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High Grade Copper and Gold Project
New Drill Targets Identified
Close to Copper Mountain Mine
CAUTIONARY DISCLAIMER: FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations for future performance, are “forward-looking statements.”
We caution you that such “forward-looking statements” involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company’s filings with Canadian and American Securities regulatory agencies.
Resource and production goals and forecasts may be based on data insufficient to support them. Dr. Selina Tribe is the Qualified Person for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements.
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MINER MOUNTAIN: High Grade with New Targets
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0.95% Copper and 0.55 g/t Gold over 100 metres in
hole DDH 12-21
GRADEPervasive alteration over
2,500 metres by 2,000 metres open under till blanket
SIZE
15 kilometres north of the operating Copper Mountain
Mine in British Columbia(CuMtn/Mitsubishi)
LOCATIONA ~500 x 600m geochemical
anomaly with a magnetic high presents a compelling drill
target
POTENTIAL
• 8 currently operating porphyry copper mines
• Strong Governmental support for responsible resource development
• Endowed with over 1,000 kilometres of Cu-Au porphyry prospective geology
• 8 new copper-gold porphyry discoveries since 2006
Red Chris
Mt. Milligan
Mt. Polley
New Afton
Vancouver
Sego’sMiner
Mountain
BRITISH COLUMBIA: A Proven Jurisdiction
Highland Valley
Huckleberry
Gibraltar
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SOUTHERN BC: A Porphyry Superhighway
• Copper majors at work in the belt since 2009 include;
• Teck Resources• Xstrata Copper• KHGM Polska• Kaizen Discovery
(Robert Friedland)• Mitsubishi Materials• Antofagasta Minerals
• New Afton, Highland Valley and Copper Mountain (Ingerbelle) all contain or contained prior to mining high grade copper resources
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Princeton
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MINER MOUNTAIN: Close to Infrastructure
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Copper Mountain Mine
Sego Resources drilling at Miner Mountain
MINER MOUNTAIN: Close to Infrastructure
• The hurdle for an economic discovery is lower due to short trucking distance
Reserves (2018) 133 Million Tonnes at 0.35% Cu and 0.12 g/t AuResources (2018) 244 Million Tonnes at 0.33% Cu and 0.11 g/t Au (M+I)
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MINER MOUNTAIN: Exploration History
Previous Exploration
Granby ZoneRegal
Landslide
Gold-Copper Target
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1000m
N
LegendDrill collar
Copper in trench(ppm)
Cuba Zone
• Copper discovered in Regal Landslide area in 1908 whilst mining for coal
• Granby Consolidated Mining discovered the Granby zone in the 1950’s
• Sego options property in 2007 and drilling defines mineralisation in the Cuba zone including;
- DDH 12-21: 100 m of 0.95% Cu and 0.55 g/t Au
- DDH 08-4: 52.47 m of 0.41% Cu and 0.12 g/t Au
• Systematic mapping, trenching, soils, magnetics and induced polarization surveys reveal new drill targets
MINER MOUNTAIN: Geology and Alteration
Geology and Copper in trenching Alteration
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1000m
N
1000m
NLegend
Alteration
K-Feldspar
Magnetite
Epidote
Chlorite
Other
Hematite TillCover
TillCover
Granby Zone
Cuba Zone
Gold-Copper Target
Regal Landslide
LegendCopper in trench (ppm)
Geology
Porphyry intrusion
Diorite
Andesite flows
Tuff
Inner propylitic
Inner propylitic
PotassicInner
propylitic
Potassic
Inner propylitic
Inner propylitic
Argillic
Argillic
MINER MOUNTAIN: Mineralization and Alteration
Mineralization Alteration
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Banded Bornite and Chalcopyrite, in stockwork (DDH 16)
Potassic Alteration: K-Spar, Magnetite and disseminated chalcopyrite mineralization (Thin section)
Chalcopyrite paint vein overprinting Chlorite/Albite alteration (DDH 21)
Argillic Alteration:Kaolinite/Illite, Gypsum, Carbonate and Pyrite(Thin section)
Bornite
Chalcopyrite
Chalcopyrite
NEW TARGETS: Strongly Supported in Soils
Copper in soils Gold in soils
Empress ZoneNew Target
Granby/Cuba Zone
RegalLandslide
Exotica Transported
copper(?)
