Exploring Battery Metals in in Namibia and Chile March 2019 - - PowerPoint PPT Presentation

Exploring Battery Metals in in Namibia and Chile

March 2019 Corporate Presentation TSX.V: MON

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Disclaimer

This presentation contains certain statements that may be deemed “forward-looking statements”. All statements in this presentation, other than statements of historical fact, that address events or developments that Montero expects to occur, are forward-looking statements. "Forward-looking statements" are based on information currently available to Montero Mining and Exploration Ltd. (“Montero”) and Montero provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that Montero’s future plans, objectives or goals, including words to the effect that Montero or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of Montero’s mineral properties, and Montero’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Montero’s activities; and other matters discussed in this presentation and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Montero’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Montero’s forward-looking statements. Montero does not undertake to update any forward-looking statement that may be made from time to time by Montero or on its behalf, except in accordance with applicable securities laws. Please consult Montero’s public filings at www.sedar.com for more detailed information concerning these matters. The information in this presentation is intended for use only by persons resident in jurisdictions where such use is lawful. Nothing in this presentation constitutes, and under no circumstances is to be construed as, an offer or solicitation to purchase securities of, or advertisement for, securities of Montero. The securities of Montero have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws. The information in this presentation is provided “as is” and without warranty of any kind. Although it is believed to be accurate at the time it is presented, Montero disclaims all liability for any failure to update it. This presentation could include inaccuracies, typographical errors, or out-of-date information, and changes to it may be made at any time without prior notice. You are therefore advised to use the information contained in this presentation at your own risk. This presentation uses the terms "Measured", "Indicated" and "Inferred" Resources. United States investors are advised 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 cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States

investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. The technical information contained in this presentation has been reviewed by Mr. Mike Evans, M.Sc. Pr.Sci.Nat., who is a qualified person for the purpose of National Instrument 43-101 and a consulting geologist to Montero.

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About Montero

▪ TSX Venture-listed (TSX.V:MON) Battery-focused company

exploring for battery metals in Tier 1 Mining Jurisdictions – Namibia and Chile

▪ Target - Lithium, Tin & other battery metals Exploitation Resources

Namibia - Uis Tailings Project: NI43-101 Compliant Inferred Resources of 14Mt @0.37% Li2O and 17Mt @ 0.05% SnO2

• Soris Pegmatite Project: Target Resource; 10Mt @1.0%

Li2O with tantalum and tin

• EPL6162 Project: Greenfields lithium exploration

Chile - Avispa Project: New Lithium-Iodine-Nitrate discovery

▪ Experienced Board & Management technical & financial ▪ Non-Core Assets: Rare earth project in Tanzania and phosphate

project in South Africa

▪ Shares issued : 21,880,818 “We are aiming to build a portfolio of battery metals projects in Namibia and Chile.”

• Dr. Tony Harwood

President, CEO & Director

3 TSX.V:MON Photo – Avispa Lithium Project, Chile Photo - Uis Lithium Project, Namibia

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• DR. TONY HARWOOD

President & CEO, Director ▪ Economic geologist ▪ 30 years of exploration and mining experience ▪ Previous experience includes: President and CEO of Africo Resources Ltd., Executive Chairman Universal Coal PLC; VP Global Generative Exploration, Placer Dome

ANDREW THOMSON

Non-executive Director

▪ 15 years of experience in mineral exploration in Central America ▪ Previous experience includes former President of: Link Mineral Ventures Ltd.; Azul Resources (Bermuda) Ltd; Soltoro

• Ltd. (TSX.V: SOL)

▪ Currently CEO Palamina

GREG HALL

Non-executive Director

▪ Seasoned geologist ▪ Over 35 years of international experience ▪ Chief Geologist at Placer Dome with discoveries at Granny Smith mine; Rio Tinto's Yandi iron ore mine Keringal;

Wallaby Sunrise gold mine in Australia

JAMIE LEVY

Non-executive Director

▪ 25 years of experience in the mining industry ▪ Previous experience includes: President and CEO of Pine Point Mining; Vice President of Pinetree Capital

