Discovery and Development: Tomorrow's Future TSX.V: PPX BVL.PPX

Transcription

1 Discvery and Develpment: Tmrrw's Future

2 Frward Lking Statements and Cautinary Disclaimer Except fr the statements f histrical fact cntained herein, the infrmatin presented cnstitutes frward-lking statements within the meaning f the Private Securities Litigatin Refrm Act f Such frward-lking statements invlve knwn and unknwn risks, uncertainties and ther factrs which may cause the actual results, perfrmance r achievement f the Cmpany t be materially different frm any future results, perfrmance r achievements expressed r implied by such frward-lking statements. Althugh the Cmpany has attempted t identify imprtant factrs that culd cause actual results t differ materially, there may be ther factrs that cause results nt t be as anticipated, estimated r intended. There can be n assurance that such statements will prve t be accurate as actual results and future events culd differ materially frm thse anticipated in such statements. Accrdingly, readers shuld nt place undue reliance n frward-lking statements. Althugh PPX Mining Crp des nt intend this presentatin t be interpreted as a decisin t cmmence cmmercial prductin, it shuld be nted that a prductin decisin in the absence f a feasibility study f mineral reserves that demnstrates ecnmic and technical viability has increased uncertainty and a higher risk f ecnmic and technical failure assciated with any prductin decisin. Cautinary Nte t U.S. Investrs Cncerning Estimates f Measured, Indicated and Inferred Resurces: This presentatin uses the terms Measured, Indicated and Inferred Resurces. U.S. investrs are advised that while such terms are recgnized and required by Canadian regulatins, the Securities and Exchange Cmmissin des nt recgnize them. Inferred Resurces have a great amunt f uncertainty as t their existence, and great uncertainty as t their ecnmic and legal feasibility. It cannt be assumed that all r any part f an inferred resurce will ever be upgraded t a higher categry. Under Canadian rules, estimates f Inferred Resurces may nt frm the basis f feasibility r ther ecnmic studies. U.S. investrs are als cautined nt t assume that all r any part f an Inferred Mineral Resurce exists, r is ecnmically r legally minable. The technical infrmatin cntained in this presentatin has been reviewed and apprved by Quentin Brwne M.S.c., wh is a Qualified Persn as the term is defined in NI

3 Our Visin Aggressively explre ur Igr Prect in nrthern Peru Grw existing 730,500 Au Eq unce resurce at Callanquitas* New large, shallw lw-grade discvery at Prtachuels Drilling t begin at Tesrs Igr is evlving int a multi-depsit district scale prect Advance Mina Callanquitas t prductin PFS underway evaluating a 350 tpd high grade Au and Ag mine Begin planning fr pssible future mine expansin Dual catalysts f future prductin and nging successful explratin drive sharehlder value and create Peru s next mid-tier Au and Ag mining cmpany * 7.2 mt at 1.94 gpt Au and 71.8 gpt Ag (3.16 gpt Au Eq); please see Technical Reprt, amended September 27, 2013, available n the Cmpany s website r SEDAR 3

4 Discvery and Develpment: Our successful explratin drilling campaign: Thick, high grade intercepts define pen mineralized shts at Callanquitas: 12.6m at 8.34 gpt Au, 207 gpt Ag (11.10 gpt Au Eq) in CA New shallw, large scale lw-grade breccia zne discvered at Prtachuels: CA cut 40 m grading 2.72 gpt Au Eq Undergrund test mining and bulk sampling prgram at Igr: -Over 15,800 tnnes f bulk sample mined and prcessed, validating resurce mdel and cnfirming metallurgy -PFS expected Q2 2018, quantify prect ecnmics, prepare fr full scale mine develpment -Ten year cmmunity agreement in place 4

5 Upcming Milestnes Q Cmplete ten year cmmunity agreements t allw undergrund mine explitatin and explratin - DONE Q Receive permits t cnstruct heap leach prcessing facility designed fr future expansin Cmplete PFS, update resurce estimate, utline the ecnmics f a 350 tpd undergrund mine Q Pending successful PFS analysis, begin cnstructin f heap leach facility Onging thrughut 2018: Cntinuus explratin drilling n multiple targets thrughut the Igr Prect area TSX.V: PPX BVL.PPX 5

6 La Libertad District: Nrthern Peru Tp Tier Mining Jurisdictin #1 Gld Prducer in Latin America #6 Gld Prducer in the Wrld #2 Silver Prducer in the Wrld #2 Cpper Prducer in the Wrld #3 Zinc and Tin Prducer in the Wrld

7 IGOR Gelgic Setting Au and Ag mineralizatin is hsted by Cretaceus sedimentary rcks alng high angle structures and large breccia znes. Assciatin with Micene age prphyry system supprts large scale target cncept Over 7,400 meters f mineralized structure, hst t high grade Au and Ag, are untested by drilling with a huge vertical range t mineralizatin Discvery f large vlume near surface breccia cnfirms presence f bulk minable lwer grade Au and Ag mineralizatin: Prtachuel, Tesrs 7

8 IGOR: Tremendus Upside Ptential Elevatin 3800 Metres Dm Test Mining and Bulk Sampling Prgram Callanquitas Tesrs Village Igr Elevatin 3000 Metres 8

9 Ttal Land Package 1300 Hectares Village Callanquitas Callanquitas Undergrund develpment and test mining Dm Prtachuels Village Igr Tesrs Existing Inferred Resurces: 7.2 mt at 1.94 gpt Au and 71.8 gpt Ag (3.16 gpt Au Eq) cntaining 730,500 z Au Eq* *Please see Technical Reprt, amended September 27, 2013, available n the Cmpany s website r SEDAR TSX.V: PPX BVL.PPX 9

10 Phase One Drilling Results New high grade sht discvered n sectin NW4780 (CA-17-87): 5.5m grading 8.46 gpt Au and 104 gpt Ag (9.85 gpt Au Eq) Callanquitas Thick intercept f high grade alng sectin NW4690 (CA-17-86): 12.6m grading 8.34 gpt Au and 207 gpt Ag (11.10 gpt Au Eq) New thick lw-grade disseminated Au and Ag mineralizatin at Prtachuels 800m suth f Callanquitas (CA-18-94): 40.2m grading 1.18 gpt Au and gpt Ag (2.72 gpt Au Eq) Prtachuels 10

11 Â Â F F F Prtachuels Discvery Drill hle CA-18-94, intercepted 40.2 metres grading 1.18 gpt Au and gpt Ag (2.72 gpt Au Eq.) at a vertical depth f nly 25 metres CA-17-94, has a high grade cre: 6.0 metres grading 5.77 gpt Au, gpt Ag, (11.77 gpt Au Eq). Individual assays up t gpt Ag and 9.87 gpt Au (21.92 gpt Au Eq) The six metre interval has elevated levels f cpper (0.68%) and anmalus base metals, suggests a gechemical affinity t sme f the large prphyry depsits that characterize the nrthern Peru cpper-gld belt. 57.1m: 3.81 gpt Au, 731 gpt Ag (13.56 gpt Au Eq) Cntur lines Quartzite!. Executed drillhles Metrs N N N E E VIEW NORTHWEST E E N N CA-18-94! N N E E 3300 RL 3300 RL 3200 RL 3200 RL! RL 3100 RL RL 3000 RL 2900 RL 2900 RL Lithlgy Hydrthermal breccia 2800 RL Vein 2800 RL CA Breccia N50 ; -60 PPX Mining Crp m Fault IGOR prect Prfiritic dacite Siltstne N N CALLANQUITAS FAULT CALLANQUITAS FAULT F1 Histgram Au gr/t Histgram Ag gr/t Draw.: P.M. Sandstne Rad Office: Lima Datum: WGS84-17S 2700 RL Rev.: M.G. Date: 2700 RL Scale: Graphic Appr.: M.G. March, E E ª } N N Â 20 Â Â ª 5 4 ª Â Â N N??? N N CA N N E E N Â Â 11 Â E E CA g/t Au; g/t Ag; (2.72 g/t Au Eq) included: g/t Au;, g/t Ag; (11.77 g/t Au Eq) Waiting Assay ± 48 Sienna Minerals SAC

12 Prtachuels Discvery: Cnfirms the District-Scale Ptential f Igr Prtachuels is a new discvery, previusly undrilled, with the ptential t add significant new Au and Ag resurces t the Igr Prect Lcated ver 800 metres suth f the Callanquitas resurce Mineralizatin has been traced by drilling ver a strike length f at least 650m, t depths f >130m and has a true width f up t 40m. Au and Ag mineralizatin is pen in all directins, vertically and laterally Gelgic setting is very similar t the Au and Ag mineralizatin being mined at the nearby Shahuind mine TSX.V: PPX BVL.PPX 12

13 Callanquitas Lng Sectin CA pens up NW4870 & N4925 Open CA gpt Au Eq Open Open Open Open Open Drilling has help define a nrtherly rake t higher Au and Ag grades ( shts ), demnstrated grade cntinuity and pened up multiple areas fr resurce expansin (cntured Au Eq*m). TSX.V: PPX BVL.PPX 13

14 Callanquitas Sectin NW4690 Drilling n sectin sectin NW4690 cnfirms thickness, grade and gemetry f high grade mineralized sht: 12.6m grading 8.34 gpt Au and 207 gpt Ag (11.10 gpt Au Eq) including 3.3m grading gpt Au and 242 gpt Ag (30.97 gpt Au Eq) Individual assays within this intercept range up t gpt gld with 510 gpt Ag (65.04 gpt Au Eq) ver 0.65m, sme f the highest grades seen in drilling t date at Callanquitas. Open dwn-rake t the nrth. CA gpt Au Eq 14

15 Callanquitas Sectin NW4780 Drilling has identified a new high grade sht that remains pen at depth Au and Ag grades are increasing at depth in cnunctin with thickness Thick intervals f lwer grade material (2-3.5 gpt Au Eq) may ffer future mining ptinality High grade cre f structure: 2.0m grading gpt Au, 200 gpt Ag (20.08 gpt Au Eq) 15

16 Explratin Target: Dm Nrtheast-trending structures and related mants hst high grade gld and silver mineralizatin. Surface sampling includes ver 25 high grade channel samples that range in grade frm 16.0 t 50.4 gpt Au Histric drilling cut 2.8m grading 12.6 gpt Au, 303 gpt Ag (16.6 gpt Au Eq) (drill hle 5), mineralizatin is pen at depth and alng strike Three drill hles ttaling 850 metres are scheduled fr Phase One explratin prgram 16

17 Explratin Target: Tesrs Seventeen histric drill hles ttaling 1769m were cmpleted at Tesrs, an area f histric prductin dating t the Clnial era Significant drill intercepts: 2.0m grading 8.0 gpt Au and 113 gpt Ag (drill hle 7A) 75.2m grading 3.1 gpt Au and 109 gpt Ag (4.55 gpt Au Eq; drill hle 9d) Intercepts crrespnd t high grade undergrund samples demnstrating cntinuity f gld and silver mineralizatin TSX.V: PPX BVL.PPX 17

18 Explratin Target: Tesrs Gld and silver mineralizatin are hsted by nrth-trending structures with thick znes f brecciatin assciated with prphyry dacite dikes ver a strike length f > 1000m Surface sampling includes ver eleven high grade surface channel samples that range in grade frm 15.1 t 22.3 gpt Au Gelgic setting f suthern Tesrs area identical t Shauind; Large lwgrade bulk minable target? Five drill hles ttaling 1100 metres are planed fr Phase One campaign targeting bth high grade structures and lwer grade bulk minable targets 18

19 Test Mining and Bulk Sampling Prgram n Igr 4 MINA CALLANQUITAS Undergrund test mining and bulk Sampling Test mining and bulk sampling ccurs n the Igr 4 cncessin, the nly prtin f the prect subect t the RIVI streaming cntract. Mine is fully permitted fr up t 350 tnnes/day TSX.V: PPX BVL.PPX 19

20 High Bulk Sample Grades, Gd Recveries, Simple Grade Cntrl Over 12,000 tnnes f bulk sample averaging 8.30 gpt Au have been prcessed, 5,409 tnnes have been stckpiled grading apprximately 5 gpt Au Gld recveries cnsistent, ranging up t 91%, cnfirming metallurgical test wrk Grund supprt has been straightfrward, split sets in ramps with additinal timber supprt in stpes Visual grade cntrl utilized, Callanquitas structure is very cntinuus, easy t fllw TSX.V: PPX BVL.PPX 20

21 High Grade Undergrund Channel Sampling E E 5.4 gr/t E E 22 channel samples average 18.7 gpt Au ver a ~45m strike length, grade ranges frm 4.1 t 50.6 gpt Au N Ocherus quartz vein with OxFe and channels f breccia 9.1 gr/t 22.7 gr/t 31.1 gr/t 50.6 gr/t 39.5 gr/t 38.7 gr/t 36.8 gr/t 19.4 gr/t 9.2 gr/t Fault breccia with subangular sandstne and quartzite clasts, matrix with paniz N 5.7 gr/t 11.6 gr/t N E E Rck bx f quartz sandstne very fractured. 8 gr/t 49 gr/t 14 gr/t 17 gr/t 35 gr/t 37 gr/t 109 gr/t 2 gr/t 34 gr/t 40 gr/t 80 gr/t 15 gr/t 35 gr/t E Vein with hllw quartz streaks. OxFe as a fracture filler E N N E E SUB_Nv_2B 18.2 gr/t 11.4 gr/t 9.9 gr/t 6.3 gr/t 4.1 gr/t 5.4 gr/t 12.3 gr/t 30.8 gr/t 20.3 gr/t CH_2B 13.1 gr/t Rck bx f quartz sandstne very fractured E GEOLOGICAL MAP: SUB_LEVEL _ 2B Scale: 1:250 Date: 17/09/ E N SIENNA MINERALS SAC Assay Au 14 gr/t N Fault breccia with subangular sandstne and quartzite clasts, matrix with paniz. GL_ gr/t 32 gr/t 74 gr/t 188 gr/t 705 gr/t 1122 gr/ 157 gr/t 110 gr/t 298 gr/t N SIENNA MINERALS SAC 22 channel samples average 152 gpt Ag ver a ~35m strike length, grade ranges frm 2 t 1122 gpt Ag E E E PLANO GEOLOGICO: GL_3390 Assay Ag E Scale 1:250 Date: 23/09/17 Nv_3390 TSX.V: PPX BVL.PPX 21

22 Igr Develpment Infrastructure Acquired site 2 km frm mine fr future prcessing facilities Upgraded rad t access Malin prcessing plant, reducing transit time and cst 22

23 Permitting Underway Fr Prcessing Plant 350 metric tnne/ day heap leach prcessing facility including crushers, heap leach pads, Merrill-Crwe precius metal recvery plant, and supprt facilities. Permits expected Q PREPARADO PARA: TITULAR: INGENIERÍA CONCEPTUAL DEL PROCESAMIENTO DEL MINERAL DEL PROYECTO IGOR, PARA UNA CAPACIDAD DE 350 TPD. PLANO: TÍTULO: FECHA: DESARROLLO CAD: PROYECTO: DATUM: ELABORADO POR: UBICACIÓN: DISTRITO PROVINCIA DEPARTAMENTO HUARANCHAL OTUZCO LA LIBERTAD ZONA A: ESCALA: REVISADO: CÓDIGO: 23

24 Excellent Infrastructure and Accessibility Lcatin The Igr prect is lcated 158 kilmeters frm the destinatin city f Truill. Secnd largest city in Peru, with ver a millin peple. Truill has its wn internatinal airprt and sea prt fr easy access. Truill Pwer PPX has grid pwer t camp, with the ability t upgrade fr future prcessing facilities Camp Camp Wrk Frce New buildings, stick frame cnstructin, which includes: sleeping quarters fr 70 wrkers, kitchen dining area and large mine develpment and administrative ffices. Access t an experienced labr frce in the preeminent mining regin f Peru. Current wrk frce has supprted explratin activities fr six years Access Wrk Frce 24

25 We are Cmmitted t ur Cmmunities Ecnmic develpment Sustainable prgrams Open cmmunicatin Healthy & safe wrk envirnment Ethical cnduct Respect fr human rights Team 25

26 Grwing With Our Neighbrs-New Ten Year Cmmitment Emplyment Opprtunities: Lng term emplyment fr Callanquitas and Igr cmmunities Cmpleting lng term explratin and explitatin permits Educatin: Grwth thrugh agricultural educatin, prviding the cmmunity with seeds & cui, and training fr future success Expansin f educatin thrugh funding experienced teachers fr the cmmunity schl 26

27 Why PPX? Sund Strategy fr Value Creatin Explratin: Drilling n the Callanquitas structure has cnfirmed resurce grades and identified new high grade shts New Prtachuel lw grade breccia zne discvered 800 metre suth f Callanquitas ptential fr significant resurce expansin Drill testing Dm and Tesrs targets upcming with mre resurce expansin drilling planned Mine Develpment: Undergrund mine develpment underway Undergrund bulk sampling will validate resurce mdel and develp cst prfile fr PFS, expected Q2 2018, leading t prductin decisin Dual Metrics t Assign Value: A Grwing Resurce Base Cupled with Prductin 27

28 PPX Capital Structure TSX.V BVL SSE Trnt Stck Exchange Venture Blsa de Valres: Peru Santiag Stck Exchange Ttal Shares Outstanding: Market Capitalizatin: Ave. Trading Vlume (TSX, BVL, SSE; 3 ms.): Key Sharehlders: Peruvian Investrs Eurpean Institutinal Investrs PPX Management and Bard Nrth American Institutinal Investrs Retail TSX.V: PPX BVL.PPX M FD: M Cdn$40.3M FD: Cdn$53.1M >520,000 shares/day 27% 17% 7% 28% 21% 28