Sego Resources: Miner Mountain - A Compelling Gold Zone in a Copper-Gold System

0:08 Hello everyone and welcome to Segoe Resources live investment summit today hosted by 6. I'm pleased to introduce the CEO and director of Segoe, J. Paul Stevenson. Paul is going to walk us through our company presentation and after we'll be taking some questions live. Remember you can submit your questions using the Q&A panel found on the right hand side of your screen at any point during today's presentation. As always, this event is being recorded and will be available to watch on SIX.com in the coming days. So without further ado, Paul, the show is yours.

0:35 Let's hear it. Hello, and thank you very much for coming to this webinar. It's not only my first one on SIX.com, it's actually the first webinar that I've ever done and I hope this will be entertaining and informative for you. I'm going to speak about our high-grade copper,

1:06 gold and gold project. We're about 25 kilometers, 15 to 25 kilometers north of the Copper Mountain Mine. We have a new gold zone that we are drilling now to expand it and we have new copper gold targets developing as well.

1:26 This is our standard forward-looking statement. I will be making forward-looking statements and this PowerPoint has been reviewed by our qualified persons.

1:44 So, our new target, which is the gold zone, it has consistent gold grades and we have done leach gravity tests and which indicated 95.8% recovery of the gold. Geophysics, geochemistry and geology indicate there could be a nearby copper gold porphyry. The gold zone's about 280 meters east to west and open to the west where we're currently drilling. It's about 130 meters wide, open to depth and grading just under a gram per ton. The new south gold zone developments, not only gold, but we do believe this is a distal expression of a copper-gold porphyry at depth.

2:43 Where we sit is in the central-south portion of British Columbia. You can see on the map that we are just north of the Copper Mountain Mine, to the north of it is Highland Valley, New Afton Mines, Gibraltar, Mount Polly, Mount Milligan, Huckleberry. Mount Milligan, Huckleberry. They call this belt of rocks the Porphyry Highway. There are 8 currently operating porphyry copper mines there, strong government support for responsible resource development, and endowed with over 1000 kilometers of copper gold porphyry perspective geology.

3:29 And this focuses us in a little closer. There are a number of majors working in the area including TAC, Xstrata, HCM, Kazan, Mitsubishi Materials, Antofagasta.

3:47 All of these mines in the area did contain high-grade copper gold at the start of their mine life. They may show lower grade now but that's because they're mature mines. I'd like to mention too that just to the north of us is the Kodiak property being developed now.

4:15 To zoom us in a little closer, we're right on the edge of Princeton, British Columbia. We have excellent highway infrastructure, power to the southwest corner of our property. So infrastructure-wise, this is a beautifully prepared location. The First Nations in the area, the Upper Smoky Main Indian Band, we have a memorandum of understanding with them from before we started work and the Upper Smoky Indian Band is noted they were miners pre-contact most of the people in that band are in the mining industry so and have a lot of expertise in reclamation, which I'll get into a little later.

5:05 We work very closely with them.

5:13 This picture is using a zoom lens. Copper Mountain mine isn't quite so visible with the naked eye. You can see the waste dumps but this clears it up quite a lot. The reserves in 2018 were 133 million tons of .35 copper, .12 gold with resources of another 244 million tons of 0.33 copper and 0.11 gold. They are still doing exploration at Copper Mountain and expanding the Ingerbell Pit as we speak. Originally, copper was discovered in this area in what's called the Regal Landslide.

6:04 What had happened is you can see central in this slide a cliff face. There was a major slump and slide probably from the time of glaciation when the glaciers were melting. And the Regal Land slide is an area covered with 1% copper. It's slid down from the hillside. Nobody has ever found the actual source of that slide yet, including us. Granby Consolidated Mining discovered what we call the Granby Zone in the 1950s. We optioned the property in 2007 and drilling defines mineralization in the Cuba Zone, which contained 100 meters of 0.95 copper 0.5 grams of gold and hole 8 had 52 meters of 0.4 copper 0.12 grams of gold.

7:00 Systematic mapping trenching soils, magnetics and IP surveys have revealed new targets to us. This area, we have done drilling in and we will go back to it, but 2 years ago we got on to our Southern Gold Zone.

