A New Investment Opportunity in Montana s Prolific Porphyry-based Copper Gold Camp

Transcription

1 A New Investment Opportunity in Montana s Prolific Porphyry-based Copper Gold Camp May

2 Safe Harbor and Forward Looking Statements: This presentation is for informational purposes only. It is not an offer for the purchase or sale of securities and it is not intended to be relied upon. Although all information is derived from sources which Broadway Gold Mining Ltd., and its officers, directors and advisors believe to be reliable and accurate, neither Broadway Gold Mining Ltd., or its officers, directors or advisors warrant its accuracy. Recipients are advised to conduct their own due diligence. CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This presentation includes information, statements, beliefs and opinions which are forward-looking, and which reflect current estimates, expectations and projections about future events. Statements containing the words believe, expect, intend, should, seek, anticipate, will, positioned, project, risk, plan, may, estimate or, in each case, their negative and words of similar meaning are intended to identify forward-looking information. By its nature, forward-looking information involves a number of known and unknown risks, uncertainties and assumptions concerning, among other things, Broadway Gold Mining Ltd. s ( Broadway ) anticipated business strategies, anticipated trends in Broadway s business, anticipated future revenue streams, and anticipated market share, that could cause actual results or events to differ materially from those expressed or implied by such forward-looking information. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking information contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. Although Broadway has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Forward-looking information contained in this presentation is based on Broadway s current estimates, assumptions, expectations and projections, which Broadway believes are reasonable as of the current date. Broadway can give no assurance that these estimates, assumptions, expectations and projections will prove to have been correct. You should not place undue reliance on forward-looking information contained in this presentation. Forward-looking statements contained in this presentation are made of the date of this presentation and, except as required by applicable law, Broadway assumes no obligation to update or revise them to reflect new events or circumstances. Historical information contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. In particular historical results should not be taken as a representation that such trends will be replicated in the future. 2

3 Investment Highlights Collectively, Broadway s management team has created ~C$2 billion in shareholder value in past ventures. Technical and financial experience to advance the project. The Madison project is fully permitted for advanced exploration and bulk extraction. The underground is MSHA compliant and rehabilitated. 3

4 Investment Highlights: Two High Grade Gold + Copper Mines 100%-owned* Madison Cu-Au project located in the heart of southwest Montana s prolific gold and copper belt Hydro on sight. All weather access. All services and supplies local. Close to contract milling - 20 Miles from Golden Sunlight Coronado Bulk Sample Grade Grade Mill Stlmt Mill Settlement Heading Level Mineralization Tons OPT Au Percent CU Oz Au lbs CU 600 MS 4, , , MS 1, , Chalcocite 3, , MS 2, ,874,600 Chal + Native 100 Copper 1, ,800 Chal + Native 200 Copper 1, ,000 Totals 14, ,570 3,020,600 High-grade copper and gold intersections + two-mile-long trend of geophysical, geological and geochemical indicators of numerous shallow and deep targets New latite porphyry zone discovered. Exploration points toward a large Cu-Au porphyry system *Subject to underlying royalties 4

5 Board of Directors, Management & Advisors Thomas Smeenk, BA President and CEO Steve Hanson Chairman Duane Parnham Director Suzanne Wood, MBA CFO and Director Dr. Roger Laine, PhD Independent Director Victoria Donato, CPA, CA Independent Director R. Timothy Henneberry, P. Geo Geologist, Qualified Person Phil Mulholland, CPG Site Project Geologist Jarred Zimmerman, M.Sc. Site Geologist Dan Everett, B.Sc. Site Forman Dr. John Childs et al Childs Geoscience R. S. Middleton, P. Eng. Consulting Geophysicist Shawn Parnham, CPA, CMA Independent Director 5

6 Porphyry Copper Gold Camp: Located 23 Miles SE of Butte s 130+ year Copper Mine and 20 Miles SW of Barrick s Golden Sunlight 6

7 Madison Property Map 7

8 Madison Coronado History Broadway Acquired Madison October 2016 Estimated US$10 Million and C$3 Million spent by Coronado Coronado Development and Work History core holes over 2,419.5 feet 8 core holes over 2,940.5 feet, underground development to 200 feet 4 underground core holes over feet, underground development to the 300 feet Shipment to Barrick Golden Sunlight Mine, oxide gold 4 underground core holes over feet; underground trial mining at 300 feet; Copper shipment to China 7 underground core holes over feet Shipment to Kinross Republic, sulfide gold Underground trial mining at 600 feet Shipment to Philipsburg Mill, sulfide gold 3 underground core holes over 340 feet, underground development to 600 feet Shipment to Kinross Republic Mill, sulfide gold Care and maintenance 8

