Advanced Lead-Zinc Resource Development PDAC. 2017 Pegmont Deposit - - PowerPoint PPT Presentation

advanced lead zinc resource development
SMART_READER_LITE
LIVE PREVIEW

Advanced Lead-Zinc Resource Development PDAC. 2017 Pegmont Deposit - - PowerPoint PPT Presentation

Advanced Lead-Zinc Resource Development PDAC. 2017 Pegmont Deposit Queensland, Australia IMPORTANT INFORMATION Cautionary Statement on Forward Looking Information This presentation is not directed to, or intended for distribution to or use by,


slide-1
SLIDE 1
  • PDAC. 2017

Pegmont Deposit Queensland, Australia

Advanced Lead-Zinc Resource Development

slide-2
SLIDE 2

www.vendettaminingcorp.com | TSXv : VTT

2

IMPORTANT INFORMATION

Cautionary Statement on Forward Looking Information This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation does not constitute or form a part of, and should not be construed as an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of Vendetta Mining Corp., nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Certain information in this presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively "forward-looking statements"). All statements, other than statements of historical fact are forward looking statements. Forward-looking statements are based on the beliefs and expectations of Vendetta Mining Corp. as well as assumptions made by and information currently available to Vendetta Mining Corp. management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, all costs varying significantly from estimates, production rates varying from estimates, changes in metal markets, changes in equity markets, the proposed use of net proceeds from private placements, availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, ability to complete future drilling programs, drilling program results varying from expectations, delays in obtaining survey results, success of future development initiatives, the completion and implementation of a preliminary economic assessment, pre-feasibility or feasibility studies, competition, operating performance, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from local authorities, community relations, and other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Although Vendetta Mining Corp. believes that assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, Vendetta Mining Corp. disclaims any intent or obligation to update any forward-looking statement. Although Vendetta Mining Corp. has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and Vendetta Mining Corp. disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law. About Reserves and Resources This presentation uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that: (a) mineral resources are not economic mineral reserves; (b) the economic viability of resources that are not mineral reserves has not been demonstrated; and (c) it should not be assumed that further work on the stated resources will lead to mineral reserves that can be mined economically. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility

  • r pre-feasibility studies or economic studies except for certain preliminary economic assessments.

Qualified Person Peter Voulgaris, MAusIMM, MAIG, a Director of Vendetta, is a non-independent qualified person, as defined by NI 43-101. Mr. Voulgaris has reviewed the technical content of this Presentation and consents to the information provided in the form and context in which it appears.

slide-3
SLIDE 3

www.vendettaminingcorp.com | TSXv : VTT

3

PEGMONT – ADVANTAGES

  • Queensland, Australia: Top Tier Mining Jurisdiction, Safe, Stable and Transparent
  • Infrastructure: Roads, Haul Roads, Rail, Existing Mines & Natural Gas Pipeline
  • Close to Smelters: Lead (Glencore, Mt Isa) and Zinc (Sun Metals, Townsville)
  • Land Package: 3 Mining Leases (pre-native title) and 2 Exploration Permits
  • Resource Growth: NI 43-101 Mineral Resource update planned in Q4 2016/17
  • Geological Model Confirmed: Zinc Grades Increasing & Second Lens Discovered
  • Open: Down Dip and Along Strike
  • Shallow Deposit, Sulphide Mineralisation from 25 metres depth
slide-4
SLIDE 4

www.vendettaminingcorp.com | TSXv : VTT

4 Michael Williams

B

President, CEO, Director

Over 20 years of experience as a senior executive within the mining industry. Experienced in the structuring, administrating and marketing of Toronto Stock Exchange listed companies. Served as Executive Chairman

  • f numerous public companies

including Underworld Resources Ltd, which was sold to Kinross Gold Corp in 2010 for $138,000,000. Established an international banking and financing network that includes extensive contacts with both institutional and retail investors. Raised significant capital funds for advanced exploration and development projects.

