company presentation august 2018 - amazon s3 · 2018-08-24 · • extensive mining career for over...

PHOENIX GLOBAL MINING LTDCompany Presentation August 2018

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Disclaimer

The content of this Presentation has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (FSMA). Relianceon this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assetsinvested. If you are in doubt about the content of this Presentation and/or any action you should take, you are strongly recommended to seek your own independentfinancial advice immediately from your stockbroker, solicitor, accountant or other independent financial adviser authorised under the FSMA.

The content of this Presentation has not been reviewed, authorised or otherwise approved by the Financial Conduct Authority (FCA) or any other regulatory body.This Presentation has not been approved for the purpose of Section 21 of the FSMA as amended or any other equivalent laws. The content of this Presentation hasnot been approved by a person authorised by the FCA. This Presentation is not a prospectus and accordingly has not been prepared to the standards required by PartVI of the FSMA and the Prospectus Rules sourcebook made by the FCA. This Presentation is directed only at persons (a) who have professional experience in mattersrelating to investments and who are investment professionals as specified in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order2005 (the Order); (b) falling within Article 43 of the Order (‘members and creditors of certain bodies corporate’); (c) falling within Article 48 of the Order (‘certifiedhigh net worth individuals’); (d) falling within Article 49(2) a)-(d) of the Order (‘high net worth companies, unincorporated associations etc’); (e) falling within Article50(1) of the Order (‘certified sophisticated investors’); or (f) falling within Article 50A(1) of the Order (‘self-certified sophisticated investors’) (collectively known asRelevant Persons). This Presentation is directed only at Relevant Persons and must not be passed on to or acted or relied on by persons who are not Relevant Persons.

This Presentation is strictly confidential and may not be reproduced in any form, in whole or in part. Failure to comply with this restriction may constitute a violationof applicable securities laws. This Presentation contains both historical facts and statements relating to Phoenix Global Mining Ltd (Phoenix) current plans, estimates,objectives and strategies which are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and otherimportant factors beyond Phoenix’s control that could cause the actual results, performance or achievements of the Company to be materially different from futureresults, performance or achievements expressed or implied by such forward-looking statements. Accordingly, any reliance you place on such forward-lookingstatements will be at your sole risk.

The information contained in this Presentation has not been independently or legally verified and is subject to change without notice. No representation or warranty,express or implied, is given to the accuracy, completeness or fairness of the information or opinions contained in this document and no liability is accepted by Phoenixor any of its directors, members, officers, employees, agents or advisers for any such information or opinions.

This information is being supplied to you, in whole or in part, for information purposes only and not for any other purpose. In particular, this Presentation is notintended for publication outside of the United Kingdom and the distribution of this Presentation in jurisdictions other than the United Kingdom may be restricted bylaw and persons into whose possession this document comes should inform themselves about, and observe any such restrictions. Any failure to comply with theserestrictions may constitute a violation of laws of any such other jurisdiction.

This Presentation and the information contained in it do not constitute a prospectus and do not form any part of an offer of, or invitation to apply for,securities. Neither this Presentation, nor any part of it, nor the fact of its use, should form the basis of, or be relied on in connection with, any contract orcommitment or investment decision whatsoever.

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Company Overview (AIM:PGM)

Robust portfolio of projects in North America offering access to medium term cash flow

Substantial exploration upside leveraged to copper, cobalt and gold

Dual listing on New York OTCQX Market targeted for September 2018

EXPLORATIONDEVELOPMENT

Cobalt, Idaho, USA

• Strategic land package acquired - 1,180 acres in

the proven Idaho Cobalt Belt

• Exploration programme commencing Q3 2018

Gold, NWT, Canada

• High grade gold deposit and significant historic

exploration completed

• Option to acquire 80%

Empire Mine, Idaho, USA

• Open pit copper oxide heap leach SX-EW project

undergoing Bankable Feasibility Study

o Targeting 8,800 tons (8,000 tonnes) a

year copper cathode production

• JORC compliant resource of 21.4 million tons at

0.47% copper for 100,000 tons contained

copper

• Clear route to production by 2021

• Significant exploration upside

• 40,000 foot (12,200 metres) drilling campaign

underway to expand measured and indicated

resources

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Corporate Overview

Listed on AIM on 29 June 2017

Market LSE AIM

Ticker PGM

Share in Issue 318.0 million

Warrants 15.23 million

Options 12.25 million

Share Price 3.30p(as of 26.07.18)

