Olivut Resources Ltd. · TSXV:OLV
Olivut Resources — Shareholder Meeting (March 2019)
32 slides from Olivut Resources's shareholder meeting presentation, March 2019
Slide 1: 1
1
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is confidential and for internal use only. The contents are not to be reproduced or distributed to any third party, including the public or press. The information contained herein, while obtained from sources which we believe are reliable, is
Slide 3: Why Invest in Diamonds?
Why Invest in Diamonds? “The diamond market’s long-term outlook remains positive.” Source: Bain & Co 2018 • Commodity with a superior supply demand profile over the next 10 years • Why? • Lack of recent discoveries • Long decline in production going forward • Continuing growth in demand from middle
Slide 4: Historical Production
Historical Production Supply in 2020 will not equal pre-financial crisis supply in 2005 Source: De Beers, Bain and Co 4
Slide 5: Limited New Mines Coming Online
Limited New Mines Coming Online Forecasted rough diamond production of new mines, million carats, optimistic scenario 25 20 Jay (Ekati) Washington Companies 10 Luaxe Endiama/ALROSA Chidliak De Beers Group Star-Orion South Star Diamond Corp Zarya ALROSA 0 Other smaller projects 2017 2019F 2021F 2023F
Slide 6: Annual Global Diamond Supply
Annual Global Diamond Supply Rough-diamond supply, million carats, 2017-2030, base scenario 150 120 Additional Production New Mines/Projects 90 60 Existing Mines 30 0 2018E 2022F 2026F 2030F Source: Bain & Co 2018 (Modified) 6
Slide 7: Major Application of Lab-grown Diamonds
Major Application of Lab-grown Diamonds Traditional High-tech Jewelry Technology HPHT Mostly CVD Mostly CVD (High pressure, High temperature) (Chemical Vapor Deposition) (Chemical Vapor Deposition) Use Grinding & cutting tools for Sensors, semiconductors, Colorless & colored construction, energy and
Slide 8: Rough Diamond Supply and Demand
Rough Diamond Supply and Demand Rough-diamond supply, 2000-2030, base scenario, 2018 prices $ billions (in real terms) • Global rough-diamond demand to 2030 to grow at average annual real rate of ~0-2% • Supply projected to grow -1 to 1% per year Source: Bain & Co 2018 (Modified) 8
Slide 9: Invest in the Diamond Sector
Invest in the Diamond Sector • Portfolio Diversification – prices do not correlate with performance of other investments • Liquid Markets • Market underpinned by solid core of stable, large cap, well known companies (e.g. De Beers, RTZ, Washington Companies) • Excellent long term supply/demand dynam
Slide 10: Why Invest in Olivut?
Why Invest in Olivut? • Proven Management: • HOAM - 29 kimberlite discoveries in new province • Numerous additional untested targets • Seahorse – new targets soon to be drilled • High level of fiscal management • Excellent results for dollars spent • Expanding exploration opportunities in multiple f
Slide 11: HOAM Project Location
HOAM Project Location Region of Interest • ~ 36,000 ha 100% owned within Region of Interest • 450 km x 200 km region • 29 kimberlite discoveries to date • Excellent KIM chemistry indicative of diamond stability field sources 11
Slide 12: Land Mass Comparison With Slave Craton Mines
Land Mass Comparison With Slave Craton Mines 12
Slide 13: Excellent Geophysical Targets
Excellent Geophysical Targets • Numerous new priority targets • Many subtle anomalies correlate with magnetics of many producing pipes • Distinct, isolated, positive and negative magnetic features • Potential for large, high volume kimberlites • Near surface intrusives ~150 x125 m e.g.,<30m depth 13
Slide 14: Exceptional Geochemistry
Exceptional Geochemistry Olivut Regional Pyrope Chemistry • Very high percentage of diamond stability field indicator minerals, as well as some microdiamonds recovered • Diamond field indicator mineral source remains to be discovered 14
Slide 15: HOAM – Excellent Logistics
