November 2017
EXPLORING YUKON’S SOUTH KLONDIKE GOLD DISTRICT
- INCL. THE ‘WELS PROJECT’
EXPLORING YUKONS SOUTH KLONDIKE GOLD DISTRICT KTO:TSX-V INCL. THE - - PowerPoint PPT Presentation
EXPLORING YUKONS SOUTH KLONDIKE GOLD DISTRICT KTO:TSX-V INCL. THE WELS PROJECT A SIGNIFICANT NEW GRASSROOTS GOLD DISCOVERY November 2017 FORWARD LOOKING STATEMENT This presentation may contain forward -looking statements.
November 2017
Page 2 This presentation may contain “forward-looking statements.” These forward-looking statements are made as of the date of the presentation and K2Gold Corporation does not intend, and does not assume any obligation, to update these forward-looking
estimated future exploration, success of exploration activities, expenditures and requirements for additional capital. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; the ability to enter into joint ventures or to acquire or dispose of property interests; future prices of mineral resources; accidents, labour disputes and
For further reference: "On June 26, 2014, the Supreme Court of Canada (the “SCC”) released its decision in Tsilhqot’in Nation v. British Columbia (the “William Decision”), pursuant to which the SCC confirmed the Tsilhqot’in’s claim to Aboriginal title over a large area of land in central British Columbia, granting the Tsilhqot’in the right to decide how the subject land will be used, the right to possess the land, the rights to the economic benefits of the land, and the right to pro-actively use and manage the land. The SCC held that to justify an intrusion on title, the government must show it has discharged its duty to consult and accommodate, that its actions were backed by a compelling and substantive objective, and the government action is consistent with the Crown’s fiduciary
government to consult with the claimant Aboriginal group, and, if appropriate, accommodate its interest. The Company does not currently hold any properties in the area subject to the William Decision, but has entered into an option to joint venture agreement with Gorilla Minerals Corp., involving certain mineral claims in an area of the Yukon Territory that may be subject to a claim for Aboriginal rights and title by the White River First Nation. The Company will continue to manage its
Yukon regarding the application of the William Decision. Therefore, risks and uncertainties associated with developing these claims remain consistent with those referenced herein."
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Founder and Chairman of Kaminak Gold. Kaminak discovered and developed the Coffee Gold Project, Yukon, acquired by Goldcorp in August 2016 for approximately $CDN 520 million. Founder and/or director of Kivalliq, Northern Empire, Stornoway Diamonds, Grayd
JOHN ROBINS (Chairman)
Formally Global Head of New Business and Research at BHP Billiton Exploration, Singapore, Institutional Mining Analyst Yorkton Securities, CEO Brazil Resources, CEO Southern Rio Resources, CEO Fortress (now Lundin Gold), Geologist – RTZ
ROBERT SCOTT (CFO) STEPHEN SWATTON (President / CEO)
Mining Engineer / Mining Investment Banking: Fluor, First Marathon, NBF, PI, Axemen, Director of Ethos Gold
CRAIG ROBERTS (Director)
Entrepreneur and CEO Ethos Gold, Former President & CDO
approximately $140 million)
GARY FREEMAN (Director)
Brassneck Capital Corp. 12 years as an advisor to private and public companies in the technology and mining sector
Advisor, well regarded and knowledgeable in First Nation related matters. Alison is also advisor to Government northern community affairs. Allison was the First Nations Advisor on the Kaminak Gold project (sold to Goldcorp for $527M)
ALLISON RIPPIN (Head of CSR)
An Exploration Geologist with 36 years experience in the
geological community
AL DOHERTY (Senior Exploration Geologist)
CPA, CA, CFA; Over 20 years experience in accounting, corporate finance, and merchant and commercial banking and has served on the management teams and boards of a number of Canadian publicly traded companies
JO PRICE (VP Exploration)
20 years as an exploration geologist with the majority of her experience in managing resource projects in Nunavut and Alaska. Advanced IT /database knowledge
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Insiders Close Associcates Float
Oct 2016: 8M shares @ $0.25 incl. Wts: 4M $0.35 for 18 months (Accel. Prov. $0.50) June 28 2017: 2.3M shares @ $0.35 + ½ Wt @$0.55 0.9M sh @$0.40 (FT)
OWNERSHIP PRICE / VOLUME –Nov 2017 CAPITAL STRUCTURE as of November 1 , 2017 FINANCINGS PROJECT LOCATIONS
Shares I&O 17.2 million Fully Diluted 27.2 million Market Cap ~C$7million Cash ~C$1.1M 52 week range $0.20 – 0.58
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$263.57 $65.85 $96.25 $119.14 $74.13 $44.17 $16.65 5.00
$- $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 Victoria Gold (VIT) Golden Predator (GPY) Western Copper (WRN) White Gold (WGO) ATAC (ATC) Goldstrike (GSR) Triumph Gold (TIG) K2 Gold (KTO)
Agnico Eagle Goldcorp Newmont Barrick
Project Name VIT: Dublin Gulch GPY: 3 Aces/Brewery Creek WRN: Casino Mine WGO: Western Yukon expl. ATC: Rackla/Orion GSR: Plateau TIG: Freegold Mountain KTO: Wels, Flume
November 1, 2017
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people known to the Principals and Management.
