Stardust Project - Sun Metals
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Stardust Project
A high grade polymetallic district
in central British Columbia
November 2018
Forward Looking Statements
This presentation contains “forward-looking information” within the meaning of Canadian performance and accordingly undue reliance should not be put on such statements due to their
securities legislation and “forward-looking statements” within the meaning of the United States inherent uncertainty.
Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). All
statements, other than statements of historical fact, that address activities, events or
All mineral resource information has been estimated and disclosed in accordance with the
developments that Sun Metals Corp. (“Sun Metals”) believes, expects or anticipates will or may
definition standards on mineral resources and mineral reserves of the Canadian Institute of
occur in the future including, without limitation: statements relating to the proposed acquisition
of the Stardust Project (the “Acquisition”); funding availability and the expected source of funding Mining, Metallurgy and Petroleum referred to in Canadian Securities Administrators National
for 2018 activities; resource estimates; future exploration and operating plans, including the Instrument 43-101 (“NI 43-101”) - Standards of Disclosure for Mineral Projects, which requires
anticipated advancement of the Stardust Project; the release of Sun Metals common shares from disclosure of mineral resource information. U.S. reporting requirements for disclosure of mineral
escrow; the annual cash payments, issuances of shares and minimum annual property properties are governed by the United States Securities and Exchange Commission Industry Guide
expenditures of Sun Metals required in connection with the Acquisition; and the top-up shares of 7, which sets forth substantially different guidelines than NI 43-101.
Sun Metals to be received by Lorraine Copper Corp. and the NSR to be retained by Lorraine
Copper Corp. on the Stardust Project are forward-looking statements. These forward-looking This presentation does not constitute an offer to sell or a solicitation of an offer to buy any of the
statements reflect the current expectations or beliefs of Sun Metals based on information
securities in the United States. The securities have not been and will not be registered under the
currently available to Sun Metals and often use words such as “expects”, “plans”, “anticipates”,
United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities
“estimates”, “intends”, “may” or variations thereof or the negative of any of these terms. All
forward-looking assumptions are made based on the current beliefs of the management of Sun laws and may not be offered or sold within the United States or to U.S. Persons unless registered
Metals as well as various assumptions made by them and information currently available to them. under the U.S. Securities Act and applicable state securities laws or an exemption from such
Generally, these assumptions include, among others: the presence of and continuity of metals at registration is available.
the Stardust Project at estimated grades; the availability of personnel, machinery and equipment
at estimated prices and within estimated delivery times; currency exchange rates; metals sales Compliance with NI 43-101
prices and exchange rates assumed; tax rates and royalty rates applicable to the proposed
mining operation; the availability of acceptable financing; anticipated mining losses and dilution Certain information in this presentation is derived from the results of a mineral resource estimate
and success in realizing proposed operations. of the Stardust Project prepared by GeoSim Services Inc in accordance with NI 43-101. A copy of
the technical report for the Stardust Project entitled “Stardust Project - Ni 43-101 Technical Report
Forward-looking statements are subject to a number of risks and uncertainties that may cause - Omineca Mining Division, British Columbia” with an effective date of January 8, 2018 is available
the actual results of Sun Metals to differ materially from those discussed in the forward-looking on the Sun Metals website at http://www.sunmetals.ca or on Sun Metals SEDAR profile at
statements and, even if such actual results are realized or substantially realized, there can be no www.sedar.com.
assurance that they will have the expected consequences to, or effects on, Sun Metals. Factors
that could cause actual results or events to differ materially from current expectations include, The scientific and technical information in this presentation has been reviewed and approved by
among other things: risks and uncertainties relating to the Acquisition, such as Sun Metals ability Ian Neill, P.Geo., a qualified person as defined in NI 43-101.
to complete the Acquisition; risks related to regulatory approvals related to the Acquisition; risks
and uncertainties related to ability to obtain or maintain necessary licenses, permits, or surface Sun Metals has not independently verified any of the data from third party sources referred to in
rights; risks associated with technical difficulties in connection with exploration activities; risks this presentation or ascertained the underlying assumptions relied upon by such sources. Sun
and uncertainties related to the accuracy of mineral resource estimates and exploration results, Metals does not assume any responsibility for the accuracy or completeness of this information
future cash flow, total costs of exploration; the possibility that future exploration, development or for any failure by any such other persons to disclose events which may have occurred or may
or mining results will not be consistent with Sun Metals expectations; risks relating to variations affect the significance or accuracy of any such information but which are unknown to Sun Metals.
in the mineral content within the mineral identified as mineral resources from that predicted;
risks related to completion of a public event.
