Disclaimer
Corporate Presentation
WEST CACHE GOLD PROJECT ON TREND IN THE TIMMINS CAMP
March 4, 2021
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Disclaimer Cautionary Note Regarding Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements regarding the impact and implications of the updated mineral resource estimate and drill results on the Company, the growth potential and possible economics of the project and the Company’s understanding of the project; the development potential and timetable of the project; the estimation of mineral resources; realization of mineral resource estimates; the timing and amount of estimated future exploration; success of exploration activities. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “continue”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are made based upon certain assumptions and other important facts that, if untrue, could cause the actual results, performances or achievements of Galleon Gold to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Galleon Gold will operate in the future. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, currency fluctuations, the global economic climate, dilution, share price volatility and competition. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Galleon Gold to be materially different from those expressed or implied by such forward-looking statements, Although Galleon Gold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Galleon Gold does not undertake to update any forwardlooking statements, except in accordance with applicable securities laws. This document does not constitute an Offering Memorandum and as such is not intended to solicit funds.
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Investment Highlights WEST CACHE GOLD PROJECT ON TREND IN THE TIMMINS CAMP 13 km West of Timmins, Ontario • NI-43 101 compliant resource estimate (July 1, 2013) • Indicated: 609K oz Au at 2.18 g/t Au • Inferred: 470K oz Au at 2.31 g/t Au • Ongoing Drill Program 38,000 meters to date • Infill drilling with multiple gold vein intercepts • New high grade zone discovery - Zone #9 Neal Gold Project, Idaho
• Commenced permitting initiatives for bulk tonne sample • Baseline studies • Survey for converting mineral claims to lease • Underground ramp design
•
80 % GGO, 20% Eric Sprott
Additional Early Stage Properties • ~35,600 ha across highly prospective mineral districts in Ontario, Quebec, Manitoba and New Brunswick
• Preliminary Economic Assessment (PEA) • Expected for Q2 2021 3
Capital Markets Profile Capital Structure Share price (as of Mar 1, 2021)
C$0.075
Shares outstanding
470.6M
Options outstanding
21.8M1
Warrants outstanding
152.1M2
FD shares outstanding
644.5M
Market capitalization (basic)
C$35.3M
Cash (approx.)
C$4.8M
1. 21.8M options outstanding with exercise prices ranging from C$0.05 to C$0.30 2. 152.1M warrants outstanding with exercise prices ranging from C$0.05 to C$0.12
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Experienced Management and Board R. David Russell President, CEO & Chairman of the Board • Over three decades of executive experience in the mineral exploration and development industry • From 2002 to June 2010, founded and was the President and CEO of Apollo Gold Corporation (acquired by Primero Mining is now owned by First Majestic Silver). Apollo developed the Black Fox Mine (still in production). • Previous positions include VP and COO of Getchell Gold Company/Placer Dome Gold; General Manager, US Operations at LAC Minerals Ltd. (now owned by Barrick); Manager, Underground Mining at Independence Mining Company; Project Manager at Hecla Mining Company; and Manager, Lincoln Project at FMC/Meridian Gold. Board of Directors
Management
Chris Dupont, P.Eng.
