HIGH-GRADE GOLD-SILVER PROJECT WITH UPSIDE POTENTIAL IN MEXICO - - PowerPoint PPT Presentation
HIGH-GRADE GOLD-SILVER PROJECT WITH UPSIDE POTENTIAL IN MEXICO - - PowerPoint PPT Presentation
HIGH-GRADE GOLD-SILVER PROJECT WITH UPSIDE POTENTIAL IN MEXICO SEPTEMBER 2020 INVESTOR PRESENTATION TSX.V: PRYM DISCLAIMER THIS MANAGEMENT PRESENTATION (THE "PRESENTATION") WAS PREPARED AS A SUMMARY OVERVIEW ONLY OF THE CURRENT
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DISCLAIMER
THIS MANAGEMENT PRESENTATION (THE "PRESENTATION") WAS PREPARED AS A SUMMARY OVERVIEW ONLY OF THE CURRENT AFFAIRS OF PRIME MINING CORP. ”PRIME" OR THE "COMPANY") AND WAS NOT PREPARED FOR THE PURPOSE OF ASSISTING PROSPECTIVE INVESTORS IN MAKING A DECISION TO INVEST IN PRIME. PRIME DOES NOT MAKE ANY REPRESENTATION AS TO THE COMPLETENESS, TRUTH OR ACCURACY OF THE INFORMATION CONTAINED IN THIS PRESENTATION. THE COMPANY EXPRESSLY WARNS READERS NOT TO RELY ON THE INFORMATION HEREIN FOR INVESTMENT OR OTHER RELATED PURPOSES. ACCORDINGLY, ANY USE OF THIS INFORMATION IS AT YOUR RISK AND WITHOUT LIABILITY TO THE COMPANY. THE INFORMATION CONTAINED HEREIN IS NOT AND SHOULD NOT BE CONSTRUED AS EITHER A PUBLIC OR PRIVATE OFFER OR SOLICITATION TO PURCHASE SECURITIES IN THE CAPITAL STOCK OF PRIME INC. THE READER IS REFERRED TO HIS/HER PROFESSIONAL INVESTMENT ADVISOR REGARDING INVESTMENT RELATED DECISIONS RESPECTING THE SECURITIES OF THE COMPANY.
CONFIDENTIALITY
This Presentation is confidential and the contents are not to be reproduced or distributed to the public or the press. Securities legislation in all provinces and territories prohibits such unauthorized distribution of information. Each recipient of the information contained in this Presentation will treat such information in a confidential manner and will not, directly or indirectly, disclose or permit its affiliates or representatives to disclose such information to any other person or reproduce this Presentation in whole or in part, without the prior written consent of PRIME Inc..
FORWARD-LOOKING INFORMATION
This presentation contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations as well as a comprehensive list of risk factors are disclosed in the Company’s documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates change, other than as required by law and readers are further advised not to place undue reliance on forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward- looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.
QUALITY ASSURANCE/QUALITY CONTROL
The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's qualified person, Bruce Kienlen, P. Geo., VP Exploration of Prime Mining Corp.
