Rediscovering Gold in Atlantic Canada

Transcription

1 Rediscovering Gold in Atlantic Canada TSX.V: OS OTCQB: OSSPF March 2019 TSX.V: OS OTCQB: OSSPF

2 Forward-Looking Statements All statements in this presentation, other than statements of historical fact, are "forward-looking information" with respect to Osprey within the meaning of applicable securities laws including, without limitation economic estimates and statements related to estimated mining costs.. Osprey provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to exploration findings, results and recommendations, as well as those risks and uncertainties identified and reported in Osprey s public filings under Osprey s SEDAR profile at Although Osprey has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Osprey disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law. All historic production, drill or sample figures quoted herein are based on prior data and reports obtained and prepared by previous operators. The Company has not completed the work necessary to verify results. The historical figures should not be relied upon and have not been verified by a Qualified Person. Technical aspects of this presentation have been reviewed and approved by the Qualified Person, Perry MacKinnon,P.Geo., hereby designated as a QP under National Instrument Dave Thomas, M.Sc., P.Geo. and Neil Pettigrew, M.Sc. P.Geo, are both a 'Qualified Person' for the purpose of National Instrument Standards of Disclosure for Mineral Projects of the Canadian securities administrators ("NI "). They have both approved the disclosure of, and are the 'Qualified Persons' responsible for the scientific and technical information of the resource estimate information. TSX.V: OS OTCQB: OSSPF 2

3 Company Overview Projects located in Nova Scotia, a safe, politically stable jurisdiction home to 3 historic gold rushes Attractive valuation; Goldenville, Osprey s most advanced project, has a current gold resource, excellent existing infrastructure; 5 minutes by paved highway from Sherbrooke, residential power, and an on-site office Attractive upside; Osprey is exploring five past producing gold projects: Goldenville, Caribou, Lower Seal Harbour, Miller Lake, and Gold Lake all within close proximity to one another Share Structure- TSX.V: 0S OTCQB: OSSPF Shares Issued 47,190,832 Options 2,965,000 Warrants (Price $0.40) 806,230 Warrants (Price $0.12) 18,854,321 Fully Diluted 69,816,383 Proximity to other projects: Caribou is 8 kilometers by road from Atlantic Gold's Touquoy mill site, Goldenville is 17 kilometers by highway from Cochrane Hill Osprey is actively working to expand its gold resources at Goldenville, and add significant nearsurface gold resources in additional deposits TSX.V: OS OTCQB: OSSPF 3

4 Management & Advisors Directors and Management Cooper Quinn, President & Director - Mr. Quinn has worked in mining and exploration since he graduated from Simon Fraser University with a degree in Earth Science. He has worked for a variety of exploration and development companies with projects in North America, Greenland, Europe, and the South Pacific Islands. Mr. Quinn was a Senior Geologist with Underworld Resources and most recently, Lion One Metals. His experience ranges from project management to acquisitions and DD for private equity. Jeffrey R. Wilson, CEO & Director - Mr. Wilson has 20 years of experience in the mineral exploration and mining investment industry. He has raised $50m through his contacts in the investment community including institutional investors, retail brokers, investment bankers, mining analysts and private investors. During his career, Mr. Wilson has been involved with multiple junior resource companies that have seen profitable take overs by mid-tier mining companies. Mr. Wilson is currently President & CEO of Precipitate Gold Corp. Perry MacKinnon, P.Geo, Vice President of Exploration - Mr. MacKinnon is an experienced geologist and prospector in Nova Scotia and New Brunswick. He has over 30 years experience in the mining industry, having worked continent wide on a variety of projects and large number of mineralized environments. Adrian Fleming, Chairman & Director - Mr. Fleming has over 35 years experience in the mining industry, most significantly President of Underworld Resources and their White Gold Project, which was acquired by Kinross Gold for $139M. He has been a part of numerous significant discoveries, including Porgera and Hope Bay John Wenger, CPA, Director - From 2011 to 2017, Mr. Wenger served as Chief Financial Officer and Corporate Secretary of Pilot Gold, where he was part of a management team that raised over $100 million, and successfully completed multiple property transaction deals and acquisitions. Mr. Wenger worked for Ernst & Young LLP from 2001 to 2011 where he acquired considerable experience in financial reporting for both Canadian and U.S. publicly listed companies, primarily in the mining industry. Mr. Wenger has been a Chartered Professional Accountant with the Chartered Professional Accountants of British Columbia since Greg Beischer, P.Geo, Director - Mr. Beischer currently serves as President and CEO of Millrock Resources, a successful project generator and has been involved in mining and exploration for 30 years. TSX.V: OS OTCQB: OSSPF 4

