Creating value by advancing towards a commercially viable Copper-Gold Porphyry deposit at the Miner Mountain Project in southern British Columbia, Canada
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Creating value by advancing towards a commercially viable - - PowerPoint PPT Presentation
Creating value by advancing towards a commercially viable Copper-Gold Porphyry deposit at the Miner Mountain Project in southern British Columbia, Canada 1 CAUTIONARY DISCLAIMER: FORWARD LOOKING STATEMENTS Certain statements contained
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Certain statements contained herein regarding the Company and its operations constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations for future performance, are “forward-looking statements.” We caution you that such “forward-looking statements” involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company
Company’s filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Dr. Selina Tribe is the Qualified Person for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements.
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“Sustained growth in copper demand is expected to continue because copper is essential to economic activity and even more so to the modern technological society.” (International Copper Study Group)
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Resources $214 million
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$5,100 million
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existing production declines and demand continues to grow steadily. We also expect M&A to grow steadily as copper prices rises over the next few years.
in our coverage universe are trading at $14,260 per tonne of annual copper production while the cost to build is estimated to be $14,444/t on average suggesting it may make sense to buy production to get immediate cash flow and avoid execution risk of building a new project. Junior copper explorers have received renewed attention and the base metals juniors we track are now trading at $0.03/lb (EV/lb CuEq M&I+I) which remains below the average transaction price since 2010 of $0.07/lb.
Sego Resources Inc. is defining a large, new, copper-gold porphyry system in the world- class Nicola Belt in southern British Columbia. Sego’s exploration drilling at Miner Mountain has already intersected significant copper- gold mineralization near-surface and at 200 vertical metres depth in multiple holes. Four main zones of alkalic copper-gold porphyry mineralization have been discovered. These four zones feature mineralization, alteration and geology typical of other porphyry deposits found in the Southern Nicola Belt, within 100 kilometres of Sego’s Miner Mountain such as the Copper Mountain mine, New Afton mine and Ajax deposit. Sego plans to drill out these zones in order to define copper-gold resources while also testing new targets on the property. Extensive further drilling and trenching are planned in 2019.
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In 2010 KHGM acquired ownership of the Ajax Deposit from Abacus. In 2011 Copper Mountain’s (TSX:CMMC) Copper Mountain Mine
In 2012 New Gold’s (TSX:NGD) New Afton Mine opened. In 2013 Thompson Creek Metals (now Centerra TSX:CG) Mt. Milligan Mine opened. In 2015 Imperial Metals (TSX:III) Red Chris Mine opened. (2019 Newcrest bought 70% for $806 Million) In 2018 Centerra acquired the advanced Kemess Underground deposit, by acquiring AuRico. BC Porphyry Deposits as of 2013 14
Sego’s Miner Mountain hosts a large scale, copper- gold alkalic porphyry target northeast of Princeton BC:
Nicola Belt of the Quesnel-Stikine Terrane, which currently contains 5 copper-gold porphyry mines: Copper Mountain Mine, New Afton Mine, Mount Polly Mine, Mount Milligan Mine, and Red Chris Mine.
altered porphyry system containing excellent copper- gold grades and located along the same regional fault system as the Copper Mountain mine.
depth (DDH 30); recent drilling indicates mineralization increases with depth (DDH 30).
plus extensive infrastructure in a mining-friendly jurisdiction.
