ASM Presentation May 29, 2018

Transcription

1 ASM Presentation May 29, 2018 BIRCH LAKE, CANADA Acquiring and Exploring Camp Sized Properties on World Class Gold Belts PX : TSX-V GHANA, WEST AFRICA

2 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. The words plans, expects, is expected, budget, projects, scheduled, estimates forecasts, intends, anticipates, or believes or variations (including negative variations) of such words and phrases, or statements that certain actions, events, or results may, could, would, might, or will occur are all forward-looking statements. Forward-looking statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such statements are made. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date indicated on the title page. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements in this document. The Company does not undertake to update any forward-looking statements in this document except as required by applicable securities laws. 2

3 Experience and Track Record We have LEARNED through experience the POWER of the cyclical nature of GOLD which played a huge rule in the SUCCESS we were able to generate for our shareholders of up to 100X INVESTMENT. Not only did we RE- ENVISION the Detour Lake Deposit, we CAPITALIZED on the cycle... PATIENCE, PERSISTENCE, and INNOVATIVE THINKING Upside Potential Reenvisioned the Detour Lake Deposit Cyclical Nature of Gold Sector Strategic Investments and Partnerships Large Land Packages Canada & Ghana 3

4 Strategic Initiatives Project Generation Non core assets to generate revenue and add value Some acquisitions would qualify Risk Mitigation Projects with geographic diversity - low political risk Canada and Ghana Market Timing Capitalize on Opportunity Valuable assets ability to add new assets 4

5 2017/18 Accomplishments Foundation for Growth Raised $1.8 million Strengthened team (Board and Asty) Expanded European investor base Generated funds through project generation (Pacton) Roscan JV of Dormaa Successful CSR program at Dormaa Exploration begins (Manfo & Dormaa) Significant addition to Birch Lake property Acquired Preferential access to the man portable diamond rig 5

6 Diversified Talent for Success Directors Ingrid Hibbard, President & CEO David Mosher Carl Nurmi David Paxton Ian Shaw Kevin Thomson Ms. Hibbard has spent her life working in the mining industry and played a key role throughout the history of the Detour Lake mine property. Pelangio regenerated the previously abandoned Detour Lake Deposit that became Detour Gold Corporation, one of Canada s largest gold producers. Ms. Hibbard holds a Bachelor of Arts degree and an LL.B from the University of Western Ontario. Mr. Mosher is a geologist and mining executive with more than 35 years-experience in the United States, Canada, Australia, Russia, Africa and Asia. Over the past decade he has been active in the restructuring, financing and management of a number of mineral projects and mining companies, both private and public. David is currently a director of five public mineral exploration companies. Mr. Nurmi is a retired BCom graduate of Queens University with a CPA, CA designation, and past Chairman and President of Clarke Phillips Supply Co. Ltd., from 1986 to 2012 and former director of Mines/PDX from July 1997 to March Mr. Paxton is a mining engineer and has over 30 years of combined experience in the mining industry and capital markets. David has recently held positions as Chief Executive Officer of Vatukoula Gold Mines, and Chief Executive Officer of Sumin Resources. Mr. Paxton currently serves on the boards of two companies in the natural resource sector and has extensive exposure to financial markets. Mr. Shaw is a BCom graduate of University of Toronto, a CPA, CA and Managing Director of Shaw & Associates, providing financial management services to a number of mineral resource companies. He is currently the Chief Financial Officer of Olivut Resources Ltd. and continues to hold positions as director of numerous public companies in the mining sector. Mr. Thomson is a senior mining professional with 29 years' experience, including international technical, corporate and project management experience in West Africa and Canada. His experience ranges from project generation and grass-roots exploration to resource development, project assessment and due diligence. Kevin holds an Hons. BSc. Geology & Physical Geography from McMaster University. 6

7 Strong Management Team Experience and Expertise Warren Bates Sam Torkornoo Paul Rokeby Advisory Committee Philip Olson Gord Slade Senior Vice President, Exploration Mr. Bates joined Pelangio Mines in June Warren is responsible for all of Pelangio's exploration activities in Canada and Ghana, including new project generation. He has over 25 years of experience in the mining and exploration industry across four continents and has previously held senior positions at Granges, Vista Gold and St. Andrew Goldfields. Vice President Exploration, Africa Sam Torkornoo has 22 years of professional experience as a geologist and project manager for a number of multinational exploration companies. Sam has a BSc. in Geological Engineering from Kwame Nkrumah University of Science and Technology in Kumasi, Ghana, and an MBA in International Management of Resources and Environment from Technische Universität Bergakademie Freiberg, Germany. Sam is a member of the Association of Professional Geoscientists of Ontario, the Australasian Institute of Mining and Metallurgy, the Ghana Institute of Geoscientists, and the Society of Economic Geologists. Chief Financial Officer Mr. Rokeby, is a CA and partner of MNP, Chartered Accountants of Timmins, Ontario. Paul was formerly auditor and now, controller of Pelangio Mines. He is a member of the Institute of Chartered Accountants of Ontario (1984), the Canadian Institute of Chartered Accountants and the Canadian Tax Foundation. Pelangio also works with two advisors having expertise in exploration geology, finance, engineering, and public company directorships. 7

8 Properties Canada Birch Lake - 25 Sq Km 100% interest, Red Lake Mining District Combination of Pelangio s Birch Lake Property and recently acquired Keigat Lake Claims Historical high grade intercepts, including g/t Au over 9.85m, including g/t Au over 2.95m Adjacent to First Mining s Springpole Gold Project Hemlo Hosts the High Grade Island Deformation zone, a 70m wide, steeply dipping deformation corridor Four additional historical gold occurrences on the Keigat Lake Area Claims 8

