H -GRADE SILVER, L Z C Y T · 2018-08-03 · TSX-V: MMG | US OTC: MMNGF 3 THE METALLIC GROUP OF...

TSX-V: MMG | US OTC: MMNGF

TSX.V: MMG | OTC: MMNGF

WWW.METALLIC-MINERALS.COM

HIGH-GRADE SILVER, LEAD AND ZINC IN CANADA’S YUKON TERRITORY


The data contained herein is provided for information purposes only. Certain information has been compiled from sources believed to be reliable. No

information in this presentation is to be construed as an offer to buy or sell securities.

Some statements contained in this presentation are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ

materially. Such forward-looking statements include among other things, comments regarding mining and milling operations, mineral resource

statements and exploration program performance. They may also include statements with respect to the Company's mineral discoveries, plans,

outlook and business strategy. The words "may", "would", "could", "should", "will", "likely", "expect," "anticipate," "intend", "estimate", "plan", "forecast",

"project" and "believe" or other similar words and phrases are intended to identify forward-looking information.

Factors that could cause actual results to differ materially include, but are not limited to, metal price volatility, economic and political events affecting

metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future

results of exploration programs, future profitability and production, the ability to raise sufficient capital to fund exploration, litigation, legislative,

environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits

encountered in connection with exploration activities; and labour relations matters.

This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and

readers should not place undue reliance on such forward-looking information. The Company disclaims any intention or obligation to update or revise

forward-looking information, whether as a result of new information, future events or otherwise. The reader agrees to hold the Company and its

subsidiaries, and their respective officers, employees and agents harmless against any claims for damages or cost or any loss of any kind arising out of

the access to or use of this presentation or any information contained in or obtained through this presentation.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: These tables use the terms "Measured",

"Indicated" and "Inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the

United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their

existence, and as to their economic and legal viability. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a

higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of a feasibility study. United States investors are

cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves.

Scott Petsel, P.Geo, is the Qualified Person under NI 43-101 who has reviewed and approved the technical information contained in this presentation

2

LEGAL STATEMENT

TSX-V: MMG | US OTC: MMNGF3

THE METALLIC GROUP OF COMPANIES

Metallic Minerals Corp. is a growth-stage exploration company focused on the acquisition and development of high-grade

silver and gold in the Yukon. The Company's core Keno Silver Project is located in the historic Keno Hill Silver District of

Canada's Yukon Territory, a region which has produced over 200 million ounces of silver and currently hosts one of the

world’s highest grade silver resources. The Company’s McKay Hill Project, northeast of Keno Hill, is a high-grade historic

silver-gold producer. Metallic Minerals is led by a team with a track record of discovery and exploration success, including

large scale development, permitting and project financing.

Group Ten Metals Inc. is a growth-stage exploration company focused on the acquisition and development of high-quality

platinum, palladium, nickel, copper and gold exploration assets in North America. The Company’s holdings include the

Stillwater West PGE-Ni-Cu project adjacent to Sibanye-Stillwater’s high-grade Pd-Pt mines in Montana, the Kluane PGE-Ni-

Cu project adjacent to Nickel Creek Platinum‘s Wellgreen deposit in the Yukon Territory, and the Black Lake-Drayton Gold

project in the Rainy River district of northwest Ontario.

The Metallic Group expects to include a newly-formed copper exploration company in 2018.

A Collaboration of Leading, Independent Exploration Companies

Vision & Strategy

To leverage our combined decades of experience in mineral exploration, project

permitting, community relations, project finance, and capital markets to create shareholder

value for member companies.

• A collaboration of leading exploration companies focused in politically stable districts

with the potential for world-class deposits;

• Large, brownfields land packages have been strategically acquired in these highly

prospective mining districts during the low parts of the metal price cycles;

• Metallic Group companies are focused on rapidly advancing targets to resource

definition and development stage to create value;

• Lead by teams with a track record of exploration and project development success,

including environmental stewardship and community engagement; and

• Utilizing shared resources for cost efficiency and specialized technical expertise with

experienced corporate governance and management oversight.


1987 - 1991 (↓75%)

2007 - 2008 (↓79%)

1996 - 2001 (↓70%)

2011 - 2016 (↓76%)

1984 - 1987 (↑144%)

1991 - 1996 (↑196%)

2001 - 2007 (↑282%)

2008 – 2011

(↑252%)

Source: Canaccord Genuity, TSX DataGroup*Past performance may not be indicative of future results

Average duration: 47 monthsAverage decline: 75%Last cycle: 59 monthsLast decline: 76%

Duration: 24 to 74 monthsIncreases: 144% to 282%CDNX Peak: 2400 to 3700Current CDNX level: 800

Bull Market Analog using the TSX Venture Composite Index

Coming off of a 5 year Bear Market

Bear Market Cycles Bull Market Cycles

Last bear cycle 59 months

Apr/87 to Jan/91

May/96 to Apr/01

Apr/07 to Dec/08

Feb/11 to Jan/16

Mar/84 to Apr/87

Jan/91 to May/96

Apr/01 to Apr/07

Dec/08 to Feb/11

Jan/16 to Present

Precious Metals Bull and Bear Market Cycles

Average CDNX Peak*

60

Current Market

4


Resource Company Development Stages & Valuations R

ela

tive

Val

ue

Time 1-3 years proof of concept -----> 2-3 years for drilling --> 3-5 years from PEA to Feasibility Study

Investors Early entry investors and small institutions ------------> Larger institutional investors

Higher risk looking for higher returns ------------> Reduced risk looking for incremental returns

Based on Canaccord Genuity Junior Mining Weekly and Company estimates

FinancingEquity -----------------------------------------------------------> Equity + debt + alternative sources (streams, off take, asset sale)

$1 to $10 M ------------------>$5 - 20 M ------------------> $10 - 25 M ----------------> $25 - $100 M +

Key Mgmt. Geologists --------------------> Geologists / Engineers ----------------------------> Geologists/Engineers /Finance /Operations

Risk ProfileHigh risk -----------------------> High-Mod risk -----------> Moderate risk------------------------------> Mod-Low risk

Exploration uncertainty - testing size & grade ------ > Technical uncertainty -engineering/permitting/financing

Studies Discovery --------------------> Resource estimates -----> PEA --------------------------> PFS -----------------------> Feasibility Study

Optimal entry area

for investors

PEA Stage Average Enterprise Value

$20-30/oz Au $2-$3/oz Ag

PFS StageAverage EV

$30-50/oz Au$3-$5/oz Ag

Feasibility Stage$100/oz Au$10/oz Ag

Advanced DevelopmentEarly DevelopmentResourceDiscoveryStage

De-risking/ re-valuation toward production & cash flowDiscovery Value Creation

Producer Valuations ~ Profit Margin/oz$200-$500/oz Au and $10-$20/oz Ag

Metallic MineralsKeno Silver

AndKlondike Alluvial

Projects

Speculative Valuation Premium Common at

Discovery and Resource Stage

5

TSX-V: MMG | US OTC: MMNGFTSX-V: MMG | US OTC: MMNGF

METALLIC MINERALS FUNDAMENTALS

6

A leading Yukon focused silver exploration company

▪ Highly-experienced team with a track record of major discoveries and exploration success

▪ Metallic holds the second largest land position in the high-grade Keno Silver District, which has over

300 million ozs historic production + current resources

▪ Multiple recent discoveries highlight district’s exploration potential for near surface deposits

▪ Based on the past shallow depth of production, recent discoveries and prospective geology the Keno

silver district shows the potential to ultimately host +1 billion ounces of silver

▪ Over past 18 months moved from acquisition through inaugural field programs to new discoveries with

the advancement of 3 targets to resource delineation

▪ Exploration in 2018 will see drilling at 3 resource delineation stage targets and up to 6 advanced

surface targets with another 20 prospective early stage targets being assessed

▪ Existing infrastructure in the district, very high grades and shallow deposits result in a low capex / high

IRR development potential and opportunity for rapid advancement to production

▪ Metallic has been operating since mid-2016 and is one of only a few, low political risk silver

exploration companies

▪ The fundamentals for silver and gold are compelling, with low valuations following a 5 year bear

market and the first leg of a new bull market paving the way for a multi-year bull run

▪ Metallic is also developing a production royalty portfolio in the famous Klondike Gold District, which

has produced over 30 million ounces of alluvial gold


Focused on high-grade silver in underexplored districts of the

Yukon with the potential to produce top-tier assets.

Objective to create value through a systematic, entrepreneurial

approach to exploration, reducing investment risk and maximizing

probability of long-term success.

▪ Board and Management with extensive experience in global

exploration and mining business, collectively raised over $650

million in project financing

▪ Former members of successful teams at NovaGold, Wellgreen,

Northern Freegold and Viceroy

▪ Credited with the discovery or expansion and advancement of

major precious and base metal deposits in the region:

o Donlin Creek, Alaska: M&I 40 Moz Au

o Galore Creek, BC: M&I 9 B lbs Cu, 5 Moz Au & 100 Moz Ag

o Wellgreen, Yukon: M&I 6 Moz PGM+Au, 3 Blbs Ni+Cu

▪ Recipients of Yukon Government awards for excellence in

environmental stewardship

METALLIC MINERALS CORP.Creating Value Through Vision and Experience

COMPANY AND TEAM OVERVIEW


MANAGEMENT TEAM & BOARD OF DIRECTORS

Greg Johnson – Chief Executive Officer & Board Chairman

▪ 30 years experience in exploration, development and

financing of large scale mining projects

▪ Broad capital markets experience, raising over $650 million

in project financing

▪ Co-founder of NovaGold, former President & CEO of

Wellgreen Platinum and South American Silver

▪ Exploration Manager Placer Dome (now Barrick Gold)

▪ Co-Credited with discovery or expansion and advancement

of major precious and base metal deposits in the region

Gregor Hamilton – Director

▪ Over 20 years of mining sector experience in investment

banking, corporate finance and geology

▪ Capital markets expertise and global finance contacts for

mining, M&A and corporate strategy

▪ Successful entrepreneur in mining, technology and

agribusiness in Canada and South America

Bill Harris – Director

▪ President and CEO of Midnight Mining

▪ Founder and former Executive of Northern Freegold

▪ Lifelong Yukoner, prospector and mining entrepreneur

Stephen Pearce, LLB – Director

▪ Practicing corporate and securities lawyer

▪ Director of Sable Resources, Golden Goliath, Centenara

Mining, Ashburton Ventures and Wildflower Marijuana

Tim Thiessen, BA, CA – Chief Financial Officer

▪ 20 years of international accounting and finance experience

▪ Has held CFO position at three publicly listed mineral

companies: Foran Mining, SnipGold (acquired by Seabridge

Gold), and Aurcana Corporation

▪ Former VP Finance for Endeavor Financial, Controller for

Endeavor Mining, and auditor for Deloitte’s mining practice

Scott Petsel, PGeo – Vice President, Exploration

▪ Over 30 years of experience in global exploration, mine

geology, project management and advancement

▪ Former Project Mgr, Ambler & Bornite projects, NovaCopper

(now Trilogy Metals), Exploration Mgr, Galore Creek project

and Sr Geologist, Donlin Gold project, NovaGold

▪ Sr Exploration positions with Placer Dome (now Barrick) &

Echo Bay (now Kinross) in North America and internationally

Susan Craig, P.Geo – Advisor, Govt. & Community Relations

▪ Over 25 years experience on Yukon and BC based projects

from exploration to development, operations and closure, with

a focus on permitting, First Nations and Government relations

▪ On Environmental team for Galore Creek project (NovaGold)

& Brewery Creek mine (Viceroy Resources)

▪ Current Director of Yukon Energy Corporation, Yukon Mineral

Advisory Board and President of Yukon Chamber of Mines

Chris Ackerman, LLB – Sr. Mgr Corp Communications & IR

▪ Corp. Comms / IR – Group Ten Metals

▪ Former Sr. Business Development Advisor – Yukon Gov’t

▪ Former Mgr Corp. Communications - Wellgreen Platinum


MANAGEMENT TEAM & BOARD OF DIRECTORS

Greg Johnson, PGeo - CEO & Chairman

Gregor Hamilton - Director

Bill Harris - Director

Stephen Pearce, LLB - Director

Tim Thiessen, BA, CA – CFO

Scott Petsel, PGeo. – VP Exploration

Susan Craig – Advisor Gov’t/Community Relations

Chris Ackerman, LLB – Mgr Communications

Debbie James – Exploration Manager

Industry Veterans with Northern Expertise


YUKON TERRITORY- MAJORS MOVING INThe world’s best mining jurisdiction attracts the world’s best miners

oAdditionally, Kinross also holds an 11% interest in Victoria Gold Corp., as well as having purchased the White Gold project in 2010 for $139 million.

o May 2016, Goldcorp acquisition of Kaminak Gold - $520 million

o June 2016, Goldcorp acquires 19.9% stake in Independence Gold - $2 million

o March 2017, Goldcorp acquires 19.9% stake in Triumph Gold - $6,272,640

o Dec. 2016, Agnico Eagle acquires 19.3% stake in White Gold Corp. - $14.52M

o March 2017, Coeur invests in Rockhaven Resources - $2,675,000

o March 2017, Newmont signs earn-in agreement with Goldstrike - $53M

o April 2017, Barrick invests in ATAC Resources (9.2% with potential for 19.9%) –

up to $63 million

• Canada ranked #1 jurisdiction by Behre Dohlbear

• Yukon ranked 4th in Canada by the Fraser

Institute

• Over US$600 million to be invested into Yukon

mining exploration starting in 2016


Source: Cathro, R.J. 2006, Great Mining Camps of Canada 1.The History and Geology of the Keno Hill Silver Camp, Yukon Territory, Geoscience Canada, v. 33, p. 103-1Alexco PEA Average Metal Price and Discount Rate Assumptions: Ag USD/oz $18.60 initially and $19.35 long term, Zn USD/lb $1.07, Pb USD/lb $0.97, Au USD/oz $1,300, 5% Discount Rate; AISC calculated on a produced (contained) basis net of by‐products, as defined by the World Gold Council

11

KENO SILVER PROJECT OVERVIEW

▪ Large, brownfields land position covering 166 km2 in the eastern & southern portions of the Keno silver district

▪ Excellent access infrastructure via existing highways and well-maintained all-weather roads, existing grid power

supplying nearby Keno City & Alexco operations

▪ Adjacent to Alexco Resource Corp’s operations, which host >67 Mozs Ag (M&I) with LOM production grades

exceeding 840 gram/tonne silver or ~1,200 g/t silver equivalent value with lead and zinc

▪ 10 of the 12 known productive mineralized trends continue onto Metallic Minerals holdings in preferred host

rocks, with historic production from 8 mines, including 5 with average recovered grades above 5,000 g/t

▪ Eastern portion of the district has been under-explored due to fragmented, private land ownership, but now

consolidated under Metallic Minerals

Brownfields Exploration in One of the World’s Highest Grade Ag Districts

TSX-V: MMG | US OTC: MMNGF 12

▪ 100% owned Keno Silver Project located in

Canada’s mining-friendly Yukon Territory

▪ Existing road access along Yukon highway 11

and 2 connecting to deep sea port facilities in

Skagway, Alaska

▪ Grid power from Yukon Energy Corp hydro

facility on Mayo River

▪ Project in traditional territory of Nacho Nyak Dun

First Nation, who have Comprehensive

Cooperation and Benefits Agreements in place

on mining projects in the region

▪ Nearby communities of Keno City and Mayo

KENO SILVER PROJECT LOCATION & INFRASTRUCTUREExcellent access and power infrastructure in place

YUKON


KENO AREA REGIONAL CLAIMS MAP

13

Highly-prospective projects in an active region for exploration

Keno Hill

Mill Complex

McKay Hill Project

Keno Silver Project

TSX-V: MMG | US OTC: MMNGFTSX-V: MMG | US OTC: MMNGF

Source Alexco Resource Corp: 1. Alexco Announces Positive Preliminary Economic Assessment for Expanded Silver Production at Keno Hill, March 2017

2. Alexco Resource Corp. presentation November 2017

PHASE 01

We’re determined to enhance your

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PHASE 02




PHASE 03




Years

1 - 3

Years

1 – 8 (LOM)

Mining Period

931 g/t Ag

843 g/t Ag

Avg. Silver

Grade

4.1M ozs

3.5M ozs

Avg. Annual

Production

Initial Capex

$27M

IRR

72%

Capex and IRR

5.9M AgEq ozs

5.2M AgEq ozs

Avg. Annual

Production AgEq

KENO HILL MINE AND ECONOMICS2017 Alexco Resource Corp. Keno Hill PEA1

Keno Hill Mill Complex

14


0

200

400

600

800

1000

1200

1400Pb

Zn

Au

Ag

15

KENO HILL GRADES VS. GLOBAL SILVER MINESOne of the world’s highest grade silver districts in a low risk jurisdiction

Ag

Eq

gra

ms/to

nn

e

Source: Company public disclosures as of May 2017: P&P reserves assuming 100% recovery or most recent technical report production grades

Avg. silver grade: 300 g/t Ag

BoliviaCanada / USA ArgentinaChinaMexico / Peru /

Guatemala

Political RiskLow High

Keno Hill Silver District - Yukon, Canada

Highest silver grade and 2nd highest total silver equivalent grade

Avg. silver equivalent grade: 500 g/t AgEq

AgEq. Calculated using: $16/oz Ag; $1200/oz Au; $1/lb Pb and Zn


Image Source: Alexco Resources – Iles 2017

16

KENO STYLE MINERALIZATION

• Keno style high-grade silver veins occur along persistent parallel structural trends, forming major ore

shoots in the two main quartzite and greenstone host rocks

• Typical mineralization is 1-5 metres in width, grading from 200 g/t to over 5,000 g/t silver with associated

lead and zinc sulphides with ~75% of the value as silver

• Individual deposits in the district range from 10 million to 100 million ounces of contained silver

High-Grade Silver, Lead and Zinc Vein Systems

Second-Phase FoldingBellekeno Mine

Keno Hill Quartzite

Keno Hill Quartzite

High-grade Ag-Pb-Zn Vein


KENO HILL SILVER DISTRICT GEOLOGY & DEPOSITS

17

35 historic mines produced ~200 Moz Ag with 90 Moz in current resources

Historic Production Ag oz/t Ag g/t

Duncan 744.3 25,455

Vanguard 305.8 10,458

Caribou Hill 177.1 6,057

Silver Basin 167.8 5,739

Formo (Yukeno) 148.9 5,092

Cobalt Hill 65 2,223

Major Historic Producing Mines

Recent Discoveries/Current Resources

MMG Historic Producing Mines

12 Known Mineralized Trends

10 of which traverse MMG land

MMG

Onek

Bermingham Trend (140 Moz)

Bellekeno Trend (25 Moz)

Homestake Trend

Elsa Trend (35 Moz)

Keno

Mill Complex

Cobalt Hill

Formo

Homestake

Caribou Hill

Vanguard

Faith

Duncan

Silver Basin

UKHM

McMillan

Fox

BellekenoBermingham

Flame & Moth

Silver King

Husky

Hector Calumet

No Cash

Elsa

Sadie Ladue

Galkeno

Lucky Queen

Silver Queen

Keno Hill

Husky Trend (35 Moz)

Avenue

Divide

Flame & Moth Trend (50 Moz)


Galkeno4.5 Moz 1

Hector-Calumet96.2 Moz 1 Sadie Ladue

Bluebird 12.7 Moz1

WerneckeKlondike Keno

Vancouver

3.5 Moz past production 1

17.3 Moz indicated 2

5.5 Moz inferred 2

18

500 m

1. Historic Production data from CATHRO, R.J., 2006. Great mining camps of Canada 1. The history and Geology of the Keno Hill Silver Camp, Yukon Territory, Geoscience Canada Volume 33 2. Alexco News Release: Alexco Expands Bermingham Indicated Resource to 17 Million Ounces Silver, Remains Open (January 3, 2017).

Past Production

Target Areas

Reserves/Resources

Sourdough Quartzite

Keno Hill Quartzite

Qtz-Sericite Schists

Earn Group Schists

Triassic Greenstones

Key Host Rocks for Keno Type High-Grade Silver Deposits

Modified from Alexco Resource Corp.

SW

Keno Hill Silver District Schematic SectionGeology/Deposit View Along Trend of Alexco’s Bermingham Discovery

▪ Bermingham is a major new high-grade silver discovery by Alexco in the Keno Hill silver district

▪ Deposit remains open to expansion at depth and along trend, with direct shipping ore grades

▪ Discovery demonstrates the potential for major new finds along trend and down dip from past producing

mines in this prolific, historic district

▪ Lesser-explored parts of the district, particularly to the east, have similar geologic settings for potential

new discoveries

Bermingham Trend (140 Million Ounces)Bermingham NE


Sourdough Quartzite

Keno Hill Quartzite


Earn Group Schists



Galkeno4.5 Moz 1

NEHector-Calumet

96.2 Moz 1 Sadie LadueBluebird 12.7 Moz

1Wernecke

Klondike Keno

Vancouver


17.3 Moz indicated 2

5.5 Moz inferred 2

19

500 m

1. Historic Production data from CATHRO, R.J., 2006. Great mining camps of Canada 1. The history and Geology of the Keno Hill Silver Camp, Yukon Territory, Geoscience Canada Vol. 33 2. Alexco News Release: Alexco Expands Bermingham Indicated Resource to 17 Million Ounces Silver, Remains Open (January 3, 2017).


SW

Keno Hill Silver District Schematic SectionGeology/Deposit View Along Bermingham Discovery and Elsa Trend

Bermingham Trend (140 Million Ounces)Bermingham

Elsa Trend (35 Million Ounces)

Elsa30.2 Moz 1

Silver QueenDixie

No Cash4.9 Moz 1 Formo

Significant MMG targets in preferred host rocks

Past Production

Target Areas

Reserves/Resources


Keno Hill Silver District Schematic Sections

20

500 m


Target Rich Environment for New Discoveries on Known Mineralized Trends



Past Production

Target Areas

Reserves/Resources

Sourdough Quartzite

Keno Hill Quartzite


Earn Group Schists



Flame & Moth - Lucky Queen Trend (50 Moz Ounces)

Onek – Keno Summit Trend (10 Million Ounces)SWNE

Bounty

OnekDorothy

Keno City

1.3 Moz past production1

4.3 Moz Indicated2

1.1 Moz Inferred2

Gambler

Shamrock1 Moz past production1 Avenue

Greenstones

Duncan Creek

Flame & Moth

Lucky QueenBlackcap

Stone

Cub & Bunny

SW NE

Croesus 29 Koz Past Production1

26.9 Moz Indicated2

4.2 Moz Inferred2

11.0 Moz Past Production1

5.0 Moz Indicated2

3.9 Moz Inferred21.3 Moz Past Production1

Keno

Mill Complex Duncan Creek

AvenueGreenstones


Keno Hill Silver District Schematic Sections

21


Target Rich Environment for New Discoveries on Known Mineralized Trends



Sourdough Quartzite

Keno Hill Quartzite


Earn Group Schists



BeauvetteDevon

Divide CaribouHomestake Avenue

Bellekeno

Runer

VanguardApex

Gold Hill Silver Basin

AvenueGreenstones


4.9 Moz Indicated 2

5.5 Moz Inferred 2

SW

BeauvetteGreenstones

500 m

Bellekeno – Keno Summit Trend (25 Million Ounces)

Homestake – Keno Summit Trend

NEKeno Hill12.6 Moz 1

Past Production

Duncan

Past Production

Target Areas

Reserves/Resources


KENO SILVER PROJECT – PRIORITY TARGET AREASWestern District – Priority for follow up in 2018

Silver King11 Moz

Production5.4 Moz

Resource

Bermingham3.8 Moz

Production22.8 MozResource

Flame & Moth

31 MozResource

Bellekeno1.7 Moz


Lucky Queen11 Moz

Production7.6 Moz

Resource Keno Hill12.7 Moz

Production

Formo

Silver

Queen

Homestake

Duncan

Creek

DuncanCaribou

Faith

Hector Calumet96.2 Moz

Production

OnekHusky

Sadie Ladue

Galkeno

Silver Basin

No Cash

Elsa30.1 Moz

Production

Resource Delineation

1st Stage Drill Targets

Target Definition Stage

Vanguard

Bermingham Trend

(140 Moz)

Bellekeno Trend

(25 Moz)

Homestake

Trend

Elsa Trend

(35 Moz)

Husky Trend

(35 Moz)

Flame & Moth

Trend (50 Moz)

Major Historic Producing Mines

Recent Discoveries/Current Mines

MMG Historic Producer

Onek Trend

10 Moz

Galena Hill

Keno

Mill Complex

Gold Hill


Keno Summit

Gram

Bounty

Cobalt Hill

Homestake

UKHM

Caribou

Avenue

Divide Faith

Duncan

Silver Basin

Gold Hill

McMillan

Vanguard

Comstock

Beauvette

23

KENO SILVER PROJECT – PRIORITY TARGET AREASEastern District – Priorities for follow up in 2018

Lucky Queen11 Moz

Production7.6 Moz

Resource

Keno Hill12.7 Moz

Production

Resource Delineation

1st Stage Drill Targets

Target Definition Stage

Bellekeno1.7 Moz


Onek Trend

(10 Moz)

Bellekeno Trend

(25 Moz)Homestake

Trend

Flame & Moth

Trend (50 Moz)

East Keno


2000 m

Caribou Hill

Caribou VeinDuncan Vein

Monument Hill

Gold Hill, Duncan and Caribou Veins and Projected StructuresCross Sections Looking North

Gold Hill Vein

1000 m

KENO SILVER PROJECT – RESOURCE DELINEATION TARGETS

Keno Summit Area: Caribou, Duncan and Gold Hill Cross Section

Keno Summit Area

24

Target Area



High-grade results at Caribou Target Open to Expansion

* Further results from 2017 field exploration program pending

Hole From (m) To (m) width (m) Ag g/t Pb % Zn % Au g/t Ag EQ g/t

08CH005 35.00 35.50 0.50 1046 3.39 1.44 0.77 1,343

CH11-007 14.60 18.50 4.10 314.8 27.8 0.53 0.17 1,667

Including 14.60 15.80 1.3 94.3 85.56 0.01 0.23 4,146

CH11-008 14.80 15.50 0.7 493 10.49 0.93 0.4 1069

CH11-009 15.50 16.90 1.4 1,696.3 9.42 0.94 0.85 2,257

CH11-017 22.90 23.40 0.50 1,610.8 16.83 1.16 1.26 2,565

CH11-018 24.10 25.00 0.90 1,151 7.16 1.03 0.05 1,548

CH17-021 39.35 42.0 2.65 407 3.39 6.35 0.834 972

Including 39.35 39.80 0.45 1,607 15.47 1.70 0.759 2,487

CH17-023 40.7 42.3 1.6 1,405 25.98 3.72 0.282 2,851

Including 40.70 41.50 0.80 2,408 47.30 4.69 0.108 4,898

CH17-026 49.90 50.85 0.95 104 1.55 9.76 1.641 828

*Intercepts are actual drill results and believed to represent true thickness

08CH001

08CH002

08CH003

08CH004

08CH005

08CH006

08RCH002

08RCH003CH11-007

CH11-008

CH11-009 CH11-010

CH11-011

CH11-012

CH11-013

CH11-014

CH11-015

CH11-016CH11-017

CH11-018

CH11-019

CH11-020

CH17-021

CH17-023

CH17-024

CH17-025

CH17-026

CH17-027

TR-05aTR-05bTR-06a TR-06b

TR-08bTR-08f

TR-08i

TR-08j

TR-08k

TR-08n

TR-11bTR-11d

TR-11fTR-11h TR-11i

TR-11j

TR-11l

TR-11m

N7090860 N7090880 N7090900 N7090920 N7090940 N7090960 N7090980 N7091000 N7091020 N7091040 N7091060 N7091080 N7091100 N7091120 N7091140 N7091160 N7091180 N7091200 N7091220 N7091240

1680 El

1700 El

1720 El

1740 El

1760 El

1780 El

1800 El

1820 El

Caribou HillCaribou Vein Long Section

Looking West (34° dip / 110° dip-direction)

0 – 300 g/t301 – 800 g/t> 800 g/t

Ag Equivalent Grade Contours

Open

OpenOpen

CH17-025

CH17-021

CH17-027

CH17-026CH17-024

CH17-023

2017 Drill Intercept

m




m

Convergence Target


Homestake Plan Map with Intercept Grades


Homestake Target Long Sections for #1 and #2 Structures



m



Homestake No. 1 and No. 2 Veins(Looking West)

1300m

1200m

1100m

1000m

No. 1 VeinNo. 2 Vein

Homestake Target Cross SectionKENO SILVER PROJECT – RESOURCE DELINEATION TARGETS

Open along strike and at depth

High-grade results at Homestake Targets Open to Expansion

28



High-grade results from the Homestake target areas


Highlighted Drill Results from the Homestake #1 and #2 Vein Structures

Hole Vein # From (m) To (m) Width (m) Ag g/t Pb % Zn % Au g/t Ag Eq g/t

HS17-024 HS2 31.86 33.14 1.28 8 0.11 0.15 2.460 214

Including 32.69 33.14 0.45 16 0.18 0.12 6.600 547

HS17-027 HS1 74.64 75.60 0.96 207 3.62 0.09 0.002 383

Including 74.64 75.13 0.49 364 6.30 0.06 0.004 665

And 76.48 77.50 1.02 569 1.02 0.03 0.010 620

HS10-001 HS2 47.30 50.10 2.80 59 0.81 0.37 2.500 312

Including 48.75 50.10 1.35 71 1.00 0.61 4.840 530

HS10-006 HS2 73.15 74.91 1.76 522 0.47 0.25 0.030 560

Including 73.15 73.37 0.22 4027 1.00 0.65 0.170 4122

HS10-009 HS2 32.38 34.99 2.61 110 0.49 0.06 1.510 253

Including 33.35 34.09 0.74 359 1.00 0.02 4.880 789

08HS004A HS1 79.80 80.60 0.80 24 1.01 0.74 1.510 229

Including 79.80 80.10 0.30 63 2.67 0.76 3.910 535

08HS009 HS2 40.50 42.70 2.20 37 1.30 0.38 1.150 209

Including 40.50 40.90 0.40 98 4.29 0.83 3.300 603

And 43.70 45.00 1.30 109 4.10 0.04 2.000 461

Including 43.70 44.10 0.40 232 6.43 0.10 1.320 644

Trench Vein # Length (m) Ag g/t Pb % Zn % Au g/t Ag Eq g/t

HS_TR4_b HS1 0.7 1155 6.27 10.10 0.300 2015

HS_TR4_d HS1 1.3 520 5.28 1.28 0.270 858

Including HS1 0.3 1592 22.70 0.90 0.630 2759

HS_TR4_p2 HS1 2.0 1564 12.95 6.11 0.310 2525

HS_TR4_p3 HS1 3.0 1650 15.23 0.49 0.240 2413

Including HS1 0.8 4717 26.00 0.80 0.700 6040

HS_Shaft_B HS1 0.9 3168 0.15 2.60 4.670 3679

HS_TR1_g HS2 1.5 95 3.48 0.32 6.070 751

Including HS2 0.4 332 13.00 0.60 22.100 2704

HS_TR5_b HS2 2.8 147 6.74 0.10 10.160 1264

Including HS2 1.2 171 7.09 0.10 17.900 1909

Including HS2 0.6 340 17.20 0.10 10.000 1937

Highlighted Trenching Results from the Homestake #1 and #2 Vein Structures


Formo Target - past high-grade producer with historic resource estimate

KENO SILVER PROJECT – DRILL READY TARGETS

• The Formo (Yukeno) veins were high-grade historic producers hosted with Keno style veins

developed within greenstones and associated with the Elsa and Calumet trend structures

• An historic resource estimate on Formo totaled ~44,000 tons grading 548.6 g/t silver 6.9% lead

and 10.7% zinc

• Prior work on the project includes 1,219 meters of underground development on three levels

1,988 metres of core drilling, 2,647m of percussion drilling, trenching and a EM survey

• 6 core holes and 54 percussion holes were drilled in 1980-1981, with the best intersection from

the core drilling showing 4958 g/t Ag, 57% Pb and 10.7% Zn with a separate gold intercept

grading 17.1 g/t Au.

• A limited sampling program conducted in 2008 to confirm reported historic mineralization

returned values up to 3,025 g/t silver, 19.5% lead and up to 39.8% zinc

• Metallic is completing data compilation and geolgic modeling at Formo for its 2018 exploration

program


Formo VeinLooking North

900m

800m

700m

Formo Target Area Cross SectionKENO SILVER PROJECT – DRILL READY TARGETS

Open along strike and at depth


Metallic Minerals is focused on identifying and rapidly advancing the most prospective targets toward

resource definition

Plans for 2018 are to undertake a robust drill-focused program

Exploration at the Keno Silver Project for 2018 will focus on three stages of targets as a priority:

• Resource Delineation-Stage Targets – A top priority will be expansion drilling at the 3 resource

delineation stage targets - Caribou, Homestake and the recently acquired Formo deposit

• Advanced Surface Targets – Our second priority will be 1st stage drill testing at up to 6 advanced

stage surface targets - Gold Hill, Bounty, Duncan, Silver Basin, Vanguard and Silver Queen

• Early Stage Targets – Follow up work on 20 prioritized early stage targets - work to include detailed

stratigraphic mapping, drone-based geophysics, soil sampling and trenching in the less explored

eastern and southern parts of Keno district

Data compilation and development of an interactive 3D geologic model for the district

Additional potential acquisitions in the district being reviewed

32

KENO SILVER PROJECT – NEXT STEPS2018 field season expected to commence early June


Mine development infrastructure in place:

▪ Existing road and highway access along Yukon highway 11 and 2

▪ Concentrate handling facilities in place at year-around ice free port in Skagway, Alaska

▪ Grid power station at Keno City from Yukon Energy Corp hydro facility on Mayo River

▪ Long history of mining in the Keno Silver District with support by First Nation and

Regional Governments

Several options for low cost development :

▪ Direct shipping of high-grade ore to smelters

▪ Toll milling ores at regional mills located in northern BC or Alaska

▪ Processing at Alexco mill on royalty or toll basis

▪ Construction of new stand alone operation with definition of sufficient resource size

33

KENO SILVER PROJECT – PRODUCTION OPTIONALITYLow Capital Cost Development Opportunities


• Modern field work confirmed these historic

high grades of silver, lead and zinc and

demonstrated the presence of significant

associated gold and copper

• 23 samples from 12 of the 16 known vein

structures running greater than 300 g/t

silver, which is the average reserve grade

of global primary silver producers

• ATAC has received approval for tote road

access route into the area

• Exploration program for 2018 underway

and is expected to include mapping,

sampling, and trenching to refine drill

targets

34

MCKAY HILL PROPERTY OVERVIEWAn emerging high-grade silver and gold district

• 50km north of the Keno Silver camp consisting of 129 claims over 35.4km2

• Historic high-grade underground production between 1948-1949 yielded 143 tonnes of

high-grade material, grading 390.8 g/t Ag and 74.1% Pb


MCKAY HILL PROPERTY – EXPLORATIONHighlights of Surface Sampling to Date

• A total of 35 modern and historic samples from 12 of the 16 known vein structures exceed 1,000 g/t AgEq.

• Much of the claim block remains under-explored, including several untested geophysical targets

• 2018 exploration program being developed, including drill target identification and prioritization

Sample Vein Type Ag g/t Au g/t Pb % Zn % Cu % Ag Eq g/t

29887 No. 1 W Grab 502 0.77 46.4 0.47 2.40 3056

526147 No. 2 Grab 608 0.22 35.2 3.50 3.22 2852

526238 No. 6 1.1m Chip 683 0.83 40.5 0.40 0.78 2770

1907517* No. 6 Grab 988 24.4 37.7 3.71 7.97 5812

1907519* No. 6 Grab 742 2.36 40.0 14.72 2.92 3945

MK002 No. 8 Grab 646 16.8 27.0 0.14 0.64 3314

29889 Blackhawk Grab 484 0.9 54.7 3.33 0.53 3374

526243 Central Grab 360 3.3 21.8 10.30 4.10 2680

MK006 Snowdrift Grab 668 15.6 2.4 0.94 3.90 2510

29886 Snowdrift Grab 534 2.49 47.0 0.46 2.16 3225

113852* Independence Grab 706 0.18 77.8 0.38 1.63 4600

526241 North Grab 372 1.84 22.7 7.01 1.96 2194

* 2017 surface sampling


MCKAY HILL PROPERTY – GEOPHYSICSHighlighting Known Mineralization and Identifying New Targets

No. 8 Vein

646 g/t Au

16.8 g/t Ag

Snowdrift Vein

668 g/t Ag

15.65 g/t Au

Blackhawk Vein

551 g/t Ag

Quartz Vein Occurrences

Target areas based

on recognized

geophysical

characteristics


KLONDIKE GOLD DISTRICT - PRODUCTION ROYALTIES

Road accessible and fully-permitted for alluvial gold production

• An estimated 30 million ounces of gold have been produced from the Klondike gold district since its discovery in

1898. Dominion and Australia Creek are tributaries of the Indian River, which is the largest producer in the

Klondike with many larger-scale, open-pit operations producing nearly 50% of the placer gold in the Yukon

• Approximately 2.7 million ounces have been produced on Dominion Creek since its discovery, with mining on

the main Indian River starting in the late 1970s and doubling since 2010 from larger scale operations

• Metallic holds 27 miles (37 km2) of creek & bench mining rights along highly-productive Indian River drainage


AUSTRALIA & DOMINION CREEKS - OVERVIEW

Large, land position for building a portfolio of production royalties

• Metallic will receive a 15% production royalty on its 1 mile of Dominion Creek holdings and a 12%

production royalty from a 2 mile portion of lower Australia Creek from experienced alluvial mining operators

• Mining equipment has been mobilized to the sites to commence test work in September for the remainder

of the 2017 northern field season, decisions regarding production are expected in early 2018

• Despite broad mining activity nearby on Dominion Creek and the Indian River, Australia Creek was never

historically mined due to its use for water supply and hydro-power by Yukon Consolidated Gold Company

to support their gold dredging operations

• Australia Creek and its benches that extend 1-2 km have comparable thick gravel units to the large scale

open pit mines downstream on the Indian River that are being actively mined

• These first two production royalty agreements cover a fraction of the total MMG holdings in the district and

additional royalties are anticipated with other operators on the remaining 24 miles (33.6 km2) in the future


CAPITAL STRUCTURE

Share Structure as of June 2018

Management / Director Ownership ~25% (Fully Diluted)

Relative Share Performance

Contact Information

SLV – Silver ETF Price

MMG.V – Metallic Minerals

GDXJ –Junior Gold Miners ETF

Share Structure

Issued & Outstanding 56.2 million

Options (Avg. Ex. Price: $0.38) 5.5 million

Warrants (Avg. Ex. Price $0.15) 20.6 million

Fully Diluted 82.4 million

Market Capitalization $24.5 million

In the Money Warrants/Options $1.8 million

Cash on Hand $1.7 million

Key Milestones:

• 2017 acquisitions nearly triple Keno silver district land position to 166 km2

• Klondike Gold District acquisition and first royalty agreements announced Sept. 2017

• 2017 Keno Silver Project field program initiated May with drilling beginning September

• 2017 McKay Hill project field exploration season results released October 2017

• First alluvial gold royalty payment received November 2017

• First results from Keno Silver Project show new discoveries at Keno Summit targets

• Drill results from Caribou and Homestake targets released December 2017

• $1.35 million flow-through financing completed December 2017

• 2018 exploration program commenced early June

Management & Board

25%

Institutions11%

High Net Worth30%

Retail34%


$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

Global Primary Silver Explorers & DevelopersComparison by Market Capitalization

Source: Company disclosures and market data as of July 17, 2018

Market Cap

(millions)

Avg. Market Cap* ~$43 Million


GOLD:SILVER RATIOKey Indicator In Historic Upper Range

40 & 20 year avg ratio: 62

Spot Prices | Gold: $1320 | Silver: $16.50 | Gold:Silver Ratio ~80 Upper 90th Percentile

2018?

Significant peaks in the Gold:Silver Ratio often mark key turning points upward for Gold and Silver


Silver Supply & Demand Fundamentals

42

0

200

400

600

800

1000

1200

Industrial Applications Photography

Photovoltaic Jewellery + Silverware

Investment & Coins

0

200

400

600

800

1000

1200

Mine Supply*

Recycling

*net of official sector and hedging

6% total

supply

fall since

2010

Mil

lio

ns o

f O

un

ce

s

+14% total

demand growth

World Silver Supply World Silver Demand

Continued Total Supply Deficits Support Potential Increase in Prices

• Mine supply +10% since 2007, total supply falling since 2010

• Recycling has fallen 40% from 2011 peak

• Silver market deficit grew to 147.5Moz in 2016 per Thomson

Reuters GFMS; 2017 total demand declined due to reduction in

investment demand declined

• CPM Group forecast 2018 silver price average of $17.75

• CPM Group forecasts Gold:Silver ratio of 72 in 2018; well

above historical average of 56

• Historic market deficits expected to resume

• Photovoltaic (solar panel) use projected to continue growth


NOVAGOLD CASE STUDY

Example of Potential Value Creation Through Discovery, Resource Expansion and Project Advancement

During a Precious and Base Metal Bull Market Cycle

1999 to 2001

Gold Cycle Low

Acquisition of

Donlin Au Project

Expansion of Donlin

Au Resource

Expansion of Donlin

Au Resource

Acquisition of Galore

Cu-Au Project

Drilling Begins at

Donlin Project

Drilling Begins

at Donlin Project

Drilling Begins

at Galore Project

2001 to 2003

Copper Cycle Low

2001 to 2007 Cycle Performance:

NovaGold $0.20 to $20/sh 100x

HUI Index $36 to $380/sh 10x

Copper $0.61 to $3.80/lb 6x

Gold $254/oz to $711/oz 3x

NovaGold Resources TSX: NG April 2000 to April 2007

Expansion of Galore

Cu-Au Resource

Galore

PEA

Donlin

PEA

Expansion of Galore

Cu-Au Resource

Drilling Begins

at Galore Project

Galore

PFS

Barrick

Launches

Take Over

Bid for

NovaGold

Barrick Assumes

Management of

Donlin JV

Tahltan

Participation

Agreement

Signed

Galore

Feasibility

and

Permitting

Initiated


Corporate Head Office:

904 – 409 Granville Street - Vancouver, BC V6C 1T2

Phone: 604-629-7800

Toll Free: 888-570-4420

Yukon Office:

3151C Third Ave. - Whitehorse, YT - Y1A 1G1

PO Box 31215 Whitehorse, YT - Y1A 5P7

Email: [email protected]

www.metallic-minerals.com44

CONTACT INFORMATION

mailto:[email protected]


WWW.METALLIC-MINERALS.COM

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H -GRADE SILVER, L Z C Y T · 2018-08-03 · TSX-V: MMG | US OTC: MMNGF 3 THE METALLIC GROUP OF...

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