Surge Copper Corp. · TSXV:SURG
Surge Copper — Investor Presentation (February 2021)
21 slides from Surge Copper's investor presentation, February 2021
Slide 1: Advanced Copper Deposits in Central British Columbia
Advanced Copper Deposits in Central British Columbia TSXV:SURG February 2021 0
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) is being issued by Surge Copper Corp. (the “Company” or “Surge Copper”) for information purposes only. Cautionary Statements Concerning Forward-Looking Statements This Presentation contains "forward-looking information" within the meaning of applicable C
Slide 3: Investment Highlights
Investment Highlights E NTREPRENEURIAL TEAM ADVANCING SIGNIFICANT C U -A U -M O -A G RESOURCE BASE IN C ENTRAL BC Significant Discovery Established Year-Round Experienced Resource Base Potential Mining District Drilling Team • Ootsa: 2.2 Blbs • Target-rich • Located adjacent to • Currently two rigs
Slide 4: Our Assets
Our Assets S URGE CONTROLS A DOMINANT LAND POSITION IN THE H UCKLEBERRY DISTRICT Key Competitive Advantages Berg - Operating Copper Mines - Operating Copper Option to earn 70% - Copper MinesMines on ✓Large resource base Care & Maintenance - Copper Mines on - Population Care & Centres Maintenance ✓Lo
Slide 5: Capitalization
Capitalization A LL EQUITY CAP STRUCTURE | F ULLY FUNDED FOR CURRENT PROGRAM Equity Capitalization Shareholder Breakdown Basic Shares Outstanding 129.2M 16.4% Management & Board Market Cap $55.6M Close Associates Centerra Gold Cash $6.3M 53.1% 19.3% 0.6% Altius Minerals Enterprise Value $49.3M 5.4%
Slide 6: Significant Grade Advantage
Significant Grade Advantage O OTSA & B ERG GRADES COMPARE WELL TO OPEN - PIT OPERATIONS IN BC Copper Gold Moly Silver Operating Advantages Reserve Grade Contribution M&I Resource Grade Contribution Berg 0.70% Operating Copper Mines in BC Ootsa Project (Historical) ✓Excellent infrastructure and gentl
Slide 7: Ootsa Project
Ootsa Project T HREE PORPHYRY COPPER DEPOSITS | T OTAL M&I R ESOURCES OF 224M T @ 0.44% C U E Q 1 Favourable Location – Central B.C. Interior • The deposits at Ootsa are favourably located adjacent to Imperial Metals’ Huckleberry Mine & Mill complex • The project area has gentle rolling topography,
Slide 8: Ootsa Exploration
Ootsa Exploration M ULTIPLE PORPHYRY TRENDS | A MENABLE TO EFFECTIVE GEOPHYSICAL TARGET GENERATION Target Rich Area • Two 7km porphyry trends defined by chargeability and alteration − Ox-Huckleberry Trend (Cu-Mo rich, extends a further 6km into Huckleberry) − Seel Trend (Cu-Au rich) • Deposits respo
Slide 9: Current Program
Current Program O NGOING TWO - RIG 15,000 M DRILL PROGRAM | T ESTING EXPANSIONS TO E AST & W EST S EEL , PLUS NEW E AST T ARGET High Potential Targets Adjacent to Resource Envelopes • Large, high-resolution ground-based IP and MT survey conducted in 2020 • Objectives: − Targeting data for fault-offs
Slide 10: East & West Seel Deposits
East & West Seel Deposits O PEN FOR EXPANSION | P OTENTIAL TO COMBINE INTO SINGLE PIT Focused on Expansion • Additional drilling outside current resource area has potential to significantly increase tonnage • Target is large pit that captures the deeper high-grade at West Seel • Potential to expand
Slide 11: Expanding West Seel
