Cu/Au Targets in Ecuador January 2019 TSX.V:LKY Forward Looking - - PowerPoint PPT Presentation

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Cu/Au Targets in Ecuador January 2019 TSX.V:LKY Forward Looking - - PowerPoint PPT Presentation

Developing World Class Cu/Au Targets in Ecuador January 2019 TSX.V:LKY Forward Looking Statement Forward-looking statements relate to future events or the anticipated performance of the Company and reflect managements expectations or beliefs


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Developing World Class Cu/Au Targets in Ecuador

January 2019

TSX.V:LKY

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Forward Looking Statement

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Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”, or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include risks related to failure to define mineral resources, to convert estimated mineral resources to reserves, the grade and recovery of ore which is mined varying from estimates, future prices of gold and other commodities, capital and operating costs varying significantly from estimates, political risks arising from operating in certain jurisdictions, uncertainties relating to the availability and costs and availability of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, uninsured risks and other risks involved in the mineral exploration and development industry. Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward-looking statements, there may be other factors that cause its performance not to be as anticipated. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These forward- looking statements are made as of the date of this presentation and the Company does not intend, and does not assume any obligation, to update these forward-looking statements. United States investors are cautioned that the terms "Measured", "Indicated" and "Inferred" Resources are used herein and that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are also cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves and not to assume that all or any part of a Mineral Resource is economically or legally mineable. Other disclaimers may be found at www.luckyminerals.com. † Qualified Persons Shaun Dykes, P.Geo .is a Qualified Person as defined in NI 43-101, who is responsible for the review of all scientific and technical information contained in this presentation.

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Investment Highlights

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  • Exploration and development company focused on mineral districts that are highly

prospective for porphyry and epithermal-related mineralization with potential to be world- class deposits

  • Experienced team aggressively pursuing projects that meet its criteria
  • Initial goals

➢ Ecuador ✓ Developing its recent El Buitre Porphyry System discovery on Fortuna 3 concession ✓ Identification of other targets for near-term exploration of the Fortuna Project, one of the largest mining claim packages in the heart of a proven mineral district in Ecuador. ➢ USA Developing its Emigrant Project in Montana

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Why Ecuador

  • Ecuador is the geological continuity of

Chile and Peru in terms of economic potential for discovery of world class Copper/Gold deposits.

  • It has the highest concentration of

volcanos after Iceland; presence of volcanos is directly linked to mineral deposits.

  • Given its geological setting and the fact

that Ecuador has been virtually untouched by modern exploration, it has quite possibly one of the lowest discovery costs on Earth.

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Ecuador Mining Situation

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Fortuna Project Acquisition

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  • Lucky acquired 100% of the 54,985 hectare (550 km2)

Fortuna property - comprised of 12 contiguous mineral concessions located 50 km south of Cuenca, the capital

  • f Azuay province
  • Consideration of 16M Lucky common shares, subject

to 36 month escrow and release restrictions, plus 5M shares over 16 months under a transition agreement

  • Year-round exploration possible with access via the

Pan American highway, secondary all-weather roads and trails to the property border

  • Power line within 10 km of the property border,

abundant water available for exploration, and a readily available workforce nearby

New Discovery Potential in the heart of Ecuador’s prolific mineral district

Fortuna

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Geological Context

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  • In 2008, an assessment done jointly by the geological surveys of Argentina, Chile,

Colombia, Peru and the United States1 whose purpose was to determine the results

  • f probabilistic estimates of the amounts of copper (Cu), molybdenum (Mo), silver

(Ag), and gold (Au) in undiscovered porphyry copper deposits in the Andes Mountains

  • f South America.

1. Quantitative Mineral Resource Assessment of Copper, Molybdenum, Gold, and Silver in Undiscovered Porphyry Copper Deposits in the Andes Mountains of South America, Published 2008, Version 1 By Charles G. Cunningham,1 Eduardo O. Zappettini,2 Waldo Vivallo S.,3 Carlos Mario Celada,4 Jorge Quispe,5 Donald A. Singer,6 Joseph A Briskey,1 David

  • M. Sutphin,1 Mariano Gajardo M.,3 Alejandro Diaz,3 Carlos Portigliati,3 Vladimir I. Berger,6 Rodrigo Carrasco,3 and Klaus J. Schulz1

U.S. Geological Survey, Reston, VA, USA. 4Instituto Colombiano de Geología y Minería, Colombia. 2Instituto de Geología y Recursos Minerales, Buenos Aires,

  • Argentina. 5Instituto Geológico Minero y Metalúrgico, Peru. 3Servicio Nacional de Geología y Minería, Providencia, Santiago, Chile. 6U.S. Geological Survey,

Menlo Park, CA, USA.

