CORPORATE PRESENTATION
November 2018
TSXV: PRZ OTCQB: PRZFF FSE: MQSP
BRITISH COLUMBIA CORPORATE PRESENTATION TSXV: PRZ OTCQB: PRZFF - - PowerPoint PPT Presentation
HIGH GRADE COPPER IN MEXICO AND GOLD IN BRITISH COLUMBIA CORPORATE PRESENTATION TSXV: PRZ OTCQB: PRZFF November 2018 FSE: MQSP Cautionary Statement FORWARD LOOKING STATEMENTS This presentation contains forward-looking information and
November 2018
TSXV: PRZ OTCQB: PRZFF FSE: MQSP
FORWARD 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,
(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
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
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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world class Kupferschiefer deposits in Europe
grade showings over a 50 kilometer trend
1,318,000 oz in Inferred Resources in SE British Columbia, Canada
creating shareholder value by building valuable mining companies around the world
programs underway in both Mexico and British Columbia
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Michael McPhie, B.Sc., M.Sc., QEP - President and CEO, Director Mining industry executive with over 20 years international experience developing projects from early exploration to full operations. Former Managing Director of JDS Copper, President and CEO of Curis Resources, Director and Executive Vice President Exeter Resources and currently Chair of the Board of IDM Mining Ltd. and Ridley Terminals Corporation. Feisal Somji, B.Sc., MBA - Executive Chairman Mining industry executive with over 20 years international experience. Founding shareholder of Mexican Silver Mines, an exploration company focused on Mexico and South America where he held position of President when it was merged with Rio Alto. Robert Archer, P.Geo. – Director, Technical Committee Chair Co-founder, director and former CEO of Great Panther Silver Limited, a silver-gold producer with operating mines in Mexico and another under development in Peru. Mr. Archer has more than 35 years experience in the mining industry with senior and junior companies, including more than 20 years in Mexico. David Schmidt, B.Asc. – Director Mining industry consultant with over 15 years experience in financings, corporate and financial disclosure and corporate development. Currently a director of several public companies. Raul Ramirez, BA – Director One of two principals of Scion Mines SA de CV, which was purchased as part of the Manto Negro acquisition. President and CEO of Molycomex, a private Mexican corporation involved in mining exploration in Mexico. Founding shareholder of Mexican Silver Mines and VP Operations prior to merger with Rio Alto. Yuyiang Liang, CPA, BBA – Chief Financial Officer Yuying Liang is a Senior Associate at BridgeMark Financial Corp., where she provides financial reporting services for both public and private companies. She has extensive experience in public company environments and full cycle accounting, as well as providing accounting services for business acquisitions and RTO. Ms. Liang holds the professional designation of Chartered Professional Accountant (CPA). Richard Dufresne, B.Sc., P.Geo – Geological Project Manager
successfully developing and leading mineral exploration programs. He spent half of his career working with major mining companies, Falconbridge Ltd and Anglo American Exploration Canada, where he held senior and managerial positions. Later he joined junior mining companies as project manager and vice president of exploration. He was involved in projects in Canada, Mexico, Peru, and Ivory Coast. Mr. Dufresne is a Geology graduate from University of Montreal and is a registered member of Engineers and Geoscientists BC.
Proven Track Record of Shareholder Value Creation Extensive Technical, Financial and Capital Markets Expertise Committed to Industry Leading CSR and Environmental Performance
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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
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10 15 20 25 2012 2014 2016 2022 2028 2030 2018 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
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& Germany and Zambian/DRC Copper Belt that are some of the richest globally
hectares (180 km2) - first time this area has been consolidated in one district-scale package
surface showings and underground (artisanal) exposures over 50+ km trend
with richer Cu-Ag mineralization outcropping at various locations
Rich copper mineralization from Ojitos showing - chalcocite (black) malachite (green)
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analogous to Kupferschiefer deposits of Poland & Germany Kupferschiefer Deposits
largest deposits of this type in the world
typically 10’s of square kilometres
➔ 31.9 million tonnes Cu & 2.9 billion ounces Ag
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skilled mining labour
with two local ejidos
production
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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.
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
stratabound copper-silver deposit model.
indicated by small, historic mines and prospects along the contact of the San Marcos – Cupido formations for 40 to 50 kilometers.
range, although mineralization has locally been found over 15+ meter intervals.
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apart but on same mineralized horizon, underscoring the district- scale potential
style of mineralization
used for preliminary metallurgical testing
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50g/t Ag over 1.7 meters thickness
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
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240 meters on 4 levels and 80 meters down dip
returned weighted average of 2.35% Cu and 184g/t Ag over 2.35m thickness
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
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Cu, 280g/t Ag in grab samples from old dumps
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2012 metallurgical recovery tests on
➢ 93% Cu recoveries ➢ low acid consumption Metallurgical program being initiated by Prize as part of 2018/2019 field work
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diamond drill program at El Granizo and Pilar Grande Mines
mapping and geological model development
define copper and silver processing options and recoveries
showings
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as high as 37g/t gold
pending.
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southeastern BC
Resources Trail Smelter nearby
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THREE IMPORTANT GOLD AND COPPER- GOLD ZONES
deposit with high grade zones
porphyry copper-gold mineralization
gold
four historic mines
PORPHYRY GOLD DEPOSIT
Au cut-off)
Au cut-off)
* 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
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PREVIOUS DRILLING HIGHLIGHTS
significant results with >1.0g/t Au
2.95g/t Au
Mineralized Trend: 1m of 25g/t Au, 2m
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TWO LARGE PROSPECTIVE GEOCHEMICAL TRENDS
1g/t Au
>1g/t Au AND highest gold-in-soil ever recorded on the property of 8.0g/t Au PREVIOUS DRILLING HIGHLIGHTS
including 0.9m of 63.7g/t Au AND 71.22m
2.76g/t Au including 1m of 5.77g/t Au
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
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
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Investor Relations
Walter Spagnuolo, Manager, Investor Relations walter@prizemining.com Tel: 604-343-8661
Mailing Address
Prize Mining Corporation 645 – 7th Avenue SW, Unit 2650 Calgary, Alberta T2P 4G8 Tel: 403-236-2222