Murchison Minerals Ltd. Presentation

Murchison Minerals Ltd.
Advancing High‐Grade Base Metal Projects
Cautionary Statement
These statements, maps and models in this presentation are based on information currently available to the Company and the
Company provides no assurance that actual results will meet management's expectations. In certain cases, forward‐looking
information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will",
or "would". Forward‐looking information contained in this presentation is based on certain factors and assumptions regarding,
among other things, the estimation of mineral resources and mineral reserves, the realization of resource estimates and reserve
estimates, metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial
and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and
materials to continue to explore and develop the Murchison project in the short and long‐term, the progress of exploration and
development activities, the receipt of necessary regulatory approvals, the completion of the environmental assessment process,
and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters.
While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove
to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the 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 information. Such factors include risks inherent in the exploration and
development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined
including the possibility that mining operations may not commence at the Murchison project, risks relating to variations in
mineral resources and mineral reserves, grade or recovery rates resulting from current exploration and development activities,
risks relating to changes in metal prices and the worldwide demand for and supply of base and precious metals, risks related to
increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent
in the estimation of mineral resources and mineral reserves, access and supply risks, reliance on key personnel, operational risks
inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating
costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks,
including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks,
including the risk that the financing necessary to fund the exploration and development activities at the Murchison project may
not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, and
environmental risks. The Company does not undertake to update any forward‐looking information that may be made from time
to time by the Company or on its behalf, except in accordance with applicable securities laws.
Qualified Person
Graham Gill, P.Geo., Independent Consultant, is the Qualified Person as defined in NI43‐101 that reviewed and approved the technical information contained in this news release.
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Murchison Minerals Ltd.
Investment Highlights
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Focus Projects ‐ two high‐grade base metal deposits – Brabant‐McKenzie, HPM
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Located in favourable mining jurisdictions – Saskatchewan and Quebec
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Additional portfolio of gold properties in Ontario
Brabant‐McKenzie ‐ High grade zinc‐copper sulphide mineralization >9% zinc
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100% owned – No royalty liabilities
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NI 43‐101 Indicated resources (>9% Zinc) with deposit expansion and exploration upside
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Initial favourable metallurgy
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Demonstrated VMS mining camp scale potential via known showings and geophysics anomalies
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Excellent infrastructure – road, power, water, nearby communities
HPM – High grade nickel sulphide
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Up to 2.4% nickel in drill intercepts
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Targets preliminarily drill tested
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Open to drill and deposit expansion
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Additional property and regional exploration upside
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Access via road and rail
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Murchison Minerals Ltd.
Corporate Overview
Ticker: MUR‐ CSE
Share Price (C$)(1): $0.025
52 Week High/Low (C$): $0.035 ‐ $0.005
Shares O/S (MM)(2):
Options (MM)(3) (4):
Warrants (MM)(3) (4)
FD Shares O/S (MM):
1)
2)
3)
4)
5)
158.5
13.9
23.5
196.1
Market Cap (C$ MM)(1):
Working Capital (C$ MM)(2):
AMC (C$ MM)(2)(5):
$3.96
$0.045
$3.92
LARGEST SHAREHOLDERS Donald K. Johnson 27.30%
Rob McEwen 20.17% Management 9.84%
As of June 8, 2016
As of December 31, 2015
As of December 31, 2015
Weighted average exercise price of:
Options ‐ C$ 0.06, Cash on exercise C$ 0.90m
Warrants – C$ 0.05, Cash on exercise C$ 1.20m
AMC ‐ Adjusted Market Cap: Market Cap + Debt – Working Capital
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Murchison Minerals Ltd.
Management
Kent Pearson, P. Geo, President, CEO & Director
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Geologist with more than 25 years of experience in the mining and capital markets sectors Mining experience spans grassroots exploration through to mine production
Capital markets experience, includes equity and debt research
Executive roles in investment banking and consulting within the resources sector
Erik Martin, Chief Financial Officer and Corporate Secretary
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22 years of financial disclosure & management experience with publicly listed resource companies
Certified Public Accountant (CPA, CMA)
Bachelor of Commerce in Accounting and received his accreditation in 1996
Ann Tutura, Office Administrator
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More than 20 years as an executive assistant and office administrator supporting C‐Suite executives
Experience includes both large and junior publicly listed companies 5
Murchison Minerals Ltd.
