Lima Prospect, Mato Grosso State, Brazil Valterra Resource - - PowerPoint PPT Presentation

Valterra Resource Corporation / Poconé Mining Company

Virgin Ground between Producing Gold Mines in the Heart of Brazil’s Poconé Gold Belt

June 2020

Lima Prospect, Mato Grosso State, Brazil

June 2020 2

Lima Property: Bulk Sampling Toward Near-term Production

Targeting a Low-cost Producing Gold Project

Free-digging open-pit operation. No blasting. Targeting a low-cost production scenario

Established Mining District

The Lima property occurs in a +100km long belt of producing laterite deposits The property is adjacent to a producing mine within the productive Poconé mining district

Bulk Sampling to Test Laterite Potential

Bulk sampling to test the Laterite potential of a major cross structure adjacent to a producing low-cost gold mine

Undeveloped Exploration Opportunity to Identify and Develop a Major Gold-Vein Project

Kinross and Fomentas are actively exploring in the belt

Lima Property│ VQA - TSX.V │ VRSCF - OTCQB

• VQA buys 100% of Poconé Mining for CAD 500k purchase price
• The Poconé Mining Team will operate the project for a monthly fee and retains

a 1.5% NSR on the project Initial Raise into VQA - Use of Proceeds (in CAD) $500,000 – Purchase payment $150,000 – Property Exploration in preparation for Bulk Sampling $100,000 – Working Capital C$750,000 TOTAL

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Terms and Use of Proceeds

Lima Property│ VQA - TSX.V │ VRSCF - OTCQB June 2020

Poconé: A highly prolific gold mining district in Brazil

Exceptional Location

The Poconé region has a rich history of gold production since the 18th century.

Simple Mining / Immediate Cash-flow

Free-digging open-pit operation. No blasting.

Underdeveloped Opportunity

A low-cost processing plant can be installed within less than two months for minimal capex.

Unexplored Hard-rock Potential

Analogous setting to Kinross’ Paracatu Mine, (8.1Mozs P+P reserves) located 800km east.

Excellent Infrastructure

Poconé has well-developed infrastructure with access to power, water, major highways, airports and highly skilled labour and experienced

• perators.

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Mine in the Poconé District Mine in the Poconé District Mine in the Poconé District

Lima Property│ VQA - TSX.V │ VRSCF - OTCQB June 2020

• Favorable geology with several

major Archean greenstone and Proterozoic sedimentary-hosted gold districts

• Significant Au production – 85

metric tonnes in 2019

• Major miners include: Kinross; Vale;

Anglogold Ashanti; Lundin Mining; Yamana; and Great Panther

• Favorable mineral title
• Favorable foreign ownership – Tax

agreements between Canada and Brazil

• Significant untapped potential (e.g.

Poconé-Cuiabá gold belt)

Mato Grosso

Gold Mining in Brazil

5 Lima Property│ VQA - TSX.V │ VRSCF - OTCQB June 2020

• The Lima project area, Poconé District

is located in central Brazil’s Cuiabá Basin (Baixada Cuiabana), in the southern part of the state of Mato Grosso

• The Project is situated just 10 minutes

from Poconé, a mining town of 32,000

• Excellent infrastructure with road

access to the project area via paved and gravel roads

• Daily scheduled flights from an airport

located in Cuiabá, the State Capital, just 104km north and connected to the principal cities of Brazil by daily scheduled airline flights

• Mining friendly environment

Lima Project

6

Cuiaba Basin (Poconé District)

Mato Grosso

Lima Property│ VQA - TSX.V │ VRSCF - OTCQB

Lima Project - Mato Grosso State, Brazil

June 2020

The Poconé Belt

• Similar geological setting to

Kinross’ Paracatu mine

• Veins are hosted by Proterozoic Cuiabá

schist, which extends for approx. 120 km from the area of Cuiabá southwest to Poconé

• The Poconé region has produced gold

since the 18th century

• Numerous producing and historic

Garimpo gold operations

• ~50 active open-pit mines in 12 clusters
• Historic production of 6-12 million
• unces of gold

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Pocone District

Lima Property│ VQA - TSX.V │ VRSCF - OTCQB June 2020

• Poconé has 17 registered small-

scale mining operations, with an estimated annual gold production of

• ver 250,000 ounces
• Easy access to and from the

project

• Electricity is available throughout

the area with an ample supply of water for use in mineral processing

• Two sub-parallel gold trends
• Several large Garimpos indicates

a large and significant gold district

The Poconé District

8 Lima Property│ VQA - TSX.V │ VRSCF - OTCQB June 2020

Typical Poconé Mining Operations

• Easy Mining
• Free-digging open-pit operation
• Deeply-weathered, no blasting
• Typically mining to 30m depth
• Grade control at face
• Average regional grade is 1-2 g/t

gold

• Excavator operator

controls grade

• Simple processing
• Hammer mill
• Ball mill
• Cyclone
• Concentrator

9 Lima Property│ VQA - TSX.V │ VRSCF - OTCQB June 2020

Lima Project – Overview

• 172 ha freehold property
• No debt
• Main grid energy supply
• Water supply
• All other infrastructure

readily available

• Gravity processing plant

can be purchased for less than BRL 1m (CAD 250k) and operational within less than two months

