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Salazar Resources Corporate Presentation 2017

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Corporate Presentation for Salazar Resources 2017

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Salazar Resources Corporate Presentation 2017

  1. 1. SALAZAR RESOURCES LTD. TSX-V: SRL CORPORATE PRESENTATION 2017 “In partnership to develop Latin America’s next major VMS camp”
  2. 2. Forward-looking statements: This report includes certain statements that may be deemed forward-looking. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that actual results or developments may differ materially from those projected in the forward-looking statements. Disclaimer
  3. 3. Key Personnel Fredy Salazar, President & Chief Executive Officer  M.Sc., 27 years experience, Newmont Exploration, original work on Fruta del Norte Nick DeMare, Corporate Secretary  CA, President of Chase Management, Director of public companies Juan C. Ortiz, B.Sc., M.Eng, Director  COO of Campania Minera Milpo SA and former Corporate project manager of the mining division of the Trafigura Group Jorge Roca Arteta, Director  Harvard Business School alumni, experienced business executive and Chairman of the Cuenca Chamber of Industry. Etienne Walter, Director  Honorary Consul General of the Republic of Ecuador Thomas Kelly, Director  Colorado School of Mines alumni, 35 years of experience in mine production Pablo Acosta, Chief Financial Officer  CPA, Private company experience, 7 years with Salazar Francisco Soria, Ing., Exploration Manager  22 years geological experience, 8 years with Newmont, specializing in South America. Kieran Downes, Ph.D., P.Geo, Qualified Person  Over 40 years diversified experience in gold, base metals, uranium and diamond exploration Jim Franklin, Ph.D., FRSC, P.Geo, Technical Consultant  Exploration geologist with 40 years of experience, focusing on the discovery of base metal, uranium and gold deposits James Mayor, Technical Consultant  43 years in the Mining-Exploration Industry, 37 years with Newmont Mining Corporation Warren Pratt, Ph.D., P.Geo, Technical Consultant  25 years experience, worldwide Consultant, expert in geologic mapping
  4. 4. Investment Highlights • Major near surface high grade discovery with a NI 43-101 resource estimate • Preliminary Economic Assessment (PEA) on the El Domo property at the Curipamba project was completed on January 16th, 2015. • Looking to be the next major VMS producer in Latin America • 100% ownership of all properties • Richest combined metal grades of all VMS deposits in the Andes • Strategic investors including: Resource Capital Fund (15.09%), Lundin Mining (5.26%), Guangshou Mining (5.18%), Trafigura (3.98%) • The Salazar team has been instrumental in Ecuador’s most significant discoveries including Fruta del Norte (13.7M oz. gold) • Undefined limits of El Domo Deposit towards the east, north and at depth • Only 20% of Naves Central Zone has been explored, with some additional high priority anomalies to be drill tested • An entire under-explored VMS District in Latin America
  5. 5. MID-SIZE MINING LARGE PROJECTS Underground Mining between 300 – 1,000 t/day Open Pit Mining between 1,000 – 2,000 t/day > 1,000 t/day for Underground mining > 2,000 t/day for Open Pit mining Mining concessions granted up to 10 years: 4 years early exploration (US$ 8.85/Ha) + 4 years advanced exploration (US$17.7/Ha) + 2 years feasibility study (US$17.7/Ha) Mining concessions granted up to 10 years: 4 years early exploration (US$ 8.85/Ha) + 4 years advanced exploration (US$17.70/Ha) + 2 years feasibility study (US$17.70/Ha) Ruled by mining law, no negotiation with the government. Once the mine begins operations, the annual payment jumps to US$17.70/Ha up to 25 years (renewable) Negotiation with the government to obtain operational permit. Once the mine begins operations, the annual payment jumps to US$21.9/Ha up to 25 years (renewable) Fixed Royalty of 3% on NSR for Small Mining Fixed Royalty of 4% on NSR for Mid-Size Mining Royalty between 5-8% on NSR No windfall taxes Windfall tax: 70% for the state y 30% for the Company to be paid 48 months after the investment has been recovered (in terms of the Net Present Value (NPV)) on amounts exceeding the agreed base price. Sovereign Adjustment: If the state has received benefits in an amount lower to that of the exploration company’s, the Sovereign Adjustment will be calculated and applied. Said tax will be paid after the NPV of the investment has been repaid. TAX return: VAT devolutions will begin in 2018 TAX return: VAT devolutions will begin in 2018 Total tax burden ~ 27% (includes Royalty, VAT, Profit Sharing and Corporate Taxes). No windfall taxes Total tax burden ~ 27% (includes Royalty, VAT, Profit Sharing and Corporate Taxes) Background – Ecuador Mining Law 2013
  6. 6. Tax Burden-Ecuador Mining Law 2013 www.salazarresources.com | TSX-V:SRL | FSE: CCG 6 Fuente: Ministerio de Minería - Córdoba, 2016 (PREVIOUS TAX BURDEN) (TAX BURDEN) ( NEW TAX BURDEN = 27%)
  7. 7. Ecuador Projects: Curipamba (El Domo Deposit): VMS Camp Santiago: Cu-Au porphyry and hydrothermal quartz-sulphide veins. Mendez: Cu-Zn porphyry Rumiñahui - Au quartz stockwork Colombia Projects: Ramos –La Verde Project: Cu-Au- Mo porphyry and mesothermal veins with Au-Ag. Alisales Project: Quartz-sulphide veins system with Zn-Cu-Au. Project Portfolio
  8. 8. The Salazar team discovered a high grade VMS camp with gold-rich Cu-Zn VMS and structural zones. The mineralized body now has a strike length of 850m North – South and an East – West width of between 300 to 500m, with an average thickness of 10m. The body is sub-horizontal from 50m to 150m below surface. The Company completed its PEA of EL Domo on January 16th, 2015 El Domo. Curipamba Project - Deposit El Domo 850m.
  9. 9. Curipamba Project  100% owned (21,500.00 hectares)  Located in the Western Cordillera of Ecuador  2.5-hour drive from Guayaquil  20 km from Pan-American highway and 15km from high tension wires  Host to a new volcanic massive sulphide camp controlled by Salazar  43,140 m drilled in 220 holes  Extensive drilling has defined an intact, upright and only mildly disturbed Kuroko-type VMS deposit  No forests or natural reserves in vicinity LA PLATA MACUCHI CURIPAMBA
  10. 10. Curipamba Project –  Discovered El Domo in 2008  Located in Las Naves concession  El Domo remains open towards the north, east and at depth. The average drill hole spacing is approximately 50m within the El Domo.  For the resource estimate made in December 2013, a total of 31,770m were drilled in 168 holes. A total of 7736 samples were assayed.  High priority outcrop anomalies still to be drill tested 800m north from El Domo Deposit (Sesmo Anomaly)  The footwall at El Domo is a classic felsic flow dome complex, very similar to Kuroko, Tasmania and Noranda.  Phase V of drilling started on the latest part of 2016. This phase is set to complete 10,298m of which 4,000m have been completed so far. The main target is to define the El Domo deposit in all directions and to test new anomalies in the project. Fully financed by Resource Capital Fund. EL DOMO VMS Deposit
  11. 11. Lithology model Section 9558300N and Section 695050E Curipamba Project Curipamba Project – El Domo
  12. 12. Preliminary Economic Assessment The PEA evaluated the economics of an initial open pit operation followed by underground mining feeding to a conventional froth flotation plant. The report also studied several alternative sites for waste dump, tailing reservoir, processing plant and ancillary facilities while at the same time identified the most likely sources for process-water and electricity. • Mine life of 14 years split into 9 years for open pit (at 2,000 tonnes per day) + 5 years for underground mining (at 1,000 tonnes per day) • Total open pit production -which has been factored for mining extraction and mining dilution- of 6,213,029 ton with 2.06%Cu, 2.98%Zn, 0.39%Pb, 2.90 g/t Au and 57 g/t Ag. • Total waste production for open pit of 46,220,572 ton. Mining strip ratio of 7.44. • Total underground production -which has been factored for mining extraction and mining dilution- of 1,751,204 ton with 2.50%Cu, 0.14%Zn, 0.02%Pb, 0.83 g/t Au and 8.3 g/t Ag. • Pre-Operational CAPEX of US$110.3 million including studies, mine equipment, pre-stripping, processing plant, tailing reservoir, waste dump, power supply and ancillary services. • Price assumptions were US$6,750/t for Copper, US$1,900/t for Zinc, US$2,100/t for Lead, US$1,200/Oz for Gold and US$20/Oz for Silver • After-tax Net Present Value of US$86.7 million at a 10% discount rate • After-tax Internal Rate of Return of 30% • After-tax Payback of 24 months • Net after-tax cashflow of US$202.5 million Curipamba Project – El Domo Highlights:
  13. 13. El Domo Project - Mineral Resource Estimate at an NSR cut-off of US$30 per tonne (December 2013), by Buenaventura Ingenieros-BISA Notes: CIM definitions were followed for mineral resources. The Mineral Resource Estimate is based on a 3D geological modelling of the volcanogenic massive sulphide deposit (VMS). Four lithology units with a NSR cutoff of US$30 per tonne were considered as mineral resource. Metal prices used are US$2.95/lb Cu, US$0.91/lb Zn, US$0.91/lb Pb, US$1,200/oz Au, and US$20.00/oz Ag. Metallurgical recovery factors assumed were based on three domains defined by the metal ratio Cu/(Zn+Pb): Zinc Domain Cu/(Pb+Zn)<0.3: 15% Cu, 90% Zn, 40% Pb, 50% Au and 65% Ag Mixed Domain 0.3≤Cu/(Pb+Zn)≤3: 75% Cu, 50% Zn, 0% Pb, 55% Au and 65% Ag Copper Domain Cu/(Pb+Zn)>3.0: 90% Cu, 0% Zn, 0% Pb, 30% Au and 40% Ag Common industry smelter terms were assumed Bulk density was estimated based on specific gravity determinations for each lithology unit Categoria Cut-off Toneladas Cobre Zinc Plomo Oro Plata Contenido Contenido Contenido Contenido Contenido Cobre Zinc Plomo Oro Plata $ (Mt) (%) (%) (%) (g/t) (g/t) (M lbs) (M lbs) (M lbs) (ozs) (ozs) Indicado 30 6.08 2.33 3.06 0.28 2.99 55.81 312.95 409.56 37.76 584,457 10,911,281 Inferido 30 3.88 1.56 2.19 0.16 2.03 42.92 133.46 187.39 13.96 253,607 5,357,690 TOTAL 9.96 446.41 596.95 51.72 838,064 16,268,971 Curipamba Project – El Domo Preliminary Economic Assessment
