Monarca Minerals Inc. · TSXV:MMN
Monarca Minerals — Investor Presentation (July 2019)
67 slides from Monarca Minerals's investor presentation, Jul 2, 2019
Slide 1: Developing Precious and Base Metals in Mexico
Developing Precious and Base Metals in Mexico July 2, 2019 TSX VENTURE: MMN 1
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT This presentation is prepared by Monarca Minerals Inc. (MMN – TSX.V). Management of Monarca are solely responsible for content and format. Management has compiled this presentation from industry information and 43-101 reports and news releases with specific underlying Quali
Slide 3: Board of Directors
BOARD OF DIRECTORS FRANK HOGEL, CHAIRMAN & DIRECTOR: Mr. Hogel currently serves as Chief Executive Officer of Peter Beck Performance Funds and sits on the advisory board of Concept Capital Management Ltd. He has an MBA degree from the University of Nurtingen, Germany. CARLOS ESPINOSA – PRESIDENT, CE
Slide 4: Management
MANAGEMENT CARLOS ESPINOSA – PRESIDENT, CEO & DIRECTOR Mr. Espinosa, is a mining executive with over 25 years of experience within Canadian capital markets, international business development and commercial banking. He is CFO at Fredonia Management and former Head of Business Development, Global Min
Slide 5: Stock Information
STOCK INFORMATION • TSX-V SYMBOL - MNN • Basic Shares Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.6 Million • Stock Options Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Million 2.1Million @ $0.14 • Warrants Outstanding . . . . . . . . . . .
Slide 6: What's New?
WHAT’S NEW? Q3 2019 Planning a 5,000 to Q2 2019 10,000 meters drilling program at Executed contract of San Jose project Q4 2018 mining exploration and of promise of San Jose project: assignment of rights Q4 2017 of San Jose project. Completed IP \ Signed Letter of Resistivity \ Magnetic Intent to ac
Slide 7: Company Overview
COMPANY OVERVIEW Monarca Mineral is focus on the exploration and development of precious and base metals projects along the highly productive mineralized belt in northern Mexico San Jose: New geophysical discovery. This 5,580-hectare property in Chihuahua has excellent indications of multi-element
Slide 8: Projects' Location
PROJECTS’ LOCATION San Jose Tejamen San Lucas El Sol TSX VENTURE: MMN 8
Slide 9: San Jose
SAN JOSE Tyrone Bisbee Bismark N TSX VENTURE: MMN 9
Slide 10: San Jose Project: Historic/Active Mines
SAN JOSE PROJECT: HISTORIC/ACTIVE MINES San Jose Bismark Mine: First Inferred Resource Assumption of 12.8 Mt at 52 g/t Ag, 11 % Zn, 0.6 % Pb and 0.4 % Cu. Ore Geology Field Trip NW- Mexico 11-21 January 2009. TSX VENTURE: MMN 10
Slide 11: Deposit Type and Location
DEPOSIT TYPE AND LOCATION Deposit Type: Skarn and possible CRD/Porphyry with significant precious and base metal grades Mineralization: In skarns, intrusives, veins, jasperoids, and altered limestones, with Au (to 9.5ppm) and Ag (to 257ppm), Cu (to 7.1%), Pb (to 9.8%), Zn (to 2.0%) Geophysics: Ve
Slide 12: Geology and Mineralization
GEOLOGY AND MINERALIZATION Potential for large Skarn deposits with possible Mantos & CRD and porphyry mineralization Dimensions of IP anomaly indicate possible large tonnages High surface assay values may represent leakage of more voluminous mineralization associated with the very strong IP anoma
Slide 13: Bismark Mine = San Jose Target Model
BISMARK MINE = SAN JOSE TARGET MODEL Note Minimal Surface Expression, like San Jose Property Discovered in 1979 by Geophysical Survey: Magnetic & IP Ore Reportedly Nearly Mined Out: Looking for Nearby Ore Deposit to Feed 2,500tpd Mill Note: The Bismark Mine is regarded as a comparative explora