Board of Directors

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NICO SCHOLTZ

Project Geologist & QP ▪ Geologist based in Namibia ▪ >10 years’ experience ▪ QP for lithium in Namibia ▪ Extensive experience: ▪ Rare metal pegmatite exploration ▪ Lithium-Cesium- Tantalum (LCT) pegmatite intrusions ▪ Exploration in Namibia

GEOFF SKELTON

Metallurgist & Chemical Engineer ▪ 30 years of experience in: ▪ Base, Precious & Rare Metals design and

• perations in Africa

▪ Extensive experience: ▪ 21 years as General Manager & Project Manager ▪ Responsible for the development of separations processes ▪ Mineral separation technology, including hydrometallurgy

MICHAEL EVANS

Chief Geologist & QP ▪ Geologist with 38 years experience ▪ Extensive experience ▪ Worked with Phelps Dodge in over 15 African countries ▪ Previous experience: ▪ Mineral target generation ▪ Establishment of exploration operations ▪ Management of feasibility studies ▪ Mine building team

Management, Discovery and Development Team

MARCIAL VERGARA

Project Geologist & QP ▪ Geologist based in Chile ▪ >30 years’ experience ▪ QP for lithium in Chile ▪ Extensive experience: ▪ Precious and base exploration ▪ Lithium exploration ▪ Exploration in Chile

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Battery Boom

Global battery manufacturing capacity is set to double by 2021

Source: Bloomberg New Energy Finance

50 100 150 200 250 300 2016 2017 2018 2019 2020 2021 2022 2023 2024

Gigawatt Hours

Electric Vehicles Personal Electronics Consumer and grid-scale storage

v 24% 40% 58%

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Lithium is Essential to Battery Production

Li Ta Sn

And More

Co Ni

There are many elements that play pertinent roles in the manufacturing of batteries: lithium, cobalt, nickel, tantalum, tin and more. Montero aims to look for opportunities to acquire projects with minerals across the battery spectrum to create a true battery-play exploration company

• Enables the formation of silicon

channels allowing lithium ions to travel faster within the battery

• Limits the expansion of the silicon

and preserves structural integrity

• Increasing demand - Using tin in

place of graphite increases the energy storage capacity of a battery cell by nearly three times

• Core ingredient to 99% of electric

vehicles

• The battery industry currently uses 42%
• f global cobalt production, a critical

metal for Lithium-ion cells

• Nickel is the most important metal by

mass in Li-ion battery cathodes

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Montero is Targeting Lithium Bearing Deposits

Brine production 44% Hard rock production 56%

Argentina, Chile & Bolivia Australia, China & Africa

Mineral Name Chemical Formula Lithium Content (Li2O %)

Spodumene LiAlSi₂O₆ 8.0 Lepidolite K2 (Li,Al)5-6{Si6-7,Al2-1O20} (OH,F)4 3.0 – 7.7 Petalite LiAlSi4010 3.4 – 4.9 Eucryptite LiAlSiO4 4.5 – 12.0 Amblygonite LiAl(PO4)(F,OH) 7.3 – 10.0 Hectorite Na0.3(Mg,Li)3Si4O10(OH)2 1.2 Jadarite LiNaSiB3O7(OH) 15.7

Spodumene is the most sought after lithium mineral

Montero Targets Hard rock spodumene rich pegmatites

Global Lithium Production 2018

Lithium-bearing Pegmatites Montero Targets new Lithium discovery in Chile

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Namibia: a Tier-One African Jurisdiction

▪

Strong mining history, favourable for battery metals exploration

▪

Significant mineral endowment with major mines discovered and in operation:

▪

Otjikoto Gold Mine: investment of $244M by B2Gold1

▪

Swakup Uranium’s Husab Mine: investment of $1B from China’s CGNPC company2

▪

Free and open democracy

▪

Stable government – encourages foreign investment

▪

Favourable tax treatment on capital expenditure

▪

Good national infrastructure

▪

Corporate Tax: 37.5%

▪

Government Royalty: 3% for Base Metals (Tantalum & Tin) & 2% for Industrial Minerals (Lithium)

