Thunder Bay North and Escape Lake Projects - Corporate Presentation | February 2020 - Clean Air Metals

Page created by Andrew Campos
 
CONTINUE READING
Thunder Bay North and Escape Lake Projects - Corporate Presentation | February 2020 - Clean Air Metals
Thunder Bay North
and Escape Lake Projects
  Corporate Presentation | February 2020
Thunder Bay North and Escape Lake Projects - Corporate Presentation | February 2020 - Clean Air Metals
Forward Looking Statements

  Information set forth in this presentation may contain forward-looking statements. Forward-looking statements
  are statements that relate to future, not past events. In this context, forward-looking statements often address
  a company's expected future business and financial performance, and often contain words such as
  "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may",
  "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-
  looking statements involve known and unknown risks, uncertainties and other factors which may cause our
  actual results, 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 statements. Such factors
  include, among others, risks associated with project development; the need for additional financing;
  operational risks associated with mining and mineral processing; fluctuations in commodity prices; title matters;
  environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition;
  dilution; the volatility of our common share price and volume; and tax consequences to U.S. Shareholders.
  Forward-looking statements are made based on management's beliefs, estimates and opinions on the date
  that statements are made and the Company undertakes no obligation to update forward-looking statements if
  these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against
  attributing undue certainty to forward-looking statements.

  Abraham Drost, P.Geo. a Qualified Person under NI 43-101, has reviewed and approved dissemination of the
  content herein.

                                                         2
Thunder Bay North and Escape Lake Projects - Corporate Presentation | February 2020 - Clean Air Metals
Introducing Jim Gallagher, Executive Chairman

    “The recent acquisition of the Lac des Iles Mine by Impala Platinum
    underscores the globally recognized significance of the PGE-rich
    Thunder Bay North region. Clean Air Metals has consolidated two
    prospective PGE properties with a significant amount of historical
    exploration drilling with some impressive PGE-Ni-Cu intercepts in
    North America and is focused on expanding these results.”

    Jim Gallagher
    Executive Chairman

                                       3
Thunder Bay North and Escape Lake Projects - Corporate Presentation | February 2020 - Clean Air Metals
Creation of Clean Air Metals Inc.     (Presently Regency Gold Corp. V:RAU:H)
Canada’s Newest High Grade Palladium-Platinum Exploration Company
Clean Air Metals Inc.’s Core Attributes

✓   2 high quality platinum-palladium projects in the Thunder Bay region (Pt-Pd 1:1 ratio)

     •   Thunder Bay North – Current Lake Deposit with an Historical Indicated mineral
         resource of 741,000oz PtEq. (9.8mT @ 2.3gpt PtEq) based on 2012 metal prices

     •   Escape Lake – Rio Tinto asset with previously drilled high grade zone and open
         geologically; mineral intercepts not previously published

✓   Significant historical exploration across assets (808 drill holes total; 647 ddh define
    resource

✓   Best-in-class management and board, including: incoming Executive Chairman Jim
    Gallagher (recently CEO of North American Palladium prior to sale to Impala Platinum)
    and Abraham Drost, incoming CEO, former Senior Officer of a number of successful
    junior mining companies including Sabina, Premier Royalty and Carlisle.

✓   $5M pro forma cash to fund exploration expenditures

✓   Shareholder value creation by upgrading existing drill-indicated targets to resources,
    expanding known zones along strike and further targeting the feeder zone source areas
    for high grade massive sulphide deposits.

                                                4
Thunder Bay North and Escape Lake Projects - Corporate Presentation | February 2020 - Clean Air Metals
Management and Board of Clean Air Metals Inc.

Jim Gallagher P.Eng. Executive Chairman
Mr. Jim Gallagher, P.Eng. Mr. Gallagher is a seasoned mining executive and Professional Engineer with a 35-year track record of optimizing
operational performance, leading successful projects and consulting with global scope. Mr. Gallagher was most recently the President and CEO of
North American Palladium Ltd. (“NAP”). During his 6 year tenure at NAP, Mr. Gallagher rebuilt the senior management team, introduced advanced
technologies and mining methods at the Lac des Iles Mine and achieved an operational and financial turnaround that made the Lac des Illes Mine
one of the largest and lowest cost underground mines in Canada, culminating in the 2019 sale of NAP for $1 billion to Impala Platinum. Prior to NAP,
Mr. Gallagher spent 24 years with Falconbridge Inc., in a variety of operational and project management roles and eight years as Global Director of
Mining for Hatch, leading one of the largest mining EPCM teams in North America. Mr. Gallagher is currently the chair of the technical committee on
the board of Directors for Harte Gold and also serves on the board of the Ontario Mining Association.

Abraham Drost M.Sc, P.Geo. CEO & Director
Mr. Drost is a former President and Director of Sabina Gold and Silver (SBB:TSX), former President and Director of Sandspring Resources Inc.
(SSP:TSXV) and former CEO, Director of Source Exploration Corp. (SOP:TSXV) now Mexican Gold Corp. Mr. Drost is a former Chairman of
Premier Gold Mines USA Inc. and the former CEO and founding Director of Premier Royalty Inc. (NSR:TSX), prior to the sale to Sandstorm Gold. He
was a former CEO and then Director of Mega Precious Metals Inc. (MGP:TSXV) at the sale to Yamana. Mr. Drost was most recently CEO and
Director of Carlisle Goldfields Ltd. (CGJ:TSX) at the sale to Alamos (AGI:TSX).

Dawn Evans-Lamswood, MSc, P.Geo VP-Exploration
Ms. Dawn Evans-Lamswood’s career spans two decades of exploration experience exploring the Voisey’s Bay district after joining the Archean
Resources drilling team in 1995, immediately following the discovery of the Ovoid Zone. Her career continued in the area with Inco and its successor
company Vale Inco, recently retiring with the position of Exploration Manager, Brown Field Exploration, Vale North Atlantic. Ms. Evans-Lamswood
has co-authored numerous publications on the Voisey’s Bay deposit and district.

Alan McTavish, MSc, P.Geo VP-Project Manager
Allan MacTavish is a specialist in PGE-Cu-Ni exploration and obtained a B.Sc. (Honours) Degree in Geology from Laurentian University in 1977 and
a M.Sc. Degree in Geology from Lakehead University in 1992. He has been actively involved in the mineral exploration industry since 1975 with
various major and junior mining/mineral exploration companies and has also worked as a Field Geoscientist for the Ontario Geological Survey. He
has been Exploration Manager, Canada for Magma Metals (Canada) Limited and its successor Panoramic PGMs (Canada) Limited since May
2007, and is based in Thunder Bay, Ontario. He and his staff were instrumental in bringing the Magma/Panoramic Thunder Bay North Pt-Pd-Cu-Ni
deposit from a newly discovered raw prospect to a well-defined, polymetallic, magmatic sulphide deposit with a 9.8 million tonne indicated resource.
Before joining Magma Metals/ Panoramic Resources he was a Consulting Geologist specializing in PGE-Ni-Cu exploration.

                                                                         5
Thunder Bay North and Escape Lake Projects - Corporate Presentation | February 2020 - Clean Air Metals
Description of Core Assets and 2020 Objectives

Core Assets – Thunder Bay North Property                Objectives for 2020/21

✓ Significant amount of historical exploration          ✓   Consolidate two high-grade platinum-
  drilling since 2005                                       palladium projects in Northern Ontario

Thunder Bay North Project                               ❑   Complete drill programs at each project
•   To be acquired from Panoramic Resources             ❑   Expand the Escape Lake mineralized
    via Benton Resources as part of Thunder Bay             intrusion and conduit trend
    North Project
•   Current Lake Deposit - 2012 mineral                 ❑   Target massive sulphide PGE-Ni-Cu
    resource: indicated 741,000 oz at 2.3gpt PtEq           mineralization in the conduit source feeder
    and inferred 49,000 oz at 2.9gpt PtEq                   systems at Escape Lake and Current Lake

•   Massive sulphide intercepts including 2.6m at       ❑   Release an updated mineral resource
    97.98gpt Pd+Pt+Au and 14.9% Cu+Ni                       estimate consolidating both former project
                                                            areas
Escape Lake Project
                                                        ❑   Accretive growth and shareholder value
•   To be acquired from Rio Tinto via Benton
    Resources
•   High grade zone drilled by Rio Tinto in
    2010-2012 including intercept of 33.4m at
    7.28gpt Pt+Pd+Au and 2.26% Cu+Ni

                                                    6
Thunder Bay North and Escape Lake Projects - Corporate Presentation | February 2020 - Clean Air Metals
Thunder Bay North Area PGE(-Cu-Ni) Asset Locations

                                                          Hwy 527
                                                                                  Escape Lake

                         Impala Canada
                      Las des Iles Mine                                            Current Lake
                        ~5M oz Palladium                                             Deposit
                    (75M tonnes @ 2.14g/t Pd)

               Impala Canada & Transition Metals
                                                                              135 kV Tx line
                    Sunday Lake Deposit
               41.2m @ 5.51g/t PGM and 0.57% Cu
                     (XTM PR April 29,2019)

                         Transition Metals
                  Saturday Night Intrusion                     Clean Air Metals
                6.25m @ 1.07g/t Pt+Pd+Au (DDH)

             Source: S&P Global Market Intelligence

                                                      7
Thunder Bay North and Escape Lake Projects - Corporate Presentation | February 2020 - Clean Air Metals
Aerial View of Thunder Bay North (TBN) and Escape Lake Projects

       Escape Lake

                                   8
Thunder Bay North and Escape Lake Projects - Corporate Presentation | February 2020 - Clean Air Metals
3D View of Current Lake and Escape Lake Intrusive Complex

                                         Current Lake Intrusion &
                                              Resource Area

                                               Feeder Zone
                                             Phase 3 proposed
      Escape Lake Intrusion & High                drilling
          Grade Zone (Open)
      Phase 1, 2 proposed drilling

                                     9
Thunder Bay North and Escape Lake Projects - Corporate Presentation | February 2020 - Clean Air Metals
Escape Lake Project – Phase 1 & 2 Proposed Drilling

                                   10
3D Grade Distribution of Current Lake and Escape Lake Deposits

                         Beaver Lake Zone
                     2.6m@97.98gpt Pd+Pt+Au
                          +14.9% Cu+Ni
                                                      Feeder Zone
                       Escape Lake Zone       Massive Sulphide Source Area -
                   33.4m@7.28gpt Pd+Pt+Au               Phase 3
                     +2.26% Cu+Ni (Open)
                      Phase 1,2 Expansion

                                         11
Escape Lake Intrusive Complex – Schematic Cross-Section

                   Includes Highlighted Drill Hole Results

                                     12
TBN Project – Geophysical Interpretation Using Magnetics, Drilling, LIDAR

                                                                025 Intrusions
                                                                                               Greenwich Lake
                                                                                                Intrusion
                                                                           801 Diamond Drill Holes
                                                                                 185,516m

                                                                        Current Lake Deposit
        Escape Lk – Steepledge Lk             Steepledge Lake
           Minl’d Conduit trend                   Intrusion

                                                                                 Southeast Anomaly Area
                                                                                         (SEA)
    Lone Island Lake                           Quetico Fault
       Intrusions

                                                          Escape Lake Fault

                             EWC Intrusions

                                       Conduit System Source Areas for
             0_________ 2km             Intensive Exploration Followup

                                                        Merged Magma 2006/2008/2010 UTS Airborne Magnetic Surveys

                                                   13
Current Lake Intrusive Complex – Transported Sulphide Model Hypothesis:
Sulphide Entrainment From a Feeder Zone Source Area

•   Established magma system (Keweenawan-age intrusion with subsidiary chonolith)
•   Sulphide saturation upstream (at depth ‘lower magma chamber’); currently not observed
•   Accumulation of Ni-Cu-PGE sulphides with sulphide fractionation
•   Transport of a fractionated portion of the sulphide liquid higher into the system (currently
    defined mineralization).