Expanding West Seel L ARGE , CONTINUOUS ZONE | M INERALIZATION FROM TOP OF BEDROCK | U NDERSCORES POTENTIAL TO EXPAND Recent Results S20-219 • Recent drilling pushed mineralization 228m down plunge to the Longest continuously mineralized hole at Ootsa & best grade- southwest thickness − Total assay
Slide 12: Ootsa 2016 PEA
Ootsa 2016 PEA P ROOF OF CONCEPT | P OTENTIAL FOR HIGH RETURNS LEVERAGING DISTRICT INFRASTRUCTURE | S IGNIFICANT UPSIDE POTENTIAL Overview NPV C$mm $186 IRR % 81% • In 2016, Surge conducted a Preliminary Economic Assessment1 to Payback Mine Life years years 1.0 12 outline the concept of a low-capita
Slide 13: Berg Project
Berg Project A DVANCED EXPLORATION PROJECT | H ISTORICAL M&I R ESOURCES OF 397M T @ 0.45% C U E Q 1 | L ARGE LAND PACKAGE High Potential Exploration in Close Proximity to Ootsa Project Looking East Huckleberry Mine & Mill Complex Ootsa Deposits - 20ktpd Mill Capacity Combined M&I: 224.2 Mt @ 0.44% C
Slide 14: Berg – Deposit with High-Grade Potential
Berg – Deposit with High-Grade Potential A UNIQUE BC PORPHYRY DEPOSIT | L ARGE PROSPECTIVE LAND PACKAGE CONTIGUOUS WITH O OTSA Horizontal Section in Plan Highlights • Near-surface & high-grade: potentially amenable to low strip • Notable compared to other BC porphyries due to the significant superge
Slide 15: Berg Exploration
Berg Exploration L ARGE DEPOSIT | H IGH - GRADE ZONES | N UMEROUS REGIONAL TARGETS Exploration Focus • Surge’s initial work program to focus on: − Confirming and updating the resource − Better defining the higher grade zones − Upgrading infrastructure to allow year-round exploration − Additional met
Slide 16: Surge Strategy
Surge Strategy D EMONSTRATING THE ECONOMIC POTENTIAL OF THE O OTSA & B ERG PROJECTS Near Term Priorities ✓Aggressive exploration to expand West Seel and test other high priority targets ✓Reactivate exploration activity at Berg ✓Update resources at Ootsa & Berg ✓Initiate economic study on combined Oo
Slide 17: Appendices
Appendices 16
Slide 18: Management & Board
Management & Board H IGHLY EXPERIENCED TEAM | T RACK RECORD OF SUCCESS IN DISCOVERY , CAPITAL RAISING , AND M&A Management Team Board of Directors Leif Nilsson | Chief Executive Officer Pat Glazier | Board Chair Mining industry professional and former investment banker with15-year track record. Exte
Slide 19: Berg Option Agreement
Berg Option Agreement S UMMARY OF KEY TERMS • Definitive Option Agreement with Thompson Creek Metals Company Inc., a subsidiary of Centerra Gold Inc. Option Agreement • Ability to acquire a 70% interest in the Berg property • Five year earn-in period • Initial grant to Centerra of $4 million in Surg
Slide 20: Resources
Resources Ootsa Mineral Resources (2016)1 Grade Gross Contained Metal Pit-Constrained Using $8.50/t NSR Cut-off Tonnage Copper Gold Moly Silver CuEq Copper Gold Moly Silver CuEq (Mt) (% Cu) (g/t Au) (% Mo) (g/t Ag) (% CuEq) (Mlbs Cu) (Moz Au) (Mlbs Mo) (Moz Ag) (Mlbs CuEq) Ox Deposit Measured 30.5 0
Slide 21: End Notes
End Notes ✦ Except where specified, all occurences of copper equivalent (“CuEq”) are calculated on a gross in-situ basis using the following pricing assumptions for copper equivalency: $3.00/lb Cu, $1,700/oz Au, $10/lb Mo, $22/oz Ag. ✧ Mineral resources are not mineral reserves and by definition do