KLIYUL TECHNICAL PRESENTATION - MAY 2021 - Pacific Ridge Exploration
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KLIYUL TECHNICAL PRESENTATION MAY 2021
Forward Looking Statements This presentation includes certain statements that may be deemed “forward-looking statements”. All statements in this presentation, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that Pacific Ridge Exploration Ltd. expects to occur, are forward-looking statements. Such statements may be identified in this presentation by the use of words such as ‘plans”, “will”, “expects” and “may” as well as the use of the future or conditional tense. Although Pacific Ridge Exploration Ltd. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Pacific Ridge’s disclosure of a technical or scientific nature has been reviewed by Gerald G. Carlson, Ph.D., P.Eng., President & CEO of Pacific Ridge, the Qualified Person under the definition of National Instrument 43-101.
WHY PACIFIC RIDGE?
Our goal is to become one of B.C.’s leading copper-gold exploration
companies.
• Strong management team and board.
• Attractive share structure and valuation.
• Drilling to commence at the Kliyul copper-gold project this
summer.
• Acquire additional copper-gold projects.
• Unlock the value of Yukon projects.
Excellent fundamentals for copper-gold driving M&A in BC:
• Serengeti/Sun Metals = NorthWest Copper.
• Newmont to acquire GT Gold for ~$450M.
Management & Board Gerald G. (Gerry) Carlson, PhD, PEng. Executive Chairman & Director Over 40 years of international experience in managing mineral exploration and mining development companies with a focus on precious and base metal deposits. Received the J.C. Sproule Award for his work in the Yukon. Blaine Monaghan, MBA President, CEO, & Director Over 20 years of experience creating shareholder value in the mining industry. Mr. Monaghan has been involved in capital raises totalling more than $100 million for exploration projects around the globe and has worked with a number of companies that were subject to M&A, including Canplats Resources Corporation, which was acquired by Goldcorp Inc. for over $300-million in 2010. Danette Schwab, BSc., PGeo. Vice President Exploration Over 18 years of experience in mining and mineral exploration with a number of junior and intermediate mining companies. Ms. Schwab has experience exploring for a number of deposit types, including porphyry copper-gold, Carlin-style gold, sediment-hosted copper, orogenic gold, epithermal gold and VMS. Bruce Youngman, BSc. Independent Director Over 35 years of experience in the mineral exploration industry. Former President and COO of Canplats Resources Corporation and prior to that held senior positions with Northern Dynasty Minerals. Currently a Director of Strategic Metals, ATAC Resources, Rockhaven Resources, and Silver Range Resources. Borden Putnam III, MSc., PGeo. Independent Director Over 40 years of experience in the mineral industry. Mr Putnam has worked predominantly as an asset analyst and geologist and as a buy-side analyst at several U.S.-based mutual and hedge funds, including Eastbourne Capital Management and Robertson Stephens Investment Management (RSIM). Salvador Miranda, MSc. Chief Financial Officer Over 20 years of experience. He is currently CFO of GFM Resources Limited and NWM Mining Corporation. He has also served as CFO for EnWave Corporation, Newstrike Capital Inc. and Exmin Resources Inc. He is past President and Treasurer of the BC Chapter of the Canadian Council for the Americas and past President of the Mexican Business Association of Canada. Arie Page, LLB Corporate Secretary Over 10 years of experience in the mineral exploration industry. Ms. Page currently serves as corporate secretary to Bravada Gold, Southern Silver Exploration, and Valterra Resource.
