An Emerging Zinc Play September 2019 Corporate Presentation CSE: - - PowerPoint PPT Presentation

an emerging zinc play
SMART_READER_LITE
LIVE PREVIEW

An Emerging Zinc Play September 2019 Corporate Presentation CSE: - - PowerPoint PPT Presentation

An Emerging Zinc Play September 2019 Corporate Presentation CSE: PSE | FSE: PNX Disclaimer The information contained in this presentation is provided by Pasinex Resources Limited. (Pasinex) for informational purposes only and does not


slide-1
SLIDE 1

An Emerging Zinc Play

September 2019

Corporate Presentation

CSE: PSE | FSE: PNX

slide-2
SLIDE 2

The information contained in this presentation is provided by Pasinex Resources Limited. (“Pasinex”) for informational purposes

  • nly and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to issue, securities of Pasinex or
  • ther financial products. The information contained herein is not investment or financial product advice and is not intended to be

used as the basis for making an investment decision. The views, opinions and advice provided in this presentation reflect those of the individual presenters, and are provided for information purposes only. The presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Pasinex nor its directors officers, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. Except for statements of historical fact, this presentation contains certain “forward-looking information” within the meaning of applicable securities laws. Forward- looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, the accuracy of mineral grades and related assumptions, planned expenditures, proposed exploration and development at the the Horzum Zinc / Lead Project and the Spur Zinc / Lead / Silver Project. Pasinex undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward- looking statements. This presentation includes industry, market and competitive position data from industry journals and publications, data on websites maintained by private and public entities, including independent industry associations, general publications and other publicly available information. Pasinex believes that all of these sources are reliable, but we have not independently verified any

  • f this information and cannot guarantee its accuracy or completeness. Industry publications and surveys generally state that they

have obtained information from sources believed to be reliable, but do not guarantee the accuracy and completeness of such

  • information. Further, because certain of these organizations are industry organizations, they may present information in a manner

that is more favorable to the industry than would be presented by an independent source. In addition, forecasts are often inaccurate, especially over long periods of time. References in this presentation to research reports or articles should not be construed as depicting the complete findings of the entire referenced report or article. The information in each report or article is not incorporated by reference into this presentation. Investors are advised to refer to additional information including quarterly Financial and Management Discussion and Analysis (MD&A) which is available through the website www.pasinex.com

Disclaimer

Pasinex Resources Limited | CSE: PSE | FSE: PNX

slide-3
SLIDE 3

Pasinex Overview

Pasinex Resources Limited | CSE: PSE | FSE: PNX

Exploration drill program on Akkaya Project. 45,757 wet tonnes zinc material produced in 2018 from Pinargozu. Profitable operations with over 60% gross margin in Q2 of 2019. On target to achieve 2019 guidance

  • f 18,000-20,000 wet tonnes mine

material. Large land position in a CRD zinc district in Turkey. SEDEX style intersection on Spur Zinc Project in Nevada. 2019 is a transition year with a mine development program to open up deeper zinc mineralization at Pinargozu in Turkey. This is expected to be in production in 2020.

slide-4
SLIDE 4

Zinc Production & Exploration in Turkey and the US

Pasinex Resources Ltd. have Zinc Projects on two continents

High Grade Zinc Carbonate Production & Exploration at Pinargozu Zinc Mine, Turkey 50/50 JV

Pasinex Resources Limited | CSE: PSE | FSE: PNX

UNITED STATES

TURKEY

NEVADA

High Grade Zinc Carbonate Exploration at Akkaya Zinc Project, Turkey 50/50 JV High Grade Zinc Carbonate Exploration Project Spur, White Pine County, Nevada 80% Earn In over 4 years

slide-5
SLIDE 5

Pasinex Corporate Profile

Capital Structure

CSE:PSE; FSE:PNX

Shares Issued and Outstanding Share Price (September 10th, 2019) Market Capitalisation 144,354,370 $ 0.03 $ 4.33 M Warrants Options None 5.35 M

20% 45% 35%

Directors & Management Other Shareholders Other Top 20 Shareholders

Shareholders

Pasinex Resources Limited | CSE: PSE | FSE: PNX

slide-6
SLIDE 6

Pasinex Management & Board

Steve Williams

President & CEO Metallurgy degree and MBA, Mines in Australia and Canada, 20 years with SGS in Metallurgy, Past Managing Director SGS Canada

Andrew Gottwald

CFO CPA, CA with over twenty years of experience in the financial services industry, including senior management positions with various publicly listed mining companies.

