Pinaya-Copper Gold Project, Peru
December 2019 EXPLORING WITH STRONG PARTNERS AND LEADING-EDGE - - PowerPoint PPT Presentation
December 2019 EXPLORING WITH STRONG PARTNERS AND LEADING-EDGE - - PowerPoint PPT Presentation
CORPORATE PRESENTATION December 2019 EXPLORING WITH STRONG PARTNERS AND LEADING-EDGE TECHNOLOGY Pinaya-Copper Gold Project, Peru Forward-looking Statements The TSX-V has neither approved nor disapproved the contents of this presentation.
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The TSX-V has neither approved nor disapproved the contents of this presentation. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this presentation. Certain statements in this presentation constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”, “foresee” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect Kaizen’s current expectations regarding future events, performance and results and speak only as of the date of this presentation. These include, but are not limited to, statements regarding: Kaizen’s plans to commence a drilling program at Pinaya once all required financing has been received; potential amendments to the planned Pinaya work program to account for the time it took to issue the Authorization to Commence Activities; finalizing renegotiated community and landowner access agreements and local weather conditions; the expectation that future financing will pay for the planned first phase of exploration at Pinaya and the identification and acquisition of high quality mineral projects that match evaluation criteria and align with corporate strategic objectives of the Company. Such statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Kaizen or its mineral projects, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. In making such statements, Kaizen has made assumptions regarding, among other things: general business and economic conditions; the availability of additional exploration and mineral project financing; the supply and demand for, inventories of, and the level and volatility of the prices of metals; ongoing relationships with strategic partners; the timing and receipt of governmental permits and approvals; changes in regulations; political factors; the accuracy of the Company’s interpretation of drill results; the geology, grade and continuity of the Company’s mineral deposits; the availability of equipment, skilled labour and services needed for the exploration and development of mineral properties; and currency fluctuations. This presentation also contains references to estimates of Mineral Resources. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that ultimately may prove to be inaccurate. Mineral Resource estimates may have to be re-estimated based on: (i) fluctuations in mineral prices; (ii) results of drilling; (iii) metallurgical testing and other studies; (iv) proposed and completed mining exploration programs; (v) the evaluation of exploration and drilling plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licenses. These forward-looking statements are made as of the date of this presentation and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, Kaizen does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this presentation. Forward-looking information is designed to help you understand management’s current views of the Company’s near and longer term prospects, and it may not be appropriate for other purposes. Kaizen will not update any forward-looking statements or forward-looking information unless we are required to by applicable securities laws. The forward-looking statements contained herein are based on information available and are made as of June 28, 2019.
Forward-looking Statements
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Disclaimer and Qualified Persons
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The information in this presentation is published to inform you about Kaizen Discovery and its activities. To the extent permitted by law, Kaizen Discovery accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation. Recipients should make their own enquiries in relation to any investment decisions. This presentation does not constitute an offer to sell, or a solicitation
- f an offer to buy, any securities in any jurisdiction, including the United States.
Mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and it is uncertain if further exploration will result in the any resource reported herein being delineated as a mineral reserve. NI 43-101 Qualified Persons Pinaya Copper-Gold Project: The scientific and technical information herein related to the Pinaya Project has been reviewed and verified by Mark Gibson, PrNatSci, Chief Operating Officer of the Company, a Qualified Person under the terms of NI 43-101. Mr. Gibson is not independent of Kaizen. The Mineral Resources disclosed herein for the Pinaya Project are reported in the NI 43-101 Technical Report dated April 26, 2016, “Pinaya Gold-Copper Project Technical Report” (the “Technical Report”) prepared jointly by Brian Cole, P.Geo. and Ronald G. Simpson, P.Geo. (Geosim Services Inc.). Both
- Mr. Cole and Mr. Simpson are independent of Kaizen.
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INVESTMENT HIGHLIGHTS
- Pinaya Copper-Gold Project (100% held by Kaizen) − potential for a major
discovery:
- Current resource open to further expansion with additional step out drilling
(north, south and at depth).
- Untested and underexplored mineralized occurrences across the project
area.
- Fully permitted drill program set to commence in 2019.
- Strong board and management team with extensive industry experience.
- Backed by High Power Exploration Inc. (“HPX”), a private exploration
technology company led by Robert Friedland – HPX holds 67% of Kaizen.
- Exclusive access to ground-breaking technological hardware and software
solutions to address the limitations of existing exploration technology.
- Building a select portfolio of high-quality, copper exploration assets
in the Americas.
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Pinaya Copper-Gold Project, Peru
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MANAGEMENT AND TECHNICAL TEAM
Gustavo Zulliger Vice President, Exploration
Specializes in exploration of porphyry copper and epithermal systems in South America’s high-Andes region; 22 years of experience in mineral exploration, project generation, and project evaluation.
