Salazar Resources Limited · TSXV:SRL
Salazar Resources — Investor Presentation (May 2018)
30 slides from Salazar Resources's investor presentation, May 2018
Slide 1: Leading VMS Development and Copper-Gold Exploration in Ecuador
TSX.V: SRL | FSE: CCG LEADING VMS DEVELOPMENT AND COPPER-GOLD EXPLORATION IN ECUADOR Corporate Presentation | May 2018 TSX.V: SRL | FSE: CCG 1 salazarresources.com
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This report includes certain statements that may be deemed forward-looking. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or development
Slide 3: Why Invest in SRL?
WHY INVEST IN SRL? Major near surface high- One of Ecuador’s most Project generation Strategic Investors grade VMS deposit successful exploration model team led by Fredy Salazar with NI 43-101 resource with local expertise and to earn free-carry in 25% of company owned by estimate proven track recor
Slide 4: About the Company
ABOUT THE COMPANY Salazar Resources Ltd. (TSX. V: SRL – FSE: CCG) is a publicly-listed Silvercorp Metals 3.39% project generator engaged in the exploration and development of base and precious metals in Ecuador’s highly prospective areas Guangshou Mining 5.18% Trafigura 5.76% 4.2M 133.78M Major Shar
Slide 5: Key Personnel
KEY PERSONNEL Led by a senior Ecuadorian management team, most notably of which is Fredy Salazar. This team was instrumental discovering +29Moz of Au, 22Moz Ag and 2.4Blb of Cu in Ecuador Fredy Salazar M.Sc. President & Chief Executive Officer § 30 years prospecting experience § Native Ecuadorian –
Slide 6: Deal with Adventus (ADZN): Curipamba Project Earn-In
DEAL WITH ADVENTUS (ADZN) CURIPAMBA SPENDING & OWNERSHIP PROJECT EARN-IN 21,537ha 75% 25% AMOUNTS In 7 concessions ADZN SRL US$25M over 5 years ADZN to spend and complete Post earn-in for Curipamba Project a feasibility study within 3 years Deal closed in Sept 2017 Objective: fully fund further expl
Slide 7: Ecuador: New Mining Frontier
ECUADOR: NEW MINING FRONTIER $41M equity financing, 1 ($40M from Newcrest) Salazar Resources Projects VMS Mines Projects Exploring the 2 Llurimagua deposit 1 Rio Blanco commences 3 construction 2 New tax regime has attracted 2 US$650M+ YTD 2017-18 Grupo Mexico as owner of 4 Chaucha Project 8 Commitm
Slide 8: SRL Projects
SRL PROJECTS Salazar Resources Projects VMS Mines Projects RAMOS-LA VERDE: Cu-Au-Mo porphyry & mesothermal veins with Au-Ag ALISALES PROJECT: Quartz-sulphide veins system with Zn-Cu-Au RUMIÑAHUI: Au quartz stockwork and Cu-Mo porphyry La Plata COLOMBIA Macuchi CURIPAMBA (El Domo Deposit): VMS Camp E
Slide 9: Curipamba
CURIPAMBA TSX.V: SRL | FSE: CCG 9 salazarresources.com
Slide 10: Flagship: Curipamba Project
FLAGSHIP: CURIPAMBA PROJECT HIGH-GRADE PROSPECTIVE VMS CAMP(1) § High priority exploration target includes Sesmo and Agua Santa anomalies § Project hosts the PEA-stage El Domo deposit – one of the highest grade VMS deposits in the western hemisphere § Located 20 km from Pan-American highway, in low-
Slide 11: Curipamba: El Domo
