COPPER KING GOLD COPPER PORPHYRY LARAMIE COUNTY, WYOMING Robert W. Schafer, PG 2693 State of Wyoming 15 April 2016 1
HISTORY 1881-1910 Discovery, development of Copper King underground workings. Production, 287 tonnes, 27 oz Au, 483 oz Ag, 25,782 lbs Cu 1938 ASARCO 5 core holes, 427m 1952-54 The Copper King 6 core holes, 802m Mining Co. 1970 ASARCO 8 core holes, 874 m Scintrex IP, aeromag 1972 Henrietta Mines 11 holes; 4 core, 5 rotary 2 rotary / core,1148 m; McPhar IP 1973 Henrietta 7 rotary holes, 482 m, 6 core holes, 666m Core hole H-1: 2.3 gpt Au. 0.506% Cu / 130 m 1987 Caledonia Mines 25 rotary percussion holes, 3,042m 1993-94 Compass Minerals 21 RC holes, 5 core holes, 2,890m aeromag survey 1997 M o u n t a i n L a k e Resources 8 RC holes, 1,444m, Mag, VLF-EM, metallurgy. 2006-08 Saratoga Resources 35 core holes, 7,762m Total Drilling 120 holes, 18,105 m 2012 Saratoga acquired by Strathmore; 2013 2015 Strathmore acquired by Energy Fuels Laidlaw Ltd. acquires Copper King from Energy Fuels 2
CONCLUSION Copper King is an underexplored, undeveloped gold-copper porphyry with attractive economic potential located on State of Wyoming lands RECOMMENDATIONS Continue exploration, deposit delineation, resource expansion, environmental studies, metallurgical test work and mine plan development to advance the project to a decision point Invest the time, effort and expense to develop effective community and government relations programs in order to minimize future social challenges 3
LOCATION 4
LOCATION COPPER KING 32 km CHEYENNE 5
LOCATION and INFRASTRUCTURE COPPER KING 5 km to Interstate Hwy and Railway GRANITE CANYON QUARRY UNION PACIFIC RAILWAY 6
WYOMING STATE LEASES and DEPOSIT OUTLINE #0-04058 : 160 Ac NE ¼ Sec 25 and 320 Ac So ½, Sec 25 # 0-40828 : 640 Ac, all Sec 36 Copper King Deposit Ferguson Ranch access easement Tenure consists of 2 state leases, total area 1120 acres. 7
GEOLOGY and MINERALIZATION Copper King is a disseminated and stockwork gold-copper deposit in Proterozoic intrusive rock located on the east flank of the Laramie Range Mineralization occurs in granodiorite, quartz monzonite and thin mafic dikes. Alteration includes a central zone of silicification, grading outward to a narrow potassic zone, surrounded by propylitic alteration. A central core of higher-grade vein - stockwork hosted mineralization is surrounded by lower-grade disseminated mineralization. Surface mineralization includes disseminated sulfides (mainly chalcopyrite), native copper and stockwork-hosted malachite and chrysocolla. Deeper mineralization includes chalcopyrite, pyrite, minor bornite, primary chalcocite, pyrrhotite, and (supergene?)native copper. Gold occurs as free gold. 8
RAMBLER COMSTOCK LOUISE COPPER KING REGIONAL GEOLOGY and PROSPECTS 9
DEPOSIT AREA GEOLOGY u Inferred trace of Copper King fault, east side down d From Mine Development Associates 43-101 Report, August 2012 10
POTASSIC ALTERATION IN GRANODIORITE 11
STOCKWORK VEINING 12
DRILL HOLES and DEPOSIT OUTLINE 13
SELECTED DRILL INTERVALS Hole m Au gpt Cu % CuEq % A 1 152.4 1.95 0.38 1.68 A 2 91.44 2.71 0.51 2.32 C 7 141.43 1.78 0.37 1.69 CCK 1 110 4.21 0.58 3.18 CCK 5 108.2 1.17 0.35 1.13 CCCK 10 120.4 1.25 0.27 1.103 CCCK 26 60.96 1.39 0.27 1.196 14
DEPOSIT OUTLINE and 1970 IP SURVEY IP SURVEYLINE, McPhar, 1970 FREQUENCY EFFECT (chargeability) ANOMALY (definite, probable) 15
