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CORPORATE PRESENTATION
November 2018
TSXV: PRZ
OTCQB: PRZFF
FSE: MQSP
HIGH GRADE COPPER IN
MEXICO AND GOLD IN
BRITISH COLUMBIA
Cautionary StatementFORWARD LOOKING STATEMENTS
This presentation contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws. These forward-looking statements may include statements regarding the successful completion of financings by the Corporation, the perceived merit of properties, exploration results and budgets, mineral resource estimates, the potential to increase estimated minerals resource work programs, capital expenditures, operating costs, resource estimates and similar statements relating to the economic viability of a project, timelines, strategic plans, including the Corporation’s plans and expectations relating to the Manto Negro Copper properties (collectively, “Manto Negro”), the Kena and Daylight Gold-Copper properties (collectively, “Kena”) and the Toughnut property in the Nelson area of British Columbia and market prices for precious metals, or other statements that are not statements of fact. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Statements concerning mineral resource estimates may also be deemed to constitute “forward-looking statements” to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Forward-looking statements and forward-looking information are not guarantees of future performance and are based upon a number of estimates and assumptions of management at the date the statements are made including without limitation, assumptions about: future prices of copper, gold and other metal prices, the success of proposed exploration and development activities, successful exploration and development of the Manto Negro, Kena and Toughnut properties, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, government regulationof the Corporation’s activities, environmental risks and expenses, labour stability, stability in market conditions, availability of sufficient equipment and labour, accuracy of any mineral resources and anticipated costs and expenditures and the Corporation’s ability to achieve the Corporation’s goals.
While the Corporation consider these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual performance, achievements, actions, events, results or conditions to be materially different from those projected in the forward-looking statements, including price volatility of the Corporation’s securities, further potential of the Corporation’s properties, the need for additional capital and the Corporation’s ability to raise additional funds, land title issues and risks, local community issues, the estimation of mineral resources, conclusions of economic evaluations, the realization of mineral resource estimates, the timing and amount of estimated future production, quality and marketability of mineral product, limited lives of mines, reclamation obligations, the costs of production, capital expenditures, mining or processing issues, currency exchange rates, government regulation of mining operations, environmental risks, risk relating to infrastructure, permitting and licenses, litigation, mining tax regimes, insurance and uninsured risks, competition, adequacy of financial resources, no historical production or revenues therefrom, dependence on outside parties, dependence on key personnel, conflicts of interest and other risks of the mining industry and those factors disclosed under the heading “Risk Factors” in the Corporation’s documents filed from time to time with the securities regulators in the provinces of Canada. This list is not exhaustive of the factors that may affect any of the forward-looking statements. Forward-looking statements are statements about the future and are inherently uncertain, and the Corporation’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Corporation, or industry results, may vary materially from those described in this presentation. In addition, a number of other factors could cause the actual results, performance or achievements of the Corporation to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements.
The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Corporation at the time of preparation, may prove to be incorrect and readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Corporation does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Any financial outlook or future-oriented financial information as defined by applicable securities legislation has been approved by management of Prize Mining as of the date hereof. Such financial outlook or future-oriented financial information is provided for the purpose of providing information about management's current expectations and goals relating to the future of Prize Mining. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Scientific And Technical Disclosure
Robert Archer, P. Geol., a consulting geologist, is a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, and has reviewed and approved the scientific and technical information in this presentation.
All technical and scientific information with respect to the Manto Negro Property contained in this presentation has been taken from the technical report (the “Manto Negro Technical Report”) entitled “Technical Report Manto Negro Property Coahuilla State, Mexico” dated March 26, 2018 with an effective date of March 14, 2018 prepared by Norwest Consultants Ltd. of Calgary, Alberta on behalf of Prize Mining or is based on supporting documentation provided by Norwest and has been reviewed and verified by Derek Loveday, P.Geol., or William A. Turner, P. Geol., each of Norwest and Qualified Persons. A copy of the Manto Negro Technical Report is available on the Prize Mining website at www.prizemining.com or on SEDAR profile of Prize at www.sedar.com.
