Zincx Resources Corp. · TSXV:ZNX
Zincx Resources — Investor Presentation (July 2018)
36 slides from Zincx Resources's investor presentation, Jul 1, 2018
Slide 1: Akie & Kechika Regional Projects
Akie & Kechika Regional Projects 1 July 2018
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation contains forward looking statements; including in particular, statements about ZincX Resources plans, strategies and prospects. These have been based on the Company's current assumptions, expectations and projections about future events. Although the Company believ
Slide 3: Zinc: Construction & Infrastructure Metal
Zinc: Construction & Infrastructure Metal • Zinc is the third most-used nonferrous metal in the world, after aluminum & copper • Primarily used as a coating on iron & steel to protect against corrosion – used in buildings, bridges, railways and automobiles – zinc is a “construction & infrastructure”
Slide 4: Opportunity
Opportunity CRU (research group) analyst, Helen O’Cleary: Forecast that enormous deficits in zinc will emerge in 2017 and 2018. In a presentation at the Sixth International Zinc Conference in Dubai which she called “Zinc – The New Copper” she outlined how…growing consumption in all major regions “wi
Slide 5: Zinc Supply Insufficient for Demand
Zinc Supply Insufficient for Demand Forecast Zinc Refined Balance • Insufficient mine supply expected to constrain refined production - From 2014-2020, refined metal supply increase of only 792 kt - Over the same period, refined demand increase of 2.8 Mt • Market was in deficit in 2016 • Ongoing lar
Slide 6: Slowing Zinc Mine Production Growth
Slowing Zinc Mine Production Growth Zinc Mine Production Peaks in 2020 Committed & operating mine production peaking 6 Source: CRU, ILZSG, Teck Resources
Slide 7: Management and Directors
Management and Directors Mr. Peeyush Varshney, LL.B. - CEO & Chairman - Principal and Director of Varshney Capital Corp., director of Mountain Province Diamonds Inc. (TSX:MPVD) and E3 Metals Corp. (TSX.V:ETMC) Mr. Praveen Varshney, FCPA, FCA – CFO & Director - Principal and Director of Varshney
Slide 8: Corporate Summary
Corporate Summary Share Structure – as at June 19, 2018 • Dominant landholder in British Issued & Outstanding 166.2M Columbia’s highly prospective Options 9.6M zinc-lead-silver Kechika District Warrants 3.5M 52 week low/high range $0.22/$0.39 • Host to several base metal Average daily volume 250,000
Slide 9: Akie & Kechika Regional Projects
Akie & Kechika Regional Projects Akie Project: Zn‐Pb‐Ag Cardiac Creek Deposit Advanced Exploration 9
Slide 10: Akie & Kechika Regional Claim Map
Akie & Kechika Regional Claim Map Akie Property: 116 km2 (yellow) Kechika Regional: 505 km2 (red) Kechika Regional – 51% ownership acquired by Teck Resources/Korea Zinc: 177 km2 (purple) 230 mineral claims Owned by ZNX • Claims Overlie 140 km of prospective Gunsteel Formation • Claims in Goo
Slide 11: Tongling Nonferrous Metals Group
Tongling Nonferrous Metals Group Integrated China SOE: copper mining, mineral processing, smelting & refining Ranked No.2 in China & No.6 in the world in terms of copper cathode production (2008) Paid $678M in 2010 for Corriente Resources’ undeveloped copper projects in Ecuador 11
Slide 12: Teck & Korea Zinc: Investors
Teck & Korea Zinc: Investors Teck & Korea Zinc Earn-in Agreement: Teck (TSX: TCK.B) is: Tiered option agreement to acquire up to One of the world’s largest producers of zinc 70% interest in the Pie, Cirque East & Yuen (645,000 tonnes of zinc con per year) properties (three of the contiguous Kechika
Slide 13: Location and Infrastructure
Location and Infrastructure • Akie & Kechika Regional properties located in NE British Columbia • 260 km NNW of Mackenzie • 450 km NNW of Prince George • All-season road access to the Akie property & planned UG development at Cardiac Creek • Existing paved highway and railway access at Mackenzie • B
Slide 14: Geological Setting
Geological Setting World Famous Selwyn Target Host Rock: Basin “Gunsteel Shale” Kechika Trough: SE extension of Selwyn Basin into British Columbia 14
Slide 15: Imbricate Thrust Faults
Imbricate Thrust Faults Schematic: development of 3 repeat thrust panels on Akie panel Akie Western Panel: Akie Central Panel: Akie Eastern Panel: • GPS Zone • Cardiac Creek Deposit • South Zinc Anomaly • Zn‐Pb±Ag soil anomaly • NW Zone • Sitka Showing • North Lead Anomaly • Ag‐Zn‐Pb soil anomalies
Slide 16: Akie Property – Cardiac Creek Deposit
Akie Property – Cardiac Creek Deposit Work completed by ZNX 2005-2017 • Diamond drilling: ~65,000 total metres in 151 diamond drill holes; 116 holes in Cardiac Creek deposit block model • NI 43-101 Indicated and Inferred resource estimate updated Q4 2017 • Detailed metallurgical testing completed •
Slide 17: Multiple Wide High-Grade Drill Intercepts
Multiple Wide High-Grade Drill Intercepts Hole # Int (m)* Zn+Pb (%) 05-30 24.63 14.69 05-32 19.60 14.70 07-45 26.11 16.98 07-49 14.13 13.65 07-50 14.69 20.08 07-51 24.93 12.40 07-53 11.36 15.15 08-57 14.44 12.14 15-121 20.84 15.69 15-124 17.04 13.20 17-137 15.44 22.61 * Interval is true width 17
Slide 18: Cardiac Creek Long Section
Cardiac Creek Long Section 1,300 metre strike length Room to Expand : 800 metre down‐dip extent Open at depth & along strike 20 metre average true thickness 18
Slide 19: DDH A-17-137
DDH A-17-137 High Grade Interval: 25.9% Zn Cross Section A‐17‐137 Drill Hole From (m) To (m) True Width (m)* Zn (%) Pb (%) Ag (g/t)† Zn+Pb (%) A‐17‐137 454.40 559.44 57.79 9.72 2.07 19.1 11.79 CCZ 466.78 534.09 37.06 11.83 2.68 23.4 14.51 including 480.93 534.09 29.26 14.32 3.33 28 17.65 including 5
Slide 20: Cardiac Creek Resource
Cardiac Creek Resource Cut Off Tonnes Zinc Lead Silver Combined Zinc Metal Lead Metal Silver Grade % (million) (%) (%) (g/t) Zn + Pb (Mlbs) (Mlbs) (Moz) Zinc (%) INDICATED 2 41.5 6.08 1.16 10.7 7.24 5,563 1,062 14.3 3 34.1 6.86 1.32 11.9 8.18 5,161 994 13.0 4 28.1 7.58 1.46 13.0 9.04 4,700 908 11.7
Slide 21: Gross In-situ Metal
Gross In-situ Metal Indicated Inferred Metric tonnes 22.7 Million 7.5 Million Zn Cut-off Grade 5% 5% Average Grade Zinc – 8.32% Zinc – 7.04% Lead – 1.61% Lead – 1.24% Silver – 14.1 g/t Silver – 12.0 g/t Gross Contained Zinc – 4.2 billion lbs Zinc – 1.2 billion lbs Metals Lead – 0.8 billion lbs Lead
Slide 22: Cardiac Creek Metallurgy
Cardiac Creek Metallurgy • Flotation testing indicated that a conventional reagent scheme produced clean, marketable concentrates • Zinc Concentrate: 89% recovery into a concentrate grading 52.4% • Lead Concentrate: 46% recovery into a concentrate grading 45% • Saleable concentrates can be produced
Slide 23: Cardiac Creek PEA
Cardiac Creek PEA • Estimated pre‐tax NPV7% of $649M ($401M after‐tax) • Estimated pre‐tax 35% IRR (27% after‐tax) • Estimated pre‐tax 2.6 year payback (3.2 year payback after‐tax) • PEA contemplates 4,000 tonne per day underground mine & 3,000 tonne per day concentrator with an 18‐year mine life •
Slide 24: Cardiac Creek PEA
Cardiac Creek PEA Key Parameter Base Case Spot Price1 Mine Life 18 years Mine Production Rate 4,000 tpd Plant Throughput (LOM average; after 3,000 tpd DMS) Tonnes Mined 25.8 Mt Mined Head Grades 7.6% Zn; 1.5% Pb; 13.08 g/t Ag Tonnes Milled 19.7 Mt Milled Head Grades (after DMS 10.0% Zn; 1.9% Pb; 17.
Slide 25: Cardiac Creek PEA
Cardiac Creek PEA LOM Total Capital Costs Initial ($M) Sustaining ($M) ($M) Mining 58.2 260.0 318.2 Site Development 7.5 0.7 8.2 Mineral Processing 78.8 11.8 90.6 Tailings Management 5.0 8.3 13.3 On‐Site Infrastructure 55.1 6.3 61.4 Off‐Site Infrastructure 1.0 0.2 1.2 Project Indirects 28.0 5.1 33.2
Slide 26: Cardiac Creek PEA
Cardiac Creek PEA Average Operating Costs Per tonne milled LOM Mining $50.05* $984.7M Processing $33.13 $651.7M Tailings & DMS Rejects $2.87 $56.5M G&A $16.33 $321.3M All‐in Total OPEX $102.38 $2,014.1M Payable Metal Per annum (avg M lbs/yr) LOM (M lbs) Zinc 178 3,268 Lead 20 362 Total Payable $/ton
Slide 27: Cardiac Creek PEA
Cardiac Creek PEA Sensitivity Analysis ‐$0.10 Base Case +$0.10 Zinc (US$/lb.) US$1.11 US$1.21 US$1.31 Lead (US$/lb.) US$0.90 US$1.00 US$1.10 Pre‐tax NPV7% $389M $649M $908M IRR 25% 35% 44% Payback 3.5 years 2.6 years 2.1 years Post‐tax NPV7% $234M $401M $567M IRR 20% 27% 34% Payback 4.1 years 3.2 ye
Slide 28: Cardiac Creek PEA Overall Site Plan
Cardiac Creek PEA Overall Site Plan 28
Slide 29: Opportunity: Under-valued
Opportunity: Under-valued ZNX (formerly CZX) currently trades at an EV/lb Zn‐equiv. (M&I Resources) of US$0.008/lb, compared with select peers averaging US$0.036/lb. Based on total resources (M,I&I) ZNX trades at US$0.006/lb, compared with US$0.021/lb Close Annual Shares Market Cap Cash EV P/NAV M&I
Slide 30: Kechika Regional Project
Kechika Regional Project Potential for large tonnage SEDEX deposits in thrust‐repeated panels of Gunsteel Formation (140 km of strike length) District‐scale exploration play: 100% owned by ZNX ; 49% Pie Option properties Historical exploration from 1970’s to 1980’s; focused on select mineraliz
Slide 31: Mt. Alcock Project
Mt. Alcock Project 9,172 ha property Lightly drill tested in 1989 on main zone (2,264 metres total) Main zone is massive SEDEX barite cap overlying Zn‐Pb mineralization No modern follow‐up; numerous untested coincident soil & geophysics targets NI 43‐101 Technical Summary report issued in
Slide 32: Exploration Target at Mt. Alcock
Exploration Target at Mt. Alcock 32
Slide 33: 2017 Exploration Summary
2017 Exploration Summary Approximately 4,700 meters of HQ diamond drill core completed on 8 holes using 2 drill rigs; total of 1,100 samples taken for assay All drill holes intersected the target Cardiac Creek Zone with excellent drill results including: A-17-137 with 22.61% Zn+Pb & 36.2 g/t A
Slide 34: Upcoming 2018 Catalysts
Upcoming 2018 Catalysts News from 2018 Exploration Program: Q3 2018 Consider drilling on Kechika Regional claims: Mt. Alcock/Yuen North Q3 2018 Secure financing for major 2-year underground program: YR 2018 Continue to seek major project financing from strategic mining gp. YR 2018 34
Slide 35: Summary
Summary Cardiac Creek (Akie Property) is one of the largest undeveloped zinc‐lead‐silver deposits in the world & has attracted investment from large base metal mining companies including Tongling Nonferrous Metals, Teck Resources & Korea Zinc – attracted by project scale, grade, district‐scale dep
Slide 36: ZincX Resources Corp.
ZincX Resources Corp. Please contact us at: 2050 – 1055 West Georgia St. PO Box 11121, Royal Centre Vancouver, BC, Canada V6E 3P3 Telephone: 1.604.684.2181 Toll Free: 1.855.684.2181 Email: [email protected] WWW: www.zincxresources.com 36