TSX-V: TEM High Grade Gold Exploration and Near Term Production in - - PowerPoint PPT Presentation

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TSX-V: TEM

High Grade Gold Exploration and Near Term Production in Tanzania

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This presentation includes certain statements that may be deemed forward-looking. All statements in this presentation, other than statements of historical facts, that address future production, mineral resource or mineral reserve potential, results of exploration drilling, geological potential and continuity of geological features, exploitation activities and events or developments that the company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, availability of capital and financing, and general economic, market

• r business conditions. Investors are cautioned that actual results or developments may differ materially from those projected in the forward-

looking statements. Additional information with respect to exploration on the Tembo gold property can be found in the technical report entitled "Report on the Tembo Gold Project (pursuant to National Instrument 43-101 of the Canadian Securities Administrators) Geita District, Mwanza Region, United Republic of Tanzania", effectively dated October 30, 2011, as revised July 31, 2012 (the "Report.") The Report is available on the company's website and under its SEDAR profile at www.SEDAR.com. The information contained in this presentation has been prepared under the supervision of David Scott, Pr. Sci. Nat., who is designated as a "Qualified Person" with the ability and authority to verify the authenticity and validity of the data.

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CAUTIONARY NOTE

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HIGHLY PROSPECTIVE TANZANIAN GOLD ASSET – A 110km2 contiguous area consisting of 35 active licences and 3 under application, adjacent to Acacia Mining's 20Moz Bulyanhulu Mine (current resource and past production) in the prolific Lake Victoria greenstone belt of Tanzania – Significant initial drill results with best intercepts including:

• TDD0004: 3.13 g/t Au over 35.89m, including 4.46 g/t gold over 2.60 and 9.38 g/t gold over 6.30m
• TDD0005: 10.76 g/t Au over 4.00m, including 93.3 g/t gold over 0.38m
• TDD0054: 8.17g/t Au over 11.05m
• TRC0013: 16.10 g/t Au over 3.00m
• TRC0423: 10.17g/t Au over 6m from 36.0m including 19.1g/t gold over 3m
• TDD0041: 22.81g/t Au over 15.00m from 299.00m including 34.78g/t Au over 9.70m from 302.30m
• TDD0071: 9.64g/t Au over 3.95m from 85.25m, including 24.72g/t Au over 1.45m
• TDD0074: 6.55g/t Au over 7.46m from 370.46m
• TDD0107: 16.58g/t Au over 3.55m from 43.88m and 27.88g/t Au over 3.00m from 65.90m
• TDD0111: 35.14g/t Au over 2.45m including 167g/t Au over 0.50m from 53.35m

– Currently over 2,000m of mineralized strike drilled to depth of 150m on three targets, Ngula 1, Nyakagwe East and Nyakagwe Village HIGH QUALITY MANAGEMENT TEAM EXTENSIVE ARTISANAL ACTIVITY – Currently up to 1,000 artisanal miners, mining to depths in excess of 30m in tens of active shafts – Historical and current artisanal mining along a combined strike in excess of 10km along northwest (Bulyanhulu parallel), northeast and east-west trending structures – Extracting high grades between 5 and 58 g/t gold mate CLOSELY HELD WITH INSIDER SUPPORT AND CLEAN BALANCE SHEET

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TEMBO AT A GLANCE

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CAPITAL STRUCTURE

Capital Structure Options and Warrants Holders Listings

TSX Venture TEM Frankfurt Stock Exchange T23

TSX Venture Symbol TEM Share Price $0.02 52 Week Range $0.01 - $0.035 Issued & Outstanding 162,732,634 Fully Diluted 177,732,634 Warrants

• Options

15,000,000 Concept Capital Management & Affiliates 30% Management & Insiders 23% Oriole Resources 10% 49 North Resources & Affiliates 10%

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MANAGEMENT TEAM

Firsthand and Extensive Experience

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FORMER BULYANHULU MANAGEMENT LEADING THE COMPANY

DAVID ANTHONY | CHAIRMAN OF THE BOARD

– Formerly Process Manager at Bulyanhulu Mine, Project Director for Barrick Gold responsible for design, feasibility study, construction and

