Pelangio Exploration Inc. · TSXV:PX
Pelangio Exploration — Investor Presentation (March 2005)
54 slides from Pelangio Exploration's investor presentation, March 2005
Slide 1: Detour Lake - a Gold Camp with the Potential of Timmins
Detour Lake - a Gold Camp with the Potential of Timmins
Slide 2: Slide 2
Slide 3: Slide 3
Slide 4: Pelangio Properties
Pelangio Properties betout Lake a - PLG = VALUE
Slide 5: Shareholder Profile
Shareholder Profile • High River ~19% • Sprott Asset Management ~19% • RAB Capital ~5% • Management ~5% • Strong retail shareholder base
Slide 6: Management Expertise
Management Expertise • Ingrid Hibbard - President & CEO, Director – Mining and securities lawyer – Former Corporate Secretary, Hemlo Gold Mines – 30 years mining experience • Ian Shaw - Chief Financial Officer – Chartered accountant since 1969 – 29 year career in the mining business, including Sherr
Slide 7: Pelangio Technical Expertise
Pelangio Technical Expertise • Kevin Filo, P.Geo., Senior Geologist – 24 years experience in gold and base metals exploration • Fred Sharpley, P.Geo., Geologist – 35 years experience in mineral exploration • Frank Racicot, Geologist – 30 years experience in mineral exploration • Eric Kallio, P.Geo.,
Slide 8: Pelangio Technical Expertise (cont'd)
Pelangio Technical Expertise (cont-d) • High River Strategic Alliance – Managing exploration at Detour Lake; company team with development and mining expertise. – Owns 19% equity interest • Driff Cameron, P.Geo., VP Exploration, High River – Over 30 years exploration experience – Had significant rol
Slide 9: Pelangio vs. Peers
Pelangio vs. Peers Pelangio Lake Shore Gold Desert Sun Kirkland Lake Gold Symbol PLG LSG DSM KGI Share Price 1 $0.48 $0.82 $2.37 $4.74 Market Capitalization $29,994,440 $54,971,185 $168,411,361 $193,616,856 Shares Issued 62,488,417 67,038,031 71,059,646 40,847,438 Warrants 3,086,448 7,518,362 17,823
Slide 10: Pelangio Property Locations
Pelangio Property Locations
Slide 11: Abitibi Greenstone Belt
Abitibi Greenstone Belt Produced 65% of gold mined in Canada
Slide 12: Detour Lake and Timmins
Detour Lake and Timmins Detour Lake Property Timmins Camp
Slide 13: Detour Lake and Timmins Comparison
Detour Lake and Timmins Comparison Timmins Detour Lake Abitibi Greenstone Belt 9 9 East-West Deformation 9 9 Gold Found North of Fault 9 9 En-Echelon Deposits 9 9 80 Square Miles 9 9 Gold in Various Rock Types 9 9
Slide 14: Block A: 50% Joint Venture
Block A: 50% Joint Venture • Trade Winds’ Option – $7,500,000 million in expenditures by December 31, 2007 to earn 50% – Approximately 4.5 sq. mi. of Pelangio’s 80 sq. mi. Detour Lake holdings – Management Committee with Pelangio during earn in period – Sharing of data and camp facilities • Trade Wi
Slide 15: Block A Exploration Focus
Block A Exploration Focus • Over 20,000 m. of drilling in 2004 focused on the M Zone Gold Deposit • 30,000 m. of drilling planned for 2005
Slide 16: Detour Lake Camp
Detour Lake Camp re] PLG = VALUE
Slide 17: M Zone Length 3.6 km / Height 450 m
M Zone Length 3.6 km / Height 450 m The M Zone appears to be longer, with a greater vertical extent and with a higher indicated grade when compared to the Detour Mine Zone. Area of 2005 Winter work
Slide 18: M Zone Highlighted Drill Results
M Zone Highlighted Drill Results Section Hole No. Metric Results Imperial Results 14850E TWDDH-004 18.23 g/t gold over 3 m. 0.531 oz./t gold over 9.84 ft. 14850E TWDDH-005 11.12 g/t gold over 3.2 m. 0.324 oz./t gold over 10.5 ft. 14400E TWDDH-010 8.88 g/t gold over 11.0 m. 0.259 oz./t gold over 36.0
Slide 19: M Zone 3D Model
M Zone 3D Model Oblique view from above
Slide 20: Drill Rig at Section 14850
Rig at Section 14850 Fad ~L “en teane
Slide 21: Section 14850
Section 14850 Hole No. TWDDH-005 11.12 g/t gold over 3.2 m. 0.324 oz./t gold over 10.5 ft. Hole No. TWDDH-004 18.23 g/t gold over 3 m. 0.531 oz./t gold over 9.84 ft. 384.12 g/t gold over 2.0 m. 11.20 oz. g/t over 6.56 ft. Original Placer Dome Hole 1996
Slide 22: Section 14400
Section 14400 Hole No. TWDDH-010 8.88 g/t gold over 11.0 m. 0.259 oz./t gold over 36.09 ft.
