PRECIOUS MINERALS EXPLORER & DEVELOPER samples processed, 117 contained ‘picked’ kimberlite...
Transcript of PRECIOUS MINERALS EXPLORER & DEVELOPER samples processed, 117 contained ‘picked’ kimberlite...
September 2017
PRECIOUS MINERALS EXPLORER & DEVELOPER
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Forward Looking Statements
Certain statements and/or graphics in the Company’s press releases, web site information and corporate displays, among others, constitute
“forward-looking statements”. These statements are based on information currently available to the Company and the Company provides no
assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements that describe
the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or
result to occur. Forward-looking statements may be identified by terms such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”,
“would”, “will”, or “plan”, or their conditional or future forms. Since forward-looking statements are based on assumptions and address future
events and conditions, by their very nature they involve inherent risks and uncertainties.
Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company’s
mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such
statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and
prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and
operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this presentation. This list is
not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered
carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to
update any forward looking statement that may be made from time to time by the Company or on its behalf, except if required to do so by
applicable securities laws. You are cautioned not to place any undue reliance on any forward-looking statement.
Forward-looking statements or information related to Exploration.
Relating to exploration, the identification of exploration targets and any implied future investigation of such targets on the basis of specific
geological, geochemical and geophysical evidence or trends are future-looking and subject to a variety of possible outcomes which may or may
not include the discovery, or extension, or termination of mineralization. Further, areas around known mineralized intersections or surface
showings may be marked by wording such as “open”, “untested”, “possible extension” or “exploration potential” or by symbols such as “?”. Such
wording or symbols should not be construed as a certainty that mineralization continues or that the character of mineralization (e.g. grade or
thickness) will remain consistent from a known and measured data point. The key risks related to exploration in general are that chances of
identifying economical reserves are extremely small.
The presentation contains historical exploration data that have not been verified by Crystal Exploration Inc. and may not be accurate or
complete, and therefore the information should not be relied upon.
The technical content of this presentation have been reviewed and approved by Dean Besserer, P.Geol., the Technical Advisor of the Company
and a Qualified Person as defined by National Instrument 43-101.
DISCLAIMER
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INTRODUCTION
Crystal Exploration Inc.
• 100% owned projects with no earn-in requirements
• TSXV: ‘CEI’, 37 million shares outstanding, no debt
• Gold (high-grade) and diamonds (gemstone quality) located in the
same land package
• Advanced projects surrounding an existing gold mine and diamond
mine
• Projects located in a proven jurisdiction - Nunavut, Canada
• Experienced management with a track record of success in the
exploration, discovery, development and financing of mining assets
Gold Project
• 100% owned Contwoyto Gold Project, no earn-in
• Historical high-grade gold intersections:
63g/t gold over 4.86 meters (Cominco, DDH87-13)
35.19g/t gold over 3.6 meters (Echo Bay, DDHS3-84)
• Established gold zones, explored 30 years ago using a 5g/t gold
cutoff
• Drill ready gold targets
• Located adjacent to the Lupin Gold Mine
Diamond Projects
• 100% owned diamond projects on over 1,200km2, no earn-in
• 2.7 carat & 1.6 carat gemstones recovered
• New drill ready diamond discovery targets
• Located adjacent to the Jericho Diamond Mine
Lupin Gold Mine
Sabina Gold Project
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Shares O/S:
Options O/S ($0.12 Avg):
Warrants O/S ($0.17 Avg):
Treasury (July, 2017):
Market Capitalization (July, 2017)
Management & Affiliates:
30%
Management
10%
Affiliates
60%
Private/Retail
CAPITAL STRUCTURE
37,252,472
2,450,000
7,844,500
$600,000
$4,500,000
~40%
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TEAM VALUE: MINERAL EXPLORATION EXPERTS
Crystal Management Team
Jim Greig, MBA, BA Geog, President & CEO, Director
20 years mining experience
Project Management
Exploration, development to production expertise
Formerly: Asanko Gold, Auryn Resources (director), Breakwater Resources, Stantec Mining, HDI Group
John Eren, HBA Economics, Director of Corporate Development
15 years capital markets & resource sector professional
Formerly: Eurasian Business Development at Auryn Resources, VP of IR at Asanko Gold, Manager IR Cayden Resources
Toby Pierce, MBA , Geol, Director
20 years resource sector experience
Finance & Operational Professional
CEO at Tag Oil Ltd.
