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CORPORATE PRESENTATION TSXV: FSX OCTOBER 2020
CORPORATEPRESENTATIONTSXV: FSXOCTOBER 2020
Certain statements contained in this presentation constitute forward-looking statements. These statements relate to future events or the Corporation's future performance, business prospects or opportunities. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date specified. The Corporation does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements involve risks and uncertainties relating to, among other things, results of exploration activities, the Corporation's limited experience with development-stage mining operations, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, changes in commodity and, particularly, gold prices, actual performance of facilities, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements.
Neil (Rex) Mottom, MAusIMM (CP), Qualified Persons, COO and a director of the Corporation, has reviewed and approved the technical disclosure in this presentation. Mineralization contained at the Fosterville Gold Mine is not necessary indicative of mineralization contained on the properties of the Company.
FORWARD LOOKING STATEMENTS
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VICTORIA, AUS
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THE WORLD’S BEST ADDRESS FOR HIGH GRADE GOLDThe Fosterville Gold Mine, owned by Kirkland Lake Gold, is the world’s highest grade and lowest cost gold mine.
The AISC at Fosterville was USD $315 / oz in Q1 2019 and the mine has operated with a 34.3 g/t gold head grade over the past 12 months.
Fosterville South Exploration has three high grade gold projects in the Fosterville area including a large land package with historical high grade production immediately south and adjoining Kirkland Lake Gold’s Fosterville tenements.
The deep seated Selwyn Block underlies the epizonal Au-As-Sb mineralization domain
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ADJOINING KIRKLAND LAKE’S FOSTERVILLE GOLD DISCOVERY
Proximity to the margins or larger structures within the Selwyn Block is considered important for all major deposits within the epizonal domain
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REGIONAL LAND HOLDINGS
Historical high grade gold productionadjoining and immediately south of the world class Fosterville Mine, owned by Kirkland Lake Gold
ABOUT FOSTERVILLE SOUTH EXPLORATION
Large 100% ownedhigh grade gold projects and multiple tenement applications in the heart of the worlds most important high grade mining district
Experienced management and award winning technical team with a track record in this District and with a history of wealth creation in the sector
Tight share structure and compelling valuation
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VECTORS, TRENDS & DEPOSITS
COMPELLING HIGH-GRADE GOLD PROJECTS
Contiguous to Kirkland Lake’s Fosterville tenements
Historical hardrock production
233,215 oz Au @ 20.7 g/t Au
WALHALLA539 km²
Total Historical hardrock production
1.51 Moz Au @ 33.56 g/t Au
(Walhalla)
Including1.48 Moz Au @ 32.2 g/t Au
(Cohen’s Reef)
GOLDEN MOUNTAIN 996 km²
Including drill intervals of
13.0m at 17.5 g/t Au4.6m at 22.7 g/t Au10.6m at 8.6 g/t Au
10.6m at 17.1 g/t Au8.3m at 7.6 g/t Au
LAURISTON607 km²
8HISTORIC NUMBERS NOT COMPLIANT
MULTIPLE HIGH-GRADE GOLD PROJECTS within LARGE LAND HOLDING of MULTIPLE GOLDFIELDS
RECENT HOLES DRILLED BY FOSTERVILLE SOUTH RECORD LENGTHY HIGH-GRADE GOLD INTERCEPTS AT GOLDEN MOUNTAIN
MANAGEMENT TEAM
James Hutton has over 37 years of resource company and capital markets experience and is the President and CEO of privately-owned Hutton Capital Corp. He was the President & CEO of Canada Dominion Resources Group and President & COO of CMP Resources Group that jointly completed in excess of $1.4 Billion in flow through share transactions for the Canadian resource industry.
He has served on multiple public boards and held several C-level executive positions. He holds a Bachelor of Science degree from the University of British Columbia and an MBA from City University.
JAMESHUTTONB.Sc., MBA
CHAIRMAN
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Bryan Slusarchuk is former President of gold producer K92 Mining Inc., a company he co-founded and where he was a member of the Board of Directors and Audit Committee from inception through to cash flow positive mining operations and the declaration of commercial production. K92 has in excess of 650 employees and contractors and is based in Papua New Guinea. The company has recently been named as a 2019 Best 50 on the OTCQX and a 2019 TSX Venture 50, based on outstanding performance for shareholders over the past year.