Technical Advisory Committee Borden Putnam III, M.Sc., P.Geo. Chair Over 40 years of experience in the mineral industry. Mr Putnam has worked predominantly as an asset analyst and geologist and as a buy-side analyst at several U.S.-based mutual and hedge funds, including Eastbourne Capital Management and Robertson Stephens Investment Management (RSIM). Craig Hart, Ph.D Dr. Hart is past Director of MDRU (Mineral Deposit Research Unit) at the University of British Columbia (UBC) where he initiated and facilitated a wide range of mineral exploration industry-sponsored research projects focused on gold and porphyry systems. Jim Logan, P.Geo. Senior Minerals Geologist (retired), at the BC Ministry of Energy and Mines. Jim is an expert on porphyry copper deposits in British Columbia. Dan Core, Ph.D. Principal Geophysicist/ Geologist of Fathom Geophysics, specializing in geophysical and geoscience data processing and targeting services for the minerals industry, from the regional scale through to the near-mine deposit scale. Gerry Carlson, PhD, P.Eng. Over 40 years of international experience in managing mineral exploration and mining development companies with a focus on precious and base metal deposits. Received the J.C. Sproule Award for his work in the Yukon. Danette Schwab, BSc., P.Geo. Over 18 years of experience in mining and mineral exploration with a number of junior and intermediate mining companies. Ms. Schwab has experience exploring for a number of deposit types, including porphyry copper-gold, Carlin- style gold, sediment-hosted copper, orogenic gold, epithermal gold and VMS.
Share Structure April 29: CAD$1.5M non-brokered private placement (“PP”) at CAD$0.15 Capital structure Common shares: 43.5M (~54M post PP) Warrants: 5.6M (~11.0M post PP) Stock options: 4.2M Fully diluted: 52.6M (~69.0M post PP) Key Shareholders DELPHI: 19% Insiders/friends: 19% 52-week high/low: CAD$0.33/$0.035 Market capitalization: ~CAD$14.0M Cash: ~CAD$1.4M (~CAD$3.0M post PP)
Project Portfolio British Columbia Projects: • Kliyul Cu-Au Porphyry. • Redton Cu-Au Porphyry. • RDP Cu-Au Porphyry. Yukon projects: • Fyre Lake Cu-Au-Co project. • Mariposa gold project. • Eureka Dome gold project. • Gold Cap gold project.
Kliyul and Redton Porphyry Projects • Acquired from Centerra Gold in 2020* • Multi-year exploration permits, First Nation agreements in place • Good location (roads, infrastructure) in a prolific belt • *Pacific Ridge has the right to earn a 51% interest in the Kliyul and Redton properties by making cash payments totaling $100,000, issuing 2.0 million shares and spending $3.5 million on exploration by December 31, 2023. The Company then has the right to increase its interest in the Properties to 75% by making additional payments totaling $60,000, issuing 1.5 million shares and completing an additional $3.5 million in exploration by December 31, 2025.
Our Neighbourhood • Kliyul: Pacific Ridge’s advanced exploration stage gold-copper porphyry project • RDP: Pacific Ridges newest Cu-Au porphyry acquisition • Mount Milligan: Producing porphyry Cu-Au mine (Centerra Gold) • Kemess: Past producing porphyry Cu- Au; future producer (Centerra Gold) • Kwanika: Potential future Cu-Au porphyry producer (NorthWest Copper) • Numerous other advanced stage exploration projects • Lawyers: Benchmark Metals Inc. (~$240M Mcap).
Kliyul Copper-Gold Project
• Option to acquire up to a 75% interest from Centerra Gold.
• Over 60 km2 in size and close to existing infrastructure: ~5km from road and
power.
• Similar geological environment to other copper-gold porphyry deposits in
BC such as Kemess (Centerra), Mt. Milligan (Centerra), Red Chris (Newcrest)
and Saddle North (GT Gold).
• Historic drilling returned significant grades/widths at Kliyul Main Zone
(“KMZ”):
• 0.23% Cu & 0.52 gpt Au over 218 m (KL-06-30) - 0.79% CuEQ2
• 0.22% Cu & 0.53 gpt Au over 245 m (KLI-15-34) – 0.75% CuEQ (incl. 0.39% Cu & 2.55
gpt Au over 20.4 m)2
• Recent geological interpretation and geophysical modeling has defined
expansion potential and new targets at the KMZ.
• In addition to the KMZ, three other porphyry targets exist along an
underexplored 4-km long mineralized trend: Ginger, Bap Ridge, and M-39.