Slide 23: Block A: Results and Goals
Block A: Results and Goals • 20,000 m. drilled and 30,000 m. more planned by end of 2005 • 1,000 m. by 400 m. mineralized zone with most drill holes having 1/4 oz. to 1/2 oz. intersections • Infill drilling to define continuity of the zone • Winter 2005: 15,000 m. of drilling on and adjacent to the
Slide 24: Detour Mine Property 100% Controlled
Detour Mine Property 100% Controlled • 1,587,000 oz. of gold in historical estimate prepared by Placer Dome • 1,700,000 oz. of gold produced • 10,000 m. of drilling by Pelangio in 2004 • 15,000 m. of drilling by Pelangio in 2005
Slide 25: Detour Lake En-Echelon Gold Deposits
Detour Lake En-Echelon Gold Deposits
Slide 26: Detour Mine Property History
Detour Mine Property History • Past production of 1,700,000 ounces • Historical estimate prepared by Placer Dome: 521,965 ounces measured and indicated; 1,065,300 ounces inferred. • Total gold mined and historically estimated on the mine property: 3,287,000 ounces.
Slide 27: New Gold Discovery: North Walter Lake
New Gold Discovery: North Walter Lake • Pelangio exploration strategy results in first successful discovery at Detour Lake since 1996 • Similar to M Zone • Winter drilling programme of 2,500 m. to continue definition of new discovery • Holes planned on 40 m. step-outs; contingency for continued dril
Slide 28: North Walter Lake Drill Plan
North Walter Lake Drill Plan FE PLG = VALUE / 050 464-001 17000 mE ? Detour Mine Road e | | eo I 031 (049 5a | 048 040 | 041 043 030/ - I } 047 "042 2 I 3 | . i 8 ~L ; 045 048 North Walter Lake Zone Diamond Drilling Plan ~~ 17200 mE 051 Oo 21200 mN 21100 mN 21000 mN
Slide 29: North Walter Lake Drill Results
North Walter Lake Drill Results Hole No. Section From To Metres g/t Au Feet oz./ton Au PM 030 16900 E 111.36 114.00 2.64 9.568 8.66 0.279 includes 111.36 112.00 0.64 36.8 2.10 1.073 PM 032 16900 E 110.00 117.00 7.00 2.447 22.97 0.071 includes 111.00 112.00 1.00 13.15 3.28 0.384 PM 040 16940 E 109.54
Slide 30: North Walter Lake Zone
North Walter Lake Zone • 800 m. strike potential on Detour Mine property; zone similar to M Zone. • Potential 2 km. extension on Block A • 13 holes drilled to date • Results pending in 5 holes • Programme 2 in 2005: 2,300 metres • Programme 3 anticipated in 2005
Slide 31: Opening up the Mine Camp
Opening up the Mine Camp 20 line miles of IP on the western portion of Detour Lake IP and mag surveys Area of mobile metal ion geochemistry and geophysical & geological compilation and re-evaluation Shaded area is approximately 80 square miles
Slide 32: 2005 Drilling Programme
2005 Drilling Programme • Pelangio is targeting 10 areas • Undertaking 15,000 m. of drilling • Scoping study drilling • Exploration and follow-up drilling on gold zones
Slide 33: Detour Lake Main Mine Horizon Flexures and Associated Gold Zones
Detour Lake Main Mine Horizon Flexures and Associated Gold Zones Areas of Work
Slide 34: Birch Lake Property in the Red Lake Gold Camp
Birch Lake Property in the Red Lake Gold Camp • Pelangio will retain a 40% interest • 4 drill holes totaling 1,103 metres • 3 best results: – 6.70 oz. Au/ton over 8.04 feet – 3.38 oz. Au/ton over 9.50 feet – 3.07 oz. Au/ton over 6.56 feet • 6 hole (2,500 m.) winter drill programme underway
Slide 35: Birch-uchi Greenstone Belt
Birch-uchi Greenstone Belt Pr) PLG = VALUE =. BIRCH-UCHI GREENSTONE BELT Red Lake - Northwestern Ontario
Slide 36: Birch Lake Drilling
Birch Lake Drilling r PLG = VALUE
Slide 37: Birch Lake Longitudinal Section
Birch Lake Longitudinal Section
Slide 38: Birch Lake Cross Section
Birch Lake Cross Section re PLG = VALUE pe: bisa ial tii
Slide 39: Birch Lake Property: High Grade Core
Birch Lake Property: High Grade Core
Slide 40: Birch Lake Property
