SubPPT - Eloro Resources Ltd.

INVESTOR PRESENTATION
October 2016
TSX.V: ELO
FSE: P2Q
1
Forward Looking Statements
Certain information contained herein regarding Eloro Resources Ltd., including management’s assessment of future plans
and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks,
including but not limited to risks associated with mining exploration, operating costs, production costs, volatility of share
prices, currency fluctuations, imprecision of resource and reserve estimates, environmental risks and ability to access
sufficient capital from internal and external sources.
As a consequence, actual results may differ materially from those anticipated in any forward looking statements. Plans,
intentions or expectations disclosed in any forward-looking statements or information should not be read as guarantees of
future results or events, and will not necessarily be accurate indications of whether or when or by which such results or
events will be achieved.
Except as required by law, Eloro Resources Ltd., expressly disclaims any intention and undertakes no obligation to update
any forward looking statements or information as conditions change.
Any historical mineral resources mentioned are strictly historical in nature and are non-compliant to National Instrument
43-101 mineral resources and mineral reserves standards, and should therefore not be relied upon. A qualified person has
not done sufficient work to upgrade or classify the historical mineral resources as current National Instrument NI-43-101
compliant.
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The last significant
unexplored property in the belt
• Potential for gold discovery
along world’s best mining belt
in northern Peru
• Situated within sight of
world-class, low cost producers
like Tahoe and Barrick, and has
similar geology
• Flagship asset, La Victoria, is
100% owned and has never
been drilled after being held and
operated by local artisanal family
for decades
• Team has ability to develop
high-merit projects and are
proven discoverers with the
required skill sets to take
projects into production
3
Board of Directors
Thomas Larsen
Chairman, President and CEO
Thomas Larsen has over 30 years of experience in the investment industry. He was the
founder and CEO of Champion Minerals Ltd. and was recently the CEO of Champion Iron
Limited (formerly Champion Minerals Ltd). He specializes in corporate finance and
management of junior mining companies, and has raised in excess of C$150 million to date.
Francis Sauve
Francis Sauve is an entrepreneur based in south-western Ontario and has over 20 years of
in-depth experience with publicly traded resource corporations as a director and investor. He
joined Eloro Resources as an independent director in 2002 and is also a director of Cartier
Iron, having rejoined that company's board in June 2016 after serving from 1999 to 2012.
Alexander Horvath, P. Eng.
Alexander Horvath is the President of A.S. Horvath Engineering Inc., an Ottawa-based
exploration/mining geological services firm and brings over 28 years of experience in mineral
exploration and mining. Mr. Horvath is Champion Iron Limited’s Chief Operating Officer,
having joined Champion’s subsidiary company as a director in 2007 and as Executive Vice
President, Exploration in 2008.
Dusan Berka, P. Eng.
Dusan Berka has over 40 years of international experience in engineering, marketing & sales,
and business administration. During the past 34 years, Mr. Berka has served as a Director
and Officer of various public companies traded on the TSX, TSX Venture Exchange and the
NASDAQ system in the USA.
Richard Roy, P. Geo.
Richard Roy is the Exploration Manager for SEMAFO Inc., providing on-site supervision of all
exploration activities, currently centered in Burkina Faso. Previously he was a consultant to
NordQuest over a period of 10 years. He has extensive experience throughout North America
and West Africa in the exploration for many commodities, including gold, silver, copper, lead,
zinc, nickel, and diamonds.
4
Management
Thomas Larsen
Chairman, President and CEO
Thomas Larsen has over 30 years of experience in the investment industry, and most
recently, was the President and Chief Executive Officer of Champion Iron Limited. He
specializes in corporate finance and management of junior mining companies, and has
raised in excess of C$150 million to date.
Miles Nagamatsu, CA,
Chief Financial Officer
Miles Nagamatsu has over 30 years of experience in accounting, management, lending,
restructurings and turnarounds. Since 1993, Mr. Nagamatsu has acted as a Chief Financial
Officer of public and private companies primarily in the mineral exploration and investment
management sectors. He holds a Bachelor of Commerce degree from McMaster University
and is a Chartered Accountant.