Slide 14: Mining Concession Map
MINING CONCESSION MAP Primary exploration & geophysics area N Concession 1 km Limit TSX VENTURE: MMN 14
Slide 15: Work Completed
WORK COMPLETED Geological mapping completed over the primary area of old mines +/- 820 hectares 167 surface samples taken QAQC standards included in samples assayed at ISO Certified Laboratory, ALS Chemex, with good results in blanks and mineralized standards Geophysics including magnetic and IP
Slide 16: Surface Geological Map & Geophysical Interpretation
SURFACE GEOLOGICAL MAP & GEOPHYSICAL INTERPRETAION TSX VENTURE: MMN 16
Slide 17: Geophysical IP Response & Section Lines
GEOPHYSICAL IP RESPONSE & SECTION LINES TSX VENTURE: MMN 17
Slide 18: Interpreted Sub-Surface Geophysics & Geology Map
INTERPRETED SUB-SURFACE GEOPHYSICS & GEOLOGY MAP IP Anomaly 2.8+ km Long IP Anomaly Extends SE off Geophysical Survey Grid TSX VENTURE: MMN 18
Slide 19: Magnetic Anomaly
MAGNETIC ANOMALY Possible Buried Intrusive and/or Mineralization In Skarn Possible Buried Intrusive Porphyry TSX VENTURE: MMN 19
Slide 20: IP & Resistivity & Geology Section: South End
IP & RESISTIVITY & GEOLOGY SECTION: SOUTH END OF SURVEY AREA (LA GUADALUPANA MINE) Leakage Deeper Metal Mineralization Magnetic Anomaly: Possible Buried Strong IP Response: Intrusive Porphyry Probable Sulfide mineralization Mantos or CRD or Skarn Drill Target: 3 RC at 500m TSX VENTURE: MMN 20
Slide 21: IP & Resistivity & Geology Section: Middle of Survey Area
IP & RESISTIVITY & GEOLOGY SECTION: MIDDLE OF SURVEY AREA (TIRO EL LEON MINE) Leakage Deeper Metal Mineralization Strong IP Response: Probable Sulfide mineralization Magnetic Anomaly: Drill Target: Area of Strong Magnetic3Anomaly RC at 500m Possible Buried Possible Intrusive/Porphyry Intrusive Porph
Slide 22: IP & Resistivity & Geology Section: North Portion (El Buho)
IP & RESISTIVITY & GEOLOGY SECTION: NORTH PORTION OF SURVEY AREA (EL BUHO MINE) Leakage Deeper Metal Mineralization Strong IP Response: Probable Sulfide mineralization Skarn or Mantos to West Drill Target: 3 RC at 500m Magnetic Anomaly: TSX VENTURE: MMN Possible Buried 22 Intrusive Porphyry
Slide 23: IP & Resistivity & Geology Section: Jasperoid Area
IP & RESISTIVITY & GEOLOGY SECTION: NORTH PORTION OF SURVEY AREA (JASPEROID AREA) Strong IP Response: Probable Sulfide mineralization Mantos or CRD or Skarn Drill Target: 3 RC at 500m TSX VENTURE: MMN 23
Slide 24: IP & Resistivity & Geology Section: El Coyote Mine
IP & RESISTIVITY & GEOLOGY SECTION: NORTH PORTION OF SURVEY AREA (EL COYOTE MINE & JASPEROID) Strong IP Response: Probable Sulfide mineralization Mantos or CRD or Skarn in Limestone Drill Target: 3 RC at 500m TSX VENTURE: MMN 24
Slide 25: San Jose Exploration Program 2019
SAN JOSE EXPLORATION PROGRAM 2019 San Jose is drill-ready. There are numerous and expansive IP geophysical targets to drill. Geophysical IP penetration was to 450 m, so drilling is planned to 500 m depth RC Phase 1 drilling (with a booster compressor) is proposed in 2019 as a first pass along
Slide 26: Tejamen
TEJAMEN Los Mantos Area Key silver valuation component: Monarca owns 100% mineral rights and surface access in progress Inferred Resource of 19.8 million tonnes @ 45 g/t Ag (15ppm cutoff) resulting in 28.7 million contained ounces of Ag; completed by Gustavson Associates in accordance with CIM 2
Slide 27: Tejamen Site Conditions