12 years Investment Banking
Sean Mager, B. Com, Director
Nunavut mining success
20 years mining experience
Finance, governance & strategy
Formerly: North Country Gold, Brilliant Resources
Shawn Burns, MBA, ‘Green’ CPA
Environmental, Social & Governance (ESG) Advisor
International permitting experience
Specialist in resource company sustainability
Cooperative First Nations Business Agreements
Denise Lockett
Stakeholder Relations Manager
25 years experience in government, regulatory
& community relations
Specialist in corporate responsibility
Crystal Community & Environment Team
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TEAM VALUE: DIAMOND AND MINERAL EXPLORATION EXPERTS
Apex Geoscience Partnership - exploration professionals with Crystal equity ownership
Crystal Technical Team
Dean Besserer, P. Geol, Technical Advisor
20 years mining experience
Managed major exploration campaigns
Former engagements: Apex Geoscience Partner, Stornoway Diamonds, North Country Gold, Indicator Minerals
Roy Eccles, M.Sc & P.Geol, Geological Consultant
26 years mining experience
Expert managing major exploration & development projects
Anetta Banas, M.Sc & P.Geol, Geological Consultant
16 years experience
Data interpretation & analysis
Evaluation of kimberlite pipes & diamonds
Michael Dufresne, M.Sc,& P.Geol, Director
25 years mining experience
Expert managing major exploration & development projects
Apex Geoscience, Principal / Sr Partner
Kris Raffle, P.Geol, Geological Consultant
16 years mining experience
Expert managing exploration programs and authoring technical reports
Evaluation of over 40 kimberlite bodies across North America
Consulting Geologists
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EXPERIENCED TEAM
✓ Global exploration, development & production experience
✓ Broad range of commodities & deposit types
✓ In-house technical team supported by solid project management
✓ Success through the discovery, development and production cycle
Global jurisdictions with operational experience
Selected work
engagements include:
• DeBeers
• BHP Billiton
• Stornoway Diamonds
• Asanko Gold
• Vale
• Xtrata
• HudBay Minerals
• Shear Minerals
• Auryn Resources
• Breakwater Resources
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DIAMOND & GOLD CORRELATION
Gold & diamond growth potential
Strongly linked commodities
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GOLD & DIAMOND INFRASTRUCTURE IN PLACE
Contwoyto Gold & Diamond Property• Multiple gold occurrences • Gold resource potential• Synergies with Lupin Gold Mine• 2 x diamond targets
Hood Property• Diamond target• Kimberlite dyke
Muskox Property• Diamond bearing kimberlite pipe• 3 x diamond targets• 14km to Jericho Mine
Nunavut, Canada• Proven jurisdiction• Settled land claims with
Inuit people• Successful operating gold
mines• Agnico Eagle Mines
committing $1.2 billion to development
• TMAC Resources, gold production start in 2017
• Large mineral development projects
Grays Port & Road• Proposed all season
road• Logistical
improvements to lower access and costs
• Road connects through ALL Crystal projects
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CONTWOYTO GOLD PROJECT
High-Grade Gold Project
Located near the Lupin Gold Mine, past producer of
>3.3 million gold oz at 9 g/t gold average grade
Historical work from 1980’s & 1990’s during a period of
higher hurdle rates
At surface mineralization on four gold occurrences
Open at depth, strike and width with new zone potential
Historical work applied at a 5 g/t gold cut-off grade
Potential for new BIF hosted gold discoveries
Opportunities through new exploration techniques
Significant historical drill intersections include:
DDH 87-13, 4.86m at 63.09g/t gold (Cominco Ltd.)
DDH 93-01, 4.55m at 20.11g/t gold (Echo Bay Mines)
DDH 94-11, 5.55m at 12.70g/t gold (Echo Bay Mines)
DDH 95-05, 7.70m at 11.78g/t gold (Echo Bay Mines)
Historical work at shallow depths near surface
Potential for significant gold ounces
Validation & step-out drilling during Q3/Q4, 2017
Note: Historical results at Contwoyto Gold were reported by Echo Bay Mines and
available at www.sedar.com. The technical content of this presentation have been
reviewed and approved by Dean Besserer, P.Geol., the Technical Advisor of the
Company and a Qualified Person as defined by National Instrument 43-101.
Elevated KIMs
Lupin Gold MineSabina Gold Project
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Mine
Showings
Winter Road
Crystal Lease
Crystal Claim
Lupin Mines Inc.