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AN EVOLVING COMPANY
Recently revamped management and board
- Daniel Kunz has been recently appointed CEO and Andrew
Bowering has been appointed Executive Vice-President
- Murray John appointed Chairman of the Board
- Paul Sweeney and Marc Prefontaine appointed to the Board
- Management and Board have material ownership over 14%1
Existing Resource with upside
- High-grade oxide deposit with a favourable strip ratio
- Measured & Indicated: 633kozs gold and 16,604kozs silver2
- Inferred: 179kozs gold and 6,831kozs silver3
- Significant upside resource potential
- Only 40% of the strike explored to date
Strong financial position and backers
- Recently closed a $10M financing in June 2020 with new
cornerstone shareholders
- Long-term shareholders focused on delivering regional value
through oxides and high-grade upside
- Financial backing for 2020 – 2021 exploration budget
High-grade upside
- High-grade population below the oxides could add significantly
to resources
- Multiple intercepts with minimum 3m true thickness with gold
grades in excess of 10 g/t and silver grades ranging from 35 g/t to 1,000 g/t
- Upcoming exploration program to test high-grade targets
- 1. Shown on a fully diluted basis
- 2. M&I includes 19.8Mt at 1.00 g/t Au for 633kozs Au contained and 26.2 g/t Ag for 16.6Mozs Ag
- 3. Inferred includes 7.1Mt at 0.78 g/t Au for 179kozs Au and 29.9 g/t Ag for 6.8Mozs Ag
Source: Company disclosure
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CAPITALIZATION
- 1. Weighted average exercise price of C$0.83 (Low of $0.50 and High of $1.10); 2. Shown on a fully diluted basis
Source: Refinitiv, company disclosure
Capitalization and Balance Sheet Year to Date Share Price Shareholders
RBC Investment Management Commodity Capital Global Mining Merk Asset Management Terra Capital LLC Management and Board own 14%2
Ticker Ticker TSXV:PRYM Current Share Price C$/sh $2.05 Basic Shares Outstanding M 84.0 Warrants Outstanding1 M 36.9 Options Outstanding M 8.1 FDITM Shares Outstanding M 128.9 FDITM Market Capitalization C$M $264 Cash and Cash Equivalents C$M $8 Proceeds from ITM Securities C$M $37 Enterprise Value C$M $219
Analyst Coverage
David Stewart
Desjardins Securities, Canada
Oliver O’Donnell
VSA Capital, UK
0.0 1.0 2.0 3.0 4.0 $0.00 $0.75 $1.50 $2.25 $3.00 Jan-20 Mar-20 May-20 Jul-20 Volume (M) (C$/share) Total Volume Share Price
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BOARD OF DIRECTORS
- Non-executive director of OceanaGold Corporation and
Adventus Mining Corporation
- Served as a director of Tahoe Resources Inc. (sold to Pan
American Sild Corp.)
- Former CFO of Canico Resources Corp. (acquired by
Vale S.A.) and Sutton Resources Ltd (acquired by Barrick Gold) and executive for Plutonic Power Corporation
- Chairman of the Company’s Audit Committee
- Over
40 years experience in mineral exploration and mine development that includes over 11 million
- unces of gold and 600 million ounces of silver reserves
and resources
- Key member of the team that built Ocampo for Gammon
Gol, Lluvia de Oro, Magistral and El Cubo in Mexico
- Co-Founder and CEO of Orla Mining from 2015 until 2019
- Chairman of Discovery Metals Corp. and is a member of
the boards of directors of Osisko Gold Royalties, Ltd and O3 Mining Inc.
- Former President and Chief Executive Officer of Dundee
Resources Limited, a private resource-focused investment company, and Managing Director and a Portfolio Manager with Goodman Investment Counsel
- Mining engineering with extensive industry experience
working as a mining engineer and Master of Business Administration
Paul Sweeney
DIRECTOR - Independent
Marc Prefontaine
DIRECTOR – Independent
Murray John
CHAIRMAN & DIRECTOR - Independent
Paul Larkin
DIRECTOR - Independent
- +35 years leading New Dawn Group investment &
financial consulting firm. Previously an investment
- banker. Served as director & officer of TSX, NYSE and
TSX Venture Exchange listed companies
- Founding
partner, director & Chairman
- f
Audit & Strategic Committees at US Geothermal Inc. (sold in 2018 for $250M plus enterprise value)
Daniel J. Kunz
CEO & DIRECTOR
Andrew Bowering
EXECUTIVE VP & DIRECTOR
- Professional
engineer and Master
- f
Business Administration with over 35 years of experience in mining, constructing and financing global resource projects
- Former CEO of $4.2bn Ivanhoe Mines Ltd., founder and
CEO of US Geothermal Inc which sold for $250M
- Served as senior management and/or president level;
Morrison Knudson Corporation & MK Gold Company
- Built numerous mines including Castle Mountain and
American
- Girl. Was
with Chesapeake Gold and its Mexican Metates project (90kms from Los Reyes) for 17 years
- Venture capitalist, 30-years experience as owner operator
- f drilling companies and leadership in worldwide mineral
exploration and development
- Founded/funded Millennial Lithium Corp and built teams to
pursue precious, base and industrial metals from exploration to production
- Founder/operator of companies on the TSX Venture, TSX
main and American Stock Exchange including Caldera Environmental, Pinnacle Mines, ATW Gold, Cap-Ex Iron Ore, Millennial Lithium, and American Lithium Corp.
