Highway 50 Gold Corp. · TSXV:HWY
Highway 50 Gold — Investor Presentation (March 2014)
23 slides from Highway 50 Gold's investor presentation, March 2014
Slide 1: Highway 50 Gold Corp
HIGHWAY 50 GOLD CORP HWY – TSX-‐V MARCH 2014 2300 -‐ 1177 West Has.ngs Street T: (604) 681-‐4462 E: info@highway50gold.com Vancouver, BC V6E 2K3 F: (604) 681-‐0180 W: www.highway50gold.com TSX-‐V: HWY
Slide 2: Forward-Looking Statement
2 Forward-Looking Statement Certain of the statements made in this presentation may contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities law. Th
Slide 3: Introduction – Management's View
3 Introduction – Management’s View • Geology of Nevada is extremely complex • There are lots of red herrings • The metal endowment is a function of this complexity • Major mineral gold districts in Nevada occur along deep seated crustal breaks • Discovery of the next major gold find in Nevada will l
Slide 4: What Events Led Us to Porter Canyon and Golden Brew
4 What Events Led Us to Porter Canyon and Golden Brew • 1988 White Knight Resources Ltd., managed by the Leasks, initiated a Nevada exploration program • 1990 Placers’ Discovery of the Pipeline deposit (South Pipeline on the GAS claims, 5 million oz) • 1998 Placers’ Pediment Discovery – recognition
Slide 5: Refined Strategy
5 Refined Strategy • Bottom up approach - strong structural architecture on an accretive boundary with strong cross-structure • Lower-plate structural window, preferably with a pedigree • Anchored by gold in outcrop • Thick sections of favorable host rock • Strong magmatic component, multiple age in
Slide 6: Project Geologic Map
6 Project Geologic Map • Highway 50 Gold’s Golden Brew and Porter Canyon projects sit apart from the gold deposits of the Carlin & Cortez Trends • Golden Brew and Porter Canyon may be part of a new, relatively unexplored district “The third northwest-trending boundary is related to the western edge
Slide 7: Gold and Structural Boundaries
7 Gold and Structural Boundaries • In north-central Nevada, gold deposits are interpreted to be controlled by major buried regional structures acting as pathways for mineral rich hydrothermal fluids • Deep-seated density contrasts reflect persistent crustal fault zones as indicated by magnetic anoma
Slide 8: Volcanic Troughs
8 Volcanic Troughs • Fault-bounded volcano-tectonic centers, the Caetano and Eastgate Troughs of Mid- Cenozoic age, are testament to a complex geological history as recently as 18 million years ago (first described by Burke & McKee, USGS, 1979) March 2014 HWY – TSX-‐V
Slide 9: Pipeline-Cortez-Pediment vs Porter Canyon Project
9 Pipeline-Cortez-Pediment vs Porter Canyon Project • Important aspects of the geological setting in the Pipeline-Cortez-Pediment area are mirrored in the Golden Brew/Porter Canyon area • Production & reserves in the Cortez district deposits exceed 50 million oz of gold • The area at the Porter Cany
Slide 10: Nevada Mineral Potential
10 Nevada Mineral Potential • Evidenced-based targets based on prospectivity • Interestingly, Northumberland has a larger known gold endowment than the Quito area but Northumberland ranks lower in prospectivity After Milhalasky, 2001 March 2014 HWY – TSX-‐V
Slide 11: Cortez Area Geological Setting
11 Cortez Area Geological Setting • The Pipeline-Cortez goldfield is controlled by intersecting deep- seated crustal faults at the eastern terminus of the Caetano Volcanic Trough and further influenced by granitic intrusives • Karst development is an important part of the history of mineralization i
Slide 12: Bedrock Geology and Interpretation
12 Bedrock Geology and Interpretation • Here again, structural uplift generates two windows with gold systems at the corners of the Eastgate Volcanic Trough and accretive boundaries – controls recently recognized in the Cortez area • The key deep-seated structural mineral controls observed at Cortez
Slide 13: Golden Brew Joint Venture
13 Golden Brew Joint Venture • The Company has recently entered into a 50/50 joint venture with Regulus Resources Inc. (REG – TSX.V) on the Golden Brew property. • Regulus is led by a highly technical, successful group geoscientists and financiers. • Regulus can earn a 50% interest in the project by
Slide 14: Comparison – Cortez Area and Porter Canyon / Golden Brew
14 Comparison – Cortez Area and Porter Canyon / Golden Brew • The similarity in geological setting of the Pipeline- Cortez-Pediment area is easily compared to that of the under-explored Porter Canyon and Golden Brew properties March 2014 HWY – TSX-‐V
Slide 15: Porter Canyon Project
15 Porter Canyon Project • Rock samples taken from surface, consisting of alluvium-colluvium, returned economically significant gold values and anomalous arsenic & antimony • Sample PC32 was taken from outcrop and returned highly anomalous mercury in addition to significant silver and antimony March
Slide 16: Pediment Deposit – an Economic Lag Deposit
16 Pediment Deposit – an Economic Lag Deposit • What is a lag deposit? It is mineralized colluvium from a bedrock source. It may lie directly above or be transported from its bedrock (lode) source • Pediment deposit - a lag deposit sourced from the high-grade Cortez Hills lode • Numerous other Carli
Slide 17: Lag Discovery at Porter Canyon
17 Lag Discovery at Porter Canyon • Hole PCT-11-01 encountered anomalous gold, arsenic & antimony at its base • Only the bottom 200 feet (60 meters) was analyzed - hole did not reach bedrock • Calcium values are ten times background, suggesting the presence of a proximal oxidizing lode gold deposit
Slide 18: Karst Breccia Features
18 Karst Breccia Features • Karst development is an important feature of the gold metallogenesis in the Cortez district • Karst terrain and the various types of ensuing brecciation enhance the flow of mineralizing fluid, provide sites hosting gold deposition and, more importantly, karsting is formed
Slide 19: What's Next?
19 What’s Next? • Follow up the anomalous gold in the bottom of hole PCT-11-01 with a pattern of reverse circulation holes in 2014 • Current permitting comprises 20 sites with a planned phase 2 program of 5,000 metres • Drill pattern covers area between PCT-11-01 and recently discovered mineralized
Slide 20: Conclusions – Porter Canyon Target
20 Conclusions – Porter Canyon Target All evidence points to Porter Canyon as a compelling exploration target: • Lag deposit gold and Carlin-type pathfinder elements occur in pediment section (70ppb Au over 200 feet [60m]; up to 180ppb Au over 5 feet [1.5m]) and numerous float boulders (up to 3.7 g/
Slide 21: Share Structure
21 Share Structure Shares issued and outstanding 26,697,570 Warrants: $0.60 to February 28, 2015 7,051,525 $0.45 to February 28, 2015 128,100 Options: $0.35 - $0.61 1,850,000 Fully diluted 35,727,195 $0.43 Share price (Feb 28, 2014) $11.5 million Market capitalization – issued and outstanding Workin
Slide 22: Key Personnel
22 Key Personnel Gordon P. Leask, P. Eng. – President, CEO and Director Mr. Leask has a Bachelor of Applied Science degree in geological engineering from the University of British Columbia and is a Professional Engineer. He has served as Director of Goldrock Mines Corp. since 1991 and has over 30 ye
Slide 23: Cautionary Statements
23 Cautionary Statements This presentation has been prepared by Highway 50 Gold Corp. (the “Company”). Information included in this presentation regarding the Company’s mineral property has been compiled and reviewed by Gordon P. Leask, P. Eng., the President and Chief Executive Officer of the Compa