G OLD E XPLORATION I N N ICARAGUA October 2012 C AUTIONARY N OTES - - PowerPoint PPT Presentation

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G OLD E XPLORATION I N N ICARAGUA October 2012 C AUTIONARY N OTES - - PowerPoint PPT Presentation

G OLD E XPLORATION I N N ICARAGUA October 2012 C AUTIONARY N OTES This presentation includes certain "Forward-Looking Statements as that term is used in applicable securities law. All statements included herein, other than statements of


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SLIDE 1

GOLD EXPLORATION IN NICARAGUA

October 2012

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SLIDE 2

CAUTIONARY NOTES

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This presentation includes certain "Forward-Looking Statements” as that term is used in applicable securities law. All statements included herein, other than statements of historical fact, including, without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of Cassius Ventures Ltd. (“Cassius”, or the “Company”), are forward-looking statements that involve various risks and uncertainties. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "scheduled", "believes", or variations of such words and phrases or statements that certain actions, events or results “potentially”, "may", "could", "would", "might" or "will" be taken, occur or be achieved. There can be no assurance that such statements will prove to be accurate, and actual results could differ materially from those expressed or implied by such

  • statements. Forward-looking statements are based on certain assumptions that management believes are reasonable at the

time they are made. In making the forward-looking statements in this presentation, the Company has applied several material assumptions, including, but not limited to, the assumption that: (1) Cassius may not find any minerals in commercially feasible quantities in Nicaragua, (2) the Company’s ability to raise the necessary financing for ongoing

  • perations and to complete any acquisitions or pursue any planned exploration programs, (3) there being no significant

disruptions affecting operations, whether due to labour/supply disruptions, damage to equipment or otherwise; (4) permitting, development, expansion and power supply proceeding on a basis consistent with the Company's current expectations; (5) certain price assumptions for gold; (6) prices for availability of natural gas, fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels; (7) the accuracy of current mineral resource work and studies on the Company's property; and (8) labour and material costs increasing on a basis consistent with the Company's current

  • expectations. Important factors that could cause actual results to differ materially from the Company's expectations include

such factors, among others, risks related to the ability of the Company to obtain necessary financing and adequate insurance; the economy generally; fluctuations in the currency markets; fluctuations in the spot and forward price of gold or certain other commodities (e.g., diesel fuel and electricity); changes in interest rates; disruption to the credit markets and delays in

  • btaining financing; the possibility of cost overruns or unanticipated expenses; employee relations. Accordingly, readers are

advised not to place undue reliance on Forward-Looking Statements. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Statements, whether as a result of new information, future events or otherwise. Eddy Canova, P.Geo., OGQ (403), the Director of Exploration and a Director for the Company and a Qualified Person as defined by NI 43-101, has reviewed and is responsible for the technical information contained in this presentation.

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SLIDE 3

CORPORATE OVERVIEW

  • In June 2011, completed the acquisition of Fortress de Nicaragua SA (FDN), a private

Nicaraguan company with 16 concessions over 130,000 ha

  • Concurrently raised $2.5 million through a non-brokered private placement
  • In January 2012, completed the acquisition of Nueva Segovia Mining SA, a private

Nicaraguan Company and owner of the 23,000 ha “El Zúngano” concession

  • 2011/2012, completed an exploration in the Nueva Segovia and León project areas as well

as a 1,270m reconnaissance drilling program at 2 targets at Nueva Segovia that led to the discovery of a number of significant anomalies

  • SHARE CAPITAL
  • Issued shares: 41,148,480*
  • Warrants: Approximately 8.6. million at $0.10 – C$0.45
  • Expire January 2013 – June 2013
  • Options: Approximately 1.7 million
  • Fully diluted shares: approx 51.4 million

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*October 2012

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SLIDE 4

CASSIUS PROPERTIES

  • Extensive land base in some of the best

mineral areas of Nicaragua

  • 17 concessions, over 160,000 ha
  • Nueva Segovia Concession area covers

60,000 ha over 9 properties

  • León Concession area covers 62,000 ha
  • ver 4 properties
  • Chontales Concession area covers 4

properties over 38,000 ha

  • Work to date focused on Nueva Segovia

and León concession areas

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SLIDE 5

PROXIMITY TO ESTABLISHED MINES & MINING DISTRICTS

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SLIDE 6

CONCESSIONS AND GEOLOGY

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District Nueva Segovia León Chontales Concession 9 4 4 Area (ha) 60,814 62,000 38,000 Geological Model Epithermal Quartz veins Epithermal System + Porphyry Epithermal system Adjacent Properties Golden Reign, Corazon Gold B2 Gold (Limon Mine) Condor (La India) B2 Gold (La Libertad Mine)

