Winchester Equity Corporation · TSXV:WEC
Winchester Equity — Three Valley Copper — Investor Presentation (September 2021)
31 slides from Winchester Equity's investor presentation, September 2021
Slide 1: Building a Mid-Tier Chilean Copper Producer
PRODUCING EXPLORING GROWING BUILDING A MID-TIER CHILEAN COPPER PRODUCER September 2021 TSXV: TVC
Slide 2: Disclaimer
Disclaimer Cautionary Statement Regarding Forward-Looking Information TSXV: TVC Certain statements in this presentation or the accompanying oral remarks, including in response to questions, contain forward-looking information (collectively referred to herein as the “Forward-Looking Statements”) with
Slide 3: Investment Highlights
Investment Highlights TSXV: TVC Producer with Near- Term Underground Infrastructure Partnerships Exploration Upside Expansion Three Valley Copper has a 91% ~US$250M fully built Vale Strong partners Geologic potential and strategic interest in two deposits in Chile land package infrastructure – permi
Slide 4: Directors
Directors TSXV: TVC M I C H A E L S TA R E S I N I C LENARD BOGGIO JOAN E. DUNNE T E R R E N C E A . L Y O N S ( I C D. D ) ( I C D. D ) ( I C D. D ) ( I C D. D ) President, CEO, Director Independent Director Independent Director Independent Chairman Mr. Staresinic has 20 years of experience in the
Slide 5: Executives and Advisors
Executives and Advisors TSXV: TVC I A N M A C N E I LY LUIS VEGA JAREK JAKUBEC CFO & Corporate Secretary CEO at Site Consulting Mining Engineer, Block-Caving Jarek is a cave mining specialist with over 35 years of worldwide Mr. MacNeily brings more than 20 years of executive financial Luis Vega was
Slide 6: Differentiators and Catalysts
Differentiators and Catalysts TSXV: TVC • Previously developed by Vale, spending ~US$250 million on Differentiator # 1 property including associated infrastructure Infrastructure • 4-stage crushing and agglomeration, 7,000tpd capacity • SX-EW processing plant – 18,500tpa and room for expansion • Cur
Slide 7: Differentiator #1: Facilities & Infrastructure Already in Place
Differentiator #1: Facilities & Infrastructure Already in Place TSXV: TVC 2005/ 2008- 2011/ 2013- 2013 2006 2010 2012 2017 Vale S.A. ~US$250M Production Vale sells Limited discovers infrastructure start-up project to local operations Papomono/ Don build by Vale mining Gabriel deposits contractor 202
Slide 8: Catalyst #1: Papomono Underground
Catalyst #1: Papomono Underground TSXV: TVC Block caving construction = underway to access Completion Ramping up Peaking in 102 million pounds of Average grade Papomono end of 2021 during 2022 2023/2024 contained copper of 1.51% Masivo deposit 8
Slide 9: Catalyst #1: Papomono Underground Status
Catalyst #1: Papomono Underground Status TSXV: TVC CONSTRUCTION CAPEX BUDGET OPERATING COST • 71% of horizontal • $4.3 million • Within 5% of • Expected life of development complete construction original budget mine operating • 85% of vertical capex remaining cost of US$11.29/t development complete
Slide 10: Construction: Papomono Underground
Construction: Papomono Underground TSXV: TVC Papomono N Masivo • Papomono Masivo is the high grade block cave core of Papomono, ideal for block- mine design caving • Plan view of existing underground workings together with Papomono Masivo block cave mine design (yellow) Plan view of existing Papomon
Slide 11: Production: Don Gabriel Open Pit
Production: Don Gabriel Open Pit TSXV: TVC N • Don Gabriel open pit (shown) currently producing 60,000 to 80,000 tonnes per month ore feed • One of two principal sources of ore • The extent of Don Gabriel remains only partially tested by deeper drilling 200 m 1. The effective date of the Mineral Res
Slide 12: Fulfill Capacity with High-Grade, Low-Cost Ore
Fulfill Capacity with High-Grade, Low-Cost Ore Preliminary Guidance 1 2022 and 2023 TSXV: TVC Operating information 2022 (Ramp-Up) 2023 (Near-Full Production) Primary Ore Source Don Gabriel / Papomono Papomono Copper Cathode Production (T) 8,000 - 10,000 13,000 - 16,000 Copper Cathode Production (lb
Slide 13: Unleveraged NPV: Torqued to Copper Price
Torqued to Copper Price TSXV: TVC Technical Report Derived by management ~US NPV(8%) After-tax @~$4.50/lb 1,2 $350 1000% $300 > After-tax IRR1 @~$4.50/lb 900% 800% Unleveraged NPV ($MMs) $250 700% 600% $200 IRR 500% $150 400% $100 300% 200% $50 100% $0 0% $2.75 $3.03 $3.30 $3.58 $3.85 $4.13 $4.40 $5
Slide 14: Differentiator #2: 46,000+ Hectare Land Package
Differentiator #2 46,000+ Hectare Land Package TSXV: TVC Landsat 8 Satellite Data Image TVC offers near-mine exploration targets Panchromatic 15m Resolution and untested high-quality targets within the broader licence area • Near-mine resource exploration is underway • Limited development drilling s
Slide 15: A Great Neighborhood: Many Mines, Projects and Exploration Potential
A Great Neighborhood has… Many Mines, Projects and Exploration Potential TSXV: TVC TVC Google Earth Image Displayed in QGIS 50 km Google Satellite Image Displayed in QGIS 15
Slide 16: Catalyst #2: Near-Mine Exploration Priority Drill Targets