5 Why Invest in Nova Scotia? Extensive history of high grade production indicates large mineralizing events The province has supported three major gold rushes, however most mines closed around WWII and never reopened District-scale potential in an underexplored area Excellent access and infrastructure province wide Home to Canada s newest open pit gold mine operated by Atlantic Gold Corporation Modern exploration has led to new discoveries, ultiple other operators and explorers in the region, driving a new wave of exploration Modern mining allows previously un-economic low-grade gold to be profitably extracted Ed Williams Lese (Lease), Goldenville Gold District ca N.S. Archives and Records Management no. 3, Negative N Surface plant Guysborough Mines Ltd., Goldenville, N.S. Department of Natural Resources Historical Mine Photo Collection: Photo: tif Atlantic Gold Corporation Moose River Consolidated Processing Plant at Touquoy. w/ TSX.V: OS OTCQB: OSSPF 5

6 Meguma Terrane - Geology and Mineralization Structurally controlled, slate belt hosted gold systems Large, thick sedimentary sequences; well bedded, fine grained argillites and coarser greywackes dominate Large, district scale (50-100km) anticlines generally strike NE/SW control mineralization Historic mining focused on high grade, vein hosted mineralization relatively near surface (<250m) Similar to the Bendigo camp in Australia Potential for mineralization to continue to significant depth (>1,000m) Lower grade, disseminated gold within host rock slates/argillite now being successfully extracted through open pits by Atlantic Gold Meguma type gold mineralization is generally focused within the Goldenville Group, with some occurrences in the overlying Halifax TSX.V: OS OTCQB: OSSPF 6

7 Project Map & District Gold TSX.V: OS OTCQB: OSSPF 7

8 Proximity To Recent Success Atlantic Gold (TSX-V:AGB) Completed construction of Canada s newest open pit gold project in 2017, on time and on budget Strategy of exploring near known historic high grade mines, discovering open pit mineable resources and reserves Excellent AISC in first year of production, currently working to expand production profile over LOM Osprey Gold Actively exploring historic producing districts for near surface and disseminated mineralization with similar geology Well situated across the Terrane, with projects strategically located near existing and proposed infrastructure Moose River Consolidated Reserves Classification Mt Diluted Grade (g/t Au) Mined Au oz's (000) Proven Reserves Probable Reserves Total ,585 Atlantic Gold s Moose River Consolidated Project is an open pit bulk tonnage operation. Quoted reserves are from Atlantic Gold s NI Technical Report on Moose River Consolidated Phase 1 and Phase 2 Expansion, with an effective date of January 24 th, Goldenville is at an earlier stage than Atlantic s MRCM; there are no guarantees that the project will achieve a positive Preliminary Economic Assessment or eventual Pre-Feasibility, Feasibility or production status. TSX.V: OS OTCQB: OSSPF 8

9 Caribou - Project Overview 8 kilometers north of Atlantic Gold s Moose River Consolidated mill site Historic NI resource* from 2008 of 94,762 oz at 8.41 g/t gold Located on the Caribou-Cochrane Hill Anticline, host to several significant current resources 256 hectare claim group, surrounded by Atlantic Gold claim holdings Multiple styles of mineralization evident on the property; historically mined vein hosted gold, stockwork zones, and possible disseminated within host rocks * The reader is cautioned that a qualified person has not done sufficient work to classify this Historical Estimate as current resources and Osprey is not treating this Historical Estimate as a current mineral resource. While this estimate was prepared in accordance with National Instrument and the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves Definition Guidelines in effect at the time, there is no guarantee that it would be consistent with current standards and it should not be regarded as consistent with current standards. The Historical Estimate is relevant to obtain a reference to mineral potential present on the property. The Company has not undertaken any verification of the historical data upon which the historical estimates are based on. TSX.V: OS OTCQB: OSSPF 9