South Atlantic Ocean

Capital Major City Major Road Minor Road Mine Airport Montero’s Projects

1 B2Gold.com 2 Xinhuanet.com

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Uis Lithium-Tin Tailings Project

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Uis Tailings Project Overview

Soris and Uis Projects in close proximity

▪ Located in central Namibia near the town of Uis, 220 km north of Walvis Bay, Namibia’s largest commercial deep-water port and connected by dirt and asphalt road to the port ▪ The Uis Tin mine operated for over 50 years before ceasing production in the 1980’s and did not exploit lithium ▪ Option agreement to acquire 95% by making milestone payments totaling $1.425M * ▪ NI 43-101 Inferred Minerals Resource Estimate of 14.4Mt @ 0.37% Li2O and 17.1Mt @0.05% SnO2 ▪ Internal Scoping Study shows positive economics ▪ Gravity Worx offering “Build Own Operate and Transfer” option for low cost development ▪ Discussions with lithium – tin off-take partners * Binding agreement to acquire 95% interest by committing to milestone payments totaling

US$1.42 million to Namib Base Minerals cc and Namibia Silica cc and by paying C$125,000 cash

• r shares to Lithium Africa 1 as announced March 6th 2018

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Location of drill collars in Zone A to E tailings material

▪ Air Core Drilling at Uis completed by Tawana (2016) with 63 drill holes providing 1,531m of core samples ▪ NI 43-101 Inferred Minerals Resource of 14.4Mt @ 0.37% Li2O and 17.1Mt @0.05% SnO2. ▪ Metallurgical testwork completed on samples from coarse and fine tailings material. ▪ Tin recovery targeting 60% using screening and gravity concentration methods ▪ Lithium recovery targeting 50% using gravity concentration methods, milling and froth flotation ▪ Internal Scoping Study shows encouraging economics for a phased recovery operation ▪ Phase 1 - Tin production targeting 520t Tin/year ▪ Phase 2 – Lithium production targeting 57,000t/year Lithium concentrate at 5.3% Li2O

Aerial Photo - Uis Tailings Project, showing diamond drill hole locations

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Uis Tailings Project: Zone A Coarse & Zones B-E +A4 Fine Tailing Material

Photo - Uis Tailings Project, showing coarse and fine tailings locations Uis topographic image of tailings Uis coarse and fine tailings resource blocks

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Uis NI43-101 Mineral Resource Estimate: Cut-off 0.35 % Li2O and 47ppm SnO2

Zone Density (t/m3) Million Tonnes Average grade Metal Content Li2O (%) SnO2 (%) Li2O (t) SnO2 (t) Zone A Coarse 1.6 14.4 0.37 0.05 53 280 7 200 TOTAL 14.4 0.37 0.05 53 280 7 200 Zone Density (t/m3) Million Tonnes Average grade Metal Content Li2O (%) SnO2 (%) Li2O (t) * SnO2 (t) Zone A4 1.6 0.44

• 0.09
• 396

Zone B 1.6 0.56

• 0.06
• 336

Zone C 1.6 0.98

• 0.06
• 588

Zone D 1.6 0.32

• 0.06
• 192

Zone E 1.6 0.41

• 0.06
• 246

TOTAL 2.71

• 0.06
• 1 758
• The effective date for the Mineral Resource estimates is 14 October 2018.
• Mineral Resource estimate reflects 100% of material/asset; Montero has a binding Heads of Agreement to purchase 95% of the Uis Tailings material
• The Mineral Resource for Li2O in the coarse tailings material (Zone A) is based on a grade cut-off of 0.35% Li2O at 5% product grade.
• The Mineral Resource for SnO2 in the fine tailings deposits (Zones B to E and Zone A4) is based on a grade cut-off of 47ppm SnO2 * No lithium resources have been reflected in the fine

tailings material due to insufficient or no test work on his material. (Zone B to E and Zone A4)