Source: Company disclosure
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MANAGEMENT TEAM
Gregory K. Liller
VP & COO
- Over
40 years experience in mineral exploration and mine development that includes over 11 million
- unces of gold and 600 million ounces of silver reserves
and resources
- Key member of the team that built Ocampo for Gammon
Gol, Lluvia de Oro, Magistral and El Cubo in Mexico
- Senior roles in public companies on TSX Venture, TSX
main, and American Stock Exchange including Genco Resources (TSX), Gammon Gold (TSX, AMEX), Mexgold Resources (TSXV) and Oracle Mining (TSX)
Ian Harcus
CFO
- Chartered
Accountant with extensive experience in financial reporting, corporate finance and management
- Former
Chief Financial Officer and Vice President Finance at Alio Gold Inc., which was recently acquired by Argonaut Gold Inc. and public accounting positions with Grant Thornton LLP and Ernst and Young.
- Extensive
background in financial management and reporting, corporate transactions and working with international jurisdictions including Mexico
Alex Tsakumis
VP INVESTOR RELATIONS
- Professional Geologist with over 20 years experience in
mineral exploration working with junior and major exploration companies
- Served as senior geologist with Canterra Minerals &
Independence Gold, VP Exploration for Diamonds North Resources and project geologist for BHP Billiton
- Played a key role in the discovery of the diamondiferous
Repulse Bay (Qilalugaq) and Amaruk kimberlite fields
Bruce Kienlen
- P. GEO., VP EXPLORATION
- Successful public markets specialist with over 25 years
- f experience in all aspects of equity financing
- Represented and managed mining companies listed on
major stock exchanges (including NYSE)
- Responsibilities have included corporate governance,
corporate communications, and maintaining strong relationships within investment banking and institutional investors
- Registered
professional geologist with +30 years
- f
experience in the mineral exploration business as both an exploration geologist and a mining executive
- Recently retired from Franco-Nevada Corporation and was
responsible for evaluating the geological and resource potential of numerous mineral deposits worldwide
- Previously Co-Founder and Director of Orla Mining
Kerry Sparkes
TECHNICAL ADVISOR TO THE BOARD
Daniel J. Kunz
CEO & DIRECTOR
- See bio on slide 5
Andrew Bowering
EXECUTIVE VP & DIRECTOR
- See bio on slide 5
Source: Company disclosure
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LOS REYES PROJECT
Sinaloa, Mexico
Source: Company disclosure
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LOS REYES PROJECT
POTENTIAL FOR SIGNIFICANT GOLD RESOURCE EXPANSION IN A PRIME LOCATION
Key Facts
Location
▪ Los Reyes is 43 km from the town of Cosalá in the historic mining region of Sinaloa
Size
▪ 37 contiguous claims over 6,300 hectares
Resource Upside
▪ Current resource open along strike and at depth ▪ 8 to 10 new high-grade underexplored surface discoveries for drill testing ▪ Untested new claim blocks added to project yet to have any exploration
Acquisition
▪ Own 100% and acquired Vista Gold’s 2% NSRs (surface and underground) and 49% back-in right
Infrastructure
▪ Direct access to roads, power, abundant water, and local labor force
Licensing and Permitting
▪ Successfully completed 30-year surface access rights agreement to ensure continued exploration, development and receipt of a mining and construction permit ▪ Permit application approved for new exploration drilling
Proximity to Key Precious Metal Projects