All technical and scientific information with respect to the Kena Project contained in this presentation has been taken from the technical report (the “Kena Technical Report”) entitled “Technical Report for the Kena Project, Nelson, BC” dated June 2, 2017 with an effective date of January 7, 2017 prepared for Prize Mining Vivian Park, P.Geo., VPG Geosciences, and Gary H. Giroux, P.Eng., Giroux Consultants Limited (Ltd.) or is based on supporting documentation provided by either of Vivian Park or Gary H. Giroux and has been reviewed and verified by either such person, each Qualified Persons. A copy of the Kena Technical Report is available on the Prize Mining website at www.prizemining.com or on SEDAR profile of Prize at www.sedar.com.
This presentation discloses mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
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Highlightso Manto Negro Copper Project
o High grade district-scale copper project in Coahuila, Mexico
o Sediment-hosted stratabound copper deposit, analogous to world class Kupferschiefer deposits in Europe
o Grades at surface from 1% to over 5%
o 17,965 hectares of land, 100 % owned, no royalties, 30+ high grade showings over a 50 kilometer trend
o Kena Gold Silver Project
o 481,000 oz of gold in NI43-101 Indicated Resources and 1,318,000 oz in Inferred Resources in SE British Columbia, Canada
o The Company and the Team
o Expert management and board with proven success of creating shareholder value by building valuable mining companies around the world
o Recently raised over CA$9 million, with diamond drill programs underway in both Mexico and British Columbia
Prize Mining Team
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Michael McPhie, B.Sc., M.Sc., QEP - President and CEO, DirectorMining industry executive with over 20 years international experience developing projectsfrom early exploration to full operations. Former Managing Director of JDS Copper,President and CEO of Curis Resources, Director and Executive Vice President ExeterResources and currently Chair of the Board of IDM Mining Ltd. and Ridley TerminalsCorporation.
Feisal Somji, B.Sc., MBA - Executive ChairmanMining industry executive with over 20 years international experience. Foundingshareholder of Mexican Silver Mines, an exploration company focused on Mexico and SouthAmerica where he held position of President when it was merged with Rio Alto.
Robert Archer, P.Geo. – Director, Technical Committee ChairCo-founder, director and former CEO of Great Panther Silver Limited, a silver-gold producerwith operating mines in Mexico and another under development in Peru. Mr. Archer hasmore than 35 years experience in the mining industry with senior and junior companies,including more than 20 years in Mexico.
David Schmidt, B.Asc. – DirectorMining industry consultant with over 15 years experience in financings, corporate andfinancial disclosure and corporate development. Currently a director of several publiccompanies.
Raul Ramirez, BA – DirectorOne of two principals of Scion Mines SA de CV, which was purchased as part of theManto Negro acquisition. President and CEO of Molycomex, a private Mexicancorporation involved in mining exploration in Mexico. Founding shareholder of MexicanSilver Mines and VP Operations prior to merger with Rio Alto.
Yuyiang Liang, CPA, BBA – Chief Financial OfficerYuying Liang is a Senior Associate at BridgeMark Financial Corp., where she providesfinancial reporting services for both public and private companies. She has extensiveexperience in public company environments and full cycle accounting, as well asproviding accounting services for business acquisitions and RTO. Ms. Liang holds theprofessional designation of Chartered Professional Accountant (CPA).
Richard Dufresne, B.Sc., P.Geo – Geological Project ManagerMr. Dufresne is a professional geologist with over 30 years of global experiencesuccessfully developing and leading mineral exploration programs. He spent half of hiscareer working with major mining companies, Falconbridge Ltd and Anglo AmericanExploration Canada, where he held senior and managerial positions. Later he joinedjunior mining companies as project manager and vice president of exploration. He wasinvolved in projects in Canada, Mexico, Peru, and Ivory Coast. Mr. Dufresne is a Geologygraduate from University of Montreal and is a registered member of Engineers andGeoscientists BC.
