BUILDING THE FUTURE WITH BASE METALS - AUGUST 12, 2019 - BEMETALS
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August 12, 2019 BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com
FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements" and “forward looking information” (as defined under applicable securities laws), based on management’s best estimates, assumptions and current expectations. Such statements include but are not limited to, statements with respect to the plans for future exploration and development of the Pangeni Copper Project, South Mountain Project and the acquisition of additional base metal projects. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts" , "anticipates" "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions, or that events or conditions "will", "would", "may", "can", "could" or "should" occur. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such statements, including but not limited to: risks related to the Pangeni Copper Project and the South Mountain Project; risks related to general economic conditions, actual results of current exploration activities, unanticipated reclamation expenses; fluctuations in prices of metals including copper and other base metals; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in resource estimates, grade or recovery rates; title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of exploration activities, changes in applicable government regulation of mining operations, tax rules and regulations; risks and uncertainties relating to the Acquisition not being completed in the event that the conditions precedent thereto are not satisfied; uncertainties around raising sufficient financing in a timely manner and on acceptable terms; and political and economic developments in countries in which the Company operates. In making the forward-looking statements in this news release, BeMetals has applied several material assumptions, including the assumptions that (1) the conditions precedent to completion of the contemplated transactions with Thunder Mountain will be fulfilled so as to permit the contemplated transactions to be completed within the times described above; (2) all necessary approvals and consents, including shareholder approval, in respect of the contemplated transactions with Thunder Mountain will be obtained in a timely manner and on acceptable terms; (3) that BeMetals will be able to raise additional capital such that the transaction and proposed exploration program will proceed as planned; and (4) general business and economic conditions will not change in a materially adverse manner. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking statements and forward looking information are made as of the date hereof and are qualified in their entirety by this cautionary statement. The Company disclaims any obligation to revise or update any such factors or to publicly announce the result of any revisions to any forward-looking statements or forward looking information contained herein to reflect future results, events or developments, except as require by law. Accordingly, readers should not place undue reliance on forward-looking statements and information. Please refer to the Company’s most recent filings under its profile at www.sedar.com for further information respecting the risks affecting the Company and its business. Cautionary note to United States investors concerning estimates of measured, indicated and inferred mineral resources. This news release contains certain disclosure that has been prepared in accordance with the requirements of Canadian securities laws, including Canadian National Instrument 43-101 (“NI 43-101”), which differ from the current requirements of the U.S. Securities and Exchange Commission (“SEC”) set out in Industry Guide 7. In particular, this news release refers to “mineral resources,” “measured mineral resources,” “indicated mineral resources,” and “inferred mineral resources.” While these categories of mineralization are recognized and required by Canadian securities laws, they are not recognized by Industry Guide 7 and are not normally permitted to be disclosed in SEC filings. United States investors are cautioned not to assume that all or any of measured, indicated or inferred mineral resources will ever be converted into mineral reserves. Under Industry Guide 7, mineralization may not be classified as a “reserve” unless the mineralization can be economically or legally extracted at the time the “reserve” determination is made. "Inferred mineral resources" have a great amount of uncertainty as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian reporting standards; however, Industry Guide 7 normally only permits issuers to report mineralization that does not constitute "reserves" by Industry Guide 7 standards as in-place tonnage and grade without reference to unit measures. Accordingly, information contained in this news release containing descriptions of South Mountain’s mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of Industry Guide 7. John Wilton (Pr.Sci.Nat), President, CEO and Director of BeMetals Corp. is the “qualified person” for the purposes of the National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI- 43-101), and he has reviewed and approved the technical disclosure contained in this presentation. BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 2
THE TEAM - DIRECTORS, MANAGEMENT AND TECHNICAL ADVISORS
CLIVE JOHNSON JOHN WILTON, BSc (Honours) Geology
INDEPENDENT DIRECTOR PRESIDENT, CEO & DIRECTOR
Founder of Bema Gold and B2Gold. Currently serves as President, CEO & Director at 28 years of experience in the minerals industry including roles in target generation,
B2Gold (NYSE: BTG, TSX: BTO) and previously at Bema Gold (NYSE & TSX: BGO). feasibility studies, and business development for base and precious metals. From
Collectively he has raised over US$2 billion in equity and debt financings for the 2010-2017, he was the Regional Exploration Manager of Africa at Antofagasta PLC.
construction of numerous profitable operating mines around the globe. Today, He was also a principal member of both the discovery and resource development
B2Gold has grown to become a leading senior gold producer. teams of the Otjikoto Gold Mine in Namibia with Anglovaal Mining.
