ADVANCED WATTS LAKE ZINC PROJECTADVANCED WATTS LAKE ZINC PROJECT
In the World’s Top-Rated Mining Jurisdiction
The following information may contain forward-looking statements.
Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. Actual results may
differ materially from those currently anticipated in such statements.
Any historical resource estimates were completed prior to the
implementation of NI 43-101 and the Company has not done the work
necessary to verify the classiﬁcation of the resource or reserve, they
should not be relied upon or considered a deﬁned resource according
to NI 43-101; Except for those properties where NI 43-101 have been
The technical information in this corporate presentation has been
prepared in accordance with the Canadian regulatory requirements set
out in National Instrument 43- 101 and reviewed on behalf of the
company by Ross McElroy, P. Geol., a qualiﬁed person
The Need for Zinc is Not Going Away
Zinc is currently the 4th most widely consumed metal in the world.
Approximately 14 MMt of zinc is produced and consumed annually around the world, of which ~60% is utilized for its
corrosion resistance via the galvanization of steel (rebar, autos, structural steel) to prevent it from rusting.
(Source: Cormack Securities Inc, Zinc Mining 101 Report, 2018)
Zinc mixed with copper to form materials
that are used in automobiles, electrical
components, and household fixtures
Used in rubber manufacturing
and as a protective skin ointment
Adding thin layers of zinc to
iron or steel to prevent rusting.
Global zinc demand is set to rise
by 1.1% in 2019 (Source: ILZSG)
Zinc’s demand fundamentals remain largely
underpinned by the steel industry, and emerging
market considerations (namely China and India) are
key to the market’s medium- to long-term outlook.
ZINC DEMAND IS ON THE RISE
Metal price forecast includes a 2019E and
long-term (+2020E) zinc price of US$1.35/lb
and US$1.15/lb respectively.
(Source: Cormark Securities Inc. Zinc Deposits 101 Report, 2018)
U.S.-China trade tension anticipated to constrain supply and
stands to bolster zinc pricing over the next 12-24 month
In the past 5 years, Zinc price has
increased from lows of approximately
$0.60 to $1.20 per lb.
Visible zinc inventories are now
at a 10-year low.
The zinc market outlook is underpinned by
several relatively recent key mine shutdowns
(accounting for +10% of global supply), including
Century and Lisheen through early 2016, and a
lack of new (signiﬁcant) advanced-staged
projects to fully replace them.
ZINC SUPPLY IS ON THE DECLINE.
Six consecutive years of production deficits have eroded previously-high
inventories. Future demand for Zinc is projected to outstrip the supply
which will lead to higher prices.
Since 2014, Zinc supply has decreased
more than 900% from 900,000 tons
per year to 100,000 tons per year.
Depletion/closure of 4 mines from 2013 to 2016, removed 1M
tonnes annual supply (approx. 8% of global supply).
Impact of shut down of numerous mom-and-pop operations in
China has curtailed supply.
An award-winning management team with the goal
to grow shareholder value through continued
exploration at the large and highly-prospective
Watts Lake project located near the Flin Flon-Snow
district; the richest greenstone belt in Canada
per square kilometre.
Our Vision of Success: 3Ps
The Right Property: Zinc Property 'Watts Lake' Rated
as One of the World's Top Jurisdictions
The Right People: Management Team with a Proven
Track Record of Award Winning Success
The Right Price: An attractive valuation and share
PRESIDENT, COO AND CHIEF GEOLOGIST
“Historic data on Watts Lake dates back more than 50 years. However,
significant progress is being made compiling the project’s historic data
into a comprehensive modern geological database. Locating and
confirming a number of historic trenches in the field is a critical step
towards providing confidence in the strength of this large mineralized
system. We are very encouraged to see that assays not only confirmed
historic results, but in several instances exceeds them. The strong
high-grade silver mineralization associated with zinc and lead in the
Borys Lake zone and its association with copper mineralization in the
Cominco Zones adds an additional dimension to the potential of the
Watts Lake project. A winter drill campaign is currently being planned,
which will be designed to test for additional mineralization.”
Watts Lake, Saskatchewan
Advanced Asset in Top Jurisdiction with
3 Pillars to Success
The Right Property:
Large Land Package
2 Borys Lake historic Zinc-Lead-Silver Deposit
3 Excellent Blue-Sky Potential
Large Land Package
Watts Lake: Advanced Asset in Top Jurisdiction
• Location: Watts Lake, Saskatchewan
• ~13,248 ha property in Saskatchewan, close to
• Main Zone has 975m of strike length and open on
strike and depth and was first drilled in 1972 and
historic resource estimate only from surface to 30m
• Numerous mineralized surface drill intersections
including occurrences of zinc, copper, silver, gold,
nickel and cobalt that are over a 4.5km strike length.