• perational management of Tulawaka and Buzwagi Mines in Tanzania, and COO of African Barrick Gold

DAVID SCOTT | PRESIDENT, CEO AND DIRECTOR

– Former Technical Services Manager for Barrick Gold’s subsidiary Kahama Mining Corporation at Bulyanhulu Mine, Tembo Project’s immediate neighbour – Over 37 years of African exploration and mining experience with 20 years in Tanzania – Extensive knowledge of Tanzanian geology including direct experience at Bulyanhulu – Holds a BSc, Geology from the University of the Witwatersrand as well an M.Sc., and is a registered Professional Natural Scientist (Pr. Sci. Nat.) and Fellow of the Geological Society of South Africa

SIMON BENSTEAD | CFO, VP BUSINESS DEVELOPMENT AND DIRECTOR

– Entrepreneur and investor with twenty years of capital markets and senior management experience, formerly with Merrill Lynch as Vice President Institutional Equity Trading, and BMO Capital Markets as Managing Director Institutional Trading focused on resources. – Significant and long term supportive shareholder of Tembo; holds a BA in Commerce from The University of Western Ontario

FRANK HOEGEL | DIRECTOR

– Currently serves as Chief Executive Officer of Peter Beck Performance Fonds GbR, and advisory board of Concept Capital Management, an Asset Management Company – Completed his degree in Master of Business Administration (FH) with a focus on Financial Management, Banking and International Business & Management from the University of Nürtingen, Germany.

PAUL MAGEGE | COUNTRY MANAGER

– A founding shareholder with strong local community and government relationships and a skilled administrator.

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DIRECTORS AND MANAGEMENT

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JOHAN KRYNAUW | GEOLOGICAL ADVISOR – Geologist with 40 years of experience – Formerly head of South African National Antarctic Earth Sciences Programme and Associate Professor of the University of Natal – After 1997 Johan worked at JCI and for The Mineral Corporation as Senior Geological Advisor – Currently an independent geological and advisory consultant – Fellow and Past President of the GSSA, and a Fellow of the Society of Economic Geologists – Focussed on project management, exploration planning and execution, preliminary assessment of projects and programmes, and mineral exploration, in mainly gold, PGEs, chrome and base metals – Key member of the Tembo exploration team during the startup in 2011 and early 2012 ALAN GOLDSMITH | GEOLOGICAL, GIS AND DATABASE ADVISOR

– Exploration career commenced in 1991 in the Barberton Greenstone Belt conducting brownfields gold exploration with Anglovaal Limited – Further four years spent conducting base metal and gold exploration in southern Africa – Three years spent in Anglovaal’s head office conducting desktop studies, including developing conceptual models, undertaking project reviews in base and precious metal projects encompassing diverse geological terranes in Africa – Designed, implemented and managed a Geographical Information System for Anglovaal’s geological department and remote regional

• ffices

– Since leaving the restructured Anglovaal in 2001, has run his own business Spatial Data Technologies, before joining The Mineral Corporation as a specialist geologist and GIS analyst, during which he was a member of the Tembo Gold startup team in 2011 and early 2012 – Currently an independent consultant providing exploration services in strategic planning, agreement negotiation, conceptual studies and modeling, geologic terrane knowledge development, target generation, desktop studies, GIS database management, data modeling and exploration management

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TECHNICAL TEAM

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TEMBO GOLD PROJECT

Historic and Recent Work

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AN ESTABLISHED MINING REGION WITH SEVERAL MULTI-MILLION OUNCE GOLD DEPOSITS

• Six modern mining operations
• Significantly improved infrastructure
• Strong gold endowment
• Granite greenstone terrane with well understood

geological parallels worldwide

Company Mine/ Prospect P&P/M&I Au Moz Inferred Au Moz Acacia Mining Bulyanhulu 8.7 7.6 Acacia Mining North Mara 3.3 0.8 Acacia Mining Buzwagi 0.5 1.2 Acacia Mining/Orecorp Nyanzaga 2.7 0.3 Acacia Mining Golden Ridge 0.7 0.1 Anglogold Ashanti Geita 5.2 1.7 Tanzania Royalty Buckreef 1.3 0.8 Nyakafuru 0.4 0.7

