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Preliminary Economic Assessment Corporate Presentation Forward - - PowerPoint PPT Presentation

TSX.V : SIR April 2017 Preliminary Economic Assessment Corporate Presentation Forward Looking Statement THIS MANAGEMENT PRESENTATION (THE "PRESENTATION") WAS PREPARED AS A SUMMARY OVERVIEW ONLY OF THE CURRENT AFFAIRS OF SERENGETI


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SLIDE 1

Preliminary Economic Assessment Corporate Presentation

TSX.V : SIR

April 2017

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SLIDE 2

Forward Looking Statement

www.serengetiresources.com | TSX.V: SIR 2

THIS MANAGEMENT PRESENTATION (THE "PRESENTATION") WAS PREPARED AS A SUMMARY OVERVIEW ONLY OF THE CURRENT AFFAIRS OF SERENGETI RESOURCES INC.(”SERENGETI" OR THE "COMPANY") AND WAS NOT PREPARED FOR THE PURPOSE OF ASSISTING PROSPECTIVE INVESTORS IN MAKING A DECISION TO INVEST IN SERENGETI. SERENGETI DOES NOT MAKE ANY REPRESENTATION AS TO THE COMPLETENESS, TRUTH OR ACCURACY OF THE INFORMATION CONTAINED IN THIS PRESENTATION. THE RECIPIENT IS CAUTIONED, THEREFORE, THAT IT IS INAPPROPRIATE TO USE THIS PRESENTATION, OR ANY PORTION THEREOF, TO ASSIST IN MAKING A DECISION TO INVEST IN SERENGETI. CONFIDENTIALITY This Presentation is confidential and the contents are not to be reproduced or distributed to the public or the press. Securities legislation in all provinces and territories prohibits such unauthorized distribution of information. Each recipient of the information contained in this Presentation will treat such information in a confidential manner and will not, directly or indirectly, disclose or permit its affiliates or representatives to disclose such information to any other person or reproduce this Presentation in whole or in part, without the prior written consent of Serengeti. PRELIMINARY ECONOMIC ASSESSMENT (“PEA”) The information in this presentation related to the Kwanika Copper/Gold Project was derived from the PEA. Statements in this PEA presentation pertaining to projected revenues and cash flows, quantity and grade of mineralized materials, estimated mineral prices are forward-looking statements. The Company cautions that this PEA is preliminary in nature, and is based on technical and economic assumptions which will be evaluated in further studies. The PEA is based on the current (as at January 2017) Kwanika estimated resource model, which consists of material in both the indicated and inferred classifications. Inferred mineral resources are considered too speculative geologically to have technical and economic considerations applied to them. The current basis of project information is not sufficient to convert the mineral resources to mineral reserves, and mineral resources that are not mineral reserves do not have demonstrated economic viability. Accordingly, there can be no certainty that the results estimated in the PEA will be realized. FORWARD-LOOKING INFORMATION This presentation contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations as well as a comprehensive list of risk factors are disclosed in the Company’s documents filed from time to time via SEDAR (www.sedar.com)with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates change, other than as required by law and readers are further advised not to place undue reliance on forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Quality Assurance/Quality Control The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's qualified person, David W. Moore, P. Geo., President and CEO of Serengeti Resources Inc.

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SLIDE 3

PEA Summary Economics

www.serengetiresources.com | TSX.V: SIR 3

Pre-tax Base Case Pricing Spot Pricing Base Case Pricing +10% NPV 7% C$ 324.4 million C$282.0 million C$519.1 million IRR 21.1% 19.6% 27.8% Payback 3.7 years 3.9 years 3.0 years After-tax Base Case Pricing Spot Pricing Base Case Pricing +10% NPV 7% C$ 191.2 million C$162.7 million C$321.4 million IRR 16.6% 15.3% 22.1% Payback 4.0 years 4.2 years 3.3 years

C$324.4 M

NPV 7% Pre-tax

21.1%

IRR Pre-Tax

3.7 Years

Pre-tax Payback

The Preliminary Economic Assessment base case was calculated using US$2.90 /lb. Cu, US$1270/oz Au, US$ 19 /oz Ag. Spot pricing calculated using US$2.71 /lb. Cu, US$1258/oz Au, US$ 18.41 /oz Ag. Base case +10% calculated using US$3.19 /lb. Cu, US$1397/oz Au, US$ 20.90 /oz Ag. Exchange rate US$/CDN$ 0.77 for the Base Case, 0.75 for Spot Pricing and 0.77 for Base Case +10%.

DISCLAIMER:* Results from PEA announced April 2017. Refer to Disclaimer on Slide 2.