Evan White

Manager, Corporate Communications 11 years in marketing in the mining sector

  • Dr. Larry Seeley

Board Member Ex-VP Falconbridge Mining, Ex-President Lakefield Research

Vic Wells

Board Chairman Financial expert was CFO / Director for a number of junior exploration companies

Joachim Rainer

Board Member 20 years in entrepreneurial finance in Austria

Jonathan Challis

Board Member Mining engineer with many Directorships and senior roles with juniors

Pasinex Resources Limited | CSE: PSE | FSE: PNX

slide-7
SLIDE 7

Growing a pure play Zinc Company

35% ❖ New discovery of zinc sulphide in black shales beneath high-grade zinc oxides in Nevada ❖ Two drill rigs currently drilling at Akkaya Zinc Exploration Project in Turkey. Targets along strike from Pasinex’s Pinargozu high-grade zinc oxide mine ❖ Pasinex owns 50% of the Pinargozu Mine which is an exceptionally high grade zinc mine near Adana, Turkey. ❖ Approximately 43,709 wet tonnes of zinc oxide produced in 2018; 2,048 wet tonnes of zinc sulphide. ❖ 2019 production to June 30th was 11,080 wet tonnes at 33% Zn ❖ District & regional exploration opportunity in a world class zinc district in Turkey.

❖ Investors should refer to information on Pasinex through our quarterly Financial statements and Management Discussion and Analysis (MD&A) available through the website www.pasinex.com

Pasinex Resources Limited | CSE: PSE | FSE: PNX

slide-8
SLIDE 8

Pinargozu Zinc Mine Operating Results

35%

Q2 2019 Six Months Ended June 30, 2019 Horzum AS – Reporting as 100% Zinc product produced (wet) tonnes 4,293 11,080 Zinc product sold (wet) tonnes 2,397 10,056 Zinc product sold grade 46% 33% Cost Per Tonne Mined (CAD)* $403 $318

Pasinex Resources Limited | CSE: PSE | FSE: PNX

Operating results for Quarter 2 and the First Half of 2019

*Non-GAAP measures.

slide-9
SLIDE 9

Pasinex Financial Results – Q2 2018

35%

Q2 2019 Q2 2018 Pasinex Resources Limited Adjusted Equity Gain $333,363 $1,805,685 Consolidated Net Income (loss) $(108,609) $930,193 Dividend Received from Horzum AS $286,383 $377,370 Zinc Price US $1.23 US $1.55

Pasinex Resources Limited | CSE: PSE | FSE: PNX

Year-Over-Year Comparison (Canadian Dollars)

slide-10
SLIDE 10

Spur Zinc Project, Nevada [Exploration]

35% ❖ Small drill programme confirms high- grade zinc oxides and leads to new discovery of deeper zinc sulphides ❖ Possible high-grade Eureka-style CRD system and potential for a major shale- hosted-massive-sulphide (SHMS) deposit beneath ❖ Verified high grade zinc oxides: ❖ 43.9 metres @ 14.2% zinc ❖ 13.7 metres @ 26.1% zinc and 5.6

  • unces of silver

❖ Earn in option agreement whereby Pasinex can earn to up to 80% interest in the project based on payments and exploration commitment

Pasinex Resources Limited | CSE: PSE | FSE: PNX

White Pine County, Nevada, USA Exciting new zinc sulphide discovery beneath an old high-grade zinc prospect

slide-11
SLIDE 11

Why are Shale-Hosted Zinc Deposits Important?

❖ Black Shale is a highly unusual host for CRD mineralization. SHMS deposits are highly significant for exploration ❖ Shale-hosted massive sulphides zinc deposits (SEDEX or SMHS) are not common but are large, hosting over 18% of the world’s zinc ❖ Four of the five largest zinc mines and deposits globally are shale hosted. Examples: Red Dog, Sullivan, Selwyn, McArthur River, Hilton

slide-12
SLIDE 12

Summary Highlights of Drill Assay Results

Pasinex Resources Limited | CSE: PSE | FSE: PNX

Nevada, White Pine County

Drill Hole # Core Length Interval Metres Zn Grade % From (metres) Mineralization SRDD-2018-001 Including 43.89 13.72 14.2 26.1 43.28 48.77 Oxide in Limestone Oxide in Limestone SRDD-2018-002 0.61 10.8 60.96 Oxide in Limestone SRDD-2018-004 1.5 4.3 85.65 Oxides in Fault Zone SRDD-2018-004 2.74 8.1 88.1 Sulphide in Black-Shale SRDD-2018-004 3.35 5.7 92.6 Sulphide in Black-Shale

slide-13
SLIDE 13

A Closer Look at Black Shale & Drill Hole SRDD_2018_04

4.3% Zinc 8.1% Zinc 5.7% Zinc

20 Metres

slide-14
SLIDE 14

Pinargozu Zinc Mine & Akkaya Zinc Project

35%

❖ Red area indicates prospect for zinc district in southern Turkey where Pasinex operates ❖ Infrastructure is strong in

  • Turkey. The key to Pasinex

being able to ramp up quickly to production was because of readily available infrastructure ❖ Access to major roads, port (Mersin), major airport (Adana), HV electrical

Pasinex Resources Limited | CSE: PSE | FSE: PNX

Pinargozu Zinc Mine & Akkaya Exploration Project Route to Port Tufanbeyli Zinc District Yahyali Zinc District Bolkar Zinc District

ADANA

MERSIN PORT

slide-15
SLIDE 15

Zinc in the Taurus Mountains

35%

Main city of Adana – 2.2 million Port of Mersin – 2½ hours away HV power available Water available