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New Afton
Vancouver
Sego’s Miner Mountain
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Current Reserves P+P (2018) 133 Million Tonnes at 0.35% Cu 0.12 g/t Au 1.47 g/t Ag Current Resources (2018) 244 Million Tonnes 0.33% Cu 0.11 g/t Au 1.36 g/t Ag (M+I) at 0.18 % Cu Cut Off 294 Million Tonnes 0.28% Cu 0.12 g/t Au 1.13 g/t Ag (Inf) at 0.18% Cu Cut Off Past Production (1925-1997) 1925 -1957 31.5 Million Tonnes of 0.88 % Cu 0.15 g/t Au and 4.33 g/t Ag 1970 -1996 369 Million Tonnes of 0.43% Cu 0.11 g/t Au and 1.73 g/t Ag Current Production (2011 - Present ) 112 Million Tonnes of 0.34% Cu 0.09 g/t Au 1.17 g/t Ag Copper Mountain and Mitsubishi Agreement
Current Production + Current Resources + Past Production (including Ingerbelle)
All Numbers from Copper Mountain Website (March 2018), and BC Minfile
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A total of 7615 metres of diamond drilling and 9,044 metres of percussion drilling have been completed by Sego to date, mainly on the Granby- Cuba Zone and the South Zone (green stars). The Granby-Cuba Zone is upslope from a 500,000 tonne copper-gold mineralized slide block. Drilling at the Granby-Cuba Zone has identified an a extensive (1,400 m x 220 m) zone of copper-gold mineralization, with grades up to 0.95% Cu and 0.55 g/t Au over 100 metres (DDH 21). The South Zone is a lightly tested copper-gold-silver breccia target with grades of up to1% Cu and 1 oz Au in surface trenching. Trenching in the Dorothy zone recently returned 27 m 0.6% Cu, 0.22 g/t Au Geophysics have confirmed two (yellow stars) other targets similar to the Granby-Cuba Zone.
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24 DDH 30:105 m of 0.30% Cu, 0.07 g/t Au, 2.23 g/t Ag DDH 29: 21 m 1.17% Cu, 0.30 g/t Au, 4.0 g/t Ag DDH 24:128 m of 0.34% Cu, 0.29 g/t Au, 0.97 g/t Ag DDH 21:100 m of 0.95% Cu, 0.55 g/t Au, 3.37 g/t Ag DDH 33 45 m 0.23 % Cu, 0.05 g/t Au 1.33 g/t Ag DDH 34 21 m 0.38 % Cu, 0.05 g/t Au and 39 m 0.29 % Cu, 0.05 g/t Au DDH 37 11 m 0.60% Cu, 0.30 g/t Au, 4.0 g/t Ag (ends in mineralization)
2018 DDH highlights
Highlights from Sego’s 2018 drilling at Miner Mountain DDH 37 11 metres of 0.60% Copper, 0.30 g/tonne Gold, 4.0 g/tonne Silver (ending in mineralization) DDH 34 21 metres of 0.38 % Copper and 0.05 g/tonne Gold and 39 metres of 0.29% Copper and 0.05 g/tonne Gold DDH 33 45 metres of 0.23 % Copper 0.05 g/tonne Gold 1.33 g/tonne Silver
Backing up prior results of:
DDH 04: 64.24 m of 0.46% Cu, 0.14 g/t Au, and 2.58 g/t Ag DDH 24: 128 m of 0.34% Cu, 0.29 g/t Au, 0.97 g/t Ag DDH 09: 52.47 m of 0.41% Cu, 0.12 g/t Au, and 2.11 g/t Ag DDH 28: 69.5m 0.257% Cu, 0.193 g/t Au, 0.644 g/t Ag DDH 11: 62.79 m of 0.355% Cu, 0.165 g/t Au, and 2.52 g/t Ag DDH 21: 100 m of 0.95% Cu, 0.55 g/t Au, 3.37 g/t Ag DDH 16: 96.62 m of 0.31% Cu, 0.08 g/t Au, and 1.76 g/t Ag DDH 23: 31.48m of 0.172% Cu 0.228 g/t Au 0.619 g/t Ag D DDH 29: 21 m 1.17% Cu, 0.30 g/t Au, 4.0 g/t Ag DDH 30: 105 m of 0.30% Cu, 0.07 g/t Au, 2.23 g/t Ag
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In 2013 Sego flew an extensive 288 line kilometres Helimagnetic and Radiometric survey over Miner Mountain. This was the first survey of it’s kind on the property. Global major mining company Teck Resources Ltd.’s former Chief Geophysicist Dr. Jules Lajoie was engaged by Sego to examine the geological & geophysical data collected and generate an independent analysis of the property. He concluded: “The map displays numerous magnetic anomalies, highs and lows, and along with strong evidence of structural disturbance (faulting), it shows a setting permissive for multiple intrusions and clustering of alkalic Cu-Au deposits.” Black circles on map shows new exploration targets
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These types of deposits occur in clusters (Cadia, Mt Polley, Copper Mountain, Galore Creek) It is likely that that is the case here. Sego has defined four more targets that have a pattern similar to the Granby-Cuba Zone and have remained untested, and unsuspected until now. These targets are a combination of IP (chargeable sulfides), low magnetics (altered rock) and Structure common to alkalic copper-gold porphyry deposits. Each one of these new zones is as big if not bigger than the Granby-Cuba Zone. Exploration will focus on drilling to expand the new zone at the Granby-Cuba Zone, and test beneath the cap at these new targets.