▪ Americas Gold and Silver (TSX: USA; NYSE: USAS) ▪ Minera Alamos (TSXV: MAI) ▪ First Majestic (TSX: FR; NYSE: AG) ▪ McEwen Mining (TSX: MUX; NYSE: MUX) ▪ Chesapeake (TSXV: CKG)
Source: Company disclosure
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LOS REYES PROJECT
Concession Boundary Showing:
- Current pit-constrained resource areas
- Additional mineralized zones
- Quartz vein and stringer breccia zones
- General road layout
Source: Company disclosure
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Cutoff Assurance Category Tonnes (000s) Gold Silver Grade (g/t) Contained (kozs) Grade (g/t) Contained (kozs) 0.22 g/t cutoff Measured & Indicated 19,752 1.00 633 26.15 16,604 Inferred 7,094 0.78 179 29.95 6,831 0.50 g/t cutoff Measured & Indicated 11,822 1.44 546 33.97 12,912 Inferred 3,956 1.13 144 42.90 5,456 0.70 g/t cutoff Measured & Indicated 8,697 1.74 488 38.77 10,840 Inferred 2,603 1.44 120 54.36 4,549 0.90 g/t cutoff Measured & Indicated 6,746 2.02 438 42.96 9,317 Inferred 1,859 1.71 102 64.23 3,839 1.0 g/t cutoff Measured & Indicated 5,914 2.17 413 45.20 8,595 Inferred 1,685 1.78 97 67.22 3,642
PIT-CONSTRAINED UPDATED RESOURCES1
- 1. Three year rolling gold price of US$1,329 / troy ounce and silver price of US$16.00 / troy ounce used
Source: Los Reyes Technical Report Dated April 2, 2020
LOS REYES MINERAL RESOURCE
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IMMEDIATE RESOURCE EXPANSION
Adjacent to Current Resource Areas
Source: Company disclosure
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CROSS SECTION (OXIDES)
Limited project drilling provides resource expansion opportunities Drilling No Drilling
Source: Company disclosure
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HIGH-GRADE UPSIDE
Drillhole From (m) To (m) Length (m) Au (ppm) Ag (ppm) 12GL-04 73.00 78.00 5.00 14.4 156 12GV-02 239.90 245.15 5.25 12.3 745 12SM-08 87.40 91.40 4.00 12.7 348 12ZAP-06 7.00 12.40 5.40 12.5 75 15GDLR-011 98.80 104.00 5.20 10.1 104 GL002 48.77 51.82 3.05 11.9 288 GL005 39.62 42.67 3.05 13.7 926 GL010 47.24 50.29 3.05 11.1 380 GL011 16.76 19.81 3.05 11.4 149 GL073 65.53 68.58 3.05 10.1 202 GW022 82.30 88.39 6.09 14.1 144 SM009 57.91 60.96 3.05 15.9 165
HISTORIC DRILL INTERCEPTS
Drillhole From (m) To (m) Length (m) Au (ppm) Ag (ppm) SM032 50.29 53.34 3.05 47.9 384 TA003 21.34 24.38 3.04 11.7 80 ZA007 30.48 38.10 7.62 10.1
- ZA016
62.48 67.06 4.58 11.4
- ZA062
25.91 32.00 6.09 10.8
- ZA068
47.24 50.29 3.05 10.7 51 ZA082 83.51 86.87 3.36 15.5 35 ZA093 54.86 57.91 3.05 12.4 87 ZA127 3.05 6.10 3.05 13.6 65 ZA148 35.05 41.15 6.10 32.2 80 ZA178 38.10 41.15 3.05 12.7 43 ZA196 51.82 54.86 3.04 14.3 42
Source: Company disclosure
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HIGH-GRADE UPSIDE
- Over 17.5 km of mineralized strike
length identified to date
- Over 10 km of untested strike
- Multiple high-grade surface grabs to
be followed-up ➢ 15.1 g/t, 14.8 g/t and 9.5 g/t gold at surface
- Numerous surface showings remain
untested
Source: Company disclosure
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HIGH-GRADE UPSIDE
ZAPOTE NORTH, ZAPOTE SOUTH, & TAHONITAS DEPOSITS – LONG SECTION DIVIDED BY GRADE ZONES
Source: Company disclosure
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BLUE-SKY POTENTIAL
Step-Out into New Areas
RECTANGLES
Show areas that host similar structures and mineralized zones without any previous drilling
Source: Company disclosure
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- A three-pronged approach starting with 7,000 metres of trenching plus 10,000 metres of drilling
- Program is planned to expand the known mineralized area and increase the existing mineral resource size
THE PATH FORWARD
A Three-Pronged Approach
