Creating Shareholder Value Through Strategic Exploration · TSX-V: TWR February 2017 Creating...

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www.towerresources.ca TSX-V: TWR February 2017 Creating Shareholder Value Through Strategic Exploration

Transcript of Creating Shareholder Value Through Strategic Exploration · TSX-V: TWR February 2017 Creating...

www.towerresources.caTSX-V: TWR

February 2017

Creating Shareholder Value Through Strategic Exploration

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Forward Looking Statements

Limitation statements based on current expectations involving a number of risks and uncertainties and are notguarantees of future performance of the Corporation. These risks and uncertainties could cause actual results andthe corporation's plans and objectives to differ materially from those expressed in the forward-lookinginformation. Actual results and future events could differ materially from anticipated in such information. Theseand all subsequent written and oral forward-looking information are based on estimates and opinions ofmanagement on the dates they are made and expressly qualified in their entirety by this notice. The Corporationassumes no obligation to update forward looking information should circumstances or management's estimates oropinions change. Some of the technical information contained in this presentation is historical in nature and hasbeen compiled from sources believed to be accurate. The technical information has not been verified by Towerand may in some instances be unverifiable dependent on the existence of historical drill core, trench and grabsamples. Management also cautions that mineral resources on nearby properties are not necessarily indicative ofthe results that may be achieved on the subject property.

CAUTIONARY NOTE TO U.S. INVESTORS Tower’s properties do not contain reserves in accordance with thedefinitions adopted by the United States Securities and Exchange Commission ("SEC") and there is no assurancethat any explorations activities or feasibility studies carried out by Tower will establish reserves. Tower Resourcesreports mineral resource estimates in accordance with Canadian National Instrument 43-101. Resource estimatesunder Canadian National Instrument 43-101 are classified as "measured resources", "indicated resources" and"inferred resources”. Tower advises U.S. investors that while these terms are recognized and required by Canadiansecurities regulations, the SEC does not recognize these terms. Investors are cautioned not to assume that anypart or all of mineral deposits classified as "measured resources" or "inferred resources" will ever be convertedinto reserves. Further, "inferred resources" have a great amount of uncertainty as to their existence, and economicand legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever beupgraded to a higher category. Under Canadian rules, estimated of inferred mineral resources may not form thebasis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that partor all of any inferred resource exists, or is economically or legally mineable.

The Qualified Person (QP) for the Company is Nils Peterson, M.Sc., P.Geo.

Corporate Highlights

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• Tower’s corporate goal is to be an industry leading mine finder by way ofsystematic and strategic exploration.

• Tower’s corporate mandate is to strategically advance its projects while beingcognizant of market conditions and shareholder concerns.

• Tower is exploring in a safe, stable and mining friendly jurisdiction of BritishColumbia.

• Tower is committed to meaningful and productive early First Nations engagement.

• Tower has an outstanding technical team with proven track record of significantresource discovery.

• Tower’s current diversified project portfolio consists of three gold and copperprojects. All projects are near significant infrastructure.

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Mark Vanry, MBA – President, CEO, Director

Steve Vanry, CFA – CFO, Corporate Secretary, Director

Nils Peterson, MSc, PGeo – Chief Geologist

Christopher Leslie, MSc, PGeo – Senior Technical Advisor

Stu Averill, BSc, PGeo – Director

Richard Wyman, BSc, MBA – Independent Director

Gerald Shields, LL.B. – Director

Ken Thorsen, BSc, P.Eng – Technical Advisor

Issued and outstanding: 65,533,308

Warrants outstanding: 15,000,000

Options outstanding: 5,000,000

Fully diluted: 85,533,308

Insider Ownership: ~30%

Cash: $600k

Management and Capital Structure

Tower’s Advantage

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Rel

ativ

e V

alu

e

10 – 20 years

Exploration Discovery Feasibility ConstructionStartUp

Prod.

Tower can shorten the discovery window due to a primary focus on BC:• Safe, stable jurisdiction with new mine development (e.g., New Afton, Mt. Milligan, Red Chris).• Up to 30% government refund on qualifying expenditures.• Low cost of power with good infrastructure throughout province.• World class deposits with high grade potential at depth (e.g., KSM, Red Chris, New Afton).

Tower

Exploration to Mining InvestmentCurve

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•Rabbit North: Cu - Au porphyryproject southwest of Kamloops, BC

•Nechako Gold: Au, Ag and Cuproject - Epithermal and porphyrytargets south of Vanderhoof, BC

•More Creek: Au epithermal projectnorth of Stewart, BC – GoldenTriangle

BC Project Portfolio

Diversified portfolio with focus on Gold and Copper in a safe and

stable mining jurisdiction.

