Advanced Stage Zinc Exploration in Ireland - RESOURCES CORP - October2020 TSX.V:ZNG|OTC:GRLVF|FRA:3GE - Group Eleven Resources
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RESOURCES CORP. Advanced Stage Zinc Exploration in Ireland October 2020 TSX.V: ZNG | OTC: GRLVF | FRA: 3GE
Important Notice
This Presentation is given by Group Eleven Resources Corp. (“the Company”), incorporation number BC1098004, registered office at 1050-400 Burrard Street, Vancouver,
BC, Canada, V6C 1M2 and is made subject to the terms outlined below. No securities regulatory authority has expressed an opinion about the information contained in this
Presentation and it is an offence to claim otherwise.
This document and its contents may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or disclosed or published, in whole or in part,
for any purpose. This document is being provided for information purposes only and thus viewing, downloading, reproducing, copying or distributing this Presentation may
be restricted by law in certain jurisdictions.
Except for statements of historical fact relating to the Company, certain statements in this Presentation may constitute forward-looking information, future oriented
financial information, or financial outlooks (collectively, “forward-looking information”) within the meaning of Canadian securities laws. Forward-looking information may
relate to this Presentation, Company’s future outlook and anticipated events or results and, in some cases, can be identified by terminology such as “may”, “will”,
“expected”, “estimate”, “potential” or “possible” or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner
to, those with respect to commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the
timing and amount of future production, the timing of construction of the proposed mine and process facilities, capital and operating expenditures, the timing of receipt of
permits, rights and authorizations, and any and all other timing, development, operational, financial, economic, legal, regulatory and political factors that may influence
future events or conditions, as such matters may be applicable. In particular, this Presentation contains forward-looking statements pertaining to proposed expenditures for
exploration work, and general and administrative expenses.
Such forward-looking statements are based on a number of material factors and assumptions, and include the ultimate determination of mineral reserves, if any, the
availability and final receipt of required approvals, licenses and permits, sufficient working capital to develop and operate any proposed mine, access to adequate services
and supplies, economic conditions, commodity prices, foreign currency exchange rates, interest rates, access to capital and debt markets and associated costs of funds,
availability of a qualified work force, and the ultimate ability to mine, process and sell mineral products on economically favourable terms. While the Company considers
these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Actual results may vary from such forward-looking
information for a variety of reasons, including but not limited to risks and uncertainties disclosed in this Presentation. The Company has no specific policies or procedures
for updating forward-looking information. Forward-looking statements are based upon management’s beliefs, estimates and opinions on the date the statements are made
and, other than as required by law, the Company does not intend, and undertakes no obligation to update any forward looking information to reflect, among other things,
new information or future events. Potential investors are cautioned against placing undue reliance on forward-looking statements.
This Presentation does not constitute investment advice or a recommendation regarding the securities of the Company or an offer or invitation to subscribe for securities of
the Company or its affiliates.
Scientific and technical information in this Presentation, excluding information related to other companies obtained from publicly available sources, has been approved by
David Furlong, P Geo who is a qualified person for the purposes of National Instrument 43 101 and who is not independent of the Company. Scientific and technical
information is derived from the technical reports entitled “NI 43-101 Independent Report on a Base Metal Exploration Project at Ballinalack, County Westmeath, Ireland”
with an effective date of January 11, 2019, “NI 43-101 Independent Report on the Zinc-Lead Exploration Project at Stonepark, County Limerick, Ireland” with an effective
date of April 26, 2018, and “NI 43-101 Independent Report on a Base Metal Exploration Project at Silvermines, County Tipperary, Ireland” with an effective date of February
28, 2017, each of which was prepared for the Company by EuroGeol Dr. John G. Kelly, PGeo, MIMMM, MIQ and EuroGeol Paul Gordon, PGeo, MSc of SLR Consulting
(Ireland) Ltd. in accordance with National Instrument 43-101. Complete copies of the technical reports are available for review, in colour, on the System for Electronic
Document Analysis and Retrieval (SEDAR) located at the following website: www.sedar.com.
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 2
Investment Highlights, Vision and Outlook
Investment Highlights
Exciting New Discovery in a Large, Emerging Zinc Camp in Ireland
Zinc price up nearly 40% over last 6-months on China demand growth and lower global supply
Zinc Market
Prospect of zinc-batteries emerging as grid-power storage solution
Politically Stable, Democratic Jurisdiction
Ireland - Safe, Mining-
One of the Largest Zinc Miners in Europe and Host to Some of World’s Largest Zinc Deposits
Friendly Jurisdiction
Modern and Thriving Mining Industry Continuously from 1960s to Present
Strong Team Deep Experience in Exploration, Capital Markets and Legal
Recently Completed 5-Year Period Largely Focussed on Regional Exploration (“Big Think”)
Focussed on Drilling
Now Focussed on Drilling
Dominant and Large License Position in Limerick Region (Stonepark / PG West)
Dominant Ground Position
Quickly Emerging Frontier for Zinc Exploration in Ireland
in a Hot Camp
Large-Scale Potential (similarities to Boliden’s Navan Zinc Deposit)
Stonepark MRE – 5.1mt of 11.3% Zn+Pb (Inferred; NI43-101; owns 76.56% interest)
Two Zinc Deposits
Ballinalack MRE – 5.4mt of 8.7% Zn+Pb (Inferred; NI43-101; owns 60% interest)
Recently Discovered High-Grade Massive Sulphides at Carrickittle Prospect (PG West; 100%)
Recently Discovered
G11-2840-04 intersected 10.3m of 19.6% Zn+Pb and 43 g/t Ag (approximately true width)
Shallow, High-Grade
Shallow – Mineralization is Within 100m of Surface
Significant Shareholders Glencore, Michael Gentile, MAG Silver, Teck
Aligned with Shareholders Insiders Founded Group Eleven and Remain Large (>5%) Shareholders
Active Drilling with Active Drill Program in Q3 and Q4 2020
Upcoming Catalysts Drilling at PG West (Carrickittle) and Stonepark
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 4
Recently Discovered High-Grade at Carrickittle (PG West)
Hole G11-2840-04 (announced July 2020) intersected 10.3m of 19.6% Zn+Pb and 43 g/t Ag, including:
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 5
Vision and Outlook
Vision
• Discover Ireland’s next major zinc deposit
Focus and Catalysts
Drilling-Focus in 2020
• Transitioning to drill-focussed target testing
• Focussing the land position (surrendering non-core ground)
Near-term catalysts
• Carrickittle | drilling (follow-up) | start and results Q3/Q4
• PG West | drilling (regional targets) | results in Q3/Q4
• Stonepark | drilling (resource step-outs) | results in Q4
Significant Shareholders (basic)
• Glencore Canada Corp. – 26.4%
• Michael Gentile – 10.3%
• MAG Silver Corp. – 8.0%
• Teck Resources Ltd. – 2.9%
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 6
Why Zinc?
Why Zinc?
Global Zinc Inventories at Decade Lows, Zinc Price Muted Due to Covid-19 and US-China Trade War
► Zinc Batteries
Zinc Price vs. LME Inventories (1995 to present)
• Zinc8 (ZincNyx)
• NantEnergy
• EOS-Bryt Energy
• EnZinc | Redflow
► Zinc in Fertilizers
• China: World
Food Program
► Conventional Uses
• Galvanizing steel,
die-casting, alloy
metals
► Mine supply Zinc Price (US$/lb) - 1 Year
• Growing but likely 1.10
impacted by
Covid-19
US$/lb
1.00
► Trade War / Covid-19
• China – speed up
0.90
infrastructure
spend?
Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 8
Why Ireland?
Ireland: one of the largest
zinc miners in Europe and
host to some of the world’s
largest zinc deposits
10Why Ireland?
