A SHIFT IN THE GAME COMMITTED TO CREATING VALUE FOR OUR SHAREHOLDERS - TECT: TSX-V - Tectonic Metals
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A SHIFT IN THE GAME
COMMITTED TO CREATING VALUE FOR OUR SHAREHOLDERS
TECT: TSX-V NOVEMBER 2019
1 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019
FORWARD LOOKING STATEMENT AND NATIONAL INSTRUMENT
43-101 COMPLIANCE
All statements in this presentation, other than statements of historical fact, are "forward-looking statements“ or “forward looking information” with respect to Tectonic Metals Inc. (the “Company”) within the meaning of applicable securities laws, including statements that address pro forma
capitalization tables, the size and use of proceeds of any proposed financings, the discovery and development of gold deposits, potential size of a mineralized zone, potential expansion of mineralization and timing of exploration and development plans. Forward-looking information is often, but not
always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or
results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others,
assumptions regarding timing of exploration and development plans at the Company’s mineral projects; timing and completion of proposed financings; timing and likelihood of deployment of additional drill rigs; successful delivery of results of metallurgical testing; the release of an initial resource report
on any of our properties; assumptions about future prices of gold, copper, silver, and other metal prices; currency exchange rates and interest rates; metallurgical recoveries; favourable operating conditions; political stability; obtaining governmental approvals and financing on time; obtaining renewals
for existing licences and permits and obtaining required licences and permits; labour stability; stability in market conditions; availability of equipment; accuracy of historical information; successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and
events that are not within the control of the Company and there is no assurance they will prove to be correct.
Such forward-looking information involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, but not limited to, the cost, timing and success of exploration activities
generally, including the development of new deposits; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other
expenses for specific operations; the timing, timeline and possible outcome of permitting or license renewal applications; government regulation of exploration and mining operations; environmental risks; the uncertainty of negotiating with foreign governments; expropriation or nationalization of
property without fair compensation; adverse determination or rulings by governmental authorities; delays in obtaining governmental approvals; possible claims against the Company; the impact of archaeological, cultural or environmental studies within property areas; title disputes or claims; limitations
on insurance coverage; the interpretation and actual results of historical operators at certain of our exploration properties; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; and delays in obtaining financing. The Company's
forward-looking information reflect the beliefs, opinions and projections on the date the statements are made. The Company assumes no obligation to update forward-looking information or beliefs, opinions, projections, or other factors, should they change, except as required by law.
The Company has implemented a rigorous Quality Assurance / Quality Control (QA/QC) program to ensure best practices in sampling and analysis of RAB drill, soil, rock, and stream sediment samples. All assays are performed by Bureau Veritas Commodities Canada Ltd., with sample preparation carried
out at the BV facilities in Fairbanks, AK, USA. Assays are completed at either the Fairbanks laboratory or the Vancouver laboratory.
All soil and stream samples at the Tibbs, Seventymile, and Northway properties were prepared using procedure SS80 (dry at 60 C and sieve 100g at -80 mesh) and analysed by method FA430 (30g fire assay with AAS finish) and MA300 (0.25g, multi acid digestion and ICP-ES analysis). All RAB drill, rock,
trench, and pan concentrate samples at the Tibbs, Seventymile, and Northway properties were prepared using procedure PRP70-250 (crush, split, and pulverise 250g to 200 mesh) and analyzed by method FA430 and MA300. All samples containing >10 g/t Au were reanalyzed using method FA530 (30g
Fire Assay with gravimetric finish).
The Company makes no representation or warranty regarding the accuracy or completeness of any historical data from prior exploration undertaken by others other than the company and has not taken any steps to verify, the adequacy, accuracy or completeness of the information provided herein and,
under no circumstances, will be liable for any inaccuracies or omissions in any such information or data, any delays or errors in the transmission thereof, or any loss or direct, indirect, incidental, special or consequential damages caused by reliance on this information or the risks arising from the stock market.
The Qualified Person has reviewed and verified the data collected by the Company. For samples collected at the Tibbs, Seventymile, and Northway properties, QAQC samples were inserted into the sample submittals at a rate of approximately 1 QAQC sample per 10 assay samples (approximately 10%).
Standards were inserted at a rate of approximately 8 standard samples per 100 assay samples (8%), blanks were inserted at a rate of approximately 2 blank samples per 100 assay samples (2%). For Rotary Air Blast (“RAB”) drilling, field duplicate samples are systematically collected at a rate of 3
duplicates per 100 assay samples (3%). A selection of standards were used which are commercially available from a reputable vendor (OREAS and Rocklabs). All standards ultimately returned acceptable values (within approximately 15% of the expected value, or approximately one standard deviation).