7:27 The new Southern Gold Zone was discovered by trenching. Originally back in about 2008, we had the previous exploration done by a number of companies in the area that we now control, did trenching with bulldozers. And they left those trenches open and this is on private ranch land and Linda Allison the rancher was not really thrilled with mining companies so we had a permit to open up all those old trenches, map them, sample them, and then reclaim them. Our reclamation work on that stage of the project earned us the best reclamation of British Columbia in the mining exploration category.

8:19 The reclamation was all reseeded and she has a ranch land back in pristine condition. In one of those trenches in the southern gold zone, We opened up a trench that had absolutely no copper in it. It looked rather boring, but we sampled it anyway and found 1 meter of 1 ounce per ton gold, 39 grams. We always meant to come back to it, but hadn't until about 2 years ago. The zone is located above a chargeability high anomaly, the northwest margin of a magnetic eye and it has excellent Cape Valspar alteration calcite albite. I'll go into that a little deeper further on But these trenches were giving us up to over 2 grams of gold in places, rather continuous, so we decided we had to drill this target.

9:34 Further mapping and So, further mapping and working from our drilling, we've been able to define the geology a little better. It is a diorite porphyry, but it's a micro diorite.

9:54 It's very hard to see the alteration. We've done a lot of thin sections to really understand this deposit. The diuride porphyry is a serrate textured, uncrowded micro porphyry that contains larger phenocrysts ranging from 0.5 to a millimeter that are cemented in a very fine-grained crystalline ground mass. Biotite microdiorite, shredded biotite, petrographically recognized in samples from holes 46, 47, and lower 50. The intrusive phase is spatially associated with the southern margin of the gold zone. The red line you can see going around it is the solid red line is the actual gold zone that we've defined to date.

10:48 The dotted line going off to the southwest is where we're drilling now to expand the gold zone and see if we get the continued grades.

11:06 And the alteration that we've defined on this map is really derived from earlier mapping and hasn't been updated with the petrological observations. In general, the alteration assemblages contain carbonates, mainly calcite, can be syn or post mineralization. The Cape Fell spark to the north of the southern gold zone is most likely primary, whereas in the southern gold zone we think it is commonly secondary. Biotite and possibly hornblende, hornfels of sediments or tufts, albite, ceracite and ceracite alteration

11:52 could be added to the alteration map depending on the scale. And in this picture, I'd like to note, to the right you'll see a reclaimed trench, it's seeded, that's all grassland now. As we trench or drill at the end of every phase, In fact, as soon as the drill has moved off a drill hole, we do reclamation because this is ranch land and there are cattle grazing there, so we reseed and reclaim everything as we go. The trenches, just to give you an idea, 36 meters of a gram gold, 87 meters of a gram gold, so they're very consistently mineralized across this area.

12:46 Mineralized across this area. The yellow outline is showing you the soil anomaly as well. So this is hard to read, so I'm going to read out the grades of the drill holes that you can see. The upper left are the results from 2021. Are the results from 2021. Diamond drill hole 12 gave us 1 meter of 4 grams.

13:34 Then that was an older hole. Then in our new holes we had 46.5 meters of a gram 88 meters of a gram hole 48 had 12 meters of 0.1 gold from 139 to 152 meters and 2 meters of 0.8 gold from 172 to 74. Hole 49 had 88 meters of 0.69 grams.

14:35 And that was interesting, that's in hole 54, which is on your lower left showing, drilling to the north, or 55 drilling to the north, it had 88 meters of 0.69 grams, but it included 0.1 copper over about 20 meters. So the gold mineralization is hosted in the microdiorite and trojan, is associated with pervasive calcite, chlorite, cerosite, albite and kefeldspar, disseminated pyrite and hematite, and trace chalcopyrite.

15:26 The chalcopyrite cannot be seen in the drill core. The issue we have with drilling this is there's nothing to tell you when you're in the gold zone visually. The chalcopyrite was found in thin sections, very, very fine-grained traced chalcopyrite And it does indicate to us that the source is a copper gold porphyry, either to the north or to the south, and probably at depth. The zone so far is 280 meters east-west, 130 meters north-south, and it's open to the west and to depth.

16:13 I should say We only have 1 hole that closes it to the east, and we will do more drilling over there just to make sure that we have closed it.