TOM GARAGAN, BSc (Honours) Geology DEREK IWANAKA, B.Comm (Marketing)
INDEPENDENT DIRECTOR VICE PRESIDENT, INVESTOR RELATIONS & CORPORATE DEVELOPMENT
Founder of B2Gold. Currently serves as Senior Vice President, Exploration at B2Gold Brings a wealth of investor relations and marketing experience. During his 15+ years in
(NYSE: BTG, TSX: BTO) and previously at Bema Gold (NYSE & TSX: BGO). He has led the mining sector he has built an extensive network of analysts, news letter writers,
the exploration teams which have discovered over 32 million ounces of gold, 6 billion retail investors and institutional investors. He started his career with Bema Gold (NYSE
pounds of copper and 56 million ounces of silver. His teams’ discoveries include & TSX: BGO) in 2002 and has since been instrumental in the mergers, acquisitions, and
Refugio and Cerro Casale in Chile as well as Kupol in far-east Russia. divestures of over 20 gold, silver, nickel, and uranium properties and companies.
ROGER RICHER, BA, LLB KRISTEN REINERTSON
INDEPENDENT DIRECTOR CHIEF FINANICAL OFFICER, CORPORATE SECRETARY & DIRECTOR
Founder of Bema Gold and B2Gold. Currently serves as the Executive Vice Has over 10 years of experience in corporate administration and financial advisory
President, General Counsel & Corporate Secretary of B2Gold (NYSE: BTG, TSX services for public companies in the natural resource sector. She has acted as
BTO) and previously at Bema Gold (NYSE & TSX: BGO). Currently he oversees the Corporate Secretary and Chief Financial Officer for numerous Canadian listed
legal affairs, corporate records and corporate governance of B2Gold. companies.
RICHARD SILLITOE, Ph.D. DENNIS STANSBURY, P.Eng
TECHNICAL ADVISOR - ECONOMIC GEOLOGIST TECHNICAL ADVISOR - MINING ENGINEER
World-renowned economic geologist who has been an economic geological Founder of B2Gold. Currently serves as Senior Vice President, Engineering & Project
consultant for over 40 years and has worked in more than 100 countries. He has made Evaluations at B2Gold (NYSE: BTG, TSX: BTO) and was previously Senior VP,
major contributions to the discovery of a variety of deposits and has authored over Development & Production at Bema Gold (NYSE &TSX: BGO). He has over 40 years of
130 economic geology articles as well as three books. Specializes in deposit modeling engineering, construction, production and management experience at surface and
using field observations and drill core. underground mines in fifteen different countries. Led the development teams in
completing 5 mines on schedule and on budget.
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 3
OUR GROWTH STRATEGY AND COMPETITIVE ADVANTAGE
THE NEW PLAYER IN BASE METAL EXPLORATION & DEVELOPMENT
Assemble a balanced portfolio of base Founded by executives of Utilize the team’s extensive Utilize the founding team’s
metal projects focused on: B2Gold Corp., who have a network to access large deal demonstrated banking
1. Near-term development assets or demonstrated track record of flow of projects and leverage relationships and ability to
producing mines with expansion identifying, funding, their technical expertise to raise over US$2B for global
and exploration potential constructing, and operating select high-value projects for acquisitions, exploration,
numerous mines around the exploration, development construction and operation
2. Exploration properties with world- globe. and production. of numerous mines world-
class discovery potential wide.
Building a base metal company that will focus on efficient delivery of high
value exploration and mining development projects.
