corporate presentation - abacus mining & exploration corp. · abacus mining and exploration...

Abacus Mining and Exploration Corporation I TSX:AME I www.amemining.com 1

Corporate PresentationAugust 2017

Value DrivenCopper focused


This presentation includes certain statements that may be deemed "forward lookingstatements". All statements herein, other than statements of historical facts, that address eventsor developments that Abacus Mining and Exploration Corporation (the "Company") expects tooccur, are forward looking statements. Forward looking statements are statements that are nothistorical facts and are generally, but not always, identified by the words "expects", "plans","anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, orthat events or conditions "will", "would", "may", "could" or "should" occur. Forward lookingstatements are based on the beliefs, estimates and opinions of the Company's management onthe date the statements are made. Although the Company believes the expectations expressedin such forward looking statements are based on reasonable assumptions, such statements arenot guarantees of future performance and actual results may differ materially from those in theforward looking statements. Factors that could cause actual results to differ materially fromthose in forward looking statements include market prices, exploitation and explorationsuccesses, environmental and permitting timeline delays or receipt of required provincial andfederal permits that may affect future plans, continued availability of capital and financing, andgeneral economic, market or business conditions. Investors are cautioned that any suchstatements are not guarantees of future performance and actual results or developments maydiffer materially from those projected in the forward looking statements. Except as required bysecurities laws, the Company undertakes no obligation to update these forward lookingstatements in the event that management's beliefs, estimates or opinions, or other factors,should change.

Forward Looking Information


- Major copper-gold porphyry development project in B.C. in the permitting process

- Exceptional copper-gold porphyry exploration project in Nevada

- Both Projects are in low-risk jurisdictions

- Management & Directors have demonstrated success in exploration, development & M+A

- Re-rating on near-term receipt of EA permits

- Compelling low market valuation- Copper market near the beginning of a multi-

year bull market

Strengths

Opportunities


A development stage copper-gold porphyry deposit in the permitting process

Ajax Copper Project, B.C.


Ajax Location Map


Ajax

New GoldAxiom

New GoldAfton

Ajax

Ajax Map Detail


OwnershipAjax Project 100% By KGHM Ajax Mining Inc.

KGHM Ajax Mining Inc. 20%

80%

By Abacus Mining & Exploration Inc.(carried by KGHM through to production)

By KGHM Polska Miedz SA

Project Ownership


West Pit

East Pit

Picrite

Sugarloaf Diorite

Mafic Volcanic

Iron Mask Hybrid

Sugarloaf-Volcanic Hybrid

Monzonite Dykes

Latite Dykes

Ajax General Geology


Ajax Site Layout


Reserve Tonnes (mt) Cu % Au (g/t) Ag (g/t)

Proven 130 0.30 0.19 0.40

Probable 296 0.28 0.19 0.38

P + P 426 0.29 0.19 0.39

Mining Rate 65,000 tpd 23,725,000 Mt/yStrip Ratio 2.65 : 1Cap Ex $1,307,200,000Op Ex LOM Mining $1.50/t mined

Process $4.31/t ore

Feasibility Study Highlights


Pre-Tax NPV @ 5% USD 872 M

NPV @ 8% USD 429 M

IRR 13.4%

After Tax NPV @ 5% USD 543 M

NPV @ 8% USD 216 M

IRR 11.1%

Financial

Payback (after tax) 6.7 years

Feasibility Study Highlights


Milestone Estimated Date*

Provincial EA Certificate

Project Agreement with First Nations

Federal EIS Approval Decision

Submit Provincial Permit Applications

Submit Federal Permit Applications

Nov-Dec, 2017

Nov-Dec, 2017

Dec-Jan, 2018

Q1, 2018

Q1, 2018

Near-term Milestones

The aforenoted timelines are subject to change without notice. Risks related to the environmental permitting process and receipt of all regulatory permits and approvals are detailed under “Risk Factors” in the Company’s filings on Sedar and its website.


Rail LineRail Line

Airport

MacArthurDeposit

BearCu Porphyry

BuckSkinCu Vein

Blue Hill

Anne Mason

YeringtonMine

WillowProperty

YeringtonPumpkin Hollow

Cu Skarn

Willow Property Location Map


Willow Google Earth Map


Willow Soils Cu-Mo


Willow Soils Au


Willow Drill Holes Detail


Willow Geophysics


- Compilation and digitization of all historic data

- Approx. 97 line km of infill soils and ground IP

- Approx. 200 line km ground magnetics

- Detailed geological mapping by an expert in porphyry systems

- Spectrometric mineralogical analysis (Terraspec) of all new soil & rock samples

- Additional age dating

- Up to 2500 m Diamond Drilling

Total Budget: $(CAD) 788,000

2017 Willow Program


Michael McInnis President, CEO and Director

Sean Harvey Director

John McConnell Director

Tom McKeever Director

Kerry Spong Director

Jeannine Webb CFO, Corporate Sec’y

Management and Directors20


Basic Shares o/s 39,134,602

Warrants & Options 4,636,654

Share Price C$ (August 1, 2017) $ 0.43

Market Capitalization $16,828,000(o/s shares)

Share Structure


Copper outlook - deficit

600

500

400

300

200

100

0

-100

-200

-300

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct

-16

Nov

-16

Dec

-16

Jan-

17

Feb-

17

Mar

-17

Apr-1

7

Month of Forecast

Wood Mackenzie 2018 Refined Balance

2018 market also moved into deficit

Thou

sand

tonn

es

600

500

400

300

200

100

0

-100

-200

-300 Month of Forecast

Wood Mackenzie 2017 Refined Balance

Thou

sand

tonn

es

Market now in deficit despite lower demand

Source: Teck, Wood Mackenzie


Copper Production Expected to Decrease

Existing and Fully Committed Mines

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Thou

sand

Ton

nes

ScrapMine Production Projects

SXEWDemand

Slowing copper production

Mine production peaking as replacement projects delayed

Source: Teck, Wood Mackenzie, CRU, ICSG

Uncommitted Projects Increasingly Delayed

12,000

10,000

8,000

6,000

4,000

2,000

0 2018FLast Year

Base

15%in

Base Case

2018F 2020FToday LastYear

Highly Probable

15% 10%in in

Base BaseCase Case

2020F 2022 2022Today Last Year Today

Probable Possible

Thou

sand

Ton

nes

23


Disruptions Exceeding 5%

20172005 2007 2009 2011 2013 2015 (Mar)

0

-200

-400

2.8%

-600

-8004.1%

-1,000

-1,200

Significant Disruptions in Q1 2017,With Effects Through Q2-Q3 2017

160

140

120

100

80

60

40

20

0

Jan

Feb

Mar Ap

r

May Jun

Jul

Aug

Sep

Oct

Nov

DecTh

ousa

nds

Tonn

es

Mt. Milligan

Grasberg FM

Escondida Strike

Sentinel

Grasberg Export Ban/Strike

Escondida Slow Ramp Up

Constancia

Grasberg Guidance

Los Pelambres

Cerro Verde Strike

Disruptions could total >625kmt

Source: Teck, Wood Mackenzie, CRU, ICSG

Copper mine production – DisruptionsTh

ousa

nds

Tonn

es

24


Seasonal SHFE stocks drawn down

July 2014-2017 Copper Stocks

corporate presentation - abacus mining & exploration corp. · abacus mining and exploration...

Documents