TSX: SMC. Corporate Presentation June Focused on Acquiring, Developing & Actively Investing in Quality Mining Projects

Transcription

1 TSX: SMC Corporate Presentation June 2016 Focused on Acquiring, Developing & Actively Investing in Quality Mining Projects

2 Cautionary Statements This presentation may include certain forward-looking statements within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding future plans and objectives of Sulliden Mining Capital Inc. ( the Company ), future opportunities and anticipated goals, projected capital and operating expenses, timetable to permitting and production and the prospective mineralization of the properties, are forward-looking statements that involve various risks, assumptions, estimates and uncertainties. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking information is subject to known and unknown risks, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; acquisition risks; and other risks of the mining and resource industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. These statements reflect the current internal projections, expectations or beliefs of the Company and are based on information currently available to the Company. The Company does not undertake to update any forwardlooking information, except in accordance with applicable securities laws. The Company believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be unduly relied upon by investors as actual results may vary. Unless required to be updated pursuant to securities laws, these statements speak only as of the date of this presentation and are expressly qualified, in their entirety, by this cautionary statement. Non-IFRS Performance Measures: The Company has included in this document certain non-ifrs performance measures related to working capital. These non-ifrs performance measures do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company s performance. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with IFRS. The technical content of the presentation was reviewed and approved by the Company s Project Evaluations Manager, Joseph Milbourne, who is a Qualified Person within the meaning of National Instrument Mr. Milbourne has reviewed and approved the scientific and technical aspects of this presentation. 2

3 Who We Are Our team has a history of value creation. Three of our former companies were taken over at significant premiums since (Acquired by Yamana Gold) Feasibility Study Mineral growth Permits obtained Fully funded Operational (Acquired by B2Gold) Feasibility Study Mineral growth Environmental approvals Operational (Acquired by Rio Alto) Mineral resource growth Feasibility Study Advanced stages of permitting 3

4 What We Do We generate value through the acquisition and development of quality mining projects. In addition, we identify opportunities across industries for active investments. In 2014, Sulliden Mining Capital began trading on the TSX with $25M in cash. Today, we have over $30M in working capital.* We takes an active role in our investments by being involved at the Board level, or with contributions from our technical advisory team to ensure the proper execution of the projects we are invested in. Our management team has extensive experience in the areas of mine exploration, permitting, construction, operations, and capital markets, which enabling us to identify high quality projects and companies to invest in, or acquire. *Adjusted working capital as at June 15, 2016, including Fair Market Value of Sulliden s share holdings of Aguia Resources. See next slide for breakdown. See slide 2 for details related to Non-IFRS Performance Measures. 4

5 Performance & Share Value Capital Structure Capitalization Summary (as at Jun.15, 2016) Shares Outstanding Warrants Options Cash: Value of Investments* Performance (as at June 15, 2016) Share Price 52-week range Market Capitalization ~36.9 M ~2.5 M ~3.5 M ~$3 M ~$27 M $0.40 $ $0.45 ~$13.6 M Intrinsic Value* Value of Sulliden Holdings Combined value of 10 other investments: Avg. purchase price: $0.08/share ASX:AGR as at June 15, 2016: $0.13/share $0.25/ Sulliden share Avg. purchase price: $0.22/share TSX:BSX as at June 15, 2016: $0.84/share $0.19/ Sulliden share Purchase price: $0.07/share CNX:CPN as at June 15, 2016: $0.07/share $0.14/ Sulliden share $0.16/ Sulliden share Sulliden Value of Investments + Cash ~$30M working capital $0.81/ Sulliden share *Adjusted working capital as at June 15, 2016, including Fair Market Value of Sulliden s share holdings of Aguia Resources. See slide 2 for details related to Non-IFRS Performance Measures. *Intrinsic value as at June 15,

6 Major Projects & Investments - Overview A selection of our most important projects and investments, include: Troilus Gold Project Past-producing gold/copper/silver mine, Quebec 2-year option agreement with First Quantum Minerals (May 2016) to purchase 100% of the project Rovina Valley Gold project 2 nd largest gold deposit in Europe, Romania $5M invested in May Two Sulliden representatives join the Carpathian board of directors. Rio Grande Phosphate Project Feasibility-level project, first-mover in the region, Brazil Sulliden holds 69.7M shares, or 19% of Aguia`s outstanding shares. Volta Grande Gold Project Multi-million ounce gold project in permitting phase, Brazil Sulliden holds 8.5M shares, or 2.2% of outstanding shares. East Sullivan Past-producing polymetallic mine, Quebec, Canada 100% ownership 6