  14. 14. Metallurgy - Highlights Highlights include: • Preliminary metallurgical testwork confirmed that El Domo feed is amenable for conventional flotation technology. • Testwork also confirmed the production of commercial quality flotation concentrates from "El Domo" deposit. The metallurgical performance of an efficient flotation plant has been projected in the following table. Cu, Zn, Pb, Au, Ag, Cu, Zn, Pb, Au, Ag, % % % g/t g/t % % % % % Concentrate Cu 2.46 19.7 17 1.31 8.18 748 58.2 8.24 7.67 6.16 22.6 Concentrate Pb 0.61 17.7 17 47.3 21.8 1,995 6.47 0.92 69 4.11 15.1 Concentrate Zn 9.49 1.73 45.5 0.31 14 286 19.7 85.4 6.9 40.8 33.4 Final Tail 87.4 0.15 0.31 0.08 1.83 26.9 15.5 5.39 16.4 49 28.9 Head Calculated 100 0.89 5.11 0.42 3.26 81.2 100 100 100 100 100 Concentrate Cu 7.62 21 8.51 0.94 8.77 230 75 29.8 49.6 29.3 40.8 Concentrate Zn 2.59 6.28 42 0.86 19.4 371 7.62 50 15.4 22 22.4 Final Tail 89.8 0.41 0.49 0.06 1.24 17.6 17.4 20.2 35 48.7 36.8 Head Calculated 100 2.13 2.17 0.14 2.28 42.9 100 100 100 100 100 Concentrate Cu 13.9 24.2 2.34 0.09 3.69 53.1 89.7 80.9 43.4 24.4 39.7 Final Tail 86.1 0.45 0.09 0.02 1.84 13 10.3 19.1 56.6 75.6 60.3 Head Calculated 100 3.75 0.4 0.03 2.1 18.6 100 100 100 100 100 CPO-002 (Composite Mixed) CPO-003 (Composite Copper) Products Mass Pull (%) Concentrate grade (%) or g/t Recoveries (%) Composite ID CPO-001 (Composite Zinc) Mass Pull (%), weight percentage in the concentrate, relative to the weight of the feed to the concentrator (tons of concentrate produced per 100 tons of feed processed). Concentrate grade (%), assays of concentrates. Recoveries (%), percentage of metal reporting to each concentrate relative to the metal content of the feed to the concentrator. Curipamba Project – El Domo
  15. 15. Metallurgy – Micro photography Curipamba Project – El Domo
  16. 16. www.salazarresources.com | TSX-V:SRL | FSE: CCG 16 OPEX OPEN PIT OPEX UNDERGROUND MINE Summary of Capital and Operating Costs Initial and maintenance capital costs (CAPEX) under contingency Curipamba Project – El Domo Initial and maintenance capital costs (CAPEX) under contingency
  17. 17. Pit Optimization : Optimal Cone El Domo Project « Open Pit » Pit Shell 3D Pit Shell 2D Sección 2 Sección 1 Curipamba Project – El Domo
  18. 18. TAJO ABIERTO Mass Pull year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 Zn Mineral (mt) 179,550 179,550 179,550 179,550 139,650 139,650 139,650 129,675 12,269 Cu Concentrate (dmt) 2.46% 4,417 4,417 4,417 4,417 3,435 3,435 3,435 3,190 302 Pb Concentrate (dmt) 0.61% 1,095 1,095 1,095 1,095 852 852 852 791 75 Zn Concentrate (dmt) 9.49% 17,039 17,039 17,039 17,039 13,253 13,253 13,253 12,306 1,164 Mixed Mineral (mt) 319,200 319,200 319,200 319,200 269,325 269,325 269,325 219,450 143,441 Cu Concentrate (dmt) 7.62% 24,323 24,323 24,323 24,323 20,523 20,523 20,523 16,722 10,930 Zn Concentrate (dmt) 2.99% 9,544 9,544 9,544 9,544 8,053 8,053 8,053 6,562 4,289 Cu Mineral (mt) 199,500 199,500 199,500 199,500 159,600 159,600 159,600 169,575 61,646 Cu Concentrate (dmt) 13.90% 27,731 27,731 27,731 27,731 22,184 22,184 22,184 23,571 8,569 Total t-Mineral/year procesadas 698,250 698,250 698,250 698,250 568,575 568,575 568,575 518,700 217,355 Total Cu Conc (dmt) 56,470 56,470 56,470 56,470 46,142 46,142 46,142 43,483 19,801 Total Pb Conc (dmt) 1,095 1,095 1,095 1,095 852 852 852 791 75 Total Zn Conc (dmt) 26,583 26,583 26,583 26,583 21,306 21,306 21,306 18,868 5,453 Total t-Cu+Pb+Zn Conc/year 84,149 84,149 84,149 84,149 68,300 68,300 68,300 63,142 25,329 ASSAYS Zn Mineral Cu% Zn% Pb% Au (g/t) Ag (g/t) Cu Concs 19.70 17.00 1.31 8.18 748.00 Pb Concs 17.70 17.00 47.30 21.80 1,995.00 Zn Concs 1.73 45.50 0.31 14.00 286.00 Mixed Mineral Cu Concs 21.00 8.51 0.94 8.77 230.00 Zn Concs 6.28 42.00 0.86 19.40 371.00 Cu Mineral Cu Concs 24.20 2.34 0.09 3.69 53.10 OPEN PIT Open pit – Production schedule Curipamba Project – El Domo
  19. 19. Section 1 – Optimal Cone: E-W Optimum Cone El Domo Project « Open Pit » Curipamba Project – El Domo
  20. 20. Section 2 – Optimal Cone: N-S Optimum Cone El Domo Project « Open Pit » Curipamba Project – El Domo
  21. 21. Location of alternative main structures Facilities, relaveras and desmonteras Curipamba Project – El Domo
  22. 22. Mine Design Access Ramp Solid Cut off Eq. 1.0 % Cu Ventilation Shaft Operation Ramp Topography El Domo project« Underground » Curipamba Project – El Domo
  23. 23. Exploration Ramp Longitud m Tonelaje t NSR $/t Cu % Zn % Au g/t Ag g/t 170 34,461 205.02 2.08 5.28 5.95 78.56 El Domo project« Underground » Curipamba Project – El Domo
  24. 24. A same-scale comparison of selected VMS districts. A 5 km diameter circle around each deposit shows the hypothetical area of influence of proximal-scale alteration about each deposit, all encircled by a dashed line defining the proposed extent of a regional-scale alteration system for each camp The Curipamba District has excellent potential for additional discoveries:  The Curipamba (El Domo) is the major hydrothermal centre with VMS (volcanogenic massive sulphide) mineralization in the Ecuadorian Andes  Each of these centres should contain a VMS compliment similar to that discovered in well developed districts elsewhere, typically containing at least 20 million tonnes, and possibly as much as 50mt  The Curipamba District has the potential of a further cluster of deposits that includes at least one >30Mt  The Curipamba district has all of the features of a major district, comparable in metal content to a classic camp such as in the Tasman Orogen or the Superior Province of Canada  El Domo may prove to be the most significant deposit. Such camps typically contain a minimum of 6 deposits with economic metal content. One of these is normally the “giant”, containing more than 30mt of ore.  The potential for additional discovery in the Curipamba area is excellent  The great extent of breccias present in the El Domo deposit is a testament to its being a major deposit in this district. Curipamba - VMS Districts characteristics Ref.: Observations on the Curipamba Massive Sulfide District, Ecuador Report For Salazar Resources Ltd. by James M Franklin Ph.D., P. Geo August 17, 2009 Curipamba Project – El Domo
  25. 25. Other Curipamba Targets 1. Sesmo: Hydrothermal Breccia + polysulphides, 15m @ 39.19/t Au, 741 g/t Ag in Trench. Jim Franklin suggested that there is the possibility of finding another VMS body under these Breccias. 2. El Gallo: 597m drilling in 5 holes, highlighted results: 6.95m@ 4.51 g/t Au, 157 g/t Ag in drill hole 15; 8.25m @ 5.80 g/t Au and 66g/t Ag in drill hole 16 3. Sesmo Sur: 3,746 m drilling, in 18 holes; highlighted results: 12m @ 2.25 g/t Au and 31 g/t Ag in drill hole 01; 15m @ 2.54 g/t Au and 50 g/t in drill hole 05 4. La Vaquera: Strong argillic – chlorite pyrite alteration in 1.2 x 2.5 km area 5. Agua Santa: Semi massive + jasper float, with anomalous values in Au, Cu and Zn 6. Barranco Colorado: Stockwork of pyrite + sphalerite, with traces of chalcopyrite in dacite rhyolite, and float of jasper pyrite of up to 1m diameter in an area of 0.5 x 1km. Currently, we are completing geophysical work to cover 2.5 square kilometers using Induced Polarity with positive preliminary results so far. 7. Coral (Piedras Blancas) : Approx. 2.5 km NE; intense alteration chlorite-argilic (2km x 1km), significant anomalies of Au-Ag-Cu in rocks. Sample N50, 1.01g/t Au; 4.1 g/t Ag; 0.1 % Cu; 0.33 % Zn. 2 7 6 4 3 5 1 Curipamba Project
  26. 26. Geophysical Targets + Potential Curipamba Project
  27. 27. • Au, Cu, Zn and Arsenic anomalies from soils, floats and outcrop sampling www.salazarresources.com | TSX-V:SRL | FSE: CCG 27 Curipamba Project – Barranco Colorado • Currently, we are completing geophysical work covering 2.5 square kilometers using Induced Polarity
  28. 28. Community and Social Activities The Community Relations Plan of the company approved by the Ecuadorian State, promotes a sustainable environment of good vicinity in the zone of influence of the project Curipamba, through citizen participation practices and respect to the local identity. This will enable the development of the social participation of the people and organizations and the plan is reflected in the programs, projects and activities in several fields as Culture (through sponsorship of the local Dance Group Qhuya Kawsay), Education (through scholarship programs) amongst other community activities and projects. Also, as part of the commitment with the community and the government, Salazar maintains very present its responsibility with the environment by always applying environment friendly practices and by keeping its environmental reports and permits in good standing. Reports are presented every 3 months. We perform water quality monitoring every 6 months and undergo bi-annual audits from the Government Environmental Regulatory Agency (Ministerio del Ambiente). Curipamba Project
  29. 29. Santiago Project  37 km NNW of Loja, area of 2,350 hectares  4,578m drilled in 23 holes  Comprises a large mineralized hydrothermal and Cu-Au porphyry system. In the Northeast of the concession, a controlled structurally trend of quartz-sulphides veins with high Au-Ag content.  Trend NW plus 5 vein - breccia from 1 to 5 m wide with intense mineralization of Au-Ag.  Española Vein, (3m wide) ranged from 2.3 to 34.5 g/t Au and from 26 g/t Ag to 230 g/t Ag.  Potential: more than 3 km of currently exposed veins  We have the permits for water use in the drilling phase  The Environmental Impact Study has been updated, disseminated and submitted to the Ministry of Environment on December 5th, 2012. In process of securing a new environmental license. Española Vein ESPAÑOLA VEIN
  30. 30. DDH PANAMA DDH NEWMONT DDH 2137m in 11 holes DDH 4578m in 23 holes Española Vein: (within 1 to 3 meters width) 2.0m @ 28.1 g/t Au and 231 g/t Ag 1.0m @ 26.0 g/t Au and 242 g/t Ag Structure Quartz-Tourmaline: (3 meters width) 3.3m @ 0.59 g/t Au, 36.6 g/t Ag and 390 ppm Mo Ribs Zone and Ancha Vein: (up to 5 meters width) 1.0m @ 1.29 g/t Au and >100 g/t Ag 1.0m @ 1.65 g/t Au and >100 g/t Ag Structure F.U.: (1.5 meters width) 1.40m @ 4.8 g/t Au and 378 g/t Ag 1.20m @ 6.4 g/t Au and 136 g/t Ag M6 99 - 109 10 0.21 M7 33 - 124 91 0.16 M8 85 - 327 242 0.23 M9 31 - 151 120 0.26 M11 4 - 186 182 0.12 HOLE # INTERVAL (m) WIDTH (m) Cu(%) M10 3 - 151 148 0.36 Gold in rocks > 100 ppb Copper in soil > 120 ppm Zinc in soil > 150 ppm FU 01 0.0 - 323 323 0.37 HOLE # INTERVAL (m) WIDTH (m) Au(g/t) Cu(%) 0.23 FU 02 129 - 300 171 0.50 0.33 FU 08 0 - 300 300 0.24 0.11 FU 15 0 - 72 72 0.38 0.10 FU 16 43 - 93 50 0.43 0.25 FU 18 0 - 59 59 0.62 0.06 FU 17 54 - 150 96 0.21 0.32 Cu Eq(%) 0.47 0.66 0.27 0.35 0.53 0.47 0.46 Santiago Project Au, Ag & Mo Values
