Exploration Discovery Value Creation
Investor Presentation
March 2019
Targeting District Scale Gold-Copper Advanced Exploration Projects First World Mining Jurisdictions
TSX-V: AVG
Investor Presentation March 2019 Targeting District Scale - - PowerPoint PPT Presentation
Investor Presentation March 2019 Targeting District Scale Gold-Copper Advanced Exploration Projects Exploration First World Mining Jurisdictions Discovery Value Creation TSX-V: AVG Avidian Gold Forward Looking Statements This presentation
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This presentation (“Presentation”) contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Avidian Gold Corp. (“Avidian”). Forward-looking statements include estimates and statements that describe Avidian’s future plans, objectives or goals, including words to the effect that Avidian or its 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. Although these statements are based on information currently available to Avidian, Avidian provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and
information in this presentation includes, but is not limited to, Avidian’s objectives, goals or future plans, statements, exploration results, potential mineralization, Avidian’s portfolio, treasury, management team and enhanced capital markets profile, the proposed private placement, the timing of the Transaction, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, problems, expenses, difficulties, complications and delays frequently encountered in connection with the establishment of any business, failure or inability to complete the Transaction on the terms as proposed, failure to obtain the required approvals of regulators, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, unprofitable efforts resulting not only from the failure to discover mineral deposits but also from finding mineral deposits that, though present, are insufficient in quantity and quality to return a profit from production, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry. There is no assurance that Avidian’s mineral exploration and development activities will result in any discoveries of commercial bodies of ore. Mining exploration requires ready access to mining equipment such as drills, and crews to operate that equipment. There can be no assurance that such resources will be available to Avidian on a timely basis or at a reasonable cost. Unusual or infrequent weather phenomena, sabotage, or
projects depends upon Avidian’s ability to obtain financing through equity financing, joint ventures, debt financing, or other means. There is no assurance that Avidian will be successful in obtaining required financing as and when needed. There is no guarantee that Avidian’s title to such properties will not be challenged or impugned or that the appropriate permits and approvals will be obtainable on reasonable terms or on a timely basis; the licenses will be renewed upon their expiry; and that Avidian will be able to explore its properties as permitted or to enforce its rights with respect to its properties. Although Avidian believes that the assumptions and factors used in preparing the forward-looking information in this presentation are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this Presentation, and no assurance can be given that such events will occur in the disclosed time frames or at all. Avidian disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. Notice to Canadian Residents The Presentation is not, and under no circumstances are to be construed as, an advertisement or a public offering of the securities referred to herein. The Presentation is not an offer to sell securities of Avidian and is not a solicitation of
the contrary is an offence. No person has been authorized to give any information or to make any representation other than as provided for herein. Notice to U.S. Persons The Presentation is not, and under no circumstances are to be construed as, an advertisement or a public offering of the securities referred to herein. The Presentation is not an offer to sell any securities of Avidian and is not a solicitation of
No securities commission or similar authority in United States has reviewed or in any way passed on the merits of the securities described herein and any representation to the contrary is an offence. No person has been authorized to give any information or to make any representation other than as provided for herein. U.S. investors are advised that the terms “inferred” and “indicated” resources are recognized and required by Canadian regulations, however the U.S. SEC does not recognize the terms. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories would ever be converted to reserves.
