November, Indy Zinc Project, BC New Discoveries in an Emerging Canadian Zinc Belt

Transcription

1 November, 2018 Indy Zinc Project, BC New Discoveries in an Emerging Canadian Zinc Belt

2 Cautionary Statement This presentation contains certain statements that may be deemed "forward-looking statements". All statements in this presentation, other than statements of historical fact, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that 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. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. 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 the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and 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. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. 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. The technical content contained in this presentation is based in part on historical reports. The historical reports pre-date NI reporting requirements and the Company cannot verify the content of the historical reports and is not responsible for the accuracy of the content of the historical reports. Indy Project: Qualified Person: Brian McGrath, B.Sc., P.Geo. a is Qualified Person as defined in NI

3 A New & Accessible Canadian Zinc Belt Sedimentary Hosted Exhalative Type (Sedex) Mineralization in an Exceptional Location 2018 drilling discovers shallow, high grades (12.3% Zn, 3.0% Pb, 24.5 g/t Ag over 6.3 m) at 60 m below surface Sedex type mineralization at the B-9 zone at Anomaly B open for expansion Large, untested anomalies C and D with strong and distinctive geochemical signatures Key geological characteristics common to the large western Canadian Sedex zinc deposits are present at Indy Massive sulphide and distinctive feeder style mineralization Black shales and rift type sediments Sericite-pyrite schist (SPS) alteration Extensive sedimentary breccia () Indy represents a new, unexplored belt for Sedex style deposits with an exceptional location in Central BC 3

4 Easy Access & Infrastructure 100 km southeast of Prince George, the major hub for transport and industry in central BC 85 km from intercontinental (CNR) railhead 70 km from Yellowhead highway (Hwy 16) Well maintained BC Forestry Road access to property ~500 km from Trail zinc smelter 4

5 Western Canadian Sediment Hosted Zinc Deposits TOM-JASON HOWARDS PASS SELWYN PINE POINT Highway Railroad Carbonate-hosted sulphide Zn-Pb deposits SEDE Zinc Deposits CIRQUE RUDDOCK CREEK SULLIVAN 5

6 First Drill Program Near Surface Discovery Selected 2018 Drill Highlights (11 holes in 1,271m) Hole IB % Zn, 3.0% Pb, 24.5 g/t Ag (15.0% ZnEq) over 6.3m at 60m below surface Hole IB % Zn, 0.5% Pb, 3.4 g/t Ag (6.2% ZnEq) over 6.7m at 56m below surface Hole IB % Zn, 1.1% Pb, 7.3 g/t Ag (5.5% ZnEq) over 4.3m at 27m below surface 2.2% Zn, 0.8% Pb, 5.2 g/t Ag (3.0% ZnEq) over 5.4m at 33m below surface 3.5% Zn, 0.7% Pb, 4.6 g/t Ag (4.1% ZnEq) over 4.6m at 37m below surface Hole IB18-003* 9.3% Zn, 2.4% Pb, 17.9 g/t Ag (11.4% ZnEq) over 3.1m at 23m below surface Hole IB % Zn, 1.3% Pb, 8.9 g/t Ag (5.0% ZnEq) over 4.0m at 29m below surface * Low core recoveries Note: True widths are unknown. The intersections in IB are separated by lost core/no recovery. ZnEq calculation: metallurgical studies have not been completed and assumes 100% metallurgical recovery using Zn prices at $1.10/lb., Pb at $.80/lb. and Ag at $15/oz all $US. 6