– 22,000 Hectares of prospective gold exploration claims in the South Klondike, Yukon – Wels is the company's flagship project and is arguably one of the most significant new grassroots gold discoveries in the Yukon over the past 5 years – K2 Completed 1,232m+ drilling in 2017 (total drilling to date ~1,600m) while exploring and soil sampling both Wels and other newly acquired properties, Flume, Storck and Ladue
during Kaminak’s exploration period (2005-2016). K2 maintains strong corporate values for the inclusiveness and recognition of First Nations peoples
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ATAC/Barrick Orion Newmont/Goldstrike Plateau Capstone Minto Goldcorp/Triumph Gold Freegold Mountain Copper North Carmacks Copper
K2 Properties Investments by Majors Other Deposits
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each hole ➢ Best Grade (DDH-01) 97.5m @ 0.76g/t Au, Including 19.5m @ 3.11g/t Au, 9.0m @ 5.71g/t Au (visible gold seen) ➢ Gold mineralization still seen at the bottom of hole 1 (~80m true depth)
➢ Highest Intersection: 40m @ 8.8g/t Au including 40.5m @ 9.15g/t Au
➢ Highest grades: 149.5g/t Au (discovery sample 2012) and 5 further samples at the same location (2013) averaged 5.2g/t Au
method to define mineralized zones and samples. Analysis was done for Au and multi- element ICP. Gold at Wels has an affinity for Ag, As, Bi and Sb
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1,232m Drilling (June – July 2017)
mineralization and extended the known strike length to 150m. The mineralization remains open in all directions.
(Southwest Spur and Chai). Multiple soil anomalies, particularly North Ridge (1050 by 700m), Southwest Spur (700 by 400m), and the most recent discovery Chai (1600 by 300m), require further trenching and prospecting.
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11 SHORT HOLES DRILLED FROM 6 PLATFORMS
TABLE 4. 2017 DRILL PROGRAM RESULTS
Hole # Zone Azimuth Dip From (m) To (m) Width (m) Au g/t DDH17-04Ex Main Zone 360
80.50 82.00 1.50 0.32 DDH-17-06 Main Zone 360
76.50 105.00 28.50 2.37 inc 76.50 93.00 16.50 3.31 and 88.50 105.00 16.50 1.55 inc 102.00 105.00 3.00 4.11* DDH-17-07 South Zone 180
31.50 33.00 1.50 5.51 DDH-17-08 Main Zone 360
9.00 21.50 12.50 5.08 inc 9.00 15.00 6.00 10.38 inc 12.00 15.00 3.00 19.30 DDH-17-09 South Zone 180
61.50 66.00 4.50 1.86 DDH-17-10 Main Zone 360
13.50 157.50 144.00 0.28 inc 78.00 82.50 4.50 3.07 inc 106.50 115.50 9.00 1.25 DDH-17-11 Main Zone 360
24.00 75.00 51.00 0.68 inc 60.00 72.00 12.00 1.95 inc 60.00 67.50 7.50 2.52 DDH-17-12 Main Zone 360
1.50 6.00 4.50 0.32 DDH-17-13 South Zone 180
60.00 64.50 4.50 1.76 DDH-17-14 Main Zone 360
16.50 18.00 1.50 2.58 and 54.00 57.00 3.00 0.49 and 102.00 115.50 13.50 0.42** DDH-17-15 Main Zone 360
78.00 99.00 21.00 1.48 inc 81.00 93.00 12.00 2.17 and 111.00 135.00 24.00 0.24 * Denotes intervals where visible gold was identified. ** Denotes intervals where visible gold was identified but not included in the sample for assay.
