Developing the Best Gold Project Portfolio in Ghana. Successfully Exploring Camp-Sized Properties on World Class Gold Belts

Transcription

1 Developing the Best Gold Project Portfolio in Ghana Successfully Exploring Camp-Sized Properties on World Class Gold Belts

2 Overview The 5 W s of Pelangio Who: is Pelangio Exploration? What: are Pelangio s strengths, goals, aspirations? : are Pelangio s Projects located? When: are Pelangio s properties ready for advancement? Why: invest in Pelangio? 2

3 The Talent for Success Management and Directors Ingrid Hibbard Paul Rokeby Warren Bates SamTorkornoo Carl Nurmi David Mosher David Paxton Ian Shaw Kevin Thomson Philip Olson Gord Slade President, Chief Executive Officer, Director Chief Financial Officer Senior Vice President, Exploration Vice President, Africa Chairman Director Director Director Director Advisory Committee Advisory Committee Who 3

4 Market Facts, PX:TSX-V Capitalization in April 13, 2018 Trading PX: TSX-V; PGXPF: April 17, 2018, all values in Canadian $ Market Cap $16 M Warrants Shares Outstanding M Options 52W H/L $0.06/ Fully Diluted 319 M 8.3 M Current Price Average Volume (3 month) $ ,500 Source: TMX & Yahoo Finance Who 4

5 A Track Record of Discovery & Value Favourably positioned for discovery, development and M&A Upside Potential Re-envisioned the Detour Lake Deposit Cyclical Nature of Gold Sector Pelangio shareholders have realized significant gains up to 10,000% Focused on Ghana West Africa s largest gold producer Prudent cash management and strategically amassing Ghana s best gold exploration portfolio Strategic Investments/ Partnerships Large Land Packages Control more than 500 sq km of some of the world s most prospective gold trends What 5

6 Properties Manfo Sq Km Maiden resource of 195,000 oz Indicated + 298,000 oz Inferred on 3 of 7 mineralized areas along 9 km trend Detailed interpretation for drill targets on newly identified 9 km major structure Obuasi Sq Km High-grade intercepts: 24.5 g/t Au over 1 m, g/t Au over 2 m Evidence of Obuasi Style mineralization Technical review of anomaly in preparation for drilling Akroma Sq Km Large geochemical anomalies Multiple soil anomalies > 1km in length 6

7 Comparisons - Timmins : Manfo : Obuasi Timmins Timmins compare land package size and occurrence of mines along respective faults and belts Obuasi - Under-explored property (264 sq km) on major structure holes drilled (with 2 high grade intercepts) Manfo - Under-explored property (100 sq km) on major structure holes drilled - 7 discoveries and a maiden Resource - all near surface Obuasi Manfo 7

8 Ghana - Rich in Gold Endowment Good for Gold, Good for Business Top 10 gold producing countries by total ounces and grade Ghana ranks in the top 10 largest gold producers: - 8 th by total ounces - 6 th by grade Compared to the countries on this list, Ghana is similar to the size of Southern Ontario or the state of Michigan 8

9 Manfo The Next Company Maker Recently identified unexplored major structure across 9 km of the Property 100 sq km on Ghana s prodigious Sefwi Greenstone Belt: 14 km from Newmont s flagship Ahafo mine with similar alteration style to Ahafo and 50 km from Kinross Chirano mine Discovery of 7 mineralized areas along 9 km geochemical trend maiden resource on 3 zones: Pokukrom East, Pokukrom West and Nfante West Resource estimate provides a solid base and presents a model for future exploration Room to expand around the existing 3 resource areas + additional 4 discovery areas + over 10 additional target areas currently outlined + target generation over 9 km of the currently explored structure 9

10 Manfo Sefwi Belt: 33 Gold Deposits (22.8 Million Oz) Gold deposits are associated with north to northeast trending major faults that bound each terrain 62 known gold occurrences in the Sefwi Belt 4 main Sefwi gold camps: Ahafo North (3.5M oz), Ahafo South (11.8 M oz), Bibiani (4.0 M oz Chirano (3.5 M oz) The Sefwi Belt is a zone of Proterozoic aged volcanic-sediment rocks, between two sedimentary dominated regions Major faults separate volcanic sediment terrain from dominantly sedimentaryintrusive terrain 10

11 Manfo Largest Sefwi Deposits Near Belt-Bounding Structures Largest deposits are located directly on or within 1 km of belt-bounding faults (Subika, Kenyase, Apensu, Awonsu, Yamfo, Akwaaba and Bibiani Deposits) 7 major deposits account for 2/3 of all mineable ounces in the belt Major faults are well mapped with regional magnetic maps Larger deposits show higher grades approximating 2 g/t Smaller deposits located from 1 to 3 km away from belt-bounding structures To find larger deposits look within 1 km of major faults! 11

