Cautionary Statements

Transcription

1 May 2013

2 Cautionary Statements This presentation is for informational purposes only and does not constitute an offer to sell or solicitation to buy the securities referred to herein. Certain statements contained herein, as well as oral statements that may be made by Western Pacific Resources Corp. (the Company or Western Pacific ) or by officers, directors or employees of the Company acting on its behalf, that are not statements of historical fact, may constitute forward-looking statements and are made pursuant to applicable and relevant national legislation in countries where the Company is conducting business and/or investor relations. Forward-looking statements, include, but are not limited to those with respect to the price of gold, the timing and amount of estimated future success of exploration activities, the Company s currency fluctuations, requirements for additional capital, approximate cash position, government regulation of mining operations, and environmental risk. Often, but not always, forward-looking statements can be identified by the use of words such as plans, expects, does not expect, is expected, targets, budget, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or equivalents or variation, including negative variation, of such words and phrases, or state that certain actions, events or results, may, could, would, might or will be taken, occur or be achieved on a certain timeline. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the availability of funds, the financial position of Western Pacific, the timing and content of work programs, results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations if included, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions. There can be no assurance that forward looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Except as may be required by applicable law or stock exchange regulation, the Company undertakes no obligation to update publicly or release any revisions to these forwardlooking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements. THE COMPANY HAS NOT ESTABLISHED A MINERAL RESOURCE ESTIMATE FOR THE DEER TRAIL MINE NOR HAS IT MADE A PRODUCTION DECISION WITH RESPECT TO SUCH PROJECT. Qualified Person Under the terms of NI , Clancy Wendt, P.Geo., is Western Pacific's Qualified Person, and has reviewed and approved the technical disclosure contained in this presentation. 2

3 Management & Board Michael Callahan, President Mr. Callahan served as Vice President of Hecla and President of Hecla s Venezuelan Operations from 2006 to Joining the company in 1989, he held various positions at the company including Vice President of Corporate Development. Between December 2009 and July 2012 he served as President of Silvermex Resources Ltd. (TSXV: SMR), until the company was acquired by First Majestic. Warwick Smith, CEO & Director Mr. Warwick Smith has worked as a corporate development specialist for various public companies since 1999, including investor relations for Fortuna Silver Mines and Northland Resources. Mr. Smith co-founded and provided corporate development services to Riverside Resources Inc. (TSXV: RRI) in After developing a team and securing financing, Riverside Resources was listed on the TSX Venture Exchange in August During his tenure Mr. Smith and the team at Riverside Resources successfully raised financing from numerous key strategic shareholders. Arthur Brown, Chairman & Director Mr. Brown served as CEO and Chairman of Hecla until retiring in During his 39 year tenure at Hecla he held many senior positions in operations, becoming the company s President in 1986, and Chairman and CEO in Mr. Brown serves as a director on the board of AMCOL International Corporation (NYSE: ACO) where he also serves as a member of the audit and compensation committees. Mr. Brown is also a director of the Idaho Independent Bank. He is a former Director of the National Mining Association and served as a Director of The Gold Institute and The Silver Institute (Past President). Eric Saderholm, Vice President, Exploration & Director Mr. Saderholm has over 25 years of experience in the minerals industry with leadership in exploration, project development, property management and mining. He has been integral to geologic teams that added over 18 million ounces of gold to reserve bases in Nevada, Washington and Peru. Mr. Saderholm was Vice President, Project Development at US Gold from August 2006 until early Prior to that position, he was at Newmont Mining Corp for 12 years where his final position was Carlin Trend Exploration Manager, Regional Geologist. At Newmont, he also held the positions of Chief Geologist at the Phoenix Mine, Lone Tree Complex and Mule Canyon Mine, all located in Nevada as well as Project Manager, Grupo Carachugo, Peru. Douglas Ford, CFO (CFO of Rockgate Capital, Rockridge Capital, Falkirk Resources) Ralph Rushton, Director (VP Corporate Dev. Radius Gold and Investor Relations Gold Group) Michael Williams, Director (Currently President of Full Metal Minerals, formerly Chairman of Underworld) Brent Cook, Advisor (Exploration Insights Newsletter and Mining Consultant) Ron Parratt, Advisor (Currently Executive Chairman of Renaissance Gold, formerly President/CEO of AuEx Ventures) Dr. James Beesley, Advisor (President of Transformative Ventures, Founder of Sequoia Partners) 3

