Stardust Project A Copper-Gold Discovery in British Columbia - VRIC Breakfast 2020 - Sun Metals
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Stardust Project
A Copper-Gold Discovery
in British Columbia
VRIC Breakfast 2020
Forward Looking Statements
This presentation contains “forward-looking information” within the meaning of Canadian securities legislation and All mineral resource information has been estimated and disclosed in accordance with the definition standards on
“forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in
(collectively, “forward-looking statements”). All statements, other than statements of historical fact, that address Canadian Securities Administrators National Instrument 43-101 (“NI 43-101”) - Standards of Disclosure for Mineral
activities, events or developments that Sun Metals Corp. (“Sun Metals”) believes, expects or anticipates will or may Projects, which requires disclosure of mineral resource information. U.S. reporting requirements for disclosure of
occur in the future including, without limitation: statements with respect to those that address mineralization at the mineral properties are governed by the United States Securities and Exchange Commission Industry Guide 7, which
Stardust project; the 2019 program and winter camp including mineralized drill intervals, relative size of sets forth substantially different guidelines than NI 43-101.
mineralization at the 421 zone, geophysical surveys, use of instrumentation data, and goals and expectations
pertaining to metallurgical results; the 2020 program and the use of flow-through dollars; the potential quantity
This presentation does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the
and/or grade of minerals; the growth potential of the Stardust project; planned mining methods and mineral
United States. The securities have not been and will not be registered under the United States Securities Act of 1933,
processing; break-even cost for the Stardust project; British Columbia as a reliable jurisdiction for mining;
as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United
prmeasuredoposed timing of exploration and development plans; potential conversion of inferred resources to and
States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an
Forward Looking Statements
indicated resources; potential extension and expansion of mineral resources the focus of the Company in the coming
exemption from such registration is available.
months; and the release of Sun Metals common shares from escrow are forward-looking statements. These forward-
looking statements reflect the current expectations or beliefs of Sun Metals based on information currently available
to Sun Metals and often use words such as "seeks", "anticipates", "plans", "continues", "expects", "projects", "predicts", Compliance with NI 43-101
"potential", "targets", "intends", "believes", "potential", "budgets", "schedules", "estimates", "forecasts”, “may” or
variations thereof or the negative of any of these terms. All forward-looking assumptions are made based on the Certain information in this presentation is derived from the results of a mineral resource estimate of the Stardust
current beliefs of the management of Sun Metals as well as various assumptions made by them and information Project prepared by GeoSim Services Inc in accordance with NI 43-101. A copy of the technical report for the Stardust
currently available to them. Generally, these assumptions include, among others: the presence of and continuity of Project entitled “Stardust Project - Ni 43-101 Technical Report - Omineca Mining Division, British Columbia” with an
metals at the Stardust Project at estimated grades; the availability of personnel, machinery and equipment at effective date of January 8, 2018 is available on the Sun Metals website at http://www.sunmetals.ca or on Sun Metals
estimated prices and within estimated delivery times; currency exchange rates; metals sales prices and exchange rates SEDAR profile at www.sedar.com.
assumed; tax rates and royalty rates applicable to the proposed mining operation; the availability of acceptable
financing; anticipated mining losses and dilution and success in realizing proposed operations.
The scientific and technical information in this presentation has been reviewed, verified and approved by Ian Neill,
P.Geo Vice President Exploration of Sun Metals, who is a qualified person as defined by National Instrument 43-101 –
Forward-looking statements are subject to a number of risks and uncertainties which may cause the actual results to Standards of Disclosure for Minerals Projects.
be materially different from any future results expressed or implied by such forward-looking information, including,
risks related to the speculative nature of the Company’s business; the Company’s formative stage of development; the
Company’s financial position; possible variations in mineralization; conclusions of future economic evaluations; Sun Metals has not independently verified any of the data from third party sources referred to in this presentation or
business integration risks; changes in project parameters as plans continue to be refined; current economic ascertained the underlying assumptions relied upon by such sources. Sun Metals does not assume any responsibility
conditions; future prices of commodities; fluctuations in the securities market; fluctuations in currency markets; for the accuracy or completeness of this information or for any failure by any such other persons to disclose events
change in national and local government, legislation, taxation, controls, regulation and political or economic which may have occurred or may affect the significance or accuracy of any such information but which are unknown to
development; inability to obtain adequate insurance to cover risks and hazards; possible variations in grade or Sun Metals.
recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate
as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; The information contained in this presentation does not purport to be all-inclusive or to contain all information that
delays in permitting; possible claims against the Company; the timing of future economic studies; labour and prospective investors may require. Prospective investors are encouraged to conduct their own analysis and review of
employee disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or Sun Metals and of the information contained in this presentation. Sun Metals has not authorized anyone to provide
the completion of exploration; relationships with and claims by local communities and First Nations; and title to investors with additional or different information, and any such information should not be relied upon.
properties
Any forward-looking statement speaks only as of the date on which it was made, and except as may be required by
applicable securities laws, Sun Metals disclaims any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or otherwise. Although Sun Metals believes that the
assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be put on such statements due to their
inherent uncertainty.
Key Metrics
• High Grade
• Polymetallic – Copper and Gold
• Tier 1 Jurisdiction – British Columbia
• Great location:
Infrastructure, Communities, Climate
• Experienced Team
3
Copper Fundamentals
10 Year View of Copper Inventory vs Price Source: Chris Chang Raymond James Original Data from: Kitco Metals, Bloomberg, Factset
Tier 1 Jurisdiction
Tier 1 Jurisdiction
• Stable political
environment
• Rule of Law
• Good infrastructure
including electrical
Stardust grid and ports
Project • Predictable regulatory
environment
• Strong supportive
government programs
• Geologic endowment
Opportunity
Stardust Property – A significant polymetallic district covering 96 km2 in northcentral BC
• 100% ownership - no royalty • 2,200 metre corridor of mineralization including four
mineralization styles
• Exploration history dating back to 1944
• Canyon Creek Copper-Gold zone is open for expansion and
• Activity to date: ~$37 million invested1:
contains a resource2
• 455 holes drilled (108,000 m)
• 421 zone is a disruptive discovery.
• 8,600 soil samples
• 425 line kilometers of mag and 390 line • High-Grade Copper-Gold project in a Tier 1 jurisdiction
kilometers of EM (pre 2018)
Canyon Creek Zone Resource Estimate2
Category Tonnes Copper (%) Gold (g/t) Silver (g/t) Cu (Eq.) (%)
Indicated 985,000 1.34 1.59 36.8 2.92
Inferred 1,985,000 1.24 1.72 30.5 2.65
1 Estimated and approximate value in 2020 dollars: (108,000 m X $300 per m) + $5,000,000 in other surveys and work)
NI 43-101 compliant resource estimate, completed by Qualified Person Ron Simpson, P.Geo. of GeoSim Services Inc., January 2018. For further detail, see press release dated January 8, 2018 and the
7
2
Stardust Project NI 43-101 Technical Report both available at www.sunmetals.ca
Stardust Property
• Located 4-hour
drive northwest of
Prince George,
B.C.
• Takla First Nation
Territory.
8
2019 Exploration Progress
421 Zone Exploration
• 28 drill holes
• 14,066 metres
• 21,266 metres equivalent
• High Success Rate: 15 of 28
• Average Length of Intercept: 34.4 m
• Intersection range: 3 – 142 m
• Average Intercept Grade: 3.10% CuEq
9
421 zone – Intersected Length and Grade
10421 zone – Vision Before Drilling
Drill hole 421
11421 zone – Current Interpretation
12Why Explore for Deposits like Stardust
Arizona Mining: South 32 bought for
Taylor Deposit CAD $1.8 Billion
JDS Silver: Coeur bought for
Silvertip US $250 Million
Santa Eulalia Over 300 years of
continuous operations
MAG Silver: Recent Market Cap
Juanicipio Deposit CAD $1.1 Billion
13Key Metrics
• High Grade
• Polymetallic – Copper and Gold
• Tier 1 Jurisdiction – British Columbia
• Great location:
Infrastructure, Communities, Climate
• Experienced Team
14Share Structure and Ownership
Common Shares
Insiders, Founders & Board (24%) 35,163,101
Teck (9%) 13,039,546
Float (67%) 99,801,865
Total 148,004,512
Options and Warrants*
Warrants: WA exercise price $0.35 25,801,600
Options: WA exercise price $0.26 9,472,667
Fully Diluted 183,278,779
• As of January 14, 2020
15Corporate Inquiries 604.683.7790 info@sunmetals.ca SUNM:TSX.V 1900 – 1055 West Hastings Street Vancouver, BC V6E 2E9 www.sunmetals.ca
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