Peter Voulgaris

B.Eng.(Hons), MEngSci. MAusIMM, MAIG

Director, Qualified Person

Over 20 years of international mine operations, project management and development experience. Including Mount Isa Mines’ Hilton/George Fisher lead-zinc- silver mine, Placer Dome’s Osborne copper-gold and Granny Smith gold mines, and Newmont’s Callie gold mine. Significant mine development and project management experience as Technical Services Manager at Ivanhoe’s world class Oyu Tolgoi copper- gold project in Mongolia and as Expansion Study Manager for MMG at Sepon copper-gold mine in Laos. Most recently Vice President of Business Development for the TSX listed Minco Group of Companies.

David Baker

MBA CA

Director (independent)

Has over 20 years of major mine operations and project experience. Spent 15 years with Ivanhoe Mines Group of Companies in several capacities including: Project Controller, Manager Corporate Development and Finance, and Vice President Treasurer. At Ivanhoe Minings' Oyu Tolgoi project managed the pre- feasibility study and directed the economic modeling for the negotiation of the Investment Agreement with the Government of Mongolia. Led the Oyu Tolgoi financing due diligence program for a $4 billion debt finance facility. Currently a consultant whose clients include private and publicly listed mining companies and Governments.

SENIOR MANAGEMENT AND BOARD OF DIRECTORS

Doug Flegg

MBA CFA

Director (independent)

Has over 30 years Mining and Mining Finance Experience. The last 10 years as the Managing Director of Global Mining Sales at BMO Capital Markets (BMO). At BMO, was involved in over 200 mining financings exceeding $25 billion in value. 11 years experience as Mining Portfolio Manager with UBS Global Asset Management Provided advice to senior management teams on strategic issues involving Capital Markets, Financing and Corporate Development Currently a Managing Partner (mining) at Cairn Merchant Partners a Merchant Banking and Advisory Firm based in Toronto.

Doug Ramshaw

B.Sc.(hons), A.R.S.M

Director

Former Mining Analyst for an independent brokerage firm in London, U.K. Mining Geologist, Royal School

  • f Mines, Imperial College,

London, U.K. 20 years experience in the industry and capital markets. Involved in the raising of over +$100 million in mining equity financing. Provides financing, corporate governance and business development advice to junior mining companies. Director of several publicly traded mining exploration companies.

slide-5
SLIDE 5

www.vendettaminingcorp.com | TSXv : VTT

5

CONSULTANTS & ADVISORS

David Esser

B.Sc. (Hons) Geology, MAIG

Contract Exploration Manager

Over 25 years of near mine and green fields exploration including former twelve years with Placer Dome holding positions

  • f

increasing responsibility, culminating as Exploration Manager at the Osborne copper-gold mine, including leading the team that discovered the Kulthor copper-gold deposit. Recently Principal Geologist at Chesser Resources’ Kestanelik epithermal gold project in Turkey.

Geoff Richmond

B.Sc. (Metallurgy) FAusiMM

Contract Chief Metallurgist

An accomplished metallurgist with over 45 years of mineral processing experience. Most recently, Mr. Richmond spent 6 years as Principal Metallurgist at MMG Limited and its predecessor companies. He was project metallurgist during the detailed engineering phase at Las Cruces Mine in Spain (now First Quantum) and was Laboratory Manager at a

  • ne
  • f

Australia’s leading metallurgical laboratories which is now part of the ALS Metallurgy group in Tasmania, Australia. Prior to these appointments Mr. Richmond spent 14 years working in operations and process improvement at the Hellyer Zinc-Lead-Copper mine, a significant zinc and lead producer at the time.

Ocean Partners

Concentrate Marketing Advisor

Ocean Partners Holdings Limited is a base and precious metals concentrate trader providing trading, tolling, agency and consulting services to many of the world’s leading mining and smelting companies. Ocean Partners has global reach through local offices or agents throughout the world. In addition to the services mentioned above, Ocean Partners has significant experience in project and structured finance in the form of debt and equity financing agreements tied to

  • fftake

and has assisted in raising

  • ver

US$1B for mining companies since its inception.

