SEPTEMBER 2021 Exploring high-grade gold and copper in Brazil and Canada - South Atlantic Gold
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Exploring high-grade gold and copper
in Brazil and Canada
SEPTEMBER 2021
CAUTIONARY STATEMENTS This presentation includes “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding South Atlantic Gold Inc.’s (“SAO” or the “Company”) opinions and beliefs, business strategy, mineral resource estimates, ongoing or future development and exploration opportunities and projects, drilling, geological modeling plans, and plans and objectives of management for properties and operations constitute forward-looking information. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Although the Company believes the forward-looking information contained in this presentation is reasonable based on information available on the date hereof, by its nature forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com. THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESENTATION REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESENTATION AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS. Qualified Person The scientific and technical information that forms the basis for this presentation was reviewed and approved by Marcelo Antonio Batelochi (P.Geo.), MAUSIMM (CP), who is a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). southatlanticgold.com 2 TSX-V:SAO
EXPLORING
FOR HIGH-
GRADE Big Kidd Project (BC, Canada)
GOLD & ▪ 4,046 ha property, close to Merritt
▪ Widespread Copper-Gold
COPPER IN mineralization across a 2.5 km
long chargeability anomaly
BRAZIL &
▪ Shaft sunk in 1918 at Big Sioux
Zone in reportedly recovered 44
tons of 12.0% Cu, 68 g/t Ag
CANADA ▪ Historic drill results include 116 m
of 0.79 g/t Au and 0.12% Cu and
75 m of 0.75 g/t Au and 0.25% Cu
▪ Powerline access and easy access
Pedra Branca Project (Ceará State, Brazil)
▪ Large property (39,906 ha) over a 40 km-long shear
zone
▪ 3 well-defined targets and 25 prospective tenements
▪ Substantial work to date, including ~20km of drilling
▪ Near key infrastructure (roads, power, mine supply)
▪ Many wide, near-surface high grade zones (12.80 m
@ 7.38 g/t Au and 12.85 m @ 5.23 g/t Au)
▪ Maiden resource 4Mt @ 1.38g/t Au Inferred from
surface exploration program
southatlanticgold.com 3 TSX-V:SAO
CAPITAL MARKETS PROFILE
Share Price and Volume
Capital Structure (Last 12 Months)
Ticker TSX-V: SAO
Share Price (Sept 3, 2021) C$0.07
52-Week Trading Range C$0.06 – C$0.18
Basic Shares Outstanding 59.1M
Options 5.0M1
Warrants 14.2M2
FD Shares Outstanding 78.6M
Market Capitalization (Basic) C$5.3M
Debt Nil Trading well below high of C$0.18/share reached in
October 2020
Finalized Phase 1 Exploration following C$1.75 million
equity financing in October 2020 Excellent Entry Point
1. 5,000,000 options outstanding with a weighted average exercise price of C$0.07 and a weighted average life of 5.3 years
2. 14.2M warrants outstanding with a weighted average exercise price of C$0.08 and a weighted average life of 1.9 years
southatlanticgold.com 4 TSX-V:SAO
EXPERIENCED MANAGEMENT & BOARD
Douglas Meirelles │ President, CEO and Director Bruce Higson-Smith │ Chairman
▪ Over 15 years of experience in the management of publicly traded mining companies in ▪ Mining engineer with nearly 40 years of experience
Brazil and Canada ▪ Extensive capital markets experience, including 9 years with the Castle Group,
▪ Former Corporate Director in Brazil for Equinox Gold and Country Manager for Luna Emerging Markets Gold Fund and Resource Capital Funds
Gold. Oversaw the shutdown, C&M and re-start of the Aurizona Mine for over 6 years. ▪ Former CFO of Castle Exploration and Senior VP of Corporate Strategy for Golden Star
▪ Been involved in mining and in senior leadership roles since 2004. Resources Ltd. from 2003 to 2019
▪ Fellow of the Brazil-Canada Mining Chamber of Commerce Oliver Friesen │ Director
Terese Gieselman │ CFO ▪ Actively involved in mineral exploration since 2010 and has worked on a number of
▪ 34 years of experience with junior mining and exploration companies listed on the TSX, precious and base metal projects throughout Nevada, BC and the Yukon
TSXV, OTCBB, NASDAQ and AMEX in the roles of CFO, Treasurer, and Corporate Marc Leduc │ Director
Secretary
▪ Mining engineer and geologist with over 30 years of experience with expertise in
▪ Extensive background in corporate and financial reporting and compliance for Canada, designing, constructing and operating large heap leach gold mines
US, Mexico, Peru, Chile, Argentina and Zimbabwe
▪ Former COO and then CEO of NewCastle Gold until it merged with Equinox Gold
Marcelo Batelochi (PGeo) │ Senior Exploration Manager ▪ Previously CEO of Luna Gold, COO of Lydian International and President and COO of
▪ Nearly 30 years of experience as a geologist exploring for gold, iron ore, manganese, Bear Creek Mining
copper, nickel, bauxite, REE and PGM in South American and Africa ▪ Currently COO of Kore Mining (leading development of the Imperial Project)
▪ Geologic positions at Rio Tinto, Vale S.A., Ferrous Resources Limited and Great Panther
Antenor Silva │ Director
Mining
▪ Mine engineer with over 50 years of experience in operating metallurgical plants and
▪ Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a
open pit and underground mines for several multi-national and public companies
Qualified Person for both NI 43-101 and JORC disclosure and technical reports
▪ In 1971, he co-founded Paulo Abib Eng. and acted as its President & COO
Anne Hite │ VP, Investor Relations ▪ By 1986, he was CEO of CMP/CMA (first Brazilian gold company on the BOVESPA)
▪ Over 20 years of experience with mid-tier and junior exploration companies in investor
▪ Co-founder and President, COO of Yamana Gold until retirement in 2015
relations and corporate development
▪ Owns and runs an IR consultancy business Nanmao Su │ Director
▪ Current and former employers & clients include Golden Star Resources, Rare Element ▪ Chairman of Dongying Delta Forestry Development Co. (tree plantation and forest
Resources, Lydian International, Luna Gold, Sandspring Gold (Gold X Mining) and product company based in Dongying City, China)
Pershing Gold (Americas Gold and Silver) ▪ Director of Huaxi Jiye Minerals Corp., a China-based minerals exploration company
southatlanticgold.com 5 TSX-V:SAO
FUTURE - NEXT 12 MONTHS
First 12 Months - USD 1 Million Milestone Completed:
✓ Pedra Branca: 100% Earn-In completed, consolidated exploration
databases, validated historical results, added ounces to the historical Advancing
results, 39 mineralized zones, maiden resource of 180koz at surface
(average 30 meters depth) Q2-Q3 2022 Toward
Development
- *Updated
Q1 2022 Technical Report
for Pedra Branca.
- Upgrade remaining
licenses at Pedra - Next steps to be
Branca to Mining defined by new
Q4 2021 Concession Stage. technical report.
- Phase II - Exploration Results
Exploration Pedra
Branca
Mobilization What’s Next?
Previous - In-fill drilling and o Pedra Branca Phase II: Continue to
additional
12 Months - Pedra Branca: exploration add ounces, further qualify the
Historical DDH - Expect to add resource and advance the key mining
Validated ounces to current
- 100% Earn-In resource.
permits.
- Maiden Resource
southatlanticgold.com 6 TSX-V:SAO
ESG – ENVIRONMENTAL SOCIAL AND GOVERNANCE
Global warming Relations with Civil
Carbon emissions Society Organizations
Air and water pollution Consumer Relations
Why ESG? Biodiversity Relationship and
✓ Communities and environment Deforestation Community Development
were there before we arrived Energy efficiency (ISP,
Waste management philanthropy)
and will be there after we are Water scarcity Monitoring Business
gone; Environmental Impacts on Human Rights
sustainability. Be a good neighbor
✓ We can be there legally, but
without legitimacy we will fail;
✓ ESG saves Time and Money; Ensure Project
Voluntary public Viability
✓ ESG is more efficient than commitments
Employee management
Worker Rights (ILO
continuously solving liabilities; Ethical Behavior Conventions)
✓ Projects fail without social and Corporate Governance Occupational Health and
Dialogue and Engagement Safety
stakeholders' acceptance. with Stakeholders Social and environmental
Management of Risks and safeguards in supply
Opportunities chains
Anti-corruption Practices Diversity and Equity
and Integrity Systems (Gender, Race,
Management and Strategy Generations, People
Accountability: IR & with Disabilities,
Financial Reporting Affirmative Action)
southatlanticgold.com 7 TSX-V:SAO
CHECKING ALL THE RIGHT BOXES
✓ Attractive ✓ Pedra ✓4Mt @
Entry Point
High grade Au & Cu
PB Maiden Resource
✓ Brazilian
Experienced Management
entry point Branca in 1.38g/t Au experience
Brazil Inferred
(mesothermal
✓ Phase II shear zone Au ✓ Successful
deposit) ✓39
Exploration projects
Mineralized
& Financing (from
✓ Big Kidd in Zones over
Exploration to
BC (Cu-Au 12km Mining)
porphyry) extension
✓High Grades
✓ Financial
at Surface acumen
and at
Depth
southatlanticgold.com 8 TSX-V:SAO
PEDRA BRANCA
PROJECT
CEARÁ STATE, BRAZIL
High-grade, near-
surface gold
resource asset
▪ Large property (39,906 ha) over a 40 km long shear
zone
▪ Many wide, near-surface high grade zones (12.80 m
@ 7.38 g/t Au and 12.85 m @ 5.23 g/t Au)
▪ Maiden resource 4.0Mt @ 1.38 g/t Au Inferred
▪ Near key infrastructure (roads, power, mine supply
centres)
▪ Substantial exploration work to date, including DD &
RC drilling and trenching
▪ 3 well-defined targets and 25 prospective tenements
along a +40 km trend
Typical view of Northeast region in Brazil “caatinga”, a sparse vegetation over the property
southatlanticgold.com 9 TSX-V:SAO
LARGE PROPERTY NEAR KEY INFRASTRUCTURE
✓ Located in the pro-business state of Ceará
✓ Accessible via paved road and 280 km by highway
BR-020 to state capital of Fortaleza
‒ Fortaleza (population of 2.6 million) is Brazil’s 5th largest
city with an international airport
‒ 3 tows in a radius of 40 km from the project. (~pop.
110,000)
✓ Power lines and near water, mine supply centers and
labor availability
✓ 25 tenements and 22 exploration licenses covering
39,906 ha
▪ Historically - Substantial work completed by Jaguar, Xstrata and Falconbridge:
‒ Over 10,000 geochemical samples
2.8 km of trenching
‒
‒ 90 holes and 8,913 m of diamond drilling
200+ Holes 12,200+ Meters
▪ In 2014, Jaguar prepared a resource estimate(1) 20,000+ Meters Trenched
‒ ~150koz reported to ANM based on previous shallow drilling.
(1) Not in accordance with N.I. 43-101 guidance and should not be relied upon.
southatlanticgold.com 10 TSX-V:SAOOVERALL LICENSES STATUS
Current Stages for All Tenements
▪ Comparison with 43-101 Compliant Work 3 Permits
Main Zones
Construction &
Commissioning
Environmental
15 Permits Operating
Mining License
7 Permits PEA Approved
Concession
Stage
Preliminary
Economic
Final Assessment Inferred Mineral Resource
Exploration
Exploration Report based only on 3 targets:
Phase
Coelhos-Queimadas, Mirador
and Igrejinha Targets
N.I. 43-101 ✓25 Permits.
Resource ✓3 Main Targets used for resource (out of 13 total targets)
Report ✓Phase II: Continue to advance asset & targets to later stages.
southatlanticgold.com 11 TSX-V:SAOCONSOLIDATED EXPLORATION
✓ Phase I Exploration Area:
✓ 276.36 sq km
✓ 39 Mineralized Zones over a
12k Trend
✓ Over 600 intercepts:
✓ 122 RC drill holes; 5,022 m
✓ 90 DD holes; 8,914 m
✓ 12,286 m of trenching
✓ New mineralization discovered at
Igrejinha and Bombeiros Targets
with recent drilling
southatlanticgold.com 12 TSX-V:SAOMINERAL RESOURCE
Coelhos-Queimadas TARGET Name of BODY # Nr of samples
Average Au
g/t
Inferred Total CQ 461 1.24
Tonnes Au Au Coelhos_Central_01 1 18 1.53
(k) (g/t) (koz) Coelhos_Central_02 2 78 2.79
Coelhos_Central_03 3 20 1.04
Oxide 489 1.03 16 Coelhos_Central_07 4 1 2.13
Fresh 2,700 1.28 111 Coelhos_Centroeste_04 5 1 0.56
Coelhos_Centroeste_05 6 1 2.23
Total 3,189 1.24 128
Coelhos_Centroeste_06 7 2 0.53
CQ
Coelhos_Centroeste_08 8 1 0.96
Mirador Coelhos_W_01 9 24 1.18
Coelhos_W_02 10 48 0.87
Inferred Coelhos_W_04 12 2 0.67
Tonnes Au Au CoelhosQueimadas_01 13 34 0.83
(k) (g/t) (koz) CoelhosQueimadas_02 14 161 0.94
CoelhosQueimadas_03 15 42 0.7
Oxide 373 1.74 21 CoelhosQueimadas_04 16 28 0.72
Fresh 265 2.30 20 Total MIR 129 2.32
Total 638 1.97 40 Mirador_Central_01 18 31 4.55
Mirador_Central_02 19 33 1.37
Mirador_Central_03 20 10 2.97
Igrejinha Mirador_Central_04 21 3 0.73
Mirador_East_1 22 3 3.76
Inferred
Mirador_East_2 23 11 2.09
Tonnes Au Au Mirador_SUL_01 24 2 0.43
MIR
(k) (g/t) (koz) Mirador_SUL_02 25 1 2.03
Mirador_SUL_03 26 1 0.39
Oxide 38 1.55 2
Mirador_SW_04 27 2 3.5
Fresh 177 1.77 10 Mirador_SW_05 28 6 0.61
Total 215 1.73 12 Mirador_SW_06 29 3 0.72
Mirador_W_03 30 11 1.46
Mirador_W_04 31 4 0.62
Mineral Resource Statement - 0.4 g/t Au Cuf-off Mirador_W_05 32 8 0.81
Total IG 55 1.93
3 Block Models over
Inferred
Igrejinha_MIN_01
33 21 2.78
Tonnes Au Au Igrejinha_MIN_02
34 5 0.79
Oxide
(k)
900
(g/t)
1.35
(koz)
39
IG
Igrejinha_min_03
35
Igrejinha_MIN_04
36
19
4
1.81
0.84 39 Mineralized Zones
Igrejinha_MIN_05
37 4 0.99
Fresh 3,142 1.40 141 Igrejinha_MIN_06
38 1 1.05
Total 4,042 1.38 180 Igrejinha_MIN_07
39 1 0.39
Source: “NI 43-101 TECHNICAL REPORT – Mineral Resource Estimation for the Pedra Branca Gold Project, Ceará State – Brazil” Report date 25th April 2021
southatlanticgold.com 13 TSX-V:SAO3 MAIN TARGETS
✓ Coelhos-Queimadas, Igrejinha and Mirador ✓ 3 well-defined and another 5 prospective target areas
✓ Gold found in: identified to date
1) Quartz veinlets all parallel in the Coelhos- ✓ Potential mesothermal shear zone gold deposit.
Queimadas target
2) Metre-wide quartz vein at the Mirador and
Igrejinha targets
✓ Trend N20E: Mineralization extends from surface
and is continuous and open in all directions,
including at depth along the entire trend.