Pasinex Resources Limited | CSE: PSE | FSE: PNX

JV Area

  • f Interest

Pinargozu & Akkaya Horzum

slide-16
SLIDE 16

Mottled Limestone Nodular Limestone

Surface Lithology Map of Pinargozu & Akkaya properties

35%

Pasinex Resources Limited | CSE: PSE | FSE: PNX

❖ Purple indicates White Marble host-rock ❖ Favourable structural settings coincident with the White Marble host-rock ❖ This process of identifying the White Marble host-rock has generated compelling drill targets

Shale Siltstone Grey Limestone Marble Dolomitic Limestone Dolomite Quartzite Siltstone Chaotic Unit Mafic Rocks Quaternary Pinargozu

slide-17
SLIDE 17

Pinargozu Zinc Mine [Production & Exploration]

35% ❖ Strong Mine Operating Profit margin (61% in H1 of 2019) ❖ Dividends being received ❖ Selling Direct-Shipping “natural concentrate” on spot (no long term contracts) ❖ Producing mine with ultra high grade zinc ❖ 32% zinc in the Oxides ❖ 42% zinc in the Sulphides ❖ Pinargozu is a new discovery made in 2013 ❖ Exploration underway to expand the resource ❖ Growing expertise in recognizing other high-grade zinc properties like Pinargozu

Pasinex Resources Limited | CSE: PSE | FSE: PNX

slide-18
SLIDE 18

Pinargozu Development

35% ❖ Four adits from hillside now operating – a fifth adit in development ❖ 2018 production of 45,717 tonnes of DSO concentrate ❖ 2019 production guidance of 18,000 – 20,000 tonnes of DSO concentrate predominately sulphide ore ❖ 2019 production to 30th June was 11,080 tonnes (wet) ❖ A mine development program is underway to reach the deeper sulphide zone – expected on line in 2020 ❖ Over 6.0 kilometres of underground development ❖ 200 miners & engineers are working at Pinargozu ❖ Mine safety standards priority focus

Pasinex Resources Limited | CSE: PSE | FSE: PNX

slide-19
SLIDE 19

Pinargozu Production from Multiple Faces

❖ New Adit Project at 550 Level in development ❖ Plan view of mineralization predominantly zinc carbonates (oxides) and zinc sulphides shown in red area; underground workings shown in other colours ❖ Cut and fill mining method ❖ Production is 85% oxide / 15% sulphide production of DSO grade material

Pasinex Resources Limited | CSE: PSE | FSE: PNX

811 Level 663 Level 550 New Adit Project

slide-20
SLIDE 20

Pinargozu Production Profile

35%

Pasinex Resources Limited | CSE: PSE | FSE: PNX

2014 2015 2016 2017 2018 6,731 10,224 31,148 57,625 45,757

60,000 50,000 40,000 30,000 20,000 10,000

2019 Projection 18,000 – 20,000

slide-21
SLIDE 21

Exploration Conceptual Model

35% ❖ Carbonate replacement type Zn - geological model ❖ Current Pinargozu operation is high up in the “manto” – could be a deep system; lots

  • f exploration opportunity

❖ Skarn opportunity

Pasinex Resources Limited | CSE: PSE | FSE: PNX

Early in and high up in the manto system

slide-22
SLIDE 22

Regional Exploration in Turkey

35%

Pasinex Resources Limited | CSE: PSE | FSE: PNX

❖ The Pinargozu carbonate replacement zinc project is similar to CRD deposits in Mexico such as Naica ❖ Pinargozu, Akkaya and region ❖ Near mine areas – exploring the strike extension of hydrothermally altered marbles. ❖ There is potential in the district to find more properties like Pinargozu

Pinargozu Mine

Pinargozu Ore Surface Projection Cambrian Carbonates Zn-Pb Occurances along to HZT HZT: Horzum Trend

Marble Alteration Second Order HZT Splay

slide-23
SLIDE 23

Zinc 101

35% ❖ Uses of zinc: ❖ Galvanizing of Steel (making it rust proof) ❖ Car bodies, street lamp posts, safety barriers, suspension bridges ❖ Health: ❖ Sunscreen and vitamins ❖ Zinc Oxides ❖ Paints, rubber, cosmetics, pharmaceuticals, plastics, inks, soaps, textile ❖ Die-casting ❖ Electrical equipment ❖ China is a major consumer ❖ Strong zinc price over the last year ❖ Stocks of Zn continue to drop ❖ What’s going to happen to zinc in the next 5 years? ❖ Battery opportunity

Pasinex Resources Limited | CSE: PSE | FSE: PNX

slide-24
SLIDE 24

Contact Details

35%

Pasinex Resources Limited | CSE: PSE | FSE: PNX

Canada Main Office

Pasinex Resources Limited 82 Richmond St. E. Toronto, ON M5C 1P1 Tel +1 (416) 861-9659

Adana Office, Turkey

Zeytinli Mah. Turhan Cemal Beriker Blv. No 607 / A Seyhan, Adana

Corporate Communications

Tel +1 (416) 906-3498 evan.white@pasinex.com

General Information

info@pasinex.com

slide-25
SLIDE 25

PASSION IN EXPLORATION

“The way to build a zinc company is one mine at a time” - Steve Williams