Mr. Slusarchuk has structured, financed and operated several private and publicly traded mining and exploration companies and has also advised multiple governments and mining industry advocacy groups on formation of mining and investment policy. He is a past TEDX and Carbon War Room speaker, on the topic of capital markets and finance.
BRYAN SLUSARCHUK
CEO & DIRECTOR
MR. NEIL(REX) MOTTONB.App.Sc (Geol) Hons., MAusIMM(CP), MSEG
COO & DIRECTOR
Rex Motton has over 30 years in the mining industry working as a professional geologist. He holds an Honours Degree in Applied Science majoring in Geology from the University of Ballarat, Victoria, Australia.
Rex has significant experience and success in exploration, mining and economic evaluation. Experience with several mining companies included Barrick Gold, Dominion Mining and Plutonic Resources. He was the key geologist for six economic deposits at Higginsville for Samantha Gold (later Resolute) in Western Australia. He obtained early development experience at the Darlot and Mt Fisher gold deposits for Sundowner Minerals NL acquired by Plutonic & in turn by Barrick Gold. In more recent years he has been a key consultant for a number of gold exploration & development projects as well as operating mines.
MANAGEMENT TEAM
Robert McMorran obtained his Chartered Accountant designation in 1981 and has over 35 years experience working in the mining industry. He founded Malaspina Consultants Inc. in July 1997, a private company providing accounting and administrative services to junior public companies.
He has held numerous board and senior management positions with a number of public companies since 1991 including Santacruz Silver Mining Ltd, Terra Ventures Inc, Roxgold Gold Inc, and the Canada Dominion Resources Group.
ROBERT G. McMORRANCPA, CA
DIRECTOR10
Mr. John D. Lewins is a Mineral Engineer with over 35 years’ experience in the mining industry, who has worked in Africa, Australia, Asia, North America and the former Soviet Union. Mr. Lewins has successfully managed the development of a number of open pit and underground gold, precious and base metal mines from feasibility study through to profitable operations.
Mr. Lewins has operated extensively at the corporate level in various roles from Executive General Manager to Director and Chief Executive Officer with a number of mining companies, including MIM Holdings, First Dynasty Mines, Platinum Australia and African Thunder Platinum.
Mr. Lewins is the Chief Executive Officer and a Director of K92 Mining Inc., a rapidly growing and high grade gold producer located in Papua New Guinea.
JOHN LEWINSB.Sc.
DIRECTOR
Ms. Gazis is a mining industry consultant with over 30 years of experience with specific expertise in GIS and tenement management. Among other significant corporate assignments with organizations such as Pasminco, Gold Mines of Australia, Geological Survey of Victoria, Ballarat Goldfields, and Victorian Mines Department, Ms. Gazis has had a long-standing involvement with the Fosterville Mine since its start up in 1989-1990.
LIZA GAZIS
DIRECTOR
MANAGEMENT TEAM
DOUGLAS J. KIRWINMSc (Applied Geology), FSEG, FAUSIMM, FAIG, MSGA
ADVISOR
discovery in 2004. Other mineral discoveries made by his exploration team include the Jelai-Mewet and Seryung epithermal deposits in northeast Kalimantan, the Eunsan, Moisan and Gasado gold mines in South Korea, the Moditaung gold deposits in Myanmar and the Merlin Re-Mo deposit in Australia.
In 2006 Mr. Kirwin was the International Exchange lecturer for the Society of Economic Geologists where he made presentations at Hokkaido and Tokyo Universities and served as the Society Vice President during 2007 to 2010. He has previously been an industry advisor for the Society of Applied Geologists and China Mining and a board member of the Economic Geology Research Unit at James Cook University. Doug holds a Master of Science degree in mineral exploration from James Cook University, Australia, where he is currently the adjunct professor.