Those standard samples which returned suspect values were re-run at the companies request. Blank samples consisted of Browns Hill Quarry basalt, an unmineralized Quaternary basalt flow from the Fairbanks Mining District, Alaska.
Eric Buitenhuis, M.Sc., P.Geo., Vice President Exploration of Tectonic Metals Inc. and Qualified Person under National Instrument 43-101 ("NI 43-101"), has reviewed and approved the contents of this presentation.
Prospective investors should not construe the contents of this presentation as legal, tax, investment, accounting or other advice. Prospective investors are urged to consult with their own advisors with respect to legal, tax, regulatory, financial, accounting and other such matters relating to their
investment in the Company.
The Company securities have not been approved or disapproved by the U.S. Securities and Exchange Commission or by any state, provincial or other securities regulatory authority, nor has the U.S. Securities and Exchange Commission or any state, provincial or other securities regulatory authority
passed on the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense.
The Company is incorporated under the laws of British Columbia, Canada. Many of the Company’s assets are located outside the United States and most or all of its directors and officers are residents of countries other than the United States. As a result, it may be difficult for investors in the United
States to effect service of process within the United States upon the Company or such directors and officers, or to realize in the United States upon judgments of courts of the United States predicated upon civil liability of the Company and its directors and officers under the United States federal
securities laws.
2 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019
THE TEAM
KEY MEMBERS BEHIND KAMINAK GOLD, THE COMPANY THAT RAISED C$165M TO FUND THE ACQUISITION, DISCOVERY AND ADVANCEMENT OF THE COFFEE
GOLD PROJECT THROUGH TO THE COMPLETION OF A BANKABLE FEASIBILITY STUDY BEFORE SELLING THE MULTI-MILLION-0UNCE GOLD PROJECT TO GOLDCORP
INC. (NOW NEWMONT GOLDCORP) FOR C$520M IN 2016 ARE BACK WITH TECTONIC
Mel Benson Tony Reda Eira Thomas Rob Carpenter, Curtis J. Freeman Allison Rippin Michael W. (Mick) Krysta Rehaag,
Chairman President & CEO, Founder, Strategic Ph.D., P.Geo, Director & Founder Armstrong Roper CPA, CA, CFA
Director & Founder Advisor Founder & Technical Director Director Chief Financial
Advisor Officer
EXPERIENCED, TECHNICAL AND FINANCIAL TEAM WITH A
TRACK RECORD OF WEALTH CREATION FOR SHAREHOLDERS
WE ARE A FOCUSED, WE ARE COMMITTED TO
Eric Buitenhuis,
M.Sc., P.Geo,
Vice President,
Grant Lockhart
Chief Geoscientist
DEDICATED TEAM
WITH A SOUND
BUSINESS MODEL
CREATING VALUE FOR
OUR SHAREHOLDERS &
STAKEHOLDERS
$520M
COFFEE GOLD PROJECT
Exploration KAMINAK GOLD CORPORATION
$165M RAISED CAPITAL
3 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019
CORPORATE SUMMARY
AS OF SEPTEMBER 30, 2019
Shares Outstanding 55,203,675
Fully Diluted 76,461,005
Working Capital $2,900,000
Debt None
▪ 2019 - $5.8M brokered + non-brokered private placement
($0.35 Unit = 1 common share + 1 full 2-year warrant @ $0.50)
Most Recent Financings
▪ 2018 - $6.3M non-brokered private placement ( $0.35 per share, no warrants)
Insider Warrants Outstanding ▪ 720,000 @ $0.10 (Expires: June 16, 2022); 3,380,000 @ $0.25 (Expires: June 16, 2022)
▪ 227,936 @ $0.35 (Expires: July 12, 2021); 235,978 @ $0.35 (Expires: September 26, 2021)
Warrants Outstanding
▪ 6,880,798 @ $0.50 (Expires: July 12, 2021); 9,812,618 @ $0.50 (Expires: September 26, 2021)
Insider Options Outstanding Nil
4 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019
OWNERSHIP
Retail Investors 20%
27%
15%
38%
Insiders
Institutions Insiders High net-worth investors Retail Investors
5 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019
TECTONIC VISION, MISSION & CORE VALUES
OUR VISION OUR MISSION OUR CORE VALUES
To be the number one To create transformational Passion Focus
We love what we do and are Focus is everything.