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LAKE VICTORIA GOLDFIELD

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PROJECT CREDENTIALS

• Large contiguous ground holding, successful

greenfields exploration, extensive artisanal activity and exceptional drilling success

– ~135km2 active licence area – Historic exploration database with good results – >10km of extensive continuous artisanal workings – Numerous magnetic lineaments that correspond with lines of artisanal mining shafts – Extensive transported cover which gives scattered high grade soil geochemistry results – 42,000m drilling to date with strong gold results

• Adjacent and along strike of Acacia Mining’s

Bulyanhulu mine

– Bulyanhulu deposit, a 4km long, 2km deep, 2m wide, high-grade >11g/t Au – Bulyanhulu geology and structures continues onto Tembo property – 4.5Moz P&P Reserve and 4. 1Moz Au Indicated Mineral Resource (Acacia Mining PLC Annual Report and Accounts 2017)

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THE TEMBO PROJECT

~ 135KM2 LAND PACKAGE ADJACENT TO ACACIA MINING’S 20MOZ BULYANHULU MINE

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• Over 1,000 artisanal miners operating over tens of active mine shafts
• More than 2,800 historical and current shafts along Bulyanhulu parallel northwest structures, and along east-

west and northeast trending structures totaling over 10km of strike

• Mining to depths generally in excess of 30m and reportedly as deep as 90m
• Milling and recovery on site, with grades ranging between 5 and 58 g/t gold

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ARTISANAL ACTIVITY

SIGNIFICANT ARTISANAL ACTIVITY FURTHER CONFIRMS GOLD MINERALIZATION

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Exploration results suggest a highly prospective area that is under-drilled

• Airborne magnetics

– Delineates the greenstone geological host to gold mineralisation – Confirms overall geological continuity with the adjacent Bulyanhulu Mine to the southeast – Clearly defines numerous northwest, northeast and east-west trending magnetic structures – Structures commonly coincide with extensive artisanal workings – >100km of potential structures along the three directions

• Geochemistry

– Soils, RAB/aircore, and pitting – Widespread distribution of scattered highly anomalous gold values – Transported cover up to 10m thick masks geology and precludes strong contiguous geochemical anomalies

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TEMBO HISTORICAL EXPLORATION

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LIDAR survey identified over 10km of artisanal mining zones

• LIDAR survey and field mapping

– Digital terrain model (DTM) and high resolution

• rthophoto identified numerous previously unrecorded

areas of mining – Laterally continuous single zones of mining shafts extend up to 2km in strike and total >10km – The three mined zones strongly correlate with conjugate structures reflected in the magnetics

• Artisanal mining

– Mineralized rock from artisanal pits consists predominantly of quartz vein and sheared meta-volcanic host with abundant evidence of sulphide – Grades ranging between 5 and 58g/t gold returned from artisanal face sampling

• Target definition

– LIDAR interpretation, soil geochemistry, airborne magnetics and historical drilling define numerous target areas

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LIDAR AND RECENT FIELD MAPPING

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HIGH GRADE GOLD MINERALIZATION DEMONSTRATED ON MULTIPLE TARGETS

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DRILL RESULTS OVERVIEW

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SEVERAL DRILL HOLES ENCOUNTERED MULTIPLE ZONES OF MINERALIZATION

• Highlights Include:

– TDD0004: 3.13 g/t gold over 25.89m from 41.00m including 9.38 g/t gold over 6.30m; – TDD0005: 5.14 g/t gold over 8.50m, including 15.59 g/t gold

• ver 2.68m;

– TDD0010: 6.44 g/t gold over 1.20m; – TDD0012: 8.60 g/t gold over 0.98m; – TDD0054: 8.17 g/t gold over11.05m from 116.95m including 18.90 g/t gold over 0.82m and 28.80 g/t gold over 1.00m; – TDD0041: 22.81g/t Au over 15.00m from 299.00m including 34.78g/t Au over 9.70m from 302.30m, including 205 g/t gold