HOAM – Excellent Logistics • communities nearby – Ft. Simpson, Tulita, Wrigley, Deline • all weather roads - Mackenzie and Liard Highways • major pipeline cuts through or close to claims/permits • river transportation • favourable terrain • airport infrastructure • land based targets 15
Slide 16: HOAM Proposed Exploration Program
HOAM Proposed Exploration Program • Complete detailed helimag survey over remaining priority targets - Budget: ~ C$750,000 • Drill targets in staged approach to test multiple focus areas - Budget: ~ C$2M for initial 15 targets 16
Slide 17: Seahorse Project – a New Exploration Area
Seahorse Project – a New Exploration Area 17
Slide 18: Seahorse Project Area
Seahorse Project Area HE Tamora Claims Talmora Permits (5) | Seahorse Project Area [JJ Olivut Permits (2) Potential Additional Seahorse Project Area (O)livut ‘I
Slide 19: Deep Tropical Weathering 62 Ma – 55 Ma
Deep Tropical Weathering 62 Ma – 55 Ma 19
Slide 20: Evidence of Deep Tropical Weathering
Evidence of Deep Tropical Weathering • “Ferricrete” – hard, erosion–resistant layer of sedimentary rock cemented into a hard crust by iron oxides formed during deep weathering • Found as cobbles locally 20
Slide 21: Evidence of Deep Tropical Weathering
Evidence of Deep Tropical Weathering Google Earth View Samples from weathered region are mostly void of certain KIMs Darnley Bay Till Samples Area Enlarged 21
Slide 22: Corridor of Diamondiferous Kimberlites
Corridor of Diamondiferous Kimberlites after: Davies & Davies Faulting caused offset of kimberlite corridor 22
Slide 23: Potential for Higher-Level and Large/Super-Deep Diamonds
Potential for Higher-Level and Large/Super-Deep Diamonds Presence of Mn-Ilmenite KIMs possible indicator of deep source 23
Slide 24: Macro-diamonds Found Regionally! …Source not identified
Macro-diamonds Found Regionally! …Source not identified 24
Slide 25: Diamonds in Region
Diamonds in Region • Diamonds recovered from kimberlites • Darnley Bay 135kms N • Dharma 250kms SE • Seahorse KIMs match Lena West, do not match Darnley Bay or Dharma 25
Slide 26: Intense Tropical Weathering caused possible protective cap
Intense Tropical Weathering caused possible protective cap preventing deep scouring by glaciers Results - higher volume of kimberlite preserved - fewer KIMs dispersed Red arrows – less erosion due to protective cap Blue arrows – deeper scouring due to no protective cap 26
Slide 27: Geophysical Evidence for Potentially Very Large Kimberlite Bodies
Geophysical Evidence for Potentially Very Large Kimberlite Bodies • Magnetically complex feature with extensive dyke system • Numerous other targets 27
Slide 28: Main Terms of Talmora Option
Main Terms of Talmora Option 50% Property Interest for: 1. $1.2 M on project expenditures 2. $200 K cash payment 3. 1% NSR on certain land 28
Slide 29: Initial Seahorse Project Budget and Programs
Initial Seahorse Project Budget and Programs • Budget: C$1.2 million • Work Programs • Limited sampling • Heli-mag – Spring 2019 • Drilling up to ten holes - 2019 29
Slide 30: Olivut Capital Structure
Olivut Capital Structure MARKET CAP (Feb.28, 2019 @ $0.12 /share) $6,900,000 CAPITAL STOCK: (as of Feb.28, 2019) a) Issued – 57,840,611 common shares b) Stock Options – 4,222,500 from $0.075 - $1.40 LARGE SHAREHOLDERS: Pierre Lassonde approx. 12% Management/BOD approx. 5% 30
Slide 31: The Team
The Team Leni Keough P.Geo. President & CEO, Director & Founder Geologist, 25+ yrs experience Sharon Dowdall Chairman 35+ yrs legal experience in mining Ian Shaw CFO 35+ yrs financial experience in exploration sector Craig Reith CA, Director 35+ yrs financial experience in public sector Dr. Mal McCa
Slide 32: Summary
Summary • Developing the HOAM kimberlite province • Evaluating the Seahorse Project Area • Potential for very large volume kimberlites • Potential for large, super-deep diamonds • Numerous, excellent, discrete targets – drill ready • Experienced management 32