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Trenching locates bedrock beneath the glacial till. The depth of till is impossible to estimate and can range from inches to metres thick. We begin with a hole and if we can reach rock we decide if the alteration is of interest or if mineralization is present. If there is no interest we re-fill and move to the next location. If there is interest we begin a series of trenches to better locate alteration and mineralization. Please note in the above trench we found excellent alteration. Just 200 metres away we found some very high grade mineralization in a trench that was in bedrock with less than one metre of till covering it.
year-round cost-effective exploration is possible (Princeton, British Columbia),
exploration success and shareholder wealth.
(Diamond Drill Hole 21: 100.39m of 0.95% Cu, 0.55 g/t Au, and 3.5 g/t Ag)
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reached a market capitalization of over US$350,000,000 after taking the Morrison Project to Preliminary Economic
Brent Petterson, CPA, CFO, Director - Brent is a Chartered Professional Accountant with extensive experience working with public mineral exploration companies. Selina Tribe PhD, P. Geo, Director - Selina is a Professional Geoscientist with over 20 years experience in mineral exploration and resource development. She served with Pacific Booker Minerals from 2008 to 2011 and was instrumental in advancing the Morrison Project through environmental assessment. She is a Qualified Person under NI 43-101, and a registered member of Engineers & Geoscientists BC since 1999. Jean-Pierre Colin, LL.L., MBA, Director - Jean-Pierre is a corporate strategy consultant to high-growth publicly-listed mining companies. He is a recognized senior securities industry executive and investment banking professional providing financing and mergers and acquisitions services to numerous prosperous mining issuers in Canada. Mr. Colin holds an MBA from the University of Western Ontario, and a Law Degree from the University of Ottawa. David Speck, CFA, Director - David is currently President of 3D Imaging Partners, a medical software company based in Toronto. Mr. Speck has numerous years of experience in senior management, including his role as Director and Vice- President of Polar Star Mining. Mr. Speck is a graduate of the University of Guelph and completed his Chartered Financial Analyst (CFA) degree in 1994.
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James Allan Hilton, Director - Al has been active in mineral exploration and public markets for 40 years. He served as Director of Pacific Booker Minerals Ltd. from 1993 to 1995. He is credited with the discovery of the Samatosum Mine, a past- producing silver mine located near Adams Lake, BC. Ken Willington, Director - Ken has over 40 years of experience with capital markets as broker and trader. He is an Independent Director and member of Sego Resources Inc.’s Audit Committee. Shelley Hallock, Director - Shelley served as Director of Pacific Booker Minerals Inc. from 1995 to 2005. Shelley is an Independent Director and member of Sego Resources Inc.’s Audit Committee since 2005.
