LUMINA GOLD CORP PRESENTATION...on forward-looking statements. These forward-looking statements are...
Transcript of LUMINA GOLD CORP PRESENTATION...on forward-looking statements. These forward-looking statements are...
ADVANCING GOLD-COPPER EXPLORATION IN ECUADOR
CondorCangrejos
T S X . V : LUMUS OTC : LUMAF
JULY 2018
TSX-V: LUM | 2
Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding suchfuture events and anticipated performance. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “isexpected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “believes”, or variations of such words and phrases or statements that certainactions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”, or the negative of these words or comparable terminology. Bytheir very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of theCompany to be materially different from any anticipated performance expressed or implied by the forward-looking statements.
Important factors that could cause actual results to differ from these forward-looking statements include risks related to failure to define mineral resources, convertingestimated mineral resources to reserves, the grade and recovery of ore which is mined varying from estimates, future prices of gold and other commodities, capital andoperating costs varying significantly from estimates, political risks arising from operating in Ecuador, uncertainties relating to the availability and costs and availability offinancing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects,conclusions of economic evaluations, changes in project parameters as plans continue to be refined, uninsured risks and other risks involved in the mineral explorationand development industry.
Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward-lookingstatements, there may be other factors that cause its performance not to be as anticipated. There can be no assurance that forward-looking statements will prove tobe accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue relianceon forward-looking statements. These forward-looking statements are made as of the date of this presentation and the Company does not intend, and does notassume any obligation, to update these forward-looking statements.
FORWARD LOOKING STATEMENT
† Qualified Persons (“QP”) as defined by National Instrument 43-101 (NI 43-101)
Rob Sim, P.Geo., is the QP responsible for the Cangrejos and Condor mineral resource.
Leo Hathaway, P.Geo., and Senior Vice President for Lumina Gold Corp, is a QP and has verified the data disclosed in this presentation, including sampling, analytical, and testdata underlying the information disclosure.
TSX-V: LUM | 3
▪ 1.4 Moz Au Indicated and 2.5 Moz Au Inferred
▪ 43 Mlb Cu Indicated and 260 Mlb Cu Inferred
▪ Exploration on multiple zones planned for 2018
LUMINA GOLD – INVESTMENT HIGHLIGHTS
Cangrejos
Condor
Early Stage
Concessions
▪ 16 year mine life; average payable production of 373 koz gold and 43 Mlbs copper
▪ Post-tax NPV5% of US$876 million; post-tax IRR of 14.4% at US$1,300/oz
▪ 8.5 Moz Au and 1.0 Blbs Cu Inferred
▪ Continuing current infill, step-out and depth extension drilling program to further delineate open areas to the south, north, west and at depth
▪ Earn-in agreements with First Quantum and Anglo American
▪ First Quantum – US$38.5M over 5-years to earn-in on Orquideas and Cascas
▪ Anglo American – US$57.3M over 7-years to earn-in on Pegasus A&B concessions
▪ Lumina Gold is currently the second largest concession holder within Ecuador
▪ Control a total of 44 concessions comprising ~135 thousand hectares
Advance and
Expand
Explore and
Enhance
Advance Earn-in
Agreements and
Explore Other
Properties
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CREATING TWO EXPLORATION & DEVELOPMENT COMPANIES
Cangrejos Project (100%)
• Drill untested areas to the west, north, south and at depth
• Advance towards a Pre-Feasibility Study
• Look to monetize the asset in the medium-term
TSXV: LUM
Condor Project (90%)
Continue exploration at key areas, move Santa Barbara towards PEA
Committing a combined US$96 million over 7-yearsat 4 early stage properties
100% owned exploration concessions
TSXV: LR(2)
▪ On July 9, 2018, Lumina Gold announced the spin-out and creation of Luminex Resources
▪ Lumina Gold shareholders will receive 1 new Lumina share and 0.15 Luminex shares upon completion(1)
(1) Subject to a shareholder vote, targeting an effective completion date of August 31, 2018. Following the completion of the Arrangement, Luminex will have approximately 41.1 million basic shares outstanding based on Lumina’s current share structure. (2) Pending TSXV approval.