7 View to Northeast Excellent Access, Low Relief, Under-Explored Area INDY ZINC PROJECT 7

8 Excellent Location & Infrastructure PG Airport (YS) 8

9 Geology & Geochemistry Compilation OMbs 1869 ppm Zn 1977 ppm Zn OMbs LEGEND Ordovician Mississippian Black Stuart Sediments Polymictic sedimentary breccia variably tectonized, silicified Anomaly D 1 km strike Zn > Ba > Pb 2654 ppm Zn NOT MAPPED Cambrian Dome Cr Fm siltstones Cambrian Mural Fm limestone OMbs Zinc in soil (>400 ppm) Zinc in soil (>1000 ppm) Anomaly C 700 m strike Zn > Ba > Pb CDc CMu Zinc Oxides (known, reported) Barite occurrence (reported) 6314 ppm Zn Bedding Foliation OMbs CMu 2018 DDH Soil sample site (highlighted result) Anomaly B 1.5 km strike Zn > Pb > Ba m B-9 Zone 2018 Drilling 6.3m at 15.0% ZnEq Geology Compiled from: InZinc (2018) C.J. Westerman, (1981) R. MacArthur (2002) Cominco (1990) K. Curtis (2015) 9

10 2018 Drill Hole Location & Contoured Zn+Pb in Soil (ppm) IB18-003,004 IB IB B-9 ZONE (ANOMALY B SOUTH) IB18-006, 007 IB18-002, 008 IB IB Zn+Pb in Soil Contour (ppm) Soil Stations m

11 2018 Drill Hole Locations & Geological Plan Map IB18-003, % Zn, 2.4% Pb, 18.0g/t Ag /3.05m Black Shales B-9 ZONE (ANOMALY B SOUTH) Ankeritic Siltstones and Shales IB18-010? IB % Zn, 1.1% Pb, 7.3g/t Ag /4.3m 2.2% Zn, 0.8% Pb, 5.2g/t Ag /5.4m 3.5% Zn, 0.7% Pb, 4.6g/t Ag /4.6m LEGEND Black Shales IB18-006, 007 Polymictic Breccia - silicic 3.9% Zn, 1.3% Pb, 8.9g/t Ag /4.0m Dolomite-Breccia Sericite Pyrite Schist (SPS) IB IB18-002, % Zn, 0.5% Pb and 3.4 g/t Ag / 6.7m Mineralization (+/- Zn, Pb, Ag) Mineralized Trend 12.3% Zn, 3.0% Pb, and 24.5 g/t Ag/6.3m Zn+Pb in Soil Contour (ppm) IB Soil Stations m Zn Oxides (45.5% Zn)

12 2018 Preliminary Drill Hole Model 0.25 km IB % ZnEq / 3.1m OPEN OPEN OPEN IB % ZnEq /6.3m View East at 070 Az Blue Surface Silver base of sericite-pyrite schist (SPS) unit 12

13 Drill Geology Plan & Contoured Zn+Pb in Soil (ppm)? B-9 ZONE (ANOMALY B SOUTH)? OPEN IB Massive Sulphide IB IB IB IB18-006, 007 IB18-002, 008 IB Massive Sulphide LEGEND Black Shales Polymictic Breccia - silicic Dolomite - Breccia? Sericite-Pyrite Schists (SPS) Mineralization (+/- Zn, Pb, Ag) Mineralized Trend Zn+Pb in Soil Contour (ppm) Soil Stations m

14 2018 Drilling -- Summary Successful first drill program Proving soil geochemistry works no surface outcrop 11 shallow holes (1271 m) 9 holes hit mineralization, 5 returning significant results Mineralization less than 60m below surface Discovered shallow, high-grade (12.3% Zn, 3.0% Pb, 24.5 g/t Ag over 6.3 m) at 60 m below surface at the B-9 zone open for expansion Sedex type deposit features recognized at the B-9 zone important property scale implications for exploration 14

15 2018 Drill Hole Intersections Drill Hole (HQ) From (m) To (m) Interval (m) Zinc (%) Lead (%) Silver (g/t) ZnEq (%) Depth Below Surface (m) Estimated Core Recovery (%) IB IB and and IB includes IB IB and IB includes and includes IB IB includes IB includes includes includes IB NSV IB Note: True widths are unknown. The intersections in IB are separated by lost core/no recovery. ZnEq calculation: metallurgical studies have not been completed and assumes 100% metallurgical recovery using Zn prices at $1.10/lb., Pb at $.80/lb. and Ag at $15/oz all $US. 15

