Perpetua Resources Corp. · TSX:PPTA
Perpetua Resources — Investor Presentation (March 2021)
70 slides from Perpetua Resources's investor presentation, Mar 26, 2021
Slide 1: Perpetua Resources
March 2021 TSX:PPTA NASDAQ:PPTA PERPETUA RESOURCES
Slide 2: Our Team
OUR TEAM in i
Slide 3: New Perspectives
NEW PERSPECTIVES ENVIRONMENT SOCIAL RESPONSIBILITY of senior staff are female Laurel Sayer named GOOD GOVERNANCE (ESG) CEO of Perpetua Resources Corp & Perpetua Resources Idaho Perpetua Resources is changing the face of mining. Cindy Kneen, Camp Laurel Sayer, CEO ✓ Adopted ESG policy in 2019 Supervi
Slide 4: The Perpetua Way
THE PERPETUA WAY We are driven by the belief that building a strong and successful business for our employees, partners and shareholders starts with doing business the right way. For a modern mining company, this means we designed a mining project that restores the environment, creates opportunity a
Slide 5: Stibnite, Idaho
STIBNITE, IDAHO 5
Slide 6: Stibnite Gold Project
STIBNITE GOLD PROJECT Coeur d’Alene Stibnite Gold Project Perpetua Resources Au-Sb 6
Slide 7: Historical Stibnite Mining District
1890s The Thunder Mountain gold rush brings mining to the area 1900-1930 The town of Stibnite is established HISTORICAL STIBNITE 1938 Mining at Yellow Pine pit stops salmon migration upstream 1941-1950 The town of Stibnite booms when antimony & tungsten were declared critical & strategic minerals MI
Slide 8: Historical newspaper clipping on tungsten and antimony
CUT AL DY UNE AMOTICaS, It was Germany's use of high-velocity, armor-piercing projectiles with the tungsten carbide core that almost made the north African campaign a success- ful one, Tungsten production in China began in 1914, and it has been the largest tungst—— 704 cco ten the ee Japan disruy In
Slide 9: Historical Legacy
YELLOW PINE PIT HISTORICAL The East Fork of the South Fork dumps into a legacy mine pit. Currently, ~80 feet of sediment has collected at the bottom LEGACY FISH PASSAGE Fish migration After 100+ years of mining activity, many environmental legacies remain. is blocked by the Yellow TAILINGS Pine pit
Slide 10: The Stibnite Gold Project
THE STIBNITE GOLD PROJECT We can take an area abandoned after 100 years of mining activity and use a sustainable approach to restore the environment and develop a modern mining project with critical mineral production.
Slide 11: The Plan of Restoration & Operations
PLANof OF 6 YEARS Study and Engineering 11 RESTORATIO 4 YEARS The Plan of of Regulatory Review under NEPA (National Environmental Policy Act) N & 75-DAY Restoration & OPERATIONS Public Comment Period for the Draft Environmental Impact Statement (DEIS) Operations (PRO) PLAN DESIGNED TO: (PRO) • Provi
Slide 12: Our Approach
1. Being Stewards of the Environment is Good Business Prioritize stewardship and restoration of the land, wildlife and water. 2. Minimize our Impact Design and construct the project to minimize impact on wildlife, habitat, OUR and community. Including keeping the project footprint limited to previou
Slide 13: Restoration of Brownfields Site
RESTORATION OF BROWNFIELDS SITE SEDIMENTATION METAL LEACHING BLOCKED FISH MIGRATION Early repair of the largest Pick up, reprocess, reuse and Re-establish fish migration and provide source of sedimentation safely store 10.5M tons of permanent river restoration tailings and spent ore 13
Slide 14: Legacy Blowout Creek
LEGACY BLOWOUT Water reservoir failed in 1965. CREEK The failed dam caused the most significant source of sediment in the watershed. It degrades water quality and fish habitat and diminishes wetlands functionality. 14
Slide 15: Blowout Creek Restoration
BLOWOUT CREEK RESTORATION CURRENT INTERMEDIATE RESTORATION 15
Slide 16: Legacy Spent Ore