The information contained in this presentation does not purport to be all-inclusive or to contain
all information that prospective investors may require. Prospective investors are encouraged to
Any forward-looking statement speaks only as of the date on which it was made, and except as conduct their own analysis and review of Sun Metals and of the information contained in this
may be required by applicable securities laws, Sun Metals disclaims any intent or obligation to presentation. Sun Metals has not authorized anyone to provide investors with additional or
update any forward-looking statement, whether as a result of new information, future events or different information, and any such information should not be relied upon.
results or otherwise. Although Sun Metals believes that the assumptions inherent in the forward-
looking statements are reasonable, forward-looking statements are not guarantees of future
2
Oxygen Group
3
Share Structure and Ownership
Common Shares
Escrow & Pooled shares (Sept 21, 2018), release over 36 months 28,264,751
Free trading – Institutional 8,400,000
Free Trading - Retail 41,403,650
Total* 78,068,401
Options and Warrants
Options @ $0.25 (proceeds $1.16 million) 4,550,000
Callable Warrants: $0.35 for 5 years (proceeds $9.0 million) 25,788,400
Callable Warrants: $0.35 for 1.5 years (proceeds $0.2 million) 500,000
Finders Warrants: $0.30 for 12 months (proceeds $0.3 million) 1,173,000
Fully Diluted
Total 110,079,801
*Shares held by Insiders and Founders: 34,342,001
4
Opportunity
Stardust Property –
A significant polymetallic district covering 96 km2 in central BC
• Option to acquire 100% of the project from Lorraine Copper - signed August 2017
• Rich exploration history dating back to 1944
• Activity to date: ~$25 million invested1:
• 405 holes drilled (80,000 m)
• 5800 soil samples
• 425 line kilometers of mag and 390 line kilometers of VLF
• 2,200 metre corridor of mineralization including four mineralization styles
• Canyon Creek Cu-Au skarn zone is open for expansion and contains a resource:2
Category Tonnes Copper (%) Gold (g/t) Silver (g/t) Cu (Eq.) (%)
Indicated 985,000 1.34 1.59 36.8 2.92
Inferred 1,985,000 1.24 1.72 30.5 2.65
1 Estimated and approximate value in 2018 dollars: ((80,000 m X $250 per m) + $5,000,000 in other surveys and work)
2 NI 43-101 compliant resource estimate, completed by Qualified Person Ron Simpson, P.Geo. of GeoSim Services Inc., January 2018. For further detail, see press release dated January 8, 2018 and the
Stardust Project NI 43-101 Technical Report both available at www.sunmetals.ca
5
Stardust Property
Located adjacent to the Kwanika Creek
deposit on the Pinchi Fault,
approximately 250 km northwest of
Prince George, B.C.
Takla First Nation Territory. Agreement
signed in June 2018.
6
2018 Target Areas
7
Canyon Creek Skarn zone Cross Section
8
Canyon Creek Skarn zone Long Section
DDH18-SD-421
Grade Detail DDH18-SD-421
Conceptual Exploration Model
after Peter Megaw
12Exploration Zones
• Large, coherent, integrated
porphyry – skarn – manto -
epithermal system.
• Mineralization trends
northwest continuously for
2,200 meters.
• All zones open for
expansion.
• Regional geophysical and
geochemical data indicate
system extends well beyond
the identified mineralized
zones.
13Regional Magnetics
• Large, obvious intrusive
complex – only partially
tested by drilling
• Exceptional potential for
additional porphyry –
skarn – manto-epithermal
mineralization
• 2018 survey (1VD
Displayed) has provided
much better resolution
around the perimeter of
the magnetic high feature.