TSX-V: LUM | 5
1 Year Closing Price ChartJULY 2018
TSX Venture Exchange LUM
Issued & Outstanding [July 26/18] 273.8 Million
Fully Diluted [July 26/18] 284.9 Million
Market Cap [July 26/18, C$0.79 per share] C$216 Million
Cash [Mar 31/18] US$9.7 Million
52 week trading range $0.60 – $0.85
Management and Insiders ControlRoss Beaty controls 15.7%
27.2%
Research Coverage: Haywood Securities Buy / C$1.50
LUMINA GOLD – CORPORATE OVERVIEW
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ECUADOR – SPECIFIC MINING INVESTMENT PROGRESS
2014•Wood Mackenzie recommended mining code reforms to make Ecuador more competitive for investment
2015
•Government established the Ministry of Mines of Ecuador, signaling its further commitment to dedicate resources to promote the mining industry
• Improved environmental permitting; reducing processing authorizations to 6 months
• Construction begins at Mirador copper project
2016
•Government reaches agreement on Exploitation Terms & Conditions with Lundin Gold to build Fruta del Norte and signs Investment Protection Agreement
• Ecuador makes new concessions available via Mining Auction Process, ending the moratorium initiated in 2008 – Lumina is awarded 32 highly prospective concessions
2017
•New President Lenin Moreno expresses strong support for formal mining
•Mining Ministry leadership stays on through transition period
• Further positive change to the tax regime and mining laws are anticipated
•Construction commences at Rio Blanco project
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Advanced Projects
▪ Cangrejos, 6,374 ha
▪ Condor, 10,101 ha
▪ Including Santa Elena and Escondida
First Quantum Earn-in
▪ 2 concession packages, 14,741 ha
▪ Orquideas (4,743 ha)
▪ Cascas (9,998 ha)
Anglo American Earn-in
▪ Pegasus A and B packages, 67,360 ha
The Macuchi VMS Belt
▪ Palma Real (19,775 ha)
Condor Cordillera Copper-Gold Belt
▪ 5 concession packages, 17,058 ha▪ Tarqui (4,817 ha)
▪ Quimi (2,732 ha)
▪ Yawi (1,494 ha)
▪ La Canela (3,187 ha)
▪ Tres Picachos (4,828 ha)
LUMINA GOLD ECUADOR CONCESSION OVERVIEW
LEGENDLumina - Advanced Projects
Lumina - Exploration Projects
Lumina - PartnerEarn-in - Exploration Projects
Other Projects - Companies
Deposit Under Construction
Palma Real
Pegasus A
Pegasus B
Tarqui
Quimi
Escondida
Santa Elena
Yawi
La Canela
Tres Picachos
CONDOR PROJECT
CANGREJOS PROJECT
Cascas
Orquideas
Fruta Del NorteLundin Gold
MiradorEcuaCorriente
Rio BlancoJunefield Ecuador
Loma LargaINV Metals
CuripambaSalazar - Adventus
MacuchiMinera Minchoa
La PlataToachi Mining
CascabelSol Gold
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▪ Originally a joint venture with Newmont, Odin and a private partner▪ 1999 - 2000: 27 holes / ~7,200 m of drilling (Newmont JV)▪ 2011 - 2012: 17 holes / 4,698 m of drilling (Odin Mining)▪ 2014 - 2017: 24 holes / 10,694 m of drilling (Current Lumina Management)
▪ Close to a commercial port – 40 km to Puerto Bolivar and 30 km to Machala, provincial capital
▪ Close to a paved highway – 8 km from Cangrejos camp and core facility
▪ Low elevation project – ~1,370 m above sea level is the high point
▪ Access to power – Power to camp from Ecuador’s national grid▪ Ample, inexpensive hydro power available
▪ Amicable ongoing relations with local communities▪ Closest community, Valle Hermoso is 7 km from camp by road
CANGREJOS – OVERVIEW & HISTORY
Cangrejos
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▪ Based on drilling up until November, 2017▪ Porphyry Au-Cu style mineralization hosted in breccias and diorite porphyry and associated with potassic alteration
▪ Higher gold values usually correlate with finely disseminated chalcopyrite/bornite
CANGREJOS – JUNE 2018 INFERRED MINERAL RESOURCE
Cut-Off AuEq* (g/t)
Million Tonnes
Average Grade Contained Metals
AuEq(g/t)
Au(g/t)
Cu(%)
Ag(g/t)
Mo(ppm)
Au(Moz)
Cu(Mlb)
Ag(Moz)
Mo(Mlb)
0.25 440.1 0.81 0.62 0.11 0.6 24.0 8.8 1,054 8.2 23.3
0.35 408.0 0.85 0.65 0.11 0.6 25.0 8.5 1,033 7.8 22.5
0.45 369.5 0.90 0.69 0.12 0.6 25.8 8.1 985 7.1 21.0
0.55 320.8 0.96 0.73 0.13 0.6 26.7 7.5 919 6.5 18.9
*Gold equivalent values were calculated using the following prices: for gold a price of US$1,400 per ounce, for copper a price of US$3.25 per pound, for molybdenum a price ofUS$10.00 per pound and for silver a price of US$17.00 per ounce. Gold equivalent values can be calculated using the following formula: AuEq = Au g/t + (Ag g/t x 0.0122) + (Cu % x1.592) + (Mo ppm / 10,000 x 4.898). Economic pit shell incorporates metallurgical recoveries and 45 degree pit slopes.