Market Cap £10.49 million(as of 26.07.18)

Major Shareholders

Management 11.50%

Morebath Fund 7.05%

ExGen Resources Inc 4.18%

Share Price Graph (July 2017 – July 2018)

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Proposed Dual Listing – AIM & New York (OTCQX)

• Transformational step for the Company

• Improve access to the Company’s shares for a wide range of

North American investors

• With all the Company’s assets in North America it would be an

appropriate next step

• In order to list on the OTCQX, PGM is conducting a share consolidation

of every 10 existing ordinary shares into one new ordinary share,

increasing PGM’s share price to a level acceptable to the OTCQX

• Appointed Murdock Capital Partners as corporate advisers for the New

York OTCQX listing

OTC Market Group said the list represents an average total return of 120% to investors and traded an aggregate US$19.9 billion in dollar volume in 2017

Mining Journal – 25 Jan 2018

Mining companies took two of the top three spots and represent 20% of the companies in the latest annual OTCQX “Best 50” ranking behind Bitcoin Investment Trust

The list ranked top performing companies on the OTCQX Best Market based on 2017 total return and average daily dollar volume growth

Copper cathode production from an SX-EW plantCopper oxide in Empire diamond drill core

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Board & Management Marcus Edwards-Jones,

MA. |Executive Chairman|

• Significant experience in global institutional capital raisings

• MD of LLoyd Edwards-Jones S.A.S., A Paris and Dubai-based finance boutique specialising in selling equities to institutional clients and advising resources companies

• Graduated from Oxford University with an MA in Ancient and Modern history

• Recently served as a Non-Executive Director of Georgian Mining Corporation.

Dennis Thomas, ACSM. FIMMM. FGS EurIng

C.Eng. |CEO|

• Over 47 years’ mining operational experience

• Held senior management roles including CEO of Delta Pacific Mining plc and was a Director of Cariboo Gold / Gold Ridge Resources, Rembrandt Gold Mines Limited and St Genevieve Resources

• He is a Non-Executive Director of ExGen Resources Inc and of the 8 0 % owned Konnex Resources Inc

• A graduate mining engineer from Camborne School of Mines

Richard Wilkins, MA FCA | CFO |

• Chartered Accountant with considerable experience in the mining sector

• Founding Director of Zeravshan Gold in Tajikistan (Nelson Gold: TSX)

• Co-founder and director of Oxus Gold (AIM) which produced over 500,000oz of gold and 2.2m oz of s i l v e r from the Amantaytau Goldfields mine in Uzbekistan

• Non-executive director of Konnex Resources, which owns the Empire Mine, and of AIM-listed Goldstone Resources• A graduate of Pembroke College, Oxford University

Roger Turner, ACSM. MSc. MIMMM.

C.Eng. | Director and CTO|

• Extensive mining career for over 40 years• Copper mining at Granisle Copper in British Columbia, Hudson Bay Mining & Smelting in Manitoba, Falconbridge in Uganda and Rio Tinto

Technical Services in London• Previously CEO of Nelson Gold (TSX) and co-founder and CEO of Oxus Gold (AIM) which designed, financed and built gold mines in

Tajikistan and Uzbekistan• Previously Chairman of Minco Plc and CEO of Ovoca Gold Plc, both AIM listed, and was a Director of Anglesey Mining Plc• A graduate mining engineer from Camborne School of Mines with a M.Sc. degree in Economic Geology from Leicester University

Andre Cohen, B.Ec. MA, M.Phil. | Non-

Executive Director |

• Previously CEO and founder of Coherent Financial Solutions, a firm specialising In advising transportation and infrastructure clients on strategy and finance

• An experienced banker; has advised on significant fund raisings and international transportation, infrastructure and project financings