Catalyst #2: Near-Mine Exploration Priority Drill Targets in Structural Context TSXV: TVC • Structural control of known deposits: Priority Drill Targets • Complex array of structures. Clear North- South corridors • Papomono located at likely releasing 3rd Party Licences bend on major fault between g
Slide 17: Catalyst #2: Near-Mine Exploration Geophysics Guides Targeting
Catalyst #2: Near-Mine Exploration Geophysics Guides Targeting TSXV: TVC Existing drill hole traces (white)) Ground Magnetics Planned drill hole traces (yellow) Analytic Signal IP Chargeability 100m Depth Interpreted faults (blue) Artisanal mining pits (green)) Papomono Outline N 3rd Party Licences
Slide 18: Catalyst #2: Don Gabriel Depth Potential
Catalyst #2: Near-Mine Exploration Don Gabriel Depth Potential TSXV: TVC • Existing drill holes beneath Don Gabriel Don Gabriel Pit 2021 Pit have intercepts exceeding 2% copper. • Additional planned drilling will further explore the extent of Don Gabriel beneath the pit. Planned drill hole to furthe
Slide 19: Catalyst #2: Porphyry Target No Previous Exploration
Catalyst #2: Porphyry Target No Previous Exploration TSXV: TVC ASTER Satellite Data – OH Alteration Minerals Index1 Known skarn Grey-scale image with lighter shade showing likely phyllic alteration copper deposit Phyllic alteration in core Surrounding topographically- elevated darker rim N 2 km 2 km
Slide 20: Environmental, Social and Governance
Environmental, Social and Governance TSXV: TVC Environmental Social Governance • Reforestation initiatives in • 80% of MTV’s suppliers are • Public company practices; conjunction with local local businesses TSXV listed communities – >70,000 trees • 75% of MTV’s combined • Code of ethics planted to d
Slide 21: Capital Structure
Capital Structure TSXV: TVC Share Structure Debt Structure Enterprise Value Share Price (Sep 23, 2021) $0.41 • $45M* prepayment facility provided by Anglo Market Cap (Sep 23, 2021) C$23 M American and Kimura Capital Issues & Outstanding: 55.8 M USD equivalent US$18 M Stock Options: (avg. exercise C$
Slide 22: Investment Thesis Recap – Why TVC?
Investment Thesis Recap – Why TVC? TSXV: TVC Supply/ demand disruptions Fully built High torque to infrastructure – copper exhibits improving permitted, attractive long- copper prices operating and term market fundamentals expandable Strong partners – Geologic potential Strategic and strategic partn
Slide 23: Contact
Contact 18 King Street East, Suite 902 Toronto, ON, M5C 1C4 www.threevalleycopper.com Michael Staresinic President & CEO Business: 416.943.7107 mstaresinic@threevalleycopper.com 23
Slide 24: Appendix
Appendix 24
Slide 25: Macro: Copper Fundamentals – Why We Like Copper
Macro: Copper Fundamentals – Why We Like Copper TSXV: TVC Structural Supply Deficit Expected • Development projects require higher prices – years of low copper prices and under-investment in new supply means few new projects in the pipeline • 2017 saw first decline in copper output in 15 years1 • De
Slide 26: Macro: Copper Fundamentals – Why We Like Chile
Macro: Copper Fundamentals – Why We Like Chile TSXV: TVC Total Global Copper Producers 1 Chile Peru China • Chile is home to the largest concentration of 7% 5% 4% US world-class copper deposits 7% 4% Congo 4% • #1 global copper producer – 28%1 8% 4% Australia 2% Zambia • #1 global copper reserves –
Slide 27: Geological Setting: Proven Copper Fertility
Geological Setting Proven Copper Fertility TSXV: TVC Volcanosedimentary Basin • Manto-style copper deposits including our Papomono and Don Gabriel mines are located in a Cretaceous Granitoids Minera Tres Valles volcanosedimentary basin. License Area Outline (white) • Manto-style mineralisation inclu
Slide 28: Near-Mine Exploration: Don Gabriel and Cumbre Depth Extensions
Near-Mine Exploration Don Gabriel and Cumbre Depth Extensions TSXV: TVC Existing drill hole traces (white)) Cumbre Depth Extension Donut IP Chargeability Core Planned drill hole traces (yellow) Papomono Papomono underground Drill hole (black trace) to test core of donut-shaped IP chargeability Under
Slide 29: Catalyst #2: Canela Target Ferric Oxide Anomaly
Catalyst #2: Canela Target Ferric Oxide Anomaly & Surface Copper Oxides TSXV: TVC ASTER Satellite Data – Ferric Oxide Minerals Index1 Lighter shade showing ferric oxide alteration N • Canela is an existing MTV exploration area with reported copper oxide veins and mantos which overlaps with the Ferri
Slide 30: Catalyst #2: District Exploration Targeting
Catalyst #2: District Exploration Targeting TSXV: TVC Near-Mine Priority Drill Targets N Papomono - Don Gabriel Mines • Our licence area hosts multiple clusters of artisanal copper Artisanal Copper Pit Clusters mining pits which are clear target areas. Artisanal Copper Pits • Our Papomono – Don Gabr
Slide 31: Debt Structure
Debt Structure TSXV: TVC Senior Secured Unsecured Term Debt Subordinated Term Debt • $45M prepayment facility • $17M converted from accounts • $5M converted from accounts provided by Anglo American payable to unsecured 5 year payable to unsecured and Kimura Capital term debt subordinated term debt •
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