Advanced Stage Zinc Exploration in Ireland
RESOURCES CORP.
March 2018
Advanced Stage Zinc Exploration in Ireland March 2018 Important - - PowerPoint PPT Presentation
RESOURCES CORP. Advanced Stage Zinc Exploration in Ireland March 2018 Important Notice This Presentation is given by Group Eleven Resources Corp. (the Company), incorporation number BC1098004, registered office at 1050-400 Burrard Street,
RESOURCES CORP.
March 2018
This Presentation is given by Group Eleven Resources Corp. (“the Company”), incorporation number BC1098004, registered office at 1050-400 Burrard Street, Vancouver, BC, Canada, V6C 1M2 and is made subject to the terms outlined below. No securities regulatory authority has expressed an opinion about the information contained in this Presentation and it is an offence to claim otherwise. This document and its contents may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or disclosed or published, in whole or in part, for any
law in certain jurisdictions. Except for statements of historical fact relating to the Company, certain statements in this Presentation may constitute forward-looking information, future oriented financial information, or financial outlooks (collectively, “forward-looking information”) within the meaning of Canadian securities laws. Forward-looking information may relate to this Presentation, Company’s future outlook and anticipated events or results and, in some cases, can be identified by terminology such as “may”, “will”, “expected”, “estimate”, “potential” or “possible” or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the timing and amount of future production, the timing of construction of the proposed mine and process facilities, capital and operating expenditures, the timing of receipt of permits, rights and authorizations, and any and all other timing, development, operational, financial, economic, legal, regulatory and political factors that may influence future events or conditions, as such matters may be
Such forward-looking statements are based on a number of material factors and assumptions, and include the ultimate determination of mineral reserves, if any, the availability and final receipt of required approvals, licenses and permits, sufficient working capital to develop and operate any proposed mine, access to adequate services and supplies, economic conditions, commodity prices, foreign currency exchange rates, interest rates, access to capital and debt markets and associated costs of funds, availability of a qualified work force, and the ultimate ability to mine, process and sell mineral products on economically favourable terms. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in this Presentation. The Company has no specific policies or procedures for updating forward-looking information. Forward-looking statements are based upon management’s beliefs, estimates and opinions on the date the statements are made and, other than as required by law, the Company does not intend, and undertakes no obligation to update any forward looking information to reflect, among other things, new information or future events. Potential investors are cautioned against placing undue reliance on forward-looking statements. This Presentation does not constitute investment advice or a recommendation regarding the securities of the Company or an offer or invitation to subscribe for securities of the Company or its affiliates. Scientific and technical information in this Presentation has been approved by John Barry, who is a qualified person for the purposes of National Instrument 43-101 and who is not independent of the Company. Scientific and technical information is derived from the technical reports entitled “NI 43-101 Independent Report on a Base Metal Exploration Project at Ballinalack, County Westmeath, Ireland” with an effective date of October 6, 2017, “NI 43-101 Independent Report on a Base Metal Exploration Project at Stonepark, County Limerick, Ireland” with an effective date of October 6, 2017, and “NI 43-101 Independent Report on a Base Metal Exploration Project at Silvermines, County Tipperary, Ireland” with an effective date of February 28, 2017, each of which was prepared for the Company by EuroGeol Dr. John G. Kelly, PGeo, MIMMM, MIQ and EuroGeol Paul Gordon, PGeo, MSc of SLR Consulting (Ireland) Ltd. in accordance with National Instrument 43-101. Complete copies of the technical reports are available for review, in colour, on the System for Electronic Document Analysis and Retrieval (SEDAR) located at the following website: www.sedar.com. 2
