CORPORATE PRESENTATION TSX.V: PRZ OTCQB: PRZFF FSE: MQSP Q2/2018 - - PowerPoint PPT Presentation

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CORPORATE PRESENTATION TSX.V: PRZ OTCQB: PRZFF FSE: MQSP Q2/2018 - - PowerPoint PPT Presentation

ME MEET ETING ING THE THE DEM DEMAND ANDS S OF AN OF AN ELECTRI ELEC TRIFIED FIED WORLD ORLD HIGH GRADE COP P E R IN M E XICO CORPORATE PRESENTATION TSX.V: PRZ OTCQB: PRZFF FSE: MQSP Q2/2018 Cautionary Statement FORWARD LOOKING


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SLIDE 1

ME MEET ETING ING THE THE DEM DEMAND ANDS S OF AN OF AN ELEC ELECTRI TRIFIED FIED WORLD ORLD

CORPORATE PRESENTATION

Q2/2018

TSX.V: PRZ OTCQB: PRZFF FSE: MQSP

HIGH GRADE COP P E R IN M E XICO

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SLIDE 2

Cautionary Statement

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 perceived merit of properties, exploration results and budgets, mineral resource estimates, the potential to increase estimated minerals resource work programs, capital expenditures, operating costs, resource estimates and similar statements relating to the economic viability of a project, timelines, strategic plans, including the Corporation’s plans and expectations relating to the Manto Negro Copper properties (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 regulation of 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 other factors that could cause actual performance, achievements, actions, events, results or conditions to be materially different from those projected in the forward-looking statements, including price volatility of the Corporation’s 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 other risks of the mining industry and those factors disclosed under the heading “Risk Factors” in the Corporation’s documents filed from time to time with the securities regulators in the provinces of Canada. This list is not exhaustive of the factors that may affect any of the forward- looking statements. Forward-looking statements are statements about the future and are inherently uncertain, and the Corporation’s actual achievements or other future events or 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. SCIENTIFIC AND TECHNICAL INFORMATION A copy of the technical report titled “Technical Report Manto Negro Property Coahuilla State, Mexico” date March 27, 2018 by Norwest Consultants Ltd. of Calgary, Alberta is available on the Prize Mining web site at www.prizemining.com or on SEDAR profile of Prize at www.sedar.com.. A copy of the technical report for the Kena Project entitled “Technical Report for the Kena Project, Nelson, BC” dated June 2, 2017 with an effective date of January 7, 2017 (the “Report”) prepared for Prize Mining Corporation by Vivian Park,

  • P. Geo., VPG Geosciences, and Gary H. Giroux, P.Eng., Giroux Consultants Limited (Ltd.), is available on SEDAR profile of Prize at www.sedar.com. No material work has been undertaken on the Kena Project since the effective date of the
  • Report. Please refer to the Report For additional information regarding the Kena Project.

UNITED STATES SECURITIES ACT OF 1933 The securities of Prize Mining offered for sale on a private placement basis have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws. Accordingly, the securities offered thereby may not be offered, sold or delivered within the United States of America, its territories or possessions (the “United States”), or to or for the benefit or account of any U.S. person (as defined in Regulation S under the U.S. Securities Act), except in transactions exempt from such registration.

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SLIDE 3

Investment Highlights

The Manto Negro Project

  • High grade district scale oxide copper project in Coahuila State, northeastern Mexico
  • Red Bed Kuperschiefer style oxide copper with grades at surface from 1% to over 3% Cu
  • Metallurgical testing suggests strong recoveries (93%) in reasonable timeframe with low acid consumption
  • 17,600 hectares of land, 100 % owned, no royalties, 30+ high grade showings over a 50 kilometer trend
  • Near term resource development and production opportunity

The Market

  • Copper demand and prices have been steadily increasing with the global electrification of society only set to
  • accelerate. This market will remain very strong for many years

The Company and the Team

  • Expert management and board with proven success of creating shareholder value by building valuable mining

companies around the world

  • Prize has two valuable and strategic assets with copper in Mexico and gold and silver in British Columbia
  • We have the management, operators and vision to leverage these unique opportunities

3

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SLIDE 4

Prize Mining Team and Capital Structure

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Capital Structure

Shares Outstanding:

56,416,864

Warrants @ $0.50: Options @ $0.50:

9,173,985 5,900,000

Fully Diluted:

74,490,849

Cash on Hand*:

  • Approx. C$1.4

mm

Insider Ownership:

Approx. 11.5%

* As of end of February 28, 2018

Executive Management and Board Michael McPhie, B.Sc., M.Sc., QEP -

President and CEO, Director

Feisal Somji, B.Sc., MBA - Executive

Chairman

Robert Archer, P.Geo. – Director David Schmidt, B.Asc. – Director Raul Ramirez, BA – Director Tom Pierce, CA - CFO

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SLIDE 5

Copper Market

  • Copper is currently in a supply deficit which is likely

to increase over the next three to five years. A Chinese economic recovery, rising demand from electric vehicle manufacturers and US and Asian infrastructure plans are all driving copper demand and improved prices.

