Annual General Meeting June 28, 2017 EXPLORING WITH STRONG PARTNERS - - PowerPoint PPT Presentation

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Annual General Meeting June 28, 2017 EXPLORING WITH STRONG PARTNERS - - PowerPoint PPT Presentation

Annual General Meeting June 28, 2017 EXPLORING WITH STRONG PARTNERS AND LEADING-EDGE TECHNOLOGY TSX-V: KZD kaizendiscovery.com Pinaya-Copper Gold Project, Peru Forward-looking Statements The TSX-V has neither approved nor


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Annual General Meeting

EXPLORING WITH STRONG PARTNERS AND LEADING-EDGE TECHNOLOGY

TSX-V: KZD kaizendiscovery.com

June 28, 2017

Pinaya-Copper Gold Project, Peru

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The TSX-V has neither approved nor disapproved the contents of this presentation. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this presentation. Certain statements in this presentation constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”, “foresee” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect Kaizen’s current expectations regarding future events, performance and results and speak only as of the date of this presentation. These include, but are not limited to, statements regarding: the acquisition of projects that match evaluation criteria and align with corporate strategic objectives of the Company; participation by Japanese strategic partners, including at the project level; receipt of the second and third payments by ITOCHU in respect of its funding of the Pinaya Copper-Gold Project; Kaizen providing matching funding of up to C$2.5 million for the Pinaya Copper-Gold Project; the development of exploration programs at Kaizen’s projects; technologies and expertise; and the identification, exploration and development of new, high quality mineral projects. Such statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Kaizen or its mineral projects, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. In making such statements, Kaizen has made assumptions regarding, among other things: general business and economic conditions; the availability of additional exploration and mineral project financing; the supply and demand for, inventories of, and the level and volatility of the prices of metals; ongoing relationships with strategic partners; the timing and receipt of governmental permits and approvals; changes in regulations; political factors; the accuracy of the Company’s interpretation of drill results; the geology, grade and continuity of the Company’s mineral deposits; the availability of equipment, skilled labour and services needed for the exploration and development of mineral properties; and currency fluctuations. This presentation also contains references to estimates of Mineral Resources. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that ultimately may prove to be inaccurate. Mineral Resource estimates may have to be re-estimated based on: (i) fluctuations in mineral prices; (ii) results of drilling; (iii) metallurgical testing and other studies; (iv) proposed and completed mining exploration programs; (v) the evaluation of exploration and drilling plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licenses. These forward-looking statements are made as of the date of this presentation and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, Kaizen does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this presentation. Forward-looking information is designed to help you understand management’s current views of the Company’s near and longer term prospects, and it may not be appropriate for other purposes. Kaizen will not update any forward-looking statements or forward-looking information unless we are required to by applicable securities laws. The forward-looking statements contained herein are based on information available and are made as of June 28, 2017.

Forward-looking Statements

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Disclaimer and Qualified Persons

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The information in this presentation is published to inform you about Kaizen Discovery and its activities. To the extent permitted by law, Kaizen Discovery accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation. Recipients should make their own enquiries in relation to any investment decisions. This presentation does not constitute an offer to sell, or a solicitation

  • f an offer to buy, any securities in any jurisdiction, including the United States.

Mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and it is uncertain if further exploration will result in the any resource reported herein being delineated as a mineral reserve. NI 43-101 Qualified Persons Pinaya Copper-Gold Project: The scientific and technical information herein related to the Pinaya Project has been reviewed and verified by Mark Gibson, PrNatSci, Chief Operating Officer of the Company, a Qualified Person under the terms of NI 43-101. Mr. Gibson is not independent of Kaizen. The Mineral Resources disclosed herein for the Pinaya Project are reported in the NI 43-101 Technical Report dated April 26, 2016, “Pinaya Gold-Copper Project Technical Report” (the “Technical Report”) prepared jointly by Brian Cole, P.Geo. and Ronald G. Simpson, P.Geo. (Geosim Services Inc.). Both

  • Mr. Cole and Mr. Simpson are independent of Kaizen.

Aspen Grove Project: Disclosure of a scientific or technical nature herein relating to the Aspen Grove Project has been reviewed and approved by Nigel Luckman, P.Geo, Geologist for the Company, who serves as a Qualified Person as defined under National Instrument 43-101. Mr. Luckman is not independent of Kaizen.