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Vision
How do we get there / what makes us different? Big picture approach
Near-term catalysts
Strategic Shareholders
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Share Structure (Jan 2018) Owners Exercise Price (C$) Expiry Date Shares (msh) M.Cap (C$m) Cash (C$m) EV (C$m) Basic 59.8 $12.5 $4.5 $8.0 Options Directors $0.40 Feb-23 0.3 $0.1 Warrants MAG $0.21 Dec-19 3.4 $0.7 MAG $0.40 Dec-19 1.3 $0.5 IPO Agents $0.40 Jun-19 0.8 $0.3 IPO Investors $0.60 Dec-18 12.5 $7.5
78.0 $16.4 $13.6 $2.8 Institutional Shareholders: Bromma | Commodity Discovery | Curvature | Front Street | Galileo | Logiq | Northfield | Premium Gold & Metal | Robinson- Sauter | Sprott Asset Management | U.S. Global Analyst Coverage: Sprott Capital Partners
Insider 15% MAG Silver 16% Teck 6% Retail 54% Instit 10%
Ownership (basic)
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45
0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 18-Dec-17 02-Jan-18 17-Jan-18 01-Feb-18 16-Feb-18 03-Mar-18 18-Mar-18 C$/Sh Trading Volume (msh) Volume Close
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Source: modified from P. Tyler
G11 property Zinc deposit Zinc – small deposit
Gortdrum(Cu,shut)
Silvermines Tralee Stonepark
PallasGreen(Glencore) Galmoy(Lundin,shut) Lisheen(Vedanta,shut) Tynagh(shut) Navan (Boliden) Silvermines(shut)
25 50 kilometres
Ballinalack
Ireland - Geology
(economic threshold) Ireland – Fraser Institute (2017)
zinc deposits in Ireland and Europe
based in Ireland
Duck Pond, Alligator Ridge, Esquel, Coffee Creek and others
Excellon, Red Back, Rathdowney and others
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Board of Directors
▪ Dan MacInnis – Director, Chairman ▪ Bart Jaworski – Director, CEO ▪ Brendan Cahill – Director ▪ Alessandro Bitelli – Director, Chair of Audit Committee
Management
▪ Bart Jaworski – Chief Executive Officer ▪ John Barry – VP Exploration Strategy ▪ David Furlong – Chief Operating Officer ▪ Shaun Heinrichs – Chief Financial Officer
Technical Advisory Panel
▪ Peter Megaw ▪ Frank Hallam ▪ John Prochnau
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Navan-Style Potential Lies Beneath
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Ownership
Strategic location
Historic estimate
Thick, high-grade intercepts
History
Infrastructure
Metallurgy
Database
Sunk cost
* The resource for Ballinalack predated and is unclassified and not compliant with NI 43-101
sampling and data verification may be required by a Qualified Person before the historic resource can be verified and upgraded to be compliant with current NI 43-101 standards. A Qualified Person has not yet undertaken sufficient work to classify the historic resource as a current resource and the Company is not treating the historic resource as a current resource.
Ballinalack
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* The resource for Ballinalack predated and is unclassified and not compliant with NI 43-101 guidelines. Significant data compilation, re-drilling, re-sampling and data verification may be required by a Qualified Person before the historic resource can be verified and upgraded to be compliant with current NI 43-101 standards. A Qualified Person has not yet undertaken sufficient work to classify the historic resource as a current resource and the Company is not treating the historic resource as a current resource.
Fault Historic drilling Seismic survey Property boundary Pale Beds (Navan) ABL (Ballysteen) Waulsortian Lmst WL WL PB ABL Legend
Ballinalack historic estimate*
Other cross-cutting fault zones thought to be prospective
Ballinalack
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1.2m @ 16.9% 0.8m @ 10.7% 1.4m @ 20.4% 1.5m @ 6.9% 1.4m @ 11.9% 1.0m @ 3.5% Zn 34.4m @ 9.6% 19.9m @ 7.2% 5.3m @ 5.7% 1.5m @ 17.1% 1.5m @ 7.6% 9.1m @ 10.0% 1.5m @ 0.7% 45.6m @ 16.0% 24.4m @ 18.1% 24.4m @ 19.7% 10.7m @ 13.1% 4.6m @ 7.6%
Opportunity exists for resource expansion drilling and testing regional targets
Pale Beds (full test) Pale Beds (partial test) Waulsortian (full test) Waulsortian (partial test) No test (too shallow) Historic resource (1991) Fault zone Waulsortian limestone
1.5m @ 6.9%Pale Bed intercepts
34.4m @ 9.6%Waulsortian intercepts Legend (% = Zn + Pb)
Note: Historic drill results have not been verified by a Qualified Person as the samples forming the basis of such results are not available to the Company and accordingly no quality assurance programs or quality control measures were applied by the Company.