Sovereign ZoneNew Target
Gold-Copper Target
Empress ZoneNew TargetRegal
Landslide
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1000m
N
1000m
N
LegendDrill collar
Copper (ppm) Granby/Cuba Zone
Gold-Copper Target
LegendDrill collar
Gold (ppb)
NEW TARGETS: Strongly Supported in soils
Molybdenum in soils Zinc in soils
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Empress ZoneNew Target
Granby/Cuba Zone
RegalLandslide
Sovereign ZoneNew Target
Gold-Copper Target
Empress ZoneNew TargetRegal
Landslide
1000m
N
1000m
N
LegendDrill collar
Molybdenum (ppm) Granby/Cuba Zone
LegendDrill collar
Zinc (ppm)
Sovereign ZoneNew Target
NEW TARGETS: Coincident Magnetic Anomalies
Copper in soils Airborne Magnetic Survey (RTP)
Empress ZoneNew Target
Granby/Cuba Zone
RegalLandslide
Exotica Transported
copper(?)
Sovereign ZoneNew Target
Gold-Copper Target
Empress ZoneBullseye
magnetic highs
Granby/Cuba Zone
RegalLandslide
Gold-Copper Target
Sovereign ZoneIn Magnetic low
Exotica Transported
copper(?)
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1000m
N
1000m
N
NEW TARGETS: Empress Zone – Drill Ready
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• Granby and Cuba zones are hosted in volcanic rocks and the source has not been found
• Empress Zone has a classic alkalic porphyry footprint with a Cu, Au, Mo, Ag, Zn Mn and Fe in soil anomaly
• Local bullseye magnetic highs and a central low
• 2019 trenching interested- Trench 103: 18 m of 0.96% Cu and .31 g/t Au
• A compelling target that is ready to diamond drill
250m
N
Empress ZoneNew Target Trench 103:
18m grading 0.96% Cu and 0.31g/t Au
(open to the south)
DDH 12-21:100 m of 0.95% Cu and 0.55 g/t Au
PDH 136:42 m of 0.26% Cu
and 0.11 g/t Au (open at depth)
DDH 08-4:52.47 m of 0.45% Cu
and 0.22 g/t Au
Untestedmag high
LegendCopper in trenches (ppm)
Copper in soils (ppm)
Drill collar
Image is Reduced to Pole (RTP) magnetics draped over project orthophoto
Cuba Zone
Granby Zone
Airborne Magnetic Survey (RTP)
NEW TARGETS: Proposed Program
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Planned RC drilhole locationsPhase 1 Program• ~40-60 shallow RC holes through till cover
systematically testing masked areas
• Estimated 500-750m of drilling based on 5-15m till depths
• Continue holes when in mineralization
• Estimated ~$515,000
Phase 2 Program• ~2,000 metres of diamond drilling at;
1) Empress, 2) Gold-Copper Zone and 3) Sovereign targets
• Plan to commence in January 2020
• Estimated ~$635,000
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2
Empress ZoneNew Target
Granby/Cuba Zone
RegalLandslide
Exotica Transported
copper(?)
Sovereign ZoneNew Target
Gold-Copper Target
1000m
N
LegendDrill collar
Planned RC holes
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Current Stock Information October 9, 2019
Trading symbol:Stock Exchange:Shares Outstanding:Potential Dilution:
10c Options5c Agent Options
10c Warrants (2020/2022)
Recent share price:Market Capitalization:
Note: Totals may not sum due to rounding
SEGO RESOURCES: Company Snapshot
G&A burn rate of $15,000 per
month
PrudentSG ZTSX Venture106.3 million31.7 million
8.3 million0.5 million
22.8 million
C$0.04 shareC$ 4.25 million
70% of all money raised
spent on exploration
Efficient
$4.6 million spent on the
property
Focused
Insiders own 26% of the company
Committed
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J. Paul Stevenson, CEO, Director - J. Paul has been active continuously in mineral exploration and development for over 50 years with a strong focus on Porphyry Copper. In 1995 he became CEO of Pacific Booker Minerals Inc., which reached a market capitalization of over US$350,000,000 after taking the Morrison Project to Preliminary Economic Assessment. J. Paul is a Community Elder of the Vancouver Métis Community Association.
