Copper, Gold Growth and Discovery in the Americas. Corporate Presentation November 2020

Transcription

1 Copper, Gold Growth and Discovery in the Americas Corporate Presentation November 2020 World s Greatest Explorer Assembled Portfolio, Designed Programs, Our Discoveries Honor His Legacy

2 Forward-Looking and Cautionary Statements This presentation does not constitute an offering of securities and the information contained herein is subject to the information contained in the Company's continuous disclosure documents. All amounts expressed in Canadian $ unless otherwise stipulated. Forward-looking Statements This presentation includes certain statements that constitute "forward-looking statements", and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"). These statements appear in a number of places in this presentation and include statements regarding our intent, or the beliefs or current expectations of our officers and directors. Such forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this presentation words such as "intends", "expects", "will be", "underway", "targeted", "planned", "objective", "expected", "potential", "continue", "estimated", "would", "subject to" and similar expressions are intended to identify these forward-looking statements. Although Solaris Resources (the "Company") believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. 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, including the risks, uncertainties and other factors identified in the Company's periodic filings with Canadian securities regulators, and assumptions made with regard to the ability to advance exploration efforts at Warintza, Ricardo, La Verde and the other projects; the results of such exploration efforts; and the Company s ability to advance its projects and achieve its growth objectives. These forward-looking statements are based largely on current expectations and projections about future events and financial trends affecting the financial condition of our business. These forward-looking statements were derived using numerous assumptions regarding expected project parameters, results of operations, performance and business prospects and opportunities that could cause actual results to differ materially from those in the forward-looking statements. While the company considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Forward-looking statements are based on information available at the time those statements are made and/or management's and/or its qualified persons' good faith belief as of that time with respect to future events, and are subject to information currently available, they may prove to be incorrect. Forward-looking statements are based on information available at the time those statements are made and/or management's and/or its qualified persons' good faith belief as of that time with respect to future events, and are subject to known and unknown risks and uncertainties outlined in the Company's corporate disclosure and other documents filed on that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements speak only as of the date those statements are made. Except as required by applicable law, we assume no obligation to update or to publicly announce the results of any change to any forward-looking statement contained herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward- looking statements. If we update any one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. You should not place undue importance on forward-looking statements and should not rely upon these statements as of any other date. All forward-looking statements contained in this presentation are expressly qualified in their entirety by this cautionary statement. Technical Information The technical information contained in this document has been reviewed and approved by Jorge Fierro, M.Sc., DIC, PG, Vice President Exploration of Solaris who is a Qualified Person under NI All technical information related to Warintza is based on the Resource Estimate of the Warintza Central Cu-Mo Porphyry Deposit" prepared by Equity Exploration Consultants Inc. with an effective date of December 13, All technical information related to La Verde is based on the "Technical Report, La Verde Copper Project" prepared by AMC Mining Consultants (Canada) Ltd. with an effective date of June 20, Cautionary Note to U.S. Investors Concerning Estimates of Mineral Resources The mineral resource estimates described in this presentation have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. The terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in NI and recognized by Canadian securities laws but are not defined terms under the U.S. Securities and Exchange Commission ("SEC") Guide 7 ("SEC Guide 7") or recognized under U.S. securities laws. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to mineral reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever by upgraded to a higher category. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or prefeasibility studies. U.S. investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Accordingly, these mineral resource estimates and related information may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder, including SEC Guide 7. 2

3 Project Portfolio Multiple-Times Growth and Discovery Potential La Verde Solaris is responsibly and sustainably advancing a portfolio of copper and gold projects in the Americas: Warintza Peru JVs Focused on Flagship Warintza, Ecuador High grade open pit resource within 5 km trend of outcropping copper porphyry; untested gold potential Discovery Potential Drilling for discoveries at Tamarugo and Ricardo in Chile and Capricho and Paco Orco in Peru Tamarugo Exploration Programs Designed by David Lowell Assembled portfolio and designed programs led by his protégé, Jorge Fierro, VP, Exploration Leverage through drilling to multiple-times resource growth and discovery potential Ricardo Managed by the Augusta Group Highly-specialized in exploration and development, unrivaled track record of over $4.5B exits / 10 yrs 3