“Sego Resources is excited to advance the Miner Mountain Copper-Gold project. With our proven experience in developing BC copper porphyry projects, we’re confident that our talented team will continue to outline a copper-gold deposit that could greatly enhance shareholder value. Our flagship Miner Mountain project presents the Company with a rare, near-term opportunity to bring a viable copper-gold project to the global mining industry. With most analysts expecting the demand for copper to increase further over the next five years, Sego is perfectly situated to achieve maximum value from the development of an large, new, exciting copper project in Canada.” – J. Paul Stevenson, CEO
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Current Stock Information February 14, 2019
Trading symbol: S G Z Stock Exchange: TSX Venture Shares Outstanding: 106,310,327 Potential Dilution: 31.8 million Recent price: C$0.045 share Market Capitalization: C$ 4.8 million Total Exploration Expenditures To Date: C$4.60 million
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Tables of Warrants and Options Options Outstanding
Number Exercise Price If exercised value Expiry Date 8,335,000 $0.10 $835,000 April 16, 2023
Warrants Outstanding
Number Exercise Price If exercised value Expiry Date 2,925,000 $0.10 $292,500.00 June 15, 2020 8,440,200 $0.10 $844,020.00 June 15, 2020 3,500,000 $0.10 $350,000.00 August 15, 2020 3,050,000 $0.10 $305,000.00 August 15, 2022 710,000 $0.10 $ 71,000.00 August 31, 2020 4,239,800 $0.10 $423,980.00 August 31, 2022
Agent’s Options
Number Exercise Price If exercised value Expiry Date 243,600 $0.05 $12,180.00 June 15,2020 193,900 $0.05 $9,695.00 August 15, 2020 91,350 $0.05 $4,567.50 August 31, 2020 35
Sego Resources Inc. Suite 310 - 744 West Hastings Street Vancouver, British Columbia Canada V6C 1A5 For more information contact:
CEO/Director Director Ph: (604) 682-2933 Ph: (416) 573-4300 Email: ceo@segoresources.com Web: www.segoresources.com
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For discovering alkalic porphyry’s, as will be shown, the present is the key to the past. Modern tectonic environments are the key to deciphering the prospective areas to look for Alkalic Au-Cu porphyry’s. This map of the Philippines shows the intimate relationship between the presence of orthogonal subduction zones and their subsidiary arc parallel structures (yellow), and cross faults (red), and the location of porphyry copper-gold deposits. These deposits need the extensional stress created by the compression of two plates, to create the openings for fertile intrusions to rise to the surface. Using this modern knowledge we can predict the structural environments
structure parallel to the main structure, while large volcanoes (the root sources of porphyry copper deposits will form at the intersection of fault zones, or alternatively where there are large fault bounded “breaks” (dilational zones) that allow intrusions to rise to the surface.
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Going back to our model and looking at the known mineralization of the Southern Nicola Group we can see that the suite of deposit types, follow the model and strongly indicate that they formed in an extensional environment, caused by oblique convergence
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The Alteration and Metallogeny of Alkalic Porphyry Cu – Au deposits is zoned outward from the core, from a high temperature -low sulphidation environment to a cooler more sulphur rich environment. The metals go from a copper-gold rich core to a disseminated Au-Ag /Zn-Pb environment. Likewise alteration minerals go from high temperature orthoclase- magnetite-biotite through albite(with occasional hematite dusting)-actinolite to cooler epidote-chlorite-calcite assemblages.
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Above: Large Chalcopyrite (Cpy) Vein in Chlorite/ Albite Matrix (DDH 21) Above: Banded Bornite (Bn) and Chalcopyrite, in Calcite Vein in Chlorite/Epidote/K-Spar altered Intrusive (DDH 16)
Right – Chalcopyrite in Potassic Alteration (DDH 30) 41
Propylitic Alteration (Thin Section) Epidote + Chlorite + Calcite + Hematite ±Cu Mineralization Potassic Alteration (Thin Section) K-Spar + Magnetite ±Cu Mineralization Argillic Alteration (Thin Section) Kaolinite/Illite + Gypsum + Carbonate + Pyrite Albitic Alteration (Hand Specimen) Albite + Chlorite + Epidote ± Sulphides 42
In 2010 KHGM acquired
Deposit from Abacus In 2011 Copper Mountain’s (TSX:CMMC) Copper Mountain Mine opened In 2012 New Gold’s (TSX:NGD) New Afton Mine
In 2013 Thompson Creek Metals (now Centerra TSX:CG) Million Tonne Milligan Mine opened In 2015 Imperial Metals (TSX:III) Red Chris Mine
In 2018 Centerra acquired the advanced Kemess Underground deposit, by acquiring AuRico BC Porphyry Deposits as of 2013 43