High Grade Gold in World Class Districts

Transcription

1 1 High Grade Gold in World Class Districts May 2018 TSX-V:NXN

2 Disclaimer Information Contained In This Presentation This presentation is a summary description of NxGold Ltd. ( NxGold or the Company ) and its business and does not purport to be complete. This presentation is not, and in no circumstances is it to be construed as, a prospectus, an advertisement, or a public offering of securities. No securities regulatory authority or similar authority has reviewed or in any way passed comment upon the document or the merits of the Company s securities and any representation to the contrary is an offence. Except where otherwise indicated, the information contained in this presentation has been prepared by NxGold and there is no representation or warranty by NxGold or any other person as to the accuracy or completeness of the information set forth herein. Except as otherwise stated, information included in this presentation is given as of the date hereof. The delivery of this presentation shall not imply that the information herein is correct as of any date after the date hereof. All dollar amounts referenced herein, unless otherwise indicated, are expressed in Canadian dollars. Cautionary Note RegardingForward-looking Information This presentation contains "forward-looking information" and forward looking statements within the meaning of applicable Canadian securities laws. Forward-looking information and statements include, but are not limited to, statements with respect to, planned exploration activities, the future interpretation of geological information and cost of such exploration activities, future financings, the future price of gold, and requirements for additional capital. Generally, but not always, forward looking information and statements can be identified by the use of words such as plans, expects, is expected, budget, scheduled, estimates, forecasts, intends, anticipates, or believes or the negative connotation thereof or variations of such words and phrases or statement that certain actions, events or results may, could, would, might or will be taken, occur or be achieved or the negative connation thereof. Forward-looking information and statements are based on our current expectations, beliefs, assumptions, estimates and forecasts about the Company s business and the industry and markets in which it operates. Such forward information and statements are based on numerous assumptions, including among others, the availability of financing, the accuracy of previous exploration records and results, that the results of planned exploration activities are as anticipated, the price of gold, the cost of planned exploration activities, that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company s planned exploration activities will be available on reasonable terms and in a timely manner and that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate. Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of NxGold to differ materially from any projections of results, performances and achievements of NxGold expressed or implied by such forward-looking information or statements, including, among others: limited operating history, negative operating cash flow and dependence on third party financing, uncertainty of additional financing, delays or failure to obtain required permits and regulatory approvals, no known mineral resources/reserves, reliance on a single project, aboriginal title and consultation issues, reliance on key management and other personnel; potential downturns in economic conditions; availability of third party contractors; availability of equipment and supplies; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; changes in laws and regulation, competition, and uninsurable risks. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws. The footnotes, endnotes and appendices to this presentation contain important information. The endnotes and appendices are found at the end of the presentation. Technical Information The scientific and technical information in this presentation has been prepared or approved by Darren Lindsay, Vice President of Exploration and Development of the Company, a qualified person within the meaning of National Instrument Standards of Disclosure for Mineral Projects. For details of the Kuluu Project including the sampling procedures, quality assurance program and quality control measures, analytical or testing procedures applied during the execution of the work reported on in this presentation please refer to the Technical Report on the Kuluu Project bearing an effective date of January 10, 2017 and available on the Company s profile at This presentation contains information regarding Agnico Eagle s Meliadine Gold Project. Mr. Lindsay has been unable to verify the information contained herein regarding Agnico Eagle s Meliadine Gold Project and such information is not necessarily indicative of the mineralization on the Kuulu project in which the Company has an exclusive right to earn up to a 70% interest in. 2

3 People, Process and Projects 3 Founded by the team behind NexGen Energy Ltd (NXE:TSX/NYSE). NexGen s team delineated and developed the Arrow Deposit at an unprecedented pace and low cost due to a disciplined, process-oriented approach to exploration and development. Now NexGen is moving towards becoming the World s largest uranium producer. NxGold employs the same approach but with its own dedicated executive and technical team. Holds an 80% interest in the Mt. Roe Gold Project which hosts 7km of strike length of a known gold conglomerate contact. Mt. Roe is located in the Pilbara region in Western Australia, immediately adjacent to Novo Resources' Karratha Gold Project. Executed agreement to earn up to a 70% interest in the Kuluu Project which is located immediately adjacent and northwest along trend from Agnico Eagle s multi-million ounce Meliadine Gold project, Nunavut.