16:28 This is showing our first hole. There is a deeper IP chargeability anomaly that, so we have drilled a 500-meter hole to intersect that.

16:45 And again, it's in the upper, you'll see in the upper portion of the gold zone, there's a smaller IP anomaly that may be related to it. The problem with this IP anomaly that we're targeting is it's the southernmost line of the IP survey, so it's a one-line anomaly, so spatially it's very hard for us to tell where that target really is. There's no overlapping magnetic high that I mentioned as well before. So again, we think we're looking for a subjacent porphyry copper gold target while we're drilling the gold zone.

17:35 The red dot is that deep hole that we've just completed. We're now drilling a further 6 or 7 holes to the west to see if we can expand this southern gold zone. That will give us a very substantial gold resource and hopefully we'll find more indications of a copper gold porphyry subjacent or adjacent to the gold zone.

18:19 So the phase 1, we had a phase 1 and phase 2. Sadly, one of our employees had a major, one of our younger employees had a major heart attack right before the start of the program which delayed our start. So there we're now drilling 2,000 meters in 1 phase and we do plan to be drilling into June, probably the middle of June. The company is run for leanly. Our G&A burn rate is about $15,000 a month and 70% of all the money we've raised has been spent on exploration.

19:09 We've spent about $6 million on the property so far and the insiders own approximately 35% of the company.

19:20 This slide will give you the details of potential dilution. I have at the bottom a recent share price of 10 cents a share in the last week that has changed along with everybody else.

19:45 And management of the company is a team effort. All of our directors are actually in touch regularly. We have audit committee meetings very, very frequently. I'm the CEO. Meetings very frequently. I'm the CEO, Sven Golan is the director who has spent 16 years as a private banker in Germany and Austria and a company that he works with currently is the largest shareholder in Sego. Selina Tribe is our CFO and she is a P.Geologist, a professional geoscientist as well, with over 20 years experience.

20:37 And James Allen Hilton I've worked with for probably over 30 years. Our consultant is Ron Britton. Our consultant is Ron Britton. Dr. Britton specializes in the exploration and development of mineral deposits.

21:01 And I'd like to add here that I am always available. If you phone our telephone, our office phone, if I am not in the office, it'll come to my cell phone. I have answered phones while standing at the drill. I'm always available. And I really enjoy taking calls from shareholders. If you have questions and want to follow up with me at any time, just give me a phone call. I'm always glad to take phone calls and emails. Absolutely, do not hesitate, please. And I'll wrap up with this slide showing the options and warrants outstanding to give you a better idea of when these expire and hopefully more monies that can be raised for continued expiration from the warrant exercise.

22:03 And I'd gladly welcome any questions. As I said, this is my first time doing a webinar. I probably went too fast or something. So Please don't hesitate to question me. Well, Paul, I think you did a great job, especially for the first time. I'd like to remind everyone in the audience that if you would like to ask any questions, please do so using the Q&A tab found on the right hand side of your screen, separate from the public chat, but of course we can always accommodate as needed. And Paul, we already have a question coming in from Michael. Do you have a portable or a field-based SWIR and XRF units to track alteration and copper contents in real time? Yes, we absolutely do.

22:51 In fact, in hole 46, we have a young man that does our geotech work, who would, he can actually teach using the XRF and he loves using it and we got he sent I was driving from the property back to Vancouver I'd stopped at the rest stop to check where I got back in cell range, check my emails, and he sent me a screenshot of the XRF showing a gold kick. Now gold does not kick on an XRF unless it's very high grade. So I immediately texted him back and said, is there something wrong with the XRF? Is there interference? And I got a text back, he also splits the core, saying, I thought you'd say that there was a photograph of a small speck of visible gold.

23:45 So we do XRF the core. That's great. Another question has come in. How far north is the Cuba zone of the southern gold zone? That would be about a kilometer, 2 kilometers maybe. I haven't actually laid that out. I'll go back and we can take a look. And that brings up a very good point. Yeah, it's about 2 kilometers or a kilometer and a half. This property was held in the 60s by numerous small claim blocks. Silver Standards, Climax Copper had some along the Regal Zone, Granby was up on top, Bethlehem Copper had a small area.