Glencore – Lead-Zinc ore from George Fisher Mine being trucked 20km to Mt Isa Mine for processing

Images in this presentation by Roslyn Budd, Budd Photography, Townsville, www.buddphotography.com.au

slide-6
SLIDE 6

www.vendettaminingcorp.com | TSXv : VTT

6

CORPORATE STRUCTURE*

Shares Issued and Outstanding 81,165,396 Warrants ($0.35 | exp. 08/17) 4,326,885 Warrants ($0.13 | exp. 09/18) 1,010,000 Warrants ($0.10 | exp. 05/18) 41,470,000 Options ($0.25 | exp. 10/18) 1,125,000 Options ($0.15 | exp. 12/21) 5,100,000 Fully Diluted 134,197,283 Management Ownership ~12% Institutional Shareholders: Resource Capital Fund VI LP 28% Solitario Exploration and Royalty 9.9%

Refined Lead – Glencore’s Mt Isa Lead Smelter Refined Zinc – Sun Metals Zinc Smelter Townsville * As of 28th February 2017

slide-7
SLIDE 7

www.vendettaminingcorp.com | TSXv : VTT

7

VTT SHARE PRICE

Copper-Gold Discovery $2.5M Finance Closes Drilling Commences BHZ Assay Results Zone 5 Assay Results Zone 5 & Z Fold Assay Results

$0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000

VTT Price CA$

Volume

Average Volume Last 12 Months: 253,349 Last 6 Months 424,717

slide-8
SLIDE 8

www.vendettaminingcorp.com | TSXv : VTT

8

TRANSACTION (ALL AMOUNTS IN AUSTRALIAN DOLLARS)

  • Option to acquire 100%
  • $2.25m cash payments over 4.5

years

  • $3m in exploration expenditures over

3 years +$2.2m completed

  • 17,000 meters drilling over 3 years,

>10,500 m completed

  • $3m advanced royalty payment at

exercise of option

  • 1.5% NSR or $1.05/t Run of Mine

royalty

  • Royalty credit of $5.25m, equal to
  • ption payments and advanced

royalty

Amended Agreement December 2015 Status On TSX:V Approval $250,000 Paid 2014 Drill Program Completed by Vendor $350,000 Paid During 2014 2,000 m of drilling Complete September 2015 $800,000 in exploration Complete February 2016 $150,000 Paid August 2016 $1,000,000 in exploration & a minimum 3,000 m of drilling prior to April 2016 Complete February 2017 $350,000 Paid August 2017 $1,200,000 in exploration ~$400,000 completed,

  • ngoing

February 2018 $500,000 August 2018 Total aggregate of 17,000 m of drilling >10,500 m completed,

  • ngoing

November 2018 $1,000,000

slide-9
SLIDE 9

www.vendettaminingcorp.com | TSXv : VTT

9

MOUNT ISA – MCARTHUR RIVER PROVINCE – LEAD & ZINC

McArthur River – Glencore

  • Production cut backs

Myrtle & Teena – Teck (to 70%) & Rox (30%)

  • Teck exercising pre-emptive right to acquire Rox’s 30% for total value of $19.6m

Century – MMG, Open Pit

  • Closed

Lady Loretta – Glencore

  • Care and maintenance – ore reserves preservation

George Fisher & Hilton – Glencore

  • George Fisher Production cut backs
  • Handlebar Hill Open Pit on care & maintenance due to wall stability problems in

host shales Mt Isa – Glencore

  • Black Star Open Pit closed October 2016

Dugald River – MMG

  • Project approved for 1.5Mtpa down from 2Mtpa due to adverse ground

conditions in shales

  • In construction

Cannington – South32

  • Grades declining year on year
  • Potentially expanding from 3.2 to 4Mtpa

Source: various company news releases, annual reports and presentations.

slide-10
SLIDE 10

www.vendettaminingcorp.com | TSXv : VTT

10

INFRASTRUCTURE

Australia^ 2nd Largest lead producer 2nd Largest zinc producer 4th Largest silver producer Queensland* Australia's largest producer of copper, lead and zinc* Home to over 100 metalliferous mines

