August 2019 1 Cautionary Statement on Forward Looking Information - - PowerPoint PPT Presentation

August 2019

1

Cautionary Statement on Forward Looking Information

Certain information contained in this document may include “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of X-Terra Resources, or the assumptions underlying any of the foregoing. In this document, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be

• achieved. No assurance can be given that any events anticipated by the forward-

looking information will transpire or occur, including the development of X-Terra Resources’ properties, or if any of them do so, what benefits X-Terra Resources will

• derive. Forward-looking information is based on information available at the time

and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond X-Terra Resources’ control. These risks, uncertainties and assumptions include, but are not limited to, those described under “Financial Instruments” and “Risk and Uncertainties in X Terra Resources’ Annual Report for the fiscal year ended December 31, 2016, a copy of which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements. X- Terra Resources does not intend, nor does X Terra Resources undertake any

• bligation, to update or revise any forward-looking information contained in this

document to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.

2

Corporate Management

➢

Michael Ferreira, President, Chief Executive Officer, Director

• Mr. Ferreira has been working with public and private companies as an independent advisor for more

than five years, primarily in the junior mining sector. His strengths include identifying and sourcing projects, structuring investments, and business development.

➢

• Dr. Michael Byron, PH. D., P. GEO, Director
• Dr. Michael Byron has thirty years of field work, research, and senior management experience in

gold, base-metal, magmatic nickel and PGE, diamond, and gemstone exploration, spanning employment within the mineral exploration industry and government. Dr. Byron is attributed with the re-discovery of the Horne 5 deposit – Falco’s premier asset. Dr. Byron is currently the President, CEO, and Chief Geologist of Nighthawk Gold Corp. (TSXV: NHK)

➢

Sylvain Champagne, B.B.A. Chief Financial Officer, Director

• Mr. Champagne is the Chief Financial Officer of the Corporation, and is also Chief Financial Officer

and a Director of Visible Gold Mines Inc.

➢

Sebastien Bellefleur, Director

• Mr. Bellefleur is a business lawyer in the Montreal office of Fasken Martineau LLP. His speciality is

securities law and he has been involved in numerous public offerings in addition to private placements, takeover bids, stock exchange listings and a broad range of other security matters.

3

Other Directors

➢

Kim Oishi, Director

• Mr. Kim Oishi has over 20 years of experience in financing and advising growth companies. He

has served in senior management and board positions on a number of public and private

• companies. Mr. Oishi is the founder and President of Grand Rock Capital Inc., a company that

invests in growth companies and provides consulting services regarding capital markets, corporate finance, investor relations, business development, mergers and acquisitions.

➢

Jean-François Madore, Director Jean-François Madore is a financial planner and currently wealth-manager specialist with Industrial Alliance, Assurance et Services Financiers Inc. Mr. Madore has acquired fifteen years experience in the financial industry, with a particular expertise in financial planning and risk management.

4

Business Plan, Strengths and Objectives

5

➢

Growth through the identification, acquisition and development of mineral properties of merit in Quebec and eastern Canada

➢

Thoughtful, technical rigor with an emphasis on quality over quantity; X-Terra has focused its efforts on a limited number of properties of merit, and an on-going rebalancing that reflect available resources

➢

Develop and maximize intrinsic value by early-stage identification and optioning, advancing independently, and ultimate vending (potential for royalty)

➢

Maintain and continue developing strategic relationships with leading consultants, prospectors, service providers and investment community.

• Marc Boivin, Geophysicist (MB Geosolutions)
• IOS Geoservices (Rejean Girard)
• Mr. Robert Fraser, P. Geo (Initiated, Planned and Directed the exploration program leading to the discovery of the

former open pit Troilus Gold/Copper Mine)

• Mr. Robert Sansfaçon, P. Geo (Notably implicated in the discovery of the Malartic open pit gold mine)
• Mr. Jeannot Théberge, P. Geo (X-Terra`s Exploration Manager and qualified person under NI 43-101)
• Sodemex, Fonds de Solidarité FTQ, Sidex, SDBJ, Etc…

➢

Anchored by a fundamental exploration approach while continuously employing and exploring innovative techniques.

➢

Disciplined approach to capital management.