  • Large concessions on favourable geological settings
  • León and Chontales in Volcanic – Tertiary, Nueva Segovia in Schists - Paleozoic
  • In District areas, adjacent to prospective properties and operating mines
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SLIDE 7

HISTORY

  • Work done from colonial times to the 1950’s in the Nueva Segovia area established a

network of tunnels, but no records of production

  • Fortress staked properties over 16 concessions during period 2005 - 2007
  • Fortress work included stream sediment sampling, rock sampling and soil sampling
  • ver all three concessions areas as well as detailed trenching and prospecting also

undertaken in the Nueva Segovia Concession area

  • Fortress spent $2.5 million historically – all data available to Cassius
  • Fortress was committed to securing properties in the best mining areas, with good

infrastructure, taking into account ease of access, power, water and labour supply

  • In January 2012, FDN purchased Nueva Segovia Mining S.A. the owner of the

23,800 hectare “El Zúngano” concession, which adjoins the east side of the Nueva Segovia concessions

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SLIDE 8
  • 12 month exploration program focused on Nueva Segovia and León commenced July

2011

  • Stream sediment, soil, rock chip, and trench channel sampling
  • Soil geochemistry surveys and trenching on prospective areas
  • 1,270m Reconnaissance core drilling program completed in May, 2012
  • Summary Findings:
  • Encouraging anomalous values discovered at Nueva Segovia targets

(Manto de la Corona, La Lampara, El Escandolo/Cobano)

  • Occurrence of a 6 km² gold/molybdenum porphyry (Cerro Rojo) as well as

high grade vein targets (Las Mercedes) at León

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2011/12 EXPLORATION PROGRAM

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SLIDE 9

NUEVA SEGOVIA CONCESSIONS:

GEOLOGY

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  • 9 concessions located in

northern Nicaragua

  • Within belt of Paleozoic

metamorphic rocks within structural suture zones

  • Gold mineralization occurs

in quartz carbonate veins

  • ccurring in graphitic

schists and is associated with pyrite, arsenopyrite and galena

  • Epithermal vein type

system resulting from hydrothermal activity

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SLIDE 10

NUEVA SEGOVIA CONCESSIONS:

EXPLORATION PROGRAM OVERVIEW

  • Key Targets:
  • Manto de la Corona
  • La Lampara
  • El Escandolo
  • Cobano
  • General Zúngano area
  • Stream sediment, soil, rock chip and trench channel sampling conducted to

identify drill targets

  • Soil geochemistry surveys on prospective areas
  • Drill program of 1,270m at two targets based on favourable sampling results:

800m at Manto de la Corona (La Jalapeña concession) and 470m at La Lampara (Los Angeles Concession)

  • Additional anomalous areas discovered across the Nueva Segovia area with

respect to arsenic, molybdenum and copper

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SLIDE 11

NUEVA SEGOVIA CONCESSIONS:

SAMPLING

Manto de la Corona

  • Strong gold anomalies noted based on 341 soil samples taken with results ranging

between 233 and 847 ppb Au

  • Subsequent trenching further substantiated anomalous areas from which three drill

targets were identified La Lampara

  • 20 hectares of anomalous gold values identified
  • 2011/2012 exploration program led to discovery of 16 historical tunnels which were

subsequently mapped and sampled

  • 2 tunnels uncovered two quartz veins with thicknesses of 20cm and 90cm and returned

11 grades between 1.15 g/t Au and 11.05 g/t Au

  • Additional tunnels returned significant gold assays of 1.57 g/t Au over 1.0m, 5.25 g/t Au
  • ver 0.75m, 12.97 g/t Au over 1.00 m, 1.30 g/t au over 0.50m and 1.58 g/t Au over

0.81m

  • Seven drill targets identified and drilled based on above sampling results

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SLIDE 12

NUEVA SEGOVIA CONCESSIONS:

SAMPLING CONT…

El Escandolo

  • Discovery of old workings identified gold mineralization with multiple quartz veins
  • ccurring in oxidized schists trending over a strike length of 565m
  • Chip samples taken returned an assay of 6.83 g/t Au

Cobano

  • Wide quartz vein of 3.0 to 6.0m in width and strike length of 50m, trending 300° and

dipping 64° SW

  • Grab samples in all 5 areas of Cobano returned assays from 0.047 g/t Au to 3.02 g/t

Au General Zúngano Area

  • Quartz vein samples taken south of Cobano returned assays of 3.80 g/t Au, 5.96 g/t

Au and 19.59 g/t Au

  • Structure appears promising as the vein maintains width over a 50m length

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SLIDE 13

NUEVA SEGOVIA CONCESSIONS:

SOIL SAMPLE RESULTS

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SLIDE 14

NUEVA SEGOVIA CONCESSIONS:

ROCK SAMPLE RESULTS

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SLIDE 15

NUEVA SEGOVIA CONCESSIONS:

DRILLING*

Manto de La Corona

  • 3 drill holes over 800m
  • Anomalous values in drill hole JD-01 at 38 m grading 0.12 g/t Au over 1.52 m
  • 9 Au values in drill hole JD-02 assaying greater than 0.20 g/t Au with a maximum

value at 44.08 m assaying 0.81 g/t Au over 0.92 m

  • Three intersections at drill hole JD-03 of 0.91 g/t Au over 9.92 m at 33.5 m depth,

0.33 g/t Au over 3 m at 174.15 m depth and 0.21 g/t Au over 4.3 m at 210.0 m depth

* The drilling is of HQ caliber with sample lengths being collected up to a maximum length of 1.5 meters. Core is split on site and half core is sent to the Inspectorate sample preparation lab in Managua, Nicaragua. Sample pulps are sent by Inspectorate to the Inspectorate Reno facility for ICP analysis of 30 elements plus fire assay for gold using an atomic adsorption finish. Samples above 10 g/t are re-assayed with a gravimetric finish. Every 20 samples have a duplicate, a blank or one of three reference samples added for quality control purposes. Inspectorate Laboratories is an arms-length party with respect to Cassius Ventures Ltd.

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SLIDE 16

NUEVA SEGOVIA CONCESSIONS:

DRILLING*

La Lampara

  • 7 drill holes over 470m
  • Three intersections at drill hole LD-03 grading 1.04 g/t Au over 1.5m
  • Three anomalous intersections at drill hole LD-04 grading 0.19 g/t Au over 3.84m,

0.38 g/t Au over 3.04m and 0.46 g/t Au over 1.5m

  • Three anomalous intersections at drill hole LD-05, most notably an intersection

grading 53.06 g/t Au over 1.5m Further mapping and sampling required to get proper location and understanding of the vein system in the areas

* The drilling is of HQ caliber with sample lengths being collected up to a maximum length of 1.5 meters. Core is split on site and half core is sent to the Inspectorate sample preparation lab in Managua, Nicaragua. Sample pulps are sent by Inspectorate to the Inspectorate Reno facility for ICP analysis of 30 elements plus fire assay for gold using an atomic adsorption finish. Samples above 10 g/t are re-assayed with a gravimetric finish. Every 20 samples have a duplicate, a blank or one of three reference samples added for quality control purposes. Inspectorate Laboratories is an arms-length party with respect to Cassius Ventures Ltd.

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SLIDE 17

DRILLING AT MANTO DE LA CORONA

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SLIDE 18

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LEÓN CONCESSIONS:

GEOLOGY

  • Four Concessions covering

62,000 Ha in western Nicaragua

  • Gold mineralization in epithermal

systems

  • Tertiary Volcanics system -

mapping the alterations and identifying the mineral associations within the epithermal system

  • Located between EL Limon,
  • wned by B2 Gold and La India

(4 million ounces produced historically)

  • Three properties of León thought

to cover a similar structural trend as La India mine

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SLIDE 19

LEÓN – EXPLORATION PROGRAM OVERVIEW

  • Key Targets:
  • Cerro Rojo – gold/moly porphyry
  • Las Mercedes – vein target
  • Stream sediment, soil, rock chip, and trench channel sampling conducted since