Rich Jurisdiction - Ranked No. 1 in the World in Terms of Zinc Found Per Square Kilometre
Ireland – Geology and Economics
Ballinalack
• First-world, democratic and politically stable Navan
(Boliden)
• Very prospective for zinc yet underexplored
• Ores typically clean, easy to process, simple
• Infrastructure rich – roads, power, tidewater
• Close to European smelters Tynagh(shut)
• Low economic threshold - rule of thumb zinc
deposit size is 10mt at 10% Zn+Pb Silvermines
Galmoy(Lundin,shut)
Silvermines(shut)
Lisheen(Vedanta,shut)
Ireland – Fraser Institute (2019) PallasGreen(Glencore)
• No. 2 for ‘Policy Perception Index’ Stonepark Gortdrum(Cu,shut)
• No. 7 for ‘Investment Attractiveness’ / PG West
Tralee
Group Eleven asset 0 25 50
Zinc deposit kilometres
Zinc – small deposit or major occurrence
Source: modified from P. Tyler
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 11Team and Corporate Overview
Team – Exploration, Capital Markets and Legal Experience
Board of Directors Management
Dan MacInnis | Chairman (non-executive) Shaun Heinrichs | Chief Financials Officer
• Geologist / Executive • Chartered Accountant with 20 yrs experience
• Retired CEO of MAG Silver (sits on MAG Board) • Including 7 yrs at Ernst & Young LLP
• 40 yrs experience, involved with 7 discoveries • Previously with Veris Gold, VMS Ventures
• Spent 5 yrs in Ireland in late 70s with Noranda
Bart Jaworski | Chief Executive Officer David Furlong | Chief Operating Officer
• Geologist / ex Mining Equity Analyst • Geologist with 24 yrs industry experience
• 24 yrs experience (co-founder of Group Eleven) • Co-Founder of Group Eleven
• Including 12 yrs with Raymond James and Davy • Previously, GM at Rathdowney Resources
• Regional identification of Coffee Creek anomaly
Brendan Cahill | Director (non-executive) Dr Mark Holdstock | Project Manager
• Law and corporate finance expertise • Geologist with over 30 yrs experience
• President & CEO of Excellon Resources Inc. • Led team which discovered >20Mt ‘SWEX
• Previously with Pelangio Group of Companies extension’ at Navan mine in Ireland
• Previously, MD at Aurum Exploration Services
Alessandro Bitelli | Chair, Audit Cmte. (non-exec)
• Chartered Accountant Technical Advisors
• CFO of Lundin Gold (Fruta Del Norte, Ecuador)
• Former CFO of Red Back Resources upon $10bln Peter Megaw | Frank Hallam | John Prochnau
takeover by Kinross in 2010
Ken Klassen | Director (Glencore appointee)
• 20 year career as Canadian M&A and corporate
lawyer at leading Canadian law firms
• Retired (2016) General Counsel of Glencore plc
• Recently on Board of Noranda Income Fund
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 13Capital Structure
Share Owners Average Expiry Shares Ownership (basic)
Structure Exercise Price Date^ (mln)
Basic 114.4
Options Directors $0.19 Feb-23 1.0
Officers $0.16 Oct-22 2.9 Glencore
Consultants $0.20 Sep-23 0.2 26.4%
Employees $0.13 Oct-22 0.7 Others
Warrants Investors $0.14 Apr-21 12.5 46.5%
Glencore $0.14 Oct-22 15.1 M.G.1
F. Diluted 146.8 10.3%
DSUs Indep. Directors n/a n/a 1.2 MAG2
Note: ^ Earliest Expiry Date; above data as of October 7th, 2020 8.0%
Other Items Teck3 Insiders
2.9% 5.8%
Working Capital (Q2 2020 + new financings) C$2.3 mln
1 M.G. = Michael Gentile (as of
Market Capitalization (as at Oct-07-2020) C$9.7 mln
Oct 7th, 2020)
Daily Avg (65 Day) Trading Volume (TSX-V) 107,600 shares 2 MAG Silver (as of Sept-2020)
3 Teck (as of Sept-2020)
52-wk Trading Range C$0.02-C$0.14
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 14Share Price Performance and News Flow
Price (C$/sh) and Volume | Sep-2019 to Sep-2020 | ZNG-TSXV
2 9 12 15 17 0.13
1 3 4 5 6 7 8 10 11 13 14 16 18 19 20 0.11
0.09
CAD
0.07
0.05
0.03
1 Expl News 1 Corp News 1.5
mln sh
0.5
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
No News Release Description No News Release Description
1 Enters $1.0 mln financing with Glencore (Oct-15-2019) 11 Close Tranche 1 (C$110k) of Glencore PP (May-25-2020)