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Pre 2017 exploration was completed over 4 short campaigns (2011, 2012, 2014, 2015 – total man work days 225) and was only concentrated in a relatively small area (2x4km). In 2017 80% of the work was undertaken in only the Saddle and Southwest Spur except with infill and extension soils outside of the previous grids Expenditures to date total $1.8M (2011-2017) The intent of the 2017 work program was to better understand the extent of the mineralization by further mapping, geochemistry sampling throughout the property and targeted drilling in the Saddle zone
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2012 (~ $3,000,000 in expenditures)
associated with pyrite, arsenopyrite, galena and quartz
K2 will focus efforts to determine the nature of the mineralization and its relation to the structure with a view to drilling new targets in 2018-2019
March 2017
Coffee gold project and 40 km northwest from Kinross’s Golden Saddle
Dodge who completed property wide soil sampling, rock sampling and trenching
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Follow up a significant unexplored soil anomaly recognized by Phelps Dodge (1999-2009) but never followed up.
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K T O : T S X - V w w w . k 2 g o l d . c o m Stephen Swatton, President & CEO Head office: 1020 – 800 West Pender Street Vancouver, B.C. V6C 2V6 Tel: (604) 604 331 5090 Email: info@k2gold.com
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2014 Trenching Weighted Average Intervals (g/t Au over m)
TRENCH FROM TO INT Au # (m) (m) (m) (g/t) Lithology T-14-01 0.00 19.00 19.00 2.63 Bio granite Includes 0.00 11.00 11.00 4.53 Bio granite Includes 0.00 4.50 4.50 11.00 Bio granite T-14-01 31.00 49.00 18.00 5.30 Bio granite Includes 43.00 49.00 6.00 15.40 Bio granite T-14-02 0.00 45.00 45.00 8.80 Bio granite Includes 3.00 43.50 40.50 9.15 Bio granite Includes 22.50 43.50 21.00 13.81 Bio granite T-14-03 0.00 25.50 25.50 0.56 Bio granite
Includes 19.50 25.50 6.00 2.18 Bio granite Includes 21.00 24.00 3.00 4.30 Bio granite
T-14-03 31.50 54.00 22.50 0.03 Bio granite T-14-04 0.00 25.50 25.50 1.27 Bio granite Includes 0.00 10.50 10.50 3.04 Bio granite
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2 km
Au (ppb) As (ppm)
2 km North Target South Target North Target South Target
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30 month period
Preliminary Economic Assessment Study (PEA)
less than 1% the JV will be cancelled)
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DDH 15-01 DDH 15-03 DDH 15-02
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DRILL HOLE From To (m) Au (g/t) Notes DDH-15-01 97.5 97.5 0.76 DDH 15-01 31.5 51.00 19.50 3.11 INCLUDES 31.50 40.50 9.00 5.71 VG zone INCLUDES 45.00 51.00 6.00 2.38 DDH15-01 96.00 97.50 1.5 0.73 EOH DDH 15-02 49.00 52.00 3 1.0 DDH 15-02 83.50 88.00 4.5 2.77 INCLUDES 83.50 86.50 3 2.0 DDH15-03 65.65 65.80 0.15 0.7 EOH DDH 15-04 49.50 70.50 21.00 0.741 DDH 15-04 49.50 55.50 6 1.61 DDH 15-04 63.00 70.50 7.5 0.67 DDH 15-05 78.00 81.00 3 1.29
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Major/ Junior Barrick/ ATAC Goldcorp/ Kaminak Goldcorp/ Triumph Agnico Eagle/ White Gold Newmont/ Goldstrike Golden Predator Western Copper & Gold K2 Gold Property / Project Location Rackla/Orion East of Keno (0-185km long trend) Coffee 130 km south of Dawson Freegold Mountain Dawson Range /Big Creek fault zone All remaining S.Ryan claims White Gold district Plateau South
Hess River, Southern Yukon 3 Acres/Brewery Creek ~180km east
River/~60km south east of Dawson City Casino Dawson Range (300km NW of Whitehorse) Wels 80 km east of Beaver Creek/180 km South of Dawson city Deal Price (C$M) $63.3 $520 $6.2 $14.52 (to $18) $53 $17.5 n/a n/a Purchase Details $8.3m PP, 2- staged $55M earn in to acquire 70% Read more… 100% purchase Read more… To acquire 19.9% Read more… Obtained 19.93%
@ $1.20 Additional $3.48M ‘additional placement’ Read more…. (12.7m shares @ 0.47)PH1: $6M PP, $8M cash payments for 51% acquisition, $17.4M //PH2: $21.4M exp, PEA to earn addt’l 24%. to =$53M Read more… bought deal financing w/Clarus 7.1M shares @ $1.60, 3.1M shares @ $1.85 Read more… n/a Company website n/a Deposit Type Carlin type w/long lived hydrotherma l Hydrothermal Porphyry-style mineralization Various Early stage exploration Porphyry (Au, Cu, Mo) n/a