Sep 20, 2017 - open pit mine with two gold recovery plants processing ore from ... Bilingual (English/Spanish) mining en
(TSXV - “PBR”) (WKN – “A14YF1”) (OTC – “PRSRF”)
Legal disclaimer and statement by qualified persons Some statements herein contain forward-looking information. These statements include, but are not limited to, statements with respect to the expected benefits from having a management team seeking to aggressively grow the Company into a mid tier gold producer through acquisitions and development of existing assets, the proposed dividends and the development potential and production estimates of the Company's properties. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors and assumptions include, among others, the effects of general economic conditions; the price of gold, silver, copper and other metals; projected capital and operating costs, estimated metal recoveries and mine life and production rates at El Limon; changing foreign exchange rates, actions by government authorities; uncertainties associated with legal proceedings and negotiations and misjudgements in the course of preparing forward-looking information. In addition, there are known and unknown risk factors which could cause the Company’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with the ability to obtain any necessary approvals, waivers, consents and other requirements necessary or desirable to permit or facilitate the development of the Company’s properties; the risk that any applicable conditions of the acquisition of an interest may not be satisfied; risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters of the Company with certain other projects; currency fluctuations; competition; dilution; the volatility of the Company’s common share price and volume; tax consequences; and other risks and uncertainties. Certain figures provided, including “free cash flow” are non-GAAP measures that do not have standardized meaning and may not be comparable to the same term used by other issuers. Readers should consider Para Resources’ financial statements in their entirety. Forwardlooking statements are made based on management's reasonable beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Information included from third-party publications is believed to be accurate, but there are no assurances as to the accuracy or completeness of the data. Each recipient of this document accepts that no representation or warranty is made concerning the information herein nor is any liability accepted in respect thereof by Para Resources, or any other shareholder (present or future), or Director, Officer, advisor, or by any of their respective affiliates. The content herein is subject to copyright. Content and slides from this presentation are not allowed to be copied or distributed otherwise, without the written consent of the Company. Mr. Paulo Andrade, P. Geo., qualified person under National Instrument 43-101, VP & Country Manager for Para Resources Inc., has reviewed and approved the scientific and technical information in this presentation pertaining to the Angelim Property, Brazil. Mr. James R Guilinger SEG MMSA SME is a qualified person under NI 43-101 and is the author of Technical Report on the Gold Road Mine, NI 43-101 Technical Report.
PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Executive summary
Para Resources Inc. (“Para”), (TSXV:PBR) (WKN – “A14YF1”) (OTC – “PRSRF”) is an emerging gold mining company with mining operations in Zaragoza, Colombia and in Oatman, Arizona.
Para’s strategy is to develop or acquire existing small scale mining operations (15-50,000 ounces per year) where cash flow from these operations can be used to finance an exploration program without having to seek additional financing from shareholders or investors.
Strategy is to identify, acquire and build or rehabilitate existing mine and milling operations with large contiguous holdings of mineral rights in areas of interesting and under explored geology. The company focuses on regions of good prospective geology as evidenced by the presence of small miners or other historic mines on the Company’s property.
Proven Management team who have collectively invested > US $13 million of their own money and have expertise in business, financing, geology, mine engineering, metallurgy and a proven background of building, operating and selling gold mines.
Management has delivered the following: 1. Acquired a 78% interest in the El Limon Mine in late 2015, invested USD $7 million and is in final commissioning of a refurbished 225 TPD mining and milling operation in Zaragosa, Colombia. Ownership will increase to over 85% due to investment. Commissioning is scheduled to be completed by Q4 2017 2. Acquired the Gold Road Mine in Northwestern Arizona where more than 700,000 ounces have been produced. Also secured leases and agreements with owners of adjacent mineral rights where there are extensive un-explored areas surrounding the Gold Road properties. More than 2.1 million ounces have been produced from these properties since 1903. The Gold Road mine itself has many years of resource remaining that will be quantified in an NI 43-101 Resource Estimate to be published in Q1 2018. In addition to the areas that have been developed for mining and where production drilling and channel samples have been taken, the deposit is open at depth.
PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Proven management team Geoff Hampson CEO
Randy Martin COO of Para Resources, CEO & Chairman of Colombia Milling Limited
Seasoned entrepreneur, 35 yrs of mining, oil and gas, manufacturing & internet infrastructure experience
Well connected international executive
Founded and financed multiple private and public companies since 1979
Founder of Hampson Equities, a PE firm with investments in North & South America CEO and founder of Fibrox Technology Ltd., since 1995, former CEO of Peer 1 Network which was sold for USD $565 mm, founder of Corelink Data Centers, LLC, Chairman of Pacific Rodera Energy, Chairman of Eagle Mountain Gold (now TSXV:GXS operating mine in Guyana) founder and Chairman of Infracon, a mine services and contract miner firm in Canada
Mining engineer and expert in Custom Milling and Mining
Developed Hemco Mineria Responsible del Siglo XXI in Nicaragua, a 1,200 TPD underground and open pit mine with two gold recovery plants processing ore from legal artisanal miners (90% sold to Mineros SA for USD $ 96.8 mm)
Constructed and operated the Santa Rosa open pit gold mine in Panama, the La Libertad open pit and underground gold mine in Nicaragua and the San Andres open pit gold mine in Honduras
Ian Harris President of Para Resources
Bilingual (English/Spanish) mining engineer with 20+ yrs of experience in the industry including 10+ years with companies such as Asarco LLC, Corriente Resources, AEP & Washington Group Int'l
CEO of AMAK Mining, the first operating private mining company in the Kingdom of Saudi Arabia. Successfully led projects in Venezuela, Ecuador and Bolivia
Successfully led a reactivation campaign for Corriente’s mining in Ecuador. Under his leadership Corriente’s mining projects were designated national strategic projects and the first to start and finalize contract negotiation for construction of the first industrial scale mining projects in Ecuador.
His achievements led to the sale of Corriente to Tongling and CRCC (Chinese SOE’s) for USD $690 mm in 2012.
Operated the El Limon underground gold mine in Zaragoza, Colombia in 2000 and constructed and operated a 200 TPD milling gold plant in Nicaragua for small miner cooperatives.
PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Proven management team Paulo J. Andrade VP Exploration and Brazil Country Manager
A Geologist with 27 years of experience in Brazil and South America
Extensive knowledge and experience in managing exploration teams and in identifying new business opportunities. Brought at least two important copper projects for VALE´s portfolio in Peru as well as discovered five lateritic nickel and one iron ore deposits for CODELCO in Brazil
Important participation in the Rio Verde Cu-Au deposit discovery at Carajás Province for BARRICK
James Taylor CPA, CFO of Para Resources, Inc., Colombia Milling Limited and Four Points Mining Ltda.
Roberto Fueyo
A financial professional with over 30 years of experience as a senior officer of numerous emerging technology, manufacturing and resource companies
Operations Manager, Plantel Los Angeles, Metallurgist with 18 years of experience in the operation, design, and commissioning of mineral processing projects
Formerly CFO of Novocon International Inc, Peer 1 Network Inc, Corelink Data Centres LLC, Infracon Energy Services Corp, Fibrox Technology Ltd
Has worked on 5 continents with companies such as Angolgold Ashanti (Chief Metallurgist), Gekk Systems, Goldcorp, Barrick Gold, among others.
Has acted as Director of numerous public companies in Canada and the US
PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Strategy
Identify and acquire small scale mining properties with milling and processing capability in good prospective areas where small scale local miners (historic, legal and illegal) or historic mines are present
Acquire adjacent or nearby mineral rights in order to legally be able to buy mineralized rock from the small miners or reopen historic mines.
Build or acquire a scalable and environmentally responsible milling and processing facility using leaching and dry stacking of tails
Purchase feed material from other local miners or re-start historical mines to reduce variability of mining output
Over time, utilize historical grade from third party purchases and other historical claims to determine which source provides the highest grade material leading Para to invest in increasing production and efficiencies in the locations that provide the best ore.
Use non-dilutive cash flow to fund an on-going exploration program to establish a NI 43-101 Compliant Resource Estimate that may lead to the development of a larger scale mine.
Para is not a Toll Milling Operation. Para buys the mineralized rock that is delivered to the mill site and processes it to recover the gold.
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El Limon (Colombia)
Para has invested USD $ 7.0 mm to upgrade the El Limon mine and processing plant to increase potential throughput to 225 TPD. Para, through a new wholly owned Colombian subsidiary, Zara Holdings S.A.S., has also acquired the adjacent 21,000 Ha of mineral rights
EL Limon will achieve commercial production in Q4 2017
Rehabilitation and increased plant throughput from 50 TPD to 225 TPD includes a new 7 x 7 ball mill which is now installed and operational
Underground mining at El Limon is restricted by the size of the main winch and averages 50-75 TPD at approximately 6.0 – 10.0 g/mt of Au
An additional 150 – 175 TPD of feed material will be sourced from existing mining operations on the Company’s 22,000 Ha which have been formalized under Colombian government policy.
