Emergent Metals Corp · TSXV:EMR
Emergent Metals — Investor Presentation (July 2022)
55 slides from Emergent Metals's investor presentation, July 2022
Slide 1: Creating Value Through Strategic Acquisitions and Exploration in Nevada & Quebec
CREATING VALUE THROUGH STRATEGIC ACQUISITIONS AND EXPLORATION IN NEVADA & QUEBEC JULY 2022
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can be identified by the
Slide 3: A&D Business Model
A&D BUSINESS MODEL Strategic Acquisitions of properties adjacent to existing mines or advanced stage projects, Strategic properties with deeply discounted prices due Acquisitions the current industry down cycle, or properties with locational and/or other synergies Value Value Creation through reinte
Slide 4: Singles, Doubles, Triples & Home Runs
SINGLES, DOUBLES, TRIPLES & HOME RUNS Recent A&D Transactions • 2018 – acquired North Property, QC and sold to Troilus Gold Corporation (TSX: TLG) for C$250,000 in cash and 3.75 million TLG shares, retaining a1% NSR royalty • 2019/20 - acquired New York Canyon Property, NV and signed Earn-in with Op
Slide 5: Why Nevada and Quebec?
WHY NEVADA AND QUEBEC? • Stable permitting, exploration, and mining jurisdictions • World class deposits and mines • NV is ranked #1 and QC is ranked #6 in Fraser Institute’s 2020 Survey of Mining Companies for attractiveness of investment • In 2020, NV produced 4.6 M oz Au, 79% of US production • I
Slide 6: Nevada
NEVADA • Focus on the 400 mi long Walker Lane structural trend in western Nevada • Broad zone of NW-SE striking parallel to sub-parallel right lateral strike-slip faults • Volcanism and related hydrothermal mineralization are recognized along the entire length of this trend Walker Lane Trend • Epith
Slide 7: Emergent's Nevada Properties
EMERGENT’S NEVADA PROPERTIES Historic Walker Lane Production(1) Rawhide • Comstock Lode: Properties (3) 8.4M oz Au, 193M oz Ag • Paradise Peak: New York Canyon & 1.6M oz Au, 24M oz Ag Mindora Properties • Rawhide: 1.7M oz Au, Golden Arrow 14.1M oz Ag Property • Aurora: 1.8M oz Au, 20.6M oz Ag • Gold
Slide 8: Golden Arrow Property
GOLDEN ARROW PROPERTY • ~10,000 ac property consisting of 17 patented and 494 unpatented claims • Advanced stage property with a 296,500 oz Au and 4.0 million oz Ag M&I resource(1) and 2018 Technical Report(2) • Extensive exploration database with >200,000 ft of drilling • Plan of Operations and Env
Slide 9: Golden Arrow Exploration to Date
GOLDEN ARROW EXPLORATION TO DATE • 361 drill holes totaling just over 201,000 ft • Comprehensive soil and rock chip sampling database • Historic geophysics includes gravity, ground and aeromagnetic surveys, airborne EM, IP-resistivity, and radio-metrics • Orion 3D DCIP/MT geophysical survey by Quant
Slide 10: Golden Arrow Deposit Model
GOLDEN ARROW DEPOSIT MODEL • Adjacent to the Kawich volcanic center, encompassing the historic N Golden Arrow Mining District • Modern exploration, post-1970s has focused on the Gold Coin and Hidden Hill bulk disseminated targets • Historic vein mineralization, evidenced by historical workings, has
Slide 11: Golden Arrow Geology (Plan View)
GOLDEN ARROW GEOLOGY (PLAN VIEW) N CONFIDENCE MOUNTAIN DEADHORSE HILL 11
Slide 12: Golden Arrow Geology (X-Section)
GOLDEN ARROW GEOLOGY (X-SECTION) 12
Slide 13: Golden Arrow Resource Model
GOLDEN ARROW RESOURCE MODEL Gold Coin Resource Hidden Hill Resource ▪ Looking northwest ▪ Dark blue lines are drill holes ▪ Light blue shades are model grade shells 13
Slide 14: Golden Arrow 2018 Resource
GOLDEN ARROW 2018 RESOURCE Gold Silver Resource Cut-0ff Gold Silver Tons Grade Grade Type Grade4,5 (oz) (oz) (opt) (opt) Measured Variable 1,850,000 0.028 0.43 52,400 796,000 Indicated Variable 10,322,000 0.024 0.31 244,100 3,212,000 Measured + Variable 12,172,000 0.024 0.33 296,500 4,008,000 Indica
Slide 15: Golden Arrow Drill Intercepts
GOLDEN ARROW DRILL INTERCEPTS Hole From To Length Au Ag AuEq (feet) (feet) (feet) (opt) (opt) (opt) GA-90-038 75.0 360.0 285.0 0.038 0.484 0.044 GA-90-083 267.0 505.0 238.0 0.103 2.256 0.139 GA-90-088 225.0 500.0 275.0 0.030 0.758 0.041 GA-93-145 60.0 280.0 220.0 0.017 0.314 0.022 GA-93-150 15.0 235