Lisa Buchan, VP Corporate Development
Mario Colantonio, P.Eng
Sonia Agustina, CFO
Michael Hobart
Chris Dupont, COO
Thomas Kofman
Ryan Lougheed, General Manager West Cache Gold
Gerhard Merkel
Nate Tewalt, Chief Geologist
Dick Nanna
Leah Page, Senior Project Geologist West Cache Gold
James T. O’Neil Jr. 5
West Cache Gold Project Timmins, Ontario, Canada
Located in the Prolific Timmins Mining Camp • Located 13 km from Timmins, Ontario •
Bisected by Hwy 101 and main powerline
• Excellent regional infrastructure •
Airport, rail and hospital
•
Mining friendly environment
•
Skilled workforce and services
• 7 km East of Pan American Silver/Lakeshore Gold’s West Mine • 14 km West of Newmont’s Hollinger Mine • Signed MOU with the area’s First Nations communities
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West Cache Gold Project
Located in the Porcupine Destor Gold Belt
Stock Mine & Mill / Black Fox
WEST CACHE GOLD PROJECT ON TREND IN THE TIMMINS CAMP
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West Cache Gold Project
Survey Underway to Covert Claims to Lease Status
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West Cache Gold Project Geology and Mineralization • Mesothermal lode gold deposit in the western portion of the Archean Abitibi Greenstone Belt • Mineralization resembles the Hollinger and McIntyre gold mines (located ~15 km east) • Mineralization is characterized by chalcopyrite-pyrite stringers and veins and quartz-tourmaline veins hosted by altered and sheared Quartz-Feldspar Porphyry (QFP) • Drilling indicates that the mineralized shear zones in the QFP extend for 1,975 m along strike and to depths of up to 900 m • Gold occurs in several parallel 70° to 80° north dipping veins within a 750 m wide zone • Over 500 core holes drilled for appr. 185,000 meters of core • Mineralized intercepts range from 1-18 m with an average width of 3.5 m 9
West Cache Gold Project Plan Map 2020-2021 Drilling
• 38,000 m completed to date in 2020-2021 – drilling ongoing • 177 holes and counting
EAST PIT GAP
Zone #9 High-Grade Shoot
West Wing
ZONE #9
WEST PIT
200 meters
East Wing
10
N
West Cache Gold Project Structured Drill Program
ZONE #9
WEST PIT
GAP
EAST PIT
N
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West Cache Gold Project
Target Drilling and Blue Sky Potential Zone #9
West Pit
Gap
East Pit
EAST PIT
N Zone #9 High-Grade Shoot
EST PIT
West Deep
No HistoricZONE Drilling South of #9 Zone #9
Modelled 2013 Shears N(Pink)
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West Cache Gold Project
Infill drill sample results - East Pit Drilling confirming and infilling mineable open pit structures East Pit Drillhole Intercepts HOLE-ID From (m) To (m) Length (m) WC-20-001 63.0 64.5 1.5 82.5 84.0 1.5 106.0 114.0 8.0 WC-20-002 120.0 129.0 9.0 WC-20-003 90.7 94.5 3.8 152.0 153.0 1.0 191.3 192.0 0.7 WC-20-004 59.0 60.0 1.0 WC-20-005 84.4 90.0 5.6 174.0 187.5 13.5 including 174.0 175.5 1.5 WC-20-006 93.0 95.5 2.5 WC-20-007 129.0 130.0 1.0 WC-20-007 134.5 135.5 1.0 WC-20-007 165.0 167.0 2.0 WC-20-008 97.5 100.5 3.0 WC-20-008 133.5 135.0 1.5 WC-20-010 70.5 72.0 1.5
East Pit Area Drillhole Intercepts HOLE-ID From (m) To (m) Length (m) Au-(g/t) WC-20-058 244.5 246.0 1.5 9.82 WC-20-061 174.0 174.7 0.7 5.05 WC-20-061 174.7 176.0 1.3 1.03 WC-20-061 209.5 211.0 1.5 9.98 WC-20-061 211.0 212.0 1.0 2.78 WC-20-065 103.5 105.0 1.5 7.33 WC-20-065 244.5 246.0 1.5 5.22 WC-20-065 270.0 271.0 1.0 5.94 WC-20-065 271.0 272.0 1.0 1.12 WC-20-066 409.5 411.0 1.5 6.68 WC-20-067 130.0 131.0 1.0 7.90 WC-20-068 175.0 176.0 1.0 7.40 WC-20-068 315.0 316.0 1.0 7.20 WC-20-068 322.0 323.0 1.0 9.20 WC-20-069 252.0 253.5 1.5 9.82 WC-20-070 216.0 217.0 1.0 13.60 WC-20-071 174.0 175.5 1.5 12.60 WC-20-073 85.5 87.4 1.9 0.38 WC-20-073 87.4 88.3 0.9 7.21 WC-20-073 235.5 236.5 1.0 27.00 WC-20-091 119.0 120.5 1.5 14.00 True thickness estimated at 93%