Doug Kirwin is an independent geologist with 45 years of international exploration experience. Doug has held senior positions with Anglo American and Amax during the 1970’s and was managing director of a successful international geological consulting firm during the 1980’s and early 1990’s.
In 1995 he accepted a role as Vice President, Exploration for Indochina Goldfields and subsequently became the Executive Vice President for Ivanhoe Mines Limited until 2012, after which Ivanhoe was acquired by Rio Tinto. Doug was also a director of South Gobi Energy, Jinshan Gold and a founding non-executive director of Ivanhoe Australia Ltd.
As a member of the joint discovery team for the Hugo Dummett deposit at Oyu Tolgoi in Mongolia, Doug was a co-recipient of the PDAC inaugural Thayer Lindsley medal awarded for the most significant international mineral
Charles Hethey is a securities lawyer in British Columbia and New York with over 10 years’ experience. Mr. Hethey represents a number of U.S. and Canadian listed entities on the TSX Venture Exchange, Canadian Securities Exchange and U.S. OTC markets. In particular, Mr. Hethey’s clients are active in a broad range of industries including mineral resources, oil and gas, industrial, green energy and technology.
Mr. Hethey has significant experience in U.S. and Canadian corporate finance, mergers and acquisitions and securities compliance matters. Mr. Hethey was a director of New Energy Metals Corp. (TSXV: ENRG), a mineral exploration company with exploration projects in Quebec and Chile, and a director of Skyledger Tech Corp. (CSE: SKYL), a Bitcoin miner.
CHARLES C. HETHEYLLB
DIRECTOR
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LAURISTON GOLD PROJECT
An epizonal gold-antimony-arsenic mineralized projectwhich has the best potential to be the southern extension of the Fosterville Goldfield Belt, outside of Kirkland Lake’s extensive tenements.
Lauriston tenement contains the south extension of the Whitelaw Fault & Gold Beltwhich is a key feature of the Bendigo Goldfield (22Moz) while Catalyst Metals are exploring the 75km northern extension of this structure with significant success.
“Vectoring in on the highly prospective major Redesdale, Whitelaw, and Taradale Faults projected underneath never explored thin young basalt cover.” - Doug Kirwin
DISSEMINATED EX-SULPHIDIC MATERIAL FROM LAURISTON
Granted Area of 287 km² 10th July 2019, 5-year licence
Applied for in early 2017
A further 320 km2 in application
Sparse modern exploration data
Significant past production
Excellent structural setting
Large number of targets
Encouraging initial geochemical data
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LAURISTON GOLD PROJECT
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LAURISTON GOLD PROJECT
High-grade goldfields withsuccessful production histories & minimal modern exploration
Various epizonal prospects with the right Au-As-Sb signature
Gold mineralization hosted by Ordovician sediments & igneous dykes
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SIGNIFICANT HARDROCK MINE PRODUCTION
From the Lauriston Gold Project
Note that the Energetic Group has produced 277 ounces per vertical meter compared to the Russell’s Group at 101 ounces per vertical meter mined.
The Energetic Group has been mined to about one third the depth of the Russell’s Group.
Most production figures are missing from the earlier period of mining.
MINETOTAL
TONNAGE (t)
TOTAL AU (oz)
MINED DEPTH
(m)
MINERALIZATION GRADE (Au g/t)
MODERN EXPLORATION
RUSSELL'S REEF 44,923 33,403 330 22.8 SPARSE DRILLING ON NORTHERN EXTENSION
ENERGETIC REEFS 54,667 31,626 114 17.7 NO DRILLING
UNITED KINGDOM REEFS 77,006 26,518 113 10.5 TWO DRILL HOLES
WYNDHAM REEFS 32,927 11,747 88 10.9 NO DRILLING
TOMMY TODD 18,099 6,968 84 11.8 THREE DRILL HOLES
Russell’s Group of Mines with mine plans
No drilling
Consistent stoping, consistent grade.
Stacked trough reefs were worked to 330m depth.
These structures continued to repeat at depth.
The mines produced 45,098 tons for 33,500 ounces at a grade of 22.7 g/t Au and at 105 ounces per vertical meter.