Ballinalack
12 TARGET Pale Beds (micrite) Waulsortian Lmst
B113 B54 B125 B126 B58 0.7% Zn+Pb
Upper ABL / Calp Lmst Waulsortian Lmst ABL (Argillaceous Lmst) Fault Pale Beds (Upper, shaley) Pale Beds (Lower, micrite) Basal clastics Lower Paleozoics Zn grade (<0.1 – 24.4%) Drill hole trace Legend Hole ends off-section
Note: Historic drill results have not been verified by a Qualified Person as the samples forming the basis of such results are not available to the Company and accordingly no quality assurance programs or quality control measures were applied by the Company.
Priority focus will be on Pale Beds – which host Navan Deposit 50km east of Ballinalack – immediately below known deposit
Ballinalack
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Using new seismic technology to find source of Pallas Green Trend
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Ownership
Strategic location
compliant, as at 31-Dec-2016)
History
Database
Sunk cost
Big picture
Stonepark
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STONEPARK (G11)
PG WEST (G11) PG WEST (G11) PG WEST (G11)
PALLAS GREEN (GLENCORE)
Newcastle West prospect Tipperary prospect
km km km
Limerick Basin New camp (Pallas Green discovered in 2002) Largest in terms of metal content in Ireland (except for Navan) Yet – main mineralizing fault has not yet been found Key tool – seismic surveys
Stonepark
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Prospects remain open in several key areas Sparse regional drilling has intersected evidence of other hydrothermal systems
WL ABL
0km 5km
Stonepark North Stonepark Crecora Rockfield Rathmore Limerick South Rochestown Ballyneety (Stonepark West) LLS ORS Waulsortian Lmst Old Red Sandstone Lower Limestone Shale Ringmoylan Shales ABL (Ballysteen) Knockroe Lithic Tuff Knockroe Basalt Flow Legend
Stonepark
17 Zn-Pb sulphide zone Lower ABL (argillaceous lmst) Waulsortian limestone Waulsortian equivalent Igneous dissolution breccia Black Matrix Breccia Alkali basalt intrusion Diatreme or igneous breccia Hydrothermal dolomite Plan View
055 074 049 040
N S
Note: Historic drill results have not been verified by a Qualified Person as the samples forming the basis of such results are not available to the Company and accordingly no quality assurance programs or quality control measures were applied by the Company.
N S
0m 150m Source: Nick Kerr, M.Sc. Thesis (2012)
Stonepark
drill testing Navan Bed target below historic estimate
confirmatory and step-out drilling at historic estimate
confirmatory and step-out drilling at Stonepark North
seismic survey to identify large-scale structures
drilling at Cooleen to expand known mineralization
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Back on the Market After 20 Years
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Source: G11, modified from EMD
Silvermines zinc mine (shut) Cooleen prospect Lisheen zinc mine (shut) Galmoy zinc mine (shut) Silvermines North
Crinkill (ironstone deposit with zinc)
Tynagh zinc mine (shut)
Rapla zinc prospect (Vedanta) Derrykearn zinc prospect
Silvermines
Waulsortian limestone
Historic Silvermines Zinc Mine produced approximately 10.8 million tonnes grading 7.4% zinc and 2.7% lead between 1968 and 1982 Cooleen prospect has not been explored in 20 years
Silvermines
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Long-section Cooleen prospect area Drill targets defined by Ennex in 1996 (not yet tested) Drill collars (historic) G11 drilling
Off limits for staking
G11 license (released from long-term moratorium in May 2015)
G11 licence
Waulsortian limestone
Silvermines deposit
Target 1 Target 2 Target 3 Target 4
0km 1km
G11 licence
Exploration to focus
regionally along trend to the northeast
Silvermines
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Long section
Note: Historic drill results have not been verified by a Qualified Person as the samples forming the basis of such results are not available to the Company and accordingly no quality assurance programs or quality control measures were applied by the Company.
Above holes define a mineralized zone approximately 300m long and 100m wide Exploration will focus on expanding this zone (currently open) and tracing it back to a feeder structure
Silvermines
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zinc zinc
intense black matrix breccia 2.1m @ 10.7% Zn+Pb * 2.0m @ 4.9% Zn+Pb) 7.3m @ 16.0% Zn+Pb *
* Historic drill results have not been verified by a Qualified Person as the samples forming the basis of such results are not available to the Company and accordingly no quality assurance programs or quality control measures were applied by the Company.