2 Grants Stock Options (Oct-18-2019) 12 Start of Drilling at PG West (1,000m in total) (May-28-2020)
3 Identifies New Features from Tellus Survey (Nov-13-2019) 13 Enters Separate C$50k Private Placement (Jun-12-2020)
4 Departure of VP Exploration Strategy (Nov-28-2019) 14 AGM Results – Glencore Approved as Control Person (Jun-23-2020)
5 Identifies Anomalous PGM-Ni-Co at Ballinalack (Jan-14-2020) 15 Closes Tranche 2 (C$640k) of Glencore PP (Jun-29-2020)
6 Finds New Prospect (Ballycorkey) at Ballinalack (Mar-19-2020) 16 Intersects 10.3m of 19.6% Zn+Pb at Carrickittle (Jul-06-2020)
7 Provides Update on Covid-19 (Mar-31-2020) 17 Announces C$1.0 mln Private Placement (Jul-09-2020)
8 ‘Big Think’ Done, Focus on Limerick, Slash Costs (Apr-21-2020) 18 Placement Upsized to $1.55m (Jul-21-2020)
9 Stakes Two Advanced Cu-Ag Prospects, PG West (Apr-22-2020) 19 Closes Placement (Upsized to $1.55m on Jul-21st) (Jul-30-2020)
10 Enters C$750k Private Placement with Glencore (May-15-2020) 20 Glencore appoints Ken Klassen to the Board (Aug-12-2020)
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 15Key Asset
Stonepark / PG West Project
Searching for the Heart of the Pallas Green Trend
17Stonepark / PG West – Pallas Green Corridor is Near-Term Focus
Dominant License Position in Most Metal-Endowed Zinc Camp in Ireland (outside of Navan)
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Stonepark 18Stonepark – PG West Project ► Stonepark Deposit – Expansion Potential
Stonepark Deposit (Plan View) – Expansion Opportunities
Multiple Highly-Prospective Zones with Encouraging Results from Historic Reconnaissance Drilling
Drilling to Date
>4% Zn
N 2-4% ZnStonepark – Maiden Inferred Mineral Resource
Average Grade of 11.3% Zn+Pb – with the Bulk of Resource Grading at an Impressive 12.1% Zn+Pb
Note: Classification of the MRE was completed based on the guidelines presented by Canadian Institute for Mining (CIM),
adopted for Technical reports which adhere to the regulations defined in Canadian National Instrument 43-101 (NI 43-101).
• Inferred Mineral Resources are at 4.8% zinc equivalent cut-off grade
• Zinc Equivalent (ZnEq) = (NSRPb+NSRZn+Mc+Pc)/(RZn*PZn*(PrZn-ScZn)-RZn*PZn*PrZn*(RoyZn/100))
• ZnEq cut-off grade (calculated from Net Smelter Return) using the following parameters:
o Zinc price of US$3,284/t, recovery 88%; Lead price of US$2,425/t, recovery 80%
o Concentrate grade 60% zinc, 50% lead
o Processing cost of US$21.25/t; Mining cost of US$46.50/t; Treatment charges of US$1.00/t of concentrates
o Payable zinc 85%, lead 94%, with selling cost zinc US$1,257/t metal and lead US$1,026/t metal
o Royalty of 4.5%
• The Inferred Mineral Resource classification is based on geology, trends in mineralisation, drilling spacing, sampling QA/QC,
estimation search pass number and number of samples, and zinc equivalent grade
• Tonnages and metal are rounded to the nearest 100,000 to reflect this as an estimate
• Average In Situ Dry Bulk Density for mineralised material is 3.24 t/m3, based on available data
• Mineralisation wireframes were constructed using a minimum true thickness of 2.0 m, at 2% Zn+Pb natural cut-off
• CSA Global is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political,
or other relevant factors that could materially affect the MRE
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Stonepark 21Stonepark Deposit – Generally Flat-lying and Shallow
Stonepark North is Largest Portion of the Stonepark Deposit
Stonepark North – Cross Section
TSX.V: ZNG, FRA: 3GE 22Stonepark – PG West Project ► Pallas Green Corridor | Carrickittle
Stonepark / PG West – Pallas Green Corridor (Cross-Section)
Main Zinc Mineralizing System May Occur Under the Volcanic Complex
Carrickittle - Kilteely Pallas Green and Stonepark
Newly
45.4mt of 8% Zn+Pb1 and
Discovered
5.1mt of 11.3% Zn+Pb2
High-
Grade at
Carrickittle
Not to Scale –
Conceptual only
Target: Higher-
grade, mirror-image
of Pallas Green?