Jim Steel, MBA, P. Geo.,
Senior Vice President, Mining
Jim Steel has 30 years of experience in mining exploration, production, and mining finance
and investment. He is the Managing Director of Steel & Associates, an independent
analytics and strategic market positioning firm. Previously he was VP and Portfolio Manager
for TD Asset Management and co-managed their Greenline Precious Metals and Resource
Funds. He has also been a mining analyst for various firms including Newcrest Capital Ltd
in Toronto, and Ord Minnett Ltd and S.G. Warburg and Co. in London, UK.
Jorge Estepa
V.P., Secretary-Treasurer
Jorge Estepa has over 23 years of experience with publicly listed companies in the areas of
corporate management, development and investor relations and has served as a senior
officer and/or director of several publicly traded resource companies. Mr. Estepa joined
Eloro Resources as Vice President and Corporate Secretary in 1997.
5
Technical Advisors
Technical Team
Dr. William N. Pearson, P. Geo.
Chief Technical Advisor
Dr. William N. Pearson is a well-recognized leader in his field of geoscience. He has over 40 years of
direct experience in global mineral exploration and production. Has played an integral role in creating
value in mining projects that led to successful acquisitions of Desert Sun Mining Corp. by Yamana
Gold in 2006 and Central Sun Mining by B2 Gold in 2009. Dr. Pearson was the creator and founding
President of the Association of Professional Geoscientists of Ontario.
Alexander Horvath, P. Eng.
Alexander Horvath is the President of A.S. Horvath Engineering Inc., an Ottawa-based
exploration/mining geological services firm and brings over 28 years of experience in mineral
exploration and mining. Mr. Horvath is Champion Iron Limited’s Chief Operating Officer, having joined
Champion’s subsidiary company as a director in 2007 and as Executive Vice President, Exploration in
2008.
Luc Pigeon, B.Sc, M.Sc, P.Geo
Geoscientist and
Operations Officer
Luc Pigeon is founder of Gateway Solutions S.A.C , and has been a resident of Peru since 2006. Mr.
Pigeon is a Professional Geologist (P. Geo) registered in the Province of Quebec and a Qualified
Person as defined by National Instrument (“NI”) 43-101, and is the author of the recently completed
La Victoria NI 43-101 Technical Report and has just been appointed General Manager of Eloro’s
Peruvian subsidiary.
Dr. Chris Hale, P.Geo
Dr. Chris Hale serves as consultant to Eloro from Intelligent Exploration of Guelph, Ontario. He is an
exploration geophysicist with more than 35 years experience from around the world, including
managing various exploration projects and co-forming Intelligent Exploration, an independent
consulting partnership specializing in the application of geophysical exploration techniques to
individual deposits and target types. He received his B. Sc. in Earth and Planetary Sciences from
Erindale College, University of Toronto in 1974, an M. A. from the University of California, Santa
Barbara and a Ph. D. from the University of Toronto.
Dr. Osvaldo
Arce-Burgoa, P.Geo.
Dr. Osvaldo Arce Burgoa is a professional geological and mineral processing engineer with 26 years
experience in Bolivia. He has a Doctor of Engineering from the Tohoku University at Sendai, Japan
and a Bachelor of Science degree in Geological Engineering from the San Andrés University, Bolivia.
He is a former National Director of the Bolivian Geological Survey, Main Technical Advisor of the
National Mining Corporation (COMIBOL), Exploration Manager and Chief Geologist in various mining
and exploration companies.
Consultants
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Capital Structure
Exchange/Ticker
TSX Venture Exchange/ELO
Frankfurt Stock Exchange/P2Q (WKN A1JKAT)
Shares Issued and Outstanding
28.7 million (October 17, 2016)
Warrants
7.5 million
Options
1.5 million
Fully Diluted
37.7 million
Share Price
$0.40 (October 14, 2016)
Market Capitalization
$11.5 million
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La Victoria: In Elephant Country
• Only junior with the last
significant unexplored
property in the Belt
• Geology is similar to
producing mines in the area
• Excellent potential for
epithermal precious metal
and porphyry-style copper
mineralization
Rosario de Belén
Exploration will prove if it is, in fact, the next
world-class precious metals deposit in that region.
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Gold Producers: North Central Mineral Belt
Mine
Company
Life of Mine Gold
Production (MM oz)
Gold Reserves +
Resources (MM oz)
Type of
Deposit
Distance From
La Victoria
Yanacocha
Newmont Mining
/Buenaventura
34.8
5.1
Epithermal HS
Disseminated
160 km NNW
Pierina
Barrick Gold Corporation
8.71
N/A
Epithermal HS
Disseminated
135 km SSE
Lagunas Norte
Barrick Gold Corporation
7.48
5.82
Epithermal HS
Disseminated
50 km NW
Retamas
MARSA
3.53
N/A
Mesothermal Intrusive
Host
60 km E
Parcoy
Consorcio Minero Horizonte
S.A.
2.67
N/A
Mesothermal Intrusive
Host
60 km E
Santa Rosa
COMARSA
2.64
N/A
Epithermal HS
Breccias
20 km NNW
Poderosa
Cia. Minera Poderosa S.A.
2.03
N/A
Mesothermal Intrusive
Host
75 km NNE
La Arena
Tahoe Resources Inc
1.21
6.2
Epithermal HS
Disseminated
50 km NW
La Virgen
Cia. Minera San Simon S.A.
0.51
N/A
Epithermal HS
Stockwork
35 km NNW
Shahuindo
Tahoe Resources Inc.
0.45
20
Epithermal HS
Disseminated
80 km NNW
Cullebrias
Real Aventura
0.11
N/A
Mesothermal Intrusive
Host
65 km NE
Peruvian-owned private company production estimated
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History: Formerly Family Owned Property
Presents Uncommon Opportunity
La Victoria was
previously held for
over 30 years by a
local family.
With changing tax laws, the property was
deemed too expensive to maintain, so they
agreed to sell to “friends of the family” − that
being Minera Tartisan Peru SAC, that paid
$US 202K over a 3-year period to earn a
royalty-free 100% interest.
10
Acquisition Terms for
100% Interest in La Victoria
Acquisition Closed in Escrow – October 17th, 2016
Acquisition Terms:
Issuance of 6 million common shares
Issuance of 3 million warrants
•
•
$0.40 exercise price, three year term, acceleration clause
18-month hold period; Eloro has pre-emptive rights on future
share and warrant dispositions and voting rights
– Staged cash payments totaling $350,000
• $250,000 paid on First Closing
• $100,000 nine months after First Closing
– Granting of 2% NSR (buy-back of 1% for $3 million)
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La Victoria 100% Owned Concessions
• La Victoria Concessions
held by Eloro’s Peruvian
subsidiary Minera Eloro
Peru SAC.
• Neighbouring
concessions acquired
and/or expanded by BHP
Billiton, IAMGOLD among
others.
• Concession between La
Victoria East and West
acquired, in concession
registration process.
12
Geological Similarities to Area Mines
Lagunas Norte
La Victoria
Host rock Chimu Fm sediments
Chimu Fm Sediments (San Markito)
Diatreme breccia
Breccia (San Markito, Possibly Diatreme)
High iron oxides with ore; disseminated and fracture filling High Grades With Iron Oxides In Fracture Filling (Rufina)
Chicama Fm base of mine sequence
Chicama Fm Lowest Stratigraphic Level
La Victoria Property (Rufina)
La Arena
La Victoria
High Sulphidation Epithermal Gold
Low Sulphidation Epithermal Gold (Rufina)
Copper-gold Porphyry At Depth
Copper-gold Rock With Porphyritic Textures
At Ccori Orcco Sector
Host Rock Chimu Fm
Host Rock Chimu Fm (San Markito)
Santa Rosa
La Victoria
High Sulphidation Epithermal Gold
Low Sulphidation Epithermal Gold
Host Rock Chimu Fm
Host Rock Chimu Fm (San Markito)
Gold In Arsenopyrite And Pyrite
High Grade Gold (63.8 G/T) In Arsenopyrite
With Pyrite (Rufina East)
13
Past Acquisitions
La Arena/Shahuindo
Gold Deposits
50 km North of La Victoria
Arequipa
Resources
Pierina Deposit
100km South of La Victoria
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In summary:
The La Victoria Gold/Silver Project exhibits
the same rock types, alteration style, and
mineralization as several of the world-class
gold mines in the Northern Peru Mineralized Belt,
and with early indications of solid gold and silver grades.
15
Never Drilled,
Until Now
La Victoria has never been drilled,
yet three major mineralized
targets (with very prospective
results from Eloro surface
sampling and artisanal mining)
have been known since the ‘70s.
16
2016 Drilling Program
The 2016 drill program will
commence shortly and initial results
are expected in late 2016.
Four current target areas already
identified include:
•
Rufina West
(Au oxide to 46.4 g/t)
•
Rufina East
(Au sulphide to 63.8 g/t)
•
San Markito-Victoria
(Ag oxide to 1,814 g/t)
•
Ccori Orcco
(Au to 2.7 g/t exploration).
17
Exploration Strategy
3-dimensional model of geology
and geophysical response of different rock units
18
Exploration Strategy
The areas of the
magnetic anomalies
tend to be recessively
weathered covered by
Quaternary colluvium
and alluvium suggesting
that the intrusives are
likely altered.
Magnetic Map
Depicting Dioritic Intrusive Targets
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Catalysts of the Next 12 Months
2016
2017
2018
September
2016
October 2016
to Q3 2017
Q2 to Q4
2017
Q2 to Q4
2018
Phase I drilling
preparation and
logistics
Commencement
of the maiden
drilling programs
at San Markito
and Rufina West
NI 43-101
Resource
Definition and
initiate PEA
Further drilling
leading to (bulk
tonnage heap
leach)
Prefeasibility
Study
Continuous Drilling
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Why Invest: A Golden Opportunity
A Piece of the World’s Best
Mining Belt
100% owned flagship asset
is in a stable, mining-friendly
jurisdiction, within sight of
world-class low-cost producing
gold mines looking to maintain
their pipelines for
future growth.
The only Junior with the
Last Significant Unexplored
Property in the Belt
Eloro is the only publiclytraded junior Canadian
company among majors
(Barrick, Tahoe) with a large
land position in a jurisdiction of
some of the lowest cost gold
mines globally.
Expert Team
Experienced management
and technical team working
diligently to de-risk and
advance the La Victoria
Gold/Silver Project to
production.
Tight Capital Structure
Small float with undervalued
market capitalization.
Exceptional Leverage
La Victoria exploration is highly
leveraged to rising gold and
silver prices.
Strong
Financial Backing
Ability to raise capital needed
to move projects forward, plus
strong shareholder support
and financial backing.
21
Quebec Properties Offer
Additional Exploration Potential
Property name
Target types
Lemoyne North
57 claims, 29 km2
Target: Doyon/Bousquet
type deposits of the Abitibi
Greenstone Belt.
Delta/Eastmain Project
112 claims, 56 km2
Eleonore Deposit
Target: Copper-Gold Reservoir
Deposit type of Eastmain
Resources Ltd.
Greenstone gold and base-metal exploration properties.
Lemoyne North is 100 km northeast of Goldcorp’s Eleonore mine
and Delta/Eastmain is 50 km south.
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Contact Information
20 Adelaide Street East, Suite 200
Toronto, Ontario, Canada M5C 2T6
Toll Free: +1.800.360.8006
Tel.: +1.416.868.9168
Email: [email protected]
www.elororesources.com
TSX.V: ELO
FSE: P2Q
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