2 https://pacificridgeexploration.com/news-releases/pacific-ridge-identifies-two-new-priority-targets-at-its-kliyul-gold-copper-porphyry-project/
CuEQ = ((Cu(%) x $2.25 x 22.0642) + (Au(gpt) x $1,650 x 0.032151)) / ($2.25 x 22.0642)Kliyul
Regional
Geology
Underground ~ 107 Mt @ 0.27% Cu,
0.54 ppm Au, 1.99 ppm Ag
Kliyul
~ 32 Mt @ 0.66%
• Intra-oceanic island arcs (Quesnellia and Stikinia Terrane) that were accreted Cu, 0.26 ppm Au
onto ancestral North America in the Mesozoic
• Porphyry mineralization was Upper Triassic to Lower Jurassic (~ 206 Ma), an
intrusion dated at Kliyul is ~ 217 Ma
• Terranes consists of submarine volcanics and sediments (typically high-K calc-
alkaline to shoshonitic) = Takla Group
• Unconformably above Takla are andesitic volcanics of the Hazelton Group ~ 542 Mt @ 0.20%
(abundant at Kemess) Cu, 0.36 ppm Au
• Hogem Batholith to south is fertile (e.g., hosts Lorraine, Milligan, etc.) (Schiarizza and Tan, 2004)Property History
Year Company Zone of Activity Summary of Activities Reference
1946-1947 Sturgeon Gold Mines Ginger Zone Prospecting, channel sampling White 1948
1970-1971 Kennco Kliyul Main Zone Staked KLI claims, ground magnetics (1970), silt and soil sampling, IP (1971) Stevenson 1971
1974 Sumac Mines Kliyul Main Zone 14 DDH for 989.9 m Rogers 1974
1974 - 1976 BP Minerals BAP Ridge Surface sampling, IP (1974), trenching, extend soil grids (1975), Max-Min EM (1976) Betz 1976
1981 Golden Rule Independence/BAP Staked KC claims over lapsed BAP, prospecting Fox 1982
1981 Vital Mines Kliyul Main Zone 4 DDH for 602.9 m Rodgers 1981
Optioned KLI, relogged and resampled 1,593 m of historical core, 1:5,000 scale,
1984 BP Minerals Kliyul Main Zone Smit and Meyers 1985
reconnaissance rock and soil sampling
1984 Golden Rule Independence/BAP Prospecting Wilson 1984
1985 Ritz Resources Independence/BAP Soil sampling, ground magnetics/VLF (6.6 line-km) Christopher 1986
1986 Lemming Resources BAP Ridge Talus fine sampling (N = 90) Rebagliati 1986
1990 Placer Dome Kliyul Main Zone Geochemical grid sampling, ground VLF-EM/magnetics (30.6 line-km) Price et al 1990
1990 Golden Rule Parish Hill and Dortatelle Fault Staked JO claims, reconnaissance silt sampling, prospecting Fox 1991
1992 Swannell Minerals Dortatelle/ Darb Staked Darb property, mapping, soil grid sampling (100 m x 200 m spacing) Leriche and Taylor 1992
1:5,000 mapping (1992), six RC holes for 560.0 m, airborne magnetic/EM/
Kliyul Main Zone radiometric survey, soil sampling, test pitting, chip sampling (1993); 10 DDH for Gill 1994a, 1994c
1,120.5 m (1994)
1992-1995 Noranda Ginger B Chip sampling (1993) Gill 1994c
Independence/BAP Optioned KC claims, soil and rock sampling, ground magnetics (8.6 line-km) (1994) Gill 1994b
Soil and rock sampling, ground magnetics (1994), infill and extension soil sampling
JO claims Gill 1995a, 1995b
(1995)
1996 Intl. Conquest JOH Claims 5 drill holes (154.83 m) Leriche and Harrington 1996Property History-Modern Exploration
Year Company Zone of Activity Summary of Activities Reference
Mair and Bidwell
Kliyul Main Zone 2 DDH (751.5 m)
2006- 2007
Geoinformatics
2007 Mair and Bidwell
BAP Ridge 3 DDH (1,247.0 m)
2008
2010- Relogging (2010), IP survey (30.6 line-km), Lui 2010;
Kiska Metals Inc. Kliyul Main Zone
2011 prospecting (2011) Voordouw 2012
1:5,000 property-wide and 1:1,000 detailed (Main
2013- Kliyul Main Zone, Zone) mapping and sampling, IP/ground magnetics Lui 2014; Bayliss
Teck Resources
2015 Ginger and BAP (29.9 line-km), relogging (2014), 4 DDH (1,908 m), 2016
mapping, IP/ground magnetics (2015)
Property-scale evaluation, 1:5,000 to 1:10,000
AuRico Metals, First Property-scale Barnes and Miller
2017 mapping, grid-based rock sampling (350 m spacing),
Quantum Minerals evaluation 2018
ground ELF survey.Faults
3 significant faults:
• N-striking Dortatell fault (dextral)
• ENE-striking Valley fault (normal/dip-slip?)
