El Capitan Precious Metals Inc · OTC:ECPN
El Capitan Precious Metals — Corporate Update (January 2008)
48 slides from El Capitan Precious Metals's corporate update, January 2008
Slide 1: El Capitan Precious Metals, Inc. Exploration Drilling Project
El Capitan Precious Metals, Inc. Exploration p Drilling g Project j
Slide 2: Participants
Participants • This meetingg is the p proposal p of the pproponent p ((El Capitan Precious Metals, Inc.) • U.S. Forest Service-U.S. Forest Service is here to describe d ib h how theh USFS will ill respondd and d why h to the proponent’s action. • Bob Berglund is El Capitan’s Capitan s area represent
Slide 3: Forest Service Role
Forest Service Role • Current and Accurate Information • Forest F t Service S i role l iis tto ensure th thatt the th proper laws and policies are followed (NEPA / Forest F t Service S i Decision) D i i ) • Provide for public and community involvement
Slide 4: Right to conduct mineral exploration on Forest Service lands
• El Capitan Precious Metals, Inc. has the right to conduct mineral exploration on these U.S. Forest Service lands. • Anyone holding active mine claims has the g to right o co conduct duc mineral ea eexploration po a o o on federal lands, including U.S. Forest g Service and Bureau of Land Management
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Slide 6: El Capitan Precious Metals Inc.
EL ! PRECIOUS METALS Inc.
Slide 7: Primary Asset
El Capitan Precious Metals, Inc. is publicly traded on the OTC BB under the symbol “ECPN”. Primary Asset The company’s holds a 40% interest in the El C it Capitan deposit, d it and d maintains i t i managementt control of the asset through an agreement with our p partner,, Gold & Minerals Company p
Slide 8: The ECPN Board
Th ECPN B The Board dbbegan restructuring t t i th the Company in April 2007 • Previous management team lacked mining industry experience, which resulted in financial, technical and operational p shortcomings. g • New management, board, and ttechnical h i l team t h has extensive t i mining i i indu
Slide 9: Board of Directors
Board of Directors CEO CFO Ken Pavlich Bill Wilson Permitting / Local Geology Metallurgy Legal Representation
Slide 10: Donald Gentry
• Donald Gentry (BS, MS, PhD - Mining Engineering) –CCEOO of o Polymet o y e Mining g ((1998-2003) 998 003) – Professor - Colorado School of Mines (1972- 1998)) – Prior to CSM, Dr. Gentry held positions with • Anaconda, Kennecott Copper, pp NL Industries – Board of Directors experience includes: San
Slide 11: Marv Kaiser
• Marv Kaiser (BS Accounting) – Formerly CFO of: Doe Run Company Amax Gold Company Olympic Mining Corp Ranchers Exploration – Has served on the SIU – Carbondale School of Accountancy Advisory Board since 1988 – Board of Directors experience includes: NewWest N W t Gold G ld Uranium U i R Resources C
Slide 12: Bruce Snyder
• Bruce Snyder (BS, University of Oregon) – 1996 996 National a o a CoCollege ege Football oo ba Coac Coach o of the e Year – Head Football Coach at: University of Arizona University of California Utah State University – NFL Assistant Football Coach for Los Angeles Rams a s – Author of “Leadership i
Slide 13: Bill Wilson
• Bill Wilson (BS Business Administration / Finance) – El Capitan Precious Metals Metals, Inc Inc. • CFO, Treasurer & Secretary, Board member – Previous experience includes: • Principal in Two Dragons Group (private equity) • CEO, CEO CFO Pebble Technology • Executive Director, Drexel Oceania (merch
Slide 14: Ken Pavlich
• Ken Pavlich (BS Mining Engineering, MS Mgmt/Finance) – El Capitan Precious Metals, Inc. • President, CEO, Acting Chairman of the Board – Held Management and/or Executive Positions at: Oglebay Norton Company (1997-2002) (1997 2002) Santa Fe Pacific Gold Company (1989-1997) Geographix g p / TerraSci
Slide 15: GL Environmental Services
• GL Environmental Services – New Mexico based permitting and compliance firm founded in 1997 • Denise Gallegos • Tim Leftwich – Principals have a combined 50+ 50 years of Federal and State permitting and compliance experience, including employment in both the private and public sectors
Slide 16: Bob Berglund
• Bob Berglund (BS Mining Engineering) – El Capitan Precious Metals Metals, Inc Inc. • Local Representative – Cleveland Cliffs 1968 - 2003: • VP / General Manager – Tilden Mine • VP / General Manager – Northshore Mine