9 Broadway: A New Beginning Significant Milestones Achieved Surface mapping and sampling Surface drilling 19 holes over 13,071 feet multiple high-grade copper/gold zones discovered Underground drilling below 600 feet 7 holes over 1,007.5 feet bonanza grade massive sulfide intercepted 3D modeling (ongoing) Discovery of new latite porphyry zone of mineralization OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT Oct Nov Dec Jan Feb Mar Apr May Jan Jul Aug Sep Oct Nov Underground rehab to 600 feet Staked additional 70 claims, increased total acreage to 1,871+ EM over main property block, also down hole Surface mapping and sampling over new property (ongoing) Soil geochemistry over entire property (ongoing) Completed new geological model Phase III drilling commenced Following porphyry discovery, staked additional 32 claims to increase total acreage to 2,514 New claims cover favorable geological and geophysical targets Two phases of induced polarization (IP) completed Several targets, including deep porphyry, identified 9

10 Broadway Cu-Au Skarn Overview Interpretive cross section showing an inferred porphyry system at depth superimposed on a geologic section presented by the US Geological Survey (O Neill, 1996). After O Neill, et al.,

11 Broadway Cu-Au Skarn Overview The Broadway Cu-Au skarn district includes a two-mile by one-mile zone of skarn and alteration. It includes: A multi-episodic mineralization history Massive sulfides Strong geophysical anomalies Extensive recrystallization and propylitic alteration Late stage silicification to form jasperoids Massive sulfides with strongly magmatic sulfur isotope values Jasperoid overprints much of the massive sulfide deposit and skarn which correlates with gold Exploration target: A large Cu/Au porphyry at depth, which produced a generation of fluids that formed the skarn zones discovered to date along faulted intrusive contacts currently exposed in accessible mine workings and at surface All of which point to a significant source of volatiles including sulfur, and a likely Cu-Au porphyry system at depth 11

12 Phase I/II Surface Results (selected)* Number Zone ft from ft to ft length m length gpt Au % Cu C17-01 jasper C17-03 jasper C17-05 jasper C17-05 jasper C17-07 jasper C17-09 jasper C17-10 sulfide C17-12 jasper C17-13 jasper C17-14 jasper C17-15 jasper C17-16 jasper C17-17 jasper C17-19 jasper C17-20 sulfide *The drill intersections are down hole widths not true width. 12

13 Underground Drilling (selected)* Objective of program was to test down dip extension of the auriferous massive sulfide zone below 600 feet Zone was discovered by Coronado as they continued to drive decline to further depth Small program of 1,007 feet in seven holes tested the zone with considerable success Massive sulfide Assay intersection Number ft from ft to ft length ft from ft to ft length length m gpt Au % Cu U17-01 in footwall U U U U U U17-07 short C *The drill intersections are down hole widths not true width. 13

14 3D Model Looking North Jasperoid Gold Shell Skarn 14

15 Underground Drilling Intersects Bonanza Gold Grades 600 Feet Underground Drilling The drill intersections are down hole widths not true width. 15

16 Copper Zone (Deposit) of 927 drill samples from 72 drill intersection, using 40-foot level plans followed by 40-foot x-sections constrained within geologic boundaries Ore calculations will be released with a Report Internally prepared estimate May 18 16

17 Open in all directions, the 600 level Averages OPT Au based on 169 samples from 14 weight-averaged drill intercepts UG17-05 reported 75 feet averaging opt Au U reported 74 feet averaging opt Au Internally prepared estimate May 18 17

18 Possible Drill Targets Rader Creek Pluton Mise-a-la-Masse and mine step-out target area Mise-a-la-Masse target for massive sulfides North and East Central chargeability and TDEM target area Paleozoic section Area of historic exploration Northeast Mag High and TDEM target area North Central and East Central are targets to test deep copper porphyry system North East is target for massive sulfides Precambrian Southeast contains two targets for Cu-Au porphyry South East chargeability target area 18

19 Geophysics Interpretation Mise-a-la-Masse and mine step-out target area North and East Central chargeability and TDEM target area Northeast Mag High and time domain electromagnetics (TDEM) target area Southeast chargeability target area 19

20 Phase III Drill Program Porphyry Testing multiple high-priority targets identified through detailed programs in 2017; 3,050 metres (10,000 feet) Targets extend over a well-mineralized, twomile-long by one-mile-wide zone of geophysical, geological and geochemical indicators First three holes - distinct IP and TDEM targets interpreted to be associated with a copper-gold porphyry system at depth Latite porphyry discovered in holes C17-24 and C17-C27 (see news release dated January 22, 2018) Phase III drilling suggests that porphyry body appears to be of significant size with intercepts to date measuring up to 234 metres open in all directions New discovery in regional trend near Butte region Broadway is fully funded for completion of the Phase III program C17-24 Latite porphyry showing the phyllic alteration C17-24 Carbonate-latite porphyry contact, note the chaotic folding and brecciation 20

21 Share Structure & Financing TSX.V: BRD OTCQB: BDWYF 15 Million Units of a Share $0.20 and a half warrant at $0.40 Qualified Person R. Tim Henneberry, P.Geo., a Qualified Person as defined by NI , has reviewed and approved the technical information contained in this document. *As of February 28, 2018 **As of April 19, 2018 ***Fully diluted shares Shares Outstanding* 37.4 M Share Price** $0.20 Market Cap** $7.49 M Cash* $0.503 M Debt* Nil Management/ Board*** 15.72% 52-week Chart** Source: 21

