K2 Gold Corporation · TSXV:KTO
K2 Gold — Investor Presentation (June 2017)
43 slides from K2 Gold's investor presentation, June 2017
Slide 1: Exploring Yukon's South Klondike Gold District
EXPLORING YUKON’S SOUTH KLONDIKE GOLD DISTRICT KTO:TSX-V INCL. THE ‘WELS PROJECT’ A SIGNIFICANT NEW GRASSROOTS GOLD DISCOVERY June 2017
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT This presentation may contain “forward-looking statements.” These forward-looking statements are made as of the date of the presentation and K2Gold Corporation does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking s
Slide 3: K2 Mission Statement
K2 MISSION STATEMENT ➢ K2 is a junior resource company currently focused on exploring for gold in the Yukon. ➢ The company plans to grow by acquiring further mineral properties in North America by leveraging off the Director’s past successes (e.g. Kaminak, Pediment etc.) and undertaking smart and co
Slide 4: Corporate Structure
CORPORATE STRUCTURE OWNERSHIP RECENT FINANCING PROJECT Oct 2016: LOCATIONS 8M shares @ $0.25 incl. Warrants: 8M $0.35 for 18 32% months (acceleration 48% provision $0.50) 20% Insiders Close Associcates Float PRICE / VOLUME CAPITAL STRUCTURE as at May 30, 2017 Shares I&O 14.5 million Fully Diluted 23
Slide 5: K2 Gold – High Level Summary
K2 GOLD – HIGH LEVEL SUMMARY PROJECTS PEOPLE K2 will explore 4 gold projects in 2017 K2 is directed and managed by experienced and totalling 20,500 ha (205km2) in the recognised people in the mining industry: South Klondike district: Wels, Flume, Directors - John Robins (Chairman), Steve Storck and
Slide 6: Market Capitalization Comparison
MARKET CAPITALIZATION COMPARISON YUKON GOLD EXPLORATION COMPANIES ($CDN MM) Project Name VIT: Dublin Gulch $400.00 GPY: 3 Acres/Brewery Creek $357.84 WRN: Casino Mine $350.00 WGO: Western Yukon expl. ATC: Rackla/Orion $300.00 GSR: Plateau TIG: Freegold Mountain Agnico Eagle $250.00 KTO: Wels, Flume
Slide 7: Mineral Deposits of the Tintina Belt (Alaska – Southern Yukon)
MINERAL DEPOSITS OF THE TINTINA BELT (ALASKA – SOUTHERN YUKON) MINERAL DEPOSITS OF THE TINTINA BELT (ALASKA - SOUTHERN YUKON) The Tintina Gold Belt has had past production of over 30 million ounces and current estimated resources of 39 million ounces Page 7
Slide 8: Recent Yukon Investments
RECENT YUKON INVESTMENTS COMPETITOR ANALYSIS Major/ Barrick/ Goldcorp/ Goldcorp/ Agnico Eagle/ Newmont/ Golden Western Junior ATAC Kaminak Triumph White Gold Goldstrike Predator Copper & Gold K2 Gold Property Rackla/Orion Coffee Freegold All remaining Plateau 3 Casino Wels / Mountain S.Ryan claims A
Slide 9: K2: Snapshot
K2: SNAPSHOT • Share Structure - Very tight with over ~50% of shares held by insiders or people known to the Principals and Management. • Projects – 20,500 Hectares of prospective gold exploration claims in the South Klondike, Yukon – Wels, the company's flagship project, is arguably one of the most
Slide 10: K2Gold Projects
K2GOLD PROJECTS K2 Properties Investments by Majors Other Deposits Page 10
Slide 11: Wels (4,790ha)
WELS (4,790ha) (K2’s Flagship property) LOCATION • 50km east of Beaver Creek • 60km south of Coffee Deposit (Goldcorp) • 180 km south of Dawson city (Air) • 300 km north west of Whitehorse (Air) • 20km east of Snag airstrip (by air), a WWII ~2- 3km long airstrip that can be refurbished and used as a
Slide 12: Wels Location
WELS LOCATION 115410 ar Snag: 115K08 <€GOLD hi15K02 f ; K2 Gold Corp. tS = Wels and Nickel 119K01 —— , Properties a Oo. 25 5 10 Kilometers <€¢GOLD Page 12
Slide 13: Wels Project Overview
WELS PROJECT OVERVIEW • Optioned from a private company in August 2016 • A new gold discovery in a previously unrecognized mineral district 60km south of Goldcorp’s 2.2 Moz ‘Coffee’ deposit • Mineralization is attributed to IRGS (granite intrusive) deposits akin to the >6 million ounce Fort Knox and
Slide 14: Wels Exploration Highlights