• ver 1m

– TRC0013: 17.23g/t gold over 4.00m from 19.00m and 13.00 g/t gold over 1.00m from 104.00m – TRC0014: 19.80 g/t gold over 1.00m from 114.00m and 10.00 g/t gold over 1.00m from 122.00m

• Drill Holes

– 76 drill-holes completed, 41 RC and 35 diamond drilling (DD). – Diamond and RC drilling on 100m spaced section lines along a 600m strike length along main target. Some 50m in-fill drill holes. – Heel-toe RC drilling conducted to test between primary structures. – Multiple east-west and crosscutting mineralized structures intersected at depths between 50m and 250m beneath and to east along strike of workings.

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NGULA 1 DRILL RESULTS

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NGULA 1 BEST DRILL RESULTS

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CONSISTENTLY DEVELOPED AND MINERALIZED NORTHWEST STRUCTURES TESTED

Note: Detailed information on all drill results available on the company website

Highlights include:

• TDD0029: 61.80g/t gold over 0.68m from 277.24
• TDD0104: 4.72g/t gold over 2.11m from 66.80m
• TRC0234: 5.46g/t gold over 2.00m from 109.00m
• TRC0347: 6.48g/t gold over 2.00m from 8.00m
• TDD0056: 4.42g/t Au over 2.60m from 130.60
• TDD0072: 8.44g/t Au over 1.30m from 99.90m
• TDD0074: 6.55g/t Au over 7.46m from 370.46m
• DD001: 10.25 g/t gold over 3.50m from 38.50m
• DD004: 2.45g/t gold over 4.72m from 87.03m
• DD005: 9.73g/t gold over 3.40m from 81.94m
• DD008: 2.65g/t gold over 3.60m from 84.00m
• DD011: 10.4g/t gold over 1.50m from 45.10m
• RC056: 36.70g/t gold over 1.00m

Follow-up in-fill and deeper drilling during 2014 confirmed:

• 1000m strike extent of gold mineralization on one structure
• Multiple sub-parallel structures to the south and north
• Consistent mineralisation

Drill holes:

• 43 drill-holes completed, 20 reverse circulation (RC) and 23

diamond drilling (DD)

• Drill holes on 100m and 50m spaced lines and testing to

depths up to 250m

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8 RC059 RC058 RC057 RC056 DD012 DD011 DD010 DD009 DD008 DD007 DD006 DD005 DD004 DD003 DD002 DD001 TRC0350 TRC0349 TRC0348 TRC0347 TRC0346 TDD0127 TDD0104 TDD0079 TDD0078 TDD0077 TDD0076 TDD0074 TDD0072 TDD0070 TDD0058 TDD0056 TDD0055 TDD0032 TDD0031 TDD0030 TDD0029 TDD0026 TDD0025 TDD0024 TDD0021 TDD0020 TDD0019 IRNPRC4 IRNPRC3 IRNPRC2 IRNPRC1 TDD0070A

438000 438500

/

NYAKAGWE EAST TARGET, TEMBO PROJECT - PHASE 2 DRILLING STATUS

Map extent

Date: 25/06/2014

Dyke

Legend 1.49/4.00 g/t/m ! DD Planned ! DD Completed # RC Completed # Historical RC ! Historical DD Magnetic Lineaments Hardrock Shafts Artisanal Mining Activity

1.20/2.90 3.19/0.51 1.49/4.00 1.55/7.2 1.85/2.40 1.76/0.72 0.82/1.00 1.41/4.50 2.07/3.26 1.89/2.23 8.44/1.30 61.80/0.68 2.94/4.00 1.02/3.3 0.64/3.30 1.10/4.85 8.09/4.50 6.55/7.46 7.94/2.00 4.72/2.11 4.42/2.60 8.56/0.30 0.05 0.1 0.15 0.2 0.025 Kilometers 1.01/8.70 1:2,500

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NYAKAGWE EAST DRILLING

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MULTIPLE HIGH GRADE GOLD INTERSECTIONS BOTH NEAR SURFACE AND AT 300M DEPTH

Highlights include:

• TDD0107: 16.58 g/t Au over 3.55m from 43.88m and 27.88 g/t

Au over 3.00m from 65.90m

• TDD0101: 78.1 g/t Au over 1.00m from 294m
• TRC0552 : 8.42g/t Au over 3.00m from 86.00m
• TRC0562 : 4.61g/t Au over 5.00m from 82.00m
• TDD0071: 9.64g/t Au over 3.95m from 85.25m, including

24.72g/t Au over 1.45m

• TDD0103: 15.10g/t Au over 1.00m from 54.00m
• TDD0112: 3.49g/t Au over 4.98m from 65.12m
• TDD0111: 35.14g/t Au over 2.45m
• TDD0115: 2.74g/t Au over 8.50m from 53.00m and 2.04g/t Au
• ver 9.00m from 69.00m

2014 Follow-up drilling results confirmed:

• Multiple east-west structures
• The eastern extension of the high-grade east-west mineralisation

towards Nyakagwe East and down dip to the south

• The existence of mineralised northeast trending structures

corresponding to magnetic lineaments

• Wide mineralisation where the different structural trends

intersect Drill holes:

• 26 drill-holes completed, 11 RC and 15 diamond drilling (DD)
• Drill holes on 100m and 50m spaced lines and testing to depths

up to 250m

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IP32 IP31 IP30 IP29 IP28 IP27 RC067 RC066 RC039 RC038 RC037 RC036 RC035 TRC0562 TRC0560 TRC0559 TRC0558 TRC0557 TRC0556 TRC0555 TRC0554 TRC0552 TDD0138 TDD0137 TDD0128 TDD0120 TDD0119 TDD0117 TDD0116 TDD0115 TDD0114 TDD0113 TDD0112 TDD0111 TDD0109 TDD0108 TDD0107 TDD0105 TDD0103 TDD0102 TDD0101 TDD0071 IRKGRC6

436500 437000

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NYAKAGWE VILLAGE -PHASE 2 DRILLING STATUS - 2014

• Map extent

1:2,500

• 70 - -90 degrees
• 30 - -50 degrees

78.10/1.00 15.10/1.00 1.43/0.90 16.58/3.55 27.88/3.00 6.08/0.30 3.16/1.95 9.64/3.95

35.14/2.45

3.35/5.98 1.42/2.52 2.63/1.50 1.32/2.92 1.85/3.22

Date: 26/08/2014

8.42/3.00 4.61/5.00

2.74/8.50 2.04/9.00

Legend 78.10 / 1.00 g/t/m ! DD Planned ! DD Completed ! HDD Historical

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HRC Historical

#

RC Completed Magnetic Lineaments ! Hardrock Shafts Artisanal Mining Activity

NYAKAGWE VILLAGE

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• TARGET PRIORITISATION – MARCH 2019

– Review of results on all targets to date – Confirmation of Ngula 1 as first priority resource target and prioritization of first area in this target – Ngula 1 target has a potential strike of >1,200m along two parallel east-west striking sub-vertical structural zones – Model preliminary resource

• PROPOSED SCOPING STUDY AND PFS PROGRAM – 2Q-4Q 2019

– Complete resource model – Identify priority areas for potential mine development – Preliminary pit design – Submission of samples for initial metallurgical characterization – Mine and process basic design – Identification of optimum production rate – Preliminary capital estimate – Develop a financial model – Identify further work to optimize the plan for execution and completion of a definitive feasibility study

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MAIDEN RESOURCE DEVELOPMENT 2019

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HIGHLY PROSPECTIVE GOLD ASSET

Located adjacent to Acacia Mining's 20Moz Bulyanhulu Mine in the prolific Lake Victoria Greenstone belt, the ~135km2 property has highly prospective geology, encouraging earlier exploration with promising drilling results on multiple targets. Less than 2% of potential gold hosting structure tested by drilling. No Cu mineralization identified on the Tembo Project.

HIGH QUALITY MANAGEMENT TEAM

CEO: David Scott, formerly of Barrick Gold’s subsidiary Kahama Mining Corporation (now Acacia’s Bulyanhulu Mine), 39 years experience, 20 years in Tanzania.