24:40 We're the first company to have this whole porphyry system and it's a giant system in 1 claim block.

24:51 And When you see clusters of targets like that, that's very typical for an alkalic copper gold porphyry. It was once described to me as a calc-alkalic copper-gold porphyry, like say the Highland Valley mine. It's a big yolk, like a fried egg, with a big yolk with lots of white around it. The alkalics are smaller yolks, very rich, usually in gold, as well as copper, and numerous yolks within a small white area. So they're very difficult to find. You have to... It'll go from your, what we call, outer propolytic alteration to the ore grade. It can do it in meters.

25:41 So you don't get the signs. And all of these targets would be related within the same large porphyry system carried in this microdiurite. Thanks Paul. Paul wants to know, another Paul, what's your best guess for reporting assays for this program? Will you wait for all holes? We usually wait for all of the holes. We're discussing that now because it's a longer program. Although The top half of our first hole is not expected to have results until early June. So if we're delayed with time in getting assays, we'll put them out

26:33 several holes at a time, 1 or 2 holes at a time. All right, a question if you're going to be attending the Vancouver Resource Investment Conference next week. Oh yes, I'm sorry, I should have mentioned that. Booth 801 and I will be there. Yes, definitely. Perfect, sounds good. Is the Cuba geology the same as the southern areas, both the southern gold and that deeper copper target? I wouldn't say the same. I'd say they're very, very similar. We think the Cuba zone is actually slid from the north somewhat on a flat fault, so we'd be moving to the north of the Cuba towards Granby and beyond looking for the root of the Cuba.

27:21 They're all very similar geology. They're all in a monazodiorite, diorite, microdiorite. They're all nickel or rocks. Fair enough. Is there going to be more IP planned? Yes, we do plan to do more IP in the Southern Gold Zone, of course, where it's not covered, and to the north of our IP boundary, which is just north of the Granby zone. We also, by the Granby zone, and we now consider it a part of the Granby zone, is an excellent IP target that we call the Quintana Zone. Quintana Minerals in the 60s discovered a large IP target there.

28:12 And we did new modern Titan 24 IP and the exact same target came up. So whoever did the IP in the 60s for Quintana obviously did an excellent job. So just north of the Quintana we'll be doing more IP. Great. Is there an existing gold processing plant locally that be economic for 1 GM gold?

28:42 Well, the gold is leachable and as I said we're 15 kilometers north of Copper Mountain, which has a large mill, great throughput going through Copper Mountain now, and a mining lease. Hopefully if we drill a gold ore body we'd be able to vat leach it there or and crush it there. Great. So outside of the red gold zone, has there been any sampling activity or is the red channel kind of it? Oh, We've been sampling, detail mapping the whole property over time. In fact, we have found the microdiorite, the samples haven't been tested yet, right up to the creek that you can see running through the left-hand side of the slide. I'll just get up a better slide to what we believe is the west edge of the gold zone.

29:49 You can see where the drill holes, excuse me, the new drill holes complete on the west edge, the left edge of this slide. And we do have the right geology in that area. So we have been sampling across the property but there's very little outcrop. It's mainly till covered. Excellent. Beautiful grassland. You can actually move a drill and get to every site. Very few trees on the property. Another question, you seem to have a number of targets. How common is this?

30:31 I would compare it, in an alkalic copper gold porphyry, this is fairly common, as I said, they tend to cluster. Copper Mountain has been mining for nearly 100 years, and they have a number of pits and ore bodies. What we've learned more recently that alkalic copper bowl porphyries go to extreme depth, that's why they use the block caving. The Kodiak property to the north of us has a number of targets as well. That's fairly common in the Snickera and it's common because these are alkalic systems. Great. Speaking of alkalic porphyry, I have a question relating them so I'll go to that now.

31:19 Often they're associated with platinum group metals. Are you testing for those? Early on we tested for that and we did get play a palladium kicks on the property and in the intrusive so yes that was one of the first tests we did. Fair enough. Could you prospect using percussion drills to get past the topsoils? We have done that in the past. It does help looking for alteration, but I think at this stage with the targets we're working on, we'll be staying with diamond drilling, mainly because we like to do angle holes across the system and we have to get deeper. Fair enough.