TEJAMEN SITE CONDITIONS 100% ownership of Tejamen project mining concessions. 1,685ha in 23 mining concessions. Close to infrastructure and easy topography. New pro-mining government at local and state level. Active support from governmental authorities to help establish community relation
Slide 28: Tejamen General Location
TEJAMEN GENERAL LOCATION TSX VENTURE: MMN 28
Slide 29: Tejamen Location in State of Durango
TEJAMEN LOCATION IN STATE OF DURANGO Tejamen is located 10km SW of the town of Nuevo Ideal, via maintained level gravel road. Line power runs to Nuevo Ideal and Tejamen. Abundant groundwater available. TSX VENTURE: MMN 29
Slide 30: Tejamen Mining Concessions
TEJAMEN MINING CONCESSIONS TSX VENTURE: MMN 30
Slide 31: Tejamen Drillhole Map
TEJAMEN DRILLHOLE MAP Los Mantos 215 RC holes (36,139m) and 10 core holes were drilled between 2003 and 2007. Los Mantos zone (south) and Cerro Prieto zone (north) indicated. TSX VENTURE: MMN 31
Slide 32: Los Mantos – Best Drillhole Intercepts
LOS MANTOS – BEST DRILLHOLE INTERCEPTS Drill Hole From - To (m) Intercept (m) Ag ppm DD-5 0-36 36 49.5 DD-6 8-24 16 19.7 MMT-093 0-12 12 66.5 MMT-097 14-152 138 105.5 *MMT-101 80-169 89 620.5 Highlights include: MMT-103 30-46 16 60.4 Hole MMT-141 – 80 m @ *MMT-104** 106-146 40 142.7 417ppm Ag MMT-10
Slide 33: Cerro Prieto – Best Drillhole Intercepts
CERRO PRIETO – BEST DRILLHOLE INTERCEPTS Drill Holle From - To Width (m) Ag (grams per tonne) DD-1 18-84 66.0 59.5 DD-2 36-96 60.0 138.4 DD-3 62-78 16.0 38.6 MMT-001 13-76 60.0 86.93 Highlights include: MMT-002 28-56 28.0 52.31 Hole DD-2 MMT-003 100-110 10.0 84.2 60 m @ 138 g/t Ag MMT-004 92-96 4.0
Slide 34: High Grade Feeder Vein Drillhole Intercepts
HIGH GRADE FEEDER VEIN DRILLHOLE INTERCEPTS CERRO PRIETO FEEDER VEIN INDICATIONS Drill hole Intercept Meters Ag ppm No. intervals TJBD -1 87.15 - 93 6.45 132 TJBD - 2 34 – 35.30 1.30 1,065 1.40 TJBD - 3 55.30 - 56.70 238 TJBD - 4 126 - 128 2.00 142 LOS MANTOS FEEDER VEIN INDICATIONS Intercepts Drill
Slide 35: Cross Section Through Cerro Prieto
CROSS SECTION THROUGH CERRO PRIETO TSX VENTURE: MMN Drillholes through Gustavson block model 35
Slide 36: Cross Section Through Los Mantos
CROSS SECTION THROUGH LOS MANTOS TSX VENTURE: MMN Drillholes through Gustavson block model 36
Slide 37: Tejamen Inferred Resources
TEJAMEN INFERRED RESOURCES Deposit Cutoff ppm Ag TONNES Ag ppm Ag Contained Oz. Mantos 20 9,192,000 56 16,540,000 15 11,093,000 49.4 17,610,000 10 12,879,000 44.3 18,330,000 Cerro Prieto 20 6,790,000 45.7 9,970,000 15 7,760,000 42.2 10,520,000 10 8,590,000 39.3 10,860,000 Total 20 16,663,000 50.2 26
Slide 38: Tejamen Preliminary Metallurgical Testing
TEJAMEN PRELIMINARY METALLURGICAL TESTING LAB TEST TYPE (CYANIDE) NO. OF SAMPLES CRUSH SIZE AVE. Ag RECOVERY Mc Clelland Inc. Bottle Roll 6 80% - 200 mesh 54.80% Mc Clelland Inc. Column Leach 2 RC chips (nominal 3/8”) 67.50% Wardrop Engineering Column Leach 3 N/A (assumed chips) 68% Mexican Geologic
Slide 39: Tejamen Satellite Image
TEJAMEN SATELLITE IMAGE Mineralized Zone Representative Outline TSX VENTURE: MMN Showing gentle topography in area and proximity to Tejamen 39
Slide 40: Tejamen Proposed Initial Work Program
TEJAMEN PROPOSED INITIAL WORK PROGRAM The primary focus of planned work at Tejamen will consist of follow-up core drilling including drilling 4,800m in 12 core holes. Core holes will be drilled to confirm previous RC drilling and better define geological parameters and block model grades. Dril
Slide 41: Community Relations