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Alaska – Tintina Gold Belt Nevada – Humboldt Trend Advance exploration portfolio $40 Million Historical Data Base Resource Already Established
Track record – Discovery and Sale Significant Insider Investment Able to Execute
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(1) Source: Fraser Institute Annual Survey of Mining Companies 2017 Investment Attractiveness Index
District Scale Targets in friendly jurisdictions Alaska ranked 5th for worldwide mineral potential and 10th by the Fraser Institute(1) Nevada ranked 3rd by the Fraser Institute(1)
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Ticker Symbol TSXV: AVG Issued and Outstanding Shares 57.0 M Warrants Outstanding 6.8 M Options Outstanding 3.5 M (1) Fully Diluted Outstanding 67.4 M Management, Directors & Insider Ownership 40% Debenture (May, 2019) $200K 52 Week Range $0.20 - $0.70 Market Cap $15.0 M
(1) options granted with exercise price primarily at $0.60 – premium to market
Went Public in Dec 2017 TSX-V: AVG
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> 25.0
Golden Zone Amanita
Reno Las Vegas
Walker Lane Trend Battle Mt - Eureka Trend C a r l i n T r e n d Getchill Trend Humboldt Trend
Elko
Independence Trend
Past & Present Au Producers ! Carlin Trend: +100 Moz ! Battle Mt/Eureka Trend: +50 Moz ! Walker Lane Trend: 50 Moz
100 km
Jungo Dome Hill
Jungo:
25 km NE of the Hycroft mine (25 Moz Au) & 45 km SW of the Sleeper deposit (7 Moz Au)
Projects Located within the prolific +130 Moz Au Tintina Gold Belt and near world-class gold deposits
Ø In Alaska Location is Everything – Access Key
Ø The Right Time and Paleodepth
Ø To Date Identified 3 large Target Areas with High-Grade Au Mineralization
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JJ Zone: 6.14 g/t Au, 5.41 g/t, 3.83 g/t, 2.08 g/t Au Copper King to S Long Creek Trend: High-grade Au + base metals Breccia Pipe Deposit (+ 300 Koz Au) & Mayflower Extension Zone 15 km Mineralized Trend Cohio: 9.17 g/t Au, 15.0 g/t Au, 111.0 g/t Au
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Ø Golden Zone Corridor (> 12 km mineralized trend)
(Mayflower Extension)
southwest of Breccia Pipe Deposit, with up to +6 g/t Au
Ø Long Creek Corridor (> 3 km mineralized trend)
mineralized intrusive:
10 Surface Gold Samples G
d e n Z
e C
r i d
Long Creek Corridor
Silver Dikes Corridor
Mayflower Extension Zone Breccia Pipe
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West Breccia Area 14.64 g/t Au, 355 g/t Ag
Mayflower Extension
BLT Shear - Open > 1 km 21.6 m @ 1.46 g/t Au 2.1 m @ 2.4 g/t Au 10.5 m @ 1.54 g/t Au 6.1 m @ 8.31 g/t Au (Trench)
GZ18-04 GZ18-02 & 03 GZ18-01
Breccia Pipe Deposit
17.7 m @ 2.12 g/t Au 17.7 m @ 1.04 g/t Au;
107.3 m @ 4.76 g/t Au 21.6 m @ 1.66 g/t Au;
Conceptual Pit Outline
Breccia Pipe Deposit*
Indicated Resource of 267,400 oz Au
(4.2 million tonnes of 1.99 g/t Au)
Inferred Resource of 35,000 oz Au
(1.4 million tonnes of 0.83 g/t Au)
2018 Drilling
Ø Mayflower Extension (~ 350 m trend adjacent to the Breccia Pipe Deposit) § Holes GZ81-01 to GZ18 – 03 § Still open internally, southwest to hole GZ17-05 and to the northeast Ø Breccia Pipe Deposit § GZ18-04 – testing down plunge extension of Breccia Pipe & adjacent porphyry intrusive: New breccia discovery (West Breccia Pipe) 400 m west of Breccia Pipe Deposit - yet to be drill tested
* See Appendix for details
§ 2016 Resource. Open–pit mining (3.6 strip ratio) and conventional milling and processing. Majority of the Au mineralization appears free milling. Note: Base metals not analyzed. § Assay capping values : Porphyry- 20 g/t Au, Silica Breccia- 25 g/t Au, Sulphide Breccia- 35 g/t Au; Porphyry- 60 g/t Ag, Silica Breccia- 130 g/t Ag, Sulphide Breccia- 200 g/t Ag, Shear Zone- 40 g/t Ag. § Blocks within a Whittle shell generated using a $1,350/oz gold price are classified as Inferred. Blocks outside of the floating cone are not classified.
