Surge Copper Corp. · TSXV:SURG
Surge Copper — Investor Presentation (October 2022)
31 slides from Surge Copper's investor presentation, October 2022
Slide 1: Copper Discovery & Development in British Columbia
TSXV:SURG | OTCQX:SRGXF | FRA:G6D2 Copper Discovery & Development in British Columbia October0 2022
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) is being issued by Surge Copper Corp. (the “Company” or “Surge Copper”) for information purposes only. Cautionary Statements Concerning Forward-Looking Statements This Presentation contains "forward-looking information" within the meaning of applicable C
Slide 3: Investment Highlights
Investment Highlights ADVANCING SIGNIFICANT C U -A U -M O -A G DEPOSITS NEAR INFRASTRUCTURE IN C ENTRAL BC Top Significant Discovery Experienced Active Drilling Jurisdiction Resource Base Potential Team • Located in established • Ootsa: 439 Mt grading • Target-rich • High-productivity, • Highly expe
Slide 4: District Overview
District Overview S URGE CONTROLS A DOMINANT LAND POSITION IN THE B ERG -H UCKLEBERRY -O OTSA DISTRICT Competitive Advantages ✓Over 1 Bt of combined M+I resources1 at Ootsa & Berg ✓Deposits accessible by road, off Trans-Canada Highway 0.40% ✓Abundant fresh water resources ✓Multiple nearby port optio
Slide 5: Ootsa Project
Ootsa Project T WO PORPHYRY COPPER DEPOSITS | T OTAL M&I R ESOURCES OF 439M T @ 0.32% C U E Q 1 Favourable Location – Central B.C. Interior • The deposits at Ootsa are favourably located adjacent to Imperial Metals’ Huckleberry Mine & Mill complex • The project area has gentle rolling topography, a
Slide 6: New Ootsa Resource Estimate
New Ootsa Resource Estimate L ARGE - SCALE SUPER PIT AT S EEL | A TTRACTIVE GRADE PROFILE BY DEPTH Highlights Combined Seel & Ox M&I Resource Tonnes by CuEq Grade Range and Depth from Surface • Updated resource based on ~152,000m of drilling 0 to 100 m 11.3 9.5 13.4 47.8 • Combines West Seel, East S
Slide 7: Significant Increase in Resources
Significant Increase in Resources I NCREASE OF 96% IN M&I RESOURCE 1 Highlights • Approximately 50,000 metres of drilling completed since 2018 at Seel has significantly expanded mineralization in key areas, relative to the prior 2016 resource estimate • New drilling helped support a 96% increase in
Slide 8: Seel Metallurgy
Seel Metallurgy R ECENTLY COMPLETED LARGE - SCALE FLOTATION TESTWORK PROGRAM Highlights • Large volume of material (2,000 kgs) used to create 4 distinct Simplified Test Results from Bulk Concentrate Generation and Molybdenum Separation Tests composites representing different parts of the resource at
Slide 9: Berg Project
Berg Project M&I R ESOURCES OF 610M T @ 0.40% C U E Q 1 | L ARGE LAND PACKAGE CONTIGUOUS WITH O OTSA High Potential Exploration in Northern Portion of District Looking East Huckleberry Mine & Mill Complex Ootsa Deposits - 20ktpd Mill Capacity Combined M&I: 439 Mt @ 0.32% CuEq - On Care & Maintenance
Slide 10: Berg – Deposit with High-Grade Potential
Berg – Deposit with High-Grade Potential A UNIQUE BC PORPHYRY DEPOSIT | N EAR - SURFACE , HIGH - GRADE ZONES Highlights • Near-surface & high-grade zones: potentially amenable to low strip, early sequence mining • Notable compared to other BC porphyries due to the significant supergene enrichment zo
Slide 11: Berg – 2021 Achievements