10 Caribou- Mineralization and Targets Historic mining focused near the apex of a dome along the Caribou-Cochrane Hill Anticline Reported past production of over 100,000 ounces between 1869 and 1955, at ~13 g/t gold Prior exploration showed evidence of near surface disseminated gold within host slates and argillites 2018 exploration consisted of surface trenching and sampling historic drill core in areas where this style of mineralization was thought to be present Other mineralization styles on the property include significant vein stockwork zones Drill results in this style of mineralization include 11.2 metres at grams per tonne ( g/t ) gold in Hole CM and 9.8 metres at 12.2 g/t gold in Hole SB She TSX.V: OS OTCQB: OSSPF 10

11 Successful 2018 Exploration Work at Caribou focused on disseminated mineralization targets at surface (Elk, Caffery, and Nova Scotia zones), working to define drill targets through sampling historic core in unsampled zones and trenching TSX.V: OS OTCQB: OSSPF 11

12 Caribou Core Sampling Results Past exploration focused on high grade vein and stockwork mineralization, drill core was often left unsampled between veins Osprey sampled seven holes previously unsampled core Hole CM87-23 returned m of 1.58 g/t Au, or 0.80 g/t Au with a 70 g/t Au grade cap Hole CM87-43 returned m of 0.88 g/t Au TSX.V: OS OTCQB: OSSPF 12

13 Caribou Trench Sampling Results Channel sampling at the Elk Zone, in the northwest portion of the property, has delineated a zone of mineralization at surface with at least 160 meters of strike ELK18-01: 8.0 m of 1.2 g/t Au within 24.7 m of 0.7 g/t Au Open in both directions, and down dip, priority drill target for 2019 TSX.V: OS OTCQB: OSSPF 13

14 Goldenville- Infrastructure & Location Nova Scotia s largest historic gold producer, discovered in 1862 Excellent existing infrastructure with provincial highway access, power availability, and close to a nearby town Proximity to other projects: Goldenville is 17 kilometers by highway from Atlantic s Cochrane Hill Project 2017 drilling successfully expanded known mineralization at Goldenville Main Zone, and evidenced disseminated mineralization at Mitchell Lake TSX.V: OS OTCQB: OSSPF 14

15 Goldenville-Inferred Resource Estimate (2017) Goldenville Mineral Resource and Sensitivities, Near Surface Cut Off Tonnes Capped Au (g/t) Capped Au (Oz) Uncapped Au (g/t) Uncapped Au (Oz) ,370, , , ,240, , , ,125, , ,000 Goldenville Mineral Resource and Sensitivities, Underground Cut Off Tonnes Capped Au (g/t) Capped Au (Oz) Uncapped Au (g/t) Uncapped Au (Oz) ,560, , , ,310, , , ,030, , ,000 Please refer to Appendix A for Notes to the March 2, 2017 NI Inferred Mineral Resource. Mineral resources are not mineral reserves and do not have demonstrated economic viability. No mineral reserves have as yet been defined. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be considered for estimation of mineral reserves, and there is no certainty that the inferred mineral resources will be realized inferred resource includes a near surface and an underground resource with a cut-off of 0.75 g/t and 2.0 g/t respectively. TSX.V: OS OTCQB: OSSPF 15

16 Goldenville Exploration 3,044m program focused on Near surface resource expansion in areas of sparse drilling, and along strike Geophysical argillite targets, targeting zones of intense veining, and potential disseminated mineralization Results from 2017 show significant areas for resource expansion Exploration holes at Mitchell Lake Zone intersected disseminated mineralization TSX.V: OS OTCQB: OSSPF 16

17 Goldenville - Mitchell Lake Drilling Exploration target on a parallel structure 3.5km to west of the current Goldenville Resource with very little historic exploration Osprey drilled 3 holes in the Mitchell Lake Zone in 2017 Results show broad zones of disseminated gold mineralization, as well as high grade veins over 150 meters of strike Open in all directions and at depth, drilling planned to test strike extent TSX.V: OS OTCQB: OSSPF 17

