June 2019 - Universal Copper Ltd.
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
June 2019
About Universal Copper
Universal Copper Ltd. is a Canadian-based copper exploration
company focused on the acquisition and exploration of copper
properties.
Our objective is to build shareholder value through the
acquisition of projects with significant technical merit.
The Company's management team has many
years of experience in exploration, finance
and efficient public company
management.
2
Shares Outstanding 35,977,272
Warrants Outstanding 20,597,211
2019 Expiry $0.20 2,203,636
2020 Expiry $0.16 6,095,250
2021 Expiry $0.24 2,293,325
2021 Expiry $0.10 4,000,000
2024 Expiry $0.10 6,005,000
Options Outstanding 2,166,250
2021 November 29th $0.20 293,750
Share Structure
2022 November 19th $0.78 312,500
2022 November 19th $0.12 337,500
2023 May 31st $0.12 522,500
2023 October 31st $0.10 250,000
2024 March 13th $0.07 250,000
2024 April 14th $0.10 200,000
Fully Diluted 58,740,733 3
Gachala Copper Project
100% owned Gachala Property
applications encompass an area of
13,280 hectares and cover 48-line
kms of the 250km by 120km belt
of Devonian Cretaceous rocks in a
geological setting conducive to
hosting sedimentary deposits,
thought to be analogous to the
Zambia Copper Belt of Africa.
Claims adjacent to the west
returned grades from 1.6% to
7.82% Cu in 12 of 47 samples taken.
Historic 4km long anomaly was
identified on the west side of the
Gachala Property.
Source: Rodriguez and Warden (1993). Overview of some Colombian gold deposits and their development potential. Universal Copper cautions copper mineralization on adjacent
properties is not necessarily indicative of similar mineralization on the Company's property. Universal Copper has yet to verify historical information.
5
Why Copper? • BHP Billiton, the world’s largest miner, see’s copper, not lithium or cobalt, as the best way to benefit financially from increased electric vehicle (EV) adoption rates • Glencore, Rio Tinto & Ivanhoe Mines are also bullish on copper • Research suggests that copper from EV’s could rise nine times in the next decade Each new generation of car needs more copper wiring: GASOLINE 55 lbs HYBRID 110 lbs ELECTRIC 165 lbs Source: Visual Capitalist, U.S. Global Investors 6
Copper Market 2019
Global consumption of refined copper will show steady increase over
the next few years, driven by the demand of the power industry, a
continued electric vehicle (EV) production and adoption rates as well as
a positive global economic outlook for growth. Copper supply and
demand outlook by Fitch Solutions shows.
Based on Fitch’s data, global demand for refined copper will outpace
production and the market will be in deficit over the next few years.
Fitch specifically forecasts the global refined copper balance to indicate
a deficit of 247kt in 2018, and to remain under-supplied through to 2021.
Copper Chart
$USD
Year 7
Gachala Sedimentary
Copper Belt
Sedimentary hosted copper
mineralization is generally flat lying
near surface and is known to be
extensive in Africa, Poland and
Colombia, including the recently
discovered Kamoa Deposits
totaling 1.7 billion tons grading 2.5%
copper. These copper deposits are
generally higher grade than
copper porphyry deposits.
“The stratiform mineralization has been traced
intermittently along strike for 250km within a sequence
up to 100m thick.”
- Rodriquez & Warden, 1993
Universal Copper has not verified the Kamoa information.
8
Why Gachala Compares To DRC
(Rodriguez and Warden, 1993) believe the Colombia Copperbelt has
definite similarities to the Zambian (DRC) Copperbelt:
Fomeque Group
Capping Carbonates
Macanal Formation
Arenite Sandstone
Juntas Formation
Oxidized Shales
Rodriguez and Warden (1993). Overview of some Colombian gold
deposits and their development potential. Mineralium Deposita
Volume 28, pages 47-57 9
LATAM Andean Copper Belt
The Andean Copper Belt is the most prolific copper
producing region in the world, producing 40.92% to
42.39% of world copper between 2011 and 2015.
Cretaceous to Neoproterozoic “Gachala Belt” rocks
lie in 250 km Colombian belt with high potential for
sedimentary copper deposits.
Source USGS Minerals Yearbook 2015 10The Andean Belt is the world’s number
one copper producing belt.
