Titan Mining Corp. · TSX:TI
Titan Mining — BMO Capital Markets 2019 Global Metals & Mining Conference
39 slides from Titan Mining's conference presentation, February 2019
Slide 1: Focus on Exploration and Development in a Prolific Zinc District
FOCUS ON EXPLORATION AND DEVELOPMENT IN A PROLIFIC ZINC DISTRICT TSX: TI BMO CAPITAL MARKETS 2019 GLOBAL METALS & MINING CONFERENCE FEBRUARY 24-27, 2019
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation contains "forward-looking information" within the meaning of Canadian political and regulatory stability; the receipt of governmental and third party approvals, securities laws. In some cases, forward-looking information can be identified by the use lice
Slide 3: Overview
Overview • 100%-owned Empire State Mine (“ESM”) in New York State • Part of the Augusta Group – strong track record in exploration and development • Zinc production in historic mining district • Focus on exploration and development; driven by best-in-class leadership Empire State Mine, New York Toro
Slide 4: Investment Highlights
Investment Highlights Best-in-Class • Demonstrated track record in exploration and development. Executive Chair, Richard Warke, and Leadership the Augusta Group have generated extraordinary shareholder value • Award-winning. CEO Donald Taylor is the recipient of PDAC’s 2018 Thayer Lindsley Award for
Slide 5: Our Strategy
Our Strategy Mission: To deliver extraordinary shareholder value through exploration, development and operational excellence BEST-IN-CLASS LEADERSHIP OPERATIONAL EXCELLENCE • Leverage experienced • Deliver on expectations management and directors • Innovate to capture efficiencies • Remain aligned w
Slide 6: The Right People
The Right People • Consistent record • 25+ years of mineral of creating exploration experience shareholder value • Discovered world-class at Augusta Group Taylor sulphide deposit – winner of PDAC’s 2018 Richard Warke Donald Taylor Thayer Lindsley Award Executive Chairman CEO • 25+ years of public •
Slide 7: The Augusta Group – Track Record in Exploration and Development
The Augusta Group – Track Record in Exploration and Development La Bodega gold project (Colombia) Rosemont copper project (Arizona) SOLD in 2011 for ~C$1.6B SOLD in 2014 for ~C$666M 12,960% share price increase 3,300% share price increase Hermosa-Taylor zinc-lead-silver project (Arizona) Castle Moun
Slide 8: Consistently Aligned with Shareholders
Consistently Aligned with Shareholders Share Ownership Management/Directors (50%) Institutional (22%) Retail (28%) Titan Mining Share Price (1) Peer group includes Ascendant Resources, Capstone Mining, Copper Mountain Mining, Ero Copper, Hudbay Minerals, Imperial Metals, Nexa Resources, Sherritt Int
Slide 9: Empire State Mine: Focused on Exploration in a 100-Year-Old Zinc District
Empire State Mine: Focused on Exploration in a 100-Year-Old Zinc District • Producing zinc concentrate • Local employer, benefiting St. Lawrence County in northern New York • Long-term zinc concentrate offtake agreement with Glencore – transportation within North America • Historic production – 44M
Slide 10: Near-Mine and District Exploration
Near-Mine and District Exploration • Production supported by current mineral resources with potential for near-mine resource additions • Current source is ESM #4 mine – multiple zones; Mahler and Mud Pond zones in production, New Fold zone in development • New development frontier in #2 mine – #2D z
Slide 11: Excellence in Exploration
Excellence in Exploration Mahler Plan view of ESM #4 mine and #2D zone Mud Pond New Fold NE Fowler ESM #4 • #4 mine – drilling potential zone extensions and Mine increasing confidence for mine design • #2D zone1 – major extension of zone mined in Fowler A’ ESM #3 mine (Historic) historic #2 mine; 65
Slide 12: Realizing Mineral Resource Expansion Potential at ESM #4 Mine and #2D Zone
Realizing Mineral Resource Expansion Potential at ESM #4 Mine and #2D Zone • #4 mine – mineralized zones generally plunge to northeast; potential to extend zones up- and down-plunge • #2D zone – More than 2,000 feet of strike length and open down-plunge and laterally; connected by historic infrastru