Au (g/t) 3.69 2.18 1.07 1.58 1.79 7.23 5.54 2.45 2.34 1.69 8.05 2.66 2.36 14.70 3.56 1.22 3.17 3.03
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West Cache Gold Project
Infill drill sample results - West Pit West Pit Area Drillhole Intercepts
Hole ID From (m) To (m) Length (m) Au (g/t) WC-20-014 72.0 75.0 3.0 10.39 including 72.0 73.5 1.5 18.80 WC-20-014 141.0 142.5 1.5 1.93 WC-20-015 105.0 106.5 1.5 2.39 WC-20-015 123.9 125.4 1.5 5.89 WC-20-017 53.2 56.2 3.0 9.06 including 53.2 54.0 0.8 31.40 WC-20-017 64.5 66.0 1.5 3.29 WC-20-020 30.0 34.5 4.5 3.42 including 31.0 33.0 2.0 7.11 WC-20-021 19.5 21.0 1.5 2.16 WC-20-021 33.0 40.5 7.5 2.47 including 34.5 37.5 3.0 5.10 WC-20-022 171.0 172.0 1.0 12.00 WC-20-024 36.0 40.5 4.5 1.28 WC-20-024 55.5 62.5 7.0 2.40 including 58.5 60.0 1.5 4.26 WC-20-025 54.0 55.5 1.5 9.92 WC-20-030 234.0 243.7 9.7 7.16 including 234.0 237.0 3.0 14.75 WC-20-042 237.0 247.7 10.7 7.44 including 244.8 247.7 2.9 10.19 True thickness estimated at 93% (except hole 002 at 61% and hole 22 at 77%)
Drilling confirming and infilling mineable open pit structures
WC-20-30 – Zone #9 Discovery Hole WC-20-42 – Confirmation Hole
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West Cache Gold Project
125E
075E
High Grade Zone #9 Discovery – Plan Map
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West Cache Gold Project Drilling Cross Sections – Zone #9
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West Cache Gold Project Drilling Cross Sections – Zone #9
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West Cache Gold Project
Target Drilling and Blue Sky Potential West Pit
East Pit
N
Modelled 2013 Shears (Pink)
Zone #9 High-Grade Shoot
Zone #9
Discovered in 2020
1 km
West Deep
ZONE #9
Discovered in 2010
TPW-10-30: 9.2 g/t Au / 11m TPW-11-46W1: 8.13 g/t Au / 15.3 m
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WC-20-82: 9.4 g/t Au / 10.0 m WC-20-81: 8.68 g/t Au / 10.0 m WC-21-115: 11.25 g/t Au / 6.0 m + multiple other high-gradeN hits
West Cache Gold Project
Target Drilling and Blue Sky Potential Long Section - Looking to the East East Pit
West Pit N
EST PIT
Zone #9
1 km
Discovered in 2020
WC-20-82: 9.4 g/t Au / 10.0 m WC-20-81: 8.68 g/t Au / 10.0 m WC-21-115: 11.25 g/t Au / 6.0 m + multiple other high-grade hits
West Deep
Discovered in 2010 ZONE #9
TPW-10-30: 9.2 g/t Au / 11m TPW-11-46W1: 8.13 g/t Au / 15.3 m
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N
West Cache Gold Project Zone #9 – Cross section
Hole WC 20-30 at 234 m to 243.7 m (7.16 g/t)
Zone #9
Hole WC 20-42 at 237 to 247.7 m (7.44 g/t)
Hole TPW 10-30 at 726 m to 737 m (9.21 g/t)
West Deep
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West Cache Gold Project High-Grade Gold Zones at Depth High-Grade Historical Drill Results at Depth Drill Hole TPW-10-09 TPW-10-21 TPW-10-23 TPW-10-30 including TPW-11-43W4 TPW-11-46W1 TPW-11-46W2 TPW-11-54 TPW-11-60 TPW-12-62W3 TPW-12-62W1 TPW-12-73W5
From (m)
To (m)
679.5 489.5 220.0 726.0 730.0 762.0 877.5 889.0 443.0 333.4 787.5 847.5 841.3
690.65 494.0 224.0 737.0 734.1 769.5 892.8 909.0 454.0 341.2 801.0 862.2 874.5
Width (m) 11.15 5.50 4.00 11.00 4.10 7.50 15.30 20.00 11.00 7.80 13.50 14.70 33.20
Gold (g/tonne) 5.38 8.45 30.56 9.21 23.69 9.41 8.12 4.07 4.88 114.76 7.36 6.70 7.65
Hole TPW 10-30 at 726 m to 737 m (9.21 g/t)
Hole WC 20-30 at 234 m to 243.7 m (7.16 g/t)
• Hole WC-20-30 is 550 meters up-dip of the 2010 West Deep discovery hole TPW-10-30 • Drilling underway to determine continuity of Zone # 9.