• NNW-striking Kliyul creek fault (dextral, with
sinistral and dextral splays)
Kliyul
Property
Geology
KMZKliyul Porphyry Au-Cu – Comparative
Footprints
Kemess South
Phyllic Alteration
Sericite Alteration
Magnetite Alteration
Biotite Potassic
Calc sodic Alteration
Drill hole collars
Mt. Milligan
Red ChrisKliyul Targets
Chlorite Composition
The 2250 nm spectral band can N
indicate changes in chlorite
composition, such as increases in Mg
reflecting the oxygen fugacity in the
chemical environment of alteration
and providing a potential vector to
mineralization.
KLI-15-032
KL-19
KLI-15-034/035
Fe-Chlorite
KLI-15-033
Increase
fO2
NW_07_01
NW_07_02
500m
NW_07_03
Mg-Chlorite 1km
InsetCu-in-soils
Au-in-soils
Mo-in-soils
Zn-in-soils
Chargeability inversion model -200m depth slice
Resistivity inversion model -200m depth slice
Kliyul Rocks Trace Elements
proximal intermediate
Kliyul
Intermediate distal
• surface samples (ALS – 4acid)Kliyul Historic Drilling Most holes less than 100 m; average depth 179 m.
Kliyul Drill Intercepts
Ref Hole From(m) To(m) Width(m) Cu(%) Au(gpt) CuEQ(%) AuEQ(gpt)
A KL-5 10.8 68.3 57.5 0.32 0.99 1.13 1.38
B KL-6 30.1 78.9 48.8 0.31 1.33 1.40 1.71
C KL-7 20.0 71.0 51.0 0.17 1.19 1.14 1.40
D KL-93-4 46.0 102.0 56.0 0.34 0.89 1.07 1.31
E KL-93-5 16.0 76.0 60.0 0.26 1.34 1.35 1.66
F KL-06-30 22.0 239.8 217.8 0.23 0.52 0.65 0.80
G KL-06-31 346.0 378.0 32.0 0.21 0.62 0.72 0.88
P KLI-15-33 32.5 194.9 162.4 0.20 0.26 0.41 0.50
H KLI-15-34 37.5 90.0 52.5 0.24 0.17 0.38 0.46
I KLI-15-34 123.0 368.0 245.0 0.18 0.53 0.61 0.75
J KLI-15-34 280.6 301.0 20.4 0.39 2.55 2.47 3.03
K KLI-15-34 426.0 465.7 39.7 0.20 0.66 0.74 0.90
L KLI-15-35 331.0 380.0 49.0 0.16 0.22 0.34 0.42
M KLI-15-35 399.5 462.8 63.3 0.26 0.28 0.49 0.60
N KLI-15-35 414.0 433.5 19.5 0.43 0.56 0.89 1.09
O KLI-15-35 474.7 502.0 27.3 0.11 0.18 0.26 0.31
Metal equivalent calculations using $1580/oz gold and $2.80/lb copperKliyul Zone
33 holes for 5524 metres, many shallow historical
holes focussed on outcropping magnetite breccias
High gold grades at surface and overall high
Au/Cu ratios potentially significant to project
economics
Majority of mineralized intercepts are in host
volcanic rocks and diorite (pre-mineral): potential
for further grade enhancement in possible syn-
mineral porphyry body (a significant volume of
which has yet to be discovered)
Ref Hole From(m) To(m) Width(m) Cu(%) Au(gpt) CuEQ(%) AuEQ(gpt)
A KL-5 10.8 68.3 57.5 0.32 0.99 1.13 1.38
B KL-6 30.1 78.9 48.8 0.31 1.33 1.40 1.71
C KL-7 20.0 71.0 51.0 0.17 1.19 1.14 1.40
D KL-93-4 46.0 102.0 56.0 0.34 0.89 1.07 1.31
E KL-93-5 16.0 76.0 60.0 0.26 1.34 1.35 1.66