Slide 13: Major Down-Plunge Extension of #2D Zone (Longitudinal View)
Major Down-Plunge Extension of #2D Zone (Longitudinal View) #4 shaft OPERATIONAL EXCELLENCE 13
Slide 14: #2D Zone – Focus on Near-Term Expansion and Development
#2D Zone – Focus on Near-Term Expansion and Development • Mineralization remains open in several directions • Bulk-minable – area of thicker, high-grade mineralization extends down-plunge and may be associated with a fold hinge • Preliminary engineering design underway OPERATIONAL EXCELLENCE 14
Slide 15: #2D Zone – Longitudinal View Looking Northeast
#2D Zone – Longitudinal View Looking Northeast #4 Shaft (3,800 tpd) #2D Zone 1,500 ft Tramway Existing 2500 Level North Ramp to 2650 Ore and Internal Ramp Waste Pass LEGEND Underground Crusher Existing Infrastructure 0 feet 250 feet 500 feet OPERATIONAL EXCELLENCE 15
Slide 16: #2D Zone – Existing Infrastructure Connected to #4 Shaft
#2D Zone – Existing Infrastructure Connected to #4 Shaft Locomotive and rail cars on 1,500-ft Rehab underway at #2D zone tramway on 2500 level OPERATIONAL EXCELLENCE 16
Slide 17: New Ideas for a Prolific Zinc District
New Ideas for a Prolific Zinc District Exploration targets throughout district • Targeting large, high-grade deposits in the 15 to 30+ Mt range • Multiple targets identified along trend northeast of ESM and south of Hyatt Existing Mine • Target areas exhibit Exploration Target favourable host rocks,
Slide 18: Our Catalyst-Rich Path
Our Catalyst-Rich Path • Refurbishment of existing infrastructure and equipment Recommissioning • Reconditioning and restarting the mobile equipment fleet (Q4 2017) • General rehabilitation of the underground workings First ore skipped • Development of new ramps, drifts and stopes concurrent with
Slide 19: Our Approach to Sustainability
Our Approach to Sustainibility Guiding • Our employees are governed by a commitment to integrity, trust, community involvement as well as Approach environment and social stewardship • Our projects are developed with the goal of delivering long-term mutual economic benefits for employees, communities
Slide 20: Appendix
APPENDIX Dilution control Mineral resources Zinc market Historic mineralized material Analyst coverage write-downs Empire State Mine historic Management, directors and production, ore types and advisors exploration Technical report Qualified Persons
Slide 21: Dilution Control
Dilution Control Rigorous grade control is key • On-shift grade control geologist • Disciplined approach to sourcing incremental zinc mineralization • Implementation of optical ore/waste sorting technology • Tighter stope design APPENDIX 21
Slide 22: Outlook for Zinc Prices Remains Positive
Outlook for Zinc Prices Remains Positive As a pure zinc producer, Titan benefits from elevated zinc prices supported by low inventories Source: LME and U.S. Federal Reserve APPENDIX 22
Slide 23: Zinc Market Balance
Zinc Market Balance Zinc Supply/Demand Forecast (‘000 Tonnes) Source: Wood Mackenzie, Scotiabank GBM estimates – January 14, 2019 APPENDIX 23
Slide 24: Western World Mine Closures vs Forecast New Supply
Western World Mine Closures vs Forecast New Supply Western Mine Closures vs Chinese Growth, New Projects and Mine Restarts (‘000 Tonnes) Note: Analysis is before supply disruption Source: Wood Mackenzie, Scotiabank GBM estimates – January 14, 2019 APPENDIX 24
Slide 25: Zinc Uses
Zinc Uses Global Zinc Consumption Global Zinc Consumption by First Use by End Use Source: Wood Mackenzie and RBC Capital Markets APPENDIX 25
Slide 26: Analyst Coverage
Analyst Coverage Analyst Company Dalton Baretto Canaccord Genuity Shane Nagle National Bank Financial Orest Wowkodaw Scotiabank Daniel Earle TD Securities APPENDIX 26
Slide 27: Empire State Mine: Historic Production
Empire State Mine: Historic Production EMPIRE STATE MINE PIERREPONT MINE #1 MINE Historic #2 Shaft • Discovered 1979 • Zinc showings identified • Ramp to ~700 foot depth 1920s • Opened 1982, closed 2001 • Inclined shaft to 300 foot (flooded) level • Continuous operation • Mined #1 zone at 3-4% Zn •