Upgrade Resource
- Upgrade 7.1 million tonnes of current Inferred resource to the Measured and Indicated category
- a. Approximately 2,000 metres of surface trenching
- b. Approximately 1,500 metres of drilling in 12 to 15 holes shallow
- c. Represents about 12% of the initial budget of $6M
Expand Resource
- Add new gold and silver ounces by drilling along strike and down dip adjacent to the existing pit-constrained resource areas
- a. Approximately 1,500 metres of surface trenching
- b. Approximately 3,500 metres of drilling with some drill holes reaching 200 metres in depth
Define New Targets
- Define the potential to add new gold and silver ounces in unexplored areas where the existing data and the new mapping data confirm the
target potential
- a. Approximately 3,500 metres of surface trenching
- b. Approximately 5,000 metres of drilling with some drill holes reaching 350 metres in depth
1 2 3
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THE PATH FORWARD
Other Exploration Work in Parallel
Mapping and Sampling
- A new detailed base geologic map is being prepared for the entire Los Reyes concession area
- Surface mapping of the various rock types, alterations, geologic structures and other physical features
- Log and analyze 13,000 metres of core contained in 89 drill holes in Prime’s core shack in Hermosillo
- New regional soil and rock chip sampling and assaying will be completed to acquire fresh data
Metallurgical Test Work
- Past metallurgical tests show heap leach recovery as a viable option
- The drill and channel sample material sent to the assay lab will be analyzed for cyanide solubility using bottle roll and similar testing in order
to build a stronger database of recovery data across the project
Schedule and Logistics
- The program will work through the rainy season
- Mapping and core logging activity is expected to be complete in September 2020
- Trench channel sampling already in progress
- Drilling is expected to begin when the base mapping and core logging is complete, sufficient surface trenching has been completed, and the
rainy season has been accounted for regarding access, safety and road construction permitting in new areas
- Currently, the exploration program is expected to be active from July 2020 to March 2021
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THANK YOU
Footer
Prime Mining Corp. 1507 - 1030 West Georgia St. Vancouver, BC V6E 2Y3 Canada (604) 428-6128 info@primeminingcorp.ca www.primeminingcorp.ca T S X . V: P RY M
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APPENDIX
Los Reyes is One of the Highest Grade Oxide Deposits in the World
Source: Company disclosure, FactSet, Desjardins Capital Markets Note: Gold equivalent grades calculated at long-term consensus prices
0.00 0.50 1.00 1.50 2.00 Global Resource Grade (g/t AuEq)
Production Development 1.28 g/t
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APPENDIX
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LOS REYES – PHOTO WITH RESOURCE AREAS
Source: Company disclosure
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ZAPOTE LONG SECTION
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ZAPOTE LONG SECTION
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ZAPOTE SOUTH CROSS SECTION
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GUADALUPE EAST CROSS SECTION
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GUADALUPE WEST CROSS SECTION
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ZAPOTE SOUTH CROSS SECTION
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CROSS SECTION – SAN MIGUEL EAST
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