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Areas of Active Production

Test Pits

300m

Lima Property│ VQA - TSX.V │ VRSCF - OTCQB June 2020

Lima Project

• A rare opportunity to acquire a production-ready gold mine at exceptionally

attractive terms

• Simple project, attractive fundamentals, proven team, and compelling

economics:

• 172 ha freehold property
• No debt, no underlying royalty
• Simple free-digging open-pit,

Paracatu-style mineralization

• Minimal exploration for sulphide vein potential
• Less than 5 ha of the total 172 ha project area have been mined so far
• Management team with 14 years of experience in Brazil, living in Poconé

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Edmur Mine Edmur Mine

Lima Property│ VQA - TSX.V │ VRSCF - OTCQB June 2020

Hard Rock Potential

• Hard Rock Analogue – Paracatu Au Mine Kinross

Paracatu Gold Mine - Kinross Gold Corporation

~8Moz Au - Past Production 8.1Mozs Au Proven and Probable Reserve 4.1Mozs Measured and Indicated Resource

The Paracatu deposit is a world-class Proterozoic Gold Deposit identified which shares many characteristics with the veins systems of the Cuiaba Basin (e.g. Pocone Deposits)

12 Lima Property│ VQA - TSX.V │ VRSCF - OTCQB June 2020

Summary

Immediate Opportunity to Buy Into a Low-cost, Near-term Production Scenario

Free-digging open-pit operation. No blasting.

Bulk Sampling Provides a Pathway to Production

Initial area identified for Bulk Sampling Fast-track to test-processing as prospective structures and veins are identified

Undeveloped Exploration Opportunity to Identify and Develop a Major Gold-Vein Project

Intense weathering decomposes waste rock around auriferous veins, enriching these surface deposits. Underlying hard rock vein mineralization is typically lower grade but can form much larger deposits. Vein systems in the Poconé District are part of a +100km long belt of producing laterite/saprolite deposits with little or no “Hard Rock” testing beneath the mined laterite deposits.

13 Lima Property│ VQA - TSX.V │ VRSCF - OTCQB June 2020

The Poconé Mining Team

Richard Crew

Mr Crew, a British mining engineer, has a wealth of knowledge of Brazilian mining operations built up over 30 years in both open pit and underground mines. Most recently, he was COO for ASX-listed Orinoco Gold. Prior to this, he was General Manager Projects for the Sáo Bento Group, a private mining group operating two gold mines in the states of Mato Grosso and Para producing a combined total of 100,000oz per annum of gold. In this role, he successfully managed a Bankable Feasibility Study and construction of a 2Mtpa gravity/CIL processing plant and mining

• perations. He has previously held a wide range of senior operational and executive positions internationally for AIM,

TSX and ASX listed companies. Mr Crew holds a City and Guilds engineering diploma from Cornwall technical college / Camborne school of mines and AACA Level 3 from the Open University. and speaks fluent Portuguese.

Jeremy Gray

Mr Gray has been involved in mining for 26 years. He started his career at Credit Suisse in Melbourne in 1994 as a Mining Research Associate before moving to London to run the Mining Equity research team at Morgan Stanley. In 2001, he joined Sthenos Capital as a founding partner of a Hedge Fund with focus on Mining and Basic Materials

• trading. In 2005, Mr Gray returned to Credit Suisse in London to run the Mining team. In January 2009 he joined the

world’s largest cobalt producer at the time in DRC before it was acquired by ENRC in September 2009. In 2010, Mr Gray joined Standard Chartered in Hong Kong to run the Mining team, and in 2014 he became a founding partner of Chancery Asset Management in Singapore. For the last 3 years he has also worked as a Director of a Singapore- based gold Streaming & Royalty company. Mr Gray sits on the boards of Axiom Mining and White Rock Minerals that both trade on the ASX. 14 Lima Property│ VQA - TSX.V │ VRSCF - OTCQB June 2020

The Poconé Mining Team

Thomas Puppendahl

Thomas Puppendahl - Mr. Puppendahl has over 28 years’ experience in global capital markets as a strategist, portfolio manager, investment banker and analyst. He is the founder and managing partner of Chancery Asset Management, an independent strategic advisory firm based in Singapore, specializing in precious metals and emerging markets. In 2015, Chancery became a founding partner of a gold streaming & royalty company focused on providing development capital to emerging gold producers such as K92 Mining (TSXV: KNT). Prior to setting up Chancery, Mr. Puppendahl worked in mergers and acquisitions, private equity, emerging markets and management consulting with Merrill Lynch, Ermgassen & Co. and the Monitor Group in London and Mumbai. Mr. Puppendahl holds Master’s degrees in both Physics and Business Administration from RWTH Aachen University, Germany..

Wallacy Goncalves

Wallacy is a highly respected Brazilian national who has worked in senior positions for several international mining

• companies. Both in Africa and Brazil, he is extremely well connected, has direct access to local and regional

government agencies and politicians. He is bilingual Portuguese / English.

Marcelo Lima

Marcelo is a Brazilian national with more than 30 years of mining experience. He is renowned to be one of Brazil´s leading mine operations specialists, and he is a qualified mining technician with CREA registration. Marcelo has held senior operational positions with Anglo Gold Ashanti, Rio Tinto, Votorantim Metals and Jaguar Mining. During his tenure with these companies he was responsible for the opening of 8 mines. 15 Lima Property│ VQA - TSX.V │ VRSCF - OTCQB June 2020