may, 2014
DESCRIPTION
May, 2014. DISCLAIMER - PowerPoint PPT PresentationTRANSCRIPT
May, 2014
DISCLAIMER
During the course of this presentation, Strike Minerals Inc. may make forward-looking statements with regard to the Company’s projects and or business plans. Statements may also be made with regard to the company’s business strategy, partners, and market position which could be construed as forward-looking. Forward-looking statements are subject to risks and uncertainties that could cause results to be materially different than expectations. Any statement regarding the potential quantity of mineralization is conceptual in nature, as there may have been insufficient exploration to define a mineral resource on the properties. It is uncertain if further exploration will result in discovery of a mineral resource on the properties. Strike Minerals Inc. seeks safe harbour.
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Edwards ProjectCurrent Requirements
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Fund Requirement $9.0 million
Use of Funds:Waterton Payout $ 3.0
Trade Payables* $ 1.5
Other Obligations** $ 1.2
Working Capital $ 3.3
$9.0 million
*Excludes Whalen $1.5M
**Includes Denis $1.0M out of $2.0M
The Company is seeking a maximum $9.0 million financing facility to place the mine in production although $5-$6 million would be sufficient to start generating cash flow within 4 – 6 months:
Edwards ProjectGoudreau - Lochalsh Gold Belt
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EDWARDS MINEPRODIGY MAGINO PROJECT
PAST PRODUCER
ISLAND GOLD MINEEAGLE RIVER GOLD MINE
Edwards Property
• Production 1996 - 2001 Produced 144,000+ oz Au from underground mining operations on three zones with
an average mill head grade of 0.325 oz/ ton gold Ceased mining in 2001 due to low gold price Lower zones within the Carbonate and Porphyry veins were developed but not
mined.• Strike subsequently completed 41,000+ ft of diamond drilling delineating:
New North zones (I & II) Plowman zones (1,2,3)
• Cross Cut Advance:– Approximately 87.5m on the 60m level and 30.7m on the 90m level. Rusty
Weathered Zone has been intercepted on the 60m level.
Historical Operations
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Edwards Property
• Property permitted for mining• Mine under current suspension due to cash availability• Strike has dewatered to below 120m level (305m is the sump level)• Completed all surface facilities to support underground operations• Access to adequate power for production• Adjacent to Richmont’s Island Gold facility• Strike has developed two zones ready for mining
23.3m on Edwards # 1 vein (25.45 g/t) 24m on Edwards #5 vein (15.14 g/t)
• Surface stockpile:– High grade – 1100 tonnes grading 13 g/t– Low grade – 1800 tonnes grading 2 gpt
Current Status
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Type of Permit Needed Status Description
Mining Lease Yes In Place 21 Years
Water Permit
YesIn Place,
Modifications Needed
Pumping currently suspended
Tailings Facility Approval
No Not Required at this Time
Ore to be processed off site
Sound and Air Quality Permit Yes Application in
Near Future
Company plans to operate in a compliant
manner duringapplication period
Edwards PropertyPermitting
HISTORICAL UNDERGROUND DEVELOPMENT
Edwards PropertyHistorical Mining
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Ramp
Porphyry Zone
Carbonate Zone
Shayne Zone
Edwards PropertyPROJECTION OF NEW ZONES
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Historical Mining Zone
New North l & 2 Zones
Plowman 1, 2 & 3 Zones
Zones Tons Oz Grade (ounces / ton)
New North 1 58,121 18,698 0.322New North 2 38,462 41,827 1.087Plowman 1 46,719 9,725 0.208Plowman 2 67,976 7,265 0.107Plowman 3 30,820 5,542 0.179Sub Total: 242,098 83,057 0.343
Additional Inventory
New North 1 81,463 26,231 0.322New North 2 Not yet completed.