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TSX-V: AVG Long Creek S Long Creek Copper King Impedance Phase Data & Magnetics
Magnetic Low Outline
CSAMT: 2D Inversion Model Profile Interpreted as an Intrusive Related Event
Ø 2018 CSAMT targets coincident with airborne magnetic lows – indicative of destruction of magnetic minerals by intrusive event Ø CSAMT targets also coincident with 1996 airborne low resistivity
Copper King Long Creek S Long Creek Looking Southeast
Ø +3 km long system Ø Mineral occurrences appear to be part
magnetic lows Ø Multiple Coincident Data Filters Point to Shallow Intrusive Related Events
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Ø New Discovery within the Golden Zone Corridor; 5 km southwest of the Breccia Pipe Deposit Ø 6 km northeast of the Cohio prospect reported to have gold showings highlights of 111.0 g/t Au, 15.0 g/t Au & 9.7 g/t Au TSX-V: AVG
Py-rich Sediment; Values up to 6.14 g/t Au Multiple Zones of Gossanous Pyrite –Rich Sediments JJ Zone: 6.14 g/t Au, 5.41 g/t, 3.83 g/t, 2.08 g/t Au Copper King to S Long Creek Trend: High-grade Au + base metals Breccia Pipe Deposit (+ 300 Koz Au) & Mayflower Extension Zone 15 km Mineralized Trend Cohio: 9.17 g/t Au, 15.0 g/t Au, 111.0 g/t Au
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Ø Multiple sulphide-bearing gossan zones, vertical dipping ranging from 0.5 m to +3.0 m thick Ø Sulphides include disseminated to semi-massive pyrite, chalcopyrite and arsenopyrite within siltstones/sandstones, intruded by porphyritic dikes Ø Preliminary Dimensions: 300 m vertical exposure by 150 m width and 450 m – 500 m strike length Ø Early highlight assay results include: 6.14 g/t, 5.41 g/t, 3.83 g/t, 2.08 g/t Au 150 m 300 m vertical exposure from top of mountain peak (not seen here) to valley floor
Looking down into the valley floor
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Proximity to Fort Knox Mine
Ø Excellent access and infrastructure - approximately 15 km northeast of Fairbanks city limits Ø Contiguous with the Fort Knox Mine that produces approx. 380,000 oz Au/year at an avg. grade of approximately 0.45 g/t Au Ø Historical placer production on the property Ø Intrusion Related Gold System, structurally controlled, sheared sheeted vein/stock work mineralization similar to Fort Knox Ø Proterozoic schists and amphibolite intruded by Cretaceous age granitoid Ø The main mineralized zone (Tonsina Trend) is approximately 5.6 km southwest of Fort Knox in the same NE trending corridor
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Tonsina Mineralized Trend
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Selected RC Drill Holes and Grab Samples
Ø Limited and unevenly distributed RC drilling along the 4.5 km long Tonsina Mineralized Trend Ø 30 of 39 RC holes intersected >1.0 g/t Au over 1.5 m: 6 holes with VG Ø Drill tested to less than 150 m depth, all oxide mineralization Ø Intercepts include:
Ø Blaster analysis of trench vs drill chip samples indicates coarse gold lost in the RC holes Ø Several other untested targets on the property discovered from prospecting (in blue)
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TSX-V: AVG Looking NE
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Reno Las Vegas
Walker Lane Trend B a t t l e M t
u r e k a T r e n d Carlin Trend Getchill Trend H u m b
d t T r e n d
Elko
Independence Trend
Past & Present Au Producers ! Carlin Trend: +100 Moz ! Battle Mt/Eureka Trend: +50 Moz ! Walker Lane Trend: 50 Moz
100 km
Jungo Dome Hill
Project Jungo Dome Hill Ownership 100% 100% Claims / Size 235 claims (1,960 ha) 78 claims (600 ha) Target 5 km long gold-copper system with mineralization in a magmatic-hydrothermal environment between the Hycroft (25 Moz Au) and Sleeper (7 Moz Au) deposits Island arc, intrusion-related system with structurally controlled Au-Cu mineralization along NNE trending structures +6 km of known high sulphidation vein systems, all open and untested Numerous high-grade grab samples: 45.7 g/t Au, 31.8 g/t Au, 27.5 g/t Au Previous Drilling 4.3 m @ 1.7 g/t Au, 57.7 g/t Ag and 2.7% Cu 1.5 m @ 2.5 g/t Au, 71.6 g/t Ag and 0.7% Cu 12.2 m @ 1.3 g/t Au, 28.6 g/t Ag and 0.7% Cu 4.6 m @ 4.7 g/t Au 1.5 m @ 9.7 g/t Au
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TSX-V: AVG Ø 5 km long gold-copper system: mineralization in a magmatic- hydrothermal environment; controlled by NNE structures Au evident in historical trenching along strike Ø Geophysics suggests: the presence of sulphides in association with intrusions; data suggests multiple phases of mineralization Ø Historical drilling (limited) stopped short of testing their targets and may have been drilled parallel to the mineralized events Ø Many geophysical and geologic targets remain untested along the 5 km mineralized trend, with only a small fraction of this system (< 1.5 km) partially tested to date
1 km 1 km
5 km 5 k m
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Management Experience Achievements
David Anderson, B.Sc. P.Geo, Chairman & CEO, Director +35 years Geophysicist with international experience in mining sector as both a consultant and in corporate roles Founding shareholder in Quantec Geoscienes Ltd, QGX Ltd., and Antares Minerals Inc. QGX and Antares were public companies subsequently sold to major mining companies after discovering economic mineral deposits. Founded the David C Anderson Charitable Foundation in 2010 whose primary objective is to provide assistance for women and children in underprivileged situations. Former executive positions and currently an entrepreneur who continues to identify and invest in junior mining exploration companies that are focused on gold and copper
Donna R. McLean, BA CFO +25 years International experience with junior and intermediate exploration companies Specializing in the areas of financial reporting, controls and administration. She has held the positions of Chief Financial Officer and Controller for several mineral exploration companies, including Intrepid Mines Ltd., Metalla Royalty & Streaming Ltd. (formerly Excalibur Resources Ltd.), Firestone Ventures Inc. and Aurania Resources Ltd.