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Agenda

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  • Year in Review
  • Strategy
  • Project Portfolio
  • Pinaya Copper-Gold Project
  • BC Copper Porphyry Projects
  • Coppermine Project
  • Summary
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Year in Review

Change in People

  • New Executive Management, VP Exploration
  • New board as elected at 2016 AGM
  • Together we undertook a strategic review of portfolio

Financings

  • Completed the rights offering in January 2017 – gross proceeds $7.3 million
  • Received Pinaya second stage payment from ITOCHU – proceeds of $625K

Operations

  • Completed the Aspen Grove program – 4,009 metres
  • Advanced Pinaya
  • Land access and community agreements in place
  • Declaration of Environmental Impact was received
  • Mapping and target finalization was completed

Business Development

  • Divestment of Castle Property
  • On-going opportunity review

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Management

Gustavo Zulliger Vice President, Exploration Specializes in exploration of porphyry copper and epithermal systems in South America’s high-Andes region; 22 years of experience in mineral exploration, project generation, and project evaluation. Nakaba Chimura Executive Vice President, Asia Finance Asian capital market adviser to Ivanhoe Mines Ltd. and GoviEx Uranium. David Garratt, CPA, CA Chief Financial Officer Former VP and Corporate Controller of Turquoise Hill Resources; six years in Deloitte LLP’s audit practice focusing

  • n servicing mining clients.

Tom Peregoodoff President and Chief Executive Officer President and Chief Executive Officer

  • f Peregrine Diamonds;

previously spent 18 years with BHP Billiton. Mark Gibson Chief Operating Officer Chief Operating Officer

  • f High Power Exploration Inc.;

formerly with Anglo American.

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Board of Directors

Terry Krepiakevich Chairman of Audit Committee Former Chief Executive Officer of Meryllion Resources Corp.; former Chief Financial Officer of SouthGobi Resources. David Huberman, Chairman Chairman of Nominating & Corporate Governance and Compensation Committees President of Coda Consulting Corp.; former 25-year Senior Partner

  • f a Canadian business law firm; Director of Trevali Mining Corporation.

Eric Finlayson President of High Power Exploration (HPX), an affiliate of Kaizen’s majority shareholder, HPX TechCo Inc.; spent 24 years with Rio Tinto, including five years as Rio's Global Head of Exploration. Richard Cohen Managing Director at Primary Capital Inc., more than 30 years of experience in the mining investment industry. David Boehm Former senior partner of Grant Thornton in Hong Kong, and a director of Ivanhoe Capital Pte Ltd.; Fellow of the Institute

  • f Chartered Accountants in Australia and

a Member of the Hong Kong Institute of Certified Public Accountants. David Korbin Former managing Partner of Deloitte; former director of Ivanhoe Australia and Ivanhoe Mines (now Turquoise Hill Resources). Ignacio Rosado Chief Executive Officer of Volcan Compañia Minera S.A.A.; former Chief Financial Officer of Hochschild Mining plc.

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Strategy

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Why Copper?

  • Long term supply deficit is forecast due to declining

mining grades.

  • Fewer large mines being commissioned will reduce

future supply further. This will lead to an increasing copper price.

  • Steady increase in demand is forecast, fuelled by

growth in emerging economies (China and India) requiring the metal for infrastructure projects.

  • Copper is a major component in the electric vehicle

revolution.

  • 80 kg of Cu in a Tesla 3 versus 20 kg in

gasoline vehicle.

Why Latin America?

  • Latin America is host to some of the most productive

geological terrains for copper and gold deposits.

  • In 2016, Peru and Chile accounted for 29% of the

global exploration budget.

  • Within the top 10 countries ranking by reserves and

resources, Chile ranks 1st, Peru ranks 2nd and Mexico ranks 9th.

  • Chile ranks 24th , Peru, 100th, on global corruption

ranking.

Sources: BHP via ft.com (2016); Bernstein Research projection (2017) Transparency International.

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  • Shareholder Support: Major

shareholder of Kaizen is HPX. Robert Friedland is the Co-Chairman and CEO of HPX and controls 18.64%

  • f HPX shares.
  • Kaizen has access to proprietary

Typhoon exploration technology developed and controlled by HPX.

  • Typhoon can be deployed in IP or EM

configurations.

  • Technology enables deeper

penetration – especially important in areas of thick cover.

  • HPX is partnered with Computational

Geosciences Inc., who perform advanced inversion and interpretation

  • f data.
  • Ensures that the resulting prediction of

physical properties is as accurate as possible.

Access to Proprietary Technology

CONVENTIONAL IP/EM SYSTEM TYPHOON IP/EM SYSTEM

>2000m <500m >2000m >2000m

Blind zone

<500m

FASTER

Can be substantially faster than conventional methods for deep targets due to custom survey deployment.

DEEPER

A high signal/noise ratio and long electrode separation enables deeper prospecting.

BETTER

Increased effectiveness through improved resolution of targets and host geology.

The combination of proprietary hardware and software innovations unlocks the value of mineral properties and highlights the opportunities that

  • ther explorers and technologies are

destined to miss.

TYPHOON

Finding a needle in a haystack

TECHNOLOGY FOR MINERAL EXPLORATION

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Esparanza Spence Lomas Telsoro Antucoya Chuquicamata Collahuasi Cerro Colorado

Caliche Plains

El Abra

Depending on the region, between 20% - 60% of the main porphyry belt in northern Chile lies concealed under caliche plains or similarly resistive ignimbrite cover.

The world class Chilean copper deposits were largely discovered from surface exposure. These deposits

  • ccur on the

margins of vast unexplored caliche-covered plains. 20km

? ? ? ? ?