F KL-06-30 22.0 239.8 217.8 0.23 0.52 0.65 0.80
G KL-06-31 346.0 378.0 32.0 0.21 0.62 0.72 0.88
* KLI-15-33 32.5 194.9 162.4 0.20 0.26 0.41 0.50
H KLI-15-34 37.5 90.0 52.5 0.24 0.17 0.38 0.46
I KLI-15-34 123.0 368.0 245.0 0.18 0.53 0.61 0.75
J KLI-15-34 280.6 301.0 20.4 0.39 2.55 2.47 3.03
K KLI-15-34 426.0 465.7 39.7 0.20 0.66 0.74 0.90
L KLI-15-35 331.0 380.0 49.0 0.16 0.22 0.34 0.42
M KLI-15-35 399.5 462.8 63.3 0.26 0.28 0.49 0.60
N KLI-15-35 414.0 433.5 19.5 0.43 0.56 0.89 1.09
O KLI-15-35 474.7 502.0 27.3 0.11 0.18 0.26 0.31
Metal equivalent calculations using $1580/oz gold and $2.80/lb copper * hole is off-sectionKliyul Alteration Cross Section
Key Alteration
Section A – A’ – Looking NW (150m clipping)
(See previous slide)
moderate-
strong
silicificationMineralization Cross Section
Section A – A’ – Looking NW
(See previous slide)
A 230 (150m clipping) Looking Northwest KLI-15-035
1.1m @ 1.16% (431.5m)
Cu, 2.1 g/t Au
Pyrite Only
Pyrite > Chalcopyrite
19.2m
Chalcopyrite > Pyrite
0.15% Cu, 0.63 g/t 1700RL
Au Chalcopyrite
Chalcopyrite > Bornite
Bornite > Chalcopyrite
FZ
426.7m 0.6m 1600RL
0.16% Cu, 2.9% Cu, 7.9 g/t Au
0.43 g/t Au
21.4m
0.39% Cu
2.55g/t Au
2cm 1500RL
50.6m
0.16% Cu, 0.22 g/t
Au Bornite replacing mafic
sites within the diorite
65.4m
0.26% Cu, 0.27 g/t Au
Includes: 1400RL
? 19.5m
0.433% Cu, 0.56 g/t
Au 510m
489m
100mMineralization – Au:Cu
High Au:Cu ratios – strong
magnetite association
>0.2 gpt AuEq shell
Drill hole lost when it got into quartz-magnetite “skarn” zone.
Low Au;Cu ratios – magnetite not as strong (but present)
different mineralizing events?Generalized Paragenesis
GEN1 VEINS
** Banded Quartz-Magnetite veins – early?, barren
* Cu mineralization
GEN2 VEINS * Au mineralizaton
**
QZ-MT-CPY ± BN veins cross-cutting MT Breccia and Diorite
*Diorite may have qtz-mag xenoliths and also cut by QZ-MT
veins = multiple pulses
GEN 3 VEINS
** Calcic: Epidote-CPY-PY veins cross-cutting
QZ-MT-CPY veins and MT Breccia
GEN 4 VEINS
Potassic: Crackle to matrix-supported
* Phyllic: PY +/- CPY veins with
Magnetite-Chlorite-(Biotite?) Breccia, phyllic halos
Chalcopyrite (CPY) and occasional GEN 5 VEINS
Bornite (BN) in matrix, occasional QZ-
CPY vein fragments (pre-breccia * Carbonate: QZ-ANK-
PY veins in fault
copper mineralization)
zones
Local albite alteration of breccia clasts Key take-aways:
(pre-potassic?) • Multiple pulses of Cu-Au mineralization – complex system
• Previous drilling focussed on Magnetite Breccias – peripheral to
core?
• Strong potassic alteration and significant volume of porphyry
intrusive yet to be discovered = significant opportunityWhat about the holes that didn’t quite hit?