financial and administrative services to established and emergent businesses, operating in a variety of sectors and industries.
PhD, P.Geo VP Exploration +35 years International exploration experience and is considered an expert in IOCG, epithermal Au and VMS deposit types. Integral to the acquisition of the Golden Hills gold-rich VMS deposit, Mongolia, that is presently being developed. Co-founder and principal with GeoVector Management Inc and has acted as VP Exploration for public and private companies.
Technical Advisor Experience Achievements
Alexander Davidson, M.Sc + 35 years Experience in designing, implementing and managing gold and base metal exploration and acquisition programs throughout the world. Was Barrick Gold Corporation’s Executive Vice President, Exploration and Corporate Development responsible for international exploration programs and corporate development activities. Received the Prospector of the Year Award (2003) for his team's discovery of the Lagunas Norte Project and the Dufresne Award (2005) for exceptional achievement and distinguished contributions to mining exploration in Canada from the Canadian Institute of Mining, Metallurgy and Petroleum and the Charles F. Rand Memorial Gold Medal (2019) from the American Institute of Mining, Metallurgical, and Petroleum Engineers for achievement in mining administration, including metallurgy and petroleum.
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Experience Achievements
David Anderson B.Sc. P.Geo, Chairman & CEO, Director See Management James Polson MBA Director +20 years Mining service industry and studied Mechanical and Mechatronic Engineering CEO of a Hong Kong based Construction and Mining Services company and board member of the Hong Kong Construction Industry Council Training Association Civil Engineering Sub-Committee. Was a co- founder of AIDD Group which went on to become leading international mining service group in the North East and Central Asian region. Founding member of MISA (Mineral Industry Safety Association) in Mongolia. Awarded the Emerging Leaders award for Entrepreneurship from the IVEY School of Business in 2011. Douglas J. Kirwin, B.Sc., M.Sc., FSEG. +45 years International exploration
positions with Anglo American, Amax, Indochina Goldfields and Ivanhoe Mines Limited. Member of the joint discovery team for the Hugo Dummett deposit at Oyu Tolgoi in Mongolia, Other mineral discoveries made by his exploration team include the Jelai-Mewet and Seryung epithermal deposits in northeast Kalimantan, the Eunsan-Moisan gold mines in South Korea, the Moditaung gold deposits in Myanmar and the Merlin Re-Mo deposit in Australia. Co-recipient of the PDAC inaugural Thayer Lindsley medal awarded for the most significant international mineral discovery in 2004. Dino Titaro, M.Sc., P.Geo Director +35 years International experience in mineral exploration, mining
Co-discoverer of 2 major deposits, a gold-copper and gold-sliver deposit (currently in production) totalling 8.4 million oz of Au and 1.4 billion pounds of Cu. Former executive positions and current board
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All properties located within top tier, mine friendly, politically stable jurisdictions
All properties hosted within well known, well endowed mineral terranes
Multi-million ounce gold potential at each property, with possible nearer term production within the district scale land package of the Golden Zone Property, Alaska
Backed by Industry Experienced Leaders with a track record of success and multi-faceted technical & business expertise
Management, Directors & Insiders vested with approx. 40% of the outstanding shares
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David Anderson, Chairman & CEO, Director +1 403 688 8863 Email: danderson@avidiangold.com Avidian Gold Corp. 18 King St East, Suite 902 Toronto, Ontario Canada M5C 1C4 Tel: +1 647 259 1786 Fax: +1 647 259 1785 e-mail: info@avidiangold.com