^ Source: U.S. Geological Survey, Mineral Commodity Summaries, January 2016 * Source: Queensland Government, Business and Industry Portal: http://www.business.qld.gov.au/invest/investing-queenslands-industries/mining/investing-mining-services-industry

slide-11
SLIDE 11

www.vendettaminingcorp.com | TSXv : VTT

11

INFRASTRUCTURE

  • 28 km from South32’s

Cannington Mine, one of the world’s largest lead and silver mines (3.2 Mtpa)

  • 25 km from Chinova’s Osborne

copper-gold Mine (2Mtpa)

  • Concentrate rail loading sidings

at Phosphate Hill and Cloncurry

  • 15 km from a natural gas

pipeline used by Osborne and Cannington Mines

  • Rail line to Queensland smelters
  • Access to other Australian and

Asian lead and zinc smelters through Townsville deep sea concentrate port

Mt Isa, a regional mining centre Concentrate Rail Cars – Mt Isa Townsville Port - Concentrate Shipping Korea Zinc Townsville: Refined Zinc for Export

slide-12
SLIDE 12

www.vendettaminingcorp.com | TSXv : VTT

12

PROJECT EVOLUTION

2014 – 2016 Highlights Zone 5 Drilling^: PVRD017 4.56 m @ 15.60% Pb+Zn (5.45% Pb, 10.15% Zn) PVRD010 4.20 m @ 11.93% Pb+Zn (6.29% Pb, 5.64% Zn) PVRD013 11.81 m @ 9.94% Pb+Zn (6.85% Pb, 3.09% Zn) PMR283 9.0 m @ 13.23% Pb+Zn (6.35% Pb, 6.88% Zn) PMR290 9.0 m @ 8.61% Pb+Zn (5.30% Pb, 3.11% Zn) PMR294 10.0 m @ 8.68% Pb+Zn (4.77% Pb, 3.91% Zn) PVRD030 8.3 m @ 10.73% Pb+Zn (5.82% Pb, 4.91% Zn) PVRD032 7.0 m @ 9.55% Pb+Zn (6.40% Pb, 3.15% Zn) 2014-2016 Highlights Burke Hinge Zone^: PVR019 7.0 m @ 11.52% Pb+Zn (7.79% Pb, 3.72% Zn) PVR021 6.0 m @ 10.11% Pb+Zn (6.98% Pb, 3.13% Zn) PVRD023 4.0m @ 16.83% Pb+Zn (12,28% Lead, 4.55% Zn) PVRD026 6.0m @ 10.41% Pb+Zn (5.94% Pb, 4.47% Zn)

^ Please see the Company’s New Releases for full details, dated the 7th September 2016 and 21st September 2016

1970 Discovery – 1973 Discovered by Placer Prospecting (Placer Dome). Thought to be a single lens, lead dominant deposit. 1971 – 1995 Newmont (operator), Placer, Mount Isa Mines & BHP Joint Venture. 1995 – 2014 Pegmont Mines Ltd. Acquires Claims 2014– Present Vendetta Options Pegmont Deposit Initial NI 43-101 Mineral Resource Estimate Completed Near Surface Sulphide Mineralisation Discovered @ BHZ Second Lens Discovered Zinc Grade Increasing Overall and at Depth New Copper Discovery – separate system

slide-13
SLIDE 13

www.vendettaminingcorp.com | TSXv : VTT

13

GEOLOGY

  • Broken Hill Type deposit : Mid Proterozoic stratiform, hosted in

banded iron formation and garnet rich quartzite

  • Galena and Sphalerite mineralisation, banded semi massive to

massive

  • Country rock is a high grade metamorphic quartzite grading out

to gneisses (meta-sediments)