Resource QP: Rob Sim, P.Geo., as defined by NI 43-101
Inferred Mineral Resource Estimate Sensitivity to Cut-Off Grade
Inferred Mineral Resource Estimate (0.35 g/t Au Eq Cut-off)
TypeMillion Tonnes
Average Grade Contained Metals
AuEq(g/t)
Au(g/t)
Cu(%)
Ag(g/t)
Mo(ppm)
Au(Moz)
Cu(Mlb)
Ag(Moz)
Mo(Mlb)
Oxide Material 17.7 0.77 0.61 0.09 0.6 21.9 0.3 35 0.4 0.9
Sulphide Material 390.2 0.86 0.65 0.12 0.6 25.1 8.2 998 7.4 21.6
Total 408.0 0.85 0.65 0.11 0.6 25.0 8.5 1,033 7.8 22.5
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CANGREJOS – JUNE 2018 PEA SUMMARY
Production Processed Grades Cash Costs (US$/oz)
Net Present Value (US$M)Internal Rate of Return (%)LOM Capital (US$M)
270
25
421
51
373
43
Gold (koz) Copper (Mlbs)
Yrs 1-5 Yrs 6-16 LOM
0.79
0.11
0.67
0.12
0.69
0.12
Gold (g/t) Copper (%)
Yrs 1-5 Yrs 6-16 LOM
$523
$706
$569
$741
Net Cash Costs Au Eq Cash Costs
C1 Costs AISC
$1,549
$876
$2,124
$1,283
Pre-Tax Post Tax
$1,300 Au, $3.25 Cu
$1,430 Au, $3.58 Cu
19.2%
14.4%
23.3%
18.1%
Pre-Tax Post Tax
$1,300 Au, $3.25 Cu
$1,430 Au, $3.58 Cu
$831
$406 $271
Initial -
40 ktpd
Expansion -
80 ktpd
Sustaining
and Net
Closure
Cangrejos is a large scale robust project that is expected to have a 16 year mine life
Note: By-products and equivalents calculated using $1,300 per ounce gold, $3.25 per pound copper, $11.00 per pound molybdenum and $19.00 per ounce silver.
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CANGREJOS – PROJECT DETAILS & SITE PLAN
▪ Large-scale open pit mining using a 100% owner operated equipment fleet
▪ The process flow sheet consists of:
▪ Primary crusher adjacent to the pit
▪ An overland conveyor to the plant
▪ SAG and ball mills
▪ Gravity gold concentrators, copper and molybdenum concentration circuits
▪ Thickening and filtering for flotation tailings
▪ Conveyor to the dry stack tailings facility
▪ Waste Rock Storage Facility will hold nearly 380 Mt of waste rock
▪ Dry Stack Tailings Facility will hold nearly 340 Mt of tailings
▪ Connected power requirement of 155MW is projected to be available on the Ecuadorian power grid
▪ It is projected that there will be adequate water from on-site or nearby water sources, even in drought conditions
Ultimate Pit and Site Layout1km
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▪ Only 32 active primary gold development projects that can produce >250koz Au
▪ Cangrejos is the 5th largest global development project controlled by an independent developer
CANGREJOS – UNIQUE PROJECT SCALE
373
Su
kh
oi Lo
g
Do
nlin
Ce
rro
Ca
sa
le
Sn
ow
fie
ld
La
Co
losa
KS
M
Ha
iyu
Go
ldru
sh
Bla
ck
wa
ter
Mt
To
dd
Jea
ne
tte
Gra
ma
lote
Co
ura
ge
ou
s L
ak
e
Ca
ng
rejo
s
Kia
ka
Fru
ta d
el N
ort
e
Sti
bn
ite
Za
rmit
an
Co
te
Kyz
yl
Eva
nd
er
La
Bo
de
ga
Vo
lca
n
Sp
rin
gp
ole
Liv
en
go
od
Ho
d M
ad
en
Go
lde
n H
igh
wa
y
Ha
rdro
ck
Wh
ite
Riv
ers
Lo
ne
Sta
r
Gru
yere
JV
Bu
riti
ca
Held By Large or Mid-tier Producer Independent Developer
Source: Metals Economic Group as of June 2018
Annual Production Capacity (koz Au)
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CANGREJOS – COMPARABLE PROJECTS
Mine Life and Capital Cost per LOM OunceAverage Production and AISC
Volta Grande
Back River
Stibnyte
Eagle
Toroparu
Springpole
Amulsar
Windfall
Loma Larga
Fruta Del Norte
Cangrejos
8
10
12
14
16
18
$100 $150 $200 $250 $300 $350M
ine
Lif
e (
Ye
ars
)
US$ of Capital (1) / Au Ounce of Life of Mine Production
(1) Initial Capital, Expansion Capital, Sustaining Capital and Closure Costs