Slide 17: Clyde Smith
• Clyde Smith (BA, MS, PhD Geology) – Certifications • Certified Professional Geologist • Professional Engineer, Engineer British Columbia • Canadian NI 43-101 “Qualified Person” – Discoveries: • Jason lead-zinc-silver deposit, Canada • Santa Fe gold deposit, Nevada • North Lake gold deposit, Canada
Slide 18: Mike Thomas
• Mike Thomas (BA, MS Geology, Mathematics) – Principal, Principal M.H.S. M H S Research – Lecturer and Research Associate at Colorado School of Mines – 33 years of Metallurgical experience • Precious metals assay development and optimization • Metals recovery process development and testing
Slide 19: Kenneth N.G. Bright
• Kenneth N.G. Bright (Geological Engineer & Geochemist) – Metallurgical Consultant – 35+ years of metallurgical and assaying experience • ALS-Chemex • Bonder Clegg gg
Slide 20: Richard Daniele
• Richard Daniele (BS Metallurgical Engineering) – Principal, Principal Daniele MinMet Services – 47 years of metallurgical evaluation experience • Kennecott Copper • Dravo Corporation • Anschutz Mining Corporation • Dames & Moore
Slide 21: The El Capitan Deposit
The El Capitan Deposit
Slide 22: El Capitan project site aerial map
Road Aerial Hybrid fteverton = eS Lincoln County White Oaks |} —€ x 1 |e oO Jasin a ba had apitan Project Site <...0. foe) Carnizozo 380: ‘ teen ix ne Lodge Poly : aouatni frabela 7 . Ienkan Buewate 70 m__ San Patricio Sines - Hondodgaglinnie Hight Ponderosa ) ae lias: de Dig side : Center Mil Three
Slide 23: Property history: claims, USBM drilling, iron ore production
• Four Claims staked in 1902, patented in 1911 • USBM drilled 140 shallow holes in 1944 & 1948 – Looking for iron ore resources – Reports noted the presence of precious metals • 1961-1988 – Intermittent iron ore production
Slide 24: Company history and 2007 resource announcement
• 1994 - Gold & Minerals Company, Inc. (G&M) acquires purchase option option, begins investigations • 2002 - El Capitan Precious Metals purchased pu c ased aan interest te est in tthe epproperty ope ty from o G&M • 2007 – 6.1 million Gold Equivalent Ounce Measured Resource announced by ECPN
Slide 25: Deposit found in a limestone skarn
¾ The El Capitan deposit is found in a limestone skarn. skarn ¾ Precious metals & iron minerals were deposited in the broken up rock by high temperature thermal fluids rising from deep within the earth. ¾ This deposit is located above the water table with minimal barren rock above or within the mine
Slide 26: Drilling phases summary
# of Max Avg Total Phase s Date H l Holes TD TD F t Footage Total Apr-05 to May-06 45 710’ 283’ 12,763’
Slide 27: Resource: gold, silver, platinum
Metal Gold Silver Platinum Grade (opt) 0.020 0.205 0.011 Ounces (000) 2,796 28,997 1,518 Resource: 141,444,000 tons @ 0.01 opt gold cut-off grade 6,127,000 Gold Equivalent Ounces @ 0.044 opt
Slide 28: High priority drilling targets
¾ High g ppriority y drilling g targets g in the 2,000 acre permit application area are designed to add resource tonnage to the deposit. ¾ The targets will be investigated in stages, based upon the success of the previous stages of drilling.
Slide 29: Exploration permit application area
Outline O tline of 2,000 2 000 acre exploration e ploration permit application area area. Additional 4,700 Claim Block is located north of this area. Current Resource Area
Slide 30: Economic potential of the deposit
¾ ECPN believes that the deposit p has the economic potential to become a significant precious metals production operation. ¾ The existing g deposit p may y be sufficient to move forward with operational development p plans,, or it may p y require q additional tonnage to meet acceptable economic hur
Slide 31: Partnering with an operating company
¾ ECPN C expects to partner with an experienced, fully staffed operating company prior i tot commencementt off mine development activities ¾ El Capitan, depending on design of the operation, would likely employ 100 to t 300+ peoplel
Slide 32: Local jobs and community benefits
¾ Good paying long term jobs with benefits f ffor many local people ¾ Each mining job should result in 2 to 3 other local jobs ¾ Influx of mining gpprofessionals and their families would support local schools and communities ¾ Expanded tax base would provide financial resources for the community
Slide 33: El Capitan Precious Metals Inc.