Greg Shenton Chief Financial Officer
More than 30 years of mining industry experience; Vice President and Director of Ivanhoe Capital Corporation.
Mark Gibson Chief Operating Officer
Chief Operating Officer
- f High Power Exploration Inc.;
formerly with Anglo American.
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Catalina (Katty) Vargas General Manager
24 years of experience working for international exploration and mining companies active in Peru;
- wner and founder of Cavato, a Peruvian
consulting services company that provides support to active mining companies in Peru.
Eric Finlayson – Interim President and CEO CEO, Cordoba Resources, President of High Power Exploration Inc. (HPX); spent 24 years with Rio Tinto, including five years as Rio's Global Head of Exploration.
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BOARD OF DIRECTORS
Terry Krepiakevich Chairman of Audit Committee Former Chief Executive Officer of Meryllion Resources Corp.; former Chief Financial Officer of SouthGobi Resources Ltd. Eric Finlayson - Chairman CEO, Cordoba Resources, President of High Power Exploration Inc. (HPX); spent 24 years with Rio Tinto, including five years as Rio's Global Head of Exploration. David Boehm Former senior partner of Grant Thornton in Hong Kong, and a director of Ivanhoe Capital Pte Ltd.
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WHY COPPER?
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- Long term supply deficit is forecast due to declining mining grades.
- Fewer large mines being commissioned will reduce future supply further.
This will lead to an increasing copper price.
- Steady increase in demand is forecast, fuelled by growth in emerging
economies requiring the metal for infrastructure projects and the growing market for electric vehicles.
10,000 16,000 22,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Operating High Probability Medium Probability Low Probability Mine Supply Requirement
Supply required to meet demand 5.7 million tonne deficit by 2030
Source: S&P Global Market Intelligence
Projected Mine Production
000s tonnes
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ACCESS TO PROPRIETARY TECHNOLOGY
CONVENTIONAL IP/EM SYSTEM TYPHOON IP/EM SYSTEM
>2000m <500m >2000m >2000m
Blind zone
<500m
FASTER
Can be substantially faster than conventional methods for deep targets due to custom survey deployment.
DEEPER
A high signal/noise ratio and long electrode separation enables deeper prospecting.
BETTER
Increased effectiveness through improved resolution of targets and host geology.
The combination of proprietary hardware and software innovations unlock the value of mineral properties and highlights the opportunities that other explorers and technologies are destined to miss.
TYPHOON Finding a needle in a haystack
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Esparanza Spence Lomas Telsoro Antucoya Chuquicamata Collahuasi Cerro Colorado
Caliche Plains
El Abra
Depending on the region, between 20% - 60% of the main porphyry belt in northern Chile lies concealed under caliche plains or similarly resistive ignimbrite cover.
20km
? ? ? ? ?
? ? ? ? ?
In Northern Chile and Southern Peru, deposits that are beneath resistive cover cannot be discovered with traditional geophysical methods. The world-class Chilean copper deposits were largely discovered from surface exposure. These deposits occur
- n the margins
- f vast unexplored
caliche-covered plains.
SEEING WHERE OTHERS CANNOT
INJECTED SIGNAL MEASURED SIGNAL Lomas
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PINAYA COPPER-GOLD PROJECT
PINAYA
Peru
PROJECT:
Location Departments of Arequipa & Puno, Peru.
PINAYA
What are we looking for? Copper-gold porphyry/skarn comparable to other projects in the porphyry belt such as Las Bambas, Tintaya, Constancia, and Antapaccay. 100% Held
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WHY PINAYA? – OVERVIEW
- Located within Andahuaylas-Yauri
porphyry/skarn belt. Belt hosts numerous world class resources.
- Age dating of mineralizing
porphyries by Kaizen suggest they are highly likely to derive from the same magma source as the main deposits in the district.
- Underlain by same stratigraphy
which hosts Tintaya, Las Bambas and Antapaccay.
- Initial discovery risk largely
- removed. Property hosts a known
- resource. Resource has expansion
- pportunities.
- Work by Kaizen has identified a
new, previously untested target, Pedro Dos Mil.
- Kaizen has received it’s
Authorization to Commence Activity and the 2019 drill program has been finalized.
- All land access agreements in place.
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WHY PINAYA? – STRATIGRAPHY
*Source: S&P Global Market Intelligence
PINAYA
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PINAYA COPPER-GOLD PROJECT
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Exploration completed to date
- Existing drill core re-logged and
verified.
- Social licence to operate received.
- Environmental Instrument for
planned drill program approved.
- Detailed mapping of the property
completed in June 2017. 2019 exploration plan
- Drilling program of approximately
2,000 metres.