EXTENSIVE ARTISANAL ACTIVITY

Over 1,000 artisanal workers, mining from tens of shafts some to depths in excess of 50m along a >10km strike, extracting high grade 5 to 58 g/t gold material

SIGNIFICANT INITIAL DRILL RESULTS

Best intercepts include TDD0041: 22.81g/t Au over 15.00m from 299.00m including 34.78g/t Au over 9.70m from 302.30m; TDD0004: TDD0004: 4.46 g/t gold over 2.60 and 9.38 g/t gold over 6.30m; TDD0005: 10.76 g/t gold over 4.00m, including 93.3 g/t gold over 0.38m and; TRC0013: 16.10 g/t gold over 3.00m and 4.01 g/t gold over 3.00m, TRC0423: 10.17g/t gold over 6m from 36.0m including 19.1g/t gold over 3m, with over 1,500m of mineralized strike identified in two project areas

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INVESTMENT SUMMARY

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APPENDIX

Additional Info

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TEMBO IS COMMITTED TO BEING A VALUABLE MEMBER OF ITS COMMUNITY

Tembo Gold engages with the community – Since inception of the project Tembo has been committed to stakeholder engagement and becoming a valued member of the community – Solid early groundwork was conducted to identify community risks and needs – Considerable scope identified to improve the social- economic status of the surrounding villages and positively impact the natural environment – A systematic and documented approach to HSEC matters has been adopted – Approach aligns with international best practice, the Equator Principles and the IFC Performance Standards

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OUR COMMUNITY

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ARTISANAL MINING OF WELL DEVELOPED QUARTZ VEINS IN ROBUST SHEAR STRUCTURES

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ARTISANAL MINING FACES

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PRELIMINARY METALLURGICAL TEST WORK INDICATES ~90-95% GOLD RECOVERIES

• Gold Deportment Procedure

– Artisanal face samples grouped and composited into low, medium and high-grade – Amenability to gravity recovery tested by Knelson concentrator – Mineralogical characterisation of gold established – Gold exposure and grainsize determined – Diagnostic leach of gravity tails and direct cyanidation

• f bulk sample
• Test Work Results

– Gold is well liberated and well exposed – Direct cyanidation of head samples indicates high gold recoveries for medium (94.7%) and high grade (98.9%) composites but low recovery (87.3%) for low grade composite – Gravity recovery plus direct cyanidation of gravity tails would be an effective method to recover the gold

10 20 30 40 50 60 70 80 90 100

• Grav. Conc
• Grav. Tails

Distribution (%) Gravity Separation of the Low grade sample

Mass Gold Sulphur 10 20 30 40 50 60 70 80 90 100

• Grav. Conc
• Grav. Tails

Gravity Separation of the Medium grade sample Mass Gold Sulphur

10 20 30 40 50 60 70 80 90 100

Grav.Conc.

• Grav. Tails

Distribution (%) Gravity Separation of the High grade sample

Mass Gold Sulphur

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PRELIMINARY METALLURGICAL TESTING

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MINERALIZED REEFS ALONG STEEPLY DIPPING NORTHWEST STRIKING STRUCTURE

• A 20m million ounce narrow-vein shear hosted

gold deposit with silver and copper mineralisation

• Shear zone situated within a narrow argillite unit

at a contact within a volcanic sequence

• Sulphide mineralization primarily pyrite and

chalcopyrite in smokey quartz veins and sheared argillite

• Volcanic sequence consists of mafic to

intermediate meta-volcanic flows overlain by felsic pyroclastic ash tuffs

• The zone strikes approximately 310 degrees and

dips steeply to the northeast

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BULYANHULU GEOLOGY

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REEF 2 CONTINUES TO TEMBO PROJECT BOUNDARY

African Barrick Gold Preliminary Results 2013 Presentation February 2014

T E M B O P R O J E C T B O U N D A R Y ~ 2 K M T O T H E N O R T H W E S T

R E E F 0 L O N G S E C T I O N F A C I N G N O R T H E A S T

2KM

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BULYANHULU LONG SECTION