Colombia encompasses the under-explored northern section of the
richly endowed Andean Copper Belt and is a safe jurisdiction to explore:
• Colombia is the longest standing South America democracy
• Colombia has never expropriated mining lands
• The “FARC” 2016 Peace agreement, officially ended 50 years
of civil war in Colombia allowing free and safe access
Eastern Colombia is a prime geologic setting for
sedimentary copper deposits:
• Oxidized Devonian sediments & lower Cretaceous
sediments
• Oxidized & reduced Cretaceous sediments
The Colombia belt contains 300 known mineral
occurrences within the Devonian through Cretaceous
sequence:
• Farallones de Medina 4 by 30km background to 14% Cu
• Cano Negro 25km strike background to 13% Cu
Universal Copper has yet to verify historical information. 11Gachala: The Next DRC
Universal Copper believes Colombia’s Gachala region hosts
multiple copper deposits within an under explored 250km by
120km sedimentary belt analogous to the geological setting
of the DRC copper deposits (Rodriguez and Warden, 1993).
The Gachala region is under explored due to:
• FARC occupation
• Peace agreement signed 2016
• Heavy vegetation
• Poor mapping
• Difficulty identifying visual mineralization
Rodriguez and Warden (1993). Overview of some Colombian
gold deposits and their development potential. Mineralium
Deposita Volume 28, pages 47-57.
12Hard-To-Identify Mineralization
Talc altered D. Strat with disseminated
chalcocite. Lupoto deposit. LRD-03, 145m
Argillite hosted Kamoa and Fishtie Deposits in
the Ngube Group Grand Conglomérat
S.D.B with chalcopyrite replacing dolomite
that itself is after evaporate. TKA039 250.5m
Kwatebala deposit
13Colombia: The Next Copper Frontier
Colombia Belt
The Gachala region hosts a sedimentary copper belt analogous to the Zambian
(DRC) Copper Belt in Africa:
• Similar geological setting, stratigraphy and structure
• Copper mineralization extends for a length of over 250km by 120km
Universal Copper Property Assets
48km long section of 250km belt of sedimentary copper mineralization:
• Copper mineralization adjacent to 13,280 hectare property assets
• Historic sampling with 12 of 47 samples returning values from 1.6% to 7.82% Cu on
ground contiguous to Universal Copper assets
Universal Copper cautions copper mineralization on adjacent properties is not necessarily indicative of similar mineralization on the Company's property. Universal Copper
has yet to verify the historical information. 14Exploration Looking Forward
Strengthen Geological Model By:
• Systematic ground truthing of known Long Wave InfraRed Imaging (LWIR) anomalies
• Mapping and sampling the favorable Cretaceous – Devonian contact throughout the Gachala copper belt
• Developing multiple targets for significant drill program for systematic evaluation
Strategic Plan:
• Confirm and document copper along favorable contacts throughout current land holdings
• Develop drill targets for potential multiple deposit discoveries
15Exploration In Progress
2019 program utilizing experienced in country
geological team to:
• Complete historical data 2019 Operating Budget ($CAD)
compilation for entire 250km belt
Property Acquisition $250,000
• Evaluate and prioritize current assets Exploration $1,000,000
utilizing planned LWIR survey
General & Admin $240,000
• Evaluate, prioritize and acquire Investor Relations $240,000
additional assets utilizing geology Cash Reserve at 2019/12/31 $500,000
and LWIR
Total Operation Budget $2,230,000
• Complete surface exploration and Less Current Cash in Bank $-50,000
follow up trenching programs in
New Financing $2,180,000
advance of drilling
16BC Property Portfolio
Poplar Project
• Copper porphyry with historic 43-101
resource
• One of the most advanced pre-
production copper projects in the
Province
• Option to acquire 100% interest
Princeton Project
• New gold discovery
• Drill ready targets in known
metallogenic camp
• Option to acquire 100% interest
18Poplar Project
The Poplar Project spans 65,817 hectares and is
traversed by a 138 Kva power line and mostly
accessible by road. The property is located in a
historic mining area, only 35km from the
Huckleberry Mine and 42km from Equity Silver.
The property is also accessible via rail – only
88km to Houston or 400km to a port at Prince
Rupert.
Typical snowfall consists of 150cm on an annual
basis, making year round work possible.
19Poplar Project History
Initially discovered from outcrop exposure in the early 1970’s, the
Poplar Project has seen multiple segments of historic exploration
including 1974 to 1982, 1992, 2005, 2009 to 2013.