  • Against rising demand, supply is insufficient.

Demand is expected to rise from 23 million tonnes this year to 25.1 million tonnes in 2022. Mine supply will lag, reaching 21-21.5 million tonnes by 2021. That is a serious supply gap.

  • New copper projects are limited due to low grades,

high capital costs, remote locations and long permitting and development timelines.

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SLIDE 6

Copper (Cu) Market Drivers

  • OECD/IEA 30@30 campaign set a goal

for member nations to achieve 30% EV market share by 2030.

  • By 2025 they predict between 40 to 70

million EVs.

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  • -data points by mining.com / IEA.org
  • Electric Vehicles (EV): 4 times more Cu per vehicle.
  • Internal Combustion versus EV: average 23kg of Cu. vs. average 83kg of Cu.
  • New Copper demand predicted to grow from 185,000 tonnes (2017) to 1.74

million tonnes (2027) – a ninefold increase – driven by EV adoption.

  • In addition, vehicle chargers add 0.7kg Cu each. Fast chargers add 8kg each.
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SLIDE 7

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Manto Negro Oxide Copper Project Coahuila State, Mexico

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SLIDE 8

Manto Negro Copper Project

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  • Sedimentary stratabound oxidized “Red Bed type” copper

deposits

  • Property is analogous to the Kupferschiefer-type and

Zambian/DRC Copper Belt deposits that are some of the richest globally

  • Former BHP property with 20 km+ trend of high grade oxide

Cu, Ag and Zn

  • Hosted by Cretaceous carbonates and sandstones
  • Lensoid mineralized thickness from 1.5m to 23m
  • Zones average 0.73% to 5.5% Cu, 19 to 793 g/t Ag
  • Pipes and veins of richer Cu-Ag oxide and sulphide

mineralization outcropping at various locations

Rich copper mineralization from Ojitos Manto Cuprite (black) Malachite (green)

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SLIDE 9

Manto Negro Project – Location and Setting

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  • Coahuila State, NE Mexico
  • Cuatro Ciénegas Area
  • Safe, easy road access
  • 100 percent ownership of approximately 17,600

hectares

  • Located proximal to mid-size cities with access to

skilled mining labour

  • Excellent working relationship and agreements in place

with two local ejidos communities

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SLIDE 10

Manto Negro Project Area

10 35 high grade Cu showings over 20 km 20 km

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SLIDE 11

Manto Negro - Geology

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  • Manto Negro is a sediment-hosted stratiform copper-silver-lead-zinc
  • deposit. Mineralization is associated with the contact of the clastic

(redbeds) of the San Marcos formation and the overlying limestone

  • f the Cupido formation indicative of a sediment-hosted stratiform

copper-silver-lead-zinc deposit of the Kupferschiefer-type (red-bed type).

  • The Manto Negro area 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.

  • Within

the Manto Negro area lateral exploration potential is indicated by mines and prospects along the contact of the San Marcos – Cupido formations for 40 to 50 kilometers.

  • Typical thicknesses are in the 1 - 8 meter range, although

mineralization has locally been found over 15 + meter intervals

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SLIDE 12

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Recent Sample Results*

  • 2.61 % Cu over 7 meters

and 2.22 % Cu over 8.9 meters at Pilar Grande

  • 5.46 % Cu over 1.25 meters

at El Granizio

  • 45.5% Cu and >1,500g/t Ag
  • ver 0.25 meters at Los

Ojitos

* See Prize press releases dated February 28 and March 14, 2018.

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SLIDE 13

Surface Features

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Buena Suerte Zone 800 x 6 meters wide El Granizo Zone 500 x 8 meters wide Outcrop Manto La Curva Zone 5 meters wide

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SLIDE 14

Manto Negro South

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MAP

  • More than a 9 km strike

length

  • 10 new copper prospects
  • 3 target zones
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SLIDE 15

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Copper Recoveries

2012 tests demonstrated:

  • 93% Cu recoveries
  • Very low acid

consumption Full metallurgical program being initiated by Prize

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SLIDE 16

Infrastructure

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  • Major highway and rail proximal to

property

  • High voltage power nearby
  • Full service commercial centre
  • Water available on site for ultimate

production

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SLIDE 17

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7.5 km of Trench in Mineralized Zone

Proposed 2018 Program

  • 15, 000 to 20, 0000 diamond drill program to

build copper oxide resource.