7 Major Projects & Investments - Location Abitibi Region, Quebec, Canada Transylvania, Romania Para State, Brazil Rio Grande do Sul, Brazil 7

8 Rovina Valley Project - Overview $5M invested in May Two representatives from Sulliden join the Carpathian Board (See May 19, 2016 press release) Gold, Copper and Silver project located in Romania. Second largest gold deposit in Europe. Overview Project covers 94 km² within the Golden Quadrilateral, in westcentral Romania. This famous mining district has been Europe's most important gold producing region for over 2000 years (+55M oz. of historic gold production) Three porphyry gold-copper deposits identified to date: Rovina, Colnic, and Ciresata. PEA completed in March 2010 demonstrated attractive economics Good existing infrastructure (roads, water and power) Investment Details CAD$5,000,000 invested in Carpathian on May 19, ,428,571 units acquired at $0.07 each. Each unit is comprised of one common share + one ½ warrant priced at $0.12 (valid for a period of two years). The warrant may be accelerated if Carpathian shares trade above $0.15 for 20 consecutive days. Two Sulliden representatives have joined Carpathian s board of directors. 8

9 Rovina Valley Project - Property Map EXPLANATION Three gold-copper deposits identified to date Many other targets identified; substantial exploration upside *Geological map showing porphyry mineralisation centered on subvolcanic quartz diorite to andesite stocks intruded Ma 9

10 Rovina Valley Project Latest NI mineral resource estimate (July 2012) demonstrates over 10 million ounces of Gold Equivalent Measured & Indicated mineral resources For Au Eq. calculation, determined by using a gold price of $US1,370/oz and a copper price of $3.52/lb (3yr trailing avg. as of July 10, 2012), metallurgical recoveries are not taken into account. In-pit resource calculation based on US$1,313/oz Au oz and $2.27 to $2.57/Cu. Cut-off grades used of 0.25% Cu eq for the Rovina deposit, 0.35 g/t Au eq for the Colnic deposit and 0.65 g/t Au eq for the Ciresata deposit. * Mineral resources that are not mineral reserves do not have demonstrated economic viability. See Forward Looking Statements on slide 2. 10

11 Troilus Project - Overview 2-year option agreement with First Quantum Minerals to acquire past-producing Troilus Mine (See May 2, 2016 press release) Overview Approximately 4,700 hectares of mining and exploration claims, and surface rights in the Abitibi region of Quebec, Canada Located in the east domain of the Frotet-Evans Greenstone Belt History Past-producing gold/copper/silver mine ( ) produced in excess of two million ounces of gold and 70,000 tonnes of copper* Option Agreement with First Quantum: 2-year option agreement to purchase 100% interest in Troilus Mine During this period, Sulliden commits to spend a min. of $1M on technical studies to evaluate the economic viability of the project. Agreement Payment Structure $100,000 to First Quantum upon signing (completed) Additional cash payment of $100,000 on the 1 st anniversary of Agreement Final cash payment of $100,000 on the date of exercise of the Option First Quantum to receive a Net Smelter Royalty (NSR) of 1.5% or 2.5% depending on the gold price being more or less than $1,250/oz *Source: Technical Report on the Troilus Gold-Copper Mine dated July 25, Report prepared for Copper One Inc., and can be found on their profile at 11

12 Troilus Project - Location 12

13 Troilus Project - Property Geology From 1996 to 2010, the Troilus mine operated from two open pits: J4 and 87 Gold mineralization at Troilus is hosted in brecciated marginal series rocks J