Proven Track Record of
Shareholder Value Creation
Extensive Technical, Financial
and Capital Markets Expertise
Committed to Industry Leading CSR and
Environmental Performance
Prize Mining Capital Structure (as of October 31, 2018)
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Capitalization
Share Price (C$) $0.09
Basic Shares Outstanding M 124
Options Outstanding M 4.8
Broker Warrants Outstanding M 40.7
RSUs Outstanding M 2.4
Basic Market Capitalization (C$) $11M
11%
24%
65%
Insider Institutions/HNW Retail
6
Manto Negro Copper Project
Coahuila State, Mexico
o “Infrastructure development in major countries such as China and India and the global trend towards cleaner energy will continue to support growth in copper demand.” International Copper Study Group, 2018
o “We believe that copper consumption is entering a new growth phase driven by an ‘electrifying society’.” DBS Bank, Singapore
o “Copper consumption from electric vehicles, estimated at 0.9% of the global total in 2017, will rise to 8.2% of 2017’s total copper demand in 2030.” DBS Bank, Singapore
Copper Market
10
15
20
25
2012 2014 2016 2022 2028 20302018 2020
Base Supply
2024 2026
Demand
Source: Wood Mackenzie Q3 2017. Rio Tinto. Includes Wood Mackenzie estimates of production from Oyu Tolgoi underground.
Deficit
Copper supply/demand(million tonnes)
Surplus
Manto Negro Copper Project
8
o Sediment-hosted stratabound copper deposit
o Analogous to the Kupferschiefer deposits of Poland
& Germany and Zambian/DRC Copper Belt that are
some of the richest globally
o 100 percent ownership of approximately 17,965
hectares (180 km2) - first time this area has been
consolidated in one district-scale package
o District scale potential with 35 high grade Cu and Ag
surface showings and underground (artisanal)
exposures over 50+ km trend
o Mineralized thickness from 1.5m to 15m
o Zones average 0.73% to 5.5% Cu, 19 to 793g/t Ag
with richer Cu-Ag mineralization outcropping at
various locations
Rich copper mineralization from Ojitos showing - chalcocite (black)
malachite (green)
Sediment-Hosted Stratabound Copper Deposits
9
o Largest deposits of this type are in Central African Copper Belt but Manto Negro is more
analogous to Kupferschiefer deposits of Poland & Germany
Kupferschiefer Deposits
o “by far the most important primary European metal source” (Borg, et al, 2012) and one of the
largest deposits of this type in the world
o Laterally extensive – mineralized trend is ~600 kilometers E-W, with individual deposits
typically 10’s of square kilometres
o Consistent grades & thicknesses
o Above features lead to larger operations with economies of scale & significant output
o KGHM is largest producer in Poland, operating 3 mines, concentrators & smelters
o Underground mines, room & pillar method, up to 1,500m deep, 1-15m thick
o Processing ~32 million tonnes per annum
o 2015 resources of 1.7 billion tonnes at 1.84% Cu & 52.5g/t Ag
➔ 31.9 million tonnes Cu & 2.9 billion ounces Ag
o KGHM has mining & exploration rights to >450 km2
Manto Negro Project – Location & Infrastructure
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o Coahuila State, NE Mexico
o Safe, easy road access
o Located proximal to mid-size cities with access to
skilled mining labour
o Excellent working relationship and agreements in place
with two local ejidos
o Major highway and rail proximal to property
o High voltage power nearby
o Water available on site for future development &
production
Manto Negro - Geology
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o The Manto Negro area lies within the Mexican Fold & Thrust Belt
and is underlain by a NW trending anticlinal structure dominated by
lower Cretaceous clastic and carbonate rocks with a few scattered
exposures of Permian and Tertiary intrusive rocks.
o Copper-silver mineralization is associated with the contact of the
sandstone (red-beds) of the San Marcos formation and the overlying
limestone of the Cupido formation. Carbonaceous sediments
frequently lie at the contact and all three rock types can be
mineralized. The geological setting fits well with a sediment-hosted
stratabound copper-silver deposit model.
o Within the Manto Negro Project, significant exploration potential is
indicated by small, historic mines and prospects along the contact of
the San Marcos – Cupido formations for 40 to 50 kilometers.
o Typical thicknesses of mineralized horizons are in the 1-10 meter
range, although mineralization has locally been found over 15+
meter intervals.