4 Management 4 Christopher McFadden President and CEO Darren Lindsay VP Exploration & Development Janine Richardson Chief Financial Officer Travis McPherson VP, Corporate Development Brodie Sutherland Project Manager Lawyer with +20 years experience in exploration and mining Former Business Development Manager at Newcrest Mining Ltd Ex Head of Commercial, Strategy and Corporate Development for Tigers Realm Coal Ltd and Ex Commercial General Manger for Rio Tinto Limited Professional Geologist with over 20 years of experience in mineral exploration across four continents Worked for both junior and senior companies, including Newmont Mining Corporation, Miramar Mining Corporation, BHP Minerals Canada Ltd., Inmet Mining Corporation, and Kodiak Exploration Limited Chartered Professional Accountant with over +30 years experience in the mining industry CFO of IsoEnergy Ltd. and Financial Consultant to Atlantic Gold Corporation Former CFO of Hillsborough Resources Ltd., former senior finance specialist of Rio Alto Mining and former Director Group Accounting with Placer Dome Inc. Co-founder of NxGold, VP Corporate Development for NexGen Energy and senior advisor to IsoEnergy Ex-Head Corporate Development for TSX-listed gold producer M&A, debt and equity, permitting, budgeting and corporate strategy experience Professional Geologist with over ten years experience developing remote mineral exploration projects in over twenty countries Experience in advanced geological mapping, geochemical sampling, area selection, prospect generation, and the implementation of diamond drilling programs

5 Board of Directors 5 Leigh Curyer Chairman Richard Patricio Director Trevor J. Thiele Director Todd Roberts Director Karl Laufmann Director CEO of NexGen Energy Chartered Accountant with +20 years experience and ex-cfo of Southern Cross Resources (now Uranium One) Ex-Head Corporate Development at Accord Nuclear Resources Management assessing global uranium assets for First Reserve International CEO and President of Mega Uranium Lawyer with +15 years capital markets experience Chartered Accountant with +30 years experience in capital markets including CFO of major Australian Agribusinesses (Elders and Viterra) Experience with initial public offerings, capital raisings, corporate reorganizations, mergers and acquisitions and joint ventures General Manager Institutional & Corporate banking for South Australia and the Northern Territory at the Commonwealth Bank of Australia Former Partner in a Chartered Accountant firm and Finance Director and CFO of a private equity-backed investment Over 25 years of experience in financial markets focusing on capital raising, portfolio management and corporate advisory mandates Previously held positions with Salomon Smith Barney Inc., Citigroup Inc. and HSBC Has advised and funded several ASX resource companies from early stage venture capital, through to IPO, and discovery

6 Projects Overview: World-Class Districts 6

7 Mt. Roe Gold Project Western Australia 7

8 Project Location: Western Australia 8 Western Australia ranked 5th best mining jurisdiction in the world by Fraser Institute for Mt. Roe Project is 30 km South of Karratha, and the Port of Dampier, in the Pilbara region of Western Australia. Pilbara region is well known for its gold potential and of reported Witwatersrand-style gold bearing conglomerate discoveries. Mt. Roe holds 7km of know conglomerate contact with melon-seed gold at surface. Excellent infrastructure with major roads, railways, ports and power. Melon-seed Nugget From Mt. Roe Project

9 Project Location: Mt. Roe 9 Conglomerate-hosted gold discovered on surface, situated approximately 30 km south of Karratha, Western Australia. 1,232 ha land package (323 ha pending). Land package immediately adjacent to Novo Resource s Karratha Gold Project. Gold nuggets found at Mt. Roe show similar characteristics to the recent gold discoveries by Novo Resources, Artemis Resources and De Grey Mining, in the same region. At Mt. Roe, mapping has traced conglomerates for over 7 km of strike length.