Volta GrandeBack River
Stibnyte
Eagle
Toroparu
Springpole
AmulsarWindfall
Loma Larga
Fruta Del Norte
Cangrejos
100
175
250
325
400
$400 $600 $800 $1,000
Avg
Au
Pro
du
cti
on
(k
oz)
All-in Net Sustaining Cost (US$/oz)
Cangrejos benchmarks well against other independent developers as a long life, low cost asset
Greenfield Development Comparables Ecuadorian Greenfield Comparables
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CANGREJOS – DEPOSIT REMAINS OPEN
C17-56, 57, 58, 69 and 70 allowed for a deeper pit-constrained shell; additional deep drilling could
continue to expand the existing resource
Remains open to the north, south, west and at depth; newly granted C20 surface access will allow new
drilling to the western side of Cangrejos
Open Open
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CANGREJOS – DISTRICT EXPLORATION UPSIDE
C2
0 B
ou
nd
ary
C20 surface access that was granted in December will allow for drilling to the west in 2018
#s = Lumina 2017 Drill highlights
All Holes West of C20 were drilled by Newmont
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Gran Bestia:
▪ 1 km from the main Cangrejos deposit
▪ Minimal drilling, 5 holes by Newmont
▪ Mineralization remains open in all directions
▪ Hole C99-06: 0.91g/t Au, 0.16% Cu
over 208.48 m (entire hole)
Other Prospects:
▪ 5+ undrilled high priority targets
requiring follow up
CANGREJOS – GRAN BESTIA & OTHER PROSPECTS
0.37g/t Au
80m
Open at depth
0.91g/t Au
208.45m
0.55g/t Au
319.14m
Surface Topography
Mineralized Core Section
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▪ 35 km from Provincial capital of Zamora, Zamora-Chinchipe Province
▪ 30 km south of Fruta Del Norte project (9.5 Moz Au)
▪ 55 km south of Ecuacorriente's Mirador Project (4 Moz Au, 8.6 Blbs Cu)
▪ Access via paved and gravel roads
▪ Camps and secure core facility on property
▪ Constructive ongoing relations with local communities
▪ 90%* owned by Lumina, 10% owned by the pension fund for Ecuador’s armed forces personnel
CONDOR – LOCATION AND INFRASTRUCTURE
Condor
*Lumina’s level of ownership on the Condor
concessions varies between 90% and 100%; 6,900 ha
of the 10,101 ha are 90% owned by Lumina
Condor
Fruta del Norte
Mirador
PERUECUADOR
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CONDOR – PROJECT HIGHLIGHTS
▪ Total gold resources of 1.4 Moz Indicated and 2.5 MozInferred, with deposits not yet fully defined
▪ Current claims total 10,101 hectares
▪ An estimated US$40M has been spent on the project from 1993 – 2016 on drilling, trenching, geochemical, geophysical and geological surveys
▪ Previous owners: TVX, Ecometals and Ecuador Gold and Copper
▪ 395 drill holes and 99,384m of drilling, defining four deposits and outlining various high priority target areas
Mirador
Santa Barbara
Fruta del Norte
Condor
ECUADOR
PERU
(in construction)
(in construction)
(exploration)
(exploration)
Porphyry Cu-Au8.6 Blbs Cu, 4 Moz Au
Epithermal Au9.5 Moz Au
Epithermal Au1.6 Moz Au
Porphyry Au-Cu2.3 Moz Au
Granodiorite / Tonalite
Porphyry
Subvolcanic Intrusions
Volcanics
Sediments
Faults
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CONDOR – DEPOSIT AREA AND SHOWINGS
Condor Project NI 43-101 Resource Summary (100% Basis)
DepositTonnage Grade Contained Metal
(Mt)Au
(g/t)Ag
(g/t)Cu(%)
Au (Moz)
Ag(Moz)
Cu(Mlbs)
Indicated
Santa Barbara 13.3 0.63 0.7 0.09 0.3 0.3 27
Soledad 11.6 0.72 5.3 0.01 0.3 2.0 3
Los Cuyes 38.6 0.68 5.5 0.02 0.8 6.9 13
Enma 0.4 0.76 11.9 0.01 0.01 0.1 0.1