Currently Drilling at El Granizo and Pilar Grande Deposits
12
o Testing two areas 18 kilometers
apart but on same mineralized
horizon, underscoring the district-
scale potential
o 3,000 meters in 30 holes planned
o Drilling is testing continuity and
style of mineralization
o Some core could potentially be
used for preliminary metallurgical
testing
13
El Granizo Historic Mineo Underground channel sampling:
o Weighted average of 2.62% Cu and
50g/t Ag over 1.7 meters thickness
over 45 X 50 meter area
o Surface channel sampling:
o 2.73% Cu and 58g/t Ag over 6.0m
o 1.78% Cu and 40g/t Ag over 5.2m
o 1.65% Cu and 36g/t Ag over 7.0m
o Current drill program will test a 550m X
100m area with 1,500m in 15 holes
Hole number Thickness (m) Cu% Ag g/t
DDHMN-18-01 4.40 1.02 28
DDHMN-18-02 3.55 1.69 28
Pilar Grande Historic Mine
14
o Pilar Grande Mine workings cover
240 meters on 4 levels and 80 meters
down dip
o Underground channel sampling
returned weighted average of 2.35%
Cu and 184g/t Ag over 2.35m
thickness
o Current drill program will test a 200m
X 50m area with 1,500m in 15 holes
Hole number Thickness (m) Cu% Ag g/t
DDHDI-18-01 4.10 0.88 49
DDHDI-18-02 3.40 1.58 122
Pilar Grande / Don Indio Area
15
Multiple historic mines and prospects over 5km
o El Rincon:
o 2.13% Cu and 63g/t Ag over 3.41 meters
o La Cuchilla Mine:
o 0.99% Cu and 38g/t Ag over 4.20 meters
o 11.40% Cu, 622g/t Ag; 3.01% Cu, 436g/t Ag; and 2.80%
Cu, 280g/t Ag in grab samples from old dumps
o El Tajo Prospect:
o 1.26% Cu and 90g/t Ag over 2.50 meters
o El Nopal Prospect:
o 1.10% Cu and 33g/t Ag over 5.90 meters
o El Palmito Prospect:
o 0.81% Cu and 27g/t Ag over 3.65 meters
o Las Palmas Prospect:
o 0.81% Cu and 78g/t Ag over 1.80 meters
o San Marcos Prospect:
o Up to 2.11% Cu and 128g/t Ag in old dumps
o La Abandonada Prospect:
o 1.5% Cu and 47g/t Ag
Madero Concession Block
16
o More than 9 kilometer strike length
o 10 new copper prospects
o 3 major target zones
o Los Ojitos: 45.5% Cu and >1,500g/t Ag
over 0.25 meters
Copper Recoveries - Oxide
2012 metallurgical recovery tests on oxide material indicated:
➢ 93% Cu recoveries
➢ low acid consumption
Metallurgical program being initiated by Prize as part of 2018/2019 field work
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Program Currently Underway
o Phase 1 drillinng: 3,000 meter, 30-hole
diamond drill program at El Granizo and Pilar
Grande Mines
o Data compilation, structural and stratigraphic
mapping and geological model development
o Metallurgical program to confirm and further
define copper and silver processing options
and recoveries
o Mining engineering assessment of key
showings
o Ongoing community engagement
Kena Gold-Silver ProjectKootenay-Boundary Region, British Columbia
19
o Prize Mining’s advanced stage Kena Project hosts a NI43-101 gold resource of 481,000
ounces Indicated and 1,318,000 ounces Inferred
o Historic mining district with Prize claims hosting four past producing mines with grades
as high as 37g/t gold
o Prize consolidated land package of Kena, Toughnut and Daylight Properties for first time
o Recently completed 2,700 meter exploration diamond drilling program with assays
pending.