Parallel fold related reef systems occur
Antimony mineral stibnite reported in mine
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RUSSELL’S REEF LONG SECTION
Exploration Licence (EL6430) applied for in early 2017 covering 102 km² in Victoria and was granted on 8th May 2018 for 5 years.
Successful drilling at Golden Mountain with disseminated granite related gold mineralisation;
Epizonal gold deposits associated with disseminated stibnite & arsenopyrite sulphide mineralisation
Further exploration licence applications lodged for a total of 996 km2
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GOLDEN MOUNTAIN (TALLANGALOOK)
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GOLDEN MOUNTAIN SECTIONS
1919
GOLDEN MOUNTAIN PLAN & HISTORIC PLAN
E-W Zone
E-W Zone
N-S Zone
N-S Zone
X faultX Fault
GOLDEN MOUNTAIN DRILL SECTION 1940mN
Total historic hard rock gold production from Walhalla of 1,510,309 ounces at a recovered grade of 33.59 g/t Au.
Dozens of high priority exploration targets including former mines most with no modern drilling or exploration.
Faulted dyke structures have same age of mineralization as Fosterville and elsewhere in the Melbourne zone.
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THE WALHALLA BELT
As part of the Walhalla Belt Project, the Walhalla licence
application includes the Cohen’s Reef with a past production
of 1,479,851 oz from 1,429,298 tonnes at an average grade
of 32.2 g/t Au (GeoVic, 2020). The production at Cohen’s
Reef came from a single mineralized shoot mined to 1120m
depth. Mineralisation was controlled by the steeply west
dipping Cohen’s Shear zone, which was reactivated during
gold mineralisation in the Middle Devonian Tabberabberan
orogeny. This is the same age mineralisation as Fosterville
and elsewhere within the central Melbourne Zone. The
known extent of Cohen’s Reef is approximately 1500 metres
long and 1134 metres deep, along the valley of the
township of Walhalla. The extensive and continuous reef is
predominantly a laminated quartz-carbonate vein with
some associated stockwork veins, and in places incorporates
sheared dyke and meta-sedimentary rocks. The reverse fault
lies along the margin of an extensive but narrow dyke,
within a complex fifty-metre-wide shear zone. Gold
mineralisation is mainly in laminated quartz veins in the
reverse faults, associated with pyrite, arsenopyrite, galena
and stibnite. Pyrite alteration envelopes extend to 10m into
the host rocks, while more abundant arsenopyrite extend
2m.
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COHEN’S REEF
Historical production along Cohen’s Reef
concentrated on visible gold within the
laminated reef system. Recent assay
results have highlighted the increased
levels of visible gold, and the presence
of disseminated gold, especially along
dyke margins. The ten highest gold
assay results (5 – 12 g/t) from recent
drilling in proximity to Cohen’s Reef are
found in laminated veins within or on
the margins of dyke; or in laminated or
brecciated veins within
meta-sedimentary rock, predominantly
shale (Goldstar, 2007). Historic mine
plans indicate mineralisation at Cohen’s
Reef remains open at depth
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WALHALLA HISTORICAL PRODUCTION
Large tenement application (650 km²) amalgamating the Luckie Reef at Alexandra, Reedy Creek and Yea tenements.
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PROVIDENCE GOLD PROJECT
Reedy Creek goldfield is a very similar setting to Costerfield with lots of high grade small deposits in close proximity.
Intrusive related breccia mineralization explored by BHP at Mt Piper
Over 36,000 ounces produced at the very high grade of 39 g/t
4 parallel reefs within 150 m wide Luckie Reefs corridor
Luckie reef worked to 122m & produced 207 ozs per meter depth
One of the richest mines per vertical metre in the State, making excellent project economics for any discovery
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PROVIDENCE-FOSTERVILLE STYLE SIGNATURE GOLDFIELDS
MULTIPLE DRILL TARGETS
ENERGETIC REEFSLAURISTON(Au-Sb-As)
● Stacked saddle reefs for 2.5km length west of Russell’s Reef
● Partial recorded production 54667t for 31626oz to 114m at 17.7g/t
● Percussion drilling along the line of workings for high grade gold targets
● Drilling Work Plan of 18 holes for 1460m pending approval
WYNDHAM & NAPIER REEFSLAURISTON(unknown signature)
● Stacked saddle reefs mined for 3.7km length east of Energetic & Russell’s Reef
● Partial recorded production 32927t for 11747oz to 88m at 10.8g/t
● Exploration for high grade within overall mineralisation target.