COMMUNITY RELATIONS The company currently has no access to Tejamen, but we are working with the leaders from Ejido, as well as the Mexican government (Federal, State and Municipal) to reopen the dialog with the community. The company discovered in 2009 that the Tejamen Ejido did not have title t
Slide 42: San Lucas
SAN LUCAS Two parallel vein structures have been identified in the 3km long mineralized Main Shear zone. 12 historical RC holes have been drilled, ranging from about 124m to 212m and averaging 158 m in depth. Drilling results include up to 2m at 147ppm Ag, with 1.66% Zn and 0.41% Pb (MMSL-008;
Slide 43: San Lucas Site Conditions
SAN LUCAS SITE CONDITIONS 100% ownership of San Lucas project mining concessions. 79.6 ha in 8 mining concessions. Close to infrastructure and easy topography. Good and long-standing relationship with the community. Surface land title owned by the San Lucas Community (not Ejido). New pro
Slide 44: San Lucas General Location
SAN LUCAS GENERAL LOCATION TSX VENTURE: MMN 44
Slide 45: San Lucas Location
SAN LUCAS LOCATION San Lucas is located in an area with numerous important historical and operating Ag and Au mines. Line power runs through the project. TSX VENTURE: MMN 45
Slide 46: San Lucas Drillhole Map
SAN LUCAS DRILLHOLE MAP Drilling results include up to 2m at 147ppm Ag, with 1.66% Zn and 0.41% Pb (MMSL-008; 48m-50m depth). Twelve RC holes have been drilled at San Lucas Mostly to depths of about 150m Manto potential below 200m in untested vein areas Luismin obtained some very high grad
Slide 47: San Lucas Geological Map
SAN LUCAS GEOLOGICAL MAP On the district scale, there is a distinct NW- trending topographic/structural trend. The rocks are Permian phyllites and Cretaceous clastic and limestones, overlain by Tertiary Lower Volcanic Sequence and Upper Volcanic Sequence rocks. The San Lucas Project is located at a
Slide 48: San Lucas mining district historical mining area
The San Lucas mining district is a historical mining area mined mostly by small miners since the 1880s. Mining was done on a relatively small scale and there are no significant known environmental issues. Ag/Au Main Shear at El Doctor Zone TSX VENTURE: MMN 48
Slide 49: San Lucas – Best Early Sampling Results
SAN LUCAS – BEST EARLY SAMPLING RESULTS In 1980 Consejo de Recursos Minerales (CRM) reported sampling (82 channels) at the Noche Buena (Doctor) portion of the Main Shear, over 167m of strike. The average grade was 2.9ppm Au and 106.6 Ag, over an average width of 1.22m. CRM reported sampling (29
Slide 50: El Doctor Zone Sampling Highlights
EL DOCTOR ZONE SAMPLING HIGHLIGHTS Outcrop sampling (89 channels) identified two parallel Au/Ag zones with over 270 meters of strike length, known as the El Doctor zone. The highest grade channel sample was 1.4 meters at 110.04ppm Au, 168ppm Ag and 1.05% Pb (SLS 09). Of the 89 channel samples,
Slide 51: El Doctor Zone Map
EL DOCTOR ZONE MAP TSX VENTURE: MMN 51
Slide 52: Cross Section Through San Lucas
CROSS SECTION THROUGH SAN LUCAS Untested Potential Mantos Drillholes at San Lucas: An “excellent target for replacement style higher grade mineralization” in underlying limestone [2005, 43-101 compliant Technical Report (Richards)] TSX VENTURE: MMN 52
Slide 53: San Lucas Satellite Image
SAN LUCAS SATELLITE IMAGE Au Bearing Silicified Dike Ag/Au Main Shear Showing gentle topography in the area and around to the San Lucas Project TSX VENTURE: MMN 53
Slide 54: San Lucas Proposed 2019 Work Program
SAN LUCAS PROPOSED 2019 WORK PROGRAM The primary focus of new work at San Lucas should consist of drilling the primary higher grade locations along the Main Shear Au/Ag veins, at depths of 200-300m to test for manto mineralization below the volcanic rocks. An IP geophysical program is proposed o
