A Zinc Play With A Bright Future. Corporate Presentation CSE: PSE FSE: PNX

Transcription

1 A Zinc Play With A Bright Future Corporate Presentation CSE: PSE FSE: PNX

2 Disclaimer The information contained in this presentation is provided by Pasinex Resources Limited. ( Pasinex ) for informational purposes only and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to issue, securities of Pasinex or other financial products. The information contained herein is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The views, opinions and advice provided in this presentation reflect those of the individual presenters, and are provided for information purposes only. The presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Pasinex nor its directors officers, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. Except for statements of historical fact, this presentation contains certain forward-looking information within the meaning of applicable securities laws. Forwardlooking information is frequently characterized by words such as plan, expect, project, intend, believe, anticipate, estimate and other similar words, or statements that certain events or conditions may or will occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, the accuracy of mineral grades and related assumptions, planned expenditures, proposed exploration and development at the Golcuk Copper/Silver Project, the Horzum Zinc/Lead Project and the Dadak Copper / Gold Project. Pasinex undertakes no obligation to update forward-looking information if circumstances or management s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. This presentation includes industry, market and competitive position data from industry journals and publications, data on websites maintained by private and public entities, including independent industry associations, general publications and other publicly available information. Pasinex believes that all of these sources are reliable, but we have not independently verified any of this information and cannot guarantee its accuracy or completeness. Industry publications and surveys generally state that they have obtained information from sources believed to be reliable, but do not guarantee the accuracy and completeness of such information. Further, because certain of these organizations are industry organizations, they may present information in a manner that is more favorable to the industry than would be presented by an independent source. In addition, forecasts are often inaccurate, especially over long periods of time. References in this presentation to research reports or articles should not be construed as depicting the complete findings of the entire referenced report or article. The information in each report or article is not incorporated by reference into this presentation.

3 Pasinex Overview 2019 is a transition year with a mine development program to open up deeper zinc mineralization at Pinargozu in Turkey and exploration on the Spur Project in Nevada. 45,757 wet tonnes zinc produced in 2018 from Pinargozu. Profitable operations with over 65% gross margin first three quarters of guidance is 14,000-17,000 wet tonnes zinc. 3 month production hiatus for mine development. SEDEX intersection on Spur Zinc Project in Nevada. Exploration drill program on Akkaya Project. Large land position in a CRD zinc district in Turkey.

4 Zinc Production & Exploration in Turkey and the US High Grade Zinc Carbonate Production & Exploration at Pinargozu Zinc Mine, Turkey 50/50 JV UNITED STATES NEVADA High Grade Zinc Carbonate Exploration at Akkaya Zinc Project, High Grade Zinc Carbonate Turkey 50/50 JV Exploration Project Spur, White Pine County, Nevada 80% Earn In over 4 years Pasinex Resources Ltd. is active with Zinc Projects on two continents TURKEY

5 Pasinex Corporate Profile Capital Structure CSE:PSE; FSE:PNX Shares Issued and Outstanding Share Price (April 1 st, 2019) Market Capitalisation 144,354,370 $ $ 10.8 M Warrants Options None 4.2 M Shareholders Directors & Management 45% 20% Other Top 20 Shareholders Other Shareholders

6 Pasinex Management & Board Steve Williams President & CEO Metallurgy degree and MBA, Mines in Australia and Canada, 20 years with SGS in Metallurgy, Past Managing Director SGS Canada Evan White Manager, Corporate Communications 11 years in marketing in the mining sector Wendy Kaufman CFO Chartered Professional Accountant with 20 years of international financial experience in mining. Formerly CFO at Primero and VP Finance at Inmet Mining Corp Vic Wells Board Chairman Financial expert was CFO / Director for a number of junior exploration companies John Barry VP. Exploration Master s Degree in Geology from Pennsylvania State University, MBA from the Edinburgh School of Business, Experienced Zn geologist Ex-CEO Rathdowney Resources Dr. Larry Seeley Board Member Ex-VP Falconbridge Mining, Ex-President Lakefield Research Joachim Rainer Board Member 20 years in entrepreneurial finance in Austria Jonathan Challis Board Member Mining engineer with many Directorships and senior roles with juniors

7 A Growing Pure Play Zinc Company v New discovery of zinc sulphide in black shales beneath high-grade zinc oxides in Nevada v Two drill rigs currently drilling at Akkaya Zinc Exploration Project in Turkey. Targets along strike from Pasinex s Pinargozu high-grade zinc oxide mine v Pasinex owns 50% of the Pinargozu Mine which is an exceptionally high grade zinc mine near Adana, Turkey. v Approximately 43,709 wet tonnes of zinc oxide produced in 2018; 2,048 wet tonnes of zinc sulphide. v District & regional exploration opportunity in a world class zinc district in Turkey.

8 Pinargozu Zinc Mine Operating Results Summary of 2018 operating results and 2019 estimates for the Pinargozu mine are as follows: Guidance Horzum AS Reporting as 100% Zinc oxide production (grade) 43,709 (31%) 9,000 10,000 (29 31%) Zinc sulphide production (grade) 2,048 (45%) 5,000 7,000 (45 47%) Total Production 45,757 14,000 17,000 Cost Per Tonne Mined (CAD)* $200 - $220 $450 - $500 *Non-GAAP measures.

9 Spur Zinc Project, Nevada [Exploration] Exciting new zinc sulphide discovery beneath an old high-grade zinc prospect v Small drill programme confirms highgrade zinc oxides and leads to new discovery of deeper zinc sulphides v Possible high-grade Eureka-style CRD system and potential for a major shalehosted-massive-sulphide (SHMS) deposit beneath v Verified high grade zinc oxides: v % zinc v % zinc and 5.6 ounces of silver White Pine County, Nevada, USA v Earn in option agreement whereby Pasinex can earn to up to 80% interest in the project based on payments and exploration commitment

10 Why are Shale-Hosted Zinc Deposits Important? v Black Shale is a highly unusual host for CRD mineralization. SHMS deposits are highly significant for exploration v Shale-hosted massive sulphides zinc deposits (SEDEX or SMHS) are not common but are large, hosting over 18% of the world s zinc v Four of the five largest zinc mines globally are shale hosted. Examples: Red Dog, Sullivan, Selwyn, McArthur River, Hilton

11 Summary Highlights of Drill Assay Results Drill Hole # Core Length Interval Metres Zn Grade % From (metres) Mineralization SRDD Including Oxide in Limestone Oxide in Limestone SRDD Oxide in Limestone Nevada, SRDD White Pine 4.3 County Oxides in Fault Zone SRDD Sulphide in Black-Shale SRDD Sulphide in Black-Shale

12 A Closer Look at Black Shale & Drill Hole SRDD_2018_04 Fossiliferous Limestone Fault Zone Limestone-micrite-clayey siltstone, laminations, no fossils 4.3% Zinc 8.1% Zinc 5.7% Zinc Fault Zone Fault Zone Black Shale-Siltstone-mudstone Gray dolobreccia Carbon Ridge-clastic member 0 20 Metres

13 Pinargozu Zinc Mine & Akkaya Zinc Project v Red area indicates prospect for zinc district in southern Turkey where Pasinex operates Tufanbeyli Zinc District Yahyali Zinc District v Infrastructure is strong in Turkey. The key to Pasinex being able to ramp up quickly to production was because of readily available infrastructure Pinargozu Zinc Mine & Akkaya Exploration Project Bolkar Zinc District ADANA Route to Port v Access to major roads, port (Mersin), major airport (Adana), HV electrical MERSIN PORT

14 Zinc in the Taurus Mountains JV Area of Interest Main city of Adana 2.2 million Port of Mersin 2½ hours away HV power available Water available Horzum Pinargozu & Akkaya

15 Akkaya Zinc Project [Exploration] v Commence diamond drill-testing at the Akkaya Zinc Property in September 2018 v Compelling drill targets have been generated over the last few months along the proximal HZT through a combination of detailed geological mapping, soil geochemistry (IL) and outcrop lithogeochemistry v Between 500 metres and one kilometre north of the Company s Pinargozu zinc mine.

16 Surface Lithology Map of Pinargozu & Akkaya v Purple indicates White Marble host-rock v Favourable structural settings coincident with the White Marble host-rock v This process of identifying the White Marble host-rock has generated compelling drill targets Quaternary Shale Siltstone Nodular Limestone Mottled Limestone Grey Limestone Marble Dolomitic Limestone Dolomite Quartzite Siltstone Pinargozu Chaotic Unit Mafic Rocks

17 Pinargozu Zinc Mine [Production & Exploration] v High Profit margins (65% in first three quarters of 2018) v Dividends being received v Selling Direct-Shipping natural concentrate on spot (no long term contracts) v Producing mine with ultra high grade zinc v 32% zinc in the Oxides v 42% zinc in the Sulphides v Pinargozu is a new discovery made in 2013 v Exploration underway to expand the resource v Growing expertise in recognizing other high-grade zinc properties like Pinargozu v Turkish JV-Partner with strong operational experience

18 Pasinex Financial Results Q Year-Over-Year Comparison (Canadian Dollars) Q Q Pasinex Resources Limited Equity Gain $521,675 $2,698,696 Net Income (loss) $(194,998) $1,838,461 Dividend Received from Horzum AS - - Zinc Price US $1.15 US $1.34

19 Horzum AS Financial Results Q Year-Over-Year Comparison (Canadian Dollars) Q Q Horzum AS Reporting as 100% Revenues $4,852,494 $9,327,185 Gross Margin 54% 70% Net Income (before taxes) $1,333,214 $6,746,740 Net Income (after taxes) $1,043,350 $5,397,392 Turkish Lira / CAD* Turkish Lira / USD** 4.33 CAD/TRY 5.66 USD/TRY 2.80 CAD/TRY 3.51 USD/TRY * November 30, 2018 CAD/TRY closed at 3.94 ** November 30, 2018 USD/TRY closed at 5.23

20 Horzum AS Financial Results Year to September 2018 and 2017 Year-Over-Year Comparison (Canadian Dollars) Horzum AS Reporting as 100% Revenues $20,955,157 $19,394,413 Gross Margin 65% 60% Net Income (before taxes) $13,636,162 $11,995,850 Net Income (after taxes) $10,623,093 $9,596,680 Turkish Lira / CAD* Turkish Lira / USD** 3.58 CAD/TRY 4.62 USD/TRY 2.74 CAD/TRY 3.59 USD/TRY * November 30, 2018 CAD/TRY closed at 3.94 ** November 30, 2018 USD/TRY closed at 5.23

21 Pinargozu Development v Four adits from hillside now operating v 2018 production of 45,717 tonnes of DSO concentrate v 2019 production guidance of 14,000 17,000 tonnes of DSO concentrate predominately sulphide ore v A mine development program commenced in October 2018 and will take approximately 9 months until June 2019 to reach the deeper sulphide zone v Over 6.0 kilometres of underground development v 300 miners & engineers are working at Pinargozu v Mine safety standards priority focus

22 Pinargozu Production from Multiple Faces v New Adit Project at 550 Level v Plan view of mineralization predominantly zinc carbonates (oxides) and zinc sulphides shown in red area; underground workings shown in other colours 811 Level v Cut and fill mining method v Current production rate 170 tonnes per day of direct shipping product v Production is 85% oxide / 15% sulphide production of DSO grade material 663 Level 550 New Adit Project

23 Pinargozu Production Profile 60,000 57,625 50,000 45,757 40,000 30,000 31,148 20,000 10,000 6,731 10,224 14,000 17, Projection

24 Exploration Conceptual Model v Carbonate replacement type Zn - geological model v Current Pinargozu operation is high up in the manto could be a deep system; lots of exploration opportunity v Skarn opportunity Early in and high up in the manto system

25 Regional Exploration in Turkey v The Pinargozu carbonate replacement zinc project is similar to CRD deposits in Mexico such as Naica v Pinargozu, Akkaya and region v Near mine areas exploring the strike extension of hydrothermally altered marbles. Second Order HZT Splay MAIN HORZUM TREND Second Order HZT Splay Undrilled Main HZT Marble Alteration v There is potential in the district to find more properties like Pinargozu Cambrian Carbonates Zn-Pb Occurances along to HZT Pinargozu Ore Surface Projection Pinargozu Mine HZT: Horzum Trend

26 Zinc 101 v Uses of zinc: v Galvanizing of Steel (making it rust proof) v Car bodies, street lamp posts, safety barriers, suspension bridges v Health: v Sunscreen and vitamins v Zinc Oxides v Paints, rubber, cosmetics, pharmaceuticals, plastics, inks, soaps, textile v Die-casting v Electrical equipment v China is a major consumer v Strong zinc price over the last year v Stocks of Zn continue to drop v What s going to happen to zinc in the next 5 years? v Battery opportunity

27 Contact Details Canada Main Office Pasinex Resources Limited 82 Richmond St. E. Toronto, ON M5C 1P1 Tel +1 (416) Adana Office, Turkey Zeytinli Mah. Turhan Cemal Beriker Blv. No 607 / A Seyhan, Adana Corporate Communications Tel +1 (416) evan.white@pasinex.com General Information info@pasinex.com

28 PASSION IN EXPLORATION The way to build a zinc company is one mine at a time - Steve Williams