Historic exploration included:
• Soil and till geochemical surveys
• Ground magnetics and IP surveys
• Airborne magnetics and electro-
magnetic surveys
• Diamond drilling: 39,648 meters in 147
holes in Poplar Deposit area resulted in
calculation of historic resource
• Additional 135 diamond or percussion
holes totaling 6,817 meters over
remaining property
• 2004 Metallurgical Study – 93% Cu
recovery, 81% Mo recovery 20Poplar Project History Historic Indicated Mineral Resource of 131 million tonnes at 0.31% Cu, 0.009 % Mo, 0.09g/t Au and 2.39 g/t Ag; Historic Inferred Mineral Resource of 132 million tonnes at 0.27 % Cu, 0.005 % Mo, 0.07 g/t Au and 3.75 g/t Ag. These historical indicated and inferred resources were disclosed by Lions Gate Metals Inc. in its technical report dated March 30, 2012, prepared by Gary Giroux, P Eng. To determine the historical resource, a 3-D solid was constructed to constrain the mineralized area, using a 0.1-per-cent-copper-grade shell as a guide. Large internal waste zones were modelled as were some larger postmineral dikes. Of the total database, 129 drill holes totaling 37,205 m were within the mineralized zone and were used to estimate the resource. Drill holes were compared with the mineralized solid, and assays were tagged if inside. Copper, molybdenum, gold and silver assays within the mineralized solid were capped at 1.4 per cent Cu, 0.14 per cent Mo, 0.34 g/t Au and 41 g/t Ag, respectively. Five-metre composites were formed and used for variography. For this estimate and to aid with some preliminary planning, the blocks were reduced to five by five by 10 metres in dimension and were estimated for Cu, Mo, Au and Ag by ordinary kriging. The historical resource is classified as indicated and inferred based on each block's proximity to data and the grade continuity. The historical indicated and historical inferred resource uses the categories set out in Section 1.2 of National Instrument 43-101. Universal will need to review and verify the historical drilling database and twin a number of the existing drill holes to bring the historical resources current. Investors are cautioned a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and therefore Universal is not treating the historical estimate as current mineral resources or mineral reserves. 21
Poplar Historic Resource Estimate
Indicated Resource – Within Total Blocks
Grade > Cut-off Contained Metal
Cut-off Million
Million
Cu (%) (tonnes) Million Million Millon
Cu (%) Mo (%) Au (g/t) Ag (g/t) lbs of
lbs of Cu ozs Au ozs Ag
Mo
0.20 131.2 0.31 0.009 0.09 2.39 896.9 26.0 0.380 10.080
Inferred Resource – Within Total Blocks
Grade > Cut-off Contained Metal
Cut-off Million
Million
Cu (%) (tonnes) Million Million Millon
Cu (%) Mo (%) Au (g/t) Ag (g/t) lbs of
lbs of Cu ozs Au ozs Ag
Mo
0.20 132.1 0.27 0.005 0.07 3.75 786.3 13.1 0.300 15.920
These historical indicated and inferred resources were disclosed by Lions Gate Metals Inc. in its technical report dated March 30, 2012, prepared by Gary Giroux, P Eng. To
determine the historical resource, a 3-D solid was constructed to constrain the mineralized area, using a 0.1-per-cent-copper-grade shell as a guide. Large internal waste zones
were modelled as were some larger postmineral dikes. Of the total database, 129 drill holes totaling 37,205 m were within the mineralized zone and were used to estimate the
resource. Drill holes were compared with the mineralized solid, and assays were tagged if inside. Copper, molybdenum, gold and silver assays within the mineralized solid were
capped at 1.4 per cent Cu, 0.14 per cent Mo, 0.34 g/t Au and 41 g/t Ag, respectively. Five-metre composites were formed and used for variography.