➢

raising funds (flow-through, super flow-through, charity flow-through, hard dollars, strategic investments)

➢

utilizing capital stemming from individual financial channels

X-Terra Resources Inc. TSX-V : XTT

Capital Structure

Shares Outstanding 37,831,721 Market Capitalization $3M Warrants Outstanding 10,966,665

*Strike price ~ 0.29c

Options Outstanding 1,735,000

*Strike price ~ 0.23c

Broker Warrants 241,900 Fully Diluted 49,040,286

6

Quebec Institutions 14% Management 7% Principal Shareholders 35% Individuals and Other stakeholders 44%

Ownership

7

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

Properties Location

NB-One (Grog & Northwest) Property

(Option to earn 70%)

➢

The Grog property is characterized by the geology of Grog Brook Group and comprises of 34 claims covering 280 km2 along the Mackenzie Fault.

➢

The Grog Brook Group is exposed mainly to the west of the McKenzie Gulch Fault and the Berry Brook Fault comes touching the east side of the Grog property.

➢

The geology exposed in the trenches of the 2017 work program at Grog exposed heavily deformed siltstones, conglomerates and quartzites which had been intruded by several different phases of felsic intrusives.

➢

The Northwest property comprising of the Rim and Bonanza sectors present quartz veins in sedimentary rocks with the presence of free gold.

➢

The regional till survey completed at Northwest proved that very high gold grain counts were detected in very near vicinity of veins, suggestive of a very proximal signal developed with almost no glacial displacement. Thus highlighting numerous exploration targets.

8

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

9

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

NB-One Property

(Grog and Northwest - option to earn 70%)

10

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

NB-One Property

(Grog and Northwest – Regional Geology)

11

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

NB-One Property

(Gold Results – Highlights)

12

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

NB-One Property

Magnetic (TMI) Shadowed Mag – First Vertical Derivative

13

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

NB-One Property

Airborne Electromagnetic – Initial conductivity Radiometric – Highlighting zones high in Potassium

14

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

NB-One Property

Alteration in epithermal systems

15

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

NB-One Property

Radiometric – Highlighting Potassium high and Grog Showing Circular zone highlighting a radiometric high in Potassium

Grog Showing

The zonation occurs over a 6 km halo, indicating a potentially large mineral system

16

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

NB-One Property

57 Line Kilometre Induced Polarization Results Highlighting 2 distinct trends of high chargeability anomalies

Grog Showing

High Priority Targets

0.1 g/t Au, 28,5 g/t Ag, 0.17% Cu

17

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

NB-One Property

Grog Showing Anomaly : 450 metres X 650 metres Highlighting 900 metre extension and remaining open to the south west

Grog Showing

18

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

NB-One Property

IP Pseudo Sections highlighting Low Resistivity with High Chargeability Anomalies (Targets)

Grog Showing

Line L43 Line L41

Note: No drilling has ever been completed

? ? ?

300 m

19

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

NB-One Property

Northwest Till Sample Results highlighting three trends of over 5km

20

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

NB-One Property

Northwest Property – Highlighting Airborne Drone Mag Survey (25 metre spacing)

21

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

• The Gander-Dunnage zone represents the remnants of Cambro-Ordovician arcs and back-arc basins

associated with the closure of the Iapetus

• As in Newfoundland where there is considerably more exploration activity, major gold occurrences and

deposits are mainly focused along large structures and/or major tectonostratigraphic boundaries, peripheral to / associated with felsic plutons (e.g. Valentine Lake: >4.2M oz Au M+I+I)

• intrusion-associated deposits were formed during the Middle to Late Paleozoic in association with

post-orogenic magmatism and have only recently been recognized in New Brunswick

NB-One Geological Provinces

Troilus East Property

(100% Ownership)

➢

The property is situated in the north central part of Quebec, about 160 km North-East of the town of Chibougamau and located in a favourable geological context of the Frotet- Evans greenstone belt and comprises of 143 mining claims covering ~77 km2.

➢

The Frotet Evans Greenstone belt has seen very limited exploration compared to the Abitibi Greenstone Belt, leaving immeasurable potential in the district.

➢

The property is adjacent to Troilus Gold’s 5.1M oz AuEq* Indicated plus Inferred deposit and less than 2 km from the former open pit. (Inmet Mining historic production of 2M oz Au, 70,000 tons Cu).