LEGACY SPENT ORE Tailings (beige) were covered with spent heap leach ore (brown) after being deposited, unlined, in the Meadow Creek DISPOSAL AREA Valley. Revegetation attempts have been made; however, legacy materials continue to degrade water quality and leach metals into the surface water and gro
Slide 17: Remove & Reprocess Legacy Tailings
REMOVE & REPROCESS LEGACY TAILINGS CURRENT RESTORATION Restoration follows construction and operation of TSF and Hangar Flats DRSF within portions of the SODA footprint. 17
Slide 18: Legacy Yellow Pine Pit
LEGACY YELLOW PINE PIT During the World War II era, the East Fork of the South Fork of the Salmon River (EFSFSR) was diverted to facilitate mining of the Yellow Pine pit, cutting off fish passage. The East Fork of the South Fork of the Salmon River flows directly into the Yellow Pine pit, blocking f
Slide 19: Yellow Pine Pit Restoration
YELLOW PINE PIT RESTORATION CURRENT INTERMEDIATE Closure RESTORATION The East Fork of the South Fork of the A 0.9-mile tunnel fishway will allow fish to Backfilling the Yellow Pine pit will Salmon River flows into the abandoned swim back to historical spawning areas allow reestablishment of a natura
Slide 20: Interim Fish Passage
INTERIM FISH PASSAGE EFSFSR Fishway Details – 2’ high fish weir within 4’ weir – 5’ divider wall – Weir anchored to bedrock/tunnel lining – Divider wall similarly anchored – Weir spacing 22’ @ 4.5% and 66’ @ 1.5% 20
Slide 21: Backfill and Restoration Begins in Year 7
BACKFILL AND RESTORATION BEGINS IN YR 7 21 21
Slide 22: Resources for Restoration & Economic Renewal
RESOURCES FOR RESTORATION & ECONOMIC RENEWAL 22
Slide 23: Economy and Environment
ECONOMY ENVIRONMENT Invest $1 billion in Idaho Reprocess historical tailings Provide well-paid jobs to Idahoans Restore fish passage Grow economic opportunity with an Repair historically impacted waterways estimated $43 million in direct annual Remediate areas contributing to water payroll during op
Slide 24: A Unique American Opportunity
A UNIQUE AMERICAN OPPORTUNITY ✓ Redeveloping one of largest, highest grade and lowest cost gold projects in the U.S.* ✓ Superior project economics with ~15 year reserve life and <3 year payback period* ✓ Re-establishing U.S. critical mineral production ✓ Located in stable mining jurisdiction with Id
Slide 25: Gold and Antimony
GOLD ANTIMONY 4.8 MILLION OUNCES OF GOLD (Reserve) 100+ MILLION POUNDS OF ANTIMONY Total resource ~6 million ounces. Gold is used in Gold is Every cell space vehicles, biocompatible phone has 50 satellites & used medical cents of gold. and space suits. technology. The Stibnite Gold Project would be
Slide 26: A Green Economy Starts at the Source
A GREEN ECONOMY STARTS AT THE SOURCE ANTIMONY (Sb): A “critical mineral” supporting the transition to a green economy and is vital to national security. “A low-carbon future will be very mineral intensive Antimony is key to liquid metal battery storage because clean energy technologies need more sol
Slide 27: Antimony: Critical Mineral
ANTIMONY: World Antimony 2020 Production (USGS) CRITICAL MINERAL Turkey 1% Australia Bolivia 1% 2% Burma 4% NECESSARY FOR AMERICA’S NATIONAL SECURITY AND ECONOMIC INDEPENDANCE Tajikistan 19% SUPPLY RISK 1. China and Russia dominate the world antimony supply (>70%) 2. No domestic antimony production
Slide 28: Securing America's Critical Supply Chains
SECURING AMERICA’S CRITICAL SUPPLY CHAINS President Biden’s recent Executive Order requires supply chain risks and policy recommendations be brought forward in four key areas: Semiconductor manufacturing ANTIMONY IS A KEY MINERAL High-capacity batteries IN THREE OUT OF THE FOUR AREAS Critical minera
Slide 29: $1+ Billion Investment in Idaho
$1+ BILLION INVESTMENT IN IDAHO $1+ billion total construction and capital investment 37 miles of road: new and upgraded roads including 5 bridges 72 miles of transmission line: new and upgraded 138 kV power line and 5 new substations 57,000 cubic yards concrete 5,580 tons of rebar 7,730 sq ft of ma