For this estimate and to aid with some preliminary planning, the blocks were reduced to five by five by 10 metres in dimension and were estimated for Cu, Mo, Au and Ag by
ordinary kriging. The historical resource is classified as indicated and inferred based on each block's proximity to data and the grade continuity. The historical indicated and
historical inferred resource uses the categories set out in Section 1.2 of National Instrument 43-101. Universal will need to review and verify the historical drilling database and twin
a number of the existing drill holes to bring the historical resources current. Investors are cautioned a qualified person has not done sufficient work to classify the historical 22
estimate as current mineral resources or mineral reserves, and therefore Universal is not treating the historical estimate as current mineral resources or mineral reserves.Poplar Jan 2019 Drill Results
M
Hole-ID M From M To % Cu % Mo g/t Au g/t Ag
Interval
23.5 404.47 380.97 0.365 0.015 0.10 2.31
18-PC-126
374.3 404.47 30.17 0.554 0.027 0.15 4.44
5.5 270.36 264.86 0.421 0.013 0.10 2.63
18-PC-127 24.40 78.00 53.60 0.552 0.025 0.14 1.73
51.00 78.00 27.00 0.643 0.030 0.15 2.62
5 422.76 417.76 0.197 0.001 0.07 3.03
18-PC-128
122.80 273.90 151.10 0.330 0.002 0.12 3.46
23Poplar Deposit Potential
• 2009 Deep IP Survey 3d Model
• Deposit open at surface
• Open to depth
24Poplar Project
Airborne
Magnetics & EM
• 9 prospective targets
identified for follow up
• UCL plans a systematic
evaluation over next 12 to
18 months
25Poplar Project
LWIR Survey
Sericite Spectra
• Sericite is a key alteration
mineral in porphyry
deposits
• Poplar deposit is a clearly
defined anomaly
• Several additional
anomalies require
systematic follow up
starting with the
anomalies coincident
with the EM
26Poplar Project
LWIR Survey
Chalcopyrite Spectra
• Poplar deposit is a very
subtle anomaly
• Western side of property
appears to be strongly
anomalous, requiring
follow up
27Poplar Wide Historic Zones
Additional Historic Targets: Incredible Opportunity
to Increase Tonnage Through New Discoveries
Dual Dilys
• Quartz vein stockwork with chalcopyrite
and minor molybdenite
Dual Con
• Several periods of soil, IP
• Strong porphyry alteration
• Grab sample 0.55% Cu, 24 g/t Ag
Hill
• Several periods of soil, IP
• Strong porphyry alteration
• 0.18% Cu over 2m drill hole
Ida
• Extensive sulphide system
• Disseminated chalcopyrite 0.01% to 0.61% Cu
• 1973 14 holes defined area 120 by 275 m
• averaging 0.16% Cu
28
Universal Copper has yet to verify historical information.2019 Proposed Work Program
• Follow up on excellent November 2018 drill results
with further drilling
• Continue testing to depth
• Test strike extensions indicated by previous deep IP
survey
• Begin systematic evaluation of historic sampling,
Airborne EM and LWIR
• Initially focus on coincidental anomalies and historic
sampling for summer 2019 drilling program
• Metallurgical sampling
29Management & Directors Clive Massey Alexander Helmel, B.Sc, CISA President, CEO & Director CFO & Director Mr. Massey has held directorships and senior Mr. Helmel is an Independent Management Consultant management positions with various TSX Venture with specific expertise working with early stage venture Exchange listed companies, including CEO of Redhill companies within the Canadian Capital Markets. Mr. Resources, Windfire Capital, Aldever Resources, Helmel focuses on private to public market transitions, Prescient Mining and Universal Uranium. He has also corporate governance, the development of senior coordinated the marketing programs for several management teams and corporate growth strategies. successful public companies including Lumina Copper, Mr. Helmel has served as a director or officer for Pacific Rim Mining, Marifil Mines, Sumo Minerals, numerous private, CSE and TSX-V listed corporations Greystar Resources and the North Air Group of Companies. Wesley Pomeroy, P.Geo, MBA James Hyland, B.Comm Director Director Mr. Pomeroy has been a member in good standing of Mr. Hyland brings more that 25 years of experience in the American Association of Petroleum Geologists and the public markets to the board as a financial and the Rocky Mountain Association of Geologists and is a marketing consultant, a corporate founder and registered Professional Geologist for the State of manager of numerous early stage public and private Wyoming. He is also currently a consulting geologist businesses. Mr. Hyland earned a Bachelor of Commerce with Vortex Petroleum Inc. out of California and has in Entrepreneurial Management from Royal Roads served as a director of several junior mining companies University of Victoria, BC. for over 30 years. 30
Technical Advisory Board
Tim Henneberry, P.Geo, B.Sc
Mr. Henneberry is a Professional Geoscientist registered
in British Columbia with over 37 years experience in
both exploration and production and public company Andres Trivino
senior management. Mr. Henneberry has extensive With more than 21 years of professional experience,
experience in mineral exploration and development for Andres worked for Price Waterhouse Coopers Canada
precious and base metals and industrial minerals. He for over 12 years advising corporations in Canada, USA,
has worked in western and northern Canada, Colombia, Brazil, Mexico, Venezuela, Cuba and the
southwestern United States, Africa and South America. Dominican Republic. As part of the PwC Latin American
Group and the Deals and Consulting Group, he advised
companies in Strategy, Corporate Finance, Corporate
Ricardo Valls, P.Geo, B.Sc, M.Sc Restructuring, Mergers and Acquisitions and Business
Mr. Valls has spent more than thirty-six years in the Valuations. His experience encompasses mining,
mining industry and has extensive geological, energy, Infrastructure, technology, financial services,
geochemical, and mining experience. Mr. Valls has telecom and entertainment. Andres Trivino is fluent in
managed all phases of the exploration and mining cycle three languages and is the President of the Canada
with a background in research techniques and training Colombia Chamber of Investment and Trade where he
of technical personnel. Mr. Valls is fluent in English, offers an independent voice to promote investment
French, Spanish, and Russian and has been involved in and trade between the two countries.
various projects worldwide including Canada, Africa,
Russia, Argentina, Haiti, Cuba, Indonesia, Central and
South America.