14 3D Section of Troilus Zones Looking East 14

15 3D Section of Troilus Zones Looking North 15

16 Mineral Resources (as at April 22, 2016) Updated mineral resource estimate as at April 22, 2016, completed by Roscoe Postle Associates Inc. with focus on a potential underground mining scenario. Underground Mineral Resources (as at April 22, 2016) Classification Zone Tonnage (Mt) Au (g/t) Cu% AuEq (g/t) Contained Gold (000 oz) Contained Copper (Mlb) Contained AuEq (000 oz) Z , ,635 Indicated J J Total Indicated , ,635 Inferred Z J J Total Inferred Notes: 1. CIM definitions were followed for mineral resources. 2. Mineral resources were estimated at a cut-off grade of 0.8 g/t Au. 3. Mineral resources were estimated using long-term metal prices of US$1,500 per ounce gold and US$3.50 per pound copper; and an exchange rate of US$1.00 = C$ AuEq = (34.59 * Au Grade * Cu grade)/ A recovery of 83% was used for gold and 92% for copper. 6. Numbers may not add due to rounding. 7. Other than the receipt of necessary permits and ongoing reclamation obligations, Sulliden does not know of any material legal, political, environmental or other factors that could affect the development of the project. 16

17 Mineral Resources (as at April 22, 2016) Open Pit Mineral Resources (as at April 22, 2016) Classification Zone Tonnage (Mt) Au (g/t) Cu% AuEq (g/t) Indicated Contained Gold (000 oz) Contained Copper (Mlb) Contained AuEq (000 oz) J J Total Indicated Z Inferred J J J4 Low Total Inferred Notes: 1. CIM definitions were followed for mineral resources. 2. Mineral resources were estimated at a cut-off grade of 0.3 g/t Au and were constrained by a Whittle pit shell. 3. Mineral resources were estimated using long-term metal prices of US$1,500 per ounce gold and US$3.50 per pound copper; and an exchange rate of US$1.00 = C$ AuEq = (34.59 * Au Grade * Cu grade)/ A recovery of 83% was used for gold and 92% for copper. 6. Numbers may not add due to rounding. 7. Other than the receipt of necessary permits and ongoing reclamation obligations, Sulliden does not know of any material legal, political, environmental or other factors that could affect the development of the project. 17

18 Mineral Resources (as at April 22, 2016) Total Open Pit and Underground Mineral Resources (as at April 22, 2016) Classification Tonnage (Mt) Au (g/t) Cu% AuEq (g/t) Contained Gold (000 oz) Contained Copper (Mlb) Contained AuEq (000 oz) Total Indicated , ,054 Total Inferred Notes: 1. CIM definitions were followed for mineral resources. 2. Open pit Mineral Resources were estimated at a cut-off grade of 0.3 g/t Au and were constrained by a Whittle pit shell. Underground Mineral Resources were estimated at a cutoff grade of 0.8 g/t Au. 3. Mineral Resources were estimated using long-term metal prices of US$1,500 per ounce gold and US$3.50 per pound copper; and an exchange rate of US$1.00 = C$ AuEq = (34.59 * Au Grade * Cu grade)/ A recovery of 83% was used for gold and 92% for copper. 6. Numbers may not add due to rounding. 18

19 Troilus Project - Opportunity The former mill was sold, however key infrastructure remains, including: Network of roads Permitted tailings pond Office building and garage Water treatment facilities Core storage area Electrical transformer station 19

20 East Sullivan Project - Overview Project retained following the Rio Alto and Sulliden Gold Corporation transaction (May 2014) Overview 334 hectares in the Abitibi region of Quebec, Canada Property located 2 km north of Cadillac Break, a major fault zone in the district History Underground base metal mine operated on the property from s: gold-bearing zone discovered about 900 m from the mine shaft 1980s: drilling conducted on the gold target (98 holes, 11,500 m) Opportunity Total of 180 drill holes (22,768 m) define a high-grade gold zone Gold zone remains open - potential larger deposit Potential for an economic and technically feasible mining operation Development Strategy Compile and index all historical geological data related to the gold zone Drilling: Confirm gold zone with larger core in a denser array, and define size Technical study: Mineral resource estimate & mine operation potential 20

21 East Sullivan - Sample Section (6600E) Selected intercepts from section 6600E 2.1 g/t gold over 10m, including 4.4 g/t over 2.8m 4.2 g/t gold over 5.2m, including 10.7 g/t over 1.9m 6.8 g/t gold over 7.2m, including 16.8 g/t over 2.7m Shearzone 21