12 Manfo Three Resource Areas 9 km geochemical trend, multiple structures 3 areas at initial resource stage: Pokukrom East and West, Nfante West 9 near surface discoveries since August 2010 (3 at Nkansu) Received maiden resource estimate from SRK of 195,000 oz Indicated and 298,000 oz Inferred in 2013 Improved exploration model for the project Newly identified 9 km unexplored major structural zone to the east of current area of exploration 12

13 Manfo $2 Million Multi -phase Drill Program Planned Phase 1 underway 13

14 Manfo 2018 Diamond Drill Program The Main Focus: The initial diamond drill program will be completed on PRIORITY TARGETS areas at Pokukrom East and Nkansu Pokukrom East (host of the maiden Resource Estimate) - the priority targets for diamond drilling lie in the middle and directly to the north and south of Pokukrom East follow up on two drill sections, one of which intersected 35m at 1.13 g/t Au Nkansu follow up on previously drilling, including holes, SGRC-322 which intersected 49.5m at 1.18 g/t Au and SGRC-332 which intersected 42m at 1.00 g/t Au See Pelangio news release February 5, 2018 for full details of drilling program The Program Consists of: 18 to 20 holes of diamond drilling totalling ~ 4,000 metres testing 8 target areas Emphasis on stepping out from known mineralization at 50 or 100 meter intervals 14

15 Manfo 2018 Diamond Drill Program Diamond drilling focused on near mineralization at Pokukrom East & Nkansu Reconnaissance work on Parallel structures 15

16 Manfo 2018 Targets at Pokukrom East Priority targets for diamond drilling lie in the middle and directly to the north and south of Pokukrom East The target areas at the north end of Pokukrom East will follow up on four holes: SPDD SPDD-128 SPDD SPDD-089 The target in the middle of Pokukrom East will include follow up on hole: SPDD-166 The target areas to the south of Pokukrom East, which is open down-dip, down-plunge and to the south, will follow up on holes: SPDD SPDD-219 SPDD

17 Manfo Pokukrom Pit Shells and Block Model Looking East +1.0 g/t block model shown Mineralization below pit not tabulated in this estimate 175 m depth is pit bottom Metallurgical testing - gold recovery 86% from sulphide and 94% from oxide 17

18 18

19 Manfo Nkansu Area 2018 Drill Program 2018 drilling will focus on meter step outs from open mineralization at Nkansu 2014 drilling established continuity along 250 m to 125 m depth in southern target Nkansu discovery made with little geochemical response due to lateritic cover Some higher grades showing in SGRC-327 on north west end 3 zones developing at Nkansu 19

20 Manfo Nkansu Long Section NKANSU long section showing previous drilling and 2018 Phase 1 diamond drilling Down-plunge drilling will follow up on two holes: SGRC-322 SGRC

21 21

22 Akroma Property Exploration Adding Value DORMAA PROPERTY OPTIONED TO ROSCAN MINERALS CORPORATION North of Sefwi belt 86 sq km at Dormaa Dormaa Next sedimentary belt to north Geochemical targets developed 2012 Infill soil geochem program Dormaa 3,000 m RC/RAB program planned to test geochemical anomalies 22

23 Akroma Exploration The geochemical anomalies are at least as good as what we saw at Manfo 10 anomalies greater than 1 km in length On closer spaced soil program, two significant anomalies 2.5 km and 3.2 km long 23

24 Akroma Dormaa Option Agreement Pelangio as Operator Roscan may earn an 50% interest in the Dormaa Property by funding an aggregate of $2,000,000 in exploration expenditures and paying an aggregate of $250,000 Funds to be used for expanded gold-in-soil geochemical surveys, prospecting, and approximately 3,000 metres of RC, AC or RAB drilling FUND PAY AMOUNT DUE DATE AMOUNT DUE DATE $150,000 by March 5, 2017 (received) $150,000 by May 4, 2017 (received) $10,000 onnovember 7, 2016 (paid) $700,000 by June 5, 2018, and $50,000 by June 5, 2018, and $1,000,000 by June 5, 2019 $200,000 by June 5,

25 Obuasi Regional Geology, Mines and Exploration Targets Next to largest vein-hosted deposit in world Hard rock targets along main structure, Tikal-Bura and at the Birimian contact in North Government Area (NGA) Strong gold arsenic anomalism at NGA area in Birimian argillites Scree and rock chip anomaly at Tikal-Bura Obuasi Pits 25

26 Obuasi North Government Target PG11-NGT g/t PG11-NGT g/t PG11-NGT g/t Substantial anomaly, coupled with visible gold in core, affirms that Obuasi style system is clearly present in North Government Area 8 RC and Air Core drill ready targets over 1500 m of anomalism to test 26