Ø Golden Zone (100%) § 105.5 sq km § Avidian owns 29.4% of the property with a purchase agreement to acquire the balance of 70.6% for US $875,000 in cash ($275K paid to date) & US $1,125,000 of stock ($450K paid to date) over a 7 year period (to 2023), plus a work commitment
commitment already completed) § 3 % NSR of which 1.4% can be bought out for US $1,400,000 at Avidian’s option and an additional 1.6% for US $1,600,000 at vendors’ option on 59.9 sq km and 1% NSR on 12 sq km. § Holding Cost of approx. US$ 35,000 per year (lease and claims rentals costs & general overhead costs) Ø Amanita (100%) § 88 Claims (14.6 sq km) § 3% NSR that can be bought for US $1 million per % point § Lease payments totaling US $1,235,000 spread out over 15 years (starts at $15,000 in 2016, $25,000 in 2017, $30,000 in 2018 and escalates $10,000 per year to the 15th year) with a US $3 million buyout. § Holding Cost/land fees of approx. US $25,000 per year
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Ø Jungo (100%) § 235 Claims (19.6 sq km): NSR:2% NSR on 35 Claims § Holding Cost/land fees of approx. US $40,000 per year Ø Dome Hill (100%) § 78 Claims (6 sq km): 2% NSR on 20 acres, buyout of 1% for US $250,000; § Holding Cost of approx. US$17,000 per year (includes annual lease payments on 40 acres of US $2,000 per year) TSX-V: AVG
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IRGS Deposit Types Shallow level systems
domes, sills, and dikes Peripheral
Intrusion-hosted
veins
“All 3 mineralization types found on the GZ property, potential for large multi-million Au deposit(s)”
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Skarn Replacement Mineralization Au-Ag-Cu-Zn-Pb
Conglomerate Replacement Mineralization (Cu-Au-Ag)
Creek Stockwork/Porp hyry Veins (Cu-Au-Ag ± Mo)
Mineralized Breccia plus Sheeted/Stockwork Veins (Au-Ag-Cu ± Zn-Pb)
Shear Zone Veins (Au-Ag-Cu-Zn-Pb)
Distal Veins Au – Ag – As - Bi ± Zn, Pb, Cu
IRGS Intrusion: feldspar-quartz porphyry Porphyry/IRGS Intrusion: quartz eye porphyry Skarn Replacement Mineralization (Cu-Au-Ag)
Conglomerate Replacement Mineralization (Au-Ag)
Golden Zone Corridor Long Creek Corridor
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0.5 g/t Au Cut-off (as of Nov 2016)
Category Deposit Type Tonnes Au Ag
Grade (g/t) Ozs Grade (g/t) Ozs
Indicated
Porphyry 1,811,000 0.89 52,200 3.2 186,300 Silica Breccia 369,000 0.93 11,100 8.64 102,500 Sulphide 2,007,000 3.17 204,300 17.19 1,109,000 TOTAL 4,187,000 1.99 267,400 10.38 1,397,800
Inferred
Porphyry 142,000 0.75 3,400 1.84 8,400 Shear Zone 1,216,000 0.83 32,600 2.65 103,400 TOTAL 1,353,000 0.83 35,900 2.56 111,400
§ Open–pit mining (3.6 strip ratio) and conventional milling and processing. Majority of the Au mineralization appears free milling. Note: Base metals not analyzed. § Assay capping values : Porphyry- 20 g/t Au, Silica Breccia- 25 g/t Au, Sulphide Breccia- 35 g/t Au; Porphyry- 60 g/t Ag, Silica Breccia- 130 g/t Ag, Sulphide Breccia- 200 g/t Ag, Shear Zone- 40 g/t Ag. § Blocks within a Whittle shell generated using a $1,350/oz gold price are classified as Inferred. Blocks outside of the floating cone are not classified.
High Grade Feeder Not Fully Tested
GZ18-4
4 5 2 m
Proposed
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Operation Fort Knox (Kinross) Amanita Contained Gold +8 Moz Gold Undetermined Geology Gold in Cretaceous Granite Gold adjacent to or on top of interpreted buried granite at Tonsina Trend Corridor Within Corridor of Two NE Structures Along Strike in Same Corridor Mine Type Open pit mine Known gold mineralization all in open pit-able setting Host Rock Extensive Biotite Hornfels Aureole Extensive Biotite Hornfels Aureole Indicator Gold occurs with Bismuthinite, Scheelite, Arsenopyrite and Quartz-feldspar Veins Gold occurs with Bismuthinite, Scheelite, Arsenopyrite and Quartz-Feldspar Veins Metallurgy Model shows inner Au-Bi, halo of Sb-As Soils show inner Au-Bi, halo of Sb-As Stage Present grade of approx. 0.5 g/t Au; Cut-off Grade 0.16 g/t Au 30 of 39 drill holes intersected >1.0 g/t Au over 1.5 m: VG reported in several holes and seen in local float
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