CORPORATE PRESENTATION
January 2019
TSXV: PRZ OTCQB: PRZFF FSE: MQSP
GOLD IN BRITISH COLUMBIA CORPORATE PRESENTATION TSXV: PRZ OTCQB: - - PowerPoint PPT Presentation
COPPER IN MEXICO AND GOLD IN BRITISH COLUMBIA CORPORATE PRESENTATION TSXV: PRZ OTCQB: PRZFF FSE: MQSP January 2019 Cautionary Statement FORWARD LOOKING STATEMENTS This presentation contains forward-looking information and forward-looking
January 2019
TSXV: PRZ OTCQB: PRZFF FSE: MQSP
FORWARD LOOKING STATEMENTS This presentation contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws. These forward-looking statements may include statements regarding the successful completion of financings by the Corporation, the perceived merit of properties, exploration results and budgets, mineral resource estimates, the potential to increase estimated minerals resource work programs, capital expenditures,
(collectively, “Manto Negro”), the Kena and Daylight Gold-Copper properties (collectively, “Kena”) and the Toughnut property in the Nelson area of British Columbia and market prices for precious metals, or other statements that are not statements of fact. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Statements concerning mineral resource estimates may also be deemed to constitute “forward-looking statements” to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Forward-looking statements and forward-looking information are not guarantees of future performance and are based upon a number of estimates and assumptions of management at the date the statements are made including without limitation, assumptions about: future prices of copper, gold and other metal prices, the success of proposed exploration and development activities, successful exploration and development of the Manto Negro, Kena and Toughnut properties, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, government regulationof the Corporation’s activities, environmental risks and expenses, labour stability, stability in market conditions, availability of sufficient equipment and labour, accuracy of any mineral resources and anticipated costs and expenditures and the Corporation’s ability to achieve the Corporation’s goals. While the Corporation consider these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and
securities, further potential of the Corporation’s properties, the need for additional capital and the Corporation’s ability to raise additional funds, land title issues and risks, local community issues, the estimation of mineral resources, conclusions of economic evaluations, the realization of mineral resource estimates, the timing and amount of estimated future production, quality and marketability of mineral product, limited lives of mines, reclamation obligations, the costs of production, capital expenditures, mining or processing issues, currency exchange rates, government regulation of mining operations, environmental risks, risk relating to infrastructure, permitting and licenses, litigation, mining tax regimes, insurance and uninsured risks, competition, adequacy of financial resources, no historical production or revenues therefrom, dependence on outside parties, dependence on key personnel, conflicts of interest and
conditions may differ materially from those reflected in the forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Corporation, or industry results, may vary materially from those described in this presentation. In addition, a number of other factors could cause the actual results, performance or achievements of the Corporation to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Corporation at the time of preparation, may prove to be incorrect and readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Corporation does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Any financial outlook or future-oriented financial information as defined by applicable securities legislation has been approved by management of Prize Mining as of the date hereof. Such financial outlook or future-oriented financial information is provided for the purpose of providing information about management's current expectations and goals relating to the future of Prize Mining. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Scientific And Technical Disclosure Richard Dufresne, P. Geol., Prize Mining Project Manager, is a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, and has reviewed and approved the scientific and technical information in this presentation. All technical and scientific information with respect to the Manto Negro Property contained in this presentation has been taken from the technical report (the “Manto Negro Technical Report”) entitled “Technical Report Manto Negro Property Coahuila State, Mexico” dated March 26, 2018 with an effective date of March 14, 2018 prepared by Norwest Consultants Ltd. of Calgary, Alberta on behalf of Prize Mining or is based on supporting documentation provided by Norwest and has been reviewed and verified by Derek Loveday, P.Geol., or William A. Turner, P. Geol., each of Norwest and Qualified Persons. A copy of the Manto Negro Technical Report is available on the Prize Mining website at www.prizemining.com or on SEDAR profile of Prize at www.sedar.com. All technical and scientific information with respect to the Kena Project contained in this presentation has been taken from the technical report (the “Kena Technical Report”) entitled “Technical Report for the Kena Project, Nelson, BC” dated June 2, 2017 with an effective date of January 7, 2017 prepared for Prize Mining Vivian Park, P.Geo., VPG Geosciences, and Gary H. Giroux, P.Eng., Giroux Consultants Limited (Ltd.) or is based on supporting documentation provided by either of Vivian Park or Gary H. Giroux and has been reviewed and verified by either such person, each Qualified Persons. A copy of the Kena Technical Report is available on the Prize Mining website at www.prizemining.com or on SEDAR profile of Prize at www.sedar.com. This presentation discloses mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
2
3
world class Kupferschiefer deposits in Europe
grade showings over a 45 kilometer trend
1,318,000 oz inferred in SE British Columbia, Canada
creating shareholder value by building valuable mining companies around the world
Columbia
5
Michael McPhie, B.Sc., M.Sc., QEP - President and CEO, Director
Mining industry executive with over 20 years international experience developing projects from early exploration to full operations. Former Managing Director of JDS Copper, President and CEO of Curis Resources, Director and Executive Vice President Exeter Resources and currently Chair of the Board of IDM Mining Ltd. and Ridley Terminals Corporation.
Raul Ramirez, BA – Director
One of two principals of Scion Mines SA de CV, which was purchased as part of the Manto Negro acquisition. President and CEO of Molycomex, a private Mexican corporation involved in mining exploration in Mexico. Founding shareholder of Mexican Silver Mines and VP Operations prior to merger with Rio Alto.