Berg – 2021 Achievements R E - ESTABLISHED ROAD ACCESS | C OMPLETED 2,855 METRES IN 9 HOLES IN FIRST SEASON Objectives • Expand high-grade zones within existing deposit model • Advance understanding on structural controls • Fresh material for met program • Modernize drill hole database − Reduce over
Slide 12: Berg 2021 Drill Program
Berg 2021 Drill Program D RILLING ON TWO SECTIONS FOCUSING ON NORTHEAST AND SOUTHERN PORTIONS OF DEPOSIT Highlights • All 9 holes encountered long intervals of mineralization • Several holes intersected broad zones of high grade and bottomed in mineralization Looking west, showing collar locations a
Slide 13: Berg 2021 Drill Program: Selected Cross Sections
Berg 2021 Drill Program S ELECTED CROSS SECTIONS FROM 2021 DRILL PROGRAM Section A-A’ Section B-B’ 1) See End Note . 12
Slide 14: District Scale Exploration Opportunity
District Scale Exploration Opportunity L ARGE PIPELINE OF TARGETS IN ONE OF BC’ S MOST PROSPECTIVE COPPER DISTRICTS ✓2022 field program ongoing ✓Over 20 regional targets will be screened and advanced ✓Approximately $6.5 million budget for drill testing, ground geophysics, and 0.40% reconnaissance ex
Slide 15: New ZTEM Geophysical Survey
New ZTEM Geophysical Survey D EEP PENETRATING SURVEY | P OWERFUL IMAGING CAPABILITIES Total Divergence Apparent Resistivity Isosurface 14
Slide 16: Berg Regional Exploration Targets
Berg Regional Exploration Targets N UMEROUS HIGH - POTENTIAL TARGETS WHICH WILL SEE THE MAJORITY OF EXPLORATION WORK IN 2022 Target Descriptions Berg Regional Exploration Compilation Map • Overview: The northern portion of the district (broadly referred to as the Berg area) hosts numerous exciting,
Slide 17: Ootsa Regional Exploration Targets
Ootsa Regional Exploration Targets S EVERAL SMALLER - SCALE TARGETS IN CLOSE PROXIMITY TO EXISTING RESOURCES Target Descriptions Ootsa Regional Exploration Compilation Map • Overview: Within the active permit area at Ootsa, there are a number of new ZTEM anomalies within the Ox-Huckleberry Trend, an
Slide 18: Catalyst Outlook
Catalyst Outlook E XTENSIVE DRILL PROGRAMS | G ENERATIVE PIPELINE | P ROJECT DERISKING ✓Update on regional reconnaissance exploration activities ✓Drill results from regional target drilling program ✓Berg project updates 17
Slide 19: Capitalization
Capitalization A LL - EQUITY CAP STRUCTURE Equity Capitalization1 Key Announcements over Last Twelve Months $0.50 3.5 Basic Shares Outstanding 169.5M $0.45 West Seel West Seel 422m @ Seel Market Cap $25.4M 296m @ 0.52% CuEq Breccia 3.0 0.53% CuEq 20m @ Berg $0.40 1.53% 357m @ CuEq Cash $1.9M 0.59% C
Slide 20: Management & Board
Management & Board H IGHLY EXPERIENCED TEAM | T RACK RECORD OF SUCCESS IN DISCOVERY , CAPITAL RAISING , AND M&A Management Team Board of Directors Leif Nilsson | Chief Executive Officer & Director Christian Kargl-Simard | Non-Exec Board Chair Mining industry professional and former investment banker
Slide 21: Recent Activity
Recent Activity A CTIVE DRILLING AT W EST S EEL & B ERG | R AMPING UP FOR REGIONAL PROGRAMS ZTEM airborne survey Berg road improvements Ootsa drilling Berg drilling 20
Slide 22: Contact Info
www.surgecopper.com TSXV:SURG LinkedIn: Surge Copper Corp +1 604 718 5454 info@surgecopper.com OTCQX:SRGXF Frankfurt: G6D2 Twitter: @SurgeCopper Contact Info 21
Slide 23: What is the opportunity in copper?