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SLIDE 4

PEA Summary Production

www.serengetiresources.com | TSX.V: SIR 4

Category Units First 8 Years LOM Tonnes Milled Kt 43,201 78,855 Average Grade Cu % 0.466 0.381 Au g/t 0.539 0.357 Ag g/t 1.39 1.40 Metal Production Cu K lbs 403,462 600,635 Au K oz 561,200 676,635 Ag K oz 1,449 2,659 Throughput tpd 15,000 Mine Life Yrs 15 Net Cost of Production (C1)* per lb Cu US$ $0.70 $1.20

DISCLAIMER:* Results from PEA announced April 2017. Refer to Disclaimer on Slide 2.

* Net Direct Cash Cost (C1) is an industry standard measure that represents the cash cost incurred at each processing stage, from mining through to recoverable metal delivered to market, less net by-product credits. Direct Cash Costs cover: Mining, ore freight and milling costs; Mine-site administration and general expenses; Concentrate freight, smelting and smelter general and administrative costs; Marketing costs (freight and selling). Gold, Silver credits contribute 64.3% to revenue in the first eight years or 53.0% LOM at the Kwanika project.

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SLIDE 5

PEA Economics – Base Case

www.serengetiresources.com | TSX.V: SIR 5

Parameter Unit Base Case

Capital Cost CDN$ M $476 Sustaining Capital LOM CDN$ M $36.6

  • Avg. Op Cost/tonne

CDN$ $21.15 Pre-Tax Net Revenue CDN$ M $710.10 Pre-Tax NPV 7% CDN$ M $324.4 Pre-Tax IRR & Payback 21.1% & 3.7 yrs Post-Tax Net Revenue CDN$ M $475.1 Post-Tax IRR & Payback 16.6% & 4.0 yrs Metal Price Cu US$/lb $2.90 Au US$/oz $1.270 Ag US$/oz $19.00 Exchange Rate US$/CDN 0.77

DISCLAIMER:* Results from PEA announced April 2017. Refer to Disclaimer on Slide 2.

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SLIDE 6

Copper Price Break-out

www.serengetiresources.com | TSX.V: SIR 6

5 YEAR COPPER SPOT

USD/lb

Source: stockchart.com

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SLIDE 7

PEA Production Summary

www.serengetiresources.com | TSX.V: SIR 7

0.1 0.2 0.3 0.4 0.5 0.6 0.7 2000 4000 6000 8000 10000 12000 14000 16000

  • 1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Cu% and Au g/tonne Ktonnes Year Total Undergound Mill Feed Total Open Pit Mill Feed OP WASTE Mined Combined Cu % Au Au g/t

DISCLAIMER:* Results from PEA announced April 2017. Refer to Disclaimer on Slide 2.

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SLIDE 8

Kwanika Mineral Resource

www.serengetiresources.com | TSX.V: SIR

8

* Pit constrained mineral resources are reported in relation to a conceptual Whittle pit shell and underground resources are reported within the area for potential underground

  • development. Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the
  • estimate. All composites have been capped where appropriate.

** Pit constrained mineral resources are reported at a copper equivalent cut-off of 0.13% and underground resources are reported at 0.27%. The cut-offs are based on prices

  • f US$3.00 per pound of copper, US$1,300 per ounce of gold, US$20 per ounce of silver, US$9.00 per lb of molybdenum and assumed recoveries of 89% for copper, 70%

for gold, 75% for silver, and 60% for molybdenum.

Category Quantity Cut -off GRADE CONTAINED METAL (x1000 Cu Eq Tonnes) (%) Cu Au Ag Cu Au Ag (%) (g/t) (g/t) (000's lb) (000's oz) (000's oz) Central Zone Pit Constrained Indicated 101,500 0.13 0.31 0.32 0.96 697,200 1,040 3,120 Inferred 31,900 0.13 0.17 0.14 0.59 118,500 140 610 Underground Indicated 29,700 0.27 0.34 0.36 1.05 222,300 350 1,010 Inferred 7,900 0.27 0.23 0.17 0.68 39,800 40 170 South Zone Inferred 33,300 0.13 0.26 0.08 1.64 191,400 80 1,760

DISCLAIMER:* Results from PEA announced April 2017. Refer to Disclaimer on Slide 2.

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SLIDE 9

Kwanika Site Layout

www.serengetiresources.com | TSX.V: SIR 9

Advantages

Small foot print

Surplus process water held in separate storage & treatment facility

TSF buttressed with all

  • pen pit waste rock to

increase safety factor 500 m

DISCLAIMER:* Results from PEA announced April 2017. Refer to Disclaimer on Slide 2.

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SLIDE 10

Kwanika - Central Pits & Block Caves

www.serengetiresources.com | TSX.V: SIR 10

Section 6156180N

NSR (CAD $) 100 m

DISCLAIMER:* Results from PEA announced April 2017. Refer to Disclaimer on Slide 2.

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SLIDE 11

Kwanika - South Pits

www.serengetiresources.com | TSX.V: SIR 11

NSR (CAD $)

DISCLAIMER:* Results from PEA announced April 2017. Refer to Disclaimer on Slide 2.

