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High Grade Copper and Gold Project New Drill Targets Identified Close to Copper Mountain Mine

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Page 1: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

High Grade Copper and Gold Project

New Drill Targets Identified

Close to Copper Mountain Mine

Page 2: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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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Page 3: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

MINER MOUNTAIN: High Grade with New Targets

3

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

Page 4: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

• 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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Page 5: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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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Page 6: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

Princeton

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MINER MOUNTAIN: Close to Infrastructure

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Page 7: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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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Page 8: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

MINER MOUNTAIN: Exploration History

Previous Exploration

Granby ZoneRegal

Landslide

Gold-Copper Target

8

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

Page 9: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

MINER MOUNTAIN: Geology and Alteration

Geology and Copper in trenching Alteration

9

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

Page 10: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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

Page 11: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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

11

1000m

N

1000m

N

LegendDrill collar

Copper (ppm) Granby/Cuba Zone

Gold-Copper Target

LegendDrill collar

Gold (ppb)

Page 12: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

NEW TARGETS: Strongly Supported in soils

Molybdenum in soils Zinc in soils

12

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

Page 13: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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(?)

13

1000m

N

1000m

N

Page 14: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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)

Page 15: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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

1

2

Empress ZoneNew Target

Granby/Cuba Zone

RegalLandslide

Exotica Transported

copper(?)

Sovereign ZoneNew Target

Gold-Copper Target

1000m

N

LegendDrill collar

Planned RC holes

3

Page 16: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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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Page 17: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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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Page 18: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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

Page 19: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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

Page 20: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

APPENDIX

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Page 21: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

THE VALUE OF COPPER: Demand shortfall

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Page 22: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

… 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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Page 23: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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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Page 24: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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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Page 25: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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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Page 26: High Grade Copper and Gold Project New Drill Targets ... · working with public mineral exploration companies. Selina Tribe PhD, PGeo, Director - Selina is a Professional Geoscientist

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