TSX-V: SFX. Successfully Generating ROBUST ZINC PROJECTS. Corporate Presentation

Transcription

1 TSX-V: SFX Successfully Generating ROBUST ZINC PROJECTS Corporate Presentation March 2019

2 FORWARD-LOOKING STATEMENTS This corporate presentation may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results and activities to vary materially from targeted results and planning. Such risks and uncertainties include those described in Sphinx s periodic reports including the annual report or in the filings made by Sphinx from time to time with securities regulatory authorities. All forward-looking statements in this corporate presentation are made as of the date of this presentation. Sphinx does not undertake to update any such forwardlooking statements whether as a result of new information, future events or otherwise, except as required by law. The technical information contained in this presentation has been reviewed and approved by Normand Champigny, ing., B.A.Sc., M.A.Sc., President and director of Sphinx, qualified person for the purposes of National Instrument , Standards of Disclosure for Mineral Projects. 2

3 SUMMARY TSX-V listed (ticker SFX) exploration company Deals made with strong partners: Osisko Metals, SOQUEM Focused on Quebec and zinc Project generator business model key to maximizing long term shareholder value Kerry Sparkes and Michel Gauthier: mine finders in Eastern Canada 3

4 OWNERSHIP Shares outstanding Stock options Warrants Agent options Fully diluted 123 M 5.4 M 46 M 1.2 M 175 M Management, Board 14% Quebec institutions 21% Top 100 shareholders 97% of shares Key suppliers and Pontiac area shareholders 14% 4

5 TEAM: Management and Directors Jeremie Ryan, President, Chief Executive Officer and Director Resident of the Pontiac 35 years of experience in the natural resources sector Owned and operated local businesses Involved with several non-profit and community organizations John W. W. Hick, B.A., LL.B. Chairman of the Board More than 30 years of experience in the mining industry in management positions and as independent director including,cambior, Placer Dome and TVX Gold Normand Champigny, M.A.,Sc., Eng. Director Former CEO of Sphinx. 37 years of experience in exploration and management in Canada and internationally including PwC and IBM. Michel Gauthier, Ph.D. Director 44 years of experience Professor of mineral prospecting at l Université du Québec in Montréal Co-baptized a gold prospect, named Éléonore, in the Eeyou Istchee James Bay territory 5

6 TEAM: Management and Directors (continued) François Biron, Eng. Director More than 40 years of experience in project evaluations and operations management Considerable experience with environmental issues and social acceptability of mining projects Kerry E. Sparkes, M.Sc. Director More than 25 years of experience in the mining industry, exploration geologist and executive Key person involved in the exploration, delineation and development of both the Voisey s Bay nickel and the Rainy River gold deposits Currently V.P. Geology for Franco-Nevada Corporation Sylvain Laberge Advisory Committee More than 25 years of experience in the mining industry and corporate communications Ingrid Martin, CPA, CA Chief Financial Officer Over 25 years of experience in accounting and finance of public companies and since 2004 involved with several mineral exploration companies including Midland Exploration. 6

7 STRATEGY and Focus Maximize deal flow with strategic partners Generate quality projects with: Zinc (± other base and precious metals) Good social acceptability Low cost exploration through a focus on drilling and leveraging strategic partnerships Maintain a diverse portfolio with projects: In different high grade metamorphic terranes of different levels of advancement Concentrate on Quebec 7

8 SUCCESSFUL Project Generator Social acceptability Ground access Project generation Deal flow with strategic partners LONG-TERM SHAREHOLDER VALUE Base and precious metals potential HIGH GRADE METAMORPHIC TERRANES 8

9 WHY ZINC? Supply and Inventory Declining Zinc Price vs. Inventory (2004 current) Source: Macquarie, January 10,

10 ZINC SUPPLY, DEMAND AND END USE 10

11 WHY QUEBEC? Quebec: 4 th rank on worldwide investment attractiveness index Fraser Institute - Survey of mining companies 2018 Significant tax advantages (tax credit and low after-tax cost for flow-through shares) Sphinx s team has considerable experience in Quebec 11

12 2013 to 2018 Deals include: Osisko Metals (50% joint venture) Grenville Project: Zinc SOQUEM (50% joint venture) Quebec s exploration agency, 50 years, 350 projects, 8 mines Calumet-Sud: Zinc Gardin - Michel Gauthier (100% Sphinx) Calumet-Sud, Tessouat: Zinc GPd: Palladium 12

13 OSISKO METALS Joint Venture Grenville Project: 50% joint venture with Osisko Metals to explore for zinc in highly prospective areas of the Grenville geological province in southern Quebec Minimum of $1,250,000 by each party over five years Joint management committee to design and oversee the exploration program Sphinx acts as operator If a party's interest dilutes to 10% or less, its interest shall be converted to a 2% net smelter return royalty 13

14 ZIAC ( ZINC-PONTIAC ) DISTRICT 40 km long northwest trending corridor defined by zinc bearing rocks (excluded from joint venture with Osisko Metals) $2.3 M invested in the ground since 2014 Similar to Balmat-Edwards- Pierrepont zinc district, New York state Projects within the Ziac (301 km 2 ) Calumet-Sud (12 km 2 ) 50% Sphinx 50% SOQUEM Tessouat (13 km 2 ) 100% Sphinx GPd (41 km 2 ) 100% Sphinx Tessouat-Sud (177 km 2 ) 100% Sphinx Obwondiag (57 km 2 ) 100% Sphinx 14

15 PROJECTS 15

16 CALUMET-SUD Zinc Project 50-50% joint venture with SOQUEM, 2% NSR to Gardin Stratiform, shallow-dipping and near-surface horizon over 1,500 m strike length, adjacent to New Calumet Mines Channel sample composites 22.1% Zn over 1.0 m incl. 6.6% Zn over 5.0 m 8.1% Zn over 1.5 m 6.7% Zn over 1.0 m 3.3% Zn over 4.0 m 3.2% Zn over 6.0 m Drill mineralized horizon to establish continuity and resource potential Q and holes drilled to date 12.8% zinc over 1.0 m within 2.2% zinc over 10 m 13.1% zinc over 1.0 m within 3.8% zinc over 5.0 m 9.0% zinc over 1.0 m within 3.1% zinc over 6.4 m 6.6% zinc over 1.4 m within 3.0% zinc over 6.8 m 16

17 SPHALERITE Bands Sphalerite bands 17

18 NEW CALUMET MINES AREA Pontiac Municipal Regional County, Québec, Canada 18

19 CALUMET-SUD PROJECT 19

20 CALUMET-SUD PROJECT 20

21 GPd PROJECT EXPLORING FOR PALLADIUM 21

22 VALUE DRIVERS 2019 Drill and establish resources potential Calumet-Sud Define targets and drill Tessouat (trench and drill) Obwondiag and Tessouat-Sud (soil sampling) Execute regional program Grenville Zinc Project with Osisko Metals Five-Year Plan Advance projects with strong partners that are socially acceptable with year-round access Make one or more mine discoveries Create significant shareholder value Identify partner to drill GPd project 22

23 SPHINX RESOURCES LTD De La Gauchetière, Suite 2100, Montréal, QC H3B 4W5 Jeremie Ryan, President, CEO and Director T: sphinxresources.ca