Slide 55: El Sol
EL SOL Surface sampling at El Sol (old mine dumps) of up to 358ppm Ag, 1.94ppm Au, 19.6% Zn and 22.6% Pb. One hole has been drilled on the concession (Southern Silver Exploration [SSV], 13CLM-072) and returned 0.3m (102.5 – 102.8m depth) at 87ppm Ag, 1.88% Pb, 1.01% Zn and 0.11% Cu. SSVs Blind
Slide 56: El Sol Site Conditions
EL SOL SITE CONDITIONS The El Sol concession is located about 75km northeast of Durango, Mexico, via paved highway. 100% ownership of the El Sol concession. 63ha in the El Sol concession. Southern Silver (SSV-V) previously had an option (through Freeport McMoran) to the El Sol concession, bu
Slide 57: El Sol General Location
EL SOL GENERAL LOCATION TSX VENTURE: MMN 57
Slide 58: El Sol Location
EL SOL LOCATION El Sol is located in an area with numerous important historical and operating Ag and Au mines. TSX VENTURE: MMN 58
Slide 59: El Sol Concession
EL SOL CONCESSION 63ha 13CLM-072: 0.3m (102.5 – 102.8m depth) at 87ppm Ag, 1.88% Pb, 1.01% Zn and 0.11% Cu TSX VENTURE: MMN 59
Slide 60: El Sol Geology
EL SOL GEOLOGY The district geology consists of: a domal exposure of Cretaceous limestone, intruded by Tertiary mineralizing granitic rocks. Southern Silver (at Cerro las Minitas) has partly defined the Blind/El Sol zone, which appears to Cerro las Minitas extend onto El Sol. TSX VENTURE: MMN 60
Slide 61: El Sol Area Magnetic Survey
EL SOL AREA MAGNETIC SURVEY SSV released on their website this image from an aerial magnetic survey over their holdings. Note that at El Sol there is a magnetic anomaly, like at Cerro Las Minitas. El Sol Property Cerro las Minitas TSX VENTURE: MMN 61
Slide 62: El Sol-Magnetic Geophysical Survey
EL SOL-MAGNETIC GEOPHYSICAL SURVEY Buried Mineralizing IP Chargeability Intrusive? Anomaly El Sol Concession IP Chargeability Anomaly Southern Silver Blind/El Sol Zone Note the magnetic anomaly at the north side of the concession. This might represent a buried mineralizing intrusive, like at Cerro L
Slide 63: El Sol IP Geophysics
EL SOL IP GEOPHYSICS Chargeability Anomaly Mine Shaft at Primary IP Anomaly Chargeability Anomaly Chargeability Anomaly Southern Silver Blind/El Sol Zone Several linear IP chargeability anomalies were found, one at the NE side of the El Sol concession. Southern Silver’s (SSV-V) Blind/El Sol Zone app
Slide 64: El Sol: New Style of Mineralization
EL SOL: NEW STYLE OF MINERALIZATION Over-printing siliceous epithermal characteristics are common on mine dumps at El Sol. Assays of this mineralization show grades of up to 358ppm Ag, 1.945ppm Au, 19.6% Zn and 22.6% Pb. TSX VENTURE: MMN 64
Slide 65: Several small mines exist on the El Sol concession
Several small mines exist on the El Sol concession. It is a historical mining area since the 1600s and is in the Avino Mining District. SSV (1km southeast of El Sol) reports a resource at Cerro Las Minitas of 23,946,000 tonnes (inferred + indicated) at 108ppm Ag, 0.22% Cu, 1.04% Pb, 3.22% Zn and
Slide 66: Why Monarca Minerals?
WHY MONARCA MINERALS? Recent Option Agreement to acquire San Jose Project The San Jose property has the potential to host significant polymetallic mineralization associated with skarn, gossan and altered intrusive rocks based, on previous field mapping and geophysics The San Jose Property is c
Slide 67: Carlos Espinosa, President, CEO and Director
Carlos Espinosa, MBA President, CEO and Director cespinosa@slgmexico.com TSX VENTURE: MMN 67