Total Indicated 63.8 0.68 4.5 0.03 1.4 9.2 43
Inferred
Santa Barbara 119.0 0.52 0.9 0.10 2.0 3.5 255
Soledad 2.8 0.54 3.1 0.01 0.0 0.3 1
Los Cuyes 22.7 0.65 5.7 0.01 0.5 4.1 4
Enma 0.03 1.12 10.4 0.01 0.001 0.01 0.01
Total Inferred 144.5 0.54 1.7 0.08 2.5 7.9 260
• Effective date of April 5, 2018.
• Resources have been calculated using a 0.35 g/t Au Eq cut-off grade. Metal prices used: US$1,400 per ounce gold, US$3.25 per pound copper and US$17 per ounce silver.
• Resource QP: Rob Sim, P.Geo., as defined by NI 43-101
SOLEDAD
El HitoSANTA
BARBARA
LOS CUYES
Chinapintza
Tres
Cerritos
Wuanwitza
Alto
Prometedor
Napintza
ENMA
ECUADOR
PERU
Lumina Gold Concessions
Deposits (with resources)
Targets
Wuanwitza Bajo
Camp Zone
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CONDOR – EXPLORATION & OPTIONALITY
Mineralization > 0.35 g/t AuEq extends below
the resource pit shell; open in multiple directions
Lumina is working to expand the shallow open pittable resource at Santa Barbara
Santa Barbara, Prometedor and Camp Zone will be the
focus of exploration efforts through 2018
Add
legendExploration Targets
2.5km
Existing Resource
Indicated
Inferred
Santa Barbara
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SANTA BARBARA – EXPLORATION TARGET
▪ IP Chargeability High – possibly correlates with the pyritic halo of a porphyry
intrusion
▪ Gold soil anomalies in areas underlain by andesites and diorite. No anomalies
in areas underlain by sediments
Exploration Targets:
▪ Eastern edge of the Santa Barbara IP anomaly
▪ Southwestern IP anomaly – possible skarn-style mineralization
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FIRST QUANTUM EARN-IN OVERVIEW
▪ On October 26, 2017 Lumina Gold announced a non-binding earn-in agreement with First Quantum
▪ Working to complete a definitive agreement
▪ US$38.5M between 2018 and 2023
▪ US$31.5M work commitment on Cascas and Orquideas over the five years
▪ US$7M of staged cash payments with the final payment in 2023
▪ First Quantum can accelerate the work and payments at their election
▪ Post completion of the spending First Quantum will own 51%
▪ Increases to 70% if First Quantum funds the project to construction
▪ Binding agreement finalized in June 2018
LEGEND
Lumina Gold
First Quantum –Lumina Gold
Los CuyesSoledad
Enma
Santa Barbara
OrquideasClaim –Drilling
planned for 2018
CascasClaims
CondorClaims
Cu-Mo
Cu-Mo
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EXPLORATION PROJECTS - ORQUIDEAS
Cu-Mo-Ag ± Au porphyry system
▪ Southern continuation of prolific Zamora Cu-Au Belt
▪ Structurally controlled porphyry Cu-Mo-Ag system
▪ 5 km x 1.5 km coincident Cu-Mo anomaly
▪ Molybdenum up to 0.63% in rock samples
▪ Peripheral high grade gold/base metal veins
Legend
Artisanal Gold Mine
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EXPLORATION PROJECTS - CASCAS
Cu-Mo-Au porphyry system
▪ Southern continuation of prolific Zamora Cu-Au Belt
▪ Two phase system Cu-Mo and Au
▪ 5 km x 2.5 km coincident Cu-Mo anomaly
▪ 3 km x 2.5 km coincident Au-As anomaly
Legend
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ANGLO AMERICAN EARN-IN OVERVIEW
▪ On March 26, 2018 Lumina Gold announced a non-binding earn-in agreement with Anglo American
▪ Working to complete a definitive agreement
▪ US$57.3M between 2018 and 2024
▪ US$50M work commitment on Pegasus A and B over the seven years
▪ US$7.3M of staged cash payments, with US$1.3M upon signing of definitive agreement
