INVESTOR PRESENTATION January 2014 365 Bay Street Suite 400 Toronto, ON M5H 2V1 QUE:CNSX
Forward Looking Statement Except for historical information contained herein, this presentation may contain forward-looking statements including but not limited to comments regarding predictions and projections. Forwardlooking statements address future events and conditions and therefore involve inherent risks and uncertainties. Although MAG copper believes that such expectations are reasonable, there can be no assurance that such expectations will prove to be correct, and therefore actual results may differ materially from those currently anticipated in such statements. You are cautioned not to place undue reliance on any such forward looking statements, whether made in this presentation or in any question and answer period related to this presentation. The historical resource estimates presented herein were completed prior to the implementation of the NI 43-101 requirements. Hence, the historical estimates should not be relied upon.
Why Mag Copper? Production in 9 to 12 months post closing of conditional financing The Company wishes to make clear that it will not be basing any production decision on a preliminary economic assessment demonstrating the potential viability of mineral resources or a feasibility study of mineral reserves demonstrating economic and technical viability, and as a result there is increased uncertainty and multiple technical and economic risks of failure which are associated with any production decision.
Location Map Magusi and Fabie Bay
Geology Map - Magusi and Fabie Bay
Introduction Focused on near term production potential/exploration/ development of historic Brownfield resources Acquired 100% title to the Magusi River copper/zinc deposit located near Rouyn, Quebec in spring/2011 Experienced mine development and exploration team Intends to commence production at Fabie Bay/Magusi within 9 to 12 months Fully permitted for production
Magusi Deposit 40 km north of Rouyn- Noranda, Quebec via an all weather road In the Noranda Complex in the Abitibi Greenstone Belt, between Porcupine Destor Fault to the North, Cadillac Larder Break to the South and the Noranda camp to the east. NI 43 101 Indicated and Inferred resource estimate 2 km mineralized corridor, between Magusi deposit and Fabie Bay Mine (in production in 2008) Prior site expenditures will reduce lead time and capital requirements for near term production Significant exploration upside along strike, and at depth.
Magusi 2012 Diamond Drilling Targets Target 2 Explore/Identify Mag Anomaly along Magusi s Western claim boundary Target 3 Sulphide stringer zone Historic intercept Of 1.5m Massive Sulphide No other data available. Target 1 Increase volume/tonnage of East Block Inferred Resource
Magusi Deposit Target 1 Increase Inferred Resource Stringer Zone (target2) Magnetic Anomaly (target3) along Western Magusi Mineralized corridor
Proposed Development at Magusi
Magusi Infrastructure Portal at Magusi collared and 500 linear meters of Ramp development. Hydro lines in place and charged Settling ponds are built and Certificate of Approval granted. Roads in and around site are in good condition. Core shack and lay down for racks are ready for new drill program. Skilled Local workforce available from Rouyn- Noranda Security booth and gate are in place. Version 10
Magusi Project Exploration 2012 4,591 meter drilling program in 13 holes completed during 2012 Objective to increase the resources for the Magusi deposit. Additional Spring/Summer 2014 drilling program is planned to extend ore zones at depth and along strike Objective to increase the Inferred and Indicated resource and explore along 2.2 km of known mining corridor Perform down hole IP survey to explore zones along strike
Indicated Resource of the Magusi Deposit ZONE ORE TYPE TONNES Cu% Zn% Ag g/t Au g/t MAIN HG/Cu 729,000 3.26 0.518 43.1 0.41 MAIN HG/Zn 580,000 0.39 8.57 42.1 2.34 TOTAL --------- 1,309,000 1.99 4.21 42.8 1.27 Inferred Resource of the Magusi Deposit ZONE ORE TYPE TONNES Cu% Zn% Ag g/t Au g/t MAIN HG/Cu 355,000 3.41 0.39 24.2 0.26 TOTAL ---------- 355,000 3.41 0.39 24.2 0.26 As reported in RPA NI43-101 Report March 21, 2012 Drill plan could significantly increase these numbers
Project Economics for Magusi & Fabie Magusi & Fabie Mine Life of Mine Revenue $389,214,133 Mine Development Costs Total Mining Production Costs Assumptions Conservative Commodity Price Scenario $9,300,000 $307,961,000 Total Production Costs $317,261,000 Life of Mine Net Cashflow After 3% Royalty and Debt Repayment $51,276,709 Cu $2.80 Zn $0.70 Ag $20.00 Au $1,200.00 Life of mine - 7 years Based on existing Inferred and Indicated resource at Magusi and Fabie Bay
Project Economics for Magusi & Fabie Magusi & Fabie Mine Life of Mine Revenues $447,047,495 Mine Development Costs Total Mining Production Costs Assumptions Today s Commodity Price Scenario $ 9,300,000 $310,397,000 Total Project Costs $319,697,000 Life of Mine Net Cashflow - After 3% Royalty and Debt Repayment $104,939,070 Cu $3.24 Zn $0.84 Ag $20.15 Au $1,304.10 Life of Mine - 7 years Based on existing Inferred and Indicated Resource at Magusi and Fabie Bay
Fabie Bay Project 100% owned property Lies in the same geological setting as the Magusi Historic Production (Nov 2007 to Jan 2009) 494,000 tonnes @ average grade of 2.51% Cu Historic resource of ~406,000 @ average grade of 2.5% Cu and 8.57g/t Ag remains Cu was transported and milled at Xstrata s mill in Rouyn- Noranda Exploration drilling is planned along 2 km corridor between the Fabie Bay and Magusi deposits for mineralization
Capital Structure MAG Copper Limited Shares Outstanding Warrants / Options Fully Diluted Options / Warrants As at January 13, 2014 No. Options of Warrants CNSX: QUE 78,268,628 13,060,800 91,329,428 Current Share Price $0.05 52-Week High / Low $0.10/ 0.005 Market Capitalization Avg. Exercise Price $3.9M Options 2,000,000 $0.05 Options 1,350,000 $0.20 Warrants 9,710,800 $0.10
Management Team Greg Gibson Chairman Past President of Northern Gold and Past President of Trelawney Mining and Exploration. 30 years international mine management and development experience. Chris Irwin President and CEO Over 19 years of experience advising public mineral exploration companies. He has been a member of the Law Society of Upper Canada since 1996. Marco Guidi CFO Over 10 years financial expertise in mining. John Carter Director 35 years of direct mining and minerals processing equipment experience. Director of Trueclaim Exploration and Golden Bridge Mining. Terry Loney Director 31 years as President of Klondike Bay Resources with expertise in property acquisitions, exploration and development. President of Northern Skye Resources and Director of Golden Bridge Mining. Dan Weir Director Held many positions in the banking sector, most recently at Pope & Co. Brings extensive capital markets experience. Chairman of Michigan Potash.
Mag Copper Moving Forward Commence production at Fabie Bay/Magusi within 9 to 12 months 1,500 t/d production target Agreement in Principle with established contract miner Fully permitted for production Targeted Drill program on Magusi to expand resource Production and Drilling upside
Mag Copper Contacts Contact: Terry Loney John Carter kyalexa@sympatico.ca cartera@sympatico.ca 1-705-669-9259 1-905-302-3843 Wanda Cutler wanda@cutlermccarthy.com 1-416-303-6460