27 Canadian Properties - Red Lake District Birch Lake & Adjoining Royalty Interest Agreement with 5SD Capital Pelangio acquired a 1.5% NSR Royalty in 10 claims (approximately 1856 hectares) Pelangio has transfered $564,000 of assessment work credits to Pelangio will retain sufficient assessment work credits to maintain the Birch Lake property for over 10 years 5SD has the right to purchase 1/3 of the NRS Royalty at any time for $1,000,000 27

28 The Time is Now The Cycle Has Turned Last cycle we reenvisioned and monetized Detour Gold Now we have three camp-size projects Success Discovery Newly identified 9 km major structure 7 mineralized areas at Manfo Developed resource Exploration on three of them programs designed Completed resource Two drill rigs study commissioned and New Obuasi discovery ready to go Positioning Advance Follow up: on resource area and additional zones 9 km major structure When 28

29 Planned Exploration Drill Programs Ready With More Than 50 Drill Ready Targets Manfo Obuasi Akroma Target existing mineralized structures and belt bounding structures Target substantial anomaly with visible gold in core Target multiple geochemical anomalies 2 stage RC, AC and diamond drilling RC/AC drilling - 8 drill ready targets over 1500 m 3,000 m RC/RAB program funded by Roscan When 29

30 Why Invest in Pelangio? Exceptional leverage to rising gold price Positioned for positive cycle return Camp size land positions and stream of projects at various stages in Ghana world class mining jurisdiction Manfo - emerging significant project in an area of giant deposits potential for additional discoveries Successful team seven discoveries - maiden resource at Manfo, and re-envisioned the Detour Lake Deposit Why 30

31 Disclaimer Cautionary Note Regarding Mineral Resource Estimates Investors should not assume that any of the indicated or inferred resource disclosed herein will ever be upgraded to a higher category of mineral resource or to mineral reserves and that any or all of the indicated or inferred mineral resource exist or is or will be economically or legally feasible to mine. In addition, investors should not assume that any of the references herein to adjacent properties (based on public information) is necessarily indicative of the mineralization on the Manfo property or that further exploration on the Manfo property will prove to be successful. The disclosure herein uses mineral resource classification terms that comply with reporting standards in Canada and the disclosure of mineral resource estimates are made in accordance with National Instrument Standards of Disclosure for Mineral Projects. NI is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects that are considered material to the issuer. The exploration programs in Ghana are overseen by Warren Bates, P. Geo.(APGO #0211), a Qualified Person as defined by the Canadian Securities Administrators National Instrument Mr. Bates has verified and approved the data disclosed in this presentation. All resource estimates contained herein are based on the definitions adopted by CIM and recognized under NI These standards differ significantly from the mineral reserve disclosure requirements of the U.S. Securities and Exchange Commission set out in Industry Guide 7. Consequently, resource information contained in this press release is not comparable to similar information that would generally be disclosed by U.S. companies in accordance with the rules of the SEC. The SEC s Industry Guide 7 does not recognize mineral resources and US. companies are generally not permitted to disclose mineral resources in documents they file with the SEC. Investors are specifically cautioned not to assume that any part or all of the mineral resources disclosed above will ever be converted into SEC defined mineral reserves. Further, inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. In accordance with Canadian rules estimates of inferred mineral resources generally cannot form the basis of an economic analysis. Forward Looking Statements Certain statements herein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statements or information appear in a number of places and can be identified by the use of words such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate or believes or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward-looking statements and information include statements regarding the mineral resource estimate, the timing of exploration programs and filing of technical reports and the Company s exploration plans and exploration results with respect to the Obuasi Property, including alluvial exploration and bulk sampling, and the Manfo Property. With respect to forward-looking statements and information contained herein, we have made numerous assumptions, including assumptions about gold price, cut-off grades, metallurgical recoveries, operating and other costs and technical assumptions used in the estimate. Such forward-looking statements and information are subject to risks, uncertainties and other factors which may cause the Company s actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Such risks include discrepancies between actual and estimated mineral resources, subjectivity of estimating mineral resources and the reliance on available data and assumptions and judgments used in the interpretation of such data, speculative and uncertain nature of gold exploration, exploration costs, capital requirements and the ability to obtain financing, volatility of global and local economic climate, share price volatility, estimate gold price volatility, changes in equity markets, political developments in Ghana, increases in costs, exchange rate fluctuations and other risks involved in the gold exploration industry. See the Company s annual information form and annual and quarterly financial statements and management s discussion and analysis for additional information on risks and uncertainties relating to the forward-looking statement and information. There can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond the control of the Company. Accordingly, readers should not assume that any of the indicated or inferred resource will ever be upgraded to a higher category or to mineral reserves and any or all exist or is economically or legally feasible to mine or place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update any forward-looking statements or information except as required by law. All forwardlooking statements and information herein are qualified by this cautionary statement. 31

32 CONTACT Ingrid Hibbard, President & CEO Pelangio Exploration Inc. Tel: