(TSX-V: EGM) Lac La Hache Project British Columbia Making the Grade
Cautionary & Forward Looking Information This presentation includes statements and other information that may be deemed "forward-looking statements. All such statements, other than statements of historical facts, that address estimated resource quantities, grades, locations, geometry and contained metals, possible future mining, exploration and development activities, are forward-looking statements. Although EGM believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. EGM is subject to the specific risks inherent in the mining business as well as general economic and business conditions. Specific factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates changes in and the effect of government policies regarding mining and natural resource exploration and exploitation potential environmental issues and liabilities associated with mineral exploitation, development and mining, general economic, market or business conditions and the lack of availability of necessary capital. For more information Investors should review filings available at www.sedar.com. Investors are cautioned not to assume that any part or all of the mineral deposits described will ever be converted into reserves. Rob Shives, B.Sc., P. Geo., V.P Exploration, is the Qualified Person (as defined by NI43-101) who has reviewed and approved the technical content of this presentation.
Share Capital (Mayl 2016) Issued and Outstanding 157,425,542 Strike Price Expiry Incentive Options 0.25 400,000 Dec 28 2016 Incentive Options 0.07 3,650,000 Mar 25 2017 Incentive Options 0.07 1,400,000 Jun 15 2017 Warrants 0.10 6000000 Jul 23 2017 Warrants 0.10 2000000 Aug 21 2017 Fully Diluted 170,875,542 EnGold Mines Ltd., 733-510 W. Hastings Street, Vancouver, BC, V6B 1L8 President & CEO, David Brett 604-682-2421
Management Team David H. Brett President, CEO, Director Dale Reimer Director Jeremy Wiebe Director Robert Gordon Director Rolf van Driesum Chairman of the Board Director Kevin Bay Investor Relations
Exploration Team GWR Rob Shives, P.Geo. Vice President of Exploration Senior Project Geologist Bernie Augsten, P.Geo. Drill Core Logging, Sampling Prospecting Jesse Berkey Lead Field Hand, Equipment Operator Prospecting DJ Drilling David Schussler President
Best Location in BC Easy access, minutes from paved Highway 97 We save a lot of exploration $$$: No helicopters, no road-building No powerline-building, no camps A few km to rail, gas, power, towns accommodation, restaurants, groceries, suppliers, workforce.
Property 81 Claims 18,275 ha. 100% GWR Various options are shown, have small NSRs Green squares locate numerous prospects Red dots existing drill collars
Lac La Hache Project Air Photo Abundant logging clearcuts, roads throughout Green squares locate numerous prospects Red dots existing drill collars
Three types of deposits are known to exist at Lac La Hache Project: 1. Skarn magnetite-copper 2. Porphyry copper-gold-silver 3. Breccia-hosted gold-silver-copper GWR is currently focused on assessment of underground mining potential of the gold-rich (gold-silver-copper) Aurizon South Zone
Aurizon Central Drilled 2007-2009 Steeply plunging Breccia + Fx hosted Cpy, Bo, Native Cu Open at depth (>600m) Gold-silver-copper Post-min faulting/fx Aurizon South DDH 08-07 discovery Steeply dipping, planar HBx + Fx + quartz Cpy, Py Open at depth (>600m) Gold-silver-copper Consistant Structure! Selected drill holes shown 2015 collars shown in red Our Mobile Metal Ion soil survey in 2010 defined the strongest GOLD anomaly directly over the Aurizon Central and South Zones
Aurizon South occupies a steeply westdipping structure, currently 300m along strike, to 600m depth (open).
Gold Equivalent Value Calculation: EXAMPLE DDH E N Elev. Dip Az Length Au Cu Ag Core Interval From To AuEq* NAD 83 Zone 10 m masl deg deg m g/t % g/t m m m g/t AZS08-07 618090 5757791 1385.0 61 270 387.10 15.50 1.92 7.60 6.00 326.00 332.00 17.85 Au Eq = Au g//t + (Cu grade x ((Cu price per pound/au price per ounce) x 0.06857 pounds per ounce x 10000 g per %)) + Ag grade x (Ag price per ounce/au price per ounce)) Note: True thickness of the mineralized zone is variable, and is reported as drill core length Gold equivalent grade includes copper and silver value and is based on 100% recoveries 10-Day Average Metal prices in Canadian Dollars used: Gold $C 1634/ounce, Copper $C 2.79/lb, Silver $C 22.31/ounce USD to CAD exchange rate: 1$US = 1.28$CA (May 12, 2016) 1 metric tonne = 2204.62 pounds 1 pound = 14.48 troy ounces 1 troy ounce = 31.103 grams
Very high Cu and Ag significantly increase AuEq value!