22 Aguia Resources (ASX: AGR) Shares held: 69.7M (19%) Average purchase price: $0.08 Aguia Resources (ASX:AGR) as at June 15, 2016: $0.13/share $0.25/ Sulliden share 2015 performance: +243% 22

23 Aguia Resources Rio Grande Overview Fertilizer company aiming to produce domestic sources of phosphate to supply booming Brazilian agricultural sector. Project Overview Excellent Location Project covers 39,000 ha in heart of southern agricultural region Ideal location with proximity to local infrastructure and consumers Positive PEA Completed in 2015* 500,000 tonnes of SSP per annum Projected OPEX of ~US$160.7/tonne of SPP (top quartile low cost producer) Projected CAPEX ~US$184 million (US$209 with contingency) NPV (5%)US$273 million and IRR 25% with payback in 3.2 years Large Resources & Growth Potential Três Estradas resource One of many deposits held by Aguia, offering excellent future growth potential Opportunity Brazil currently imports 65% of its phosphate requirements. Aguia will have a sustained logistical advantage first mover in the region Upcoming Catalysts Updated and optimized PEA expected in Q Maiden Joca Tavares JORC resource and EIA submission expected in Q Permitting advancements and Feasibility Study in 2016 Construction start expected in 2017 Brazil *See press release issued by Aguia dated August 19,

24 Rio Grande - Low Cost Growth Large resource and excellent long-term growth potential. Rio Grande Mineral Resource (2015) JORC compliant phosphate resource of: 15.2Mt Indicated, 54.9 Mt 4.20% P 2 O 5 Recent drilling program expanded strike length of deposit by 1.3km to 2.5km Previous JORC Resource Higher grade oxide zone at surface doubled, now totalling combined Indicated and Inferred 3.9Mt grading 10.25% P 2 O 5 Sample from TRÊS ESTRADAS Rail going through the property Recently completed drill program extending JORC resource 24

25 Rio Grande - Path to Higher Returns Aguia will optimize the PEA ahead of the Feasibility Study; material improvements are expected. PEA Completed in 2015* 500,000t of SSP per annum Calcite by-product 630,000t per year (market = $47/tonne) Projected OPEX of ~US$160.7/t of SPP (top quartile low cost producer) Projected CAPEX ~US$184 million (US$209 with contingency) NPV (5%) US$273 million; IRR 25% Payback in 3.2 years The following factors will be considered to enhance the PEA: Inclusion of a +600,000t per year calcite plant to enhance cash flow and minimize the volume of waste product; Potential inclusion of nearby higher-grade deposit in the mine plan; Optimized metallurgical recoveries; Alternative, more cost effective logistics solutions; Trade-off study of a phosrock only operation (simplified development timeline, reduced CAPEX); Long-term currency implications; Further optimization of the mine plan. Updated PEA expected in 2016 *See press release issued by Aguia dated August 19,

26 Belo Sun Mining (TSX: BSX) Shares held: 8.5M (2.2%) Average purchase price: $0.22 Belo Sun (TSX: BSX) as at June 15, 2016: $0.84/share $0.19/ Sulliden share *Working Capital is calculated as: Current Assets - Current Liabilities. See slide 2 for details related to Non-IFRS Performance Measures 26

27 Belo Sun Mining - Volta Grande Overview Belo Sun is developing a low-cost open pit gold mine in Brazil. Project Overview Excellent Location Brazil: a mining-friendly country Para State: 2 nd most active mining state in Brazil; goal to be #1 Advanced Stage of Development Construction license expected in 2016 All surface rights acquired Positive Feasibility Study 17 year mine life; average annual gold production of 205,000 oz First 10 years: 268,000 oz gold annually Pre-Tax IRR of 36%; Pre-Tax NPV of $918M (1) Post-Tax IRR of 26%; Post-Tax NPV of $640M (1) Large Resources & Reserves; Excellent Long-term Growth Potential Reserves: 3.8M oz at 1.02 g/t (2) Resources: Measured, 5Moz at 0.99 g/t and Inferred, 1.1Moz at 0.90 g/t Property covers over 120 km of Três Palmeiras greenstone belt Opportunity Potential transition to production in next 2 years Volta Grande Project Upcoming Catalysts Construction license expected in