18 Lower Seal Harbour - Project Overview Approximately 35 kilometers by road from Goldenville Production records indicate gold is found both in the high grade veins and disseminated within host argillites Mineralization outcrops at surface Veins are reported from 1.4m to greater than 10m in width, and were commonly mined as a 50m wide mine structure Adjacent to Anaconda Mining s Goldboro Project; known host to disseminated mineralization Between , Lower Seal Harbour reportedly produced 39,654 ounces from 53,534 tons mined (0.74 oz/t), according to historic production records TSX.V: OS OTCQB: OSSPF 18

19 Other Projects - Overview Miller Lake Approximately 14 kilometers from Goldenville with historic production, and limited recent exploration Along strike from Dufferin Mine, currently in production (Resource Capital Gold, TSX.V:RCG) Two historic shafts, with strike length over 1km, mineralization starts at surface Gold Lake Approximately 7 kilometers from Atlantic Gold s Touqouy mine, and 9 kilometers from the Moose River Consolidated mill Along strike from Goldenville, on the same anticline Evidence of disseminated mineralization in the host rocks from 2012 exploration work, as well as historic data Historic high grade production from veins, as well as recent surface sampling indicating disseminated mineralization TSX.V: OS OTCQB: OSSPF 19

20 Moving Forward 2018 program continued to successfully demonstrate disseminated gold mineralization at Osprey s projects Caribou Continue testing mineralization along strike NE at Elk Zone Drill test down dip at Elk, and NS Zone Drill test stockwork zones for wider high grade intersections Goldenville Follow up drill program at Mitchell Lake Continue to expand resource at Goldenville Main Zone Eastern extension on North and South Limbs Northwest area identified in 2014 exploration program TSX.V: OS OTCQB: OSSPF 20

21 Acquisition Terms Goldenville, Lower Seal Harbour, Gold Lake, Miller Lake $1M over three years (2016) $150k upon signing definitive agreement $250k at years one and two $350k at year three 2% GMR on Goldenville 1% buyback for $750k Additional 0.5% buyback for $375k Caribou $900k over three years (2016) $200k upon signing definitive agreement $200k at year one and two $300k at year three $100k/yr spending commitment during term of agreement 3% NSR 1% buyback for $500k Additional 1% buyback for $750k TSX.V: OS OTCQB: OSSPF 21

22 Projects Snapshots TSX.V: OS OTCQB: OSSPF 22

23 Appendix A: Notes to the March 2, 2017 NI Resource Footnotes to mineral resource statement: Mineral resources are not mineral reserves and do not have demonstrated economic viability. No mineral reserves have as yet been defined. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be considered for estimation of mineral reserves, and there is no certainty that the inferred mineral resources will be realized. Fladgate undertook data verification, and reviewed historical quality assurance and quality control programs on the mineral resources data. Fladgate concluded that the collar, survey, assay, and lithology data were adequate to support mineral resources estimation. A dry bulk density value of 2.67 g/cm3 for all material was assigned from similar Meguma type gold mineralization with similar rock types in Nova Scotia. Fladgate assumed a metallurgical recovery of 90% based on a qualitative assessment of the gold mineralogy and grain size. Near surface mineral resources are constrained within an open pit shell optimized with an L G algorithm. A process and G&A cost of $25 and a mining cost of $3.00/tonne have been used. Underground resources have been constrained within a grade shell using a 2.0 g/t threshold, assuming a mining cost of $50/tonne in addition to the operating costs. Isolated blocks were removed from the grade shell. The mineral resources have been depleted using solids representing underground development and areas of stoping for post 1920 s historical mining for which technical drawings are available, however no records are available for the abundant, pre 1920 s mining development, which is known to have occurred throughout the property. Blocks were classified as inferred in accordance with CIM Definition Standards. The contained metal figures shown are in situ. The resource estimation methodology incorporates a significant amount of external and internal dilution due to the use of 2 meter composites, probabilistic domaining and the grade smoothing introduced by ordinary kriging with a variogram which has a short range of influence. No assurance can be given that the estimated quantities will be produced. All figures have been rounded to reflect accuracy and to comply with securities regulatory requirements. Summations within the tables may not agree due to rounding. TSX.V: OS OTCQB: OSSPF 23

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