• As the process flow for the material will extract the SnO2 via shaking tables before the Li2O circuit for the Zone A coarse material, no cut-off has been applied to the SnO2
• A Mineral Resource for Li2O is not reported for the fines material (Zones B to E and Zone A4) as the average Li2O grade of the fines material does not hurdle the cut-off of 0.82% Li2O
• The product price applied to the coarse and fine tailings material was the Li2O spodumene price of US$925/t
• A SnO2 price of USD23,500/t was applied, informed by Energy & Metals Consensus Forecast information
• A processing recovery of 70% for Li2O of the coarse material was applied and a 30% recovery for the fines material of Zones B to E
• A processing recovery of 60% for SnO2 for both the coarse and fine material was applied
• The QP for the Mineral Resources considers the existing estimation database and information available from Montero and the QP Geology and QP Metallurgy to be

adequate to support reporting a low confidence Mineral Resource, that being an Inferred Mineral Resource

Table 1. Inferred Mineral Resource Coarse material (Zone A) Table 2. Inferred Mineral Resource Fines material (Zones B to E and Zone A Fines)

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Uis Lithium – Tin Tailings Project Path to Production in 2019

CATALYSTS

Q2 2019

Additional drilling to increase resource confidence

Q2 2019

complete feasibility study

Q3 2019

EIA and all regulatory permits completed

Q3 2019

Initiate plant construction

Q1 2020

Commence Phase 1 - tin target production of 520 t/year SnO2 as a cassiterite concentrate

Q1 2019

Scoping Study results and initiate feasibility study

Q1 2019

NI43-101 resource 17Mt @ 0.05% SnO2 & 14Mt @ 0.37% Li2O PRODUCTION

Q4 2020

Commence Phase 2 – to target lithium concentrate production

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Other Namibian Lithium Project Soris & EPL6162

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Soris Project Overview

2.4km

▪ High-grade lithium project with surface grab and channel samples rich in spodumene showing average grades of 1.37% Li2O ▪ Acquisition of 80% of the license by committing to feasibility study in 3 years* ▪ Pegmatites outcrop between 100m up to 470m over a distance of 2.4km and measures in places more than 30m wide ▪ Previous tantalum-tin mine never exploited for lithium

Northern Working No Drilling Central Working No Drilling Main Working Drilling South Working Drilling

Legend Pegmatite Surface Extent 1Km

N NAMIBIA

South Atlantic Ocean

Large Spodumene Crystals

* Binding agreement with Frovio Investments cc to acquire an 80% interest in the property by committing to spend

C$1 million and completing a feasibility study within 3 years (subject to due diligence)

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Soris Project – Lithium Sampling Results and Drill Ready Targets

▪

Grab Samples

▪ Lithium content from 0.07 to 5.32 % Li2O and

averages 1.37% Li2O

▪

Channel Samples

▪ Average grade 0.76% Li2O, values up to 3.66 % Li2O,

14m at 1.93% Li2O

▪

Mineralogy and Metallurgy – appears to be mainly spodumene occurring as large coarse crystals with tantalum and cassiterite

▪

RC Drill Samples

▪ 1,097 of 1,536 samples taken from 31 RC drill holes

that were only previously tested for tantalum and tin, have been analyzed for Lithium. Intercepts include: ▪ 44 m of 0.96 % Li2O; 25 m of 1.26% Li2O; 22 m

• f 1.05% Li2O; 21 m of 1.12% Li2O

▪

Drill Ready and targeting 10Mt @ 1% Li2O with tantalum and tin credits in a 3,000m program

3-D Lithium Distribution from dill hole assays 3-D Tin Distribution 3-D Tantalum Distribution

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EPL 6162 – Located North of Previous Lithium Mine

▪ EPL 6162 80-20% deal* by committing to feasibility in 3 years with local owner. ▪ License area 10,540 hectares ▪ Favourable geological setting (near Karibib Marbles) ▪ Known but under investigated lithium mineralisation in the area ▪ Good potential for LCT-type pegmatite ▪ North of Desert Lion Energy lithium mine ▪ Gold potential - north of Navachab gold mine & west of Osino Resources