• A graduate in economics from Sydney and Yale Universities

• Over 15 years of experience in the North American investment and capital markets, including capital raising/management, private equity, and startup ventures

• Diverse knowledge and experience within the entertainment, digital media, management consulting, and mining industries, having taken companies from startup through to revenue generation and successful exit

• Bachelor of Commerce (Finance) degree from the University of British Colombia• CEO and Director of ExGen Resources, listed on the TSXV: EXG and Non-Executive Chairman of Konnex Resources Inc

Ryan McDermott, CEO of Konnex Resources |General Manager of

the Empire Mine |

• Over 25 years’ experience in mining and mineral exploration for base and precious metals• Held various senior positions in the industry including Director of mining operations in Idaho and Montana; general manager; senior

project manager in western USA and in Alaska

• Worked for SECOR International,Inc; Kinross Gold Corp; Plexus/Sovereign Expl: Kleinfelder West, Inc.• Recently responsible for permitting a new mine into production in Idaho for GHRMC• Graduated from Idaho State University with a B.Sc. degree in Geology and joined Konnex in March 2017

Jason Riley, BCom. |Non-Executive

Director | CEO and Director, ExGen

Resources|

The Empire Mine

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PHASE 1• Open pit copper oxide heap leach SX-EW project with JORC compliant

resource of 21.4 million tons at 0.47% copper for 99,565 tons (90,324 tonnes)

contained copper

• Clear route to production

• PEA completed and published in April 2018 indicates robust project

economics for 143.01 million pounds copper cathode production

(71,500 tons based on existing resources)

• Published updated resource in November 2017

• BFS underway

• 40,000 foot (12,200m) drill programme in progress to further update

and expand oxide resources and reserves

• Permitting to commence in 2018, construction start up planned for

2020, and production by 2021

• Significant exploration upside

• Exploration targets to the north and west of the existing open pit with

2018 scout drilling programme underway

PHASE 2• Potential major sulphide copper, zinc, gold, silver and tungsten deposit

through and below the old underground mine below the oxide open pit

Empire Mine - Overview

Re-opening the historic Empire Mine which was in operation between 1901 to 1942It produced 694,000 tons ore at an average recovered grade of

3.64% copper, 1.65 g/t of gold and 53.90 g/t of silver

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Idaho

• Idaho is the fastest growing state in the US

• It has a natural resource based economy

• Federal and state permitting process runs concurrently, not sequentially

as in other states

• New Office of Energy & Mineral Resources created within Governor’s

office to oversee speedy implementation (and permitting) of projects

Empire Mine - Location

Location

• Brown field mine site four miles west of Mackay

• PGM recently increased its land package to

1,774 acres

• Good access to existing infrastructure

• Power & water

• Accessible by road throughout the year

• Close proximity to a number of airports

http://www.musgroveminerals.com/PP/Empire_Location.pdf

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Empire Project Mineral Claims

Patented Unpatented

Lead agency for

permitting on

patented lands is the

State of Idaho

Department of

Environmental Quality.

The Federal

Government has

passed its title to the

claimant, making it

private land

Federal approval

required / managed by

the Federal

Government

Owner has exclusive

title to the locatable

minerals and title to

the surface and other

resources amenable to

economic extraction

Claimant leases the

right to extract

minerals and the land

remains Federal

property (annual

maintenance c.US$155

per claim)

Permitting process is

straightforward and

relatively fast

Permitting takes

longer

22 “Patented” claims + 90 “Unpatented” claims totalling 1,837 acres in Custer County

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Empire Mine – Long Section

The Empire copper oxide open pit – surface weathering has converted copper sulphide minerals to copper oxides to a depth of approximately 400 feet (120 metres)

• The mineralisation intersected is oxidised from surface to a vertical depth of approximately 400 feet (120 metres)

• Unaltered sulphide mineralisation occurs below the weathered surface oxide zone

• The transition zone between oxide and sulphide extends over several metres

• The surface oxide mineralisation remains open along strike

• The underlying higher grade sulphide zone is also open in all directions, and remains virtually unexplored

Source: US Department of the Interior “Geology of the Empire Mine near Mackay, Idaho” by FW Farewell and RP Fall 1944

Old underground workings

Bend in section

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Empire Mine – Open Pit

Open Pit

Mine Waste

Dump

Drill Hole Locations

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Empire Mine – Oxide Resource Copper Block Model

Pit outlines

Source: Hard Rock Consulting

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Empire Open Pit NI 43-101/JORC Compliant Resource

April 2018 PEA Empire Open Pit oxide resources (in US short tons)

Contained Metal Value US$

Copper 99,565 tons 597,396,000

Zinc 28,609 tons 74,382,000

Gold 165,000 ozs 206,250,000

Silver 6,419,000 ozs 102,704,000

Total Value Contained Metal 980,732,000

Cu $3.00/lb

Zn $1.30/lb

Au 1,260 $/oz

Ag 16 $/oz

Classification Tons

% pounds % pounds oz/t ozs oz/t ozs

Measured 3,633,800 0.53 38,736,000 0.11 7,994,000 0.006 21,000 0.257 935,000

Indicated 7,851,700 0.51 79,773,000 0.15 23,555,000 0.007 58,000 0.334 2,625,000

Measured + Indicated 11,485,500 0.52 118,509,000 0.14 31,549,000 0.007 79,000 0.310 3,560,000

Inferred 9,880,100 0.41 80,622,000 0.13 25,668,000 0.009 86,000 0.289 2,859,000

Copper Gold SilverZinc

1 metric tonne = 1,000 kilogrammes

2,204.62 pounds

1 US short ton = 2,000 pounds

1 ton = 0.907 tonnes

1 tonne = 1.102 tons

US short tons vs metric tonnes

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PEA Results for Copper Oxide SX-EW project

The PEA was completed in April 2018

Cash cost of copper production 1.85 US$ / lb

Pre production capital costs 67,966,000 US$

LOM cash flow pre tax 134,580,000 US$

LOM cash flow after tax 117,940,000 US$

NPV (5%) pre tax 82,800,000 US$

NPV (5%) after tax 70,580,000 US$

NPV (7.5%) pre tax 64,210,000 US$

NPV (7.5%) after tax 53,660,000 US$

IRR after tax 23.50 %

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Empire Mine NI 43-101 BFS Consultants

BFS Function Consultant

Lead Consultant

RPM GlobalGreenwood Village,

Colorado

Resources, Reserves

Mine Design and Production Schedule

Mine Capital and Operating Cost Estimates

Project Financial Analysis and Final NI 43-101 FS Report

Open Pit Geotechnical Pit Slope Stability StudyCall and Nicholas Tucson, Arizona

Hydrology Study

Heap Leach Pad and Ponds Designs Golder and Associates Tucson, Arizona

Process Plant Design

Samuel EngineeringGreenwood Village,

ColoradoMetal Recoveries

Processing Capital and Operating Cost Estimates

Metallurgical Testwork Auric Laboratories Salt Lake City, Utah

Environmental and Permitting Cascade Earth Sciences Pocatello, Idaho

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Empire Heap Leach SX-EW BFS Work Programme

RPM Global and Samuel Engineering, in Denver, appointed BFS consultants

Five drills commenced work on a 40,000 foot (12,200 m) drill campaign in June 2018 and scheduled for completion in October 2018

Drilling to increase measured and indicated resources and approx. 10,000 feet (3,050 m) of exploration drilling along strike towards the Horseshoe Mine to the northwest

Optimise ore reserves, mine design and processing design

Complete BFS in Q2 2019 – including environmental base line and impact statements

Maintain dialogue with local community and environmental authorities

Finalise permits for construction and production

Finalise construction finance

During BFS

After BFS

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Empire Mine Sulphide Potential Below the Open Pit

No sulphide exploration since WW2 – potential world class orebody below the open pit

• Potential bulk tonnage copper, gold, silver, zinc, tungsten

underground operation below the open pit oxides within the

8,000 feet strike length of the skarn zone averaging 325 – 500

feet in width

• The ore resources defined to date at the Empire Mine comprise

probably some 5% to 7% of the ore potential of the system*

• In 2017 Phoenix successfully drilled two diamond drill holes to

confirm structure and mineralisation at depth

• 700 and 1,100 adits are currently being reopened and

refurbished to gain access to 10.5 miles of underground

workings

• Management believes the major value of Empire is underground

below the oxide open pit

USGS 1944 700 foot level plan

* Nigel H Maund MSc, DIC, MBA – Arcturus Geoconsult A.R.L - 2016

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Copper Market

Source:- Hamish Sampson – Analyst at CRU’s Copper Team

• PGM targeting 8,000 tonnes (8,800 tons) per

annum of copper by 2021

• Copper pricing forecast to be $8,500 per tonne

($3.85/lb) by 2020

• Citigroup increase this forecast to

exceed $9,000 per tonne ($4.08/lb) by

2028

• Copper is expected to outperform most other

commodities over the next 10 years

• Forecast supply deficit which will have

material impact on pricing

• Lack of new mines coming on stream

• Exhaustion of major existing mines

• Growing demand from new energy and

the growth of electric vehicles

• PGM has substantial copper sulphide

exploration to complete longer term at Empire

at depth and along strike

COBALT EXPLORATION, IDAHO

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The Idaho Cobalt Belt

• 100% ownership via Borah Resources - Phoenix

registered the wholly owned Idaho company

Borah Resources Inc specifically to develop

Bighorn and Redcastle

• Borah staked and filed the two properties valid

in perpetuity as long as the property is worked

each year and the annual maintenance fees are

paid

• Properties are located in a previously producing

area near to the town of Cobalt in Idaho and are

close to projects being advanced by Canadian

junior miners

• Grades typically 0.4% to 0.6% cobalt on the belt

• Two prospective copper-cobalt properties on the Idaho Cobalt Belt 130 miles north of Empire

• Bighorn Property – consists of 29 unpatented claims over 580 acres

• Redcastle Property – consists of 30 unpatented claims over 600 acres

1,180 acres in the most prospective cobalt belt in the US

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2018 Cobalt Exploration Programme

• All 2017 sample results showed cobalt

mineralisation above detection limits and

ranged from 2.0ppm to 3,120ppm, or 0.31%

cobalt (contained cobalt value per tonne =

$280)

• The sample results showing cobalt values

greater than 100ppm and copper values

greater than 0.5% copper are considered

significant for the purposes of future

exploration and targeting

• Work programme commencing with intent to

generate drill ready targets

Property Sample # Co ppm Cu%

BighornNCOB-19 1360 1.55

NCOB-20 1705 4.12

Redcastle

SCOB-14 148 -

SCOB-18 3120 -

SCOB-19 209 -

SCOB-20 370 -

SCOB-23 209 -

SCOB-24 153 -

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TSX TSXV

Mkt Cap ~$146.7m Mkt Cap ~$118.2m

Developing the Blackbird

and Black Pine

plus processing plant

Acquired Iron Creek

project from US Cobalt

for ~$149m

▪ Targeting production

by 2020

▪ 3.87MT @ 0.59%

cobalt

▪ 9,100m of historic

drilling

▪ 1.3MT@ 0.59%

cobalt

Cobalt Comparison in Idaho

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Cobalt Market

• Cobalt price has increased by three times since

2016

• Supply side risk due to 65% of cobalt being

produced in the DRC

• In February 2018, the US added cobalt to a list

of 35 minerals deemed critical to the economy

• EV batteries’ use of cobalt will result in a

substantial increase in the demand for cobalt

• Cobalt exploration has been limited in the last

five years

• Cobalt M&A is now underway to secure highly

prospective ground in safe jurisdictions that

offer security of supply to end users

• A significant number of new cobalt projects

need to be explored, developed and brought

into production to meet future demand

GOLD EXPLORATION,

CANADA

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Gordon Lake Gold Property

Two mining leases covering an area of 1,505 acres on Gordon Lake 68 miles northeast of Yellowknife in the Northwest Territories of Canada

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Gordon Lake Gold Property

Long section of South Zone No 9 Vein

Pink isosurface: 10 g/t

White isosurface: 17 g/t

• Closely spaced gold zones along a shear zone in a geological setting similar to that of the Giant, Con and Discovery mines

• The Project contains 17 known zones of high grade shear hosted gold mineralisation, over a 1,000 metre strike length identified by geophysical surveys and 59 mineralised diamond core holes drilled into four of these 17 zones which include the below intersections

Historical gold production from the region

INVESTMENT CASE

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Phoenix Investment Case

ADVANCED PROJECT

SIGNIFICANT EXPLORATION

UPSIDE

GOOD LOCATION

STRONG MANAGEMENT

TEAM

DIVERSITY

• Potential major sulphide copper, gold, silver

and tungsten deposit below the near

surface open pit oxide resources

• Clear route to production

• Near term copper production

• Project at BFS stage

• Pro-mining first world jurisdictions

• Excellent access to existing infrastructure

• Highly skilled and experienced Board and

management team

• Portfolio of exploration projects • Cobalt in Idaho• Gold in NWT Canada

• Exposure to a range of commodities• Positive price environment for copper,

cobalt, gold, silver

APPENDIX

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Corporate Structure

Phoenix Global Mining Ltd

AIM:PGM

Konnex Resources Inc* (80%)

Borah Resources Inc* (100%)

Empire MineCu, Au, Ag, W

Idaho Cobalt BeltCo, Cu

Gordon LakeAu (option to acquire 80%)

Lease Agreements23 Patented Claims

32 Unpatented Claims813 acres

Horseshoe Claims54 Unpatented Claims

961 acres

Bighorn Claims29 Unpatented Claims

580 acres

Redcastle Claims30 Unpatented Claims

600 acres

NWT Canada2 Mining Leases

1505 acres

* Idaho Registered SPV Company

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• Copper / gold / silver mineralisation discovered in 1888

• Underground mining from 1901 to 1942

• Underground production to a depth of 1,100 feet from

eleven 100-foot vertically-spaced adits

• Workings were developed on visible high-sulphide

lodes within the ore body

• Mines Inspector reports state run-of-mine grades of 6%

to 8% copper and up to 6 g/t gold

• Much of the copper held in oxide form lost in the

recovery process used at the time

• 1901- 1942 production: 694,000 tons ore at average

recovered grades of 3.64% Cu,1.65 g/t Au, 53.90 g/t Ag

• Concentrate shipped to Bingham Canyon for smelting

• Tungsten ore mined in 1942: 2.1% to 4.3% WO3

Empire Mine – 1901 to 1947

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Empire Mine History

1888

Copper / gold /

silver

mineralisation

discovered

1901 to 1942

Underground

mining to a

depth of 1,100

feet from 11 100

foot vertically-

spaced adits

1901 to 1942

production:

694,000 tons ore

at average

recovered grades

of 3.64% Cu,1.65

g/t Au, 53.90 g/t

Ag

Mines Inspector

reports state run-

of-mine grades of

6% to 8% copper

and up to 6 g/t

gold

APRIL 2018

PEA completed

JUNE 2018

BFS and 40,000

foot drill

programme

underway

APRIL 2018

Increased the

project footprint

from 818 to

1,774 acres

NOVEMBER 2017

Updated JORC Resource for the oxide pit (10,000

feet drilled)

1942

Tungsten ore

mined: 2.1% to

4.3% WO3

1964 to 1997

Total of 220

exploration drill

holes completed

on oxide

resource1997

Metallurgical

tests confirmed

recoveries of 80-

90% Cu in

agitation leach

2001 to 2004

Preliminary

mine

engineering

studies

2004 to 2011

67 drill holes

confirms Cu grades

up to 13.5% and

mineralised

continuity with

thickness up to

220 feet (67m)

2016

PGM acquires

operational

control of the

Empire Mine

2015

PGM acquires

exclusive rights

to the Empire

Mine

Q3 2017Drilled 28

diamond and RC drill holes in the

open pit zone and two deep holes into the

underlying sulphide zone

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Empire Mine Picture Gallery

company presentation august 2018 - amazon s3 · 2018-08-24 · • extensive mining career for over...

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