10 The Pilbara Discoveries 10 The first gold nuggets in Pilbara region discovered in late 2016 by prospectors. Gold is from a conglomerate source belonging to the Fortescue Group which has the potential for broad mineralization. Conglomerate-hosted deposits in Pilbara considered similar to the Witwatersrand Gold Deposits of South Africa. NxGold s Mt. Roe has potential for this type of gold mineralization. *Kirk et al. in American Scientist The Origin of Gold in South Africa Nov 2003

11 Mt. Roe Gold Nuggets 11 Melon Seed nugget from Novo Resources. ( Image source Novo Resources Corp.) Mt. Roe Gold Nuggets Melon Seed nugget from NxGold Mt Roe Project

12 Mt. Roe Geology Overview 12 Topography at Mt. Roe consists of flat terrain with rolling hills. Sedimentary gold likely to occur below the base of the Basalts. Conglomerates and unconformity traced and interpreted for over 7 km of strike length. Multiple varieties of gold nuggets discovered at surface including melon-seed as well as more coarse nuggets. Additionally, fine gold has been discovered at surface.

13 Kuulu Project Nunavut, Canada 13

14 The Big Picture Location Positive Till Sampling Results Quartz Carbonate Gold in Boulders

15 Kuulu Project Location 15 Kuulu (formally known as Peter Lake Project) is 20 km NW and immediately along trend of Agnico Eagle's Meliadine gold development project. Kuulu is 40 km NW of Rankin Inlet. Kuulu Project covers 4,174 ha within the Meliadine gold belt in Nunavut, Canada.

16 Prospectivity 16 Multiple clusters of quartz carbonate boulders containing high-grade gold have been discovered on the Property with strong evidence that the bedrock source is also within the Property. Favorable geophysical anomalies located on the property, and up ice from high-grade gold boulders.

17 Nunavut Neighborhood 17 Agnico Eagle s Meliadine Gold Project 3.4 Moz of gold in Proven & Probable Reserves (14.5 million tonnes grading 7.32g/t).* 20km SE of NxGold's Kuulu Property. Under construction- Mine expected to begin operations in 2019 up to average mining rate of 400,000 oz per year.* $740 million capital budget (2017 & 2018).* Agnico Eagle s Meadowbank Gold Mine High-grade producing mine (largest gold mine by annual production). Agnico Eagle's Amaruq Exploration Project* 2.1 Moz Indicated (16.9 million tonnes grading 3.88 g/t). 1.4Moz Inferred (6.8 million tonnes grading 6.22 g/t). *Source: Agnico Eagle Mines Limited, News Release dated February 15, 2017 Image Source: Agnico Eagle Mines Limited

18 Kuulu Earn-In Terms 18 Interest Terms Initial 50% interest Incurring aggregate of $10-million in expenditures by 3 rd anniversary ($1 million 1 st anniversary, $4 million 2 nd anniversary and $5 million 3 rd anniversary. Annual $75,000 cash payments NxGold appointed exclusive operator Additional 20% interest (up to 70%) Incurring aggregate of $25-million in additional expenditures on the property, as follows: $2-million in expenditures on 4th anniversary; $3-million in expenditures on 5th anniversary; $5-million in expenditures on 6th anniversary; $15-million in expenditures on 7th anniversary; Preparing and delivering a bankable feasibility study ( BFS ) by 7th anniversary; Annual $75,000 cash payments. Extension NxGold can extend delivery of BFS for maximum of 3 years by paying $2.5 million per year for each extended year. NxGold granted one-year grace period where no payment required to extend. Misc. NxGold can meet required expenditures by paying in cash or shares instead of expenditures 2% NSR Note On November 28, 2017 NxGold delivered a notice of force majeure to the property vendors due to the continued delay in the renewal of the existing Land Use Licenses, KVL311B01 and KVRW12E01 pertaining to the Kuulu project. This action enables NxGold to maintain its rights under the Earn-In Agreement without having to incur the spending obligations, until clarity is reached in Nunavut.

19 Capital Structure 19 CASH POSITION As at May 1, 2018 Cash & Securities Short/Long Term Debt ~$1.5 million $Nil SHARE STRUCTURE Shares Issued & Outstanding 57,907,143 Fully Diluted 82,952,343 Warrants Options Insider Holdings 3.8% 10,390,000 (at C$0.05-C$0.07) 10,978,300 (at C$0.50) 426,900 (at C$0.25) 3,250,000 (at C$0.45-C$0.52)

20 20 Chris McFadden Chief Executive Officer Travis McPherson Vice President, Corporate Development Direct: TSX-V:NXN nxgold.ca