mineral exploration wealth for our shareholders
committed to the success of Integrity, Honesty,
company in the world by identifying, discovering and our company. Transparency & Fairness
developing world-class gold Patience & Perseverance It is the only way to be. Our word is
districts in North America “A winner is just a loser who our bond. We do what we say, and
live up to the highest standards of
with a commitment to high tried one more time. fairness and ethical behavior.
standards of environmental ~ George M. Moore, Jr.~
Accountability
stewardship and maximizing Play Big We take responsibility for our actions
We are dreamers, and as dreamers, and are willing to be held accountable.
social and economic benefits we ignore the word impossible and We learn from our experiences and
to the communities in which play big. Whether playing big or search for continuous improvement.
playing small, the same amount of
we live and operate in. work is required; the only difference Respect
is the level of your insecurity. Why We work hard to earn your trust
not play big? and respect, for everything we do.
6 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019
OUR BUSINESS MODEL – PLAY BIG
OBJECTIVE:
CREATE TRANSFORMATIONAL WEALTH FOR OUR SHAREHOLDERS BY IDENTIFYING,
DISCOVERING AND DEVELOPING WORLD-CLASS GOLD DISTRICTS IN SAFE, POLITICALLY
STABLE, PRO-MINING JURISDICTIONS
PART I: PART II:
Target ▪ Focused on high-grade and Manage Risk ▪ Risk vs. reward vs. cost of capital
oxide assessment to determine next steps
Discovery-Stage, ▪ Relatively low-cost entry level ▪ Always maintain optionality, including
District Scale ▪ Must have a linear, definable drilling our own projects
▪ Strategic alliances
path forward
Opportunities ▪ Potential to yield greatest ▪ Joint-venture strategy
return on investment ▪ Business transactions
7 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019
GOODPASTER MINING DISTRICT GOLD EXPLORATION RUSH IS ON ▪ District is anchored by the world-class Pogo Mine, owned and operated by Northern Star Resources Ltd., with robust infrastructure, power and active mill ▪ The Tibbs Project boasts high-grade gold mineralization at surface, in trenches and in drilling, < 35kms from the Pogo Mine. ▪ Previous campaigns predominately consisted of shallow drilling (
TIBBS GOLD PROJECT
OPPORTUNITY: MULTIPLE HIGH-GRADE GOLD ZONES IN THE GOODPASTER DISTRICT
▪ New high-grade gold discoveries in trenches and
in drilling
▪ 1,141 rock samples collected to date
‒ 48 samples > 20 g/t Au
‒ 78 samples >10 g/t Au
‒ 109 samples > 5 g/t Au
‒ 217 samples > 1 g/t Au
▪ 2,500 soil samples collected
▪ Wolverine Zone
‒ Largest (1.2km x 600m) and best grade soil anomaly on the
property
▪ Multiple mineralized zones
▪ Unglaciated terrain and proven exploration
methodology
9 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019
*description of QAQC procedures available on slides 2 and 3
TIBBS 2019 DRILL PROGRAM - EXECUTED
GOAL: DRILL A DISCOVERY BY TESTING 9 HIGH-GRADE ZONES
RAB DRILL PROGRAM COMPLETED
2,184m RAB drill program
▪ 100m angled drill holes in fences to cross veins and structures
▪ Efficient, cost-effective drill test
Rapidly drill test high-grade, near surface targets
▪ Multiple mineralized structures in a >1km long corridor at Michigan
▪ Multiple high-grade trench intercepts (i.e. 8.1 g/t over 6m)
▪ Newly discovered low-angle structures at Johnson Saddle
▪ High grade rock samples at Hilltop/Oscar and at Connector North
▪ High grade quartz vein, near the historically mined Blue Lead prospect
Drill test down-dip extension of the Gray Lead vein system
▪ High-grade, high angle quartz vein similar to those at the North Zone at the Pogo Mine
10 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019TIBBS PROJECT – MICHIGAN ZONE
TECTONIC DRILLS: 6.03 g/t Au over 28.95m
▪ 2011: Previously explorer attempted to target a deep IP anomaly
at a + 300m vertical depth, using a different drill orientation than
Tectonic’s 2019 drilling. IP anomaly remains untested.