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 4
PROVEN TRACK RECORD OF CREATING VALUE
10,286%
GROWTH
1988 2007
Initial Market Acquired by
Capitalization: Kinross for
$34 M $3.5 B Bema Gold/Kinross - Kupol Gold Mine, Russia 4,900%
GROWTH
2007 2019
Initial Market Market
Capitalization: Capitalization:
B2Gold - Otjikoto Gold Mine, Namibia $100 M $4.9 B(1)
2018 2019
Initial TSX-V Market
Market Capitalization:
Capitalization: $25.5 M(1)
BeMetals - South Mountain Zn Project, Idaho
(1) Market capitalizations calculated on August 12, 2019 $12 M
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 5
0.0
5.0
10.0
15.0
20.0
25.0
Izok Lake
Wolverine
Pick Lake/Winston Lake
Pickett Mountain
Prairie Creek ZnEq. Grade %
South Mountain
Red Dog
River Jordan
Kudz Ze Kayah
Tulks South
17.6% ZnEq
Vowell Creek
Estrades
(1) Source: S&P Global Market Intelligence
Myra Falls
Sa Dena Hes
Noonday
Stirling
SOUTH MOUNTAIN
Empire State
South Tally Pond
Caribou
BUILDING THE FUTURE WITH BASE METALS
Lik
Key Anacon
Aston Bay
Goz Creek
Pima
Tulks North
Headway
Kidd Creek
Vine
Murray Brook
Marg
Errington
Tulks Hill
Su Claims
Sun
Langlois
Halfmile-Stratmat
Akie
Blue Moon
Scotia
Macmillan Pass
Red Mountain
Palmer
Matagami
Clear Lake
Garnet Lake
Hackett River
Coulon
Lone Mountain
Mel
Kistabiche
Hermosa
Pend Oreille
Ruddock Creek
Projects in North America
Aldermac
Grade by Zinc Equivalent %(1)
Brabant Lake
Bobby's Pond
Wolf
B-26
Shihan
Doe Run Mines
Hebecourt
Ranked 6th Highest Amongst All Zinc Focused
Pine Point
(Out of 84 projects at production, development and exploration stages)
Tetagouche
IDENTIFICATION OF DEVELOPMENT-STAGE PROJECT
Selwyn
Sabin
Berrigan Lake
Logan
Superjack
Jackpot
Jubilee
Abcourt-Barvue
Blende
ScoZinc
East Tennessee Mines
Nash Creek
Middle Tennessee Mines
TSX-V: BMET | bemetalscorp.com
Indian Mountain
Bathurst Camp
Buchans River
Lake Bond
Bathurst
West Desert
6
Kechika Regional
Round Pond
Jersey-Emerald
SOUTH MOUNTAIN PROJECT
HIGH-GRADE ZINC, SILVER (Au/Cu) in SOUTHWESTERN IDAHO, USA
IDAHO, USA
Trail, BC Canada
• Top Tier Zinc Equivalent (ZnEq.) Resource Grade(1)
o Initial Measured & Indicated Resource: 154.1Kt @ 10.66% Zn, 164 g/t Ag, (17.66% ZnEq.)(2)
o Initial Inferred Resource: 329.5Kt @ 9.70% Zn, 191 g/t Ag, (16.63% ZnEq.)(2)
Hecla |
• Excellent resource growth potential through ongoing drilling programs Silver Valley
• Low capital requirements and short build time expected for potential mine
development due to the project’s: WASHINGTON
OREGON
o High-grade and moderate-size tonnage of the mineral resource Midas Gold | 100 km
Stibnite
o Existing UG infrastructure and year round road access
ecobalt | Idaho Colbalt Project
o Secure land package with the most critical claims on patented ground
IDAHO
o Majority of permits already in place BOISE Champagne Mine
Jordan
o Strong community support for advancing project development Valley, OR SOUTH MOUNTAIN
Integra Resources |
DeLamar PROJECT
(1) Based on data from S&P Global Market Intelligence
(2) Based on the independent technical report titled “National Instrument 43-101 Technical Report Updated Mineral Resource Estimate for the South Liberty Gold | Black Pine
Mountain Project Owyhee County, Idaho USA” dated May 6, 2019, which was prepared by Hard Rock Consulting, LLC in accordance with NI43-101
and is available on BeMetals’ website www.bemetalscorp.com and at www.sedar.com under BeMetals’ SEDAR profile.
