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 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. 2
Investment Highlights • 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 3
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. 4
Ecuador Mining Situation 5
Fortuna Project Acquisition • 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 of 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, Fortuna abundant water available for exploration, and a readily available workforce nearby New Discovery Potential in the heart of Ecuador’s prolific mineral district 6
Geological Context • In 2008, an assessment done jointly by the geological surveys of Argentina, Chile, Colombia, Peru and the United States 1 whose purpose was to determine the results of probabilistic estimates of the amounts of copper (Cu), molybdenum (Mo), silver (Ag), and gold (Au) in undiscovered porphyry copper deposits in the Andes Mountains of 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. 7
Porphyry Copper Deposit Potential by Age in the Northern Andes Mountains of South America • Map showing porphyry copper deposit trends by age, discovered deposits, and prospects in the Andes Mountains of Colombia, Ecuador and north of Peru. • Fortuna concessions are located in trend SA05PC (Miocene) and SA03PC (Jurassic) Fortuna From Cunningham et al (2008) 8
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 9
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 on 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 km 2 ) 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 km 2 concession package into 4 km 2 areas of highly prospective ground. 10
Step 1 - Structural Exploration Model • 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 11
Step 2 – Identification of volcanic centers • Green dots correspond to identified volcanic centers at Fortuna • Delineation of 12 volcanic centers that represent promising exploration targets on property Top Priority Target Top Priority NNE Structure Major Target Major NNE Structure Other Target Other NNE Structure 12
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