✓ Orebody interpretation and modeling suggests a
relatively simple pattern of mineralization, with sub-
planar lenses dipping at 40-50° to SW, on a general
strike N45W.
Visible Gold
southatlanticgold.com 14 TSX-V:SAOCOELHOS-QUEIMADAS TARGET
✓ Drilling and trenching defined three parallel trends, two main zones,
each ~500 m in length and ~6 m wide along a northeastern trend
✓ Gold mineralization extends from surface to depth of at least 80 m
and remains open both at depth and laterally
✓ Gold mineralization appears folded, stretching into pinch/swell
patterns which could cause double or triple layer thickness
✓ Recent historical drilling validation program has successfully
confirmed historical drill results. Highlights include:
‒ FCC002: 12.80 m @ 7.38 g/t Au (from 46.3 m)
‒ FCC003: 5.90 m @ 3.56 g/t Au (from 49.1 m)
‒ FCC016: 12.85 m @ 5.23 g/t Au (from 90.2 m)
‒ FCC020: 2.05 m @ 3.56 g/t Au (from 153.8 m)
‒ FCQ001: 2.05 m @ 3.56 g/t Au (from 49.45 m)
‒ FCW006: 0.95 m @ 5.35 g/t Au (from 9.9 m)
Coelho/ ▪ Sulphide gold mineralization occurs within magnetite-rich amphibole shale with highest grades
Queimadas occurring within hydrothermal breccias north-easterly
▪ Two parallel mineralized trends, ~1,000 m in length and ~6 m thick along a trend
▪ Extends from surface and dips ~45° to depth of at least 80 m
▪ Open at depth and laterally
southatlanticgold.com 15 TSX-V:SAOIGREJINHA TARGET (NEW DISCOVERY)
✓ First major discovery at Pedra Branca by South Atlantic Gold
✓ Trenching has defined two main mineralized trends over 188 m strike
length, dipping 45° to the east and open in all directions
‒ First intersected 29 m at 0.73 g/t Au, including 4 m at 3.22 g/t Au
‒ Second intersection of 10 m at 3.99 g/t Au, including 1 m at 31.0 g/t Au
‒ PB-TR-006: 4.00 m @ 3.22 g/t Au (sample at surface)
‒ PB-TR-009: 6.00 m @ 7.19 g/t Au (sample at surface)
‒ Several meter-length intersections averaging 5.00 g/t Au.
Igrejinha ▪ Sulphide gold mineralization occurs within magnetite-rich amphibole shale with highest
grades occurring within hydrothermal breccias
▪ One parallel zone, around 600 m in length and ~2 m thick along a northeast trend
▪ Extends from surface and dips ~45° to depth at least 50 m
▪ Open at depth and laterally
southatlanticgold.com 16 TSX-V:SAOMIRADOR TARGET
✓ Two parallel trends, and 4 Zones defined by drilling and trenching
each ~300 m in length and ~3 m wide along a 1.5km northeastern
trend
✓ Gold mineralization extends from surface to depth of at least 80 m
and remains open at depth and laterally
✓ Gold mineralization appears folded, stretching into pinch/swell
patterns which could cause double or triple layer thickness
‒ Several meter-length intersections averaging 4.00 g/t Au.
Mirador ▪ Gold mineralization occurs as silicification zones of hydrothermal origin as well as in
veins and quartz veins
▪ 4 zones defined by drilling and trenching
▪ Each zone is 200 – 400 m long and ~3 m thick over a 1.5 km long northeasterly trend
▪ Extends from surface to depth of at least 80 m
▪ Open at depth and laterally
southatlanticgold.com 17 TSX-V:SAOPHASE II EXPLORATION southatlanticgold.com 18 TSX-V:SAO
PHASE II EXPLORATION MAP
Phase II Infill
Drilling Strategy
✓Current
4Mt @
1.38g/t Au
Inferred
✓Focus on
our 3 Key
Targets
southatlanticgold.com 19 TSX-V:SAOPHASE II EXPLORATION
▪ Objectives of Phase II
o Expect to qualify ounces to M&I (“Measured & Indicated”) category.