Mine feed from the artisanal miners, which is mined from essentially the same vein system as at El Limon, is expected to be of slightly higher grade as these small miners will ship less waste decreasing dilution. PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Purchasing from artisanal miners at El Limon, Colombia
Small mining strategy has been proven by Management with B2 Mining in Nicaragua and with Hemco Mining
Larger mining companies looking for solutions
El Limon only purchases mineralized rock from small miners working on property where Para owns the mineral rights
For example, our current experience at El Limon indicates the following economics:
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Assuming USD $1,200/ounce and an average grade of 8 gpt Au
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Para pays miner USD $131/MT (50% of Au at 85% recovery)
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Processing costs are USD $60/T
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Para’s total cost is USD $743/ounce
Advantages: •
Government gets royalty
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No mercury pollution
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Small miner is legalized
•
Para hedges mining risk and cost PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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El Limon – Exploration potential In July 2016 Para purchased approximately 21,000 Ha of mineral rights surrounding the El Limon Mine and property
There are several active mines on the OTU property (see map) that have been operating without proper permits. Para is currently in the process of “formalizing” these operations with the support of the Colombian government which includes processing the mineralized rock at El Limon
Colombia Panama Venezuela
El Limon Mine
OTU Property
Bogotá
Over 500 local artisanal miners within a 150 km circle of El Limon are mining suitable feed material with an estimated range of diluted grade between 8-15 gpt of Au
The main structure present in the area is the Otu Fault that crosses the area from North to South. The known vein systems of the region extend up to 2-3 km. Veins dip are typically around 30-40°, and occasionally sub-vertical
Para will conduct an exploration program on the newly acquired properties and on the El Limon property to establish a NI 43-101 resource to justify increasing the size of the processing plant and developing a more robust Area Play
El Limon
Ecuador
Brazil
Peru
* NI-43101 Report dated September 15, 2015 and prepared by Mr. David Bikerman, MAIG, qualified person under National Instrument 43-101, Independent Consultant to Para Resources Inc.. Mr. Bikerman has reviewed and approved the scientific and technical information in this presentation pertaining to the El Limon Property, Colombia.
PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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El Limon historic drill logs
In 1997 and 98 a drilling program on the El Limon property indicated a large mineralized zone close to or at surface. The intersections were significant and not related to the narrow vein system currently being mined at El Limon.
The drilling core is no longer available and these results are not NI 43-101 compliant. In order to fully understand the system and to use those results to develop a compliant resource, Para will twin the historic drill holes in late 2017
An effort is currently underway to locate the core from the 1997-98 drilling program
This type of exploration upside is a key element of Para’s strategy to target areas that are highly prospective, have not been properly explored and are evidenced by the presence of small miners.
“The best place to find a new mine is next to an existing mine” PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Gold Road Mine (Arizona)
In August 2017 Para, through its 88% owned subsidiary Gold Road Mining Corp., completed the acquisition of the Gold Road Mine, located in the historic Oatman Mining District in northwest Arizona
Para acquired the mine, patented claims, a 500 TPD CIP mill and processing facility including all rolling stock, vehicles, laboratory and other assets for US $7 million.
Payment terms were US $1 million at the close with the balance of US $ 6 million in annual payments of US $1 million each, without interest on the next six anniversaries of the close.
Gold Road Mine
Drilled and assayed Open in the resource Produced in 2009-2016 Historic stopes Current development work complete
PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Gold Road
The historic production from the four mines included in the property holdings of Gold Road Mining has been over 2.3 million ounces as follows*:
Gold Road – 750,000 oz. at 0.31 opt
Tom Reed – 568,000 oz. at 0.61 opt
United Eastern – 729,000 oz. at 1.03 opt
United Western – 350,000 oz at 0.63 opt
Deposits in the district are classic volcanic-hosted epithermal gold veins
Mineralization was precipitated along with quartz and calcite as open-space fillings along structures that were active before, during and after the deposition of the mineralization
The deposits have typical characteristics of epithermal deposits throughout the United States, including: Cripple Creek, Midas, Tonopah, Comstock and Sleeper
*Mr. James R Guilinger SEG MMSA SME is a qualified person under NI 43-101 and is the
Gold Road Controlled Property
author of Technical Report on the Gold Road Mine, NI 43-101 Technical Report.
PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Gold Road Mine (Arizona)
The Gold Road mine is located on private land and is a fully permitted underground mine with a 500 ton per day cyanide (CIP) mill
The mill produces gold-silver doré bars that are over 95% precious metal
Historical recovery rates in excess of 92%
The mill is in excellent condition and was last operating in June 2016
Underground workings were open and stable at closure
Full permitting is in place
Engineering and development planning underway with mining expected to resume in Q1 2018 PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Gold Road Mine - Exploration
NI 43-101 Technical Report to establish the current resource will be published in Q1 2018
Mineable area is open at depth and along strike
Para has secured three adjacent patented claims where mining occurred from the early 1900’s through until 1942 when production was halted due to the war effort.