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Porphyry Copper Deposit Potential

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  • Map showing porphyry copper deposit

trends by age, discovered deposits, and prospects in the Andes Mountains

  • f Colombia, Ecuador and north of

Peru.

  • Fortuna concessions are located in

trend SA05PC (Miocene) and SA03PC (Jurassic)

by Age in the Northern Andes Mountains

  • f South America

From Cunningham et al (2008)

Fortuna

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Fortuna District Potential

  • Less than 1% of property in a highly

mineralized district has been explored

  • Discovery of the El Buitre Cu-Mo-Au

Porphyry System in July 2018

  • Placer mining, geochemical anomalies,

hydrothermal alteration & quartz veins, support epithermal Au deposits potential

  • ~40km from numerous Au

and Cu deposits:

  • Lundin Gold’s Fruta Del Norte
  • China National Rail’s Mirador
  • INV Metals’ Loma Larga

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Top Down Approach

Lucky Minerals used the same top down approach performed by the Major companies for the delineation of Porphyry Copper deposits STEP 1 Characterization of main regional structures aligned with the subduction processes that allow the formation of volcanic centers. ➢ Lucky Minerals team identified 4 regional subduction type structures on its Fortuna property. STEP 2 Identification of volcanic centers at scale is 1:100,000. ➢ Lucky Minerals team has identified 12 volcanic centers on its Fortuna property that could host potentially 12 deposits. STEP 3 Alteration mapping utilizing algorithms developed by NASA and the USGS and which were calibrated

  • n major Porphyry Copper deposits of South America; these algorithms were adapted to the Ecuadorian context..

➢ Lucky Minerals identified 4 alteration zones of interest designated as Targets A, B, C and D (measuring approxi- mately 1 km2) in its Fortuna 3 concession lying along 3 volcanic centers. The Fortuna 3 concession is the one that has the better access. Objective and priority of this approach is to narrow down a 550 km2 concession package into 4 km2 areas of highly prospective ground.

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Step 1 - Structural Exploration Model

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  • Fortuna concessions transected by

significant North-Northeast structures aligned on subduction trends

  • Similar structures in the region have

proven prolific for hosting major deposits currently being developed

Major NNE Structure Other NNE Structure

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Step 2 – Identification of volcanic centers

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  • Green dots correspond to identified

volcanic centers at Fortuna

  • Delineation of 12 volcanic centers

that represent promising exploration targets on property

Top Priority NNE Structure Major NNE Structure Other NNE Structure Top Priority Target Major Target Other Target

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Step 3 - Alteration Zones Mapping on Fortuna 3

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Argillization Propylitic Alteration Silicification Field Sampling Zones Caldera Rim

A D C B

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Fortuna 3

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El Buitre Porphyry System Overview

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El Buitre Conceptual Model

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El Buitre Porphyry Copper Deposit Model

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El Buitre Porphyry System Map

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Tier 1 Porphyry Cu/Au Systems

Feature Giant Porphyry Systems El Buitre Comments

Subduction aligned Structure √ √ NNE Structures at El Buitre Volcanic Center √ √ Oxidation Blanket √ √ Wide alteration Surface √ √ 5 km diameter at El Buitre System of scale √ √ El Buitre is 1,3 km by 1 km size Porphyry √ √ El Buitre is a Dacite Porphyry Mafic Rocks √ √ Diorite intrusive identified Sericitic Alteration √ √ Widespread at El Buitre Potassic Alteration √ √ Identified at El Buitre Sulphides Enrichment √ √ Up to 15% Pyrite at El Buitre Distal D Veins √ √ Proximal B Veins √ √ Proximal to Core A Veins √ Not observed yet at El Buitre Cu-Mo-Au Mineralization √ √ Up to 750 ppm Cu and 1,21 g/t Au

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B vein = Proximal to the Mineralization Core

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El Buitre Porphyry System Highlights

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  • Discovered in July 2018
  • An ovoid structure measuring 1,3 km by 1 km
  • Widespread Phyllic Alteration on Surface
  • K Alteration present
  • B and D veins network on Surface
  • Stockworks and Breccias identified
  • Up to 1,21 g/t Au on top of system
  • Up to 750 ppm Cu on top of system
  • Up to 300 ppm Mo on top of system

Alain Moreau, P.Geo. in El Buitre Porphyry System

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Local Team in El Buitre

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Ecuador Mining Landscape

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  • Ecuador established a mining ministry in 2015 to encourage mining investment in the

country

  • Significant involvement of majors reflects an improvement in the geopolitical environment
  • FX controls eliminated in January 2016
  • 2017 Ecuador named “Country of the Year” at Toronto Mines & Money Show
  • Mirador copper project commenced construction in 2015
  • Lundin Gold reached an agreement with the government in December 2016, allowing for

the Fruta del Norte project to proceed. Permits and project financing have been received, resulting in the underground mine opening in 2018 and construction to commence