Silvermines
Dan MacInnis (64)
Chairman
mineral exploration worldwide (including Ireland)
(retired CEO) & Chairman, Balmoral Resource Ltd.
programs for Noranda, Battle Mountain Gold/Hemlo Gold
Cinco de Mayo, Duck Pond and other discoveries
B.Sc. Geology at Saint Francis Xavier University
Bart Jaworski (43)
Chief Executive Officer
Founder of GERL since June 15, 2015 (full time basis)
including 6 years as an exploration geologist
at Davy and Raymond James Ltd. (12 years combined)
stages of the Coffee Creek gold discovery, Yukon
in Geology from the University of British Columbia
Alessandro Bitelli (59)
Chair of Audit Committee
the resource industry and in public accounting
management team at the Lundin Group of Companies
and Chief Financial Officer
Back Mining Inc. during $9.2 billion takeover in 2010
Mining Corp.
Brendan Cahill (39)
Director
Excellon Resources Inc. (since 2012)
finance and law expertise
& VP Corp. Dev. with Pelangio Group of Companies
Pelangio Mines’ merger with Detour Gold Corp.
Exploration’s acquisition of the Manfo Project in Ghana
Phillips & Vineberg LLP
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Bart Jaworski (43)
Chief Executive Officer
Founder of GERL since June 15, 2015 (full time basis)
including 6 years as an exploration geologist
at Davy and Raymond James Ltd. (12 years combined)
stages of the Coffee Creek gold discovery, Yukon
in Geology from the University of British Columbia
John Barry (62)
VP, Exploration Strategy
and co-founder of GERL
Pasinex Resources Ltd. (zine mine in Turkey)”
Rathdowney Resources Ltd. (zinc in Poland and Ireland)
Sovereign Mines of Africa, Orogen Gold, Heatherdale Res.
University, MBA at Edinburgh School of Business
David Furlong (46)
Chief Operating Officer
experience as a geologist
GERL (since 2015) and GEME (since 2013)
General Manager, Projects for Rathdowney Resources Ltd.
implementation and management of exploration programs
and Mining Geology from the University of Wales
Shaun Heinrichs (44)
Chief Financial Officer
accounting experience, primarily in mining industry
practice experience with Ernst & Young LLP
producer)
Ventures Inc. (base metals producer)
University and Chartered Professional Accountant
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advice from time to time on an ad-hoc basis. The panel members are not directors or officers of the Company.
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30 years of experience focussed on silver and gold exploration in Mexico
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Chief Exploration Officer of MAG Silver Corp.
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Instrumental in Platosa, Juanicipio and Cinco de Mayo discoveries
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World-renowned expert in carbonate replacement silver, lead-zinc deposits
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Received several major awards, including Thayer Lindsley Award (2017)
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Ph.D. in Geology from the University of Arizona
Frank Hallam
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20 years of financial experience in mining industry, helping raise over $1 billion
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Negotiated transactions with Anglo Platinum, Barrick, JCI and Newmont Mining
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Director (and founder) of Platinum Group Metals Ltd.
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Previously Co-founder and Director, West Timmins Mining and MAG Silver Corp.
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CFO and Director, West Kirkland Mining; Director of Lake Shore Gold
John Prochnau
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Successful explorationist (Casey Research “Hall of Fame” in 2005)
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Associated with Alligator Ridge (Nevada) and Esquel (Argentina) discoveries
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Experience with Irish exploration via Billiton’s Irish operations in early 1980s
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Director of Carolina Gold Resources Inc.
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B.Sc. Mining Engineering, University Washington; M.Sc. (Geol), McGill University
David Whitehead
years experience in exploration, mine development and mining operations ith Billiton Group (1976-2002) as VP, Integration, Exploration and Innovation pertise in formation of strategic alliances with junior exploration companies Director of Tertiary Minerals plc, Consolidated Mines & Investments Ltd. Mining Geologist by training
RESOURCES CORP.
Suite 1050 – 400 Burrard Street Vancouver, BC, Canada V6C 1M2 Bart Jaworski, CEO E: b.jaworski@groupelevenresources.com M: +353-85-833-2463