Board of Directors
Jean‐Charles Potvin, B.Sc (Hon), MBA, Chairman
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Co‐founder of the company
President and CEO of Pangea Goldfields Inc. acquired by Barrick Gold Corporation for $204 million
Director, Vice‐President and top‐ranked Equity Research Gold Analyst with Burns Fry/ BMO Nesbitt Burns
Currently a director of Azimut Exploration Inc. and Gold Reserve Inc.
David Pyper, B.Eng., MBA, Director, Independent •
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Chair of the Compensation Committee and member of the Audit Committee
Managing Partner at Blair Franklin Capital Partners Inc. of Toronto
David has over 24 years' of M&A and corporate finance experience in a wide variety of industries
Denis C. Arsenault, B.Comm., Director, Independent
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Chair of the Audit Committee and member of the Compensation Committee
Chief Financial Officer of Sulliden Gold Corporation Ltd
More than 29 years' of professional experience with extensive board and governance committee experience Held senior financial positions in a range of sectors including mining and resources
Donald K. Johnson, B.Eng, MBA, O.C. Director
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Member of the Compensation Committee
Donald currently serves as a member of the Advisory Board of BMO Capital Markets
President of Burns Fry from 1984 to 1989
Served as Vice Chairman of BMO Nesbitt burns until 2004
Formerly a Director of the Toronto Stock Exchange and Chairman of the Investment Dealers Association of Canada
Currently Chairman of goeasy Limited
He is an Officer of the Order of Canada
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Murchison Minerals Ltd.
Board of Directors (cont’d)
John G.P. Dixon, Ph.D. Director, Independent
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President and CEO of Oryx Mining and Exploration Ltd
Founding member of Africo Resources Ltd. and Montero Mining and Exploration Limited
Formerly consultant to Placer Dome Inc. and Tiomin Resources Inc.
Joseph Hasabumutima, MBA Director, Independent
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IT and Transactions Analyst for Suncor Energy Inc
Extensive experience working with the public and corporations in both Africa and North America
Senior Advisor and Head of the National Bureau of Social Affairs, Government of Burundi
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project - Summary
Property: Mining Lease ‐ 411 Hectares (Has)
Mineral Exploration Claims – 3759 Hectares (Has)
Location: 175 Km NW of La Ronge, Saskatchewan
46 Km NW of Jolu Mill
Ownership: 100%, no property NSR
Infrastructure: Established Road Access, Water,
Proximal to Grid Power, Supply Centre
Geology: Metamorphic VMS Deposit hosted in metavolcano‐sedimentary units
Past Work:
Mapping, Geochem, Geophysics, Trenching
Drilling ‐33,000m (1957 – 2012) on 140 dd holes 16 km strike of Zn/Cu VMS targets
identified via showings and airborne EM
Current Resource:
Brabant‐McKenzie Deposit
Indicated – 1.5 mt @ 9.2%
Inferred – 3.0 mt @ 5.6% Zn
Next Steps:
Ongoing desktop compilation and target ID
Resource expansion and upgrade via drill program
Test additional VMS targets
Brabant Project
La Ronge
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project - Location
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The Project is accessible 175 Km NE of La Ronge Saskatchewan via Highway 102
and approximately 3km east of Brabant Lake settlement
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The property consists of:
Mineral Claims – covering 3,759 Has over a 16 km of strike length 1 Mining Lease – 411 Has
Hosts the Deposit
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Brabant area is supported with grid
power
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Significant water access
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Community/services support Brabant Project
La Ronge
Flin Fli
Flo
n
Brabant Mining Lease
5054
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Brabant High-Grade Zinc Project
Property Geology
• Regionally the Project lies in the same prolific volcanic‐sedimentary belt as the age‐equivalent Flin Flon deposits such as Lalor Lake, Lynn Lake and Snow Lake
Approximate Location of Brabant‐McKenzie Deposit
• The property is underlain by a series of meta‐
volcanics, sediments and associated pegmatite units
• The units are mapped as isoclinal folds (F1), fold plane axis strike NE‐SW dipping 45 to 65 degrees NW, plunging approximately north
• F1 folds refolded into second phase broad open folds (F2) with fold planes striking WNW to ESE
• Cross cutting structures are inferred via mag geophysics but not confirmed geologically
• The Deposit is associated with the meta‐volcano‐
sedimentary units
Source: Kleespies etal. 1989
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project - Deposit Geology
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The Deposit is defined as a high grade metamorphosed VMS deposit
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Similar to the Geco deposit (Ontario) in sulphide and texture content
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Mineralization hosted as massive‐disseminated and breccia‐vein sulphides
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Consists of coarse grained (recrystallized) sphalerite, chalcopyrite, galena, pyrrhotite and pyrite
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project - Deposit Geology
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Three mineralized domains are interpreted as limbs of an isoclinal fold and its attenuated fold nose
The Deposit outcrops at surface, strikes N‐NE, averages dip 51 degrees NW