4 Capital Structure Share Distribution TSX Venture Exchange SLS Common Shares Outstanding 88.4M Stock Options 6.3M EQX-linked Warrants¹ 4.5M / $26M Solaris Warrants 34.0M Restricted Share Units 0.6M Lowell 2% Beaty 5% Spin-Out 25% Mgmt 5% Lundin 6% Other 4% Equinox Gold 29% Richard Warke 24% Fully Diluted Shares Outstanding² 133.8M Cash² $25M ¹Solaris issues 0.25 Solaris common share for each full share of Equinox Gold Corp. upon exercise of Equinox Warrants, and receives 1/10th of the cash proceeds payable to Equinox Gold Corp. when such warrants are exercised. See EQX Financial Statements for full warrant pricing details. ²As at June 30,

5 Leadership Track Record of Success Board & Management Richard Warke, Executive Chairman Arizona Mining, Equinox Gold, Augusta Resource, Ventana Gold Daniel Earle, President & CEO TD Securities Linda Chang, CFO Arizona Mining, Augusta Resource, Ventana Gold Purni Parikh, SVP Corporate Affairs Arizona Mining, Augusta Resource, Ventana Gold Federico Velasquez, VP Operations Equinox Gold, Anglo American, Alta Gas Chad Wolahan, VP Projects Ivanhoe Mines, Stantec, Newcrest Jorge Fiero, VP Exploration Equinox Gold, Lowell Copper, BHP Jacqueline Wagenaar, VP Investor Relations Guyana Goldfields Donald Taylor, Director Arizona Mining, BHP Minerals, Bear Creek Greg Smith, Director Equinox Gold, Esperanza Resources, Minefinders Ron Walsh, Director Walsh King LLP, Canadian Tax Foundation, Vancouver Stock Exchange Strategic Partners Equinox Gold Corp. Equinox Gold is an emerging mid-tier Canadian gold producer, dual-listed in Canada and the US. The company has a reserve base of over 12 Moz, with six mines in production and two more in development, providing an organic growth profile to over 1Moz annual production by Ross Beaty Ross Beaty is a serially-successful resource entrepreneur and founder of Pan American Silver ($3.5B), Alterra Power ($1.1B) and Lumina Copper, a company that turned $170M in financing into five separate companies generating $1.4B in shareholder value over 10 years. Lukas Lundin Mr. Lundin has led companies to numerous discoveries and major transactions, including Lundin Mining s $3.3B merger with EuroZinc, the $2.0B sale of Tanganyika Oil, and the $7.1B sale of Red Back Mining. Richard Warke Richard Warke has also led multiple successful mining companies, including Ventana Gold (sold for $1.6B); Augusta Resource (sold for $670M); Co-Founded to form Equinox Gold ($4.0B Market Cap); and Arizona Mining (sold for $2.1B). Augusta Group Mining sector-focused management group based in Canada and the U.S. with an unrivaled track record of value creation totaling over $4.5B in exit transactions since 2011, and has strategic partnerships with the leading entrepreneurs in the mining sector. 5

6 David Lowell World s Greatest Explorer ( ) Warintza, 2000 Mirador, 2001 Lowell Discoveries Major Mines Pierina, 1996 Antamina Toromocho, 2005 David Lowell made more discoveries of greater consequence than anyone in history, with over a dozen major discoveries, including the greatest of all time, La Escondida, which produced ~$10B of copper last year. Assembled our portfolio of assets and designed programs led by his protégé, Jorge Fierro, the Company s VP, Exploration. Lowell-Guilbert first defined porphyry deposit model. Its application led to David s first discoveries (exposed deposits). He evolved his technique for a second wave of discoveries (obscured deposits); His final technique evolved to blind discoveries. Exposed Deposits (60-80s) Alteration systems visible from air, e.g., Bajo Alumbrera, San Cristobal Obscured Deposits (80-90s) Partly covered by capping, cover, e.g., La Escondida Blind Deposits (2000-Future) Completely covered or deep, e.g., Tamarugo, Ricardo Cerro Verde Los Calatos, 1992 Toquepala Chuquicamata Collahuasi Leonor, 1989 Maria Rosa, 1985 San Cristobal, 1985 Radomiro Tomic Spence Escondida, 1981 Zaldivar, 1981 Bajo Alumbrera, 1968 Los Pelambres Los Bronces Andina El Teniente 6

7 Part of The Augusta Group Unrivaled Track Record of Value Creation Canada-based management group, focused on mining sector Highly-specialized in exploration and development stage projects Unrivaled track record of creating value, with over $4.5B in exit transactions Past Returns Sold for $1.6B in 2011 Sold for $667M in 2014 Sold for $2.1B in 2018 Co-Founded in 2017; $4.0B Market Cap (12,960% return) (3,300% return) (6,100% return) (1,700% return) 7