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CONTWOYTO GOLD PROJECT
Elevated KIMs
Fin 1 – Mining ClaimHistorical Intersections
F94-01: 5.26m @ 5.25g/t goldF93-12: 3.05m @ 11.58g/t goldF5-84: 20.36 @ 2.21g/t gold
Dune – Mining LeaseHistorical Intersections
DH87-13: 4.86m @ 63.09 g/t goldDH94-11: 5.55m @ 12.79 g/t gold
Fin 4 – Mining ClaimHistorical Intersections
DDH-S3-84: 3.6m @ 35.19g/t gold
Pan – Mining LeaseHistorical Intersections:
DH-P2-83: 3.5m @ 7.36 g/t gold
Lupin Gold Mine• All infrastructure in place• Mandalay Resources owned• Past producer of 3.3M gold ounces at 9g/t gold
Exploration Program• Ground geophysics to
identify gold zones• Validation drilling• New zone drilling• Potential to rapidly develop
a maiden resource estimate• Infrastructure in place,
potential gold resources for the Lupin Gold Mine
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MUSKOX DIAMOND PROJECT - RESULTS & WORK TO DATE
Muskox Kimberlite
Dimensions of 200m x 215m, ~4 hectares near surface
Historically drilled 88 holes totalling more than 13,636m
of kimberlite
Largest diamonds include 2.73ct, 2.67ct and 1.61ct
gemstones
2016 sample at 1.14 carats per tonne
Large tonnage opportunity, extends below 300m depth
2017 recovered 0.49ct and 0.40ct gemstones
Geological review, analysis, exploration required
Crystal Diamond Projects
Drill ready diamond targets
Future diamond ore feed to the Jericho Diamond Mine
Opportunities for Joint Ventures
Note: Historical results at Muskox were reported by Tahera Diamonds
Corporation and available at www.sedar.com. The technical content of this
presentation have been reviewed and approved by Dean Besserer, P.Geol., the
Technical Advisor of the Company and a Qualified Person as defined by
National Instrument 43-101.
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NEW DISCOVERY DIAMOND TARGETS
Kimberlite Targets
6 large geophysical anomalies, additional targets to be generated
Elevated Kimberlite Indicator Minerals (KIM)
Diamond indicator pick results
>$50 million spent on historical work
Database generated from De Beers, Kennecott, Ashton Mining, Tahera Diamonds, Lytton Minerals, Canamera
Previous work provides guidance to New Discoveries
146 samples processed, 117 contained ‘picked’ kimberlite indicator minerals (KIM’s)
7,386 KIM’s, chemistry/microprobe analysis in progress
125m
100m
2016 Ground Grid
Total Magnetic Intensity
2005 Resolve Resistivity Anomaly
Geophysical Mag High
Elevated KIMs
Diamond Indicator Pick Results
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CRYSTAL TEAM VALUE PROPOSITION
Crystal Value Proposition
• 100% ownership with no earn-in capital required
• Gold & diamond bearing ground
• Drilling permits granted
• Proven and seasoned resource sector professionals
• Projects with discoveries and new targets
• Joint venture opportunities
• Focused expertise on familiar ground in a proven jurisdiction
• Track record of advancing exploration projects through to production scenarios
• Anti-dilutive share structure with no debt
Exploration Programs
• Q3/Q4, 2017 gold validation & step-out drilling, geophysics
• Q4, 2017 diamond chemistry results
• Q2/Q3, 2018 gold drilling, establish maiden resource estimate
• Q2/Q3, 2018 new diamond discovery target drilling
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MINING SECTOR – CAPITAL INVESTMENT GROWTH
Source: http://cambridgehouse.com
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NEW DISCOVERY TARGETS
Kimberlite Targets
Drill permits granted
High priority, drill ready ‘bullseye’ targets
Geophysical anomalies
Anomalous KIMs
Diamond indicator mineral pick results
Size range from 125m to 225m
Large new diamond discovery potential
Additional targets to be added during 2018
No major economic diamond discoveries in
~15 years, lack of exploration
Geophysical signatures analogous to other
diamond bearing kimberlite pipes:
Contwoyto 1
Muskox
Jericho & Jericho South
Rush kimberlites
Unicorn
Voyageur
Peregrine kimberlites
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DIAMOND FUNDAMENTALS – DEMAND VERSUS SUPPLY
Strong Fundamentals
Prices increasing since 2004
Growth in diamond demand will require
new mines
Rough diamond demand growth is at 4-
5% annualized rate
Demand - supply gap widens
significantly in 2019
Rough diamond demand fuelled by US,
China & India
No major new mines within the last 20
years EXCEPT Canada
Diamond Opportunity
Growing demand
Diamond supply shortfall
Project pipeline deficienciesSource: Bain Consulting 2016
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