Gold & copper mineralization on EPL 6162 Desert Lion Energy Osino Resources Osino Ressources Navachab Gold Mine Daheim pegmatite (Petalite)

* Binding LOI to acquire 80% interest in the license by committing to spend C$1 million within 3 years

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Lithium Discovery in Chile

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Chile: a Tier-One Global Mining Jurisdiction

▪

Strong mining history favourable for battery metals exploration

▪

Significant mineral endowment the Salar de Atacama is the world's largest source of lithium containing 27% of global lithium reserve base:

▪

Major lithium producers are SQM (NYSE) and Albemarle (NYSE)

▪

Chilean lithium exports rose to $949m1 in 2018

▪

Stable government – encourages foreign investment

▪

Favourable tax treatment on capital expenditure

▪

Good national infrastructure

▪

Mining culture

▪

Good Corporate Tax rate and Government Royalty

South Atlantic Ocean

Lithium Discovery in northern Chile Salar de Atacama Lithium Discovery Area

1 Mining.com

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Avispa Project Exploration Licence – A New Lithium Discovery in Chile

▪

Montero has discovered elevated values of Lithium in the Atacama of northern Chile

▪

Secured 138km2 of Exploration License *

▪

Independent Lithium channel sampling, values up to 760ppm Li2O

▪

Location - 130km north west of SQM largest lithium brine mine in the “Salar de Atacama”

▪

Location - 30km to the east of major Caliche mines (SQM) producing Iodine and Nitrates of potassium and sodium

▪

Elevated Lithium, Iodine and Nitrate values

• ccur at surface in sedimentary evaporite

deposits up to 30m in thickness

▪

Located close to national highways and ports * Montero holds the Exploration Licenses 100% with a binding agreement with the discovery team, who will be granted a 1.5% NSR and $100,000 shares in

Montero on completion of confirmatory due diligence sampling within 15 months period, subject to regulatory approval. Once Montero has confidence that material can be mined economically, the discovery team shall be granted a further $600,000 worth of Montero shares, subject to regulatory approval.

Exploration License plan and Lithium Target Geology Location Avispa Lithium Project

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Avispa Project – Target Geology & Anomalous Lithium, Iodine & Nitrate

▪

100% holder of 138 km2 of Exploration Licenses

• ver target geology

▪

Good infrastructure - Located south of a major tarred high way, power and water

▪

Copper- Molybdenum potential – ground previously held by Spence Mining (BHP)

▪

Previously reported Lithium values of up 517 ppm Li2O, up to 852 ppm I2, and 10.5% Nitrate (NO3)

▪

Independent sampling values up to 760ppm Li2O

▪

Anomalous values of lithium, iodine and nitrates

• ccur in sedimentary evaporite salt deposits up to

30m in thickness

▪

Three salt horizons recognized (L1, L2 & L3) with anomalous lithium values. L3 best developed

▪

The Lithium is considered to be derived from the Andean volcanics in the Chile-Bolivia-Argentina Lithium Triangle

L3 Horizon Lithium Channel Sample Results Target Geology surface exposure

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Upcoming Corporate Catalysts to Tin and Lithium Production

Q1 2019 Avispa - award of 138km2 Exploration License and take reconnaissance samples Q1 2019 Uis Tailings - NI43-101 Inferred Mineral Resource 17Mt @ 0.05% SnO2 , 14Mt @0.37% Li2O. Complete Internal Scoping Study Q1 2019 Uis Tailings - Initiate feasibility study, drilling & metallurgical test work

• n bulk sample

PRODUCTION Q3 2019 Uis Tailings - Complete feasibility study & initiate construction Q4 2019 Soris – Commence feasibility study for lithium-tin-tantalum production Q3 2019 Soris - Complete NI43-101 Mineral Resource Estimate and Scoping Study Avispa – define drill targets Q1 2020 Uis Tailings - Commence Phase 1 tin production. Target production

• f 520 t/year SnO2

Q2 2019 Soris - Initiate drilling program and test work on bulk sample

Dr.

• Dr. Ton

Tony Harwood President and CEO Montero Mining & Exploration Ltd. monteromining.com

TSX.V: MON

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