CURIPAMBA: EL DOMO El Domo is flat-lying VMS deposit, close to surface and mineable by open-pit and/or underground methods producing saleable 2015 PEA was completed utilizing considerably lower prices than today, zinc, lead and copper concentrates with strong precious metals resulting in a 30% IRR a
Slide 12: Curipamba: Other Targets
CURIPAMBA: OTHER TARGETS § Sesmo: 15 m @ 39.19 g/t Au, 741 g/t Ag in trench § El Gallo: 597 m drilling in 5 holes § 6.95 m @ 4.51 g/t Au & 157 g/t Ag, 8.25 m @ 5.80 g/t Au & 66 g/t Ag § Sesmo Sur: 3,746 m drilling, in 18 holes § 12 m @ 2.25 g/t Au and 31 g/t Ag, 15 m @ 2.54 g/t Au and 50 g/t Ag § La
Slide 13: Curipamba: Maiden Drill Results at Sesmo
CURIPAMBA: MAIDEN DRILL RESULTS AT SESMO From To Thickness Au Ag Cu Pb Zn Drill Hole (m) (m) (m) (g/t) (g/t) (%) (%) (%) CURI-254 12.94 24.50 11.56 3.65 77.2 0.01 0.10 0.27 Including 21.20 24.50 3.30 6.10 53.0 0.01 0.22 0.48 CONTACTO EN SUPERFICIE Zona Ciyalla-falla PUNTO REFERENCIA CURI-254A 10.12
Slide 14: Curipamba: The Five-Year Plan
CURIPAMBA: THE FIVE-YEAR PLAN SRL-Adventus: Five-year plan is to have a development-optimised, shovel-ready project Exploration Development Management/Social $8 to 10M $10 to 12M ~$4.5M § Airborne Geophysics § Metallurgical Year 1 § Discover new VMW lenses & expand scope - Bulk samples, test work $4
Slide 15: Rumiñahui / Other Projects 100%-Owned
RUMIÑAHUI OTHER PROJECTS 100%-OWNED MACARÁ TINGO TSX.V: SRL | FSE: CCG 15 salazarresources.com
Slide 16: Rumiñahui Project
RUMIÑAHUI PROJECT 2 2,910 concessions hectares Main targets: ~100km original discovery areas previously worked by Northwest of Quito artisanal miners v GOLD VALUES FROM ROCK CHIP AND CHANNEL SAMPLING: Over 55m up to 2.7 g/t Au Over 9m 1.3 g/t Au Over 8m 3.4 g/t Au SAMPLE MC-11: 0.50m width @ 17.95 g
Slide 17: Rumiñahui Project
RUMIÑAHUI PROJECT On the same trend as SolGold’s Cascabel and Codelco’s Llurimagua Projects, samples (see diagram to right) from Rumiñahui indicates immense exploration potential SolGold Cascabel 430Mt @ 0.8% CuEq (Indicated) 650Mt @ 0.6% CuEq (Inferred) Codelco Llurimagua 982Mt @ 0.89% Cu, 0.04% Mo
Slide 18: Macará Project
MACARÁ PROJECT 2 1,807 concessions hectares § VMS deposit and Au-Cu porphyry potential § Pyrolavas breccia with high Au-Ag values and barite Quartz- sulphide veins system and Au-Cu porphyry potential SAMPLE 50115: 1.5g/t Au, 128g/t Ag, 0.29% Zn TSX.V: SRL | FSE: CCG 18 salazarresources.com
Slide 19: Tingo Project
TINGO PROJECT 1 concession 1,533 hectares Quartz-sulphide veins system and Au-Cu porphyry potential TSX.V: SRL | FSE: CCG 19 salazarresources.com
Slide 20: New Deal with Adventus
NEW DEAL WITH ADVENTUS NEW! OWNERSHIP US$150K Ecuador-wide exploration 80% 20% in cash alliance agreement ADZN SRL + with Adventus closed in March 2018 in an Ecuadorian subsidiary that will hold zinc-related and other C$2.3M exploration projects in shares to Salazar § Adventus to fund all activities
Slide 21: Piccadilly Project
PICCADILLY PROJECT Piccadilly will be transferred into the exploration alliance with Adventus (See slide 7 and Company news release on March 29, 2018) 3 3,246 concessions hectares Cu-Au Porphyry Outcrop – Potassic Alteration PROSPECTIVE PORPHYRY AU-CU SYSTEM. INITIAL RESULTS: SAMPLE 50402 2.25 g/t A