  • Tight isoclinal folding in Zone 1 and Burke Hinge Zone
  • Flat dipping through Zones 2, 3 and 4, each zone separated by

a drag “Z” fold

  • Upright open folds in Zone 5, two mineralised lenses, zinc

grades increasing

  • Sub-horizontal amphibolite dyke underlies zones 1 to 4 and

cuts the mineralisation at the boundary between Zones 4 and 5

  • Later granite intrusion in the northern end of the project area
  • Remobilisation/concentration of lead & zinc mineralisation into

fold structures

slide-14
SLIDE 14

www.vendettaminingcorp.com | TSXv : VTT

14

BURKE HINGE ZONE (BHZ) – OPEN PIT TARGET

  • Located on mining lease

ML2621

  • Located 300m to the NE of

Zone 2 mineralisation at Pegmont, the bridge between Zone 2 and BHZ remains an exploration target

  • Shallowest known sulphide

mineralisation at Pegmont (commencing approx. 24 m below surface) with Transition (70-80% sulphide) outcropping at surface

  • 250 m Strike length, drilled to a depth of 100 m below surface
  • Metallurgical samples are currently at the ALS Metallurgical Laboratory
  • Burke Hinge Zone is not included in current NI 43-101 Mineral Resource

Estimate, it will be included in the planned resource update See Map Page 10 for location Cross Section Looking South East

slide-15
SLIDE 15

www.vendettaminingcorp.com | TSXv : VTT

15

ZONES 1, 2 & 3 - SHALLOW HIGH GRADE

15 Cross Section Looking North East, see map page 11 for location

  • Located on mining lease ML2621
  • Zones 1 and 2 Open Pit Target - Transition and Sulphide mineralisation, 20 to ~100 m below surface
  • Zones 2 and 3 Underground [Room & Pillar] Target - Sulphide mineralisation – Flat dipping
slide-16
SLIDE 16

www.vendettaminingcorp.com | TSXv : VTT

16

ZONE 5 – INCREASING ZINC GRADES

  • Located on EPM15106
  • Known strike length 500 m
  • Zinc grades continue to improve towards SW and Zinc to Lead ratios approaching or exceeding 1:1
  • Open down dip and down plunge to NE and SW
  • Metallurgical samples are currently at ALS Metallurgical Laboratory
  • Zone 5 is not included in current NI 43-101 Mineral Resource Estimate, it will be included in the planned resource update

Cross Section Looking North East Cross Section Looking North East, see map page 11 for location

slide-17
SLIDE 17

www.vendettaminingcorp.com | TSXv : VTT

17

METALLURGY

  • Open Cycle Flotation Test Work performed on Diluted Composites of Sulphide

Mineralisation from BHZ and Zone 5 Lenses B and C, plus BHZ Transition Mineralisation.

  • Separate, marketable lead and zinc concentrates produced in call cases.
  • Bond Ball Work Index: BHZ Sulphide 16.6 kWh/t and Zone 5 Lens B 19.4 kWh/t,

placing them in the medium to medium hard range respectively.

  • There remains scope to further optimize flotation results.

* Based on one hole, potentially not representative of the Transition Mineralisation at BHZ **Transition Mineralisation is defined as predominately sulphide mineralisation in variably weathered rocks.

ALS Metallurgy Laboratory, Pegmont Lead Rougher Flotation Test

Area Bore Holes Included in Composite Head Grades (diluted) Lead Circuit Zinc Circuit Pb % Zn% Pb Recovery % Concentrate Pb Grade % Zn Recovery % Concentrate Zn Grade %

Sulphide Mineralization

BHZ PVRD023, 024, 026, 027, 041, 042, 043, 044 & 045 5.02 3.03 91.5 70.6 61.8 50.7 Zone 5, Lens B PVRD013, 030, 032, 033, 034 & 037 5.61 4.74 88.5 68.0 75.6 50.1 Zone 5, Lens C PVRD030, 33 & 037 4.30 5.48 83.0 66.1 76.7 50.3 Transition Mineralization** BHZ* PVRD023 3.19 2.90 80.6 57.0 19.3 48.9

slide-18
SLIDE 18

www.vendettaminingcorp.com | TSXv : VTT

18

EXPLORATION UPSIDE

  • Zone 5 Extensions

In the direction of increasing zinc grade there is an additional 2 km of strike length and 2.8 km of down dip available to explore