Slide 30: Project Footprint
PROJECT FOOTPRINT 30
Slide 31: Minimize Footprint
MINIMIZE FOOTPRINT 45% of the proposed project is on existing legacy disturbance YELLOW PINE PIT WEST END PIT (existing + remining) (existing + remining) FIDDLE DEVELOPMENT ROCK STORAGE FACILITY (existing disturbance + new disturbance) HANGAR FLATS PIT (existing tailings and old smelter site + new m
Slide 32: Limit Footprint Through Restoration
LIMIT FOOTPRINT THROUGH RESTORATION stable, static, little to naturally dynamic, no change; may not deformable, resilient; mimic natural mimics natural conditions conditions Perpetua Resources has committed to a RESTORATION standard wherever possible. 32 Meadow Creek, ID
Slide 33: Restoration Upfront and Concurrent
RESTORATION UPFRONT AND CONCURRENT Period Construction Operations Closure ACTIVITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 EFSFSR Diversion (tunnel) 2 On-Site Mine Remove spent ore in Meadow Creek valley 2 Features/Activities Legacy material reprocessing 4 Remove legacy development rock a
Slide 34: Looking to the Skies
LOOKING TO THE SKIES CREATING RESPONSIBLE NIGHT LIGHTING AT THE STIBNITE GOLD PROJECT TO MITIGATE LIGHT POLLUTION. Dark Skies Report, 2019: www.perpetuaresources.com 34
Slide 35: Ore Processing
ORE PROCESSING ✓ Ore processing inside a facility allows for additional control and reduced exposure. ✓ In accordance with the International Cyanide Management Institute, tailings will be neutralized before leaving the ore processing facility to ~10ppm cyanide. * Based on the 2020 Feasibility Study
Slide 36: Tailings Management
TAILINGS MANAGEMENT Designed for long term safety – Factor of safety greatly exceeds Idaho’s 1.5 requirement – Buttressed by 65 million tons of development – 90% contained by mountains rock, which substantially increases the overall – Downslope (downstream) method of construction for factor of safet
Slide 37: Tailings Safety 101
TAILINGS SAFETY 101 ✓ Downstream constructed Best Practice For Tailings Facility ✓ Made with compacted rockfill Design ✓ Fully lined No known failures for facilities with ✓ Reviewed by an independent expert these design characteristics ✓ Buttressed to double the factor of safety ✓ Designed and regul
Slide 38: Limit Footprint by Using Legacy Areas
LIMIT FOOTPRINT BY USING LEGACY AREAS Tailings Buttress Tailings dam Historic spent ore and tailings 38
Slide 39: Infrastructure
INFRASTRUCTURE 39
Slide 40: Employee Housing
EMPLOYEE HOUSING ONSITE HOUSEING 1. Two-week on/of work cycle 2. Bus/van service minimizes daily commute time to mine 3. Decreases road traffic and dust, lower accident risk & lower greenhouse gas emissions Two-week on/of work cycle 4. Accommodation for ~250+ people B u s /To Click v a Edit n s eMas
Slide 41: Stibnite Gold Logistics Facilities
STIBNITE GOLD LOGISTICS FACILITIES Administrative and Transportation Facility I N - TO WN J O B S Accounting & Human Resource Purchasing & Accounting Administration & Management Warehousing & Storage Laboratory R E D UC E T R A FFI C Use as point of transportation for staff and site load consolidati
Slide 42: Site Access
SITE ACCESS Prioritize safety, avoid water ways CURRENT ROUTE Travel adjacent to larger waterways via Johnson Creek or South Fork Road to Yellow Pine and Stibnite. STUDIES EVALUATED • Proximity to fish-bearing waterways • Impact on residents and recreationalists • Safety risks to employees • Cost to
Slide 43: Transmission Line Upgrade
TRANSMISSION LINE UPGRADE Project will upgrade 73 miles of transmission line at company’s expense INCREASED POWER AND RELIABILITY • Upgrade current 69-kV to 138-kV • New and upgraded substations • Costs will be incurred by Company, not Idaho Power rate payers. • We proposed changes to the route to r
Slide 44: Water Quality
WATER QUALITY 44
Slide 45: Acid Rock Drainage?
