Embed Size (px)
Citation preview
Summer 2020
CorporatePresentation
Forward Looking Statements
This presentation contains certain “forward looking statements.” All statements, other thanstatements of historical fact, that address activities, events or developments that 55 NorthMining Inc. (“55 North”) believes, expects or anticipates will or may occur in the future areforward-looking statements. Forward-looking statements are often, but not always, identifiedby the use of the words such as “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and“intend” and statements that an event or result “may,” “will,” “can,” “should,” “could,” or “might”occur or be achieved and other similar expressions.
These forward-looking statements reflect the current internal projections, expectations orbeliefs of 55 North based on information currently available to 55 North. Forward-lookingstatements are subject to a number of risks and uncertainties that may cause the actual resultsof 55 North to differ materially from those discussed in the forward-looking statements, andeven if such actual results are realized or substantially realized, there can be no assurancethat they will have the expected consequences to, or effects on 55 North.
55 North expressly disclaims any obligation to update or revise any such forward-lookingstatements.
2
• Last Hope Project:- Lynn Lake Manitoba; NI 43-101 resource of ~176,500 oz Au at 7.3 g/t
• Management: Extensive experience in Manitoba- Patricia Mining, Carlisle Goldfields Limited and Satori Resources
• Location: - Located in one of the Top 20 jurisdictions in the world1
• Infrastructure:- Lynn Lake, Manitoba is a developed town with strong mining history;
Alamos currently advancing future mining operations nearby
• Upside: - Last Hope gold project resource can be increased, with the zone open in
most directions; Look alike zone to the east identified by IP and Geochem Survey
Investment Highlights
12019 Fraser institute mining survey
3
Last Hope Gold Project - Lynn Lake, Manitoba
4
• The Last Hope property is directly south of Alamos Gold’s Lynn Lake Gold Project, which comprises what was formerly known as the MacLellan, Farley Lake, Burnt Timber and Linkwood deposits under Carlisle Goldfields.
• Alamos published a positive Feasibility Study on the Lynn Lake Gold Project in December 2017. This report forecasts a 7,000 tpd operation with annual average gold production of ~170,000 oz Au per year over the initial 11 year LOM.
• Alamos had a 2019 capital budget for Lynn Lake of $18 million, comprised of $14 million for development activities and $4 million for exploration.
Lynn Lake, Manitoba: An Emerging Gold Camp
Source: Alamos Gold Press Releases 2017-2018
5
Last Hope Gold Project - Resource Estimate
SENSITIVITY TO MINERAL RESOURCE ESTIMATE OF THE LAST HOPE DEPOSIT
Category Cut-Off Au g/t Tonnes Au g/t Au oz
Indicated
5.0 85,422 9.07 24,9224.5 98,884 8.48 26,9604.0 113,377 7.93 28,9243.5 131,547 7.36 31,1083.0 154,060 6.75 33,4582.8 164,300 6.51 34,4092.6 172,029 6.34 35,0772.4 180,717 6.16 35,7802.2 190,608 5.96 36,5102.0 201,445 5.75 37,242
Inferred
5.0 402,657 7.96 103,0554.5 552,402 7.10 126,0144.0 711,350 6.45 147,4773.5 801,836 6.14 158,3613.0 872,977 5.91 165,8122.8 914,920 5.77 169,6942.6 971,184 5.59 174,5962.4 1,002,087 5.50 177,0812.2 1,034,244 5.40 179,4672.0 1,067,488 5.29 181,712
6
Lynn Lake Gold Project Feasibility
Category
Alamos GoldFeasibility Study
(Dec. 2017)
Mine Life Years 10.4Average Annual Gold Production (Years 1 to 6)
Oz Au 170,000
Average Annual Gold Production (Years 1 to 10)
Oz Au 143,000
Average Mill Throughput tpd 7,000Average Gold Grade g/t 1.89Average Silver Grade g/t 2.99Total Cash Cost $US/oz $645Mine- Site All-in Sustaining Cost $US/oz $745Pre-production Capex US$m $338Total Capex US$/m $486After-Tax IRR % 12.5After-Tax NPV (5%) US$m $123.4
Lynn Lake Gold Camp withLast Hope
(Conceptual)*
