Corporate Presentation – Fall 2018 1 Operating as Liberty Silver Corp.| LSL.C
Forward Looking Statements Information set forth in this presentation may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the risks associated with outstanding litigation, if any; risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in gold and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to U.S. Shareholders. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements. 2
Re-starting a Significant Past Producer in a Historic Mining Camp • Fully Permitted: Patented ground and signed EPA Agreement. • Historic SEC Proven & Probable Reserves and Resources *: 9.1M tons @ 5.08% Zn, 2.35% Pb, 1.29 opt Ag. • Past Producer – Proven Metallurgy: The Bunker Hill Mine produced over 35M tons of ore grading 8.76% lead, 3.67% zinc, and 155 g/t silver. Zinc and lead concentrates are very clean with no deleterious elements. • Developed: Near term access to +8 years of mineable material at 1,500 tpd. • High grade zones: > 20% combined Pb/Zn. • Excellent Infrastructure/Geopolitical Risk: paved road access, low cost power, water, skilled labour, mining services, Idaho is mining friendly and a “Right to Work” state. • Exploration Potential: 3,400 DD holes show numerous high grade intercepts that were never followed up on. • Experienced Management : operated the nearby Galena Mine. *SEC Compliant Resource not to be considered NI 43-101 compliant 3
Corporate Overview Share Ownership Capital Structure CSE symbol BNKR Shares O/S 34.6 million Options 2.9 million 35% Warrants 7.4 million 42% Fully Diluted Shares O/S 44.9 million Cash (as of 03/31/2018) C$ 2.0 million Convertible Debt US$ 2.0 million 23% Mgmt/Insiders CSE: BNKR share price (1 year) Institutional Retail Institutional Shareholders Valuestone Global Resources Fund 1 RBGAM EDE Value Fund 4
Project Location 5 5
Patented Claims • Patented claims comprising 5,773 acres. 6 6
Fully Permitted • Fully Permitted: – Virtually all underground mining and mill processing permitted. Air quality permit required for crushing has 180 day lead time. No permit required for dry or paste TSF on private land, whereas a technical review required for public land. – Mine water discharge is fully permitted as per EPA’s operation of water treatment plant which processes Bunker Hill mine effluent. NDPES water permit will be required in 5 years time at which Bunker Hill can lease the plant, purchase it, or build a new one. • March 2018 EPA Agreement: – Definitively resolves long standing environmental legacy issues. – Provides environmental indemnity from potential EPA legal actions related to previous environmental contamination. – Company to reimburse the EPA for a portion of prior clean up costs (US$20M over 7 years) and to pay US$960,000 per year to cover costs of ongoing water treatment plant operation. 8
Historic Resources* P&P Zinc Lead Silver Source Zone Reserves/Resources (%) (%) (oz/ton) (tons) Cominco Engineering Services Quill/Newgard 4,669,600*** 5.01 2.87 1.61 Mine Plan (1989)** Bunker Hill Mining Company Inc. Quill/Newgard 9,141,109**** 5.08 2.35 1.29 (1991) + others *SEC Compliant Resource but not to be considered 43-101 compliant ** Above the 9 Level *** approximately 8 years of production at a throughput rate of 1,500 tpd **** approximately 17 years of production at a throughput rate of 1,500 tpd 5
Location of Newgard, Quill and UTZ Ore Bodies UTZ South Newgard NW Newgard Kellogg Tunnel & 9 Level Quill Ore Zones from 1991 Mined Out Bunker Hill Reserves 15 Level Quill Drill Indicated Resource 11
Project Setting/Geology 9 10
Project Setting/Geology • Coeur D’Alene Mining District – World Class Production and Potential World class past production: Historically the 2 nd largest silver producer in the world (> 1 billion – ounces Ag) – Significant historical production of Zinc and Lead: equivalent to approximately 100Mt of ore grading 10% Zn/Pb combined. • Prolific host rock, Extensive Structural Preparation – Mineralization (sphalerite, galena, tetrahedrite) hosted in the Revett Formation, part of the Belt Supergroup, which consists of alternating intervals of quartzite and siltite, together more than 1,200 metres thick. – Mineralization at Bunker Hill is controlled by 2 major parallel faults (Osburn and Placer Creek), with numerous splays and tensional gashes. • Significant Exploration Potential – All zones are open at depth. – Potential parallel zones (such as the South Newgard) represent further upside. 8
Past Producer – Proven Metallurgy • 90 years of production history: – 35M tons of ore grading 8.76% Pb, 3.67% Zn, and 155 g/t Ag. 8
Past Producer – Proven Metallurgy • Historical Lead & Zinc concentrate specifications (Quill and Newgard zones circa 1979) Lead Concentrate Zinc Concentrate Silver troy oz/ton 31 – 34 2 – 3 Gold troy oz/ton Nil Nil Lead % 65 – 69 1 – 2 Zinc % 5 – 7 55 – 58 Cadmium % 0.01 – 0.03 0.10 – 0.22 Copper % 0.5 – 1.0 0.10 – 0.15 Antimony % 0.25 – 0.35 0.01 – 0.03 Arsenic % 0.01 – 0.10 0.10 – 0.16 Mercury ppm 10 – 40 100 – 200 Sulfur % 15 – 17 27 – 30 Tin % Trace 0.001 – 0.002 Nickel % Trace Trace Moisture content of the concentrates is 8-10 percent. Bismuth % 0.001 – 0.005 0.001 – 0.003 Iron % 4.0 – 5.5 4.5 – 6.5 Insoluble % 1.0 – 1.5 2.5 – 3.0 Moisture content of concentrate: 8-10% 13
Developed: Near term access to 8+ years of mineable material 14
Developed: Existing Site Infrastructure The Number 2 Hoist The Number 1 Hoist 15
Higher Grades • Higher Grade Zones – Zonation: numerous areas where higher zones surrounded by lower grade halo – Significant historical production of Zinc and Lead: equivalent to approximately 100Mt of ore grading 10% Zn/Pb combined. – Stope design to minimize economically marginal ore. Eg. Level 14 Quill Zone historical diamond drill results: 62 ft of 1.9% Pb, 0.7 opt Ag, 16.6% Zn within 182 ft of 0.9% Pb, 0.3 opt Ag, 7.3% Zn • Implementation of Modern Grade Control Methods – Historically geologists were not utilized for grade control. – Miners were paid by cubic feet mined – volumes were maximized at expense of grade. – Future operation will benefit from the utilization of on-shift grade control geologists. 16
Excellent Infrastructure/Geopolitical Risk • Access: First World – commercial air travel to Seattle and Spokane, then 1.5 hours highway drive on Interstate 90: mine is 500 metres south of highway and town of Kellogg (population: 2,000). – 45 minute drive from Coeur D’Alene (population: 50,000) and 1.5 hour drive from Spokane (population: 215,000). • Power: Low cost – Industrial hydroelectric rates are 4.5-5.5 cents/kWh. • Water: Abundant – Water sources are abundant and include mine outflow & south fork of Coeur D’Alene river. • Labour and Mine Services: Developed and Available – Over 100 mines have operated in the Silver Valley for over 100 years, resulting in abundant available skilled labour and mining services suitable to local underground mining conditions. • Idaho: – has mining friendly laws and is a “Right to Work” state. 8
Recommend
More recommend