Jose Avina, BA – Director
José has more than 20 years of administrative and finance experience within a range of diverse sectors. He supervised administrative and financial processes for insurance, construction, mortgage and mining companies. His experience includes senior administrative roles with Rew Materials and Mexican Moly Mines and Scion Mines in Mexico. He held the position of Regional Administration Manager with Rew Materials and CFO for Mexican Moly Mines and then Scion Mines. Jose holds a Bachelor of Business Administration from Instituto Tecnológico de Monterrey.
Yuyiang Liang, CPA, BBA – Chief Financial Officer
Yuying Liang is the principal of Canmore Financial Services, where she provides financial reporting services for both public and private companies. She has extensive experience in public company environments and full cycle accounting, as well as providing accounting services for business acquisitions and RTO. Ms. Liang holds the professional designation of Chartered Professional Accountant (CPA).
Richard Dufresne, B.Sc., P.Geo – Geological Project Manager
successfully developing and leading mineral exploration programs. He held senior and managerial positions with Falconbridge Ltd and Anglo American Exploration Canada. Later he joined junior mining companies as project manager and vice president of
Ivory Coast. He is a registered member of Engineers and Geoscientists BC
Proven Track Record of Shareholder Value Creation Extensive Technical, Financial and Capital Markets Expertise Committed to Industry Leading CSR and Environmental Performance
6
Capitalization Share Price (C$) (C$) $0.04 Basic Shares Outstanding M 124 Options Outstanding M 4.8 Broker Warrants Outstanding M 40.7 RSU Outstanding M 2.4 Basic Market Capitalization (C$) $5
11% 24% 65% Insider Institutions/HNW Retail
7
10 15 20 25 2012 2014 2016 2022 2028 2030 2018 2020 Base Supply 2024 2026 Demand
Source: Wood Mackenzie Q3 2017. Rio Tinto. Includes Wood Mackenzie estimates of production from Oyu Tolgoi underground.
Deficit
Copper supply/demand
(million tonnes)
Surplus
9
approximately 17,965 hectares (180 km2) in December 2017 - first time this area has been consolidated in one district-scale package
& Germany and Zambian/DRC Copper Belt that are some of the richest globally
surface showings and underground (artisanal) exposures over 45+ km trend
with richer Cu-Ag mineralization outcropping at various locations
Rich copper mineralization from Ojitos showing - chalcocite (black) malachite (green)
10
skilled mining labour
with two local ejidos
11
12
(redbeds) of the San Marcos formation and the overlying limestone
copper-silver-lead deposit of the Kupferschiefer-type (red-bed type).
structure dominated by lower Cretaceous clastic and carbonate rocks with a few scattered exposures of Permian and Tertiary intrusive rocks.
by mines and prospects along the contact of the San Marcos – Cupido formations for 40 to 50 kilometers.
mineralization has locally been found over 15 + meter intervals
13
analogous to Kupferschiefer deposits of Poland & Germany Kupferschiefer Deposits
the largest deposits of this type in the world
typically 10’s of square kilometres
➔ 31.9 million tonnes Cu & 2.9 billion ounces Ag
apart but on same mineralized horizon, underscoring the district-scale potential
completion
style of mineralization
used for preliminary metallurgical testing
14
15
16
1.7 meters thickness over 45 X 50 meter area
1,122m in 11 holes.
Cu-Ag oxide mineralization.
Hole number Width (m) Cu% Ag g/t DDHMN-18-01 4.40 1.02 28 DDHMN-18-02 3.55 1.69 28
17
Multiple historic mines and prospects over 5km
and 2.80% Cu, 280g/t Ag in old dumps
18 1500 m 1000 m
3 km 4 km 5 km
La Abandonada Mine / El Rincón Pilar Grande Mine
1 km 2 km
La Cuchilla Mine San Marcos West Mine La Encalmada Mine El Pilón Mine
6 km
19
meters on 4 levels and 80 meters down dip
weighted average of 2.35% Cu and 184g/t Ag over 2.35m thickness
50m area with 1,273m in 11 holes
Hole number Width (m) Cu% Ag g/t DDHDI-18-01 4.10 0.88 49 DDHDI-18-02 3.40 1.58 122 DDHDI-18-03 4.05 0.82 55 DDHDI-18-05 1.0 1.43 126 DDHDI-18-05 2.15 0.78 37
Granizo deposit area of Manto Negro Project Room and pilar mining at KGHM Mine in Poland
21
22
hole diamond drill program at El Granizo and Don Indio Areas
stratigraphic mapping and geological model development
key showings
23
as high as 37g/t gold
24
southeastern BC
Resources Trail Smelter nearby
25
THREE IMPORTANT GOLD AND COPPER- GOLD ZONES
deposit with high grade zones
porphyry copper-gold mineralization
gold
four historic mines
PORPHYRY GOLD DEPOSIT
Au cut-off)
Au cut-off)
* Mineral resources that are not mineral reserves do not have demonstrated economic viability ** NI 43-101 Mineral Resource Estimate by Giroux and Park (2017) available on Prize Mining website and on SEDAR
28
Mailing Address
Prize Mining Corporation 2301 – 838 West Hastings Street Vancouver, BC, V6C 1C8 Tel: 604-336-1327