Slide 22: Santiago Project
SANTIAGO PROJECT Santiago will be transferred into the exploration alliance with Adventus (See slide 7 and Company news release on May 23, 2018) § Large mineralized hydrothermal and Cu-Au porphyry system § 37 km NNW of Loja, area of 2,350 hectares § 4,578m drilled in 23 holes Española Vein (3m wide)
Slide 23: Santiago Project – Au, Ag & Mo Values
SANTIAGO PROJECT – AU, AG & MO VALUES 1 2 Ribs Zone and Ancha Vein 1.0m @ 1.29 g/t Au and >100 g/t Ag (up to 5 meters width) 1.0m @ 1.65 g/t Au and >100 g/t Ag Structure F.U. 1.40m @ 4.8 g/t Au and 378 g/t Ag Salado 3 (1.5 meters width) 1.20m @ 6.4 g/t Au and 136 g/t Ag Structure Quartz-Tourmaline 3
Slide 24: Upcoming Catalysts
UPCOMING CATALYSTS USD$500K Investment SD* ---> EIA procurement stream sediments + rock sampling + geological mapping Macará Geophysics & drill 3,000m once targets are identified USD$300K Investment Tingo Title pending Environmental record ---> SD* ---> EIA procurement Geophysics & drill once target
Slide 25: Investment Summary
INVESTMENT SUMMARY New tax regime Creating value without Led by in Ecuador corporate dilution Fredy Salazar has attracted US$650M+ YTD 2017-18 Project generation model allows SRL to and a local exploration team well-versed advance projects through strategic in local relations, access to projects and
Slide 26: Appendix A: Deal with Adventus
APPENDIX A: DEAL WITH ADVENTUS OPERATORSHIP CASH COMPONENTS § SRL receives an advance payment of US$250,000 per annum § Adventus to lead the project, with SRL as experienced prior to commercial production, a Management Fee of the local partner greatest of 10% of Expenditures or US$350k/year § Advent
Slide 27: Appendix B: Ecuadorian Tax Regime Modernization
APPENDIX B: ECUADORIAN TAX REGIME MODERNIZATION Ecuador has been proactively modernizing mining laws, improving tax structure and investing in infrastructure to complete with its Latin American counterparts. 2018 Transition Period – Current minister (Rebeca Illescas) expressing strong support for th
Slide 28: Appendix C: El Domo PEA Overview
APPENDIX C: EL DOMO PEA OVERVIEW § SRL PEA(1) evaluated economics of an initial open pit operation followed by underground mine feeding a conventional froth flotation plant, but its size was dictated by tax, rather than maximizing the project economics § Mine life of 14 years split into 9 years for
Slide 29: Appendix C: Continued
APPENDIX C: CONTINUED OPEN PIT PRODUCTION Mass Pull Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Total Zn Mineral (mt) 179,550 179,550 179,550 179,550 139,650 139,650 139,650 129,675 12,269 1,279,094.25 Cu Concentrate (dmt) 2.46% 4,417 4,417 4,417 4,417 3,435 3,435 3,435 3,190 302
Slide 30: TSX.V: SRL | FSE: CCG
TSX.V: SRL | FSE: CCG CORPORATE OFFICE ECUADOR OFFICE INVESTOR RELATIONS 1305-1090 West Georgia Street Av. 10 de Agosto N37-232 y Villalengua info@salazarresources.com Vancouver, BC, Canada Edif. Cominesa of. 31, Quito, Ecuador salazarresources.com +593-2-227-8975 Ext. 103 TSX.V: SRL | FSE: CCG 30 s