  • Burke Hinge Zone Repeats

5 km of strike around a large fold structure between BHZ and the “Airport BIF”, possible repetitions of the BHZ geometry, this includes a previously untested IP anomaly

  • New Copper Target
  • PVR040 : 3 m of 3.21% copper, 0.57 g/t gold
  • High grade centred on a 10 m wide alteration halo
  • A similar geological model as at Kulthor is proposed
  • Kulthor is a satellite orebody at the Osborne mine, an

iron sulphide copper-gold deposit, hosted in altered pegmatites and shears

slide-19
SLIDE 19

www.vendettaminingcorp.com | TSXv : VTT

19

EXPLORATION UPSIDE CONTINUED

  • BONANZA LOAD
  • BHZ “look-a-like”, two moderately

dipping lenses

  • Same structural position as BHZ
  • Limited exploration drilling:

PMRD037 5.0 m @ 3.06% Pb, 3.69% Zn PMRD038 3.4 m @ 2.27% Pb, 3.42% Zn

  • Encouraging Pb:Zn ratios, and

potential to develop a shallow open pit target

Cross Section Looking South East

  • BHZ – Synclines & Zone 2 Bridge Targets
  • Conceptual synclines either side of BHZ limbs
  • Fold hinges are known places of metal accumulation at Pegmont
  • Zone 2 Bridge a flat lying target connecting Zone 2 and BHZ
slide-20
SLIDE 20

www.vendettaminingcorp.com | TSXv : VTT

20

COMPARISONS

Source: various company technical reports, news releases, annual reports and presentations. 0% 5% 10% 15% 20% 25% 30%

RESOURCE GRADE TSX and ASX ZINC MINERS & DEVELOPERS

(metal prices as of 1st March 2017, 100% recovery and payables assumed)

ZnEq % Pb+Zn%

slide-21
SLIDE 21

www.vendettaminingcorp.com | TSXv : VTT

21

NEWS FLOW – 12 MONTHS

Updated Mineral Resource Estimate (Q1 2017) New Regional Copper Discovery Ground EM Survey and Drilling (Q2 2017) Pegmont Lead-Zinc Resource Drilling to Commence (March/April 2017) Environmental Baseline Studies Commencing (Q2 2017) Updated Mineral Resource Estimate #2 (Q4 2017) PEA Completion Target (Q1 2018)

Mount Isa and Glencore’s Mt Isa Mine

slide-22
SLIDE 22

www.vendettaminingcorp.com | TSXv : VTT

22

SUMMARY

LOCATION Queensland is a stable, pro-mining jurisdiction and world leading producer of lead, zinc, and copper Proximity to operating base metal mines, existing natural gas pipeline, rail and road infrastructure Access to both Australian and Asian smelters Multiple exit strategies identified RESOURCE ESTIMATE UPDATE Revised Geological Model Zone 1 to 4 included in the current Mineral Resource Estimate with upside on tonnes and grade Over 13,500 m to be included in updated resource estimate Zone 5 and Burke Hinge Zone to be added to next update Metallurgy completed on BHZ and Zone 5 with Marketable Pb & Zn Concentrates EXPLORATION UPSIDE Wide spaced drilling in Zone 5 is a basis for up- coming infill drilling programs Open along strike in all zones The Broken Hill Type model has the potential to deliver further stacked mineralised horizons Repetitions of BHZ, such as Bonanza and BHZ syncline targets New Copper-Gold Target to be tested with ground EM survey and drilling LEAD and ZINC Zinc: Declining inventories, closure of major mines, limited development projects available as demand is increasing Lead: Declining inventories, major mine closures, increased demand for lead- acid batteries Historically, lead and zinc prices have moved in similar trajectories

slide-23
SLIDE 23

www.vendettaminingcorp.com | TSXv : VTT

23

APPENDICES

  • Geological Model : Broken

Hill Type Model

  • 2014 NI 43-101 Resource
  • Ground Conditions
  • Mount ISA – McArthur

River Province Pb-Zn

  • Zinc : Upward Price

Pressure

  • Zinc : Shrinking mine

supply, Declining Inventories

slide-24
SLIDE 24

www.vendettaminingcorp.com | TSXv : VTT

24

GEOLOGICAL MODEL : BROKEN HILL TYPE MODEL

What is a Broken Hill Type Deposit

  • Not as common as VMS but with similarities.
  • Sedimentary basins overprinted by high-

grade metamorphism (amphibolite or granulite)

