Slide 1: Peru's Next Primary Zinc Producer – Corporate Presentation
TSX.V: PRS Peru’s Next Primary Zinc Producer Corporate Presentation January 2017 www.prismresourceinc.com
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements and factual information that are current as of the date the presentation was originally delivered. Prism Resources Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as
Slide 3: Corporate Overview
Corporate Overview Prism Resources Inc is a Canadian precious metal explorer and developer focused on La:n America and headquartered in Vancouver, Bri:sh Columbia. Prism is comprised of a strong team with significant resource sector experience and a well-‐established track record of success, globall
Slide 4: Zinc Fundamentals
Zinc Fundamentals Main End Uses of Zinc • Zinc is the 4th most consumed metal on the planet • The biggest use of Zinc in the world is coa:ng steel (Galvaniza:on) which is approximately 50% of the Zinc market • Die cas:ng is the second largest consumer of Zinc at approximately 17% • Following is Zinc
Slide 5: Zinc Demand and Supply
Zinc Demand and Supply Ø Global zinc demand con:nues to grow with consump:on driven by con:nued interna:onal GDP growth (Asia, India, Europe and North America), urbaniza:on/infrastructure development, and also as a “mid-‐cycle” commodity with expanding markets for consumer goods (automobiles, appl
Slide 6: Why Invest in Prism?
Why Invest in Prism? § Well posi:oned to become a near term producer with highly-‐experienced board and management team § Former producing polymetallic mine with quality infrastructure in place § Stable geo-‐poli:cal environments conducive to explora:on and development § Areas with elevated zi
Slide 7: Management
Management BOB (ROBERT) BAXTER President & CEO Mr. Baxter brings over 25 years of experience principally in La:n America, in the mining industry. Mr Baxter has held a number of important posi:ons in La:n America . In recent :mes Mr. Baxter was a Director of Chariot Resources Ltd.; un:l September 201
Slide 8: Board of Directors
Board of Directors BOB PARSONS CPA, CA Mr. Parsons is a Chartered Accountant and re:red Pricewaterhouse Coopers partner auer a career spanning 34 years. He currently serves on the Interna:onal Affairs Commiqee of the Prospectors and Developers Associa:on of Canada. He has served on the boards of the
Slide 9: Capital Structure
Capital Structure Share Structure – January 2017 Issued & Outstanding 49,350,000 Op:ons 4,550,000 Warrants 8,570,000 Fully Diluted 62,490,000 52 week high/low $0.23/$0.18 Market Capitaliza:on $9,870,000 • No Debt • Management / Insiders hold 32.2% Prism one-‐year share price performance (~15 millio
Slide 10: Operating in Stable Jurisdictions
Operating in Stable Jurisdictions Aurora and Sunday Lake properQes, Ontario Huampar Project, Peru Prism maintains a 7.5% Net profit interest on Detour Gold’s Aurora and OperaQonal Overview Sunday Lake properties located adjacent to its Detour Lake gold Loca:on West-‐Central Peru mine in Ontario, Ca
Slide 11: Huampar Deal Structure
Huampar Deal Structure Trevali Agreement • Prism signed the defini:ve agreement with Trevali dated June 13, 2016 whereby Trevali must transfer 100% of the outstanding shares of its Peruvian subsidiary Nueva Condor S.A., 100% owner and holder of the Huampar property and associated mining rights for a
Slide 12: Huampar Zinc-Lead-Silver Project
Huampar Zinc-Lead-Silver Project Project Highlights • Former producing silver mine in the Central Peruvian Polymetallic Belt with no modern explora:on • Past produc:on of approx. 2.5 million tonnes averaging 185 g/t silver, 1.6 g/t gold, 5% zinc and 3.8% lead with excellent metallurgical recoveries
Slide 13: Huampar Property Location
Huampar Property Location The Huampar Project is located in the well-‐known Central Peruvian Polymetallic Belt of the Central Andes AcQve polymetallic mines in a 100 Km radius from Huampar TSX.V: PRS www.prismresourceinc.com 13
Slide 14: Huampar Status and Claims
Huampar Status and Claims • The overlying owner, Nueva Condor is presently in Chapter 11 proceedings • Advanced project with near term produc:on poten:al. • Former producing mine from late 1950s to 1991 at ~250tpd. From 1997 – 1999 at 350-‐400tpd. • The property is comprised of approximately 46 con
Slide 15: Huampar Regional Geology
Huampar Regional Geology 336000 340000 344000 348000 ® 1 Pio Pio 8724000 8724000 Camino Finlandia - Suecia The region is dominated by andesi:c Aurelio San Juan Sorpresa Sarachin volcanic sequences Yau Yau 8720000 8720000 Mineralized veins typically have Colqui _ ^ significant strike lengths (plus-‐1
Slide 16: Mining Inventory
Mining Inventory Historic Produc:on Table YEAR Tonnes Au g/t Ag g/t Pb% Zn% Cu% • Historic only, however most 1983 37,782 2.7 229 2.07 2.33 0.31 recent es:mates were by 1984 112,496 1.02 135 2.59 2.75 0.28 reputable consul:ng companies 1985 109,696 1.4 163 2.85 2.93 0.40 and 3rd par:es 1986 101,616
Slide 17: Metallurgy
Metallurgy Historically Huampar produced three high quality (due to course nature of mineraliza:on and limited amount of pyrite in the system) concentrates – a gravity concentrate to recover gold, a lead-‐silver concentrate and a zinc concentrate. Precious metals predominantly report to the Pb conc
Slide 18: Existing Infrastructure
Existing Infrastructure The property is in the Andes and accessible largely by the central highway and unpaved roads from Lima. The historical opera:ons and exis:ng infrastructure indicate the property can support mining, processing as well as waste and tailings disposal. The exis:ng plant is locate
Slide 19: Huampar Exploration Potential
Huampar Exploration Potential All veins remain open at depth and predominantly along strike. Near-‐term upside includes depth extensions of all the major veins and structural targe:ng of thicker, high-‐grade ore-‐shoots in par:cular the Finlandia and Suecia veins as well as the Condor Pasa mine t
Slide 20: Huampar Exploration Potential continued
Huampar Exploration Potential continued Based on this ini:al very cursory examina:on the following first-‐ pass low-‐risk targets present: Nuruega Structure: Located immediately adjacent to Finlandia Alta and has seen limited underground explora:on from the 2nd level. If geometry is similar to Finl
Slide 21: Development Strategy
Development Strategy Near Term Events Community Agreements Q1 2017 purchase surface rights Consolidate mining concessions in the area Explore principal Finlandia sec:on hos:ng historic reserve which represents 4 year mine life at 500tpd throughput. Engineering work to rehabilitate the current site a
Slide 22: Contact Information
Contact Information TSX.V: PRS www.prismresourceinc.com 22