
Pit Section Drilling traces 2010
2009 Drilling (MHC)
Drilling traces 2009
Historical drilling
Section
South Fault
Section Pit limit
Soil Anomaly
Low magnetic
Outcrop
41
Victoria:VidaTarget
42
Victoria:VidaTargetVCNRC10004
E E
(includes
43
CompanyMakers:Josnitoro (Per)
100%ownedproject
10,500hectares
Potential:+2moz Aueq.
Mineralisedcuarcites withvisiblegold;
mineralisationstartsatsurface
Drillingtostartin2010
44
CompanyMakers:Mercurio (Mxico)
45
CompanyMakers:Apacheta Project Largest
alterationinSouthPeru
9000Hectares 100%owned
project
30km2alterationzone
46
Company
Makers:
Intrusiv Shales &
Guerrero
e Sandston
e Project
CorazndeTinieblasnorth
reduction
Intrusiv MAINAREASOFINTEREST
e
Limestone SKARNMINERALIZATION
Areawithgoldanomalies
identifiedthrough
geochemicalstudiesof
thestreamsediments
Intrusiv Guerreroprojectshowssimilarcharacteristicsto
e othersimilardepositslikeNukay,LosFilos and
Bermejal:
Hostrock
Intrusioncomposition
Tectonicenvironment
5 kilometres
EmplacementLevel
Intrusiv
Natureofmineralisation(Skarns,hornfels)
e CorazndeTinieblassouth
reduction
47
Company
maintainers
48
CompanyMaintainers:CerroBlanco(Per)
100%ownedproject
AuAgepithermalveins,lowsulphidation
Veinsinoldmineworkingssampledaveraging:
49
CerroBlanco:ExplorationCluster
N
100%owned project
8341500
8341500
AuAg Epithermal Veins,LowSulphidation
EIAinpreparation,landowners permits in
V-7
progress.
8341000
8341000
79
V-6
70
80 Ground mag and IP/Resistivity arrayto be
78
V-5
80 donein2010
80
8340500
8340500
3,200mDiamondDrilling starting inJune
V-4
77
2010
78
V-3
V-2 80
722500 723000 723500
V-1
80
75 250 m.
V-3V-2
V-1
V-4
V-5
V-6
V-7
50
CerroBlanco:ProjectVein4
Seccion
Longitudinal
52
54
53
20
6 66 67
55
58 57 5 20
20
5820 20 20 20 20
20
59
2 0 61
0
20 0
2
Entrance to old
02
6
26
63
20
64
20 labour
65
20
20
51
CompanyMaintainers:AstanaFarallon (Per)
100%ownedproject
3,050m.ofdiamonddrillingstartedinMay2010
52
AstanaFarallon:ExplorationCluster
Au-Ag Epithermal Intermediate
N Sulphidation (Farallon), and High
LO
ASTANA A
L Sulphidation (Astana).
R 8361000-N
FA
Landowner permit granted until end of
diamond drilling campaign
8360000-N
Detailed EIA in progress
500 m.
3,050 m. of diamond drilling started in
May 2010, once EIA is approved
53
AstanaFarallon:Firstpassdrillprogram
5000
FAR-003
FAR-006 FAR-005
2.00 2.16 90.50
2.00 0.77 1.70
177 2.35 22.80
4900 FAR-008
2.25 0.63 81.40
PROYEC
TO R A M PA DDH-02 DDH-04
4800 DDH-01
PROYECTO GALERIA NIV. 4780
DDH-03
4700
SONDAJES ANTIGUOS 100 m.
SONDAJES PROGRAMADOS 2010
54
CopperProjects
55
FormerSouthwestern copperproperties
56
Jasperoide:(700hectares) highgradecopper
manto
OutstandingCuandAutargets
Criticaltoconsolidatewith
Zamin Greatiam 10&70claims.
113m@1.13%Cu,0.32g/t Au
Zamin GreatiamAu70
Includes31m(85116)@3.37%Cu,0.46g/t
22m@2.44%Cu,0.72g/t Au
FlatlyingenrichedCuzone
Hochschild
1.2m@27.2g/t Au
Vertical(?)epithermalgoldevent.
Trench24:11m@19.50g/t Au
Zamin Greatiam 10
10MTofenrichedCuox?
CU
! < 500 ppm +1.0MozAunotunrealistic
! 5 00 - 5 000 ppm
! 5 000 - 10000 ppm
! > 10000 ppm
57
Jasperoide:EWSection
58
CorporateDevelopment
59
LakeShoreGold
Ownership:38%
LargelandpropertiesintheprolificTimminsGoldCampin
Ontario,Canada
Rapidlyevolvingtoproductionstagein2010,commercial
productionexpectedinQ42010
Potentialtoproduceover300,000ouncesofgoldby2013
Lowcostproduction
Reserves&Resources
Source:PublicinformationfromLakeShoreGoldCorp.
60
LakeShoreGold
Explorationupside:
Latestdevelopments:
2010Expectedproduction:50Koz fromTimminsand15Koz
fromBellCreekandThunderCreek
Companyanticipatesending2010atmonthlyproduction
rateof10Koz
CurrentlyworkingtowardspreparingNI43101compliant
resourceestimatesforBellCreekandThunderCreek
BellCreekMillexpansion:Phaseone(from1,500to2,000
tpd)inprogress,completionscheduledforQ42010
ThunderCreek:
200Ldriftdriven850mts(75%complete)
650Ldriftdriven280mts(35%complete)
Source:PublicinformationfromLakeShoreGoldCorp.
61
LakeShoreGold:GoldRiverTrend
62
LakeShoreGold:BellCreekComplex
63
GoldResourceCorporation
LocatedinsouthernMexico,30%ownership
Production target of 70,000 ounces of gold in
first12monthscommercialproduction
Commercial production expected to begin in
2010
Latestdevelopments:
February: El Aguila Mill produced its first
gold and silver concentrate and
announcementofanexplorationprogramme
expansionof6,000mts
April: El Aguila Mill shipped its first
concentrateforsaletoCormin Mexico
May: GRC continues to rampup nearing
Commercial Production at the El Aguila
project
(1)Operationsneedtoachieve+80%metallurgicalrecovery
rangeat+80%throughputcapacity
64 64
GoldResourceCorporation
Explorationupside
Width(m) Au(g/t) Ag(g/t)
0.73 9.87 598.0
0.55 0.07 91.4
0.64 14.20 80.4
0.30 9.05 57.0
0.73 0.49 136.0
Source: Company press release 02-jun-2010 (El Aguila
project)
EstimatesofinplacemineralizedmaterialattheArista
deposit(ElAguila Project):
Tonnes Au Moz Au
Ag(g/t) Cu% Pb % Zn%
(million) (g/t) Eq
3.0 6.50 506.0 0.60 2.24 6.75 2.3
Source: Company press release 01-dec-2009
65
GoldResourceCorporation(GRC):Significant
potential
ElAguila openpit Arista vein
66