16 Major Western Canadian Sediment Hosted Zinc Deposits TOM-JASON HOWARDS PASS SELWYN PINE POINT Carbonate-hosted sulphide Zn-Pb deposits CIRQUE SEDE Zinc Deposits Ancestral North America: Shelf and platformal facies Ancestral North America: Basinal facies Pericratonic terranes Slide Mountain terrane RUDDOCK CREEK SULLIVAN Modified from Nelson et. al. 2002,

17 Sedex Zinc Deposits Sedex deposits form in clusters termed belts, along sub-marine faults Known western Canadian deposits are some of the largest in the world but occur in challenging locations Two sub-types of deposits both can produce large deposits Vent-proximal Tom and Jason (Yukon), Sullivan Mine (southern BC) Vent-distal Howards Pass (Yukon), Gataga belt (northern BC) The Key Features Common to Western Canadian Sedex Zinc Deposits are Present at Indy Rifted sedimentary basin on the edge of ancient continental North America Three known Sedex producing time horizons are present, spanning the Ordovician to Mississippian ages Sedimentary sequences of black shale, mudstones, chert, and breccias Extensive sedimentary breccia units key marker units signifying syn-sedimentary faults; the pathways for exhalative fluids and mineralization Distinctive vent-proximal rock alteration including: ankerite, dolomite, sericite, pyrite, silica Dominant Zn-Pb mineralization and distal barite 17

18 Sedex Zinc Deposits Geologic Setting Numerous Recognizable and Characteristic Sedex Deposit Features are Present at Indy ANOMALY A unit Source: Sedimentary Exhalative (Sedex) Zn-Pb-Ag Deposit Model Scientific Investigations Report N US Geological Survey,

19 Features Common to Sedex Deposits Black Shales Black, carbonaceous, siliceous/cherty shales intercalated with sedimentary breccia 19

20 Features Common to Sedex Deposits Key Breccia A Unique Rock Type Common to Vent-Proximal Facies Sullivan (BC), Jason (Yukon) Matrix supported polymictic breccia () Quartz, chert, dolomite and shale clasts with minor sphalerite Altered Breccia bleached, silicified Four phases of silicification recognised 20

21 Geology & Geochemistry Compilation OMbs 1869 ppm Zn 1977 ppm Zn OMbs LEGEND Ordovician Mississippian Black Stuart Sediments Polymictic sedimentary breccia variably tectonized, silicified Anomaly D 1 km strike Zn > Ba > Pb 2654 ppm Zn NOT MAPPED Cambrian Dome Cr Fm siltstones Cambrian Mural Fm limestone OMbs Zinc in soil (>400 ppm) Zinc in soil (>1000 ppm) Zinc Oxides (known, reported) Barite occurrence (reported) Bedding Foliation Key Breccia Unit () Extends for Over 7 km Anomaly C 700 m strike Zn > Ba > Pb 6314 ppm Zn OMbs CDc CMu CMu 2018 DDH Soil sample site Anomaly B 1.5 km strike Zn > Pb > Ba m B-9 Zone - IB m at 15.0% ZnEq Geology Compiled from: InZinc (2018) C.J. Westerman, (1981) R. MacArthur (2002) Cominco (1990) K. Curtis (2015) 21

22 Features Common to Sedex Deposits Black Shale with Fine Laminations of Pyrite Key Lateral Indicator of Sedex Ores Finely laminated, syngenetic pyrite (>1mm) HQ sized drill core 22

23 Features Common to Sedex Deposits B-9 Zone Alteration Sericite-Pyrite Schist (SPS) Key Alteration Facies for Vent-Proximal Mineralization Strongly foliated, pyrite (10-40%), sericite schist Fine laminar, pyrite sericite in SPS Folded pyrite stringers in sericite schist Sericite-Pyrite Type Alteration is a Common Indicator of Exhalative Mineralization at Sedex (ie. Sullivan, BC) and VMS Deposits 23