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SLIDE 12

Daewoo (DMC) Joint Venture

www.serengetiresources.com | TSX.V: SIR 12

SIR - operator plus 10% management fee (until 50% ownership)

SIR retains METC(30%) credits on qualifying expenditures on first $8.2M

SIR maintains rights to enter into streaming transactions on all metals subject to DMC having certain

  • ff-take rights

DiISCLAIMER* see NR16-03, April 6th, 2016 for full details on DMC joint venture & Results from PEA announced April 2017. Refer to Disclaimer on Slide 2.

Kwanika PEA Project Value: C$191.2M After-tax NPV 7%

SIR 95% = C$181.6 M DMC 5% = C$9.6 M

DMC earned 5% with $1.2M expenditure

SIR 65% = C$124.3 M DMC 35% = C$66.9 M

DMC has option to earn an additional 30% with $7M expenditure

C$9.6 M C$66.9 M

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SLIDE 13

2017 2018 2019 2020 2021 2022

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Kwanika Project Target Timelines

www.serengetiresources.com | TSX.V: SIR 13

PEA Complete

Drilling & Pre-Feasibility Environmental & Permitting Feasibility Construction Production

DISCLAIMER:* Results from PEA announced April 2017. Refer to Disclaimer on Slide 2.

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SLIDE 14

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

GOLD DEVELOPERS COPPER DEVELOPERS SERENGETI

P/NAV ESTIMATES

COMPANY CLASSIFICATION

Kwanika – Estimated Average P/NAV

www.serengetiresources.com | TSX.V: SIR 14

Source: ExMin Consulting Services

(Values for Illustrative purposes)

Potential Re-rating

PEA Pre-feasibility Feasibility

Pre PEA delivery

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SLIDE 15

Comparable Cu-Au Transactions

www.serengetiresources.com | TSX.V: SIR 15

Kwanika Avg = 5.66 cents Avg = 2.83 cents Avg = 1.23 cents Source: ExMin Consulting Services

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SLIDE 16

Shares Outstanding 71.5 M Warrants 13.9 M Options 8.5 M Fully Diluted (As of April 2017) 93.9 M Management, Insiders & Founders ~27%

  • wnership

Treasury* $0.8M Average Trading Volume (90day) 94,000 Share Price (SIR.V April 2017) $0.14 Market Capitalization ~$ 10 M Management David Moore, P.Geo., President, CEO & Director Sheri Rempel, Chief Financial Officer Pam White, Corporate Secretary Michael Thicke, P. Geo. Board of Directors George Tikkanen, B.Eng. Ian Brown, CA Lewis Lawrick, B.Comm. Contact David W. Moore Suite 520, 800 West Pender St Vancouver, BC, V6C 2V6 info@serengetiresources.com (604) 605-1300

* Financial information above is from the Company’s November 30th, 2016 Financial Statements and are expressed in Canadian

  • Dollars. To read the full financial statements, please visit the Company’s website at www.serengetiresources.com
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SLIDE 17

Serengeti Investment Case

www.serengetiresources.com | TSX.V: SIR 17

  • PEA-stage Cu/Au project in favourable

jurisdiction

  • Partner funded de-risked project; ability to

maintain majority interest

  • Immediate potential for valuation re-rating

based on P/NAV

  • High quality exploration targets offer discovery

upside

  • Upcoming catalysts include potential re-rating,

Daewoo funding decision, high quality exploration targets to be drilled in 2017

  • Compelling market valuation

~$10M Market Cap, Exploration team with track record of discovery, Multiple projects having significant value addition potential in 2017

PROVEN TEAM

PROLIFIC DISTRICT KWANIKA Cu-Au PROJECT STRATEGIC PARTNER PROSPECTIVE PORTFOLIO

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SLIDE 18

Proven District

www.serengetiresources.com | TSX.V: SIR 18

Resurgence in BC Cu-Au mine development (e.g. New Afton, Mt. Milligan, Red Chris)

Recent deep drilling identified extensive high grade zones (>1% CuEq) in a number of BC porphyry systems (e.g. KSM, Red Chris, New Afton)

  • Low risk, politically stable jurisdiction
  • Attractive tax & mining royalty regime

(e.g. 32-35% combined rate)

  • Up to 30% government refund on qualifying

exploration expenditures

  • Amongst lowest power costs in the world
  • Good infrastructure and favourable location

with respect to Pacific Rim markets

Appendix

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SLIDE 19

Prospective Exploration Portfolio

www.serengetiresources.com | TSX.V: SIR 19

UDS

 Near Kemess Mine, M&A activity in the area, large high probability drill target identified

Milligan West

 Proximity to Mt. Milligan Mine – high probability drill target identified

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SLIDE 20

Power of Discovery & Capital Preservation

www.serengetiresources.com | TSX.V: SIR 20