More than 2.1 million ounces have been mined to date with many areas unexplored where the deposit is open on strike and at depth
Significant target in the lost vein to the west which is on-strike to other historic mines
Significant development and exploration opportunities at Gold Road and other adjacent historic mines which have not been drilled
PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Short-term objectives
Achieve Commercial Production at EL Limon Mine which is defined as 85% availability, 85% gold recovery and 75% of design throughput. Expected to be achieved in Q4 2017
Develop mine plan and publish NI 43-101 Technical Report for the Gold Road Mine in Arizona allowing ramp up to 500 TPD and 35-50,000 ounces per year in Q1 2018
Complete drilling program at El Limon to twin the historic drilling program and to begin to build a NI 43-101 resource
Complete sale of Tucuma property in Brazil
PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Share capital Total shares o/s:
137,783,440 (approx. 90 million held by management and insiders)
Warrants o/s:
17,565,133 warrants (3,979,820 @ CAD $0.20 (exp. Dec 2017) and 13,585,313 @ CAD $0.30 (exp. Oct 2018) per share and 6.7 million are held by Insiders)
Options o/s:
5,265,000 (3.9% of o/s shares) (exercisable at between CAD $0.05 to CAD $0.25 per share)
Market cap:
CAD $26 million as at September 20, 2017 Conex Services Inc (Glenn Walsh):
43,632,987 (31.7%)
Lake Forest Dev Corp (Hampson):
20,179,954 shares (14.6%)
Randy Martin:
15,840,190 shares (11.5%)
Public float:
58,130,309 (42.2%)
Major Shareholders:
Financing
Construction at El Limon is fully funded and cash is on hand for the Resource Estimate and PEA for Gold Road PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Summary
Experienced and proven Management Team with history of successful mining and toll milling operations – Management owns 75% of shares and have entered into a Pooling and Lock Up Agreement
Strong and engaged Board of Directors who have invested collectively more than USD $13 mm of their own money and are committed to long term and co-investment
The mining and milling operation El Limon is expected to achieve Commercial Production and generate positive cash flow before the end of 2017
Gold Road Project in Arizona will re-start production in Q4 and will add positive cash flow right in Q1 2018.
Significant exploration upside
Diversified country risk
Low monthly corporate overhead of under USD $200,000 for Arizona, Colombian and head office expenses combined
Para is well on its way to achieving management’s goal of producing over 100,000 oz. of Au per year by 2020
PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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Santander, Colombia
Contact Geoff Hampson Chief Executive Officer +1.312.420.0690
[email protected]
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Board of directors Geoff Hampson , CEO: (see management slide) Randy Martin, COO of Para Resources and CEO and Chairman of Colombia Milling Limited: (see management slide) Ian Harris, President of Para Resources: (see management slide) Ioannis Tsitos, Director: A Geophysicist and Businessman with 19 years experience with BHP Billiton, the last 9 in the position of senior business development manager on minerals exploration with a global reach having worked on exploration deals in 32 countries. Has identified, negotiated and executed in excess of 55 exploration, development and mining agreements and Joint Ventures. Extensive global network (exploration, mining, finance). Mr. Tsitos is presently the President of Gold Source Mines Inc. (TSXV:GXS) Glenn Walsh, Director: Mr. Walsh started his career as an Engineer working for some of the world’s largest engineering and construction companies including Brown and Root and Kiewit. While working for these companies, he was involved in large scale construction projects in the USA, Vietnam, Asia and South America. Over the last 25 years, he has been a founder and investor in over 25 companies, mostly in Western Canada and mostly involved in heavy construction, power generation, contract mining and road building. Walsh was the founder and owner of Tercon Construction Ltd which was the largest Mine contractor in Western Canada. He was a founder and major shareholder in Carmacks Construction Ltd., one of the largest road construction and maintenance companies in Western Canada, which was sold in 2012 to Vinci. He is a major shareholder in Morgan Construction and Environmental Ltd, a specialty contractor focused on the oil patch in Alberta and in Emcon Services, the largest road maintenance company in BC. He is a founder and owner of Minex Construction Ltd. Which merged in 2014 with Infracon Energy Services. Walsh is also involved many other and varied businesses in Canada and the USA including property development and oil and gas. Larry Timlick, Director: Mr. Timlick is CEO of Next Leaf Solutions Ltd, a Vancouver based organic processor. He was formerly, VP Western Canada for Avaya Canada, serves as Director of CounterPath Corporation a leading provider of innovative desktop and mobile VoIP software products and is a is an advisor to and former director of ProSmart Enterprises Inc. (formerly Sora Capital). From September 2006 until December 2008 he served as a director and the Corporate Secretary of Stage Capital Inc. (now known as Trueclaim Exploration Inc.), a former capital pool company that completed its Qualifying Transaction in December 2008.
PARA RESOURCES INC – (TSXV -”PBR”) (WKN – (“A14YF1”) (OTC – “PRSRF”)
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