Corporate Presentation

Transcription

1 Corporate Presentation August 2017 Copper focused Value Driven Abacus Mining and Exploration Corporation I TSX:AME I 1

2 Forward Looking Information This presentation includes certain statements that may be deemed "forward looking statements". All statements herein, other than statements of historical facts, that address events or developments that Abacus Mining and Exploration Corporation (the "Company") expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, environmental and permitting timeline delays or receipt of required provincial and federal permits that may affect future plans, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements. Except as required by securities laws, the Company undertakes no obligation to update these forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. Abacus Mining and Exploration Corporation I TSX:AME I 2

3 Strengths - Major copper-gold porphyry development project in B.C. in the permitting process - Exceptional copper-gold porphyry exploration project in Nevada - Both Projects are in low-risk jurisdictions - Management & Directors have demonstrated success in exploration, development & M+A Opportunities - Re-rating on near-term receipt of EA permits - Compelling low market valuation - Copper market near the beginning of a multiyear bull market Abacus Mining and Exploration Corporation I TSX:AME I 3

4 Ajax Copper Project, B.C. A development stage copper-gold porphyry deposit in the permitting process Abacus Mining and Exploration Corporation I TSX:AME I 4

5 Ajax Location Map Abacus Mining and Exploration Corporation I TSX:AME I 5

6 Ajax Map Detail New Gold Afton New Gold Axiom Ajax Ajax Abacus Mining and Exploration Corporation I TSX:AME I 6

7 Project Ownership Ownership Ajax Project 100% By KGHM Ajax Mining Inc. KGHM Ajax Mining Inc. 20% 80% By Abacus Mining & Exploration Inc. (carried by KGHM through to production) By KGHM Polska Miedz SA Abacus Mining and Exploration Corporation I TSX:AME I 7

8 Ajax General Geology East Pit Iron Mask Hybrid West Pit Latite Dykes Sugarloaf-Volcanic Hybrid Picrite Monzonite Dykes Sugarloaf Diorite Mafic Volcanic Abacus Mining and Exploration Corporation I TSX:AME I 8

9 Ajax Site Layout Abacus Mining and Exploration Corporation I TSX:AME I 9

10 Feasibility Study Highlights Reserve Tonnes (mt) Cu % Au (g/t) Ag (g/t) Proven Probable P + P Mining Rate 65,000 tpd 23,725,000 Mt/y Strip Ratio 2.65 : 1 Cap Ex $1,307,200,000 Op Ex LOM Mining $1.50/t mined Process $4.31/t ore Abacus Mining and Exploration Corporation I TSX:AME I 10

11 Feasibility Study Highlights Financial Pre-Tax 5% USD 872 M 8% USD 429 M IRR 13.4% After Tax 5% USD 543 M 8% USD 216 M IRR 11.1% Payback (after tax) 6.7 years Abacus Mining and Exploration Corporation I TSX:AME I 11

12 Near-term Milestones Milestone Estimated Date* Provincial EA Certificate Project Agreement with First Nations Federal EIS Approval Decision Submit Provincial Permit Applications Submit Federal Permit Applications Nov-Dec, 2017 Nov-Dec, 2017 Dec-Jan, 2018 Q1, 2018 Q1, 2018 The aforenoted timelines are subject to change without notice. Risks related to the environmental permitting process and receipt of all regulatory permits and approvals are detailed under Risk Factors in the Company s filings on Sedar and its website. Abacus Mining and Exploration Corporation I TSX:AME I 12

13 Willow Property Location Map Rail Line Willow Property MacArthur Deposit Bear Airport Cu Porphyry Blue Hill BuckSkin Cu Vein Anne Mason Yerington Mine Yerington Pumpkin Hollow Cu Skarn Abacus Mining and Exploration Corporation I TSX:AME I 13

14 Willow Google Earth Map Abacus Mining and Exploration Corporation I TSX:AME I 14

15 Willow Soils Cu-Mo Abacus Mining and Exploration Corporation I TSX:AME I 15

16 Willow Soils Au Abacus Mining and Exploration Corporation I TSX:AME I 16

17 Willow Drill Holes Detail Abacus Mining and Exploration Corporation I TSX:AME I 17

18 Willow Geophysics Abacus Mining and Exploration Corporation I TSX:AME I 18

19 2017 Willow Program - Compilation and digitization of all historic data - Approx. 97 line km of infill soils and ground IP - Approx. 200 line km ground magnetics - Detailed geological mapping by an expert in porphyry systems - Spectrometric mineralogical analysis (Terraspec) of all new soil & rock samples - Additional age dating - Up to 2500 m Diamond Drilling Total Budget: $(CAD) 788,000 Abacus Mining and Exploration Corporation I TSX:AME I 19

20 20 Management and Directors Michael McInnis Sean Harvey John McConnell Tom McKeever Kerry Spong Jeannine Webb President, CEO and Director Director Director Director Director CFO, Corporate Sec y Abacus Mining and Exploration Corporation I TSX:AME I 20

21 Share Structure Basic Shares o/s 39,134,602 Warrants & Options 4,636,654 Share Price C$ (August 1, 2017) $ 0.43 Market Capitalization $16,828,000 (o/s shares) Abacus Mining and Exploration Corporation I TSX:AME I 21

22 Copper outlook - deficit Wood Mackenzie 2017 Refined Balance 600 Wood Mackenzie 2018 Refined Balance Market now in deficit despite lower demand market also moved into deficit Thousand tonnes Thousand tonnes Month of Forecast -300 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 Month of Forecast Source: Teck, Wood Mackenzie Abacus Mining and Exploration Corporation I TSX:AME I 22

23 Slowing copper production Mine production peaking as replacement projects delayed Copper Production Expected to Decrease Uncommitted Projects Increasingly Delayed Existing and Fully Committed Mines 12,000 10,000 15% in Base Case 15% 10% in in Base Base Case Case Thousand Tonnes Thousand Tonnes 8,000 6,000 4,000 2, Mine Production Projects SXEW Demand Source: Teck, Wood Mackenzie, CRU, ICSG Scrap F Last Year Base 2018F 2020F Today LastYear Highly Probable 2020F Today Last Year Today Probable Possible Abacus Mining and Exploration Corporation I TSX:AME I

24 Copper mine production Disruptions -200 Disruptions Exceeding 5% (Mar) Significant Disruptions in Q1 2017, With Effects Through Q2-Q % Disruptions could total >625kmt Thousands Tonnes , % Thousands Tonnes Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -1,200 Constancia Grasberg Guidance Los Pelambres Mt. Milligan Grasberg FM Escondida Strike Sentinel Grasberg Export Ban/Strike Escondida Slow Ramp Up Source: Teck, Wood Mackenzie, CRU, ICSG Cerro Verde Strike Abacus Mining and Exploration Corporation I TSX:AME I

25 Copper Stocks July Seasonal SHFE stocks drawn down Abacus Mining and Exploration Corporation I TSX:AME I 25