▪ 2018: Tectonic uncovers historic Stone Boy trench map indicating
strike and dip of vein (72o NW)
▪ 2018: Tectonic mapping, trenching and interpretation aligns with
Stone Boy trench map and suggests historical 2011 drilling was
parallel to mineralization and did not test the main structure
▪ 2019: Tectonic executes first ever drill program and drills
6.03 g/t Au over 28.95m – the M1 Structure
▪ >1km long newly interpreted Deformation Zone defined by high
grade gold in drill core, rock samples (up to 980 g/t Au) and soils
and prominent lineaments bounding the deformation zone
▪ Michigan Zone has scale, width and grade and will be a key focus
in 2020
11 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019
*Trench interval – true width uncertain *description of QAQC procedures available on slides 2 and 3TIBBS PROJECT – MICHIGAN ZONE
2019 CROSS SECTION
▪ Tectonic drills fence of angled RAB holes (2019)
approximately 50m apart to test the newly interpreted,
broad deformation zone, which includes the high-grade
gold in the 2019 Tectonic trench MI18-03
▪ Tectonic executes first ever drill program at Michigan
in 2019 and drills:
‒ 6.03 g/t Au over 28.95m (TBRB19-003):
‒ including 12.3 g/t Au over 4.57m
‒ and 9.25 g/t Au over 3.05m
‒ and 14.3 g/t Au over 1.52m
‒ and 35.2 g/t Au over 1.52m
12 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019TARGETING HIGH-GRADE MINERAL DISTRICTS
SEVENTYMILE AND NORTHWAY PROJECTS
▪ Tectonic – Doyon Partnership
‒ Doyon, Limited – top tier Alaska Native regional ALASKA
corporation with 12.5M acres of land, 19,800 YUKON ALASKA
YUKON
shareholders and a 20-year history of mineral, oil and
Seventymile Anchorage Whitehorse
gas exploration agreements with both junior and
senior companies
‒ Doyon powerful economic driver in Alaskan Interior (Northern Star) LWM
Pogo Dawson
‒ Projects located on Native Owned Land (no Feds)
‒ Secured land tenure; fee simple land Tibbs
‒ Exploration and Production Lease Agreements
(Freeport-McMoRan)
Signed in 2018 Tanacross
‒ Milestone agreement covering all aspects of exploration,
development, production and royalties; no further (Rio Tinto)
Oreo Mnt White Gold
negotiations needed
Northway
Coffee
▪ Tectonic first company in almost 20 years to Casino
explore both properties Tetlin
(Royal Gold & Contango ORE)
▪ Massive districts > 150,000 acres in size 0 Kilometers 100
13 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019SEVENTYMILE PROJECT – 40KM LONG GOLD BELT
THE OPPORTUNITY
▪ Project de-risked
‒ Tectonic – Doyon Partnership with Formal
Production Agreement
▪ 40km long gold belt located in a First World Bonanza Creek
1.06 g/t Au over 43.5m
jurisdiction and unexplored for 20 years (historic drilling)
▪ Gold in soil anomalies and high-grade gold in Alder Creek
Flanders
2.0 g/t Au over 8.67m
187.9 g/t Au over 1.1m
historical drill core along the belt; historic placer 2.6 g/t Au over 6.7m
1.6 g/t Au over 5.5m 12.0 g/t Au over 1.31m
production (historic drilling) 7.8 g/t Au over 4.87m
(historic drilling)
▪ New Tectonic Exploration Model:
High-grade Shear Zone Model 0 kms 5
14 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019SEVENTYMILE PROJECT
NEW GOLD DISTRICT IN THE MAKING
▪ 2018 Tectonic Validates Shear Zone
Model Alder Creek
‒ Mag Survey and Power Auger Soil Sampling
Lithologic Contact
Never Drilled 1
Confirms Shear Zone 8.6 g/t Au over 4.9m
Historical DDH
0 meters 300
‒ High tenor gold in soils delineated at lithological 1014 ppb Au
contacts and within permafrost-rich gouge zone Flanders
(i.e. shear zone) where historic shovel samples
returned no significant values Lithologic Contact
Never Drilled
319 ppb Au
‒ Lithologic contact (possible primary control
1080 ppb Au
for shear zone mineralization) remains
untested by drilling
Kill Zone 2
▪ 2019 Geoprobe Program Completed 140 ppb Au
‒ Top of bedrock sampling tool
Deep Creek
‒ Target resolution improved over soil
anomalies; soil anomalies validated
▪ Next Step: Drill targets generated across
gold belt
*RAB drill programs are subject to change and contingent upon financing, board approval,