July 2011

  • Soil geochemistry surveys conducted on prospective areas
  • A total of 8 sediment gold anomalies have been identified in a trend which runs

NW – SE across the concessions

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SLIDE 20

LEÓN CONCESSIONS

GEOCHEMISTRY

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  • León – Stream

Sediment, Soils and grab samples – July

  • 689 Stream

Sediments

  • 1,433 Soils Samples
  • 203 Rock Samples
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SLIDE 21

LEÓN CONCESSIONS:

MAPPING & SAMPLING

Cerro Rojo – Porphyry Target

  • Mapping indicates a coverage of approximately 6km² of a gold/molybdenum porphyry

with oxidation argillitzation, quartz veinlets locally, brecciation with 1 – 2% pyrite

  • Outcrops on hills and along rivers, 2 – 4 % disseminated pyrite
  • Existence of such mineralization in the area shown by a gold/copper porphyry

discovery by Calibre Mining Corp.

  • Notable surface grab samples returned values of up to 14.01 g/t Au, 7.79 g/t Au, 6.26

g/t Au, 2.02 g/t Au, 1.99 g/t Au, 1.48 g/t Au, 1.13 g/t Au, and 1.05 g/t Au Las Mercedes – Vein Target

  • 247 soil samples taken, 25 anomalous samples grading between 0.05 g/t Au to 0.20

g/t Au

  • Anomalous soil samples have corresponding copper and molybdenum values
  • Further prospecting and mapping uncovered additional mineralization in quartz veins

with rock chip samples assaying 32.15 g/t Au, 55.25 g/t Au and 28.23 g/t Au

  • Further mapping and rock sampling required

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SLIDE 22

CERRO ROJO:

SOILS-GEOLOGY

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SLIDE 23

CERRO ROJO:

SOILS-GEOLOGY

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SLIDE 24

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CERRO ROJO:

ROCK SAMPLING AND ANOMALOUS AU ZONES

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SLIDE 25

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LEÓN PROPERTY:

LAS MERCEDES

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SLIDE 26

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LAS MERCEDES:

ROCK CHIP SAMPLING RESULTS

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SIMILAR EXPLORATION STAGE COMPARABLES

Company Symbol Market Cap Area Calibre Mining CXB.V $41 million 86,700 ha Corazon Gold Corp. CGW.V $4 million 45,400 ha Condor Resources PLC CNR (AIM) $96 million 26,100 ha Golden Reign GRR $34 million 13,800 ha Cassius Ventures CZ.V $3 million 160,000 ha

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*October 2012

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SLIDE 28

NICARAGUA

  • Country’s total area is 129,500 square kilometres, population of 6 million
  • Democratically governed and stable, pro investment
  • Gold mining industry established since colonial times
  • Well established mining law, revised in 2006
  • B2Gold has two mines in operation (La Libertbad and El Limon), with visible

government support

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SLIDE 29

SUMMARY

  • Extensive land base in some of the best mineral areas of Nicaragua: a mining

friendly country

  • Nueva Segovia – Manto de la Corona - Anomalous values discovered through

soil sampling trenching and drilling as well as the discovery of further quartz vein mineralization

  • Nueva Segovia – La Lampara - Approximately 20 hectares of anomalous gold

values as the discovery of further quartz vein mineralization

  • Nueva Segovia – El Escandolo/Cobano – Sampling of old workings returned

several anomalous values over 1 g/t Au

  • León – Cerro Rojo – Occurrence of a 6km² gold/molybdenum porphyry
  • León – Las Mercedes – 4 anomalous areas outlined by soil geochemical

surveys with high grade values in quartz veins

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SLIDE 30

NEXT STEPS

  • Currently exploring alternatives to advance the property, including joint venture and /
  • r partnership structures with the intention of carrying out the following exploration

programs

  • León – Cerro Rojo – Airborne MAG, Radiometric and VLF geophysics surveys,

ground IP survey followed by a 5,000m drill program

  • León – Las Mercedes – VLF geophysics survey to localize the possible

structures in the area, additional trenching as well as a 2,000m drill program

  • Nueva Segovia – Manto de la Corona – 1,500m trenching program with

successful trench areas subject to a 1,200m drill program

  • Nueva Segovia – La Lampara – A 2 month mapping and prospecting program

and, a 1,500m trenching program to further define the mineralization, with successful trench areas subject to a 1,200m drill program