- Drill plan aimed at expanding the
resource area and drill testing high value targets within the project area.
Current Resource
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PINAYA COPPER-GOLD PROJECT
Building on the foundation of historic work
Drilling: 162 diamond drill holes (>46,500 metres), primarily in the resource area Soil sampling and trenching: 6,000 samples taken over property Geophysics: Magnetics, IP survey over resource area, property-wide Z-axis Tipper Electromagnetic (ZTEM) survey
Mineral zone domains and grade shells
Source: NI 43-101 Technical Report
- n Pinaya Copper-Gold
- Project. Mineral zone domains were
created by modeling log transformed three-metre grade composites in Leapfrog3d and further constrained by selected lithologies. The grade shell levels selected were 0.1% for Cu and 0.2 g/t for Au.
Project Camp Town of Pinaya
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PINAYA COPPER-GOLD PROJECT
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Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability Mineral Resources have an effective date of April 26, 2016; Ronald G. Simpson, P.Geo. is the Qualified Person responsible for the Mineral Resource estimates. Mineral Resources are reported within a conceptual open pit shell based on metal prices of $2.84/lb Cu and $1236/oz Au and average metallurgical recoveries of 80%. The pit shell also considers a mining cost of $2.00/t for mineralized and waste material and $1.75/t for overburden; processing cost of $8.50/t; G&A cost of $1.50/t; and an ultimate pit slope angle of 45°. Copper‐equivalent grade estimate based on $2.84/lb Cu and $1236/oz Au. Mineral Resources are reported at cut‐off grades of 0.25 g/t Au for the GOSZ (Gold Oxide Skarn Zone) and 0.3% Cu Equivalent for the WPZ (Western Porphyry Zone) and NWPZ (Northwestern Porphyry Zone) zones. Tonnages are rounded to the nearest thousand tonnes; grades are rounded to three decimal places. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.
Resources within porphyry zones and gold oxide skarn zone
Updated NI 43-101 Technical Report, April 26, 2016
PINAYA COPPER-GOLD PROJECT
PDH-17 @ 93.8m – 1.58% Cu, 1.6 g/t Au. Crowded diorite porphyry. PDH-16 @ 162.5m – 3.55% Cu, 2.17 g/t
- Au. Intermediate
crowded diorite porphyry.
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PINAYA 2019 PLANNED DRILL PROGRAM
- Resource Expansion:
- Cerro Antana – targeting
high chargeability feature beneath advanced argillic alteration.
- Viscachani – target a
chargeability high on the SE extension of the Pinaya resource zone.
- New Targets:
- Pedro Dos Mil – test
compelling chargeability, Au,Cu soil and mapped potassic altered quartz diorite porphyry and skarn.
- Drilling will start with Pedro
Dos Mil.
- Planned 2000 meters of core
drilling in Phase 1.
Pedro Dos Mil Cerro Antana Viscachani
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PINAYA – PEDRO DOS MIL
- Pedro Dos Mil constitutes a newly
identified outcropping mineralized porphyry target
- A 500m (N-S) by 150m (E-W)
- utcropping suite of granodiorite to
andesite porphyries were identified in 2017.
- Early mineral porphyry phase shows
intense early-stage quartz veining with Cu-Ox and pitch limonite after chalcopyrite.
- Bodies of silicified hydrothermal
breccias carrying disseminated chalcopyrite were observed in close relationship with the mineralized porphyries.
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PEDRO DOS MIL
Chargeability NE-SW section looking NW (3050)
Pin-01 targets a chargeability high, likely to be related to high sulfide content of the downward extension of outcropping mineralized granodiorite/quartz-diorite early mineral porphyry and associated skarn in carbonatic sandstones of the Puno Group (host). High resistivity at depth likely to be associated with downward extension of outcropping intrusives
Pin-01 proposed drillhole Pin-01 proposed drillhole Resistivity NE-SW section looking NW (3050)
N E SW N E SW
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PEDRO DOS MIL
Puno carbonate-bearing sediments developed local garnet-pyroxene-epidote skarn associated with the intrusion of granodiorite to qtz- diorite porphyry dikes and sills Outcropping granodiorite to quartz-diorite porphyry stock, dikes, sills and associated breccias showing different degree of potassic alteration and Ccp-Pyr mineralization High chargeability + Mag High Proposed drillhole Hypothetical mineralized intrusive complex 500m Pin-01 proposed drillhole
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CERRO ANTAÑA – RESOURCE EXPANSION
Chargeability NE-SW section looking NW (3320) Resistivity NE-SW section looking NW (3320)
Pin-02 proposed drillhole
Cerro Antaña Cerro Antaña Cerro Antaña Aeromag NE-SW section looking NW (3320).