ACID ROCK DRAINAGE? WHAT IS ACID ROCK DRAINAGE? Acid rock drainage is a naturally occurring process of sulfide minerals oxidizing, combining with water and creating acid. WHAT ABOUT AT STIBNITE? The substantial majority of rocks we will mine have no potential for generating acid. While some rocks at
Slide 46: Water Quality Today
WATER QUALITY TODAY WAT E R Q U A L I T Y M O N I T O R I N G P R O G R A M • Baseline groundwater and surface water monitoring program initiated in 2011 and is ongoing • Quarterly sampling of streams, natural seeps, adit/dump seeps, and groundwater monitoring wells – over 40 surface sites and 30 we
Slide 47: Geochemical Modeling
GEOCHEMICAL MODELING Proposed action site-wide water chemistry modeling (SWWC) MINING IMPACTS + RESTORATION ACTIVITIES = NET IMPROVEMENT IN SURFACE WATER QUALITY Water quality impacts Water quality improvement from various mine facilities from reclamation activities Operational practices and and wat
Slide 48: Commitment to Early Restoration
SOLUTIONS START NOW COMMITTMENT TO PATH FOR ABANDONED MINE RESTORATION EARLY RESTORATION January 15, 2021: Perpetua signed ASAOC with the ADMINISTRATIVE SETTLEMENT AGREEMENT AND ORDER ON Environmental Protection Agency & the U.S. Forest CONSENT (ASAOC) Service with concurrence of the U.S. Department
Slide 49: Idaho Opportunity
IDAHO OPPORTUNITY 49
Slide 50: Idaho Opportunity
IDAHO OPPORTUNITY CO M M I T M E N T TO H I R E LO CA L PROVIDE 500+ DIRECT JOBS 50
Slide 51: Idaho Jobs
IDAHO JOBS IN IDAHO, ~2 INDIRECT JOBS CREATED FOR EVERY DIRECT JOB IN MINING. ~ 2-3-year construction period* Approx. 600-700 direct jobs in Idaho Average wage: $70,000 Average annual payroll ~ $34 million ~ 12-15 year operating life* Approx. 500-600 direct jobs in Idaho* Average wage: $80,000* Aver
Slide 52: Economic Opportunity
ECONOMIC OPPORTUNITY $78M spent in Idaho 2014-2020 DIRECT BENEFITS* • $232 million in average annual expenditures • $42 million in annual payroll (operations) • $329 million in federal corporate income taxes • $86 million in state and local taxes and mine license fees • $3.8 million in local taxes f
Slide 53: Community supporters
VILLAGE OF YELLOW PINE + CASCADE + DONNELLY + NEW MEADOWS + RIGGINS + COUNCIL + ADAMS COUNTY + IDAHO COUNTY 53
Slide 54: Community supporters
VILLAGE OF YELLOW PINE + CASCADE + DONNELLY + NEW MEADOWS + RIGGINS + COUNCIL + ADAMS COUNTY + IDAHO COUNTY 54
Slide 55: Why Today?