▪ Anglo American can accelerate the work and payments at their election
▪ Post completion of the spending Anglo American will own 60%
▪ Increases to 70% if Anglo American funds the project to construction
▪ Lumina working on definitive agreement, with a second half of 2018 completion target
Anglo American –Lumina Gold
Non Lumina Claims
LEGEND
CuripambaSalazar - Adventus
Pegasus A
Pegasus B
MacuchiMinera Minchoa S.A
TSX-V: LUM | 26
EXPLORATION PROJECTS - PEGASUS A
Au, VHMS and Porphyry Cu-Mo targets
▪ Highly prospective land package -67,360 ha, including Pegasus B
▪ The geologic belt hosts La Plata, Macuchi and Curipamba VMS deposits
▪ Identified bedrock Au mineralization at La Envidia (northern area of Pegasus A) and juxtaposed porphyry Cu-Mo stocks
▪ ~1,000 rock samples and ~600 silt samples taken at Pegasus A
▪ Plan to fly airborne magnetics later in 2018
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Strategy and Management▪ A team with a consistent history of exploring, discovering, de-risking and monetizing assets
▪ A pipeline of assets that will return value to shareholders
▪ Spin-out of Luminex Resources, which will illuminate the value of the early stage assets
▪ Highly aligned management team with 27% ownership
Cangrejos▪ PEA provides a clear baseline value for Cangrejos
▪ Large scale project that aligns with major gold producers acquisition criteria
▪ Drilling in new areas that will allow for resource growth through 2018
Condor▪ Substantial existing resource with large optionality in a higher gold price environment
▪ Numerous exploration targets on the property identified by recent work program
Early Stage Concessions▪ Advancing Pegasus A&B, Orquideas and Cascas in a non-dilutive way to shareholders
▪ Working to generate additional gold and copper focused exploration targets
REASONS TO INVEST IN LUMINA GOLD
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APPENDIX
Condor
Cangrejos
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THE LUMINA GROUP TRACK RECORD
Sold For C$415M in 2008Relincho Project – Chile
Bought by Teck
Sold For C$470M in 2014Taca Taca Project – Argentina
Bought by First Quantum
Sold For US$137M in 2006Regalito Project – Chile
Bought by Pan Pacific Copper
Sold For C$455M in 2007Galeno Project – Peru
Bought by China Minmetals / Jiangxi Copper
Sold For US$66M in 2011Portfolio of Royalties
Bought by Franco Nevada
Sold For C$26M in 2006Casino Project – Canada
Bought by Western Copper
Sold For C$50M in 2017Coringa & Mayaniquel Projects – Brazil & Guatemala
Bought by Trek Mining (Equinox Gold)
Current Market Cap: ~C$200MCangrejos Project – Ecuador
Current Market Cap: TBDCondor Project and
Exploration Properties – Ecuador
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LUMINA GOLD CORPORATE HISTORY
Financing History Property Acquisition and Divestment History
2014
2016
2017
2018
▪ US$5M at US$0.052
▪ C$20M at C$0.70
▪ C$20M at C$0.62
▪ C$7M at C$0.72
2016
2017
2018
▪ Acquired C20, the 2nd half of the Cangrejos deposit and additional concessions in the Government auction
▪ Acquired Condor through the acquisition of Ecuador Gold and Copper
▪ Acquired an additional 41 thousand hectares of concessions in the Government auction
▪ Announced the spin-out of Condor and the exploration concessions into Luminex Resources
TSX-V: LUM | 31
EXPERIENCED BOARD AND MANAGEMENT
DIRECTORS
Lyle Braaten 25+ years experience practicing law in Vancouver, currently President & CEO of Miedzi Copper Corp.