Rabbit North

Nechako Gold

Brucejack

KSM

Galore Creek

Schaft CreekGJ

Red Chris

Woodjam

Gibraltar

Mt. Milligan

Kwanika

Shasta

Afton/AjaxHighland Valley

Brenda

Copper Mtn

Huckleberry

Capoose

Blackwater

Prosperity

Bell

Endako

Kemess North

Lorraine

Kemess South

More Creek

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Prolific Mining District: Centered on Rabbit North

Rabbit North

New Afton

Looking southwest from Rabbit North towards Highland Valley Mine

Highland Valley Mine

Looking southwest from edge of Afton pit towards Rabbit North

• Road accessible 16,400 hectare copper and gold porphyry project optioned by Tower in July 2013.

• Located in the Triassic-Jurassic island arc related Quesnel Terrane; a significant and economically proven porphyrybelt in British Columbia.

• 14km southwest of the New Afton mine (New Gold) and 28km northeast of the Highland Valley mine (Teck).

• Excellent access to power, infrastructure, and experienced workforce based in Kamloops, 27km east of project.

• Documented porphyry related alteration and mineralization covering an area of approximately 4 by 4 kilometerswith 9 poorly tested targets that remain open in all directions.

Teck Resources

New Gold Inc

KGHM International

Tower

The Rabbit North Project is a large and under-explored porphyry copper-gold project located in a prolific porphyry belt of south-central BC

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Rabbit North Regional Targeting

Guichon Creek Batholith

Iron Mask Batholith

Regional magnetics

Regional Geology

Upper Triassic - Nicola Gp.

L.Tri to E.Jur – Guichon and Iron Mask Intrusions (and equiv)

Eocene – Kamloops Gp

Regional Fault

Significant Projects

25 km

Regional geology

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Rabbit North Geology and Geophysics

• Alkalic porphyry related copper and gold mineralization is hosted in three rock types: a zoned (diorite to syenite)and nested alkaline intrusion termed the Durand Stock, coeval microdiorite/microdiorite breccia, and countryvolcanic rocks of the Nicola Group.

• Magnetics are difficult to interpret due to the presence of magmatic and hydrothermal magnetite.

Geology

Diorite (215Ma)

Monzonite (200Ma)

microdiorite

volcanics

basalt

breccia

Magnetics and IP

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Rabbit North Targets

Chrysocolla

Central Monzonite Main

Western Magnetite

Central MonzoniteSouth

Kwil

KV

Buff

ChrysocollaEast

Dominic

Magnetics and IP Chargeability Contours Diamond Drilling (1975, 1997, 2004)30 DDH totalling 3,691 meters

Percussion Drilling (1970, 1972, 1980, 1990, 1994)51 PC totalling 4,206 meters

Historic Drilling

• Three targets exploredhistorically by shallowpercussion drilling byCominco in the 1970s andshallow diamond drilling in1997 and 2004 by juniormining companies.

• Most holes were spotted bythe same two geologists

• 2014 new targets discovered

Mineralized targets form a 3.9 km strike

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Rabbit North 2016 Drill Program

• Eleven diamond drill holes in 2016, totaling 3400m

• RN-008 intersected 200m of 0.30% copper, 0.15g/t gold, consistent with copper grades at operating mines in the region

• Highland Valley Mine: feed grade for the first nine months of 2016 averaged 0.31% copper (TECK 2016 3rd quarter results)

• Copper Mountain Mine: copper grade averaged 0.33% over first nine months of 2016 (CMMC 2016 3rd quarter results)

• Blind target (glacial till cover); open in several directions

• Margin of intrusion appears to be control to mineralization (e.g. Copper Mountain); large area open for discovery

• Two historic surface showings remained undrilled in 2016; three surface showings discovered by Tower remain undrilled ever

Chrysocolla

Central Monzonite Main

Kwil

KV

Buff

OPEN

OPEN

OPEN

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RN-008, -010, -011

• Alkalic copper and gold mineralization hosted in Nicola Group volcanic rocks• Strong sodic-calcic alteration, minor K-feldspar alteration• Abundant fine sulfide veinlets, sulfide replacement of mafics and magnetite

• Best mineralization is related to magnetite destructive alteration; change intargeting methodology

RN-008 at 208.8m; 0.77% Cu, 0.63g/t Au (2m sample)

Albite + biotite alteration, ccp and py replacement of mafic sites and magnetite

ccp + py

Mineralization

RN-011 at 284.3m

RN-008 at 122.3m; 0.81% Cu, 0.58g/t Au (2m sample)

RN-011 at 270.2m; 0.48% Cu, 0.28g/t Au (2m sample)

RN-011 at 282.3m

Breccias

ccp + py +/- bn

Weaker albite alteration; Nicola volcanic host

ccp + py

Pseudobreccia textures

Mineralized breccia matrix (ccp + mag + chl) Mineralized clasts with early mag veinlets, ccp

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Rabbit North Targets

DDH 97-17: 33m of 0.76g/t Au and 0.27% Cu

DDH 97-07: 10m of 12.3g/t Au

DDH 04-07: 86m of 0.17g/t Au and 0.18% Cu

Chrysocolla East1.87/t Au, 1.6% Cu and 0.07g/t Pd

Chrysocolla Trench:3m of 1.5g/t Au and 0.85% Cu

Target~530 x 160 m

Chargeability Anomaly

• Alkalic copper and gold porphyry target. Mineralization open in mostdirections.

• Strong albite alteration after magnetite + epidote (?) locally observedassociated with highest Cu grades (chalcopyrite +/- bornite).

• Local overprinting quartz + pyrite structurally controlled veins and brecciasenriched in gold (e.g., DDH 97-07). Focus of historic exploration in targetarea.

0.46 g/t Au, 0.5% Cu

CPY

DDH 97 – 18 @ 198m

1.72g/t Au, 2.4% Cu, 4.6g/t Ag (grab)

DDH 97-08: 31m of 0.1g/t Au, 0.25% CuBottomed in grade, only DDH to test the monzonite core

0.73g/t Au, 0.62% Cu, 4.3g/t Ag (grab)

CMZ South~530 x 160 m

• Alkalic copper and gold porphyry target hosted in the core of the Durandstock. Poorly tested historically yet comprises highest grade Cu and Au onsurface. One diamond drill hole (DDH97-08) tested the monzonite andbottomed in grade.

• Cu and Au is dominantly hosted near the contact with diorite in monzonite.Mineralization is characterized by disseminated and clotted chalcopyrite +/-bornite associated with varying degrees of epidote + carbonate + sericitealteration.

Chrysocolla Targets Central Monzonite Targets

0.43g/t Au, 1.02% Cu, 7.4g/t Ag (grab)

0.52g/t Au, 0.96% Cu, 6.5g/t Ag (grab)

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Rabbit North Targets

• Alkalic copper and gold porphyry targets hosted in microdiorite and brecciascomposed of microdiorite and plagioclase porphyry clasts.

• Strong, pervasive and locally clotted magnetite + epidote alteration with localpotassium feldspar + albite + magnetite veins. Clotted chalcopyrite with localvein controlled chalcopyrite and bornite

• Have not been drill tested. Considered priority targets for Phase 1 drill testing

0.98g/t Au, 0.54% Cu, 0.13g/t Pd (grab)

KV Target~460 x 400 m

Kwil Target~230 x 110 m

6.23 g/t Au. 0.79% Cu (grab)

1.9 g/t Au, 0.49% Cu (grab)

0.42 g/t Au, 0.23% Cu (grab)

Central Monzonite

KV and Kwil Targets

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Rabbit North Regional Exploration

• Fall 2013, Tower flew a 2888 line kilometer helicopter-bornemagnetic geophysical survey over complete land package.

• Summer 2014, Tower conducted a regional reconnaissance-levelgeological mapping and sampling program. Designed to ground-truthmagnetic anomalies and refine geological targets identified on 1:250kscale regional geological maps

• Two porphyry targets were discovered, Dairy and Beaton, located~3.5km north of the Durand Stock. Characterized by widespread andlocally pervasive QSP altered diorite and diorite breccias. Copper islocally anomalous. Both targets are interpreted to represent phyllichalos to a deeper porphyry system. Link to Durand Stock?

Dairy: Sericite + pyrite altered diorite breccia with trace chalcopyrite

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2017 Exploration Plans

2017 Plans

• Further diamond drilling of Western Magnetite, Chrysocolla zone, prospective margins of intrusion

• Integrated geochemical survey over Durand Stock area

• Prospecting in areas similar geologically to RN-008

• Detailed follow-up of Beaton and Dairy targets

Chrysocolla

Central Monzonite Main

Western Magnetite

Central MonzoniteSouth

Kwil

KV

Buff

ChrysocollaEast

Dominic

The Rabbit North project is a large land package with favorable geology close to infrastructure with limited historic porphyry copper focused exploration

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Nechako Gold Project

• Twelve mineral claims totalling 5,940 hectareslocated 80 km south of Vanderhoof. Excellent roadaccess.

• 30 km northeast of New Gold Inc's, BlackwaterGold Project (8.2 Moz Au with 60.8 Moz Ag,Proven and Probable mineral reserve; New Goldwebsite)

• Property is considered prospective for Blackwater-type epithermal gold and silver mineralization andporphyry-related copper and gold mineralization.

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Nechako Gold

Blackwater

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Nechako Gold Targets

• “Blackwater-Type” Au + Ag +/- Zn epithermal bulk-tonnage target with associated(?) Cu+ Au Porphyry target.

• Hosted in Jurassic (Hazelton) to Cretaceous (Kasalka) age felsic to intermediatevolcanics, volcaniclastic and intrusive rocks.

• System(s) associated with large Au + Zn + Ag + Cu + Pb till geochemical anomaly (Au to1050ppb in till), dispersion train ~7km down ice. Gold grains recovered from a recentGeoscience BC heavy mineral till survey down ice from gold target.

• Porphyry system associated with large chargeability-high which is open to south into alarge mag low, Epithermal system(?).

• Epithermal gold target has not been drill tested to date.

• Also historically explored by Rio and Placer Dome for Cu potential. Drilled porphyrymineralization in CH Zone (DDH92-02, 140m of 0.25% Cu with 40m of 0.42% Cu;potassic alteration and strong silicification noted). Shallow drilling with poor recovery.Zone open in multiple directions.

• Strong advanced argillic alteration and silicification noted in recent 2013 holes south ofCH zone.

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Nechako Gold Targets0.21 g/t Au, 0.65% Cu, 3.6 g/t Ag (grab)

Large altered + qtz veined boulders in till

Intervals of strong silica altered and brecciated felsic volcanics in drill core

Gold Target

2.9 g/t Au, 12.2% Zn, 19.4 g/t Ag (grab), peripheral base metal veins

DDH 92-02: 140m of 0.25% Cu (Au assays unknown)

1050ppb Au

270ppb Au

295ppb Au

Highly anomalous gold-in-till samplesDown-ice from gold target

Copper Target

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Nechako Gold Till Survey Results

• Till survey conducted late 2016

• Abundant gold recovered (up to 260 grains in 10kg sample)

• Source(s) of gold interpreted to be on property due to gold grain morphology and anomaly size, shape

• IP geophysics and additional till sampling in 2017 to produce drill targets

DRILL TARGET?

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More Creek Project

• Five mineral claims totalling 6,430 hectares located 120km north of Stewart, BC

• Located in the heart of the world-class Golden Triangledistrict

• 55km north of Pretium Resources’ Brucejack Project(9.1 Moz Au at 17.2g/t Au, Measured and Indicatedmineral resource; Pretium website)

• Near significant infrastructure (Northwest TransmissionLine, Highway 37, Bob Quinn airstrip)

• Property is considered prospective for epithermal goldand silver mineralization

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Golden Triangle

Brucejack (Pretium Resources)9.1 Moz Au @ 17.2g/t Au (2016 M&I Resource)

KSM (Seabridge Gold)2.8 Billion tonnes @ 0.55g/t Au and 0.21% Cu (2016 M&I Resource)

Sources: Imperial Metals website, Copper Fox website, SeabridgeGold website, Pretium Resources website, Skeena Resources website, NovaGold website

Red Chris (Imperial Metals)1.03 Billion tonnes @ 0.35g/t Au and 0.35% Cu (2015 M&I Resource)

Galore Creek (Teck/NovaGold)814.7 Million tonnes @ 0.31g/t Au and 0.50% Cu (2011 M&I Resource)

Schaft Creek (Teck/Copper Fox)1.22 Billion tonnes @ 0.19g/t Au and 0.26% Cu (2013 M&I Resource)

GJ (Skeena Resources)133.7 Million tonnes @ 0.36g/t Au and 0.532% Cu (2015 M&I Resource)

More Creek is strategically located in a World-class mineral belt

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More Creek Project – Sinter Zone

Silica + clay alteration, abundant breccias at Sinter Zone

Strong Hg, As, Sb anomalies (soil, silts, rocks)

Upper, barren zone of epithermal gold system?

Pyrite-silica stockwork, silica + clay alteration

Elongate fluid conduit structures in amorphous silica matrix

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More Creek Project – 2016 Stream Sampling

100 Cinnabar

20 Cinnabar

20 Cinnabar

38 Gold

41 Gold

Three stream sediment samples collected in fall of 2016

All contained cinnabar (Hg sulfide, associated with epithermal systems)

Abundant gold grains collected in two samples

Gold source unknown but restricted to confined catchment basin

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More Creek Project

• Exploration model suggests gold mineralization should be targeted below alteration characterized by strong argillic alteration with highly anomalous Hg, Sb, and As

• Gold source confined to small drainage basin near Sinter Zone; structurally lower?

• Detailed geological mapping, additional stream sampling, and IP geophysics needed: alteration mapping, definition of structural controls, discovery of gold source

• Define drill targets.

After Buchanan (1981)

Hg

Sb

As

Ag

Au

Base Metals

100m

200m

300m

400m

500m

Depth

MetalsSinter Zone(?)

Alteration

Gold Target

Exploration Model

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For more information, please contact:

Tower Resources Ltd.

TSX.V: TWR

www.towerresources.ca

[email protected]

604-558-2565

TSX:TWR.V912 - 1112 West Pender St.,

Vancouver BC V6E 2S1604-558-2565