Brent Petterson, CPA, CFO, Director - Brent is a Chartered Professional Accountant with extensive experience working with public mineral exploration companies.
Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist with over 20 years experience in mineral exploration and resource development. She served with Pacific Booker Minerals from 2008 to 2011 and was instrumental in advancing the Morrison Project through environmental assessment. She is a Qualified Person under NI 43-101, and a registered member of Engineers & Geoscientists BC since 1999.
James Allan Hilton, Director - Al has been active in mineral exploration and public markets for 40 years. He served as Director of Pacific Booker Minerals Ltd. from 1993 to 1995. He is credited with the discovery of the Samatosum Mine, a past-producing silver mine located near Adams Lake, BC. _____________
Charles Funk, Advisor - Charles has over thirteen years of industry experience and is currently the Vice President of Exploration of Vizsla Resources. Previously, Charles worked as Vice President of New Opportunities and Exploration at Evrim Resources where he led the exploration of the Axe and Ball Creek alkalic porphyry projects in British Columbia. Prior to that he worked as a geologist and geophysicist for Newcrest Mining and Oxiana/OZ Minerals with a focus on business development and early stage exploration in North and South America, Australia and South-East Asia.
SEGO RESOURCES: Selected Board and Management
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A Compelling Copper and Gold project
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0.95% Copper and 0.55 g/t Gold over 100 metres in
hole DDH 12-21
GRADEPervasive alteration over
2,500 metres by 2,000m open under till blanket
SIZE
15 kilometres north of the operating Copper Mountain
Mine in British Columbia(CuMtn/Mitsubishi)
LOCATIONA ~500 x 600m geochemical
anomaly with a magnetic high is a compelling drill target
POTENTIAL
Sego Resources Inc.Suite 310 - 744 West Hastings StreetVancouver, British ColumbiaCanada V6C 1A5
For more information contact:
Mr. J. Paul Stevenson Mr. Jean-Pierre ColinCEO/Director DirectorPh: (604) 682-2933 Ph: (416) 573-4300
Email: [email protected]: www.segoresources.com
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SEGO RESOURCES: Contact Details
APPENDIX
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THE VALUE OF COPPER: Demand shortfall
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… and historically low rates of discovery andreserve replacement, despite increasedexploration spending.
“Prepare for a decade of Dr. Copper on steroids,”(Max Layton and Tracy Liao, Citigroup, July 17, 2018Research Note)
THE VALUE OF COPPER: Discovery shortfall
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2017• Pubco acquisition Cloncurry, Australia; 287 M tonnes of 0.6% Cu - Copper Mountain to acquire $93 million
• Acquisition of 50% Cerro Casale, Chile; 1,500 M tonnes of 0.22-.12% Cu, 0.6-0.35 g/t Au - Goldcorp acquiers 50% >$500 million
• Pubco acquisition Caspiche, Chile; 1,400 M tonnes of 0.19% Cu, 0.51g/t Au - Goldcorp acquiers 100% of Exeter $247 million
2018• Asset acquisition Peschanka, Russia; 1,400 M tonnes of 0.51% Cu, 0.03% Mo, 0.3 g/t Au - Kaz Minerals acquires for $900 million
• Acquisition of minority interest Quellaveco, Peru; 974 M tonnes of 0.65% Cu, 0.021% Mo - Mitsubishi acquires additional 21.9% $600 million