28 Volta Grande - Feasibility Study Feasibility Study Results (March 2015) Production Average LOM annual gold production of 205,000 oz, 17 year mine life First 10 years: 268,000 oz gold annually Economics Pre-Tax IRR of 36%; Post-Tax IRR of 26% ($1,200 / oz Au) Pre-Tax NPV of $918 million; Post-Tax NPV of $640 million (5% discount rate) Operating Costs Average cash operating costs of $618 / oz Au All-in sustaining cash operating costs of $779 / oz Au Strip Ratio Strip ratio of 4.3:1 CAPEX Pre-production capital costs of $298 million Annual LOM sustaining capital costs of $7.3 million *$1,200 / oz Au; Reais:Dollar exchange rate of 3.1:1; See Belo Sun press release dated March 30, 2015 for details related to this study. 28

29 Volta Grande - Property Belo Sun owns the property covering +100km of strike length on the Três Palmeiras Greenstone belt; a large underexplored area with tremendous blue sky potential. 29

30 Volta Grande - Mineral Resources North Block (2015) Avg. grade Tonnes (Mt) Gold Total Measured & Indicated (0.4g/t cut-off) 0.99 g/t ,954,000 oz Total Inferred (0.4g/t cut-off) 0.90 g/t ,148,000 oz North Block (2015 Feasibility Study) 200,000 m of drilling South Block (5km from North Block) 20,000 m of drilling South Block (2013) Avg. grade Tonnes (Mt) Gold Total Indicated (0.5g/t cut-off) 3.06 g/t ,000 oz Total Inferred (0.5g/t cut-off) 3.94 g/t ,000 oz 30

31 Strong Management Team High calibre team with a proven track-record and a long history of working together Senior Management Team Justin Reid, MSc., MBA, CEO; Director Geologist and capital markets executive with +20 yrs focused in the mineral resource space Former President and Director of Sulliden Gold, Senior mining analyst at Cormark and Managing Director Global Mining Sales at NBF Paul Pint, CPA, CA, President +20 yrs of capital markets experience Has held a number of senior positions at various financial institutions and boutique investment banks in Canada. Board of Directors Stan Bharti, P.Eng., Chairman Justin Reid, MSc., MBA, President & CEO; Director Peter Tagliamonte, P.Eng., MBA Executive Director Bruce Humphrey, P.Eng., Director Hon. Pierre Pettigrew, p.c., Director Diane Lai, MBA, Director Peter Tagliamonte, P.Eng. MBA, Senior VP; Executive Director 30 yrs of experience in mine building and operations with particular focus in Central and South America Former CEO Sulliden Gold, Central Sun Mining and COO of Desert Sun Joe Milbourne,FAusIMM, Corporate Evaluations Coordinator Metallurgist with +40 yrs experience in Central and South America Former head of process engineering at AMEC Mining and Metals. International experience with BHP, Eldorado and Cominco Stéphane Amireault, MScA., P.Eng., Senior Geologist Professional engineer with +25 yrs experience in gold exploration Extensive experience in Central and South America, particularly in Peru 31

32 Former Mine Development Successes Value generated through the development of the mine to production and exploration success Acquired by: Feasibility Study Mineral growth Permits obtained Fully funded $1.00 invested April 2002 $48.38 value as of Nov 2012 $11.26 value as of Jan

33 Former Mine Development Successes Value generated through exploration success and mine development Acquired by: Environmental approvals Feasibility Study Mineral growth Global Financial Crisis $1.00 invested Dec 2007 $3.89 value as of Mar 2012 $1.73 value as of Jan

34 Former Mine Development Successes Value generated through resource growth and advancement of mine to construction Mineral resource growth Feasibility Study Advanced stages of permitting Acquired in 2014 by: Acquired in 2015 by: $1.00 invested Jan 2009 $3.86 value as of Jan 2015 $4.23 value as of Apr

35 Sulliden Mining Capital Inc Queen Street West Toronto, Ontario M5H 2M5 TSX: SMC Investor Contact Caroline Arsenault Corporate Communications +1 (416)