9 Renewed Interest in Birch Lake Improved logistics due to success & activity at Springpole Deposit The expanded Birch Lake Project offers a number of reasons for Pelangio to renew its interest Additional target areas beyond High Grade Island +10 years for no holding cost 9

10 Canadian Property - Red Lake District Birch Lake & Adjoining Royalty Interest Keigat Lake Area Claims are located in the Red Lake Mining Division of Ontario, and surround Pelangio s Birch Lake Project which includes High Grade Island and Keigat Island Adjacent to First Mining Gold Corp. s Springpole Deposit, with an indicated resource of Mt at 1.04 g/t Au, and 5.4 g/t Ag, containing 4.67 Moz Au and Moz Ag Source: First Mining Gold Corp Springpole Gold Project PEA Technical Report June 6, 2017 Disclaimer: The mineralization hosted on the Springpole Property is not necessarily indicative of the mineralization on the Company s Birch Lake or Expanded Birch Lake Property 10

11 Proximity of Birch Lake to Spring Pole and Goldcorp Red Lake Deposits SPRINGPOLE DEPOSIT FIRST MINING RED LAKE DEPOSITS GOLDCORP A compelling story with the recent acquisition of strategically located claims surrounding the Birch Lake Property 11

12 Birch Lake Agreements with 5SD Capital Terms of the Option Agreement on the Keigat Lake Claims In order to acquire a 100% interest in the Keigat Lake Area Claims, Pelangio must issue a total of four million common shares to 5SD in four tranches as follows: Issue 1,000,000 shares Issue 1,000,000 shares Issue 1,000,000 shares Issue 1,000,000 shares On the date the agreement is accepted by the TSXV On or before the first anniversary of the acceptance date On or before the second anniversary of the acceptance date On or before the third anniversary of the acceptance date Pelangio will be the operator on the project If Pelangio acquires the 100% interest in the Keigat Lake Area Claims, the Distribution and Royalty Agreement with 5SD will be terminated Terms of NSR Agreement with 5SD Capital Pelangio acquired a 1.5% NSR Royalty in 10 claims (approximately 1856 hectares) Pelangio has transferred $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 12

13 Properties - Ghana 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 multiple parallel structures 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 Dormaa - 86 sq km Wamfie not being pursued currently 13

14 Manfo 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 + target generation of multiple parallel structures 14

15 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, Ahafo South, Bibiani Chirano 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 sedimentary-intrusive terrain 15

16 Manfo Three Resource Areas 9 km geochemical trend, multiple structures 3 areas at initial resource stage: Pokukrom East and West, Nfante West 7 near surface discoveries since August 2010 Received maiden resource estimate from SRK of 195,000 oz Indicated and 298,000 oz Inferred in 2013 Improved exploration model for the project 16

17 Manfo Diamond Drill Program Reconnaissance work on geochemical anomalies Diamond drilling focused on near mineralization at Pokukrom East & Nkansu 17

18 Manfo The Future Program The Main Focus: The diamond drill program will be completed on PRIORITY TARGET 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 previous 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 Holes completed to date: Five holes of diamond drilling Totaling 890 metres Testing three targets Results pending for two holes The Program Consists of: 15 to 17 holes of diamond drilling totalling ~ 3,000 metres testing 7 target areas Emphasis on stepping out from known mineralization at 50 or 100 meter intervals 18

19 Manfo 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 downdip, down-plunge and to the south, will follow up on holes: SPDD SPDD-219 SPDD

20 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 20

21 Dormaa Property Exploration Adding Value North of Sefwi belt 86 sq km at Dormaa Next sedimentary belt to north Geochemical targets developed 2012 Infill soil geochemical program 1,250m air core drill program ongoing to test geochemical anomalies DORMAA PROPERTY OPTIONED TO ROSCAN MINERALS CORPORATION 21

22 Dormaa Exploration The geochemical anomalies are at least as good as what we saw at Manfo Several anomalies greater than 1 km in length On closer spaced soil program, two significant anomalies 2.5 km and 3.2 km long Where 22

23 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 on November 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,

24 Obuasi Location in relation to the Giant Obuasi Mine 100% interest (subject to 10% gov t interest) 284 sq km, beside the largest vein hosted gold deposit in the world (Obuasi Mine) Over 30 M oz produced since

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 Obuasi Pits Scree and rock chip anomaly at Tikal-Bura 25

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

27 The Time is Now The Cycle Has Turned Last cycle we re-envisioned and monetized Detour Gold Now we have four camp-size projects Success Discovery Manfo: 7 mineralized areas Manfo:Develop ed resource on three of them New Obuasi discovery Exploration programs designed Two drill rigs commissioned and ready to go Expanded Birch Lake Property Positioning Advance Manfo: follow up resource area and multiple parallel structures Obuasi: follow up anomaly around discovery Dormaa: follow up soil anomalies 27

28 Planned Exploration Drill Programs Ready With More Than 50 Drill Ready Targets Manfo Target existing mineralized structures and multiple parallel structures Multi-stage RC, AC and diamond drilling Obuasi Target substantial anomaly with visible gold in core RC/AC drilling - 8 drill ready targets over 1500 m Dormaa Target multiple geochemical anomalies 3,000 m air core program funded by Roscan 28

29 Market Facts, PX:TSX-V Capitalization in May 25, 2018 Trading PX: TSX-V; PGXPF: May 25, 2018, all values in Canadian $ Shares Outstanding M Market Cap $6.8 M Warrants 37.6 Fully Diluted M Options 7.8 M 52W H/L $0.06/0.025 Current Price Average Daily Volume (3 month) $ ,000 Source: TMX & Yahoo Finance 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 Ontario & Ghana 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 30

31 INSERT IMAGE HERE CONTACT Ingrid Hibbard, President & CEO Pelangio Exploration Inc. Tel: