Grassy Mountain Project: September 2014

Grassy Mountain Project: September 2014
1
Disclaimer
Forward Looking Statements
This presentation contains forward-looking statements and factual information that are current as of the date
the presentation was originally delivered. Calico Resources Corp. (the “Company”), formerly Cobre Exploration
Corp. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Forward-looking statements include, but not limited to,
statements with respect to the timing and property acquisitions, amount of estimated future exploration,
success of exploration activities, expenditures, permitting, and requirements for additional capital and access
to data.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by the forward-looking statements. Such
factors include but not limited to, risks related to actual results of future exploration activities, change in
project parameters as plans continue to be refined; the ability to enter joint ventures or acquire or dispose of
properties; future prices of mineral resources; accidents, labor disputes and other risks of the mining industry;
ability to obtain financing; and delays in obtaining governmental approvals of financing.
The information provided here is not an offer to sell securities or the solicitation of an offer to buy securities,
nor will there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Qualified Person
Michael F. McGinnis, CPG, Project Manager-Exploration for Calico Resources USA Corp., is the Qualified Person
as defined in NI43-101, and is responsible for verifying that the information presented in this document is an
accurate representation of the October 2012 NI 43-101 resource estimate for the Grassy Mountain Project.
www.CalicoResources.com
TSX-V: CKB
2
Investment Highlights
Grassy Mountain Gold Project
•
Global Resource:
– 100% Calico ownership (subject to royalties)
– 1.6 M oz Au & 4.8 M oz Ag – Measured + Indicated
• Average grade of 1.13 gpt Au, 3.41 gpt Ag
•
•
•
•
•
•
– Including 740,000 oz Au at average grade of 9.45 gpt Au amenable to underground
mining techniques
High grade underground resource offers rapid path to production
Preliminary Economic Assessment underway
Permitting underway (could be completed in 18 to 24 months with adequate funding)
Grassy Mountain Gold Project located in a favorable and stable jurisdiction
– Excellent local infrastructure - good access on existing roads
– Available work force
State and local regulatory officials have expressed strong support for Calico’s proposed
underground mine
Experienced management team
www.CalicoResources.com
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3
Management
Paul Parisotto – President, CEO
Mr. Parisotto has been the Chairman and Director of Norant Resources Ltd. since 2008. Mr Parisotto has been responsible for all facets of the
administration of this public nickel-copper-platinum-palladium company. As President, CEO and Director of Arizona Star Resources Corp.,
listed on the TSX Venture Exchange and the American Stock Exchange, he led the sale of the company to Barrick Gold Corporation in
December 2007 for $773 million in an all cash take-over bid. Arizona Star owned a 51% interest in one of the world’s largest undeveloped
gold/copper deposits. Earlier in his career, Paul built and headed up the mining corporate finance business for a Canadian investment dealer
after serving as the Manager, Original Listing for the Toronto Stock Exchange.
Vance V. Thornsberry, P. Geo – Vice President of Exploration
Registered Professional Geologist with over 35 years of US and International experience in the mining and exploration industry. Mr.
Thornsberry has held executive, managerial and technical roles for several companies. He has a strong technical background in both precious
and base metals and his expertise ranges from exploration through production. He served as the VP Exploration for Northlands Resources
from 2004 to 2008 where he was instrumental in the identification, acquisition and initial development of the Pajala Shear Zone IOCG
properties in Sweden and Finland. Licensed Professional Geologist in Washington and Wyoming.
Alec Peck- Chief Financial Officer
Mr. Peck completed his chartered accountant designation with Deloitte, Touche, Chartered Accountants – Vancouver. He then practiced in
Alberta before moving to Toronto. From 1986 until 1993, he was a Partner in Toronto and then Vancouver with member offices of the
international public accounting firm Horwath International. From 1993 until March 2004 he was a Vice President in the corporate finance
group of publicly listed full service investment dealers, first with CM Oliver and then Canaccord Capital Corporation, which acquired C M
Oliver.
Michael McGinnis, CPG, PG – Project Manager
Mr. McGinnis has 25+ years of experience that covers all aspects of exploration in senior positions with such companies as Placer Dome Inc.,
New Butte Mining, Union Mines Inc., and Kobex Colorado Corp. He has spent more than twelve years as a senior consultant for clients such as
Agnico-Eagle, Hecla, and Hunter Dickinson Inc. Mr. McGinnis is experienced in various styles of gold mineralization, including epithermal and
Carlin-type deposits, as well as Cu-Au-Mo porphyry systems, skarns, and volcanogenic massive sulfides. He was an integral part of the
discovery teams at Donlin Creek, Alaska; Campo Morado, Mexico and Kilgore, Idaho. Mr. McGinnis is a Certified Professional Geologist with
AIPG, a licensed professional geologist in the State of Alaska and a QP in Canada.
www.CalicoResources.com
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4
Board of Directors
Rudi P. Fronk – Chairman/Director: Mr. Fronk has over 30 years experience in the gold business, primarily as a senior officer and director of publicly
traded companies. From 1999 until June 2012, Mr. Fronk served as President and CEO of Seabridge Gold. Prior to Seabridge, he held senior management
positions with Greenstone Resources, Columbia Resources, Behre Dolbear & Company, Riverside Associates, Phibro-Salomon, Amax, and DRX. Mr. Fronk is a
graduate of Columbia University from which he holds a Bachelor of Science in Mining Engineering and a Master of Science in Mineral Economics.
Jay S. Layman – Director: Mr. Jay Layman is President and Chief Operating Officer of Seabridge Gold. Mr Layman was recently Vice President Solutions
and Innovation for Newmont Mining Company where he was responsible for managing Global Technical Services and launching a Global Innovation
Department. During his employment at Newmont, he was responsible for managing numerous Feasibility Studies and his career includes experience in
Business Development, Operations, Finance and B2B Supply Chain connectivity. During his career, Jay has lived in Kazakhstan, Uzbekistan, Tajikistan,
Indonesia and Australia and has additional work experience in Russia, Singapore, China and Peru. He has worked in both underground and open pit
operations containing gold, copper, silver, lead and zinc metals. His education includes Bachelors Degrees in Mechanical Engineering and Finance from
Washinton State University and an MBA from Eastern Washington University.
Kevin Milledge – Director: Mr. Milledge is President of Pamicon Developments Ltd., a geological and engineering contractor involved in the mineral
exploration and development industry for the past thirty years. He brings an extensive network of relationships across the industry in the logistical and
financial arena. Mr. Milledge has also been involved in the management and direction of numerous exploration stage programs and has extensive
knowledge of the exploration industry around the world.
Arden (Buck) Morrow – Director: Mr. Morrow is a graduate Mining Engineer from the Mackay School of Mines at the University of Nevada Reno. He has
over 30 years experience in mineral exploration, mine development and mine operations in North America, South America, Asia and Europe. From 1980 to
2001 he was the President of Western States Minerals Corporation, which, under his direction discovered and brought into production some of Nevada’s
most significant gold deposits including Barrick’s Goldstrike mine. From 2001, until he joined Northland Resources, Mr. Morrow worked as a consultant in
gold exploration, mine development, and mine financing. In 2004 he joined Northland Resources and served as President and CEO until November 2009.
Alec Peck, CA – CFO/Director: Mr. Peck has been appointed as the Company’s Chief Financial Officer. Mr. Peck completed his chartered
accountant designation with Deloitte, Touche Chartered Accountants – Vancouver. He then practiced in Alberta before moving to Toronto.
From 1986 until 1993, he was a Partner in Toronto and then Vancouver with member offices of the international public accounting firm
Horwath International. From 1993 until March 2004 he was a Vice President in the corporate finance group of publicly listed full service
investment dealers, first with C M Oliver and then Canaccord Capital Corporation, which acquired C M Oliver.
Allan Williams – Director: Mr. Williams has over 26 years experience as a businessman and entrepreneur in public markets. Over the years,
Mr. Williams has worked with numerous companies in both the energy and junior mining sectors. He has held management and executive
positions in both sectors and has extensive experience in project planning and development. He has raised in excess of 150 million dollars for
companies in North America.
www.CalicoResources.com
TSX-V: CKB
5
Location
Ontario, OR
Vale, OR
Nyssa, OR
•
60 miles from downtown Boise in
southeastern Oregon
•
22 miles south of Vale, OR with
easy road access on BLM and
private land
www.CalicoResources.com
Grassy Mountain
TSX-V: CKB
6
Property Position
ROYALTIES
Sherry & Yates:
Sliding scale
production royalty:
4% to 6% of gross
proceeds – can be
bought down to 1%
for $2.1 M
Seabridge:
10% NPI – can be
bought out for $10 M
with no further
obligations
Bishop
Sliding scale
production royalty:
4% to 7% NSR for gold
produced only from
Bishop ground
Grassy Mtn
Gold Deposit
www.CalicoResources.com
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7
History
•
1984 - Skip Yates & Dick Sherry
o
o
o
•
Optioned to Atlas Precious Metals
in 1986
o
Drilled 1986 - 1991
o
Discovery hole 26-9: 145 feet @ 0.075 opt
Au
388 holes, 221,500 feet
Resource announced in 1990 :
996,000 ounces Au
o
o
•
Identified area based upon regional
N.U.R.E. data
Targeting epithermal hot spring gold
occurrences
Surface sample of 225 ppb Au in sinter
outcrop to the west of the deposit
•
Optioned to Newmont in Oct. 1992
o
o
o
•
Tombstone Exploration 1998
o
•
•
•
Gold rush ensued in SE
Oregon/SW Idaho
•
www.CalicoResources.com
10 holes, 8 RC, 2 Core totaling 8,067 feet
Acquired by Seabridge in 2000
Acquired by Calico Resources in 2011
Total to date:
o
•
11 holes, 11,472 feet
Rock & soil sampling, regional recon,
detailed mapping, geophysics,
permitting, pre-feasibility
Newmont relinquishes option in Aug., 1996
428 drill holes totaling 254,150 feet
2012 Resource Estimate
o 1.6 M oz Au Measured + Indicated
grading 1.13 g/t Au
> $30 M invested historically
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NI 43-101 Resource Estimate
Measured
Cutoff Grade
Indicated
g/t
Tonnes
(000s)
Au
g/t
Au Ounces
(000s)
Ag
g/t
Ag Ounces Tonnes
(000s)
(000s)
0.4
33,821
1.30
1,416.7
3.84
4,172.6
2.7
2,341
9.48
713.4
13.01
980
Au
Ag
Ounces Ag g/t Ounces
(000s)
(000s)
Au
g/t
10,226 0.559
95.0
8.75
183.7
1.97
648.0
26.7
3.84
11.7
Measured + Indicated
Cutoff Grade
g/t
Tonnes
(000s)
Au g/t
Au Ounces
(000s)
Ag g/t
Ag Ounces
(000s)
0.4
44,046.3
1.13
1,600.4
3.41
4,820.6
2.7
2,436.4
9.45
740.2
12.65
991.2
g/t = grams per metric tonne
Source: Oct. 16, 2012, NI 43-101 Technical Report by Gustavson Associates, LLC, Lakewood, Colorado USA
www.CalicoResources.com
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9
Geologic Model
Grassy Mountain
•
Classic Hot-Springs-Type Gold Deposit
–
–
•
Multi-stage quartz adularia vein swarms
Grassy Mountain was active 13 million years ago
during volcanism related to Yellowstone hotspot
High-grade core within Grassy Mountain resource:
• 2.43 M tonnes @ 9.45 gpt Au
• 1000’ long x 600’ wide x 100’ to 300’ thick
•
Surrounded by larger system
• 44 M tonnes @ 1.13 g/t Au
•
Yellowstone
Multiple exploration targets on claim group and in district
Similar deposit type to:
• Cannon Mine (Washington): Produced 1.25M oz. Au, 2M oz. Ag
• McLaughlin (Calif.): California’s largest Au discovery of the 20th Century
• Sleeper (Nevada): Produced 1.6M oz. Au, 2.3M oz. Ag
www.CalicoResources.com
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10
Geologic Section
3600 ft
3400 ft
3200 ft
3000 ft
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11
Oregon’s Permitting Advantages
Comparison to other Western States
State
Cyanide
allowed
Pit backfill
not required
Pit lakes
allowed
Bonding
Required
Defined
Permitting
Timeline
Oregon
Arizona
None
Idaho
Required
None
Nevada
To above
water table
Not allowed
None
Utah
None
California
Required
None
Montana
Not allowed
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12
Oregon State Permitting Process
Division 37
• State administered consolidated application process
• Limited federal involvement
• Straight forward, efficient oversight by Governor’s Office
• Defined timelines & benchmarks established by State Statute
www.CalicoResources.com
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13
Calico Grassy Mountain Project
•
Significant land holding – over 9300 acres
•
Mining and processing facilities will be on private land
•
Off-the-shelf ore processing technology >90% Au recovery
•
Underground resource, accessible by decline, amenable to conventional u/g mining methods
•
Favorable Environmental Setting
o
o
o
o
o
o
o
High desert environment
Moderate topography
No perennial surface waters
No Impacted wetlands
Outside critical wildlife habitat – NO SAGE GROUSE
Resource above the water table
No restricted land use designations
•
Good logistics / available infrastructure
•
Straight-forward reclamation
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14
Permitting Status – Current and Planned Tasks
•
All environmental baseline work plans approved in March 2013
(first proposal since 1990 to secure approvals in State of Oregon)
•
Key environmental baseline studies and field work completed
–
–
–
Numerous tasks completed and submitted for approval:
• Uplands & Wetlands & Vegetation
• Wildlife Resources
• Fish & Aquatics
• Noise
Ongoing tasks
• Surface & ground water (final water sampling in Sept. 2014)
• Climate & Air Quality
• Soils & Geology
• Geochemistry
• Land use
• Transportation
Remaining tasks poised for ramp up in 2015
•
Preliminary Economic Assessment underway (available end of 2014)
•
Detailed Metallurgical Test-work (part of PEA)
•
Submit BLM R-O-W Application (2015)
•
Initiate work on Plan of Ops / State of Oregon Application (2015)
–
all federal, state & local permits
•
Initiate construction of decline access for bulk testing and feasibility study
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15
• Almaden
• 948,000 ozs. Au
• Kerby
• 7 M tons @ 0.027 opt Au
• Hope Butte
• 5 M tons @ 0.028 opt Au
• Quartz Mountain
• 352,666 ozs. Au
• Red Butte
• Un-drilled
• Surface samples up
to 18.16 ppm Au
• Milestone (unpublished reports)
• Reported grade of 0.02 opt Au, 3.0
opt Ag
• Delamar – Florida Mountain
(historic production)
• 830,000 ozs Au
• 60 M ozs Ag
• Silver City – War Eagle
(historic production)
• >25 M ozs Ag
• >500 K ozs Au
Almaden
IDAHO
Numerous High Quality
Regional Gold Occurrences
Kerby
OREGON
Significant Exploration
Upside
Tub
Hope Butte
Ontario, OR
Vale, OR
Grassy Mtn
Boise, ID
Quartz Mtn
Red Butte
www.CalicoResources.com
Jordan
Valley, OR
Milestone
War Eagle
Delamar
Florida Mtn
Oregon
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Idaho
16
Portal Area – Operations and Reclamation Simulation
www.CalicoResources.com
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17
Capitalization
September, 2014
Commons Shares Issued
65,392,514
Warrants
9,503,683
1,660,500 exercisable @ $0.40
147,350 exercisable @ $0.40
1,475,000 exercisable @ $0.28
1,250,000 exercisable @ $0.28
1,220,833 exercisable @ $0.15
400,000 exercisable @ $0.15
833,333 exercisable @ $0.15
1,266,667 exercisable @ $0.15
1,250,000 exercisable @ $0.15
expire Oct. 12, 2014
expire Oct. 12, 2014
expire Apr. 9, 2015
expire Apr. 12, 2015
expire Apr. 29, 2015
expire July 3, 2015
expire July 14, 2015
expire July 17, 2015
expire July 25, 2015
Stock Options
3,490,000
100,000 exercisable @ $0.60
750,000 exercisable @ $0.35
50,000 exercisable @ $0.40
220,000 exercisable @ $0.60
25,000 exercisable @ $0.60
270,000 exercisable @ $0.60
1,350,000 exercisable @ $0.16
725,000 exercisable @ $0.17
expire Oct. 12, 2015
expire Dec. 14, 2015
expire May 12, 2016
expire June 10, 2016
expire Aug. 22, 2016
expire Dec. 22, 2016
expire Aug. 18, 2019
expire Aug. 25, 2019
Fully Diluted Capitalization
Stock Price
78,386,197
52 week high: $ 0.26
52 week low: $0.07
www.CalicoResources.com
TSX-V: CKB
18
Contact:
Calico Resources Corp.
Suite 615 - 800 West Pender Street
Vancouver, BC Canada V6C 2V6
Tel: 1 855.589.0400
TSXV: CKB
www.calicoresources.com
www.CalicoResources.com
TSX-V: CKB
19

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