14Assay Highlights from Previous Drilling1
Skarn Manto
Vein Valley Limestone
1Quoted drill intercepts are from historic drilling completed by Alpha Gold who owned the project at the time. There was no QA/QC program implemented on work prior to 2006.
The quoted intervals have drill logs and assay certificates for verification.
152018 Exploration Program • Mexican Field Workshop – P. Megaw • Heli-borne VTEM Magnetics Survey • Lidar & Photogrammetry • Mapping and Prospecting • Soil Sampling • C – O Isotope Analysis • Relog Historic Core – Resampling • Structural Geology • Diamond Drilling • Borehole EM
2018 Exploration Program Results
• Assays will continue to flow in over November
• Other technical survey results expected
during that same time period
• Will begin planning for 2019 when the 2018
reporting is complete
• Early start on drilling in 2019
17The Team
Founders and Board
Donald McInnes, Chairman
Since 1993, Mr. McInnes has been the founder, president and a director of a number of publicly traded mineral exploration companies. Mr. McInnes was a Director of Fronteer
Gold (2001 to 2011), founder of Kutcho Copper Corp. (formerly Western Keltic Mines Inc.), True Gold Mining and True North Nickel. He was the founder and Vice Chair and CEO
of Plutonic Power Corporation, that invested $ 1 Billion in creating BC’s largest independent clean power company. He is currently Vice Chairman of Alterra Power Corp. Mr.
McInnes is a past Chair of the Independent Power Producers Association of British Columbia, a past Governor of the Business Council of British Columbia, past President and
Director of the Association for Mineral Exploration British Columbia, and past Director of the Prospectors and Developers Association of Canada. He is a recipient of AME BC’s
Gold Pan Award, a lifetime Achievement Award from CEBC, an EY Entrepreneur of the Year Award and holds a Honourary Doctor of Technology Degree from BCIT.
Mark O’Dea Ph.D., P.Geo.
Mark O’Dea is mining industry entrepreneur. A seasoned geologist and deal maker, Dr. O’Dea has built and financed international mining companies from Canada to Africa,
taking them from exploration and discovery to development and operations. His companies are built on a common foundation: high-quality, long-life mines with lasting
economic opportunities, community benefits and environmental protection. Most recently, Dr. O’Dea co-founded and served as executive chairman of True Gold Mining. After
building the Karma Heap Leach Gold Mine in Burkina Faso, West Africa, True Gold was sold to Endeavour Mining in 2016. As co-founder and CEO of Fronteer Gold, Dr. O’Dea
grew the company from startup to its 2011 sale to Newmont Mining Corp., a deal that included the spin-out of Liberty Gold. He also co-founded and served as Chairman of True
North Nickel and CEO of Aurora Energy, sold to Royal Nickel Corp. and Paladin Energy in 2014 and 2011, respectively. Founder of Oxygen Capital Corp., Dr. O’Dea is currently
chairman of Liberty Gold, director of Pure Gold Mining and Discovery Metals. His many honours include EY’s Entrepreneur of t he YearTM for 2014 in the Pacific mining and metals
category, the Globe and Mail’s Top 40 Under 40, and the Association for Mineral Exploration British Columbia’s Murray Pezim Award for perseverance and success in financing
mineral exploration.
Sean Tetzlaff CPA, CA
Sean Tetzlaff is an experienced financial professional with over 20 years of experience in the mining industry. Recently he served as Chief Financial Officer and Corporate
Secretary of Blue Gold Mining, which merged with Riverstone Resources in 2012 to become True Gold Mining. He also served as CFO, VP Finance and Corporate Secretary of
Fronteer Gold from 2005 to 2011. During this time, he had oversight of financial, legal, and contractual matters for all of Fronteer Gold operations and international subsidiaries.
He was responsible for the successful execution of numerous equity investments, asset divestitures, and merger and acquisitions transactions including the sale of Fronteer to
Newmont for $2.3 billion in 2011. Mr. Tetzlaff also served as CFO of Aurora Energy Resources from 2006 to 2008, helping the company grow from initial public offering through
to the advancement of one of the world's largest undeveloped uranium deposits. Mr. Tetzlaff has a tax background, having worked with KPMG LLP from 2000 to 2004
Glen Garratt P.Geo.
Mr. Garratt completed a B.Sc. in Geology from the University of British Columbia in 1972 and has pursued a career in mineral exploration since that time. After working for a
number of major and junior mining companies he founded a consulting/contracting company in 1979 and continues to service the mineral exploration community as President
of Mincord Exploration Consultants Ltd. In 1986 Mr. Garratt co-founded Eastfield Resources Ltd., a TSX-Venture Exchange listed company, which focused on mineral exploration
in western North America. Subsequently Mr. Garratt has been active in developing several other junior exploration companies and is currently an officer and director of Eastfield
as well as Cariboo Rose Resources Ltd. Woodjam Copper Corp. and Lorraine Copper Corp. which also trade on the TSX-V.
18The Team
Special Advisor to the Board
Rick Bailes M.Sc., P.Geo.
Mr. Bailes served as the President and Chief Executive Officer of Canadian Gold Hunter Corp., (International Curator Resources Ltd.) from September 2002 to April 17, 2009 and
also served as its Vice President. Mr. Bailes had been an Independent Director at True Gold Mining Inc. from 1996 until its acquisition by Endeavour Mining in 2016. He served as
a Director of Canadian Gold Hunter Corp. from 2002 to 2009, as a Director at Fortress Minerals Corp. from 2005 to 2011, as Director of Champion Resources Inc. (subsequently
Red Back Mining Inc.), as a Director of Riverstone Resources Ltd. and as a Director of Newstrike Capital Inc. until December, 2008.
Executive
Steve Robertson (President & CEO) P.Geo.
Steve Robertson joined Sun Metals from Imperial Metals, a mid-tier mining company that has been involved in the development and/or operations of five mines, primarily in
British Columbia. In 2013 Steve was appointed as Vice President, Corporate Affairs with responsibilities including government relations, community relations, aboriginal affairs
and corporate communications. As a member of the executive team, he was actively engaged in the planning and execution of strategies to meet Imperial’s corporate
objectives. Prior to his VP appointment he was Manager of Exploration at Imperial including responsibility for Red Chris exploration, feasibility, permitting and development, and
also exploration at Mount Polley. He designed and executed many exploration programs including the highly successful deep dri lling at Red Chris. Always actively engaged
within the mining community, he currently serves as director for AME BC and previously sat on the Geoscience BC Technical Advisory Committee. As well, he was a founding
director of the BC Aboriginal Mine Training Association. Mr. Robertson was awarded the 2016 E.A. Scholz Award for Excellence in Mine Development for his leadership role in
development of the Red Chris mine.
Ian Neill (VP Exploration) P.Geo.
Ian Neill is a registered professional geologist with over 25 years experience in leadership and discovery, working throughout the Americas exploring for base metals, gold and
diamonds. Ian has extensive experience working in northern and remote conditions with both major and junior mining companies. As project manager of the Wolfden
Resources High Lake project in Nunavut, he led the team which was awarded the 2003 PDAC Prospector of the Year award for the discovery of the West Zone VMS deposit
(18mT). Mr. Neill also managed the MMG discovery of the High Lake East VMS deposit (5mT) in Nunavut in 2012 and was part of the Kennecott Canada discovery team at the
Diavik Diamond project. Ian obtained a B.Sc. (hons.) degree in Geology from the University of British Columbia in 1992. Mr Neill’s most recent experience was as Canadian
Exploration manager for the Australian based mid-tier miner MMG, which included time seconded to the Global Zinc team evaluating CRD deposits in Peru.
Lauren McDougall (CFO and Corporate Secretary) CPA, CMA
Ms. McDougall is a Chartered Professional Accountant with 8 years of experience in corporate financial accounting. Ms. McDougall is currently the Controller of Pure Gold Mining
Inc., and previously was the Manager of Accounting of Primero Mining Corp. Ms. McDougall obtained a Bachelor of Commerce degree from Carleton University in 2009.
19The Team
Technical Advisors
Peter Megaw Ph.D., P.Geo.
Dr. Megaw, C.P.G. is President of INDEX/Cascabel and co-founder of MAG Silver Corporation. He has a Ph.D. in Economic Geology from the University of Arizona and more than
35 years of relevant experience focused on silver and gold exploration. He is a certified Professional Geologist by the Ameri can Institute of Professional Geologists and an
Arizona Registered geologist. Dr. Megaw has been instrumental in a number of mineral discoveries in Mexico including new ore bodies at existing mines, Excellon Resources’
Platosa Mine, and MAG Silver’s Juanicipio-Fresnillo, Zacatecas; and Cinco de Mayo-Pozo Seco, Chihuahua. He was instrumental in assembling the Mexican property portfolio now
held by Revolution Resources Corp. and arranged the acquisition of X-Strata’s Latin American holdings by Linear Gold. Dr. Megaw has served on the Board of MAG Silver since
2005, Candente Gold since 2009 and Minaurum Gold since 2010. Dr. Megaw was awarded the Society of Mining Engineers 2012 Robert M. Dreyer Award for excellence in Applied
Economic Geology and the Carnegie Mineralogical Medal for 2009. He is the author of numerous scientific publications on ore deposits and is a frequent speaker at academic
and international exploration conferences.
Bill Morton M.Sc., P.Geo.
Mr. Morton, serves as the President and Chief Executive Officer of Lorraine Copper Corp., Consolidated Woodjam Copper Corp., Eastfield Resources Ltd., and Cariboo Rose
Resources Ltd. He has been Vice President and Partner of the Mincord Exploration Consultants Ltd. since 1987. He has been Technical Advisor of Fort St. James Nickel Corp. since
February 2015. He has been involved in the senior management of public resource companies for almost 20 years and is or has been a Director or Technical Advisor to more
than a dozen public resource companies in that time. He has been a Professional Geologist since 1972 and is a Member of the B C Association of Professional Engineers and is a
Member in good standing with the Association of Professional Engineers and Geoscientists of British Columbia. Mr. Morton holds a Bachelor of Science Degree in Geology from
Carleton University and a Masters of Science Degree from the University of British Columbia.
Jim Oliver Ph.D., P.Geo.
Dr. Oliver has more than 25 years exploration experience specializing in global mineral deposit evaluations and early to advanced stage project valuations, with particular
emphasis on belt, regional and detailed geological mapping programs, lithologic, structural and alteration mapping, Archean and Epithermal gold, porphyry copper, molybdenum
gold, SedEx and REE mineral systems. He has successful track record. He served as Vice President of Geology for the Hunter Di ckinson (HDI) Group of Companies, where he was
instrumental in the successful acquisition of several mineral projects and deposits and provided leading edge geoscience input on a diverse range of deposit types. He has
worked on five continents, in 25 countries and examined or worked on approximately 400 mineral occurrences or deposits. He served as a Geological Consultant to major mining
companies, to junior companies and to government geological surveys. He is a committed and energetic explorationist.
Gerry Ray Ph.D., P.Eng., P.Geo.
Dr. Ray completed his undergrad and graduate studies in England before heading to Africa, Asia and Australia. Eventually he came to Canada and settled in British Columbia
where he worked with career with the BCGS and mapped several mining camps and carried out thematic studies on a number of deposit types. His initial work focused on gold
veins in the Coquihalla Gold Belt and Harrison Lake areas. He subsequently went on to study skarns, massive sulphides and iron oxide copper-gold deposits. Based on this
work, Gerry has become a regular contributor to “Economic Geology”. His true passion is skarn deposits and his work on the famous Hedley gold skarn developed into a study of
all types of skarns throughout the province. He now works around the globe as a consultant to mining companies.
20Summary
Well positioned to create shareholder value via discovery and delineation
of the mineralized zones on its extensive land package:
• High–quality exploration project in prolific Central B.C.
• Project heavily de-risked ► $25M invested to date
• B.C. is globally considered a safe jurisdiction for mining investment
• “Flight to Quality” means the time is right for Stardust
• Drilled best intercept ever seen at Stardust in 2018
• Exploration Agreement with First Nation aligns community interest with
Sun Metals
21Corporate Inquiries
604.683.7790
info@sunmetals.ca
SUNM:TSX.V
1900 – 1055 West Hastings Street
Vancouver, BC V6E 2E9
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