WELS EXPLORATION HIGHLIGHTS 2011-2015 • Rock sampling – 28 samples collected including several under a high grade soil profile. ➢ Highest grades: 149.5 g/t (single sample 2012) and 5 further samples at the same location (2013) averaged 5.2 g/t • Trenching (2014) – 104 samples collected in 155m of tr
Slide 15: Wels Summary
WELS SUMMARY Legend Codes ciains oxtine = Foutt Pre-2017 Soil Samples ‘Au (ppb) 2 050 © 51-100 @ 101-500 @ 501-1000 @ 001-5204 Proposed 2017 Soil Samples © ©2017 Proposed Soils Proposed 2017 Soil Sampling Grid Proposed 2017 Drillhole Locations North Ridge AulAs Soil Anomal: °€GOLD 0) 2017 Exploratio
Slide 16: Chronology of the Wels Discovery
CHRONOLOGY OF THE WELS DISCOVERY 2002 2011 REGIONAL PROSPECTING Visited as STAKING & SOIL SAMPLING part of a regional study by Yukon The ground was partially staked by 2 Geological Survey. 1 rock, 10 stream prospectors in March 2011 and then optioned and 21 soil samples taken on the to Gorilla Miner
Slide 17: Chronology of the Wels Discovery
CHRONOLOGY OF THE WELS DISCOVERY 2013 2015 ROCK SAMPLING DRILLING 5 further rock samples taken to confirm the 442m of diamond drilling (5 holes) returned values 2012 program (returned an average of 15.25 including DOH 15-01 0.76 g/t over 97.5m, including g/t Au from 5 samples each >2kg each). 3.1 g/
Slide 18: Aerial View of the Wels Saddle Zone
AERIAL VIEW OF THE WELS SADDLE ZONE View North (Trenches T14-01,02,03,04) NORTH • Rock grab – 149.5 Au g/t (2012, Stroshein ‘discovery’ sample) • Composite rock sample - 15.25 g/t Au (>10kg / 5 samples) • Trench - 8.8 g/t Au over 45m including 9.15 g/t Au over 40.5m • Drilling – 97.5m @ 0.76 g/t Au
Slide 19: Wels Trenching
WELS TRENCHING DETAILED RESULTS – SADDLE ZONE Page 19
Slide 20: Wels Soil Sampling
WELS SOIL SAMPLING CORE EXPLORATION AREA (2012 – 2015) Page 20
Slide 21: Wels Trenching
WELS TRENCHING TRENCHING RESULTS: SADDLE ZONE 2014 Trenching Weighted Average Intervals (g/t Au over m) TRENCH FROM TO INT Au # (m) (m) (m) (g/t) Lithology T-14-01 0.00 19.00 19.00 2.63 Bio granite Includes 0.00 11.00 11.00 4.53 Bio granite Includes 0.00 4.50 4.50 11.00 Bio granite T-14-01 31.00 49.
Slide 22: Wels Trenching and Drilling
WELS TRENCHING AND DRILLING SADDLE ZONE N DDH 17-06,07,08 are proposed drilling in June Soil Geochem – Au 2017 DDH17-07 DH17-07-A2MO° Dip-50 TD 100 Au (ppb) DDH17-08 DH17-08 -A2M180° Dip-50 TD 100 DH17-06 DDH17-06 Page 22
Slide 23: Drilling Results June 2015
5 SHORT HOLES DRILLED DRILLING FROM 2 PLATFORMS 50M APART IN THE RESULTS SADDLE ZONE JUNE 2015 INTUSIVE GRANITOLD HOST ROCK DRILL HOLE FROM TO INT Au NOTES (m) (m) (m) (g/t) TABLE 4. DDH-15-01 0.00 97.5 97.50 0.76 2015 DRILL DDH-15-01 31.5 51.00 19.50 3.11 PROGRAM WEIGHTED INCLUDES 31.5 40.50 9.00 5
Slide 24: Wels Diamond Drilling
WELS DIAMOND DRILLING HISTORICAL AND PROJECTED FOR 2017 442M of drilling from 2 platforms (5 holes) (Diagram shows Cross-section of DDH 01, 02 and 03) DDH 01 – 0 to 97.5 (bottom of hole ) 0.76 g/t Au, incl. 9m @ 5.71 g/t w/ visible gold, 19.5m @ 3.1 g/t Au and 6m @ 2.38 g/t Au Proposed DH17-06 AZM 0
Slide 25: Wels 2017 Work Plan
WELS 2017 WORK PLAN C$540,000 work program •1000m of diamond drilling in the Saddle Zone •Extend the soil grid to the North - South of the Saddle Zone •Prospecting in the general area •Mapping The initial exploration was completed over 4 short campaigns (2011, 2012, 2014, 2015 – total man work days
Slide 26: Flume (4,015 Ha)
FLUME (4,015 Ha) • Optioned by K2 from Commander in March 2017 • Located 70 km NW of the Goldcorp Coffee gold project and 40 km northwest from Kinross’s Golden Saddle project. First staked in 1998 by Phelps Dodge who completed property wide soil sampling, rock sampling and trenching • Ryan Gold comp
Slide 27: Flume
<€-GOLD K2 Gold Corp. Storck and Flume Properties Yukon 255 10 Kilometers Page 27
Slide 28: Flume: Soil Geochemistry