Known mineralization is identified over 1,100m strike •
Upper Main Zone, Upper South Zone (UMZ, USZ ‐ Magenta), Lower South Zone (LSZ‐ Gold)
Currently defined over 800m and down dip 500m
Width ranges 3m to 13m, averaging 5m
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Lower Main Zone (LMZ‐ Blue)
25‐30m below Upper Zone
Lower Zone currently defined over 400m strike and down dip 520m
Width ranges 3m to 10m, averaging 5m
Brabant‐McKenzie Deposit Resource Domains ‐ Hanging Wall View Source: 2008 43‐101 Second Technical Report on Brabant Lake Property, Leapfrog Renderings ‐
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project – High-Grade Drill Intercepts
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2008 drilling primarily on the Upper and Lower Main Zones yielded encouraging high grade intercepts
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High grade assay results suggest internal massive sulphide sub‐domains grading ≥10% zinc
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Table 1 below outline selected 2008 drill intercepts Table 1
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project – Deposit Resources
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Intensely drilled Lower and Upper Main Zones host a high grade core of an outlined indicated resource >9% zinc
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Lesser drilled zones outline an initial inferred resource of >5.5% zinc
Inferred
Inferred
Inferred
Inferred
Indicated
Inferred
Inferred
Indicated
Hanging Wall View ‐ McKenzie Deposit Grade Distribution
(10% zinc and greater in Red)
Footwall View ‐ McKenzie Deposit Grade Distribution
(10% zinc and greater in Red)
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project – NI 43-101 Resources
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Current NI 43‐101 resources are derived from all defined mineralized zones
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Both the Upper and Lower Main zones host the indicated and part of the inferred resource
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The Lower and Upper South Zones host most of the Inferred resource
The resource for the Brabant Lake Zinc deposit was estimated on the basis of approximate $US three-year trailing average metal
prices of $1.27/lb zinc, $3.02/lb copper, $0.86/lb lead, $12.49/oz silver and $663/oz/gold, and a $US exchange rate of $0.912.
An NSR cut-off of $75/t for underground mining and milling was utilized to report the resource.
Resource estimate based on 66 diamond drill holes and 2,195 assays
Source:
SECOND TECHNICAL REPORT ON THE BRABANT LAKE PROPERTY, SASKATCHEWAN, CANADA FOR MANICOUAGAN MINERALS INC.
MPH Consulting Limited P & E Consultants Inc. Gerald Harron, M.Sc., P.Eng. Antoine Yassa, P.Geo. Eugene Puritch, P. Eng. Effective Date: September 12, 2008 Toronto, Ontario, Ca
MPH Consulting Limited 15
Murchison Minerals Ltd.
Brabant High-Grade Zinc Project – Exploration Upside
Airborne VTEM Geophysics
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3D Airborne VTEM geophysics modeled plates define mineralization to at least 300m depth
Modeled plates also demonstrate that the Deposit contains strike extension potential
N
S
Strike extension potential via modeled
airborne VTEM plate anomaly
Modeled VTEM plates are multicolored squares/rectangles
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project – Exploration Upside
Airborne VTEM and TDEM Ground Geophysics
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December 2015 Ground TDEM geophysics energy envelope demonstrates a conductive horizon along strike from Brabant‐McKenzie deposit
N
S
Modeled VTEM plates are multicolored squares/rectangles
Strike extension potential via modeled
airborne VTEM plate and TDEM energy envelope anomalies
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project – Exploration Upside
Ground Time Domain EM Geophysics
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Ground magnetics and a modeled Ground TDEM plate completed in December 2015 defines:
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An open ended conductive and magnetic horizon extending south and to depth of the Deposit
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Strike, length, dip and depth consistent with known airborne conductor extents and historic drilling
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Historical drilling along the 2015 TDEM conductor trend consist of several short, near surface holes
None appear to have adequately tested the horizon of the newly modeled conductor
Modeled Ground TDEM Plate
View Looking Approximately Azimuth 35
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project – Exploration Upside
Borehole EM and High Conductivity Ground Time Domain Geophysics
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3D visualization of borehole EM (BHEM) and modeled high conductive Ground TDEM geophysical plates with the Upper and Lower Mineralized zones confirm:
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Excellent correlation with Deposit mineralization
Down dip mineralization and expansion potential Significant infill potential of the Deposit remains a priority drill target
Deposit Infill Potential View Looking Azimuth 139
Plunge +13
Preliminary Deposit Down Dip Extension Potential Hanging Wall View – Mineralized Domains/High Conductivity BHEM Plates (Wine Colored) Late Time TDEM Plate (Deep Blue), Early Time TDEM Plate (Light Blue)
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project – Exploration Upside
Deposit Infill and Expansion
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The current geological model and associated geophysics show significant upside remains to expand and upgrade the Deposit through:
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Infill drilling to advance Indicated to Measured and Proven and Probable
Infill drilling to advance Inferred to Indicated resources
Definition drilling to expand known high grade mineralized zones
Tonnage expansion along strike and down plunge/dip on known mineralized zones
Infill/Expand
Infill/Expand
Expand
Expand
Infill/Resou
rce Upgrade Infill/Resou
rce Upgrade
Infill/Resou
rce Upgrade
Upgrade
To M,
P+P
Expand
Upgrade
To M,
P+P
Expand
Expand
Expand
Expand
Expand
Expand
Expand
Expand
Hanging wall view of mineralized domains
(Red > 10% Zn)
Infill/Reso
urce Upgrade Expand
Footwall view of mineralized domains
(Red >10% Zn)
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project – Camp Scale Potential
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A mineralized horizon is defined over a 16 km strike of the property
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In addition to Brabant‐McKenzie Deposit, at least six other zinc/copper/lead mineral showings identified •
No follow up exploration
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27 VTEM conductor anomalies identified and modeled along favourable horizon (purple squares)
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10 modeled VTEM conductor targets partly tested in 13 shallow drill holes
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17 VTEM anomalies remain untested
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project – Preliminary Metallurgy
Flotation Testwork
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1994 ‐ Phelps Dodge completed flotation testwork on 3 composite samples
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Best sample grading 16.90% Zn & 1.14% Cu produced:
• Zinc concentrate grading 52%‐56% Zn
• Copper concentrate grading 4%‐24% Cu
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Phelps Dodge concludes that production commercial zinc concentrate is viable but substantially more metallurgical test work is required
Material Sorting Testwork
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2014 – Murchison commissioned SGS Canada Inc. to test separation of sulphides and silicates via Heavy Liquids
Separation (HLS) techniques on Brabant‐McKenzie Deposit samples
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The HLS technique was able to produce sulphide‐rich sink fraction and silicate‐rich float fraction
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Important for pre‐milling ore head grade concentration
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project – Idle Mill Nearby
Jolu Mill
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Located 46 km by road south of the Project; potential synergies with mill owners
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Mill refurbished 2011‐12, but currently idle
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700 tpd crushing & milling circuit, grid power, tailings pond, laboratory, camp facilities
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Material sorting facility could be added, pending further testwork results on the Deposit
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Flotation circuit could be added
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Murchison Minerals Ltd.
Brabant High-Grade Zinc Project – Next Steps Exploration
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Completion of desktop study, evaluation and modeling of historical data ‐ DONE
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Detailed evaluation of priority EM conductor anomalies and associated geology for the Deposit drill
target identification – DONE
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Geological confirmation, mapping, prospecting of the Deposit outcrops and trenches ‐ DONE
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Completion of ground TDEM and Mag survey further defining a deposit strike extension target COMPLETED MID‐DECEMBER, 2015
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Additional borehole EM geophysics program design and execution – UNDERWAY
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Phase 1 drill program design and execution to upgrade and expand known resources laterally and at depth ‐ UNDERWAY
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Regional systematic prospecting and sampling surveys on all mineral occurrences along the 16 km long Brabant Lake property favourable horizon
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Concurrent metallurgical study of mineralized zones
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Testing of ore sorting technologies on pyrrhotite, sphalerite and chalcopyrite separation
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Program and budget subject to outcomes and market conditions
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Murchison Minerals Ltd.
HPM High-Grade Nickel Project - Summary
Property: 36 Mineral claims – 1924.42 Has
Location: 275 km NNE of Baie‐Comeau
135 km south of Fermont Ownership: 50% JV with Pure Nickel with option to earn 70%
Glencore option to back in on 50% production
Infrastructure: Access via all weather provincial road/gravel road
Geology: Regionally Manicouagan Metamorphic Complex
Property ‐ Gabbro Est Intrusion
Mineralization:
Massive and semi‐massive sulphide pyrrhotite Less pentlandite and chalcopyrite Past Work:
Mapping, Geochem, Geophysics, Trenching
Drilling ‐6,500m (2000‐2008)
Drilling intersected numerous high‐grade intervals
Initial deposit defined
Prospecting identified new Ni‐Cu‐Co showings
Next Steps:
Desktop compilation and target ID
Design carry out ground truth exploration program
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Murchison Minerals Ltd.