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West Cache Gold Project
Zone #9 Plan Map – Current focus of drilling Drilling along Zone #9 and beyond – “Nothing but blue sky”
West Deep
West Wing
East Wing Zone #9 South
West Cache Gold Project
Visible Gold – encountered in West Wing Assays Pending
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West Cache Gold Project
Mineralization encountered in East Wing West Cache Property WC-21-168
Assays Pending
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West Cache Gold Project
Mineralization encountered in South
West Cache Property WC-21-161
Assays Pending
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West Cache Gold Project
Key Milestones to Reach Bulk Sample
• •
Land Perimeter survey • Mining claims converted • to lease status •
Permitting Activities Baseline studies • Mine Closure Plan development • Underground ramp design •
2021
•
Preliminary Economic Assessment Permitting Updated mineral resource incorporating over 175 new holes (+ 40,000 m)
2022
• • • •
Ongoing Aggressive exploration program First Nations consultations Baseline and environmental studies Permitting for open pits 26
Bulk Sample Underground ramp construction Mine Closure Plan accepted Bulk sample delivered to custom mill
2023
Prefeasibility studies • Ongoing activities
Comparable Company Analysis • Galleon trades at an EV/resource multiple of C$35/oz AuEq, which is a 38% discount to the weighted average of Canadian gold exploration companies (C$57/oz AuEq) • Analysis does not attribute any value for Galleon’s Neal Gold Project in Idaho, U.S.
Phase EV/Resource Multiples of Gold Exploration Companies with Key Projects in Canada (C$/oz AuEq)1
$14
$12
$10
$10
$9
Golden Predator
Sirios
ATAC
Genesis
$14 1911 Gold
$13
$15 Gatling
Falco
$15 O3 Mining
Troilus
$18
$15
$20 Moneta Porcupine
Granada
$21 Nighthawk
Rockhaven
$24 First Mining
$30 Maple
$30
$32 Mistango
$25
$32 Blue Star
Renforth
$33 Maritime
Average = C$57
West Red Lake
$35
$42 Red Pine
$33
$47 Bonterra
Gowest
$48 White
Galleon
$50
$49
$51 Probe
Landore
$54 Gold Terra
Matador
$55 Treasury
$87 Sabina
$98
$97 Ascot
Northern Superior
$101 Orefinders
$108 Galway
$129 Radisson
Phase
3
$132
$133
Skeena
2
Marathon
$139
Phase
Osisko Mining
QMX
Benz
Wallbridge
Battle North
$154
$259
$260
$321
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1. Gold equivalent resources calculated using spot metal prices as of February 1, 2021 of US$1,856/oz Au, US$28.99/oz Ag, US$3.56/lb Cu, US$1.16/lb Zn, US$0.92/lb Pb, US$2,239/oz Pd and US$1,129/oz Pt Note: as of February 1, 2021 Source: company reports and Capital IQ
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Reasons to Invest Premier mining jurisdiction – Timmins Mining Camp Aggressive drill program underway - continues to define gold Preliminary Economic Assessment Q2 2021 / Updated Resource Financial support with Eric Sprott – including partnership on Idaho Project Proven and experienced management with history of developing mines in the region
David Russell, CEO & President info@galleongold.com 416-644-0066