Slide 28: Empire State Mine – Types of Mineralization
Empire State Mine – Types of Mineralization Primary (parent) mineralization • Conformable lenses (175m x 750m) • Sphalerite with pyrite and minor galena • ~1.0-3.0 Mt @ 11.5-14.5% Zn Remobilized (daughter) mineralization • Cross-cutting, elongate trends (125m x ~2000m) • Sphalerite with minor pyrite
Slide 29: Zinc Production (Metric Tonnes)
History of Exploration Success Plus Potential for Additional Discoveries Many discoveries Long Production History with Numerous made during a Discoveries century of 120000 New (Hyatt) mining West Branch (Hyatt) Sully (Hyatt Area) #2 (1927) #3 (1946) Pierrepont (1979) Edwards (1903) Hyatt (1917) #4 (
Slide 30: First Priority – Mining Historical Data
First Priority – Mining Historical Data Compiling, digitizing and modelling existing data • 100 years of historical exploration ‒ ~800 kilometers of available drill data • Consolidating and assessing exploration data from multiple programs and operators • Previous (re)discoveries based on examinatio
Slide 31: Mineral Resources
Mineral Resources Mineral Resources at Empire State Mine #4 Mine as at January 31, 2018 Measured Indicated Measured & Indicated Inferred Mineralized Zones ‘000 Tons Grade (% Zn) ‘000 Tons Grade (% Zn) ‘000 Tons Grade (% Zn) ‘000 Tons Grade (% Zn) Mud Pond 337.0 10.40% 285.2 10.87% 622.2 10.61% 1,390
Slide 32: Historic Mineralized Material Write-Downs
Historic Mineralized Material Write-Downs(1),(2) Proven Ore Probable Ore Proven Ore and Probable Ore Inferred Ore Zinc Contained Zinc Contained Zinc Contained Zinc Contained Year Area Tons Tons Tons Tons Grade Zinc Grade Zinc Grade Zinc Grade Zinc Balmat (No. 2 1985 824,225 7.11% 58,602 860,620 7.41
Slide 33: Experienced Management
Experienced Management Donald Taylor Purni Parikh Michael McClelland Jacqueline Allison Chief Executive Officer President Chief Financial Officer VP, Investor Relations and Strategic Analysis Donald Taylor has 30 years of Purni Parikh has more than 25 Michael McClelland has over Jacqueline Allison h
Slide 34: Experienced Management, cont’d
Experienced Management, cont’d Scott Burkett Kevin Torpy VP, Exploration VP, Operations Scott Burkett has over 10 Kevin Torpy is a mining years of experience in mineral engineer with over 20 years exploration, ore control, of experience developing geologic modeling, resource underground mines, prima
Slide 35: Directors
Directors Richard Warke John Boehner Lenard Boggio Gregory Clark Executive Chairman Director Director Director Richard Warke is a Vancouver- John Boehner served as the Len Boggio was formerly a Greg Clark has been based mining executive with 53rd Speaker of the United partner of retired since 2013,
Slide 36: Directors, cont’d
Directors, cont’d James Gowans William Mulrow Purni Parikh George Pataki Director Director Director Director James Gowans has more than William Mulrow is a Senior Purni Parikh has more than 25 George E. Pataki is the co- 30 years' experience in Advisor at the Blackstone years of public company found
Slide 37: Directors, cont’d, & Advisor
Directors, cont’d, & Advisor Directors Advisor Donald Taylor Robert Wares R. Stuart Angus Director Director Advisor Donald Taylor has 30 years of Robert Wares is the Executive Stuart Angus is an independent mineral exploration experience Vice President of Exploration business advisor to the mining w
Slide 38: Technical Report Qualified Persons
Technical Report Qualified Persons Qualified Person Company Professional Designation Mike Makarenko JDS Energy & Mining Inc. P.Eng. Matt Moss JDS Energy & Mining Inc. P.Eng. Indi Gopinathan JDS Energy & Mining Inc. P.Eng. Allan Reeves Tuun Consulting Inc. P.Geo. Robert Raponi TR Raponi Consulting Lt
Slide 39: For More Information Contact: Jacqueline Allison
FOR MORE INFORMATION CONTACT: Jacqueline Allison www.titanminingcorp.com Vice President, Investor Relations and Strategic Analysis 416-366-5678 Ext. 205 TSX: TI jallison@titanminingcorp.com
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