HPM High-Grade Nickel Project - Location
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HPM Ni‐Cu‐Co land package is approximately 275 km NNE of Baie‐Comeau and 135 km south of Fermont via Provincial Road‐389 (“PR‐389”)
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HPM property is about 30 km from the established Petit‐Manic base camp and 40km from PR‐389 •
Land package consists of 36 claims covering 1924.42 Has
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Gagnonville airstrip is about 50 km
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Project supplies via Baie‐Comeau
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Murchison Minerals Ltd.
HPM High-Grade Nickel Project - Geology
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Regionally ‐ underlain by the 80 km long by 50km wide Haut Plateau de la Manicouagan
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The HPM property lies within the 50 km by 100 km Manicouagan Metamorphic Complex
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Mineralization consists of massive and semi‐
massive sulphide primarily pyrrhotite containing lesser amounts pentlandite and chalcopyrite
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Main prospects indentified by Xstrata Nickel are : Barre de Fer
PYC Forgues Intrusion
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Murchison Minerals Ltd.
HPM High-Grade Nickel Project - Geophysics
Xstrata/Glencore Area Of Interest
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2008 AeroTEM II survey covering HPM land package generated 953 AEM anomalies
Murchison
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2008 Max‐Min\Mag surveys over the Barre de Fer grid confirmed the presence of the AeroTEM II AEM anomalies
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Further defined the Barre de Fer nickel bearing massive sulphide showing
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Generated an additional 24 conductors 28
Murchison Minerals Ltd.
HPM High-Grade Nickel Project - Drilling
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2000 ‐ 2008 approximately 6,500 m of drilling has been carried out on HPM
Total drilling on the Barre de Fer has outlined an initial deposit
Significant intercepts include:
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15.06 m – 1.72% Cu, 0.66% Ni
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43.18 m – 1.74% Cu, 0.90% Ni
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4.03 m – 2.31% Cu, 1.35% Ni
Additional drilling on numerous Max/Min conductors intercepted potentially ore grade intervals including:
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5.74 m – 0.97% Cu, 2.37% Ni
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7.47 m – 0.76% Cu, 1.60% Ni
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7.20 m – 0.69% Cu, 1.44% Ni
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Murchison Minerals Ltd.
HPM High-Grade Nickel Project – Initial Next Steps
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Undertake fresh data compilation, desktop study, evaluation and modeling of historical data
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Field geological confirmation, mapping, prospecting of outcrops and trenches
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Detailed evaluation of priority EM conductor anomalies and associated geology for drill target identification
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Regional systematic prospecting and sampling surveys on any and all mineral occurrences property wide
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Program and budget subject to outcomes and market conditions
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Murchison Minerals Ltd.
Pickle Lake Gold
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Murchison Minerals holds a number of gold claims in the Pickle Lake Gold Camp both as 100% owner and in a 51:49 Joint Venture with White Metal Resources
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The properties include the:
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Kasagiminnis Property – 3 claims covering 738 Has (51%)
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Pickle Lake East Property – 2 claims covering 362 Has (1% NSR)
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Dorothy‐Dobie Property ‐ 14 claims covering 2,538 Has (51%)
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Pickle Lake Gold Property – 2 claims covering 463 Has (100%)
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Murchison Minerals Ltd.
Investment Highlights
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Focus Projects ‐ two high‐grade base metal deposits – Brabant‐McKenzie, HPM
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Located in favourable mining jurisdictions – Quebec and Saskatchewan •
Additional portfolio of gold properties in Ontario
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Brabant‐McKenzie ‐ High grade zinc‐copper sulphide mineralization >9% zinc
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100% owned – No royalty liabilities
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NI 43‐101 Indicated resources (>9% Zinc) with expansion and exploration upside
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Initial favourable metallurgy
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Demonstrated VMS mining camp scale potential via known showings and geophysics anomalies
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Excellent infrastructure – road, power, water, nearby communities
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HPM – High grade nickel sulphide
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Up to 2.4% nickel in drill intercepts
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Targets preliminarily drill tested
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Open to drill and deposit expansion
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Additional property and regional exploration upside
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Access via road and rail
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Brabant High-Grade Zinc Project
Murchison Minerals Ltd.
Suite 2500,
120 Adelaide Street West,
Toronto, Ontario M5H 1T1
Phone: 1 (416) 350‐3776
Email: [email protected]
Website: www.murchisonminerals.com
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