  31. 31. Cross Section 683830E (N-S) Structure F.U. (1.5m width) 6.4g/t Au and 136 g/t Ag 37m@0.18%Cu 91m@0.16%Cu OPEN MINERALIZATION 148m@0.36%Cu 10m@0.21%Cu 342m@0.23%Cu Santiago Project
  32. 32. Sample Sector Width (m) Au (g/t) Ag (g/t) As (g/t) Hg (g/t) Mo (g/t) Sb (g/t) 150556 Veta Ancha 1.9 1.19 14.3 76 -1 296 -5 150557 Veta Ancha 3.3 0.59 36.6 31 -1 390 -5 150558 Española Vein 1.2 1.22 22.0 573 4 5 72 150559 Española Vein 1.0 0.39 6.0 866 1 7 47 150560 Española Vein 1.0 18.20 251.7 626 24 7 344 150561 Española Vein 1.0 0.25 4.9 1275 2 7 79 150562 Española Vein 1.0 1.19 13.0 640 2 3 45 150563 Española Vein 1.0 25.97 242.0 1035 38 7 511 150564 Española Vein 1.0 0.78 5.7 975 2 4 186 150565 Española Vein 0.5 4.85 442.0 906 13 7 1004 150566 Española Vein 0.5 8.30 79.3 803 20 10 372 150570 Ribs 3.0 0.17 69.2 1471 1 2 478 150571 Ribs 3.0 0.18 28.2 851 -1 -2 165 150572 Ribs 4.0 0.06 2.4 314 -1 2 63 2216 Ribs 1 1.29 >100 244 8 1 134 2217 Ribs 1 1.65 >100 301 11 1 103 150573 Veta Ancha Creek 3.0 0.28 6.6 1391 -1 7 106 150574 Veta Ancha Creek 10.0 0.20 2.0 350 1 57 35 2214 Quartz -Alunite Breccia 1 0.57 2.7 248 3 59 831 2215 Quartz -Alunite Breccia 1 0.47 2.1 492 <1 40 20 Outcrops Results SRL Santiago Project
  33. 33. Previous Results g/t g/t Santiago Project
  34. 34. Samples Location Española VeinFierroUrco Structure Ribs Zone Silver Values Española VeinFierroUrco Structure Ribs Zone Gold Values Santiago Project
  35. 35. Mendez Property Highlights: Two concessions that cover a total area of 9,500 hectares in the Province of Morona Santiago Cu-Zn-Mo (Gold) porphyry system Copper mineralization is associated with 2- 3% sulphides and multi-directional veinlets in a granodioritic to quartz diorite composition of a complex porphyritic events Mineralization also occurs in schist with strong pyrite mineralization
  36. 36. Rumiñahui Property Highlights: Two concessions that cover a total area of 2,910 hectares of prospective Au-Cu- Ag targets Located approximately 100 km northwest of Quito Main targets identified to date are the original discovery areas previously worked by artisan miners Gold values from rock chip and channel sampling have returned grades of up to 2.7 g/t Au over 55m, 3.4 g/t Au over 8m and 1.3 g/t over 9m
  37. 37. Future Concessions - Ecuador • Salazar is actively bidding in approximately 45,000 hectares for new and prospective concessions offered in Ecuadorian territory. These solicitations have been carefully analyzed by our technical team through historical data, geologic studies, field work and rock and sediment sampling. www.salazarresources.com | TSX-V:SRL | FSE: CCG 37 PANNING Au
  38. 38. COLOMBIA PROJECT HIGHLIGHTS • 22,000 Hectares in process of solicitation near the border with Ecuador • 17,300 hectares of these are located in the Nariño Department in the SW of Colombia (Ramos-La Verde Alisales) • A Cu-Mo district of porphyries and mesothermal veins with significant values of Au –Ag Previous Studies: JICA (Japan International Cooperation Agency) 1980 - Soils anomalies from 200 to 900 ppm Cu - River sediments anomaly of up to 300 ppm Cu - One trench with 20m @ 0.296% Cu & 60 ppm Mo - Piedrancha is a mesothermal vein area with high content of Au-Ag-Zn. It lies within an area of 10km x 15km March 2012 www.salazarresources.com | TSX-V:SRL | FSE: CCG 38