? ? ? ? ?

In Northern Chile, deposits that are beneath resistive cover cannot be discovered with traditional geophysical methods.

TECHNOLOGY FOR MINERAL EXPLORATION

Seeing Where Others Cannot

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Pinaya Copper-Gold

*Source: S&P Global Market Intelligence

PINAYA

Peru

PROJECT:

Location: Arequipa & Puno, Peru

PINAYA

What are we looking for? Copper-gold porphyry/skarn comparable to other projects in the porphyry belt such as Las Bambas, Tintaya, Constancia, and Antapaccay. Partner: ITOCHU (currently 10% interest) at project level Deal terms: C$2.5 million for exploration for an indirect 20% stake in the project. Kaizen to match Itochu's exploration funding.

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Why Pinaya?

*Source: S&P Global Market Intelligence

  • Peru is the second-largest copper-producing country in the world.
  • Pinaya is located within Andahuaylas-Yauri porphyry/skarn belt. Belt hosts

Las Bambas (12.8 Mt Cu), Tintaya (3.5 Mt Cu) and Antapaccay (4.1 Mt Cu).

  • Building on the foundation of historic work:
  • Drilling: 160 diamond drill holes (46,530 metres), primarily in the

resource area.

  • Soil sampling and trenching: 6,000 samples taken over property.
  • Geophysics: Magnetics, IP survey over resource area, property-wide

Z-axis Tipper Electromagnetic (ZTEM) survey.

  • Resource is open to north and south and the deeper resistive target which

extends to the east and remains untested.

  • 2017 work program will include detailed property wide mapping

(192 square km) and 4,000 metre diamond drilling program.

ZTEM time domain resistivity slice.

?

Current Resource

Measured: 8.2 million tonnes grading 0.33% copper and 0.6 grams per tonne gold for a contained metal of 27,000 tonnes of copper and 158,000 ounces of gold. Indicated: 33.5 million tonnes grading 0.32% copper and 0.46 grams per tonne gold grading 0.32% copper and 0.46 grams per tonne gold, for contained metal of 108,000 tonnes of copper and 497,000 ounces of gold. Inferred: 40.2 million tonnes grading 0.36% copper and 0.30 grams per tonne gold, containing 145,000 tonnes of copper and 388,000 ounces of gold.

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Pinaya 2017 Drill Program

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Pinaya Copper-Gold − Next Steps

Drilling – July/August 2017

  • Declaration for Environmental

Impact (DIA) was issued in April 2017.

  • Awaiting the permission to

initiate activity.

  • Once granted, earthworks,

road and drill pad construction will commence.

  • Drilling planned to commence

following receipt of fuel and water usage permits.

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B.C. Copper-Gold Exploration Projects

  • Kaizen's exploration portfolio in B.C. was

focused on Aspen Grove.

  • In 2016, drilling continued at its Aspen

Grove Project with 4,009 metres of diamond drilling completed.

  • Castle Project was divested to Colorado

Resources Ltd. in February 2017.

  • Reviewing options for Tanzilla and Pliny.

Drilling at Aspen Grove in 2016

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2016 Aspen Grove Drilling

Core from K16-06 at 373.9 metres, 2 metres grading 2.07% Cu, 0.23 g/t Au

  • Located near the town of Merritt. Claims

comprise 11,200 hectares within the Nicola Group porphyry belt.

  • Focus in 2016 was 4,009 metre drill

program in the Ketchan Area. 2016 Ketchan Program Highlights

  • 62 metres grading 0.46% copper and 0.10

g/t gold in drill hole K16-06 including 28 metres grading 0.90% copper and 0.17 g/t gold;

  • 8 metres grading 1.29% copper and

0.84 g/t gold in drill hole K16-07, and 60 metres grading 0.36% copper and 0.15 g/t gold.

  • Options for the project are being

assessed.

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Coppermine Copper Project

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  • Located In Nunavut, Canada.
  • The Coppermine Project is an early-

stage, district-scale exploration play. The project comprises two geologically distinct exploration targets: sediment-hosted stratiform copper, and structurally controlled volcanic- hosted copper (±silver).

  • Project currently on hold pending

finalization of Nunavut Land Use Plan.

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Coppermine Project, Nunavut, Canada

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Investment Highlights

  • Pinaya Copper-Gold Project − potential for a major

discovery:

  • Current resource open to further expansion with

additional step out drilling (north, south and at depth).

  • Strong board and management team with extensive

industry experience.

  • Backed by HPX, a private exploration technology

company led by Robert Friedland that provides ground-breaking technological hardware and software solutions to address the limitations of existing exploration technology.

  • Building a select portfolio of high-quality, advanced

exploration assets in South America.

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Investors: Phone: +1 604 669-6446 Email: info@kaizendiscovery.com Office Kaizen Discovery Inc. World Trade Centre 654-999 Canada Place Vancouver, BC V6C 3E1 Canada

www.kaizendiscovery.com