31Thanks For Reading
We value our investors - Please contact us via your preferred
method if you have any questions.
+1 604-341-6870
+1 604 395-7068
info@universalcopper.com
universalcopper.com
Universal Copper Ltd.
#830 – 1100 Melville St.
PO Box 43, Vancouver, BC. V6E 4A6
32Disclaimer
This presentation (the “Presentation”) has been prepared solely for information purposes in connection with the contemplated issue of shares in
Universal Copper Ltd. (“UNV” or the “Company”) and is being furnished by UNV to a limited number of parties (the “Recipients”) who have a
potential interest in subscribing for shares in the Company.
The Presentation is strictly confidential and any disclosure, use, copying and circulation of this Presentation is prohibited without the consent of
the Company.
The information contained in this Presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for or purchase the securities discussed herein
in any jurisdiction. Neither this Presentation nor any part of it shall form the basis of, or be relied upon in connection with any offer, or act as an inducement to enter into any contract or
commitment whatsoever. No representation or warranty is given, express or implied, as to the accuracy of the information contained in this Presentation.
This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking
statements concern future circumstances and results and other statements that are not historical facts. The forward-looking statements, contained in this Presentation, including assumptions,
opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are uncertain and subject to risks. A multitude of factors can cause actual events to
differ significantly from any anticipated development. Neither the Company nor any such person’s, officers or employees guarantee that the assumptions underlying such forward-looking
statements are
free from errors and omissions nor do any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted
developments.
The information contained herein has been prepared to assist the Recipients in making their own evaluation on the Company and does not purport to contain all information that they may desire.
In all cases, the Recipients should conduct their own investigation and analysis of the Company, its business, prospects, results of operations and financial condition as well as any other information
the Recipients may deem relevant.
The Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of this Presentation or of the information contained herein and shall have no
liability for the information contained in, or any omissions from, this Presentation, nor for any of the written, electronic or oral communications transmitted to the Recipients (including without
limitation its directors, employees, representatives and advisors).
Neither the receipt of this Presentation by any Recipients, nor any information contained herein or supplied herewith or subsequently communicated in written, electronic or oral form to any
person in connection with the contemplated issue of shares in the Company constitutes, or shall be relied upon as constituting, the giving of investment advice to any such person. Each person
should make their own independent assessment of the merits of investing in the Company and should consult their own professional advisors. By receiving this Presentation you acknowledge and
agree that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and are solely responsible for
forming your own opinion of the potential future performance of the Company’s business.
Poplar Project historical indicated and inferred resources were disclosed by Lions Gate Metals Inc. in its technical report dated March 30, 2012, prepared by Gary Giroux, P Eng. To determine the
historical resource, a 3-D solid was constructed to constrain the mineralized area, using a 0.1-per-cent-copper-grade shell as a guide. Large internal waste zones were modelled as were some larger
postmineral dikes. Of the total database, 129 drill holes totaling 37,205 m were within the mineralized zone and were used to estimate the resource. Drill holes were compared with the mineralized
solid, and assays were tagged if inside. Copper, molybdenum, gold and silver assays within the mineralized solid were capped at 1.4 per cent Cu, 0.14 per cent Mo, 0.34 g/t Au and 41 g/t Ag,
respectively. Five-meter composites were formed and used for variography. For this estimate and to aid with some preliminary planning, the blocks were reduced to five by five by 10 meters in
dimension and were estimated for Cu, Mo, Au and Ag by ordinary kriging. The historical resource is classified as indicated and inferred based on each block's proximity to data and the grade
continuity. The historical indicated and historical inferred resource uses the categories set out in Section 1.2 of National Instrument 43-101. Universal Copper will need to review and verify the
historical drilling database and twin a number of the existing drill holes to bring the historical resources current. Investors are cautioned a qualified person has not done sufficient work to classify
the historical estimate as current mineral resources or mineral reserves, and therefore Universal Copper is not treating the historical estimate as current mineral resources or mineral reserves.
R. Tim Henneberry, P.Geo. (BC), a member of Universal Copper's Advisory Board, is the Qualified Person who has reviewed and approved the technical content in this presentation.
33You can also read