  39. 39. • 17,300 hectares (in claims), located in the Nariño Department in the SW of Colombia, belongs to the Occidental Andes Mountain Range. • A Cu-Au-Mo district of porphyries and mesothermal veins with significant values of Au-Ag-Zn. Within volcanic-sedimentary and tertiary intrusive rocks. Similar Deposits and Projects • Junín Deposit (Codelco-Enami), con 982 Mt @ 0.89% Cu and 0.04% Mo. Located 100km SW of the property. • Cascabel Project (SolGold-Cornerstone), hole 09 with 1050m @ 0.68% Cu and 0.92 g/t Au. Located 50km SW of the property Ramos – La Verde Project Highligts Colombia Projects
  40. 40. La Verde Anomaly Ramos – La Verde Project Ramos Results SRL Sample Type Au (ppm) Ag (ppm) Cu (ppm) Mo (ppm) Zn (ppm) 103153 Stream Sediment 0.846 <0.2 132 3 56 103154 Stream Sediment 0.331 <0.2 207 7 49 103155 Stream Sediment 1.060 <0.2 61 <1 68 103156 Stream Sediment 1.220 <0.2 72 <1 98 103168 Stream Sediment 4.290 0.2 155 6 68 103169 Stream Sediment 1.960 <0.2 142 5 57 103199 Float 1.940 18.5 >10000 14 1050 103209 Stream Sediment 0.252 -0.2 76 3 82 103221 Outcrop 2.073 0.7 34 6 36 103224 Outcrop 0.328 1.9 2483 7 >10000 Colombia Projects
  41. 41. La Verde Anomaly Colombia Projects
  42. 42. Colombia Projects
  43. 43. Colombia Projects
  44. 44. Colombia Projects
  45. 45. Alisales Project Highligts • 2600 hectares, located in the south-east of the Nariño Department. • It is a quartz-stockwork veins system, with high contents of Au-Ag-Cu-Mo. • A small mine produced cooper concentrates during the 1980’s. •SRL results Sample Type Width (m) Au (ppm) Ag (ppm) Cu (ppm) Mo (ppm) Zn (ppm) 103238 Steam Sediment 0.904 0.4 58 2 90 102656 Outcrop 1.80 0.284 55.4 45400 384 14 102657 Outcrop 1.70 0.302 57.8 33700 399 59 102658 Outcrop 30.00 0.429 84.0 56400 5 8 102662 Outcrop 1.20 11.740 58.3 2069 5 7 102664 Outcrop 22.920 248.7 19800 5 9 102666 Outcrop 1.80 42.750 119.3 77500 210 24 102667 Outcrop 1.20 0.407 24.6 27000 7153 25 102668 Outcrop 1.20 1.033 25.2 26300 1517 54 102669 Outcrop 2.50 0.095 39.5 21400 38 23 102670 Outcrop 2.50 0.064 85.5 42400 26 10 102671 Outcrop 43.00 1.098 36.1 15900 8 31 103578 float 0.30 x 0.50 0.573 17.3 12000 10 21 103588 Outcrop 1.20 2.087 24.0 2318 6 10 103599 Steam Sediment 1.888 0.7 54 6 81 103600 Steam Sediment 1.609 1.3 43 5 74 Colombia Projects
  46. 46. • Mining Concession Title prior to beginning activities. • Max. 10,000 hectares per concession. • Mining titles with a 30 years renewable for an equal period upon request. • Annual Maintenance Cost per concession (Canon): Equivalent to a minimum wage one day’s work per hectare / year. (Approx. USD $ 10). • “Paramo/Highlands” law: No mining activity over the 3000 m.s.n.m. Colombia Mining Law Highlights
  47. 47. Corporate Office: 1305-1090 W. Georgia Street Vancouver BC Tel: +1 604 685 9316 info@salazarresources.com Ecuador Office & Investor Relations: Av. 10 de Agosto N37-232 y Villalengua Edif. Cominesa of. 31, Quito Tel:+593-2-227-8975 Ext. 103 Fax: +593-2-227-8975 +102 info@salazarresources.com Contact Information

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