UPSIDE POTENTIAL Review of drill hole data suggests that deposit remains open to depth; Potential for a second mineralized zone in drill holes at SE edge of drill pattern. Theoretical downdropped Eastern portion of deposit remains unexplored, should have greater depth extent, (less eroded) Magnetic anomaly 4500 SE of Copper King Other nearby underexplored Cu Au occurrences; Louise, Rambler, and especially the Comstock. 16
REGIONAL PROSPECTS and POTENTIAL COMSTOCK RAMBLER COPPER KING MAGNETIC HIGH LOUISE 5 km From report by W. D. Hausel, Nov. 2012 17
RESOURCES COPPER KING RESOURCES Category Tonnes Cu % Au gpt Au oz Measured + 54,210,000 0.187 0.53 926,000 Indicated Inferred 14,170,000 0.20 0.38 174,000 Total 68,380,000 0.19 0.499 1,100,000 Cutoff AuEq, 0.51gpt From 43-101 by MDA, August 2012 18
METALLURGY SGS report, 2009, from testing of composite of 2009 drill core: Dominant sulphide is chalcopyrite; chalcopyrite:pyrite = 2:1 Bond Work Index 13 15 Fine grind, P 80 10-20µm might be optimal Primary grind, rougher floatation, 3 stage cleaner floatation Concentrate grade: 26% Cu, 89 gpt Au Cu recovery 77% Au recovery 68% 19
COMPARABLE DEPOSIT TROILUS Gold-Copper Mine Gold-copper porphyry located 125 km N of Chibougamau, Quebec Mined by Inmet (now First Quantum) from 1997 to 2010 Produced 2 M oz Au, + 50,000 tonnes Cu, from approximately 66 million tonnes Average grade 1.09 gpt Au, 0.119 %Cu..Copper King has 50% lower Au, 50% higher Cu Remaining resources downplunge (root zone?) below the open pit: Meas. + Ind. 29.4 million tonnes @ 0.16% Cu, 1.48 gpt Au Recently purchased by Copper One Inc. $4.1 million letter of credit to Quebec government re: closure obligations; 2.5% NSR to First Quantum 20
SUGGESTED WORK PROGRAM Year 1 Year 2 IP and Magnetic surveys, 30 line miles Re-log archived drill core Geological mapping Examination of numerous Cu Au occurrences in Silver Crown district Core drilling, 50,000 feet, for met testing, deposit expansion $125,000 $75,000 $2,000,000 Year 3 PEA $750,000 21
ROYALTY and REGULATIONS There is provision for the State of Wyoming to charge a Royalty on production, although this may be reduced by negotiation: FOB Mine Value per Ton Royalty $00.00 to $50.00 5% $50.01 to $100.00 7% $100.01 to $150.00 9% $150.01 and up 10% It is understood that Mine Value refers to value of concentrate being shipped, after deduction of production costs. Also, the State may require that: all waste material mined and not removed from the premises shall, as mining progresses, be used to fill the pits and leveled unless consent of the lessor is otherwise obtained, so that at the expiration, surrender, or termination of the lease, the land will reasonably approximate its original configuration and with a minimum of permanent damage to the surface 22
NEARBY OPERATIONS Martin Marietta operates a major quarry at Granite Canyon, 4 km south of Copper King, producing construction aggregate and railway ballast from Proterozoic granite. 23
q q q q q Opportunities Increase deposit size and definition through mine area exploration and drilling Test other targets in region, especially east of the Copper King fault and the magnetic anomaly to the southeast Improve metallurgical recovery through processing optimization test work Negotiate lower royalties to State of Wyoming Access and trucking of concentrate may be possible via rail and I-80 to south q q q q Concerns Lies near headwaters and reservoir of Cheyenne water supply Nearby ranchettes, the Curt Gowdie State Park and NGO interests may challenge permitting Average gold grade and Cutoff grade are very close Some oxide mineralization may be challenged for recovery 24