22 Past Production and Future Bulk Extractions Madison county has a long history of mining and is one of the best jurisdictions in Montana to mine as the Broadway and Madison Mines have a history , of high grade production to a depth of 750 feet. Permitted, MSHA compliant, the infrastructure, equipment, and contractors are readily available to complete bulk extractions. Processing, previously contracted, is available nearby. Our chief geologist and mine maintenance manager are Madison County-based Montanans. We plan and will execute a continuous cohesive community communication strategy, to keep our neighbors informed of our progress. 22

23 2018 Milestones Expand underground gold zone and copper zones via drilling Short holes into the 600 foot ore zone Pivot and drill short holes under the 900 Drill below the Broadway + Madison Mines along the contact Once mineralization is confirmed below these mines, we plan to undercut each zone to prove down dip extension Partner with a Major, Vector to the most likely source of the Porphyry, drill to earn-into the asset Deliver National Instrument (NI) compliant resource/reserve calculation Contract a Mining Engineer to complete preliminary economic assessment and plan to bulk sample the copper zone Increase institutional awareness and market support Continue building strong shareholder support and capital appreciation Continue to De-risk project for future M&A transaction 23

24 Appendix 24

25 Broadway/Madison History Broadway Mine Underground gold mining s Developed up to a depth of 650 feet with lateral development of 2,000 feet and cumulative production of 144,000 ounces of gold Historic database of 116 drill holes from drilling between 1983 and 2010 Mainly targeting gold Early drilling did not regularly assay for copper Several significant copper intersections never followed up 25

26 Broadway/Madison History Key Highlights 1986 Inspiration 19 core holes over 5,004 feet; 15 reverse circulation (RC) holes over 4,605 feet Estimate of ~1.41 M tons grading 3.19 g/t Au (non compliant) First mention of deep porphyry target 1992 BMR Gold Estimate of 1 M tons grading 2.81 g/t Au and 1.9 M tons grading 0.64% Cu Mention of a deep porphyry target Broadway Gold Mining Ltd. has not done sufficient exploration to verify these two historic estimates and is not treating them as a current resource and further the historic estimates cannot be relied upon. 26

27 Regional Geology and Tectonics 27

28 Regional Geology The Broadway mine is at the approximate intersection of two major tectonic zones controlling mineralization regionally: The Great Falls Tectonic Zone controls porphyry, gold and other mineralization; and, The Southwest Montana Transverse Zone (Perry Line) controls syngenetic mineralization in the Belt Basin. Southwestern Montana is characterized by two main porphyry, skarn and gold mineralizing events: One is Cretaceous (e.g., Butte, Golden Sunlight) A second is Eocene (e.g., New World, Emigrant) The early skarn/porphyry and later jasperoid at Broadway may represent a continuum during Cretaceous time, or it may reflect two distinct mineralizing events, possibly as late as the Eocene. The bonanza grades at the Broadway and Hudson mines might therefore represent upgrading of early Cu-Au values by later remobilization and enrichment. 28

29 Porphyry-Skarn-Jasperoid Deposits at Ely, Nevada Ely NV Schematic Cross-Section Comparison of Ely Skarns with Broadway Skarns Both are similar systems with unusually well developed jasperoid. Both are controlled by fold-related faulting in Paleozoic limestones, intruded by Cretaceous plutons. Jasperoid is better correlated with gold at Broadway. In both, jasperoid is associated with alteration of Cu-bearing minerals and deposition of chalcocite and native Cu. Jasperoid formed by low-t supergene oxidation at Ely but by higher-t hypogene oxidation at Broadway - self-heating oxidation of sulfides (Sotendahl and Gammons, 2012). Conclusion: Broadway fluids had more sulfur than at Ely, reflecting a more sulfide-rich source. The oxidation of sulfides heated and strongly acidified hydrothermal fluids. After Maher, D.J.,

30 Property Geology Located on southern flank of Cretaceous Rader Creek pluton. Pluton intrudes Mississippian Madison Limestone carbonate sequence. Thrust faulting has brought Precambrian metasediments over the younger rocks, masking the favourable geology. Regional and local faulting appear to be key to mineralization. Auriferous jasper, Cu-Au skarn and deeper porphyry potential. Madison Mine 30

31 Madison Project: Surface Drilling Target Zone as of June 21,

32 Cross Section 9 32

33 Cross Section 10 33

34 Contributing Consultants Database, geological modeling and mapping Underground rehab and Phase I underground drilling Phase I and II surface core drilling Peter E. Walcott & Associates Limited Robert Middleton P.Geo. Phase I and II deep IP, EM and Mise-a-la-Masse geophysical surveys Geophysics advisory Core and ground sample analysis Chris Gammon, PhD, advisory and study 34