  • El Escandolo and Cobano – A 2 month mapping and prospecting program and a

1,500m trenching program to further define the mineralization, with successful trench areas subject to a 2,000m drill program

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SLIDE 31

APPENDIX A

MANAGEMENT & BOARD OF DIRECTORS

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SLIDE 32

MANAGEMENT & BOARD

Steven Dean, Chairman and Director

  • Extensive experience internationally in mining, including as President of Teck Cominco Limited

(now Teck Resources Ltd). Teck is a major diversified resource company and is the largest producer of metallurgical coal in North America and the No. 2 exporter of metallurgical coal in the world to the globe's steel manufacturers

  • A founding director of Normandy Poseidon Group, which became Normandy Mining and was the

largest Australian based gold producer until its sale to Newmont Mining, and founder of PacMin Mining which became a subsidiary of Teck Corporation in 1999

  • Chairman and CEO of Oceanic Iron Ore Corp. (TSX-V:FEO) as well as Chairman and director of

Spur Ventures Inc. (TSX-V:SVU), Infinito Gold Ltd. (TSX-V:IG), and of Dia Bras Exploration Ltd. (TSX-V:DIB). Co-founder and former Chairman of Amerigo Resources Ltd. (TSX: ARG)

John Thomas, President & CEO

  • Professional engineer, holds a B.Sc. and Ph.D. from the University of Manchester, UK.
  • Extensive experience in the mineral resource industry, particularly in Latin America, and is currently

a director of Infinito Gold Ltd., Alexandria Minerals, Canada Zinc Metals Corp., Enertopia Corp. and Ressources Appalaches Inc.

  • Has previously served as Vice President, Development of Rusoro Mining, and Vice President,

Operations of Bolivar Gold Corp. Mr. Thomas also serves on a number of boards, including Infinito Gold Inc., Alexandria Minerals Corp., and Canada Zinc Metals Corp. 32

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SLIDE 33

MANAGEMENT & BOARD

Irfan Shariff, CFO & Corporate Secretary

  • Consultant to a number of junior resource companies based in Vancouver, Canada. CFO of

Oceanic Iron Ore Corp. and Spur Ventures Inc.

  • 8 years as a corporate finance and mergers and acquisitions advisor at Citigroup in London, UK

(2001-2008)

  • Qualified chartered accountant

Eddy Canova, Director of Exploration, Director

  • Over 25 years experience in the mineral exploration industry in Canada, Venezuela, Mexico, and

West Africa.

  • 4 years experience in mineral production in Venezuela
  • Focused in gold mineral exploration, base and precious metals, and iron ore
  • Major project involvement includes Gold Reserves Brisas's project, Bolivar Tomi Gold Mine

project, Oceanic Iron Ore’s Ungava Bay project and most properties of Alexandria Minerals

  • BSc. in geology from McGill University

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SLIDE 34

MANAGEMENT & BOARD

Jason Birmingham, Director

  • Former Director Business Development for International Zimtu Technologies Inc, and President of

Mindshare Communications Inc.

  • Currently a director or officer of several reporting issuers: director of Clean Seed Capital Group

Ltd., Golden Fame Resources Corp., (formerly Canfe Ventures Ltd.), Fitch Street Capital Corp., Cerro Mining Corp., and Datinvest International Ltd

Bob Atkinson, Director

  • Over 30 years experience in the investment industry
  • Former President and CEO of Loewen Ondaatje McCutcheon & Co Ltd., a Canadian investment

dealer

  • Serves as a Director of Flinders Resources Ltd., Tasman Metals Ltd., Spur Ventures Inc., and

Hansa Resources Ltd.

Lawrence Dick, Special Advisor

  • B.Sc. in geological sciences from U.B.C. in 1973 and a M.Sc. and Ph.D. in economic geology

from Queen's University in 1979

  • Spent over 20 years exploring for copper and gold throughout South America
  • Serves on a number of boards, including Delon Resources Corp., Confederation Minerals Ltd.,

Golden Fame Resources Inc., Kariana Resources Inc., Goldstrike Resources Ltd., Magna Resources Ltd., and United Silver Corp 34

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