Selected core assays 2015, Aurizon South Prospect Bolded figure thresholds: Au >5gpt Cu >1% Ag>5gpt Interval >5m DDH E N Elev. Dip Az Length Au Cu Ag Core Interval From To AuEq* NAD 83 Zone 10 m masl deg deg m g/t % g/t m m m g/t AZS15-42 617778 5757717 1418.5-55 110 7.74 1.26 6.53 10.00 195.00 205.00 9.37 incl. 11.67 1.54 7.92 5.00 198.00 203.00 13.66 incl. 23.00 3.42 18.10 0.45 199.50 199.95 27.42 AZS15-43 617771 5757745 1413.3-55 110 279.20 1.32 0.37 2.52 15.10 226.90 242.00 1.81 incl. 5.68 1.05 9.74 2.00 235.00 237.00 7.09 incl. 10.25 1.36 15.10 0.95 235.00 235.90 12.11 AZS15-47 617793 5757679 1423.9-62 110 260.60 6.66 0.20 4.60 1.61 55.08 56.69 6.96 incl. 2.10 0.35 3.94 4.10 217.00 221.10 2.58 AZS15-48 617751 5757725 1419.6-55 110 276.15 2.21 0.01 0.20 2.45 78.55 81.00 2.22 1.70 0.44 2.60 23.00 229.00 252.00 2.27 incl. 10.73 1.52 11.50 2.00 242.00 244.00 12.74 AZS15-49 617794 5757679 1424.0-45 110 218.85 13.40 0.50 96.00 0.83 38.00 38.83 15.20 13.15 0.09 2.00 0.65 72.85 73.50 13.29 10.20 0.87 37.20 0.80 160.20 161.00 11.73 AZS15-50 617815 5757697 1415.0-55 110 244.03 0.72 2.30 9.10 0.50 96.00 96.50 3.66 4.30 0.09 3.49 2.44 143.56 146.00 4.45 incl. 8.79 0.26 12.60 0.74 143.56 144.30 9.27 12.40 0.09 0.90 2.00 210.00 212.00 12.52 AZS15-51 617832 5757718 1409.0-55 110 208.79 6.26 0.74 6.70 0.60 116.15 116.75 7.25
Aurizon Zone South: High-grade, Au-rich. DDH AZS11-29 drill core assays. Located at SHALLOW DEPTH (170 m) Note gold and silver grades! DDH AZS08-07 drill core assays at 300 meters deep within the structure / /
Aurizon Zone South: High-grade, Au-rich. DDH AZS08-07 drill core assays. Located at MEDIUM DEPTH (130 m) Note gold and silver grades! Hydrothermal breccia hosts gold-silver-copper From To m DDH AZS08-07 10.4gpt/14m DDH AZS08-07 6.3gpt/26m DDH AZS08-07
Aurizon South Cross-section, looking to 020º
2016 Proposed Drilling at Aurizon South This example shows 100m-spaced intercepts, testing the AZS gold structure at 200, 300, 400, 500m depths (closer drilling will be completed where results warrant) 3-D modeled structural surface 200m 200m 300m 300m 400m 400m 500m 500m Section View, looking 020 along strike Pierce-Point View, towards 110
Additional Exploration Potential Remains Strong at Lac La Hache A. Porphyry Copper There is very compelling evidence in the large existing database suggesting copper-porphyry mineralizing system(s) exist below the relatively shallow drilling (<< 300m) at several known showings. Two areas at Lac La Hache are particularly prospective: 1. Aurizon Zone South (below the gold-rich AZS structure) 2. Ann North - Berkey (includes a new, 2015 discovery) B. Skarn Magnetite-Copper There is CLEAR potential to add to our existing skarn-type, copper-magnetite Resource, currently defined at Spout Deposit.
LLH Prospects: All part of larger, underlying porphyry system(s)? Conceptual Exploration Model 350 m
Porphyry Copper-Gold: Ann North Berkey Area 2015 prospecting led to discovery of the new Berkey Prospect, located 400m SW of Ann North, 100m W of the 98 Prospect. Berkey copper mineralization occurs as well disseminated, fine to coarse blebs of chalcopyrite (NOT fracture-related) within a potassic (more than 8%K) syenitic monzodiorite dike. This phase has not been reported previously at Lac La Hache. Initial surface work has exposed the dike for 25m along strike, with true widths up to 5m, cutting the regional, host grey monzodiorite, which contains fracture-controlled chalcopyrite in proximity to the syenitic dike. Although current extent is small, the significance lies in the existence of this well-mineralized, and mineralizing, intrusion. Is this on-surface evidence of possible source intrusion predicted at-depth at Ann North? Chip and grab samples assay 0.3 to 0.5 % Cu