Heye Daun20+ years experience mine engineer with top-tier mining companies. Outgoing President & CEO of Ecuador Gold and Copper Corp
Marshall Koval35+ years experience in executive and corporate development, finance, engineering, geology and environmental expertise
Donald Shumka40+ years experience in corporate finance and business. Harvard University Business Administration graduate.Former President & Managing Director of Walden Management Ltd.
Michael Steinmann20+ years experience as a geologist in the exploration and mining industry with a PhD from the Swiss Federal Institute of Technology. Currently President & CEO of Pan American Silver Corp
Stephen Stow20+ years experience in the gold mining sector. Former Director of Corporate Finance, Asia for the National Westminster Bank, Hong Kong Division
SENIOR MANAGEMENT O T H E R O F F I C E S
Marshall Koval President & CEOFormer President & CEO of Anfield Gold CorpFormer VP Corporate Development Lumina Copper Corp
Leo Hathaway Senior Vice PresidentFormer Chief Geological Officer Anfield Gold CorpFormer Chief Geological Officer Lumina Copper Corp
Diego Benalcazar Senior Vice PresidentFormer President & Director Ecuadorian Chamber of MinesFormer GM & Director Swiss Holderbank Cement Group
Lyle Braaten VP Legal CounselCurrently President Miedzi Copper CorpFormer Secretary & Legal Counsel Magma Energy Corp
Scott Hicks VP Corp Development & Communications Former VP Corp Development & Communications Anfield Gold CorpFormer investment banker with RBC Capital Markets and BMO Capital Markets
Martin Rip Chief Financial OfficerFormer CFO Anfield Gold CorpFormer CFO Lumina Copper Corp
John Youle VP Corporate AffairsFormer VP Corp Affairs, Anfield Gold CorpFormer VP Corp Affairs, Lumina Copper Corp
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▪ Local road maintenance and improvement
▪ Collaborated with local municipalities on annual improvement campaigns
▪ Ongoing maintenance of access roads shared with neighboring farmers
▪ Improve and maintain safety signage along road right of way
▪ Instituted program of safely closing, marking, and capping exploration drill holes, along with environmental reclamation and rehabilitation of associated drill pads
▪ Site restoration consistent with PDAC e3 environmental and social guidelines and other international best practices
CORPORATE SOCIAL RESPONSIBILITY PROJECTS
▪ Lumina Forestry / Educational programs
▪ Native forestry species being reintroduced on Lumina Gold’s properties
▪ More than 5,000 native plants produced at Lumina’s nursery
▪ Collaborating with local schools on environmental education
▪ Introduced and organized girls’ athletic programs to promote gender equality and strengthen relations between various local communities
▪ Supporting local agriculture
▪ Partnering with government agencies
▪ Supporting community agriculture and animal husbandry programs
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ECUADOR – MINING TAX REGIME
Current Income Tax and Royalty Regime
▪ 5% NSR Royalty
▪ 15% Profit Sharing Tax – Based on EBIT, 12% state, 3% employee
▪ 22% Corporate Tax – Based on EBIT less Profit Sharing Tax, rate for exporters versus 25% for other businesses
▪ 70% Windfall Tax – Not triggered until certain price thresholds and only applicable after capital payback
Other Government Payments
▪ Patent fees based on the stage of the project and number of hectares
▪ 12% VAT tax – Refundable on expenditures incurred after Jan 2018 if Lumina generates export sales
▪ 5% withholding tax on foreign cash repatriation
Proposed Mining Tax Review
▪ The Mining Ministry is proposing to review the following:
▪ No tax for cash repatriation, when in production
▪ Windfall tax elimination
▪ Capital gains tax reduction
Constitutional requirement for Government of Ecuador to receive 50% of project benefit (NPV basis)
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MINING CONCESSION PHASES IN ECUADOR
Early Exploration
4 Years
All of Lumina’s exploration concessions
Advanced Exploration
4 Years
Cangrejos and Condor
Economic Evaluation
2 Years
Can be extended for an additional two-year period
Production
25 Year Mining Title
Renewable for a second 25 year term
For more information, please contact:
LUMINAGOLD Corp410 - 625 Howe StreetVancouver | BC | V6C 2T6Canada
TF: 1 844 896 8192 T: 1 604 646 1890F: 1 604 687 7041E: [email protected]: www.luminagold.com
T S X . V : L U M
Cangrejos
Condor