o Mineral resource estimate to be updated to include the 8,188 additional assay
results from the Phase I (43% of the first program) and additional samples from
the Phase II exploration program.
o Exploration Along-Strike.
o With 39 mineralized zones, the path for Phase II is very straightforward.
o RC in-fill drilling will be focused on further delineation of the geology and
mineralization of the gaps between the targets. RC drilling will also be conducted on
the potential targets identified along the 30 km southern extension of the
mineralized trend that did not receive any drilling during the Phase I exploration
program.
o Explore for Higher Depths Intersections
o Historical DDH drilling demonstrated higher grade intersections at depth.
o Diamond core drilling will be conducted to provide insight into lithology, structural
geology, controls on mineralization, grades and grade variability at depth.
Oriented core will be used to help in the understanding of the structural geology and
controls of mineralization.
southatlanticgold.com 20 TSX-V:SAOPHASE II EXPLORATION
▪ Challenges of Phase II
o Licensing & Permitting.
o Effective finance management: Review all permits and licenses in order to focus
on mineralized trends.
o File for maintenance and minimum requirements on exploration permits
o Mining Concession License.
o Process requires continuous update up to commissioning and mining.
o As required, initial environmental studies are being carried out in the mining
concession areas.
o Current license requirements are associated with mining development studies.
Metallurgical studies, rock work index, multi-metals and others. Company strategy
will be to advance such studies to suffice minimum requirements in
consideration that the current license stage is fully permitted for trial-mining.
southatlanticgold.com 21 TSX-V:SAO▪ Located in southern BC near major copper mines
BIG KIDD ▪ Powerline and major highway crosses the property
PROJECT ▪ BK deposit: 550 m x 500 m gold-rich breccia pipe
▪ Historic drill results include 116 m of 0.79 g/t Au and
High-grade Cu-Au in 0.12% Cu and 75 m of 0.75 g/t Au and 0.25% Cu
a Tier 1 jurisdiction ▪ Widespread Cu-Au mineralization across a 2.5 km long
chargeability anomaly
southatlanticgold.com 22 TSX-V:SAOTIER 1 LOCATION WITH ACCESS
TO KEY INFRASTRUCTURE
▪ 4,056 ha land package located in the Nicola Mining Division in
southern BC
▪ ~25 km southeast of Merritt, BC (15 mins via highway) and 250 km NE
of Vancouver
▪ Powerline runs adjacent to BK Breccia deposit
▪ Excellent logging road access throughout property
▪ Nearby custom mill at historic Craigmont mine, just north of Merritt (30
km by road)
▪ Located in the southern portion of
the prolific Quesnel Terrane
‒ Host to numerous alkalic porphyry
Cu-Au deposits including the nearby
Mount Polley and Copper Mountain
mines
▪ 100% owned property
‒ Subject to a 2.5% NSR royalty,
with full buy-back rights Aspen Grove turnoff on Hwy 5A
(property in the background)
southatlanticgold.com 23 TSX-V:SAOBIG KIDD PROPERTY SUMMARY
▪ Located within the Central Volcanic Facies of the Nicola Group, a narrow belt of
alkaline volcanic and subvolcanic intrusive rocks, which are host to numerous
alkalic porphyry Cu-Au deposits including both the Copper Mountain Mine south of
Big Kidd and the Iron Mask Batholith (Afton, Ajax) to the north, as well as the recent
MPD Copper-Gold Porphyry Project from Kodiak Copper.
▪ 2019 drilling extended the BK Breccia to ~600m depth including an increase in
chalcopyrite:pyrite ratio at depth suggesting a potentially larger mineralization
system at depth and along strike.