1 Pallas Green Inferred Resource (Glencore, Resources & Reserves, dated Dec 31, 2019)
2 Stonepark Inferred Resource (Group Eleven news release dated April 17, 2018)
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Stonepark 24PG West – Discovery of Thick, High-Grade at Carrickittle
Testing of Re-interpreted Historic Drilling – Yields 10.3m of 19.6% Zn+Pb and 43 g/t Ag
Cross-Section Cross-Section
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Stonepark 25PG West – Discovery of Thick, High-Grade at Carrickittle
Part of High-Grade Zone (1.10 metres) was Lost and Not Assayed – Underestimating True Grade
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Stonepark 26PG West – Carrickittle (Plan View of Zone 1)
Historic Drilling in Wrong Direction – Near Misses To Now Be Drilled Towards the East
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Stonepark 27PG West – Carrickittle Prospect (Plan View of Zones 1-4)
Four Zones Emerge from Re-Interpretation – Each Zone Hosts Apparent ‘Near-Miss’ Intercepts
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Stonepark 28Stonepark / PG West – Carrickittle Open for >1km to North
Target Area Extends to Recently Identified Kilteely Hydrothermal System and Further to the North
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Stonepark 29Stonepark / PG West – Carrickittle-Kilteely (Cross-Section)
Several ‘Near-Miss’ Intercepts along 1km Strike Extension North of Carrickittle
>1km Strike Extent Along Pallas Green Corridor
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Stonepark 30Stonepark – PG West Project ► Ballywire Prospect
PG West – Ballywire: Potential for Re-Interpretation As Well
Mineralization Drilled in 2019 May Also Be Viewed Through a Carrickittle-Style Re-Interpretation
Pallas Green Corridor
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Stonepark 32Stonepark – Ballywire: Compelling Follow-Up Targets
Follow-Up Drilling at Shallow Targets is Next Logical Step
?
?
?
? ?
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Stonepark 33Catalysts
Upcoming Catalysts
2020
• Carrickittle | Follow-Up Drilling
• Start-up and results - Q3/Q4 2020
• PG West | drilling
• 1,000m within 4-5 drill holes
• Kilteely prospect and regional targets
• Results expected in Q3/Q4 2020
• Stonepark | drilling
• 800m within two holes (step-outs from resource)
• Results expected in Q4 2020
• On-going Discussions with Third Parties
• In order to fund accelerated and more aggressive drill program
35How Do We Stack Up Versus Our Peers?
Resource Grade (ZnEq%) Ranking
Pure Play Zinc-Lead Companies (Excluding Copper and/or Precious Metal Rich Projects)
Carrickittle intercept1
Notes:
1 Hole G11-2840-04
intersected 10.3 metres of
14.6% Zn, 5.0% Pb (19.6%
combined) and 43 g/t Ag
(news release dated July
6th, 2020)
2 3.9mt of 9.2% Zn, 2.9% Pb
(12.1% combined) at
Stonepark North, the
Stonepark North Resource2 largest of three resource
blocks at Stonepark
(Technical Report dated
April 26, 2018)
Source: Data derived from Cormark (Sept-23-2020)
TSX.V: ZNG, FRA: 3GE 37Relative Valuation – Enterprise Value (EV/lb resource)
Pure Play Zinc-Lead Companies (Excluding Copper and/or Precious Metal Rich Projects)
Source: Data derived from Cormark (Sept-23-2020)
TSX.V: ZNG, FRA: 3GE 38Relative Size/Grade vs. Enterprise Value
Tonnage-Grade (X-Y axis) vs. Enterprise Value (Bubble Size)
Source: Data from Cormark (Sept-23-2020)
TSX.V: ZNG, FRA: 3GE 39Appendices
Appendix A - Where Does the Zinc Occur?
In Ireland – Zinc Occurs in the Waulsortian Limestone and Navan Beds
Ballinalack
Navan
Silvermines
Stonepark
Pallasgreen
Oola
Gortdrum
Source: Modified after Dr John Kelly, SLR Consulting, 2018
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 41Appendix B: Cross-Section of an Irish-Type Zinc Deposit
Zinc Typically Occurs Close to Major Faults (which Allowed Mineralizing Fluids to Migrate Upwards)
South North
Faults
Navan
Bed
Target
0 50 100
Source: Modified after Unicorn Mineral Resources Ltd.
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 42Thank You!
RESOURCES CORP. Suite 1050 – 400 Burrard Street Vancouver, BC, Canada V6C 1M2 Bart Jaworski, CEO E: b.jaworski@groupelevenresources.com T: +353 85 833 2463 Shaun Heinrichs, CFO E: s.heinrichs@groupelevenresources.com T: +1 604 630 8839
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