Birch Lake Property bv 6 ’} Gold Zones 0 500m > _ » = Birch Lake P — > = Johnson Island — 2 = i> High Grade KN Ss d . it Birch Lake Keigat Island irch La Korat Lake Staked LEGEND & ss *- Mafic & Intermediate Volcanics ELE - lm Felsic Volcanics ‘ ~ ae Sediment a % mmm Felsic Intrusive we mmm Mafic In
Slide 41: Simon Copper Property
Simon Copper Property Current area of exploration drilling
Slide 42: Simon Copper Information
Simon Copper Information • Property (3,680 acres) located approximately 40 km. northeast of Bancroft, Ontario • Metamorphosed copper zinc volcanogenic massive sulphide target • Pre 43-101 historical resource (253,000 tons @ 1.09% Cu) outlined by Noranda and Young Davidson in the early 1960s to a ver
Slide 43: Simon Copper Property Zones
Simon Copper Property Zones • Recent drilling has now extended known mineralization approximately 100 m. along strike and 100 m. below the Simon Deposit • 3,000 m. Phase 3 drilling programme is planned for 2005
Slide 44: Simon Copper Property Collar Location Map
Simon Copper Property Collar Location Map
Slide 45: Simon Copper Drill Highlights
Simon Copper Drill Highlights • Confirmed significant zinc and copper mineralization in South Simon Copper Zone (SCS). Best intersection assayed 1.11% Cu and 2.83% Zn over 3.23 m. (includes high grade section assaying 2.78% Cu and 5.07% Zn over 1.24 m.) • Confirmed more than one mineralized zone wit
Slide 46: Bristol Gold Properties
Bristol Gold Properties 458000 459000 460000 Original Holmer y oe SF 5360000 u Lake Shore’s . Hel Holmer Sopot a 5359000 1:15,000 NADB3 Zone 17| 5358000 ( Ls ——__— i PLG = VALUE
Slide 47: Poirier Property Aerial View
Poirier Property Aerial View
Slide 48: Poirier Property
Poirier Property • Located within the Porcupine Camp which has produced over 65 million oz. of gold • Along strike and contiguous with Lake Shore Gold’s Holmer deposit which recently announced a resource of 724,000 oz. of gold, continuing exploration, and preliminary economic studies • Approximately
Slide 49: Fast Facts 2005
Fast Facts 2005 Cash on hand, January 2005: $6,000,000 Exploration Expenditures on Pelangio Properties in 2005 Funded by Pelangio Funded by Others Total $2,000,000 $3,000,000 $5,000,000 20,000 metres 30,000 metres 50,000 metres
Slide 50: Pelangio = Value
Pelangio = Value • 1.76 million oz.: Placer Dome estimate of contained gold • 1,000 m. by 400 m. mineralized zone with drill holes having 1/4 to 1/2 oz. Au/t intersections on the M Zone structure: 50% earn-in by Trade Winds • North Walter Lake: new high grade zone with 800 m. strike length potential
Slide 51: Goals for 2005
Goals for 2005 • Scoping Study: due April 2005 • 15,000 m. drilling on Detour Mine property, including North Walter Lake Zone: $1.5-2 million • 30,000 m. drilling on Block A: $3 million • Expand IP coverage at Detour Lake • Continue drilling at Birch Lake
Slide 52: Corporate Strategy
Corporate Strategy • Exploration drilling to discover new Detour Lake gold zones (eg: North Walter Lake) • Scoping study on known Detour Lake zones – Increase confidence in the resource; 43-101 compliance. – Identify additional drill targets for exploration, and areas for resource upgrading and defi
Slide 53: Proving the Potential
Proving the Potential • The potential: 80 sq. mi. with >100 IP anomalies • One mined gold zone - Detour Mine Zone – 1.70 million oz. gold produced – 1.76 million oz. historical estimate by Placer Dome – 3.46 million oz. total; will grow with exploration. • Discovered new gold zone - North Walter Lak
Slide 54: Imagine 80 square miles in Timmins 1905 … perhaps Detour Lake 2005
Imagine 80 square miles in Timmins 1905 … perhaps Detour Lake 2005
Pelangio Exploration — Investor Presentation (March 2005) on 6ix