15 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019 receipt of timely assays, favourable assay results and availability of service providers.NORTHWAY PROJECT – AREA 6 & 7
NEW DISTRICT-SCALE OPPORTUNITY OFF OF THE HIGHWAY
1.82 g/t
Au
Target 6
▪ >1200m soil Cu-Mo-Au soil; Cu up to 597 ppm,
Au up to 253 ppb
▪ Coincident IP effect; chargeability anomaly
consistent with disseminated sulfide response Area 6
1.2 km Cu – Au soil anomaly open for
expansion; never drill tested
2.12 g/t
Au
Target 7 0 500
▪ > 800m Au in soil anomaly with peak values Meters
of 2.12 g/t Au and 1.82 g/t Au Area 7
800m gold in soil anomaly with values up to
▪ Coincident IP effect and magnetic anomaly 2 g/t Au, open for expansion Never drill tested
2019 Geoprobe Drill Program
▪ Top of bedrock sampling tool
▪ Goal: tie soil anomalies to bedrock 0 500
Meters
mineralization, de-lineate follow-up RAB drill
targets
2019 RAB Drill Program
▪ Tested high-potential targets refined through
probe program
16 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019NORTHWAY 2019 EXPLORATION PROGRAM - EXECUTED
GOAL: DISCOVER BEDROCK MINERALIZATION & DRILL TEST TWO TARGETS
PHASE I COMPLETED PHASE II COMPLETED
Geoprobe Program RAB Drill Program
OBJECTIVE:
OBJECTIVE:
RAB drill Target 6 and 7
Delineate high-potential targets for RAB
▪ Discovery opportunities; drill test Cu-Mo-Au
drill follow-up at Target 6 and 7
anomalies consistent with porphyry style
▪ Target 6 – newly discovered Cu-Au-Mo anomaly mineralization in a high-profile district (Freeport,
>1,200m in strike, OPEN Rio Tinto in area)
▪ Target 7 – new, high-grade Au soil anomaly ▪ RAB holes to test the heart of the Target 6 IP
>800m in strike and >300m wide with values up effect and near surface Cu-Mo-Au mineralization
to 2.12 g/t Au, 1.8 g/t Au
▪ Fenced RAB holes across the high-grade Au in soil
and near surface Cu-Mo occurrences at Target 7
30-day GeoProbe program:
▪ Collect top-of-bedrock samples at priority areas:
854m RAB drill program: Awaiting Results
Target 6, Target 7
▪ Nearly 10,000 linear meters tested property- ▪ Eight holes, ~100-200m in length
wide
17 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019WHY TECTONIC?
PLAY BIG WITH US
WE’RE ALL IN EXECUTION IS EVERYTHING. TIME IS MONEY. WE PLAY BIG DISCIPLINE
▪ 100% dedicated ▪ In just over a year and a half, Tectonic: ▪ Our goal is to find the ▪ We don’t always
team committed to ▪ Moved into Alaska next multi-million get it right, but we
creating value for ounce gold district have the courage
▪ Acquired three projects
you, the shareholder ▪ Finding a small deposit to accept what is
▪ Formed two production agreements so and the
▪ Insider ownership takes just as much
38% ▪ Advanced all three projects to the drill ready stage time and effort as discipline to learn
▪ Completed two drill programs finding a large deposit and move on
▪ Insider investment
over $1M ▪ Tectonic is Now Public so why not play big
“You can’t build a reputation
on what you are going to do.”
— Henry Ford
18 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019WHY TECTONIC?
PLAY BIG WITH US
WE’RE ALL IN EXECUTION IS EVERYTHING. TIME IS MONEY. WE PLAY BIG DISCIPLINE
▪ 100% dedicated ▪ In just over a year and a half, Tectonic: ▪ Our goal is to find the ▪ We don’t always
team committed to ▪ Moved into Alaska next multi-million get it right, but we
creating value for ounce gold district have the courage
▪ Acquired three projects
you, the shareholder ▪ Finding a small deposit to accept what is
▪ Formed two production agreements so and the
▪ Insider ownership takes just as much
38% ▪ Advanced all three projects to the drill ready stage time and effort as discipline to learn
▪ Completed two drill programs finding a large deposit and move on
▪ Insider investment
over $1M ▪ Tectonic is Now Public so why not play big
“You can’t build a reputation
on what you are going to do.”
— Henry Ford
19 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019Website Email Telephone
www.tectonicmetals.com info@tectonicmetals.com (604) 283-3298
TECT: TSX-V
20 | CORPORATE PRESENTATION | TECT: TSX-V | TECTONICMETALS.COM | NOVEMBER 2019You can also read