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 7
SOUTH MOUNTAIN PLAN VIEW OF UNDERGROUND BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 8
SOUTH MOUNTAIN PROJECT
LONG SECTION WITH RIB SAMPLING
Historical Rib Sampling:
Underground Workings: DMEA Zones 1/2/3; 39.62m @ 16.76% Zinc, 140.91 g/t Silver,
2,400 metres
3.08 g/t Gold, 0.78% Copper, and 0.38% Lead(1)
Sonneman Level Portal
3.81m @ 12.2% Zn, 1.65 opt (56.57 g/t) Ag
7.62m @ 8.56% Zn, 1.15 opt (39.43 g/t) Ag
9.14m @ 3.48% Zn, 1.86 opt (63.77 g/t) Ag Proposed Drill Holes
Targeted Zones
Resource mineralization is open at depth and along strike
MB#5 Drill Station
(1) See BMET press release dated June 18, 2019
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 9
SOUTH MOUNTAIN PROJECT WHAT’S AHEAD FOR SOUTH MOUNTAIN? 2019 – 2020/21 WORKPLAN Phase 1 (2019) – Advanced Exploration Program (US$2.3 M budget) • Commenced 2,500 metres of definition diamond drilling to confirm and expand known resource • Initial borehole results expected early fall 2019 • Upgrading of the ventilation, power and water system in progress Phase 2 (2020/21) – Complete Preliminary Economic Assessment (“PEA”) • Additional 5,000 metres of definition drilling assuming positive Phase 1 results • Mine modeling and analysis • Conduct rock mechanics, hydrology and metallurgical testing • Complete PEA After completion of Phases 1 & 2, BMET to determine whether to move forward with a PFS, FS or construction BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 10
PANGENI COPPER EXPLORATION PROJECT IN ZAMBIA
ZAMBIA
• World-class exploration potential in the Zambian
Copperbelt under a thin layer of Kalahari sand
• Historical exploration challenged to West by sand cover
• BeMetals completed 113 aircore boreholes for 3,600 m in
2018 and yielded compelling copper results for three
prime diamond drill targets
• First core drilling of 5 boreholes for 1,000m were
completed by Antofagasta, Plc in 2016 with all holes
returning copper sulphides. Including:
• CT1: 6.1m @ 0.34% Cu and 320ppm Co (from 39m)
• SW1: 4.5m @ 0.30% Cu (from 121.5m)
• SW1: 5.5m @ 0.48% Cu (from 142.5m)
Bornite, CT3, 198m Chalcopyrite, SW1, 148m
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 11PANGENI JV: REGIONAL PEDIGREE & COMPETITORS
Ivanhoe Mines – Kamoa-Kakula Deposits Kamoa
Combined Indicated Resource: 80.7 Blbs Cu Metal(1)
Combined Inferred Resource: 13.0 Blbs Cu Metal(1) Kolwezi
Kakula
BeMetals’ Pangeni
Property Covers 575km2
N First Quantum Minerals - Kansanshi
Indicated Resource: 11.0 Blbs Cu Metal
First Quantum Minerals - Trident Inferred Resources: 5.8 Blbs Cu Metal
Mining Operation Indicated Resource: 12.0 Blbs Cu Metal
Inferred Resources: 1.1 Blbs Cu Metal
Large Scale Exploration Licenses
Trident Kansanshi
Large Scale Mining Licenses Lumwana
Mufilara
Prospecting Licenses Konkola
Nchanga
Footnotes: PANGENI JV Barrick - Lumwana Nkana
(1) At 1.0% Cut-off Grade (Cu%)
PROJECT Indicated Resource: 7.7 Blbs Cu Metal
Inferred Resources: 2.2 Blbs Cu Metal
Baluba
Luanshya
Zambian Copperbelt - Kafue
Anticline Deposits
Combined Indicated Resource:
165.3 Blbs Cu Metal
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 12ZAMBIAN COPPER BELT
PANGENI EXPLORATION PROJECT: EXTENSIVE BUT THIN SAND COVER
Aircore rig at Pangeni
3 Diamond-drilled
core boreholes
at Central Target
Core drilling at E2-C2
Initial Pangeni 2019 Work Plan
2 Diamond-drilled • Drilling commenced in mid-July to test targets H1, D2
core boreholes and SW/E2 with a US$700,000 budget
at SW Target
• Completing ~6 holes for 1,400m of diamond drilling
• Initial assay results expected during fall 2019
Pangeni License Area: 575km2
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 13CORPORATE OVERVIEW (As of August 12, 2019)
SHARE OWNERSHIP CAPITAL STRUCTURE
9% 2%
64% Issued & Stock Fully Diluted
25% Warrants Options
Outstanding Shares
104.9 M 6.3 M 5.5 M 116.7 M
Retail Insiders & Advisors Other Institutional