FLUME: SOIL GEOCHEMISTRY Au (ppb) As (ppm) North Target North Target South Target South Target 2 km 2 km Page 28
Slide 29: Flume: Airborne Magnetics
FLUME: AIRBORNE MAGNETICS TMI RTP 1 VD 2 km 2 km Page 29
Slide 30: Flume: South Anomaly
FLUME: SOUTH ANOMALY HISTORICAL DRILLING • 9 core holes (2,307-metre) completed by Ryan Gold in 2012 • Discreet structures with elevated arsenic in the order of 5 to 15 metres of core length are associated with anomalous gold • Drill pattern was not optimum for testing key structures • North Anomaly
Slide 31: Storck Claims (7,340 Ha)
STORCK CLAIMS (7,340 Ha) Storck exploration 2017 – follow up a significant unexplored soil anomaly recognised by Phelps Dodge (1999-2009) but never followed up. Page 31
Slide 32: Ladue Claims (4,350 Ha)
LADUE CLAIMS (4,350 Ha) Ladue exploration 2017 – prospecting and soil sampling in an intrusive- orogenic geological terrain. Page 32
Slide 33: K2 Gold 2017 Exploration Summary
K2 GOLD 2017 EXPLORATION SUMMARY • Wels - $540,000 Program - 1000m+ diamond drilling campaign at Wels to extend the mineralization and continue the successful drilling program of 2015, extend the soil grids • Flume – $200,000 Program - Follow up 4km x 2km gold and arsenic anomaly the northern target
Slide 34: Directors & Management
DIRECTORS & MANAGEMENT JOHN ROBINS (Chairman) CRAIG ROBERTS (Director) Founder and Chairman of Kaminak Gold. Kaminak Mining Engineer / Mining Investment Banking: Fluor, First discovered and developed the Coffee Gold Project, Yukon, Marathon, NBF, PI, Axemen, Director of Ethos Gold acquired by Goldco
Slide 35: KTO:TSX-V Contact Details
K T O : T S X - V w w w . k 2 g o l d . c o m Stephen Swatton, President & CEO Head office: 1020 – 800 West Pender Street Vancouver, B.C. V6C 2V6 Tel: (604) 604 331 5090 Email: info@k2gold.com
Slide 36: Appendix / Additional Slides
APPENDIX / ADDITIONAL SLIDES Page 36
Slide 37: Mineral Deposits - Significant Gold & Other Deposits in the Central Tintina Belt
MINERAL DEPOSITS - SIGNIFICANT GOLD & OTHER DEPOSITS IN THE CENTRAL TINTINA BELT Page 37
Slide 38: Wels - Geology & Mineralization
WELS - GEOLOGY & MINERALIZATION Preliminary studies indicate the host • Dublin Gulch (Victoria Gold) 6.3Moz global resource incl. 2.6Moz rocks are reduced IRGS (Intrusion P+P @ 0.68 g/t, Related Gold System) that intruded a raft of Selwyn Basin-related rocks within • Fort Knox (Kinross) >6Moz mined
Slide 39: Wels Soil Sampling – Saddle Zone
WELS SOIL SAMPLING – SADDLE ZONE SAMPLING HIGHLIGHTS 2014 N Page 39
Slide 40: Wels Gold Project Acquisition Agreement from Gorilla Minerals
WELS GOLD PROJECT ACQUISITION AGREEMENT FROM GORILLA MINERALS • K2 Gold purchased a 90% option interest in Wels from Gorilla • Payments to Gorilla - C$350,000 over 24 months and issuing 3M shares of KTO over a 30 month period • At earn-in a JV will be formed and KTO will sole fund through to complet
Slide 41: First Nation Agreement & The Environment
FIRST NATION AGREEMENT & THE ENVIRONMENT FIRST NATION ENVIRONMENTAL CONSIDERATIONS • The Wels Claims are located in the Traditional Territory of White River The Wels exploration site is 7km NW of First Nation (WRFN). Wellesley Lake and 5km East of White River. K2 are committed to ensuring the • K2 G
Slide 42: Flume - 2017 Exploration Budget
FLUME - 2017 EXPLORATION BUDGET $200,000 minimum spend as per option agreement • Extending and infilling current soil grid in North zone, • Prospecting, reviewing 2012 drilling results, re-mapping south zone with the aim of defining drill targets for 2018-2019 Page 42
Slide 43: Flume – Terms of Option Agreement
FLUME – TERMS OF OPTION AGREEMENT • To earn 60% K2 must spend C$2M on exploration ($200,000 in year 1), issue 1M shares and pay Commander C$400,000 over a 4 year period. Exploration expenditures are ’Back– Ended’ and minimal cost to K2 in the first 3 years • To acquire 100% K2 must carry out an addi