Plowman 1 171,896 26,241 0.15Plowman 2 95,973 17,179 0.179Sub Total: 349,333 69,651 0.199
Total: 591,432 152,703 0.258Previous Mining Zones 47,000 19,560 0.42
New Zones #1 #5 25,000 10,000 0.40GRAND TOTAL 663,432 182,263 0.28
Edwards Property
Inferred Resource Inventory (Non – 43-101)
Potential Resources
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Edwards #1 Zone Ore Inventory (Non- 43-101 compliant)
Block Area (ft²) width (ft) Volume(ft³) Tons Grade(oz/t) Ounces
1 7,040.0 6.5 45,760.0 3,813.3 0.407 1,552.0 2 3,013.0 5.0 15,065.0 1,255.4 0.077 96.7 3 442.5 5.0 2,212.5 184.4 0.069 12.7 4 2,679.5 5.0 13,397.5 1,116.5 0.774 864.1 5 3,208.0 5.1 16,360.8 1,363.4 0.271 369.5 6 4,413.0 5.0 22,065.0 1,838.8 1.996 3,670.1 7 4,050.5 7.9 31,999.0 2,666.6 0.952 2,538.6 8 3,679.0 4.1 15,083.9 1,257.0 1.170 1,470.7
Total 13,495.4 10,574.4 Total oz 10,580.4 Grade 0.784 (uncut)Total oz 4,386.0 Grade 0.325 (Cut)
Edwards PropertyInitial Mining Edwards #1
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23.3 m length averaging 25.45 gpt over 1.5 m mining width
Edwards PropertyEdwards Vein #1
Edwards Vein #5
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24.0 m length averaging 15.14 gpt over 1.5 m mining width
Edwards PropertyEdwards Vein #5
Edwards Property
• High grade zones at depth confirmed by drilling• Additional tonnage from existing zones;• Potential for new zones on property• Mineralization left in old mine zones• Possibe acquisition of the Cline Property in future:
– Potential to double the resource– Development access to Cline is through Edwards
Potential
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Other Drilling:• 2010 drilling: A sulphide-rich quartz vein was
encountered at vertical depth of 220 feet with Visible Gold returning a grade of 21.86 g/ton Au over 0.91 metres (0.641 oz/ton over 3.0’) and stringers within a Felsic Intrusive vertical depth of 260 feet returned a grade of 6.56 g/ton Au over 1.52 metres (0.191 oz/ton over 5.0’)
• This intercept indicates the continuity of an east-west trending shear/alteration zone with gold mineralization over some 2,500 feet from the Edwards property through the Cline property and on to the Pele Mountain gold property
• Hole 88-11 on the Edwards Mine property has intersected a siliceous section with quartz veining that assayed 40.0 g/ton over 0.66 metres (1.326 oz/ton over 2.0 feet) in a zone located near the North boundary of the claims. Additional follow up is required.
Edwards Property
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Edwards Mine
Cline Property
2010 Drilling
Exploration
Hole 88-11
• The current goal is to have the Edwards in initial production based on the following milestones :
– Dewatering completed (286 m level)– Continue drifting on the 60m level and the 90 metre level to
crosscut the New North 1 & 2, Edwards #1, #2, #3, and Rusty Weathered zones
– Conduct initial mining on the Edwards #1 and #5 zones – Continue development of zones at depth– Negotiate a custom milling contract with a nearby producing Gold
project– Possibility of acquisition of the Cline property and buy back
royalty in future
APPENDIX
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Edwards ProjectStrategic Plan and Objectives
• There are two main milling options: external or internal.
• External:
– There are two mills in the area that can be used; the Westdome mill (distance 100km) and the Richmont mill (6km). Expected cost for processing is about $30/tonne and trucking costs of $8-$14/tonne
• Internal:
– A complete 300 tpd mill with cost approximately $3-$4 million. Requires full permitting due to tailings pond. Could take about 1.5 years. Recovery expected to be 95%.
• OR
– Initial installation of a Nelson Concentrator at a cost of approximately $0.8million-$1.5millon. The Nelson Concentrator is designed to recover coarse gold. Tailings will be drained of water with the water recirculated. Recovery expected to be 85%. The tailings will be stored on site and processed once complete mill is operating. Operating costs are expected to be around $16/tonne
APPENDIX
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Edwards ProjectMilling Option
Capital StructureSTK – TSX.V
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Symbol/Exchange: STK/TSX Venture
Shares Outstanding*: 117,439,740
Fully Diluted:** 147,642,011
Share Price (under cease trade order due to financials not completed)*:
$0.01
Market Capitalization: $1.5 million
52 Week High/Low: $0.17/$0.01
Management & Board Ownership: 15%
** Includes Waterton options 14,000,000 and Management Options 8,100,000
Contact Information
KERRY D. SMITH
STK – TSX.V
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