▪ Potassic alteration within the BK Breccia is associated with a high Au:Cu ratio,
including drill intercepts of:
▪ 541 m grading 0.28 g/t Au and 0.09% Cu in BK-19-002
▪ 204 m grading 0.31 g/t Au and 0.11% Cu in BK-19-005
▪ 214.50 m grading 0.21 g/t Au and 0.13% Cu in BK-19-009
▪ A shaft sunk in 1918 on the Big Sioux Zone in the north of the Property reportedly
recovered 44 tons of 12.0% Cu, 68 g/t Ag and 0.6 g/t Au. Very limited historic drilling
intersected encouraging grades, including 0.12% Cu, 0.15 g/t Au over 119m in hole
92-6.
▪ The Dago Zone in the southwest of the Property is characterized by a 4x
background Cu-in-soil anomaly coincident with both a magnetic and chargeability
anomaly, at least 1000 x 300 m. Limited drilling has intersected up to 4% Cu, 2.2 g/t
Au over narrow widths.
southatlanticgold.com 24 TSX-V:SAOKEY ZONES
Big Sioux Zone
BK Breccia Zone
▪ Hosts 1918 shaft that extracted 44 tons of
▪ 550 x 500 m (depth unknown) breccia pipe
12.0% Cu, 68 g/t Ag and 0.57 g/t Au
▪ BK-19-002 intersected 541m at 0.09% CU and
▪ Drilling in 1992 and 1997 by Xstrata
0.28g/t Au from surface
intersected significant Cu-Au grades
▪ Historic 2004 resource estimate (non-NI 43- associated with a swarm of steeply dipping
101 compliant) totaling 122.4M tonnes at 0.33 dykes and surrounding altered wall rocks
g/t Au and 0.15% Cu ‒ Intersected 119 m of 0.12% Cu and 0.15 g/t Au
▪ Gold rich: most holes assayed a +2:1 Au:Cu, (hole 92-6)
with high-grade sections assayed up to 20:1 ▪ Proximal to Continuation of 1.5-3km
▪ 3,775m of drilling in 2019 extended Cu-Au magnetic low intersecting linear magnetic
mineralization at depth and updated high similar to Kodiak Coppers’ MPD
exploration model Gold-Copper Porphyry Discovery
▪ 2019 drilling BK-19-009 intersected a second ▪ Cu-in-soil anomaly from the BK Breccia
mineralized breccia body from 420 m to 644.3 Zone
m (EOH) with stronger and still increasing
Dago Zone
alteration
▪ 4x background Cu-in-soil anomaly coincident
with both a 1,000 m x 300 m magnetic and
chargeability anomaly
▪ Last drilled in 1972, which targeted a northern
fringe of a NW trending anomaly
Historic work indicates widespread Cu-Au mineralization across a 2.5 km long chargeability anomaly
southatlanticgold.com 25 TSX-V:SAOBIG SIOUX EXPLORATION POTENTIAL
✓ Continuation along strike of Big Kidd
of Cu-in-Soil anomaly with
chargeability high suggesting the
potential for deeper seated
mineralization
✓ 3km magnetic low cross cutting
linear magnetic high similar to the
discovery zone at Kodiak
Coppers’ MPD Gold-Copper
Porphyry Project
✓ Continuation of As-in-Soil values
over magnetic low suggesting
potentially deep and intact
mineralizing system
✓ Historic drilling at the Big Sioux was
shallow and noted high grade
mineralized zones including bornite
mineralization
southatlanticgold.com 26 TSX-V:SAODEPTH EXPLORATION POTENTIAL
2019 Drilling into the Big Kidd Breccia area showing mineralization potential at depth
southatlanticgold.com 27 TSX-V:SAOTSX.V:SAO
ATTRACTIVE HIGH-GRADE CLEAR EXPERIENCED
ENTRY POINT GOLD & EXPLORATION LEADERSHIP
FOR AN EXCITING COPPER IN & GROWTH WITH DEFINED
EXPLORATION BRAZIL & PATH GOAL
OPPORTUNITY CANADA
“BUILDING A SUSTAINABLE BUSINESS”
southatlanticgold.com 28 TSX-V:SAOExplore, Grow.
Sustainably.
NYSE AMERICAN & TSX:VGZ
www.vistagold.com
SouthAtlanticGold.com
Tel: +1-250-5777
IR@SouthAtlanticGold.com
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