8 Part of The Augusta Group Proven Results Hudbay increases offer to C$3.56/sh 8

9 Responsible Mining Environmental, Social and Governance Environment We focus on limiting our environmental impacts by: Responsible use of resources Minimal impact to environment Reducing waste Identify, analyze and manage our environmental risks Social We act in a socially responsible manner and contribute to the communities in which we operate. Committed to working transparently with our employees and other stakeholders to create growth and prosperity Established a committee to provide us with feedback on our corporate social responsibility efforts Governance We act in an ethically responsible manner and uphold our core values using our: Code of Business Conduct Active participation in leading management and disclosure initiatives and industry best practices 9

10 Responsible Mining Our Story, Our Model The Warintza Success Story World class discovery by David Lowell in 2000, sat largely dormant since 2001 due to a breakdown in social acceptance from local communities Extensive dialogue led to understanding root causes of conflict, resolution of underlying issues mid-2019; instituted an informed, innovative CSR program Government-Sponsored Prior Consultation process with community stakeholders and signed Impacts & Benefits Agreement in 2020 The Warintza Model Prior Consultation; formalized relationship based on trust and transparency; full permitting, with no reliance on Administrative Silence Extensive employment from local and surrounding communities, boosted by skills training and capacity building programs to foster greater inclusion Educational site visits to projects in Ecuador, Peru and Canada to see industry best practices firsthand and benchmark our practices Franklin Kuja, Indigenous Leader of the Warints community: "Ecuador is a megadiverse country, and we came to PDAC to show the industry that it is possible to develop mining projects in a responsible and inclusive way and that we are the main guarantee of the Warintza Project moving forward. 10

11 Responsible Mining Inclusive Approach Maximizing community involvement key to strong and resilient alliance Innovative approach: commitment to transparency, education and inclusion Government and community understanding of impacts and benefits of project Community involvement at each step, enhanced with capacity-building program Warintza Community Population Community Number Warints 300 Yawi 200 Total 500 Direct Community Employment Community Number Warints, Yawi 77 Amazonia sector 6 Resto del país 6 Total 89 Direct & Indirect Service Providers Community Number Warints 25 Yawi 5 Macas 35 Quito 10 Total 75 11

12 Warintza Project World Class Project, Southeast Ecuador Warintza Wide Open for Growth and Discovery 26,777 hectare property, 40 km north of Mirador Cu-Au mine (US$1.4B / 20 Mtpa), Adjacent to San Carlos & Panantza (1.1 Bt combined) Excellent infrastructure: highway access with road into site (October), abundant hydroelectric power, fresh water Minimal drilling on discovery outcrop ( ) within 5 km-long system (6.6 km in 33 holes, less than 200m avg. drilled depth) In-Pit Inferred Resource: % CuEq¹ (0.56% Cu, 0.03% Mo, 0.1 g/t Au), less than 1 to 1 strip ratio, open laterally in every direction and to depth 1. See Resource Estimates and Cautionary Notes 2. Constraining optimised pit shell with 3D view of the inferred blocks greater than 0.2% copper (looking southeast). Strip ratio for optimised pits is 0.71:1. 12

13 Warintza Project Drilling Extends Warintza Central Warintza 1 st Drill Program Ongoing 40 km drill program underway with two rigs currently and third arriving imminently All three holes returned consistent, high grade intervals starting from surface Interpretation: outer halo of porphyry system, highergrade core to be vectored toward with additional drilling Drill program aims to extend Warintza Central to 1,000m depth and grow footprint laterally Additional rigs will test porphyry centres at Warintza West, East and South zones 13

14 Warintza Project Drilling Extends Warintza Central 14

15 Warintza Project Extensive System of Outcropping Porphyries 81m at 1.1% Cu in channel Cu soils ~790 ppm Mo soils ~64 ppm Cu soils ~625 ppm Mo soils ~61 ppm Scale Reference: San Carlos-Panantza (1.1 Bt combined) Open laterally - Mo anomalies define porphyry centres Cu soils ~683 ppm Mo soils ~62 ppm No soil anomaly % Cu in chips Cu in soils ~1080 ppm Mo in soils ~69 ppm 15

16 Warintza Project Large-Scale, Undrilled Gold Anomalies Undrilled Gold Potential Three large-scale, undrilled gold anomalies from surface sampling (Maiki & Caya) Pitting at Caya has uncovered gold stockwork zone Historical placer mining activity on gold shedding off Caya into drainages 1. Corriente Resources - Panantza and San Carlos Copper Project, Preliminary Assessment Report, October 30,

17 Upcoming News News Anticipated in 2020 Drilling results from Warintza Central for rapid resource growth; discovery potential along 5 km outcropping porphyry trend Discovery potential at Warintza gold targets Advancing Tamarugo in Chile toward drilling; Capricho and Paco Orco in Peru drill-ready next year Discovery potential from drilling at Ricardo in Chile via JV Partner, Freeport-McMoRan 17

18 Joint Ventures

19 Tamarugo Project Discovery Potential in Chilean Copper Belt Discovery potential in the same geologic area that hosts Chile s largest copper porphyry deposits Solaris can earn up to a 75% interest in Tamarugo for gross expenditures of US$5.5M / 5-yrs from Freeport 5,100 hectare property in a mineralized corridor that hosts numerous porphyry deposits 5 km NE of Copiapo with excellent access to infrastructure including power and nearby water Same geologic and structural setting as El Salvador and Potrerillos Copper Mines, located ~50 km to the NE: El Salvador: % Cu Potrerillos: % Cu 19

20 Capricho and Paco Orco Discovery Potential via JV in Peru Capricho Solaris option to earn up to 75% 4,600 hectare property, 60 km SE of Las Bambas, Haquira Outcropping porphyry exposed >300 m during recent landslip Samples from this outcrop grade up to 3% Cu Community consultation ongoing Paco Orco Solaris option to earn up to 75% 4,400 hectares property, northern extension of Southern Peru Copper Belt Polymetallic CRD gossan outcropping in limestone extending >2 km Surface samples up to 0.5 % Pb, 0.26% Zn and 58 g/t Ag from leached material Community consultation ongoing 20

21 Ricardo Project Discovery Potential via JV in Chile Discovery potential on the same structure as one of Chile s largest copper mines, Chuquicamata Exposure to US$4.2M of exploration spending over two years as part of US$130M / 5-yr farm-out of 80% to Freeport-McMoRan 16,000 hectares in the most prolific section of the West Fissure fault, which controls Chile s largest copper deposits Earlier efforts at drilling stymied by fault, but encountered rock types and alteration similar to those seen at Chuquicamata 21

22 La Verde Project Leverage via Development-Stage JV in Mexico Development stage project with excellent infrastructure, provides leverage to higher copper prices 60% ownership with Teck Resources holding 40% Positive PEA economics with >US$617M NPV at US$2.70 copper (100% basis)¹ Paved road access to site with water, highway and rail nearby 2012 resource estimate¹: - M&I: 408M tonnes grading 0.41% Cu containing 3.7Blbs Cu - Inferred: 338M tonnes grading 0.37% Cu containing 2.7Blbs Cu 1. See Resource Estimates and Cautionary Notes 22

23 Appendix

24 Copper Deposit Discovery Rate Remains Dismal Number of Discoveries : Muji, 2011: Cobre Panama, Timok, Cerro Negro, etc. 2012: Copa Sur 2013: Cascabel, Onto, Calingiri, West Musgrave 2014: Kamoa-Kakula, La Huifa, Jebel Ohier 2015: : Marimaca 2017: : : - Only 1 discovery made since Discovery Year Source: S&P Global Market Intelligence As of June 1,

25 Less than 1 Mt Discovered since 2015 Copper in reserves, resources & past production Projected new copper in major discoveries ¹ Copper exploraton budgets Copper in major discoveries (Mt) : Muji, 2011: Cobre Panama, Timok, Cerro Negro, etc. 2012: Copa Sur 2013: Cascabel, Onto, Calingiri, West Musgrave 2014: Kamoa-Kakula, La Huifa, Jebel Ohier 2015: : Marimaca 2017: : : - 5,000 4,500 4,000 3,500 3,000 2,500 2,000 Copper exploration budget (US$M) 1,500 1, ¹ S&P Global Market Intelligence forecast of how the total discovered copper will increase in the coming years Source: S&P Global Market Intelligence As of June 1,

26 Copper Supply Cliff; Discoveries Needed Today 26 Demand Available from base case mines Million dry metric tonnes Probable Brownfield Contribution Minelife Extension Contribution Mined copper demand 6.0 Mt of new production capability = needed from greenfield projects >100 Major New Mines 18 Projected mine production 16 Pre-Discovery Exploration Discovery Definition & Exploration Feasibility, Permitting, Financing Construction Operation Source: Wood Mackenzie 26