Long interval of late mineral feldspar-
quartz porphyry, in other drill holes,
these occur as narrow dykes
Shallow hole lost just getting into qtz-
magnetite zone
Shallow hole ended in 0.6 g/t AuEqBAP Ridge GEN2 and GEN3 –Early and
Intermediate Vein Assemblage Abundance
Thick Slice Looking Northeast
NW_07_03 appears most
proximal, followed by Mo-in-soils
NW_07_02
plan view
Mn depletion-in-soils
Cu/Zn-in-soils
Mo_ppm as drillhole graph
along traceKliyul Geological Modelling
KMZ Geological Model
Oblique view to the NNE
Mag-cemented
breccia
diorite
>0.2 gpt AuEq shell
2021 proposed
drill holeValley Fault?
area under cover, strong resistivity
Structural intersection,
near diorite outcrop, >5
ppm Mo-in-soils,
Sn>2ppm in rocksKliyul Main Zone Resistivity cross section resistivity
(ohm-m)
View to Northwest
Kliyul Main Zone
A A’
KL06-30
217.8 m of 0.52 g/t Au, 0.23%
Cu
Kliyul West Target
Kliyul East Target
KLI-15-34
245.0 m of 0.53 g/t Au, 0.18% Cu
1.5 Km
250m
Strong slightly east-dipping resistivity feature at depth.
Intrusion or silicic alteration/quartz veining?
Au-Cu minz at KMZ associated with moderate-strong
silcification and quartz veining.Kliyul Main Zone MVI cross section MVI
(S.I.)
View to Northwest
Kliyul Main Zone
A A’
KL06-30
217.8 m of 0.52 g/t Au,
0.23% Cu
Kliyul West Target
Kliyul East Target
KLI-15-34
245.0 m of 0.53 g/t Au, 0.18%
Cu
1.5 Km
250mComparables
Cadia-Ridgeway comparable BC Porphyries
features Table 3. Porphyry copper deposits of the northwestern Cordillera
Deposit Type of tonnes Cu Au Metal type
(%) (git)
• Banded quartz-magnetite veins Kemess North Resources lnd+lnf 0.22 0.42 Cu-Au * Diorite-
hosted,
'<
Kemess South Past production 0.16 0.40 Cu-Au high
Au:Cu
The high Au content and the
Kemess East Resources lnd+lnf 0.37 0.41 Cu-Au
• Kwanika Central Resources Meas+lnd+lnf 0.24 0.24 Cu-Au
Au:Cu ratio Cl
Kwanika South Resources Inf 0.26 0.08 Cu-Au-Mo
Red Chris Past production 0.43 0.26 Cu-Au
2015-2019
• Calcic alteration directly Pre-mining reserves 0.36 0.27
associated with mineralization Resources Meas+lnd+lnf 0.32 0.35
Tatogga (SaddleNorth) Resources lnd+lnf 0.25 0.32 Cu-Au
• The apparent strong structural Schaft Creek Resources Meas+lnd+lnf 0.24 0.18 Cu-Au-Mo
control Copper Mountain Past production 0.49 0.13 Cu-Au
Reserves 0.24 0.11
Resources Meas+lnd+lnf 0.21 0.10Targets
Four major target areas
Kliyul Zone
Outcropping Cu-Au mineralization Property Magnetics
2 new chargeability high anomalies along strike
Drilled porphyry mineralization open in several directions
Bap Ridge
1.3km by 0.7km Ag-Zn-Pb +/-Cu-Au soil anomaly
600m x 300m Cu/Zn, Mo and Mn depletion anomaly
Extensive phyllic alteration at surface
Anomalous Cu and extensive anhydrite veining in
preliminary drilling
Porphyry-style veining increasing to the SE
IP/Magnetic high anomalies untested at depth
Ginger-Shadow Zone
Coincident Cu soil and IP chargeability high anomaly
Adjacent to zone of propylitic and sodic-calcic alteration
Mt. Milligan Kemess South
M39 Zone Red Chris
Large Cu and multi-element soil anomaly associated with a
magnetic high
Numerous vein and skarn showingsPacific Ridge Exploration Ltd. 1111 Melville Street, Suite 1100 Vancouver BC V6E 3V6 www.pacificridgeexploration.com Blaine Monaghan President & CEO Phone: 604 687 4951 bmonaghan@pacificridgeexploration.com
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