  • Stacked lenses with low aspect ratio (longer

& wider compared to thickness)

  • Mineralisation associated with banded iron

formations

  • Metal Zonation
  • “Skarn like” mineralogy
  • Broken Hill Type Deposit Examples:
  • Broken Hill, NSW Australia, the largest

accumulation of lead and zinc in the world

  • Cannington, QLD Australia, a world class

lead-silver deposit

  • Zinkgruvan, Sweden
  • Namaqua Belt, South Africa
slide-25
SLIDE 25

www.vendettaminingcorp.com | TSXv : VTT

25

2014 MINERAL RESOURCE ESTIMATE

Oxidation State Mineral Resource Category Tonnes Kt Grade Pb % Zn % Ag g/t

Sulphide Indicated 757 6.66 2.69 11.87 Inferred 4,417 6.51 2.80 10.56 Transition Indicated 797 4.50 2.17 6.88 Inferred 1,066 5.01 2.23 6.77 Oxide Indicated 512 4.56 1.58 6.37 Inferred 614 5.76 1.23 5.18

Notes on the above table:

  • 1. CIM definitions were used for the Mineral Resources.
  • 2. The cut-off grade applied to the oxide and transition Mineral Resources is 3% Pb

+ Zn, the sulphide cut-off grade is 5% Pb + Zn.

  • 3. Cut off is based on $0.90 /lb for Pb and Zn, a $0.90 A$:US$ exchange rate, and

90% recovery for both metals.

  • 4. Specific gravity used by oxidation state: 3.2 t/m3 oxide, 3.4 t/m3 transition and

3.9 t/m3 sulphide.

  • 5. Using drilling results to 12 December 2013.
  • 6. For full details please see: Reference: “Technical Report Pegmont Property

Mineral Resource Estimate” AMC Mining Consultants (Canada) Ltd, effective date of 28 February 2014. Available on SEDAR.

  • 2014 NI 43-101 Mineral Resource

Estimate completed by AMC Consultants (Canada) Ltd.

  • Only Zones 1 to 4 included in the

Mineral Resource Estimate

  • >13,500 m of drilling not

included in mineral resource estimate

  • Burke Hinge Zone and Zone 5

form part of significant exploration potential for sulphide lead-zinc mineralisation

slide-26
SLIDE 26

www.vendettaminingcorp.com | TSXv : VTT

26

GROUND CONDITIONS

Ground Conditions at Pegmont would be classified as “very good” on Barton’s Q system. The deposit is hosted in a quartzite, characterised by very low joint counts, 100% RQD and high intact rock strength (UCS ~100 to 150MPa estimated). There is also a distinct lack of faulting, geologically the deformation history was ductile rather than brittle, this was also the case at the nearby Osborne Mine. These factors all contribute to conditions that will result in minimal unplanned external dilution in the stopes. Examples of the typical hangingwall and footwall conditions are show below (PVRD017):

slide-27
SLIDE 27

www.vendettaminingcorp.com | TSXv : VTT

27

MOUNT ISA – MCARTHUR RIVER PROVINCE – LEAD & ZINC

Mine or Project Resource Category Tonnes Mt Grade Ore Reserves Tonnes Mt Grade Pb % Zn % Ag g/t Pb % Zn % Ag g/t McArthur River* Measured + Indicated 190 4.5 9.6 48 Proved + Probable 117 4.5 9.4 45 Inferred