Slide 16: New York Canyon
NEW YORK CANYON • ~8,700 ac property consisting of 21 patented & 417 unpatented claims • Option to Joint Venture Agreement signed with Kennecott Exploration (“KEX”, a subsidiary of Rio Tinto plc’s (NYSE:RIO) in February 2020 • KEX can earn up to a 75% interest in the property by completing US$22.5 m
Slide 17: New York Canyon Target
NEW YORK CANYON TARGET • Advanced stage property with historic copper resources, including a 2010 Technical Report completed Searchlight Resources (TSXV: SCLT) • Database with over 139,000 ft. of historic drilling, 14,700 ft of recent drilling by KEX, surface sampling, and geophysics • Conceptual ex
Slide 18: New York Canyon Exploration to Date
NEW YORK CANYON EXPLORATION TO DATE • Discovered in the late 1800’s • Since the 1960’s several companies explored the property for major porphyry deposits • Between 1977-1991, Conoco drilled 107 holes totaling 83,433 ft, completed metallurgical work, and other studies • Between 1992-1997, Kookaburra
Slide 19: New York Canyon Geology
NEW YORK CANYON GEOLOGY • Stratigraphy composed mostly of conformable marine sedimentary units of Triassic and Jurassic ages • Sedimentary units are intruded by granitic rocks of the Cretaceous age • Rocks are intersected by structures, mostly associated with Walker Lane faulting, as conduits for mi
Slide 20: New York Canyon Geology
NEW YORK CANYON GEOLOGY • North Claim Block adjacent to past producing Santa Fe Gold Mine with production reported at 345,499 oz Au and 710,629 oz. Ag between 1989 and 1995(1) - Santa Fe being advanced again by Lahontan Gold Corp. (TSXV:LG) • South Claim Block includes three main exploration targets
Slide 21: New York Canyon Historic Resources
NEW YORK CANYON HISTORIC RESOURCES • May 1979 internal report completed by Conoco detailed a 142 Mt inferred resource grading 0.35% Cu, 0.015% Mo, 0.1% Zn, 4ppm Ag, and 0.1 ppm Au at the Copper Queen prospect(1) • Sept. 1979 internal report completed by Conoco detailed “possible reserves” of 13.2 Mt
Slide 22: New York Canyon Historic Resources
NEW YORK CANYON HISTORIC RESOURCES • In a 2010 Technical Report, SCLT estimated an indicated resource of 15.3 Mt of 0.43% Cu and inferred resource of 2.9 tons of 0.31% Cu for the Longshot Ridge prospect using a 0.20% Cu cut-off-grade • SCLT drilling from 2004-2006 focused on the Longshot Ridge • KEX
Slide 23: 3-D View of South Claim Block Area
3-D VIEW OF SOUTH CLAIM BLOCK AREA 23
Slide 24: Mindora Property
MINDORA PROPERTY • ~3,000 ac consisting of 117 claims (105 owned & 12 under option to purchase) • Extensive exploration database with ~42,800 ft of drilling • Target 1 - Near surface high grade epithermal Au and Ag (e.g. significant intercept of 105 ft of 0.098 opt AuEq)(1) • Target 2 - Near surface
Slide 25: Mindora Exploration to Date
MINDORA EXPLORATION TO DATE • Discovered in the late 1800’s • In the 1970’s, the potential for epithermal mineralization similar to the nearby Santa Fe Mine was recognized • Property explored by Hawthorne Mining, E&B Exploration, and Eureka Resources between 1979-2001 • Exploration included soil and
Slide 26: Mindora Panoramic View
MINDORA PANORAMIC VIEW Mindora Main Zone Mindora Property – Looking East 26
Slide 27: Mindora Geology
MINDORA GEOLOGY • Limestone and intermediate volcanic rocks of the Triassic Luning Formation underlie the east and central portions of the Property • Quartz rhyolite and quartz latite dikes and sills, and altered granodiorite, intrude the meta-sedimentary and metavolcanic rocks • Late Tertiary volca
Slide 28: Mindora Structural Setting
MINDORA STRUCTURAL SETTING • Located in a regional flexure of the Walker Lane Trend that appears to be favorable to both the ascent of intrusions and porphyry systems as well as epithermal mineralization • Epithermal gold mineralization controlled by N to NW trending structures associated with Walke
Slide 29: Mindora Mineralization
MINDORA MINERALIZATION • Disseminated Au and Ag mineralization found near surface in limestone contact with intrusive rocks • Mo mineralization found at depth below Au and Ag mineralization • Cu anomalies found on surface in 1990’s never drilled • Shallow hole depths range mostly from 200 to 300 ft
Slide 30: Mindora Historical Resources
MINDORA HISTORICAL RESOURCES • In 1998, Eureka calculated a historic resource of 1.04M tons of 0.037 opt Au & 1.78 opt Ag = 0.058 opt AuEq, containing 58,800 AuEq oz based current metal prices(1) • Metallurgical work indicated potential recoveries of >90% for Au and 75-80% Ag for milled ore and 70-7
Slide 31: Buckskin Rawhide East (BRE) Property
BUCKSKIN RAWHIDE EAST (BRE) PROPERTY • 48 unpatented claims • Optioned by and part of Rawhide Mining LLC’s (“RMC”) operating Rawhide Mine (aka Denton Rawhide Mine) • RMC is a private company with main shareholders EMX Royalty Corp. (NYSE:EMX), Austral Gold Corporation (TSXV: AGLD), and Coral Reef Ca
Slide 32: Rawhide Properties' Location Map
RAWHIDE PROPERTIES’ LOCATION MAP Emergent’s Buckskin RMC’s Regent Satellite Pit Rawhide East Property RMC’s Rawhid Mine Pits and Facilities Emergent’s Buckskin Rawhide West Property Emergent’s Koegel Rawhide Property 32 e
Slide 33: BRE Lease to RMC
BRE LEASE TO RMC • In 2014 (effective date June 17, 2013), Emergent leased BRE to RMC under the following terms: ➢ Lease term is 20 years, advance royalty payments are US$10,000 per year ➢ US$250,000 in exploration in Year 1 (completed) ➢ Cumulative US$500,000 in exploration by Year 3 (completed) ➢
Slide 34: History of the Rawhide Mine
HISTORY OF THE RAWHIDE MINE • Rawhide Mine has produced 1.8 M oz of gold and 14.9 M oz of silver from 1990 through 2019(1) • Gold was discovered in the Rawhide Mining District in 1906, with historic mining from 1908 to 1920 • Modern exploration in the District began in 1982 • Rawhide Mine was constr
Slide 35: History of the Rawhide Mine
HISTORY OF THE RAWHIDE MINE • In 2010, Rawhide Mine was acquired by RMC who continued to recover gold from the heap leach pads • In November 2012, RMC recommenced mining activities at Rawhide • In 2013/14 RMC acquired the Regent Property from Pilot Gold and leased the BRE Property from Emergent • In
Slide 36: BRE Exploration History
BRE EXPLORATION HISTORY • Kennecott conducted exploration and drilled 113 holes totaling 54,370 ft in the 1990’s on the BRE property • Four exploration targets were identified – Toiyabe, Chicago Mountain, North Buckskin Mountain, and Black Eagle • Mapping/sampling was done by Emergent in the 2000’s
Slide 37: BRE Exploration Targets
BRE EXPLORATION. TARGETS we ; ° * BUCKSKIN RAWHJQE EAST CLAIMS EXPLORATION TARGETS AND HISTORIC DRILLHOLES EMGOLD MINING CORPORATION Scale Bar Approx. 0.6 Mile
Slide 38: Buckskin Rawhide West (BRW) Property
BUCKSKIN RAWHIDE WEST (BRW) PROPERTY • 21 unpatented claims • Early-stage exploration property with potential for discovery of bulk disseminated Au/Ag mineralization • Strategic property due to: ➢ its location adjacent to the operating Rawhide Mine ➢ Its location adjacent to and west of the Toiyabe
Slide 39: Koegel Rawhide Property
KOEGEL RAWHIDE PROPERTY • 36 unpatented claims, early-stage strategic Au/Ag property located 4 mi south of Rawhide Mine • Mapping, soil, and rock chip sampling completed to date identifying major alteration zone 5,000 ft x 600 ft in size • 464 historic rock chip samples average 0.02 opt Au, with 13
Slide 40: Quebec
QUEBEC • Focus on properties: ➢ in known gold belts ➢ adjacent to existing or past producing mines or advanced stage projects with defined resources ➢ with a significant database of Casa South Troilus North historical information East-West ➢ accessible by road for lower cost exploration 40
Slide 41: Casa South Property
CASA SOUTH PROPERTY • 204 claims totaling ~11,400 ha • Adjacent and south of Hecla Mining Corporation’s (NYSE:HL) Casa Berardi Mine which produced over 2.4M oz Au since 1988(1) and 121,493 oz Au in 2020(2) • Adjacent and north of Iamgold’s (NYSE:AAG) Gemini Turgeon Property (3) • Exploration targets