                                                14
TBN and Escape Lake Deposits
Similar to Other High Grade Conduit Systems

                                                                                           3 Mt Ni
                                                                                           4Mt Cu

    * Footprints (to scale) of magma conduits hosting “world class” Ni-Cu-(PGE) deposits

                                                         15
Project Highlights

•   Current Lake Deposit has a 2012 JORC-compliant Historical Indicated Mineral
    Resource in various zones of 741,000 ounces at 2.3gpt PtEq Indicated and 49,000
    ounces at 2.9gpt PtEq Inferred

•   Current Lake Deposit is primarily a disseminated sulphide deposit with high sulphide
    tenor and contains multiple intersections of massive sulphide including an intercept of
    2.6m @ 97.9gpt Pt+Pd+Au and 14.9% Cu+Ni in drill hole BL 10-197

•   Escape Lake Project has a high grade zone drilled by Rio Tinto in 2010-2012
    including an intercept of 33.4m of 7.28gpt Pt+Pd+Au and 2.26% Cu+Ni and is open
    geologically

•   Current Lake Deposit and Escape Lake mineralization has a 1:1 ratio of Platinum to
    Palladium with excellent potential for further high grade discoveries along an interpreted
    mineralized conduit intrusive system analogous to a number of world-class deposits
    such as Noril’sk and Jinchuan.

                                               16
Project Highlights (continued)

•   Regency/Clean Air Metals Inc. acquires significant history of exploration in the
    project by Panoramic and Rio Tinto since discovery in 2005, with some of the highest
    platinum and palladium metal grades and thickness drilled in the Midcontinent Rift
    centred around Lake Superior

•   Magnetotellurics (MT) and other geophysical surveys by the former Voisey’s Bay
    technical team are planned for the source area intrusions and possible feeder system
    of the Current Lake and Escape Lake intrusions. The presence of multiple massive
    sulphide lenses in this transported disseminated sulphide system may suggest
    entrainment from a larger sulphide source.

•   Geopolitically, Northern Ontario is one of the most stable mining jurisdictions in the
    world. The combined Thunder Bay North and Escape Lake Project is located 55 minutes
    drive NE from the City of Thunder Bay and 45 minutes SE of Canada’s operating Lac
    des Iles Palladium Mine and Mill. It is relatively close to high voltage power and
    adjacent to a 99MW wind farm.

                                             17
Transaction Description

Acquisition of Benton Resource Option                     Change of Business
                                                          •    Name change to Clean Air Metals Inc.
Regency Gold Corp. has executed a definitive
                                                               (TSXV:AIM) – conditional approval
agreement with Benton Resources to acquire its:
1.   Right to purchase 100% of Panoramic                  Concurrent Financing
     Resource’s Thunder Bay North (TBN)                   •    Regency has raised C$15M via a brokered
     Property for C$9.0M total                                 private placement of subscription receipts
2.   Right to purchase 100% of Rio Tinto’s                •    Shareholder vote is required to approve
     Escape Lake Project C$6.0M total                          share issuance and change of name
Regency will issue the following to each of
                                                          Use of Proceeds:
Benton Resources, Panoramic Resources, and
Rio Tinto:                                                1.   $4.5M to Panoramic for TBN Project down
Benton      24,615,384 shares of Regency                       payment
Resources 0.5% NSR on each project                        2.   $5M Expand Escape Lake mineralized
                                                               intrusive conduit trend (Phase 1,2). Q1/20
Panoramic    C$4.5M on closing
                                                               start
Resources    C$1.5M on each of the 1st, 2nd, and
                                                          3.   $1.0M Target massive sulphide PGE-Ni-Cu
             3rd anniversaries of closing
                                                               mineralization in the conduit source feeder
Rio Tinto    C$3M on signing of agreement (paid                system (Phase 1,2)
             by Benton)                                   4.   $1.0M G&A for balance of 2020
             C$1M on each of the 1st, 2nd, and 3rd
             anniversaries of closing

                                                     18
Capital Structure – Q1/2020

Current Capital Structure:
Regency Gold Corp.

 Shares Issued                                                                           25.48M

 Options @ 0.12                                                                          1.275M

 Fully Diluted                                                                           26.76M

 Cash                                                                                     $1.5M

  Current Market Cap FD                                                              ~$3.5M
Pro Forma Capital Structure:
Clean Air Metals Inc.
*Including 24.6M shares allocated to Benton Resources Inc. and concurrent financing at
indicative pricing of $0.20 per subscription receipt (common share + half warrant)

  Shares Issued                                                                     126.37M

  Options + Warrants                                                                     39.00M

  Fully Diluted                                                                     165.37M

                                                            19
Advisory Team / Consultants (Post-Closing)

Bruce Mackie Senior Project Advisor
Mr. Bruce W. Mackie, P. Geo., a senior Exploration Geologist with 38 years of progressive experience in all phases of exploration
program management from conceptualization acquisition, budgeting, evaluation and ore reserve definition.