Scenario 1 – 750 tpd mining at Last HopeMine Life Years 11Average Annual Gold Production (years 1 to 6)
Oz Au 224,500
Average Annual Gold Production (Years 1 to 10)
Oz Au 179,600
Average Mill Throughput tpd 7,000Total Capex US$m $510After-Tax IRR % 19.6%After-Tax NPV (5%) US$m $203.0
7
Last Hope Gold Project - Lynn Lake, Manitoba
8
Last Hope Gold Project - Long Section
9
Last Hope Gold Project - Regional Soil Geochem
10
Last Hope Gold Project - Geochem + IP
11
Last Hope Gold Project - Geochem + IP (recent results)
12
Last Hope Gold Project - 3D
Open
OpenOpen
13
Last Hope Gold Project - Resource Block Model
14
Last Hope Gold Project - Option Payments
All Figures in $CAD
Milestone Option Payments Exploration Required
Execution of Option Agreement $65,000 -
First Anniversary $65,000 $250,000
Second Anniversary $65,000 $250,000
Third Anniversary $65,000 $250,000
Fourth Anniversary $100,000 $250,000
Fifth Anniversary $3,000,000 $000,000
Total $3,360,000 $1,000,000
Note: Exploration expenditures have already exceeded $1,000,000
15
• Work program of 30 drill holes, totaling 8,500 meters, to investigate the limits of mineralization and to expand and upgrade resources from inferred to indicated, as well as explore zones to the East
• Last Hope is looking to expand on known mineralized areas on the property. Several zones remain open to the northwest and southeast.
• The Last Hope Deposit lies in the highly altered, quartz-pyrite rich footwall of a major fault.
• The gold mineralization occurs in northwest striking quartz veins. Mineralization appears to be localized on a major fault.
• Both IP Geophysics and soil Geochem indicate strike extensions north and south of currently known zone as well as 2 parallel zones approximately 800 meters to the east. – Drilling program to be outlined H2 2020
Last Hope Gold Project - Next Steps
16
• Bruce Reid - President and CEO– Geologist (University of Toronto)
– Former President and CEO of Carlisle Goldfields Limited : Sold to Alamos Gold for 209% premium to market.
– Founder and former CEO of US Silver: Put the Galena mine back into production in 2005.
– Former Executive Director of Patricia Mining, Founder of Western Goldfields, Founder of Bunker Hill Mining.
– Analyst and Investment Banker for over 18 years with firms such as Nesbitt Thomson, Loewen Ondaatje McCutcheon, and Yorkton Securities.
• Julio DiGirolamo - Chief Financial Officer – CPA, CA
– Former CFO of Carlisle Goldfields Limited.
– Former Vice President and Corporate Secretary at Greenstone Resources.
• Peter Karelse - VP Exploration – P. Geo
– Former VP Exploration of Carlisle Goldfields Limited.
– Former Exploration Manager focused on development of gold-silver and base metals deposits
Management
17
Manitoba
• Lowest cost industrial power in North America (~$0.03/KWh)
• Educated workforce in mining
• Ranked in the top 20 mining jurisdictions in the world in the 2019 Fraser Institute Mining Survey
• Pro - Mining Government; highly motivated to re-establish mining operations at Lynn Lake
• Constant Provincial Tax rate for over 40 years (18%)
• Well developed government-supported infrastructure
• Airport, rail and, paved highways
18
• Historical Mining town; Alamos Gold developing the Lynn Lake Gold Camp – Mill to be built in the area
• Highly incentivized to generate new exploration targets and increase employment in the area
• Commercial Airport- 5,000 ft. all season paved runway
• Good paved roads connect the Town to the south
• Town of Lynn Lake - Amenities
• Modern Hospital, restaurants, schools, hotels, paved roads, internet
• Good Relationship with the Marcel Colomb First Nation and Town of Lynn Lake
Lynn Lake, Manitoba
19
Share Structure
20
Shares Outstanding 78,326,193Options 296,150
Warrants 24,517,950Shares Fully Diluted 103,140,293
Share Structure
Bruce Reid, President and CEO
Julio DiGirolamo, CFO
Dan Hrushewsky, Corporate Development
21