  • Several public companies actively advancing projects at various stages of development
  • New President, Lenin Moreno, reconfirms government support of min

ining in in 2018

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Emigrant Project District

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  • Historic mining area near Livingston, Montana

(50 km) served by major roads and with rail, power and water nearby

  • USGS includes as one of the world’s giant

porphyry systems, where intrusions with deep structures provide conduits for mineralizing fluids within favourable host rocks

  • ~US$20M was invested in exploration from the

1970s-1990s

  • Several Au-Cu-Ag-Mo mineralized zones have

been identified within a 15 km2 land package, each with a conceptual 100-300 M tonne target Emigrant Project

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Directors and Management

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João Carrêlo, B.Sc., MBA Non-Executive Chairman Mining engineer with over 34 years senior executive experience in the international mining and minerals

  • sectors. Currently President, CEO and director of Lydian International and director of TMAC Resources Inc.

Previously served as EVP and COO of Lundin Mining Corporation (2007-2012) and President, CEO and Director of Eco Oro Minerals Corp. (2012-2014). Managed underground and open pit projects and operations spanning base metals, precious metals and industrial minerals in Latin America, Europe, and Africa. John Mears, P.Geo, MAusIMM CEO and Director Over 25 years experience in exploration, mining development and building companies. Was the former Chief Geologist for the Sentient Group, a major mining fund. Robert Rosner CFO and Director Over 30 years experience creating, financing and building companies, from initial concept to market buildout. Experienced officer and director of Canadian and US listed companies, with significant experience in IPOs, RTOs and M&A. Francois Perron, B.Sc, MBA Director Over 30 years of capital markets and resource industry experience. Prior to assuming executive roles with several junior gold mining exploration and development companies, he was recognized as a top portfolio manager, including for Quebec’s Caisse de Dépôt. Shaun Dykes, M.Sc. (Eng.), P. Geo Director 35 years experience in the exploration and management of mineral projects from grassroots to pre-

  • development. Was directly involved in the discovery of mineral deposits, 5 of which reached production. Was

the driving force behind the Emigrant land package consolidation. On the Technical Committee. Stuart Greene, Pr.Sci.Nat, MAusIMM Director Mine geologist, geological consultant, and Director, RMB Resources where he provided debt and equity financing to junior resource companies. Alain Moreau, M.A.Sc., P.Geo Qualified Person Over 30 years geological experience applying technology to the mineral exploration process. His expertise lies in geological systems modelling, from grassroots to resource definition.

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Corporate Information - Jan 11, 2019

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info@luckyminerals.com www.luckyminerals.com 1015-789 West Pender St, Vancouver, BC Canada V6C 1H1 866 924-6484

SHARE LISTINGS TSX-V: LKY OTCQB: LKMNF FRA: 8LM

Number of Shares % of F/D Shares Outstanding Institutional Investors 8,579,000 4.6% Management & Insiders 5,590,387 3.0% Other Investors 101,177,851 54.1% Total Basic Shares Oustanding 115,347,238 61.7% Total Warrants

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39,490,737 21.1% Total Options

2

11,628,619 6.2% Convertible Debenture Common Shares

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20,613,636 11.0% Total Fully Diluted Shares Outstanding 187,080,230 100%

1) Warrants include 4,825,001 June 2019 @ $0.10, 11,000,000 June 2019 @ $0.15, 4,166,667 October 2020 @ $0.22, 17,551,700 November 2020 @ $0.20, 1,228,619 broker warrants @ $0.20, and 718,750 Clarus warrants @ $0.22 2) Options include 4,300,000 incentive stock options @ $0.20, 1,228,619 broker options @ $0.15, 6,100,000 incentive stock options @ $0.20 3) Convertible debenture common shares calculated using maximum issuable common shares on compensation (2,613,636 shares @ $0.11) and maximum issuable common shares on make whole amount following conversion of debentures (18,000,000 shares @ $0.11)

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Opportunity Summary

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Experienced team targeting world class gold/copper projects with significant resource potential FORTUNA PROJECT → Potential to host significant gold and porphyry mineralized systems ✓ US$ 5M high impact exploration program for 2019 ✓ Infrastructure Improvement ✓ Delineation of the El Buitre Porphyry system in Fortuna 3 ✓ Geophysics: Conduct airborne magnetic and radiometry surveys on the El Buitre Porphyry system and entire 550km2 claim block ✓ Regional Geochemistry: rock, soil, stream sediment and trench/channel sampling (less than 1% covered) ✓ Identify targets for drilling and/or strategic partnerships for the El Buitre Porphyry System ✓ Easy permitting Scout drilling on the Fortuna 3 concession (up to 30 holes)

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Than Thank yo k you! u!

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