32:04 What's the community response been to the exploration and the mining in the area? It's been incredible. Anybody that wants to work near a wonderful place for mining, Princeton is the place to be. I'll give an example, the lady that used to own Ace Hardware, and it's now a home hardware building supply place, she used to bag up our stuff and say, okay, here you go, now get back on that hill and find us another mine. When Copper Mountain came back into production, the newspaper did it. It's not a scientific poll, but a call-in poll. Do you want more mines, plural, in the Princeton area? 87 percent said yes.

32:52 It's a very pro-mining neighborhood. Wonderful people to work with. Most of our board had worked in, that are active on the exploration side had worked in central British Columbia. We had no experience doing reclamation in semi-arid conditions. The First Nations were actually the ones that did the work that we got the award for. The former chief and I accepted the award on behalf of Sago. The First Nations are very well trained in the industry. I'll take you back to the picture. In this slide, the fellow on the left is the fellow that had the heart attack and he is improving. He's doing much better now.

33:49 Myself, I'm Metis, the Driller's Metis from Ashcroft just to the north of us. Kelly, way in the background is Bob Dennis from Lower Samoa Indian Band. Kelly Wilson is in the raincoat. He's First Nations and then our geologist. So we have several local people working for us. It's just an excellent place to work. Wonderful people. You couldn't complain. That's awesome to hear. Another question, How close is power though? Right on the...

34:39 I'll go back to... If you look at the outline of the Miner Mountain project, there's a major power to a sawmill on the lower left-hand corner of our claims. And that's a highway running across the south of the claims and a highway running along the left side of our claims. All right, sounds fair enough. Another question about the community, and then obviously the geography around you, but do you work with local First Nations? What's the relationship there and how does that require capacity training or does that require capacity training?

35:26 We don't have to build any capacity. The First Nations, as I said, taught us how to do reclamation on this grassland. We signed a memorandum of understanding with the local First Nations whose territory we're in, the Upper Similkameen Indian Band, before we started any work, the First Nations have excellent capacity. Mining is a part of the culture. A lot of the people work within the mines, some at Copper Mountain. And where the capacity breaks down is not with us, but in the permitting process, the permit applications are sent to First Nations, and the permitting process isn't onerous at all in what you submit.

36:24 Neither the BC Ministry of Mines nor the First Nations have the capacity to deal with a lot of permits at one time. I'd like to see British Columbia step up and add to the staff and to assist the First Nations in building capacity, hiring people to review permits. That's my only complaint and that's pretty minor. Well, absolutely. Another question come in. Do you still get the extra tax credits on hard dollar spending as was the case previously? Yes, absolutely. In fact, a good part of this drug program is being paid for by our tax credit that rebate for working in beetle kill areas in British Columbia. We get 30% of our hard dollars spent and we were audited this spring too.

37:25 And I'm really pleased to say that there were absolutely no adjustments necessary. We got our check right on time, Thank goodness. It's always great to get your point about that. That's for sure. Listen, Paul, this has been a great Q&A session and a wonderful presentation. I really appreciate you coming on. But that is all the questions currently that we have for today. So I wanna thank you, of course, for coming on, walking us through the presentation and having a great Q&A session. But of course, I wanna also thank everyone who submitted questions, who's come in today and attended to see Paul, hear Paul talk about Segoe. I'd like to please note to everyone in the audience that you can also find this presentation in the handout tab on the right-hand side of your screen beside the Q&A chat. You can download that. You can, of course, find more information on Sego Resources' website, segoresources.com.

38:13 But Paul, I'm going to hand things back to you for some closing remarks before we hang up for today. Well thanks very much Cam. This is a, actually I enjoyed the experience. I wondered how I would feel. Excuse me, the, excuse me. I'd just like to reiterate that please don't hesitate to call me if you have questions or even just want to talk about what we're doing on the property. I'll respond to everybody and my cell phone is always on except during this presentation I muted it. But I will see if you call me and I will call you back. So please don't hesitate to call me on anything to do with Sago. Thank you.

39:01 Well, Thanks a lot Paul. And with that, I think we're going to close up for today. I hope everyone has a good rest of their Friday and a good weekend. Cheers. Thanks very much, Cam.