• Asset acquisition Cerro Colorado, Chile; n.a. - EMR Cap buys mine from BHP $230 million
• Acquisition of minority interest Quebrada Blanca, Chile; n.a. - Teck ups stake by 13.5% to 90% $162 million
• Acquisition of 51% Pulang, Xuejiping; 1,229 M tonnes of 0.34% Cu, 0.01 % Mo. 0.18g/t Au - Yunnan Copper acquires 51% for $227 million
• Government auction Michiquillay, Peru; 1,100 M tonnes of 0.63% Cu, 0.022 g/t Au - Gov. auction, Southern Copper to acquire $400 million
• Pubco acquisition Timok, Serbia; 1,800 M tonnes of .86 % Cu, .18 g/t Au - Zinjin buys Nevsun for $1,800 million
• Government auction Bor, Serbia; n.a. of 0.84% Cu, .39 g/t Au - Zinjin buys 65% of Bor Complex for $1,460 million
• Acquisition of 51% stake Grasberg, Indonesia; PPG Inalum buys Freeport's and Rio's 51% for $3,850 million
2019• Acquisition of a 70% stake Red Chris, British Columbia, Canada; Newcrest buys 70% from Imperials Metals for $806 million
THE VALUE OF COPPER: 2017-19 M&A
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RESERVES, RESOURCES AND PRODUCTION HISTORY
Current Reserves P+P (2018)133 Million Tonnes at 0.35% Cu, 0.12 g/t Au and 1.47 g/t Ag Current Resources (2018)244 Million Tonnes 0.33% Cu, 0.11 g/t Au and 1.36 g/t Ag (M+I) at 0.18 % Cu Cut Off294 Million Tonnes 0.28% Cu, 0.12 g/t Au and 1.13 g/t Ag (Inf) at 0.18% Cu Cut OffPast Production (1925-1997)1925 -1957 31.5 Million Tonnes of 0.88 % Cu, 0.15 g/t Au and 4.33 g/t Ag 1970 -1996 369 Million Tonnes of 0.43% Cu, 0.11 g/t Au and 1.73 g/t AgCurrent Production (2011 - Present )112 Million Tonnes of 0.34% Cu, 0.09 g/t Au and 1.17 g/t AgCopper Mountain and Mitsubishi Agreement- Mitsubishi has Off-take Agreements for Copper Mountain Mine - In 2008 Mitsubishi paid $28.75 Million for 25% of Similco (100% owner of deposit)
Current Production + Current Resources + Past Production (including Ingerbelle) - 1.05 Billion Tonne Deposit (And Still Growing - 25 year+ Mine Life)
Data sources from Copper Mountain Website (March 2018), and BC Minfile reports
COPPER MOUNTAIN MINE
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The Alteration and Metallogeny of Alkalic Porphyry Cu – Au deposits is zoned outward from the core, from a high temperature -lowsulphidation environment to a cooler more sulphur rich environment. The metals go from a copper-gold rich core to a disseminated Au-Ag /Zn-Pb environment. Likewise alteration minerals go from high temperature orthoclase-magnetite-biotite through albite (with occasional hematite dusting)-actinolite to cooler epidote-chlorite-calcite assemblages.
Deposit Model for Alkalic Porphyry Deposits
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Sego Resources Inc.Tables of Warrants and Options
Options Outstanding
Number Exercise Price If exercised value Expiry Date8,335,000 $0.10 $833,000 April 16, 2023
Warrants Outstanding
Number Exercise Price If exercised value Expiry Date2,925,000 $0.10 $292,500 June 15, 20208,440,200 $0.10 $844,020 June 15, 20223,500,000 $0.10 $350,000 August 15, 20203,050,000 $0.10 $305,000 August 15, 2022
710,000 $0.10 $ 71,000 August 31, 20204,239,800 $0.10 $423,980 August 31, 2022
Agent’s Options
Number Exercise Price If exercised value Expiry Date243,600 $0.05 $12,180 June 15,2020193,900 $0.05 $9,695 August 15, 202091,350 $0.05 $4,568 August 31, 2020
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SEGO RESOURCES: Options and Warrants