What is the opportunity in copper? B IG M ARKET + S TRONG F UNDAMENTALS = A TTRACTIVE TO M AJORS Copper is the quintessential electric metal • Demand growth exposure to three “megatrends”: 1 Urbanization and infrastructure investment 2 Growth in renewable energy generation 3 Growth in electric vehic
Slide 24: Why BC?
Why BC? T OP MINING JURISDICTION WITH THE RIGHT INGREDIENTS FOR AN ESG FOCUSED FUTURE • British Columbia is a top mining jurisdiction that is well positioned for an ESG focused future ✓Stable jurisdiction and fiscal regime ✓Clear and thorough environmental permitting process ✓World class infrastruct
Slide 25: One of the Largest Resource Bases in Western Canada
One of the Largest Resource Bases in Western Canada G LOBAL M&I RESOURCE TONNES AND WEIGHTED AVERAGE C U E Q 1 GRADE 3,000 0.70% 0.60% Combined M&I Resource Grade (% CuEq) 2,500 0.50% Global M&I Resource (Mt) 2,000 0.40% 1,500 0.30% 1,000 0.20% 500 0.10% 0 0.00% Red Chris Gibraltar Casino Highland V
Slide 26: First Nation Involvement
First Nation Involvement S URGE ’ S EXPLORATION PROGRAMS AND WORK FORCE HAVE BENEFITED IMMENSELY FROM F IRST N ATION SUPPORT & PARTICIPATION Our Approach Cheslatta Carrier Nation members have been regularly employed at the Ootsa Project, providing exploration • Open communication and engagement rega
Slide 27: ESG a Driver of Long-Term Value Creation
ESG a Driver of Long-Term Value Creation I NCREASED FOCUS ON ESG RESPONSIBILITIES , OPPORTUNITIES , AND BEST PRACTICES Environmental Social Governance • Focused on project design • Field operations governed by up-to- • Oversight responsibility from opportunities to minimize carbon date policies incl
Slide 28: Berg Option Agreement
Berg Option Agreement S UMMARY OF KEY TERMS • Definitive Option Agreement with Thompson Creek Metals Company Inc., a subsidiary of Centerra Gold Inc. Option Agreement • Option to acquire a 70% interest in the Berg property • Five year option period • Initial grant to Centerra of $4 million in Surge
Slide 29: Ootsa Mineral Resources (2022)
Ootsa Mineral Resources (2022)1 P IT - CONSTRAINED USING C$8.27/ T NSR CUT - OFF Grade Gross Contained Metal Tonnage Cu Mo Au Ag CuEq Cu Mo Au Ag CuEq (Mt) (%) (%) (g/t) (g/t) (%) (Mlbs) (Mlbs) (Moz) (Moz) (Mlbs) Seel Measured 103.7 0.19 0.014 0.15 2.6 0.36 440 32 0.5 8.7 823 Indicated 276.1 0.16 0.
Slide 30: Berg Mineral Resources (2021)
Berg Mineral Resources (2021)1 P IT - CONSTRAINED USING 0.20% C U E Q CUT - OFF Grade Gross Contained Metal Tonnage Copper Moly Silver CuEq Copper Moly Silver CuEq (Mt) (% Cu) (% Mo) (g/t Ag) (% CuEq) (Mlbs Cu) (Mlbs Mo) (Moz Ag) (Mlbs CuEq) Supergene Measured 86.9 0.41% 0.027% 2.5 0.52% 789 52 6.9
Slide 31: End Notes
End Notes ✦ Except where specified, all occurrences of copper equivalent (“CuEq”) are calculated on a gross in-situ basis, with no adjustments made for recovery, using the following pricing assumptions for copper equivalency: $3.85/lb Cu, $1,750/oz Au, $12.40/lb Mo, $22/oz Ag. ✧ Economic viability c