Derek Wilton, PhD, P.Geo Geological Advisor
Dr. Derek Wilton is Honorary Research Professor (from 1995) in the Department of Earth Sciences, Memorial University. Most of his
research has been conducted in Labrador, from Cape Chidley to the Straits to Labrador West. He has authored or co-authored over
40 papers in referenced journals, 30 books, 45 referenced government papers, over 180 published abstracts, and in excess of 225
contract reports for industry government and aboriginal groups. In 2013, he received the inaugural “Geoscientist of the Year” award
from the NL section of the Canadian Institute of Mining and Metallurgy (CIM). He was elected an International Fellow of the Explorers
Club in 2010, and elected as Fellow of the Royal Canadian Geographical Society in 2013. His research was recognized by Royal
Canadian Geographical Society as one of “Seven Amazing Projects in 2018”

Brian Bengert, MSc, P.Geo Geophysical Advisor
Brian received a B.Sc. in Geophysics in 1994, and later obtained his M.Sc. from York University in 1996 specializing in Time series
and Data Analysis. Upon graduation, Brian spent five years as a field Geophysicist working for Quantec Geoscience in North and
South America. Brian worked as a geophysicist 15 years for Inco with major responsibility for the Voisey’s Bay nickel project and was
a principal member of the team that discovered the deposit that would become the future underground operation. Over his career,
Brian has gained extensive experience collecting, processing and interpreting geophysical data. He has been involved in the
development of several geophysical methodologies. His experience was gained from projects covering a wide spectrum of
commodities, including nickel, copper, gold, iron, zinc, lithium, coal, and diamonds.

                                                                  20
Palladium and Platinum Supply & Demand Trends

  Palladium breakout
    based on supply
 dynamics. Increasingly
  stringent global auto
  emission standards
    driven by Climate
   Change imperative

                      Current Pricing

                              • Platinum $970/oz
                              • Palladium $2055/oz
                      Source: Bloomberg (market close on January 7, 2020)

                                                     21
Environmental Standards Drive Demand

                                22
Palladium Supply Dynamics

                            23
Aboriginal Community Traditional Land Area

•   Regency/Clean Air Metals Inc. recognizes that the Thunder Bay North and Escape
    Lake project areas are subject to Aboriginal and treaty rights which are protected
    under Section 35 of the Constitution Act, Canada.

•   Regency/Clean Air Metals Inc. recognizes Aboriginal ties to the land and the right to
    quiet use and enjoyment of traditional activities such as hunting, fishing, trapping and
    gathering.

•   Regency/Clean Air Metals Inc. pledges integrity and meaningful consultation with
    affected First Nation communities in the hope of achieving community consensus.

                                               24
For Further Information:

                       Abraham Drost, M.Sc., P.Geo
                             CEO & Director
  1004 Alloy Drive
Thunder Bay, Ontario                807.252.7800
 P7B 6A5 Canada               adrost@cleanairmetals.ca
                         25
APPENDIX

 Massive Sulphide
Current Lake Deposit
 ~60-115 g/t Pt+Pd,
 8-15% Cu, 3-5% Ni
       26
TBN Project – Current Lake Deposit
Historical Mineral Resource and Geological Controls

                                    27
TBN – Current Lake Deposit – Historical Mineral Resource (2012)

   https://panoramicresources.com/wp-content/uploads/2018/10/PGM-resources-and-reserves-slides-30-June-2018.pdf

                                                                 28
Current Lake Project Shows Ramp-accessible Underground Mining Potential

  Potential future ramp access high-grade
      stope development opportunities

                                            29
Current Lake Intrusive Complex – Model Drill Assay Sections

                                   30
Bridge Zone – Model Drill Assay Sections

                                   31
Beaver Lake Zone – Model Drill Assay Sections

                                   32
Escape Lake 2020 – Phase 1 & 2 – Section 3

                                  33
Escape Lake Proposed Drilling – Phase 1 & 2 – Oblique View

                                  34
Possible Toll Milling Routes

                               35
You can also read