High resistivity anomaly associated with outcropping advanced-argillic-altered sediments of the Puno Group. Downward continuation of the resistivity high likely to be related to intrusives. Chargeability high associated with pyr-rich advanced-argillic-altered sediments
- f the Puno Group. Downward continuation of the chargeability likely to be
related to sulfide-bearing intrusives/host. Pin-02 proposed drillhole Mag high associated with post-mineral andesites (stratigraphy is overturned by faulting/folding)
Conceptual target: mineralized (potassic-altered) intrusive center sourcing the fluids causative of the lithocap. Stratigraphy is overturned.
Hypothetical porphyry with K-alteration Sericitic Lithocap (advanced Argillic) Distal Precious metals veins Outcropping Advanced Argillic (Cu-Au
- geochem. anomalies)
N E SW N E SW N E SW N E SW
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VISCACHANI - RESOURCE EXPANSION
Chargeability ESE-WNW section looking N (0070) Resistivity ESE-WNW section looking N (0070)
Pin-03 proposed drillhole
Aeromag ESE-WNW section looking N (0070)
High resistivity anomaly. This zone is covered by soil and post-mineral volcanics to the west Chargeability high in a partly covered area located in the southeastern projection of the resource area.
Pin-03 proposed drillhole Post-Mineral Volcanics.
Hypothetical porphyry with K-alteration Sericitic Lithocap (advanced Argillic)
Pin-03 proposed drillhole
Conceptual target: IP and mag anomalies associated with a mineralized (potassic-altered) intrusive center.
Chargeability High Resistivity High Mag High Eas t We st Eas t We st Eas t We st Eas t We st
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Community remains on our side.
Katty Vargas (center), Kaizen Discovery Peru's General Manager, with representatives of the Pinaya community at the land access agreement signing ceremony.
Community support
- Revised Land access agreements
signed with individual private landholders.
- Two separate agreements with the
community outlining social development and employment have been successfully renegotiated and executed.
The Kaizen Discovery Peru team at the Pinaya Copper-Gold Project in Peru.
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2019 BUDGET
- Direct Drilling
- Includes consumables
- Includes water trucking
- Operations
- Includes camp, supplies,
consumables
- Vehicles/fuel
- People
- Includes all Peru-based
personnel as well as portion of Vancouver staff
- Peru costs based on 12 months
- Title / Concession
- Annual rent/license payments
assuming entire package maintained
- Community
- Includes community costs /
benefits, as well as landowner access payments
- Environmental
- Includes site rehabilitation
Total of C$3.1 million
People, $562,000, 18% G and A, $680,000, 22% Community / Enviro, $100,000, 3% Title/Concession, $390,353, 12% Operations, $660,000, 21% Direct Drilling, $750,000, 24%
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PINAYA COPPER-GOLD − SUMMARY
- Right country
- Peru is the third largest producer of copper
globally.
- Community of Pinaya strongly supports our
activity.
- Right Address
- Within the prolific Andahuailas-Yauri porphyry
skarn belt, host to world class copper and copper-gold systems.
- Right stage
- Project contains a known Measured and
Indicated Resource.
- Resource has expansion potential.
- New targets have been identified.
- Drill Ready
- All necessary permits are in hand.
- All access agreements with locals are in hand.
- Community is behind us.
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Stock Information*
Ticker Symbol TSX-V: KZD Share Price C$0.06 Shares Issued and Outstanding: 276,766,636 Market Capitalization C$15million
Major Shareholder
HPX TechCo Inc.
Selected Recent News Releases
July 8, 2019 July 9, 2018 March 1, 2018 January 18, 2018 July 25, 2017 February 23, 2017 January 12, 2017 January 04, 2017 Kaizen Discovery announces finalization of 2019 drill program and secures lead
- rder for non-brokered private placement.
Kaizen Discovery receives Authorization to Commence Activities for its planned exploration program at the Pinaya copper-gold project Kaizen Discovery provides update on permitting process for its planned exploration program at the Pinaya copper-gold project Kaizen Discovery provides update on permitting process for its planned exploration program at the Pinaya Copper-Gold Project Kaizen Discovery provides update on exploration program at Pinaya Copper-Gold Project Kaizen Discovery prepares to commence exploration program at the Pinaya Copper-Gold Project in Peru Kaizen Discovery successfully closes over-subscribed rights offering yielding C$7.3 million in gross proceeds Kaizen Discovery appoints industry veteran Tom Peregoodoff as President and CEO
CORPORATE SNAPSHOT
*Information current as of July 9, 2019.
Investors: Phone: +1 604 669-6446 Email: info@kaizendiscovery.com Office Kaizen Discovery Inc. World Trade Centre 654-999 Canada Place Vancouver, BC V6C 3E1 Canada