Location and Infrastructure
20
o Kootenay Boundary Region of
southeastern BC
o Easy access by road and rail
o Power lines cross the property
o Local service and supply companies
o Historic mining district with Teck
Resources Trail Smelter nearby
Kena Project
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THREE IMPORTANT GOLD AND COPPER-
GOLD ZONES
1. Kena Property
o KGM Gold Deposit - Bulk tonnage gold
deposit with high grade zones
o Copper King Zone - Bulk tonnage
porphyry copper-gold mineralization
2. Toughnut Property
o Gold Eagle trend with grades up to 25g/t
gold
3. Daylight Property
o High Grade Gold Veins characterized by
four historic mines
Kena Property
PORPHYRY GOLD DEPOSIT
o 24,890,000 tonnes INDICATED Resources
o Average grade 0.60g/t Au (Using a 0.3g/t
Au cut-off)
o Containing 481,000 ounces GOLD
o 85,790,000 tonnes INFERRED Resources
o Average grade 0.48g/t Au (Using a 0.3g/t
Au cut-off)
o Containing 1,318,000 ounces GOLD
* Mineral resources that are not mineral reserves do not have demonstrated economic viability
** NI 43-101 Mineral Resource Estimate by Giroux and Park (2017) available on Prize Mining website and on SEDAR
Toughnut Property
23
PREVIOUS DRILLING HIGHLIGHTS
o Gold Eagle Mineralized Trend: 38
significant results with >1.0g/t Au
o Gold Eagle Trend North: 5.45m of
2.95g/t Au
o Gold Eagle Trend South, Open
Mineralized Trend: 1m of 25g/t Au, 2m
of 5.58g/t Au
Daylight Property
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TWO LARGE PROSPECTIVE GEOCHEMICAL
TRENDS
o Great Western anomaly: 48 soil samples over
1g/t Au
o The Starlight-Daylight trend: 9 soil samples
>1g/t Au AND highest gold-in-soil ever
recorded on the property of 8.0g/t Au
PREVIOUS DRILLING HIGHLIGHTS
o Great Western anomaly: 32.6m of 1.16g/t Au
including 0.9m of 63.7g/t Au AND 71.22m
of 1.09g/t Au
o Starlight-Daylight trend: 5m intercept of
2.76g/t Au including 1m of 5.77g/t Au
Near Term Catalysts
Activity Timeline
✓ Phase 1 and 2 Drilling at Kena Gold-Silver
Project - assay results
November/December
2018
✓ Preliminary assay results from Manto Negro November 2018
✓ Complete regional assessment November 2018
✓ Complete Phase 1 Drilling Program at Manto
Negro
Q1 2019
✓ Initiate Phase 2 Drill Program at Manto Negro Q1 2019
✓ Initiate Phase 3 Drilling at Kena Q1 2019
Invest in Prize because…..
Attractive high value opportunities in two great jurisdictions
Opportunity to take advantage of the electrification metal prospects of the copper market in addition to the highly prospective gold and silver markets within one company
Board and management team with proven track record of creating shareholder value in both the near and longer term
Committed to highest level of social and environmental performance
Compelling value proposition with future share price appreciation driven by discovery, resource expansion and
project advancement
www.prizemining.com
27
OTCQBPRZFF
TSX.VPRZ
FSEMQSP
Investor Relations
Walter Spagnuolo, Manager, Investor [email protected]: 604-343-8661
Mailing Address
Prize Mining Corporation645 – 7th Avenue SW, Unit 2650Calgary, Alberta T2P 4G8Tel: 403-236-2222