WHY ue DAY? bey pee
Slide 56: Bring Mining Home
“…renewables, minus storage, is not the solution. Because the way the grid operates, supply must be BRING MINING HOME. in perfect balance with demand A responsible future starts at the everywhere at all times…”* source. -Donald R Sadoway, Professor of Material Chemistry, MIT “A low-carbon future wil
Slide 57: Permitting
PERMITTING 5+ years 11 agencies 50+ permits >$10s M illions of Regulatory Review Local, State and Federal for Environmental, Safety set aside for Reclamation Anticipated Agencies and Regulatory Standards 57
Slide 58: Financial Assurance
FINANCIAL ASSURANCE MAKING SURE FUNDING FOR RESTORATION IS AVAILABLE INCASE OF DEFAULT TRUE COST: Projects must now set aside funding for reclamation calculated based on the actual cost of reclamation and closure. The calculation includes on site-specific conditions and third-party contractor costs,
Slide 59: Robust Permitting
ROBUST PERMITTING National Environmental Policy Act (NEPA) ENVIRONMENTAL IMPACT STATEMENT FEDERAL STATE COUNTY • Initial Plan of Operations • IDEQ - Air Permit to Construct • Planning & Zoning • NEPA Environmental Impact Analysis • IDEQ - Cyanidation Permit • Local Health District Permits • IDEQ - I
Slide 60: Permitting – Next Steps
EIS: Environmental Impact Statement PERMITTING – NEXT STEPS DEIS: Draft Environmental Impact Statement FEIS: Final Environmental Impact Statement NOA: Notice of Availability PRO: Plan of Restoration and Operations ROD: Record of Decision NOA for EIS Project DEIS In Federal Pre-work Alternatives & Su
Slide 61: Project Milestones
PROJECT MILESTONES Perpetua submitted our Modified PRO (ModPRO) to the U.S. Forest Service in 2019. REGULATORS: PERPETUA: of additional 4 yearsof regulatory 6 years of public input, data review by local, state environmental gathering and and federal regulators study and environmental under the Natio
Slide 62: Next Steps
NEXT STEPS 2020 (Q3) 2020 (Q4) 2021 2022 2022/23 2026 ~2040 ~2050 Draft Feasibility Final EIS Ancillary Construction, Begin Commercial Begin Post-Op Most Final Environmental Study (FS) Record Of Permits + Begin Mitigation + Operations + Restoration Reclamation Impact Released* Decision Financing Leg
Slide 63: Moving Forward
MOVING FORWARD Recent Accomplishments: Upcoming Milestones: ✓ Draft Environmental Impact Statement (Aug ❑ Final Environmental Impact Statement & Draft 2020) Record of Decision (ROD) (2021)** ✓ Successful comment period (Aug-Oct 2020) ❑ Final ROD (2021)** ✓ Feasibility Study Released (Dec 2020) ❑ Anc
Slide 64: Alternative 2
ALTERNATIVE 2 7 Through the study and analysis within the NEPA process, 1 the Company proposed refinements to our original plan to Our Proposed Action improve the environmental outcomes. These changes were reflected in Alternative 2 in the Draft Environmental Impact Statement (DEIS). ModPRO SUBMITTE
Slide 65: Draft Environmental Impact Statement (DEIS)
Draft ENVIRONMENTAL IMPACT STATEMENT (DEIS) Removing historical Mitigation and Restoration Removing legacy materials Concurrent Restoration barriers to fish migration will address impacts. will improve water quality. reduces risks. will assist the population. Long-term access to historically Propose
Slide 66: NEPA at Work: Public Feedback and Refinement
NEPA AT WORK: PUBLIC FEEDBACK AND REFINEMENT CREATE THE BEST PLAN. T R A N S PA R E N C Y : 7 5 D a y P u b l i c C o m m e n t P e r i o d REFINEMENT: Agencies Responding to the Public Now, the U.S. Forest Service and cooperating agencies will: • Review all comments • Respond to the public • Incorp
Slide 67: Improvements
IMPROVEMENTS Add Stibnite Lake (YPP) ✓ Fiddle DRSF eliminated ✓ Add Stibnite Lake on YPP backfill Eliminate Fiddle Added measures to ✓ Enhanced riparian planting prescription DRSF, add GMS reduce stream temp ✓ Smaller Hangar Flats pit (HFP), complete backfill of HFP No RIBs ✓ No rapid infiltration b
Slide 68: Regulatory Information
REGULATORY INFORMATION The FS was compiled by M3 Engineering & Technology Corporation (“M3”) in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) under the direction of independent qualified persons (as defined in NI 43-101) (“Independent QPs”).
Slide 69: Forward Looking Statements
FORWARD LOOKING STATEMENTS Information and statement contained in this presentation that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the U
Slide 70: Thank You
THANK YOU. www.perpetuaresources.com 70
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