BMET SHARE PERFORMANCE (1 Year) ENTERPRISE VALUE
$0.35 500
+25%
Share Price (In CAD)
$0.30 400
Trading Volume
(In thousands)
$0.25 300 Market Cap Cash Debt
$0.20 200 C$25.5 M ~C$0.3 M* NIL
$0.15 100
$0.10 0
25-Jul-18 25-Nov-18 25-Mar-19 25-Jul-19 *The Company had $289K in cash at March 31, 2019 and then closed a C$6.25M
Volume Trade Share Price
private placement on May 7, 2019
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 14INVESTMENT HIGHLIGHTS - VALUE PROPOSITION
1. Founded by top mine finders, builders and operators. Key directors have built or operated 10 mines
2. Building a balanced portfolio of near-term production and tier 1 targeted exploration assets
a) Advancing towards development of high-grade South Mountain Zinc-Silver Project in Idaho
b) Continuing exploration of Pangeni Copper Project in Zambia
3. Access to capital: Even under current market conditions, BMET has raised ~C$8.5M in past 13 months
4. Extensive deal flow. Two key projects under option and identifying additional high-value base metal projects
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 15Appendix Slides BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 16
SCARCITY OF QUALITY BASE METAL COMPANIES
LISTED IN NORTH AMERICA(1)
Over 50 M&A base metal transactions this past decade has dramatically decreased the peer groups
Large-Cap Producer
$7,000
$6,571
$6,000
Market Capitalization (in Millions CAD$)
Mid-Cap Producers
$5,000
BeMetals aims to build its portfolio of assets to
$4,333
become a leading base metal producer
$4,000
$3,000
Small-Cap Producers
$2,000 $1,833
$1,176
$1,000 Developer
$198 $159 $143 $128 $26
$0
First Quantum Lundin Mining Ero Copper Hudbay Minerals Capstone Mining Trevali Mining Taseko Mines Copper BeMetals
Mountain
(1) Only includes TSX and TSX-V listed base metal producers as of August 12, 2019
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 17SCARCITY OF QUALITY BASE METAL COMPANIES
LISTED IN NORTH AMERICA
In 2008
18 TSX/TSX-V Listed Copper Producers
Today
Only 8 TSX/TSX-V Listed Copper Producers
+60% drop in
listed producers
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 18THE WORLD NEEDS BASE METALS
Uses of Copper – Highly Conductive Uses of Zinc – Anti Corrosive
• Building construction • Building construction
• Electrical & electronics • Consumer products
• Transportation equipment • Galvanized steel such as in car bodies
• Consumer products • Electrical & Electronics
• Machinery • Transportation
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 19SHRINKING SUPPLY LEADS TO HIGHER COPPER PRICE
Source: Bloomberg
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 20THE WORLD NEEDS BASE METALS: GROWING COPPER DEMAND
A Shortfall of Copper Supply Is On The Horizon
35,000
Annual global consumption growth estimated at
1.8% and has averaged 2.5% over the last 40 years
Tonnes (In thousands)
30,000
5Mt
25,000
20,000
Existing Mines Refined Production
15,000
10,000
2010 2015 2020 2025 2030
Source: RBC Capital Markets estimates: Wood Mackenzie
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 21SHRINKING SUPPLY LEADS TO HIGHER ZINC PRICES
Source: Bloomberg
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 22THE WORLD NEEDS BASE METALS – GROWING ZINC DEMAND
Global Consumption of Zinc
16,000
28% Increase
13,675 13,643 13,707 13,683 13,678
14,000 13,148
12,646 12,726
12,378
Tonnes (in thousands)
12,000 11,219
11,574
11,000 11,000 10,914
10,648
10,000
8,000
6,000
4,000
2,000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: Statista
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 23Contact Us
Derek Iwanaka BeMetals Corp. FOLLOW US ON:
Vice President, Investor Relations & Suite 3123, 595 Burrard Street
Corporate Development PO Box 49139
Vancouver, BC Canada V7X 1J1
Email: info@bemetalscorp.com
Tel: +1.604.609.6141 Web: www.bemetalscorp.com @BeMetals
BUILDING THE FUTURE WITH BASE METALS TSX-V: BMET | bemetalscorp.com 24You can also read