  • Detailed metallurgical program to confirm

recoveries

  • Data compilation and geological model

development

  • Structural and stratigraphic mapping and

targeted geophysics

  • Resource estimate by end of 2018
  • Project economic evaluation
  • Initiate permitting for commercial operations
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SLIDE 18

Manto Negro Future Potential Production Profile

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  • Heap leach – SX/EW processing producing pure copper

cathode

  • Surface open pit and underground mining
  • Production targeting 60 + million pounds of annual

copper cathode production for greater than 10 years

  • Extensive regional exploration program to build multi

year production opportunity

  • Lowest quartile costs both in terms of capital to start
  • perations and operating costs
  • Goal is to start development in 2019 and initial

production by 2020/2021

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SLIDE 19

Conclusions

Grade

  • Mantos average range 1.5% to > 5%
  • Higher grade areas of 6% to 8%
  • High silver, lead and zinc
  • Expect resource grades at 1% - 2%

range

Size

  • Just under 18,000 hectares
  • District scale opportunity
  • More than 35 showings over

20 + km trend

  • Typical thickness in the 1 to

8 meter range

  • Similar in style to Zambian

and DRC copper deposits

Production

  • Oxide deposit amenable to low

cost high recovery leaching

  • Surface open pit mining or room

and pillar underground

  • Easy access to infrastructure

including power, water and road 19

100% Owned │ District Scale │ No Royalties Manto Negro Copper Project

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SLIDE 20

Kena & Daylight Gold Project Nelson, British Columbia

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  • Prize Mining’s advanced stage Kena project represents a 43-101 gold resource of 481,000
  • unces Indicated, and 1,318,000 ounces Inferred with potential for higher grade targets.
  • Kena, Daylight and Toughnut Properties have been consolidated under one option package

and one work program. Consolidation provides for a district wide approach to tie together a larger trend extending several kilometers.

  • The Daylight claims have four historical producing mines with grades as high as 37 g/t gold.

The Company’s focus on the Daylight property is on four large gold-bearing targets.

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SLIDE 21

Location and Infrastructure

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  • South-Eastern BC
  • 10 km from town of

Nelson

  • Paved highways
  • Rail line nearby
  • Local work force
  • Power lines cross the property
  • Local service and supply

companies

  • Teck Resources Trail Smelter

lies 45 minutes south via paved highway

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SLIDE 22

Kena Property

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THREE IMPORTANT GOLD AND COPPER-GOLD ZONES

KGM GOLD DEPOSIT Bulk tonnage gold deposit with high grade zones DAYLIGHT GOLD AREA High Grade Gold Veins characterized by four historic mines COPPER KING ZONE Bulk tonnage porphyry copper-gold mineralization PORPHYRY GOLD DEPOSIT

  • 24,890,000 Tonnes INDICATED
  • Containing 481,000 ounces GOLD
  • Average grade 0.60 g/t Au
  • 85,790,000 Tonnes INFERRED
  • Containing 1,318,000 ounces GOLD
  • Average grade 0.48 g/t Au (Using a 0.3 g/t GOLD Cut-off)

* Resource can be expanded with additional drilling. ** Mineral resources that are not mineral reserves do not have demonstrated economic viability. *** Resource estimate by Giroux and Park (2017).

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SLIDE 23

Daylight Property

23 TWO LARGE PROSPECTIVE GEOCHEMICAL TRENDS

  • Great Western anomaly: 48 soil samples over 100ppb Au
  • The Starlight-Daylight trend: 9 soil samples >100 ppb Au

AND highest gold-in-soil ever recorded on the property

  • f 8,009 ppb Au (8.0 g/t).

DRILLING HIGHLIGHTS

  • Great Western anomaly: 32.6m of 1.16 g/t Au including

0.9m of 63.7g/t Au AND 71.22m of 1.09 g/t Au

  • Starlight-Daylight trend: 5m intercept of 2.76 g/t Au

including 1m of 5.77 g/t Au.

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SLIDE 24

Toughnut Property

24 DRILLING HIGHLIGHTS

  • Gold Eagle Mineralized Trend: 38 significant

results with >1.0g/t Au

  • Gold Eagle Trend North: 5.45m of 2.95 g/t Au
  • Gold Eagle Trend South, Open Mineralized

Trend: 1m of 25g/t Au, 2m of 5.58 g/t Au

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SLIDE 25

Summary

  • Manto Negro Oxide Copper Project contains sediment-hosted copper mineralization analogous to

some of the world's most prolific producers. District-scale potential, good grades at or near surface, and excellent recoveries by leaching imply low capital and operating costs.

  • Near term goal is to undertake a detailed exploration program to build a resource for Manto Negro

allowing for an economic assessment of the deposit to evaluate future development and production

  • pportunities.
  • Our southeastern BC located Kena-Daylight Gold Project is for the first time being looked at from a

district-wide approach. The Kena Property has a NI 43-101 resource of an indicated 481,000 ounces

  • f gold as well as an inferred 1,318,000 ounces of gold. The Daylight claims have four historical

producing mines with grades as high as 37 g/t gold. The Company’s focus on the Daylight Property is

  • n four large gold-bearing targets.
  • The Company remains committed to adding resources through both drilling and acquisition and offers

a diversified, strategically managed approach with a big picture outlook.

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SLIDE 26

www.prizemining.com

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OTCQB PRZFF TSX.V PRZ FSE MQSP

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