EL ! PRECIOUS METALS Inc.
Slide 34: Permitting
Permitting U.S. Forest Service Plan of Operation New Mexico Mining and Minerals Exploration Permit
Slide 35: Permitting Procedures Under a Plan of Operation
Permitting Procedures Under U d a Pl Plan off O Operation ti (POO) • Plan of Operation p ((POO)) is submitted to US Forest Service, Smokey Bear Ranger District. • US Forest Service determines whether the POO adequately describes the exploration project and its impacts and is adequate to start the Na
Slide 36: Permitting Process Continued
Permitting Process Continued…. • Environmental document is prepared and submitted to the Smokey Bear Ranger District/Regional Forester. • Smokeyy Bear Rangerg District/Regional g Forester determines whether the environmental document adequately considers the environmental impacts of the action actio
Slide 37: Permitting Procedures Under a State Exploration Permit
Permitting Procedures Under a State St t Exploration E l ti P Permitit • Exploration Permit filed with New Mexico Mining and Minerals Division (MMD). • Permit application is provided to consulting agencies. • Director makes “Completeness Completeness Determination” Determination . • Public Hearing h
Slide 38: Permit Application is Provided To
Permit Application is Provided To: • New Mexico State Forestry Division • New Mexico Environment Department • New Mexico State Engineer’s Office • State Historic Preservation Office • New Mexico Game and Fish Department
Slide 39: Plan of Operation (POO)
Plan of Operation (POO) • Project Description • Right Right-to-Enter to Enter • Maps • Scenic Values • Equipment and • Fish and Wildlife Vehicle Descriptions. • Cultural Resources • Description of • Reclamation Structures • Air Qua Quality ty • Water Quality
Slide 40: Exploration Permit
Exploration Permit • Right g to Enter • Reclamation and Operation • Maps • Cultural Resources • Exploration Description • Safeguarding • Groundwater Information • Protection of Wildlife and • Financial Assurance Important Habitat • Operations to minimize erosion i
Slide 41: El Capitan Exploration Drilling Project
El Capitan Exploration Drilling Project • 112 holes to be drilled in phases • Pads measure 60’ x 30’ • Reverse circulation drill rig to be used • Air and fluid drilling to be used • Tracked/rubber T k d/ bb ti tired dddrill ill rigs i will ill b be used d • For fluid drilling a small containment str
Slide 42: Exploration Drilling Project Continued
El Capitan Exploration Drilling P j tC Project Continued… ti d • Drill holes will be plugged in accordance with U.S. Forest Service requirements, New Mexico Mining and Minerals regulations and New Mexico State Engineer regulations regulations.
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Slide 44: Capitan Exploration Area: proposed drill sites and access roads
446000 448000 Capitan Exploration Area Proposed Drill Sites and Access Roads Capitan Exploration Boundary —— Existing Roads Proposed Well Locations Fire Break ——— USFS Road 9032E Over-land Routes or Temporary Roads USFS Road 9036A === NMSR 246 450000 451000 1 Miles Se ee ee eee
Slide 45: Capitan Exploration Area: proposed phased drilling
Capitan Exploration Area Proposed Phased Drilling A Series © | Series 1 Miles B Series @ Kk Series aE nn N C Series Capitan Exploration Boundary HSeries —-—== NMSR 246 A
Slide 46: Exploration Drilling Project continued: roads and pads
EL Capitan Exploration Drilling P j t continued… Project ti d • Roads, when required q will be constructed to be 12 feet wide and will follow the land contours whenever possible • Proposed roads and drill pads have been cleared for cultural resources and Threatened and Endangered species • Material
Slide 47: Exploration Drilling Project continued: groundwater and reclamation
El Capitan Exploration Drilling P j t continued… Project ti d Depth to groundwater in area is approximately 700’ 700 • Average drill hole is approximately 450’ deep • Reclamation of drill sites and roads will be conducted during the fall, upon completion of drilling phases
Slide 48: Questions?
Questions ? • Comments can be emailed to: glelcapitan@flash.net • Mail to: GL Environmental, Inc. El Capitan P.O. Box 1746 Las Vegas Vegas, NM 87701 Phone: (505) 454-0830
El Capitan Precious Metals — Corporate Update (January 2008) on 6ix