27 Copper is a Strategic Focus for Majors We need to secure more options in copper through exploration and early stage entry in early-stage resources in Canada, Mexico and Ecuador - BHP Group CEO, Mike Henry Copper is our preference. A bit like BHP, we d love a Tier 1, large-scale and low-cost asset. Ideally, shallow and near the coast, with good infrastructure would be ideal - Rio Tinto GM Exploration, Lynn Olssen Future-Facing Commodities BHP Copper Outlook: Sustained Upside for Prices Robust demand growth from electrification mega-trend superimposed on growth from traditional end uses Copper Nickel Potash Supply shortfalls from due to grade decline, resource depletion, increased input costs, water constraints, and scarcity of quality projects Gaping supply-demand gap cannot be filled with brownfield expansions; 6 Mtpa production required from greenfield projects Source: BHP Climate Change Briefing -Sept 10, 2020, S&P Market Intelligence 27

28 Warintza Among Highest Grade Quartile Among OP Mines Escondida, 0.46%Cu) 12.0 Copper Reserves & Resources (Mt) Filo del Sol Constancia Sentinel Cobre Panama Zafranal Mirador Growth Potential? 2.0 Warintza Santa Domingo 33 holes, 0.56% Cu Marimaca Grade (%) ¹ All major open pit copper discoveries from 2000 present with a grade of <1.0% Cu Source: S&P Global Market Intelligence As of June 1,

29 Warintza Rapid Value Creation in Exploration Stage Market Capitalization (C$M) Jul-20 Nov-20 Mar-21 Jul-21 Nov-21 Mar-22 Jul-22 Nov-22 $2,500 $2,000 $1,500 $1,000 $500 Rapid Value Creation Phase November 2020 Solaris Warintza (100%) C$0.49 Market Cap Inf: % CuEq¹ 7 km Drilling January 2018 SolGold Alpala (85%) C$1.2B Market Cap Maiden Resource Ind: % CuEq Inf: % CuEq² 64 km Drilling SOLG SolGold Completes PEA SLS SolGold Commences Feasibility Study LASSONDE CURVE October 2020 SolGold Alpala (85%) C$1.4B Market Cap M&I: % CuEq; Inf: % CuEq³ 217 km Drilling $0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Definition & Exploration Feasibility & Permitting Financing & Construction 1. See Resource Estimates and Cautionary Notes 2. Technical Report on the Maiden Mineral Resource Estimate For the Alpala Deposit, Ecuador Dec 18, Cascabel Property NI Technical Report Alpala Mineral Resource - Nov 11,

30 Resource Estimates Warintza In-pit Mineral Resources Resource Tonnes CuEq (%) Cu (%) Copper (M lbs) Mo (%) Mo (M lbs) Au (g/t) Au (oz) Inferred 123,760, , ,600 The Warintza Mineral Resource estimate was reported in the Resource Estimate Of The Warintza Central Cu-Mo Porphyry Deposit" prepared by Equity Exploration Consultants Ltd. with an effective date of December 13, The Warintza Central Mineral Resource statement has been prepared by Trevor Rabb, PGeo who is a qualified person as defined by NI The resource is reported using a cut-off of 0.2% copper. Solaris defines copper equivalent calculation for reporting purposes only. Copper-equivalence calculated as: CuEq (%) = Cu (%) Mo (%) Au (g/t), utilizing metal prices of Cu - US$3.00/lb, Mo - US$10.00/lb and Au - US$1,500/oz. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. La Verde Mineral Resources Resource Tonnes Cu (%) The La Verde Mineral Resource estimate was reported in the "Technical Report, La Verde Copper Project, Michoacán State, Mexico" prepared by AMC Mining Consultants (Canada) Ltd. with an effective date of June 20, The resource is reported using a base-case cut-off grade of 0.2% copper. The cut-off grade of 0.2% copper is based on experience for similar open-pit projects and a mining conceptual study which used a metal price of US$2.50/lb copper and copper metal recovery of 92%. This Resource estimate is not constrained by a pit shell. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Ag (g/t) Au (g/t) Copper (M lbs) Measured 57,527, Indicated 350,442, ,098 Total M&I 407,969, ,669 Inferred 337,838, ,748 30

31 Copper, Gold Growth and Discovery in the Americas Investor Relations: x.203