Historic Borys Lake Zinc
Main zone drilled in 1972
• Main Zone: ~975m strike length and averaging 5.3m
to 19.5m wide. The Main zone is open at depth.
• Mac, Will A, Will B and Cam Zones: Drill tested and
similarly mineralized. No historic resource estimate
• Shine plans to drill mineralized zones with the
intention to confirm and potentially expand on
results and with a further aim towards a 43-101
compliant resource estimate.
Watts Lake: Surface Exposed
Shallow Depth Mineralization: Numerous historic
trenches show mineralization to surface
• Borys Lake Trend: ~4.5km strike length
• Cominco A and B Zones: 3km to south
• High-grade zinc-lead-silver mineralization:
Confirmed mineralization in 2018
- Assays up to 21.3% Zinc (Borys Lake Trench 4 –
- 184 g/t silver is from Borys Lake Trench 8
Borys Lake Trench 4
High Grade Zinc-Lead-Silver
Borys Lake Outcrop Trench 4
Cominco B Zone
Volcanogenic Massive Sulphide (VMS) Deposit
• In Canada, VMS mining responsible for 49% of Zn, 20% OF Pb, 27%
Cu and 40% OF Ag
• Flin Flon District near SK-MB border has been a historically
important district for VMS ore production
• Watts Lake Project located ~150km to west of Flin Flon in same
• VMS deposits form on sea-floor in submarine volcanic environments
whereby hot water hydrothermal vent systems precipitate massive
sulphide metal mineralization
• VMS deposits are often found in clusters and can be major sources of
Zinc, Copper and Lead & often include Silver and Gold as by-products
• 350 VMS deposits in Canada and 850 worldwide
Excellent Blue-Sky Potential
Located in the world's 2nd leading mining jurisdiction
Mineralization traced over Borys Lake trend for 4.5km. Large
conductive corridor which includes Borys Lake deposit. Numerous
mineralized surface drill intersections including occurrences of zinc,
copper, silver, gold, nickel and cobalt
Borys Lake Trench 4: Eight samples collected returning the highest
Zinc values ranging from 1.92% to 21.3% Zn.
Silver mineralization ranging from 5.3 to 56.7 g/t Ag.
Borys Lake Trench 8: Five samples collected returning the highest
Silver mineralization ranging from 70.2 to 184 g/t Ag.
Cominco Zone B:
Copper values resulted up to 0.61% Cu and silver up to 7.6 g/t Ag
See Trench Sample Data in Appendix
Multiple award-winning CEO in the mining sector, specialising
in building exploration and development companies. Has
raised over $275M for public companies.
Multiple award-winning geologist and senior company
executive with over 30 years of experience in the mining
industry. Ross has lead the discovery of two major uranium
deposits in Saskatchewan, Canada.
President & COO
Success Follows Experienced CEO, Dev Randhawa.
For his success with Fission Uranium, Dev Randhawa was named “Mining Person of
the Year” by The Northern Miner and “Dealmaker of the Year” by Finance Monthly.
OUR HIGHLY AWARDED CEO
Highlights from Dev's Outstanding Mining Career
Under Dev Randhawa’s leadership, Fission Energy was named a Top 50 TSX:V in
2011 for high performance. While running Strathmore, Dev Randhawa succeeded in
building it into a $350m cap corporation.
Prior to founding his first listed company, Dev Randhawa established himself as a
successful investment banker. He has always maintained that the skills and
experience he developed during that time have been of great value to his roles as
CEO and chairman in the resource exploration sector.
Major discoveries and producing mines in gold and uranium.
Ross is the winner of the PDAC 2014 Bill Dennis award for exploration success and
the Northern Miner ‘Mining Person of the Year 2013’; The Mining Journal awarded
him and his team with their Excellence award in 2015 for exploration success.
OUR HIGHLY AWARDED COO
Highlights from Ross’ Outstanding Mining Career
President & COO
Ross McElroy has been instrumental in several major uranium discoveries in
Canada’s Athabasca Basin - the world's largest source of high-grade uranium,
including Fission Uranium’s Triple R deposit and Cameco’s McArthur River deposit
(the world’s largest high-grade uranium deposit.
Mr. McElroy has also had a successful career in the search, discovery and
development of other commodities including gold and diamonds. For BHP he
managed the vast Hope Bay Gold Project, located in Nunavut, Canada on which the
team discovered and advanced 3 major high-grade gold deposits and which TMAC
Resources have recently brought into commercial production.
Total shares outstanding
Total issued and outstanding
* TSX.V: SMR - C$ 0.065 (Jan 10, 2019)