Slide 42: Casa South Location
CASA SOUTH LOCATION Emergent Metals Casa South 42
Slide 43: Casa South Exploration to Date
CASA SOUTH EXPLORATION TO DATE • Work in the 1980’s including diamond drilling and RC drilling in glacial till, limited exploration work occurred on property over the last 20 years • Emergent acquired a comprehensive database of historic exploration work and modern geophysics • 3 major multi-kilomet
Slide 44: Casa South Exploration Targets
CASA SOUTH EXPLORATION TARGETS • Major gold bearing structure known as the Kama Trend lies just south of the Casa Berardi Mine - similar geologic characteristics with the Detour Lake Mine (5M oz+ Au) (1) • Major gold anomaly called the Central Till Anomaly extends up to 7 km - similar geologic chara
Slide 45: Casa South Exploration Targets
CASA SOUTH EXPLORATION TARGETS 45
Slide 46: Casa South Deposit Model (X-Section)
CASA SOUTH DEPOSIT MODEL (X-SECTION) 46
Slide 47: Trecesson Property
TRECESSON PROPERTY • 56 claims totaling ~1,900 ha • 50 km north of Val d’Or and 10 km west of the town of Amos • Cossett Gold System identified in exploration • Knick Exploration Inc. completed 154 drill holes totaling about 6,700 m in 2011 and 2017 and a 2012 Technical Report • Targets - high grade
Slide 48: Troilus North Royalty
TROILUS NORTH ROYALTY • Emergent holds a 1% NSR on Troilus North, which Troilus Gold Corporation (TSX:TLG) can acquire at any time for C$1 million • 209 claims totaling 11,300 ha • Contiguous to the past producing Troilus Mine being advanced by Troilus Gold – see www.troilusgold.com • Property part
Slide 49: East-West Royalty
EAST-WEST ROYALTY • 1% NSR on East-West (aka Little Long Lac) Property, which O3 Mining Inc. (TSX:OIII) can acquire for C$500,000 within 3 years or C$1,000,000 in years 4 and 5 from date of Agreement • In the Val d’or mining camp, adjacent to O3’s Marban Property which hosts a 2.4 M oz Au M&I resour
Slide 50: Management and Technical Team
MANAGEMENT AND TECHNICAL TEAM Management Position Experience David Watkinson, President, CEO, and Director Mining engineer with 35 years international experience including corporate, B.Sc., P.Eng. mine, and project management for both major and junior mining companies, mining contractors, and engine
Slide 51: Emergent Share Structure
EMERGENT SHARE STRUCTURE Emergent’s Share Structure* Shares Issued and Outstanding 19,431,887 Warrants 12,025,949 Options 1,257,500 Shares – Fully Diluted 26,901,670 Market Cap at C$0.24 per Share C$4.7 million *As at July 1, 2022 51
Slide 52: Emergent Peer Comparison - Nevada
EMERGENT PEER COMPARISON - NEVADA Company Symbol Share Shares Market Cap Main Stage Price* Outstanding $C Nevada $C (millions) (millions) Asset Gold Springs Resources GRC $0.17 254.2 $43.2 Gold Springs PEA Nu Legacy NUG $0.06 588.9 $35.3 Red Hill Exploration Allegiant Gold AUAU $0.28 102.3 $28.6 Eas
Slide 53: Emergent Peer Comparison - Quebec
EMERGENT PEER COMPARISON - QUEBEC Company Symbol Share Shares Market Cap Main Stage ` Price* Outstanding $C Quebec $C (millions) (millions) Asset Troilus Gold TLG $0.54 200.0 $108.0 Troilus Resource Fury Gold Mines FURY $0.66 139.5 $92.1 Eau Claire & Others PEA Azimuth Exploration AZM $0.98 82.2 $80
Slide 54: Opportunity Summary
OPPORTUNITY SUMMARY • Dedicated and experienced management • Successful acquisition and divestiture (A&D) business model • Multiple quality assets being advanced in NV and QC: ➢ Option to Joint Venture with Kennecott at New York Canyon, NV ➢ Advanced stage asset – Golden Arrow, NV – 300,000 M&I AuEq
Slide 55: Company and Contact Information
COMPANY AND CONTACT INFORMATION Trade Symbols: EMR : TSX Venture Exchange EGMCF: US OTC EML: Frankfurt & Berlin Stock Exchanges For more information, please contact: David Watkinson, P.Eng. President and CEO T: (530) 271-0679 Ext 101 E: [email protected] W: www.emergentmetals.com Historic Gold