● Drilling Work Plan for 34 holes totalling 2720m of drilling pending approval
GOLDENMOUNTAINTALLANGALLOOK(Au-Te Intrusive related)
● Central North-South zone initial drilling with multiple wide gold & high grade mineralised intersections in subvertical fracture zone
● Northern East-West Zone initial drilling with a broad shallow low grade mineralisation on granite contact
● Soil sampling on E-W zone extensions assays pending
● New Work Plan for further 15 drill sites recently approved for all zones
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MULTIPLE DRILL TARGETS
RUSSELL’SREEFSLAURISTON(Au-Sb-As)
● Drilling Work Plan drafted for review pending submission.
MOORMBOOL PROJECT
(Au-Sb-As)
● Soil sampling conducted on magnetic anomaly & nearby fault zone with anomalous gold results at both prospects
● Work Plan percussion drilling follow up required
PREMIER RIDGELAURISTON(Au-Sb-As)
● Percussion drilling as follow up to previous trenching (eg 24m @ 0.99g/t)
● Strike length target of 2.5km
● Exploration for high grade within overall low grade mineralisation target, as at Fosterville
BEECHWORTH PROJECT(Au-As)
● Multiple intrusive related gold and mesozonal orogenic gold mineralised targets
● Licence of 36km2 with 3 goldfields
● Entire tenement soil sampled with over 2000 samples. Assays pending.
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TOMMY DODD & WILCOTT’S REEFSLAURISTON
● Soil sampling completed. Assays pending.
● Draft Drill Work Plan compiled
FOSTERVILLE SOUTH EXPLORATION
Key gold projects which have significant gold potential due to:
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The structural setting of the mineralisation & its association with nearby successful operating mines such as Fosterville & the A1.
The prospective nature of the modern disseminated epizonal (Fosterville) mineralization & granite related (IRG) mineralization (Golden Mountain)
The limited exploration previously conducted with positive results, and the failure to take exploration further given the high grade gold mineralization found at depth at Fosterville, yielding a more prospective view of these types of deposits
The large number of prospects yet to be assessed, which may have epizonal or IRG signatures
The granite related historical exploration work suggests that epizonal deposits may merge into these granite related deposits at depth.
LEVIATHAN GOLD SPINCO
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Spinout from Fosterville South of the Avoca and Timor Projects to a newco, Leviathan Gold
Fosterville South shareholders to receive one share of Leviathan Gold for every share of Fosterville South they own as at Effective Date
Leveraging first mover status and premier regional land package and flowing benefits directly to Fosterville South shareholders
SHARE STRUCTURE
COMMON SHARES ISSUED: 65,854,951
SHARE PURCHASE WARRANTS:exercisable at $4.95 981,250
BROKER WARRANTS:exercisable at $4.00 121,468
SHARE PURCHASE WARRANTS:exercisable at $2.00 3,872,484
BROKER WARRANTS:exercisable at $1.10 775,293
Fosterville South shareholders include leading precious metal institutional investors and top industry entrepreneurs. The Company has a strong cash position, no debt and extensive experience in the Victorian goldfield.
30**Management and employee share ownership of approximately 30%, with additional large share ownership positions by high net worth investors, such as Mr. Eric Sprott and Mr. Ross Beaty.
*Fully diluted shares 74,130,446 (fully diluted cash $42,700,000)
INCENTIVE STOCK OPTIONS:at $0.40 2,525,000
DEBT: NONE
CASH: $27,800,000
BRYAN SLUSARCHUKCEO & DIRECTOR
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TSXV: FSX
INVESTOR RELATIONS:HIGHLAND CONTACT
DIRECT: (604) 229-9445
TOLL FREE: 1 (833) 923-3334