  • Teena**

Inferred 58 1.6 11.1

  • Century

CLOSED Lady Loretta* Measured + Indicated 9.2 5.6 15 96 Proved + Probable 8.5 5.1 13.0 87 Inferred 0.3 5 14 80 Hilton + George Fisher* Measured + Indicated 212.8 3.6 7.5 64.6 Proved + Probable 69.5 4.0 7.6 74 Inferred 85.5 3 7 5 Mt Isa* Measured + Indicated 246.0 3.0 3.7 62.3 Proved + Probable

(Black Star)

CLOSED Inferred 120.8 2 3 50 Dugald River# Measured + Indicated 27.1 2.2 12.9 50 Proved + Probable 22.5 1.9 12.1 49 Inferred 28.5 1.7 12.0 13 Cannington Underground^ Measured + Indicated 67 4.84 3.28 177 Proved + Probable 21 5.76 3.69 206 Inferred 8.4 3.56 2.04 101 Cannington Open Pit^ Measured + Indicated 20.3 3.12 2.06 76 Proved + Probable

  • Inferred
  • *Glencore Resources

& Reserves Report as at 31 December 2016 **Rox Resources, New Release 1st June 2016 # MMG Limited 2016 Mineral Resources and Ore Reserves Statement as at 30 June 2016 ^ South32 Annual Report 2016, as at 30 June 2016

slide-28
SLIDE 28

www.vendettaminingcorp.com | TSXv : VTT

28

ZINC : UPWARD PRICE PRESSURE

Mine closures to alter supply / demand balance Delays in new mine development Ability to finance large CAPEX projects LME stocks down >435 kt

  • ver 14 months

Large inventory position still to work down Significant off-market inventories exist Increase in Chinese Mine supply

Mine closures/reductions since 2013 have removed about 15% of the global supply outpacing foreseeable new mine development.

  • Brunswick Mine – Xstrata (250 ktpa) – CLOSED 2013
  • Perseverance Mine – Glencore (100 ktpa) – CLOSED 2013
  • Century Mine – MMG Ltd. (500 ktpa) – CLSOED 2015
  • Lisheen Mine – Vedanta Resources Plc. (160 ktpa) – CLOSED 2015
  • Black Star Open Cut – Glencore (140ktpa) – CLOSED 2016
  • 60%
  • 50%
  • 40%
  • 30%
  • 20%
  • 10%

0% 10% 20% 30% 40% 1-Jul-15 1-Oct-15 1-Jan-16 1-Apr-16 1-Jul-16 1-Oct-16 1-Jan-17

Relative Basemetal Price Performance

Zinc +26% Lead +20%

Copper 0% Nickel -18%

slide-29
SLIDE 29

www.vendettaminingcorp.com | TSXv : VTT

29

ZINC : SHRINKING MINE SUPPLY, DECLINING INVENTORIES

Source: Teck presentation “Global Metals & Mining Conference”, Dec 2,2015, Goldman Sachs

slide-30
SLIDE 30

www.vendettaminingcorp.com | TSXv : VTT

30

ZINC

“The next two years, 2016 and 2017, represent the ‘pinch point’ of concentrate supply, with mine-closure- related cuts expected to outweigh new output from projects.”

Wood Mackenzie Analyst, Jonathan Leng

One of the World’s Largest Zinc Mines Closes

“Mining completed at MMG Century mine in August, 2015.”

www.mmg.com – News Release | Oct. 1, 2015

slide-31
SLIDE 31

www.vendettaminingcorp.com | TSXv : VTT

31

NOTES:

For more information please contact:

Matthew Sroka Corporate Development

Tel: 604 484 7855 Cel: 604 219 2140 Email: ms@vendettaminingcorp.com Suite 1500 - 409 Granville Street Vancouver, BC V6C 1T2

slide-32
SLIDE 32

For more information please contact:

Matthew Sroka Corporate Development

Tel: 604 484 7855 Cel: 604 219 2140 Email: ms@vendettaminingcorp.com Suite 1500 - 409 Granville Street Vancouver, BC V6C 1T2