24 Features Common to Sedex Deposits Mineralization Styles Massive Sulphide Hole IB % Zn, 2.4% Pb, 17.9 g/t Ag over 3.1m at 23m below surface (low core recovery). Shale and pyrite clasts in sphalerite (zinc) rich matrix Massive Sulphide Hole IB % Zn, 3.0% Pb, 24.5 g/t Ag (15.0% ZnEq) over 6.3m at 60m below surface. This banded section grades 40.9% zinc over 0.5m Feeder Style Hole IB Sphalerite and pyrite veinlets in silicified sedimentary breccia (). 5.8% Zn, 0.5% Pb, 3.4 g/t Ag over 6.7m at 56m below surface 24

25 20 Metres Indy Zinc Project, Central BC Sedex Zinc Deposits Idealized Cross Section Pb:Zn ratio decreases Ba:Zn ratio increases Pb:Zn ratio decreases Ba:Zn ratio increases Pyritic Black Shale Anomaly C and D? Anomaly B Synsedimentary fault zone Such as breccia flows, talus breccias and conglomerates AVERAGE SCALE 100 Metres Pyrite-Sericite Schist LEGEND Vent complex Massive, brecciated, crudely bedded pyrite, galena, sphalerite, Fe- and Fe-Mg-Ca-carbonates, barite (at top) ± pyrrhotite, sulphosalt Bedded ores Laminated and occasionally fragmented pyrite, sphalerite, galena, chert, barite, Fe-Mg carbonates ± beds of host lithologies Distal hydrothermal products Chert, barite ± minor sphalerite, pyrite, Ca-Mg-carbonates, magnetite, hematite, Mn enrichment Feeder zone Veins and replacement galena, sphalerite, sericite, pyrite, Fe and Fe-Mg- Ca carbonates (ankerite, ferroan dolomite) Altered Sedimentary Breccia () Hole IB Source: Sedimentary Exhalative (Sedex) Zn-Pb-Ag Deposit Model Scientific Investigations Report N US Geological Survey,

26 Geology & Geochemistry Compilation OMbs 1869 ppm Zn 1977 ppm Zn OMbs LEGEND Ordovician Mississippian Black Stuart Sediments Polymictic sedimentary breccia variably tectonized, silicified Anomaly D 1 km strike Untested 2654 ppm Zn NOT MAPPED Cambrian Dome Cr Fm siltstones Cambrian Mural Fm limestone OMbs Zinc in soil (>400 ppm) Zinc in soil (>1000 ppm) Zinc Oxides (known, reported) Barite occurrence (reported) Bedding Foliation 3.2 km of Geochemical Anomalies Anomaly C 700 m strike Untested 6314 ppm Zn OMbs CDc CMu CMu 2018 DDH Soil sample site (highlighted results) Anomaly B 1.5 km strike OPEN Pbx m B-9 Zone - IB % ZnEq / 6.3m at 60m below surface Geology Compiled from: InZinc (2018) C.J. Westerman, (1981) R. MacArthur (2002) Cominco (1990) K. Curtis (2015) 26

27 A New & Accessible Canadian Zinc Belt New discoveries of shallow, high grade, zinc dominant massive sulphide B-9 Zone: vent-proximal sedimentary hosted exhalative type (Sedex) mineralization, open for expansion 7 km length of key breccia units indicate extensive and characteristic syn-sedimentary faulting common to Sedex deposits 3 soil anomalies with aggregate length of 3.2 km located on western edge of breccia unit Cost-effective soil geochemistry is successfully targeting mineralization at B-9 zone Untested anomalies C and D have geochemical signatures (Zn>Ba>Pb) suggestive of ventdistal Sedex mineralization Large claim group (24 km strike), road accessible, close to rail and Prince George hub Low-cost, high-potential exploration in a new, accessible and emerging Canadian zinc belt 27

28 For further information contact: Joyce Musial, Vice President, Corporate Affairs (604)