➢

A 40,000 metre drill program on the adjacent property (TLG) is now underway.

➢

Recent results of 136 metres of 1.1 g/t AuEq (See press release dated 2019/05/07)

➢

Troilus Gold’s recent property acquisition (Emgold property) directly north of X-Terra was valued at ~$3 million CAD.

➢

According to the MRNF the property contains two zones of high favorability for orogenic Au, VMS and intrusion-related Au-Cu (Troilus-type) mineralization.

* see Troilus Gold Corp. press release dated Nov. 19, 2018, and the National Instrument 43-101 technical report dated Jan. 1, 2019, of Troilus Gold titled, "Technical Report on the Troilus Gold-Copper Mine Mineral Resource Estimate, Quebec, Canada" prepared by Luke Evans, MSc, PEng, executive vice-president, geology and resource estimation, principal geological engineer at Roscoe Postle Associates Inc.).

22

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

Troilus East Property

Location

23

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

Troilus East claims and Troilus targets

24

X-Terra Resources Inc. TSX-V : XTT FRANKFURT : XTR

Troilus East Property

Detailed magnetic survey over Troilus East (75 metre spacing)

25

X-Terra Resources Inc. TSX-V : XTT FRANKFURT : XTR

Troilus East Property

Regional Mag Survey (200 metre line spacing) Detailed Mag Survey (75 metre line spacing) –Completed December 2018

Gold in Till Results and TLG`s exploration targets

26

X-Terra Resources Inc. TSX-V : XTT FRANKFURT : XTR

Troilus East Property

17 of 22 samples containing Sperrylite PtAs2 and Braggite (Pt, Pd, Ni)S

27

X-Terra Resources Inc. TSX-V : XTT FRANKFURT : XTR

Ducran Property

(100% Ownership)

➢

The property is located at the eastern extremity of the Abitibi Subprovince which hosts the Chibougamau and Chapais mining districts

➢

The property consists of 75 mining claims totalling 4,179 hectares (41 km2)

➢

Historic production from the Doré Lake and Chibougamau Lake sectors total: 47.5Mt at 1.72% Cu, 2.30 g/t Au, for 1.6 billion pounds of Cu and 3.2 million ounces Au.

➢

The Chapais mining camp has produced: 24.2Mt at 2.24% Cu, 1.13 g/t Au for 1.1 billion pounds of Cu, 0.8 million ounces Au and 8.2 million ounces Ag.

28

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

Ducran Property

Preliminary VTEM mag and Drill Collar Location

(Completed December 2018)

29

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

Ducran Property

VTEM conductors and Drill Collar Location

30

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

Ducran Property

Drill Collars + R1 & R3 Channel Samples

31

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

32

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

Ducran Property

Drill Sections + R1 & R3 Channel Samples

33

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR

• X-Terra holds a 100% ownership in 5 oil exploration licenses located in St. Lawrence area in the Appalachian basin of

Quebec totaling 93,275 hectares

• Oil exploration licenses – on purely an exploration basis are valued at ~$100-$125 per hectare (CAPP)
• The potential resources evaluated by Sproule are related to porous levels in the St. Leon and Sayabec formations

encountered in the wells drilled in the eastern part of the Masse structure. The results of the study point out to a potential of 53.6 billion cubic feet of gas and 52.2 million barrels of oil over a probable average area of 5.2 square kilometres, an oil equivalent total of 61.1 million barrels

Untapped Mining Assets

(100% Ownership)

Opportunity

34

➢

Strong exploration vehicle in Quebec and Eastern Canada – top-tier jurisdictions

➢

Significant additional leverage from generous exploration credits coupled with expertise with creative financing vehicles, e.g. charity flow-through (~60-90% gain)

➢

Favorable corporate structure

➢

Value of exposure via initial equity position is maximized during market bottom

➢

Current strategic investors to X-Terra include: Caisse de Depot, Sidex, SDBJ, FTQ, Desjardins Securities.

➢

Leverage strong industry contacts in Quebec: geological consultants, drilling and

• ther service companies, etc…

➢

Established relationships with First Nation communities.

“FOCUSED ON THE , AND DEFINITION OF IN CANADA” THANK YOU

35

X-Terra Resources Inc. TSX-V : XTT FRANKFURT:XTR