4 Share Structure Share Structure Shares Issued 29,096,128 Warrants 2,272,500 ($0.75) Options 2,935,000 ($0.195-$0.57) Fully Diluted 34,303,628 Cash & Trading Stats Daily volume (last 3 mths) 106, week trading range $ TSX-Venture: WRP.V OTC: WRPSF 4

5 Investment Case Western Pacific has signed an Acquisition Agreement to acquire 100% of the Deer Trail Mine (DTM) for $7 million over 2.5 years from Unico, Inc. (DTMC) Deer Trail is a permitted Mine with extensive infrastructure in place including a 250 tpd capacity flotation mill- three main areas include Upper Deer Trail Mine, 3400 (Lower Deer Trail Mine) and 8600 (Lower Deer Trail Mine) Deer Trail is located in Piute County, Utah, 5 miles SSW from Marysvale Targets include disseminated gold, high grade gold veins, mantos, skarn, & porphyry Vastly under-explored, under-drilled: upside from exploration potential on property, including a Moly-Porphyry target (several fluorite veins in Lower Mine, bi-modal volcanism as indicators) Western Pacific has an approx market cap of $0.155 X 29,096,128 shares= $4.5 million market cap Michael Callahan (President) and Arthur Brown (Chairman), former Hecla Mining and Silvermex Executives, joined Western Pacific in Feb 2013: Strong senior management team with the ability to raise capital, manage technical and engineering risks, and create shareholder value 5

6 Deal Structure Pursuant to the Agreement, the Company will pay to Unico (DTMC) a total of $7 million (Canadian) over 2.5 years as follows: on closing, $1,825,000 in cash; on closing, the transfer of the Company s Bombardier property, which the parties have assigned a value of $1,500,000; twelve months after closing, $2,000,000 subject to acceleration of payment if the mine is in commercial production; and thirty months after closing, $1,675,000 subject to acceleration of payment if the mine is in commercial production. The Company will retain a right of first refusal for 36 months after closing in respect of a proposed sale of the Bombardier property by DTMC to a third party. If DTMC sells the Bombardier property after the 30 th month following closing for less than $1,500,000, the Company will pay DTMC a make whole payment equal to the difference between the sale price and $1,500,000. The Company may elect to satisfy up to 25% of the total post-closing payments of $3,675,000 and 25% of any make whole payment in its common shares, where the number of shares will be calculated based on 85% of the twenty day volume weighted share price. The closing of the acquisition is subject to customary closing conditions, including the acceptance of the TSX Venture Exchange. 6

7 Deer Trail Photos 7

8 8 Photo provided by Dreamcastar Video Productions

9 9

10 Location Mining in Utah provided $3.5 billion to Utah s economy in 2012, making the state s mining industry the nation s seventh largest * Source: 10

11 Claim Map All weather road access to Highway 89, major rail arteries within 75 miles, plus Interstate Highways 15 & 70 within 30 miles 11

12 Introduction to the Deer Trail Mine, Utah Deer Trail consists of polymetallic mineralization with silver, gold, copper, lead and zinc payables. (Tellurium also documented through sampling) Located in Central Utah- 5 miles SSW of Marysvale at the eastern base of the Tushar Mountains- 165 miles SSW from Salt Lake City Large Scale Mining permit issued by Utah Div. of Oil, Gas & Minerals 3,275 acres includes 250 tpd flotation mill, extensive mining facilities (5.12 square miles)- 200 claims with 30 patented and 170 unpatented- mill produced at a rate of tpd in 2008 Historic production dates back to the late 1800 s with grades as high as 1.38 opt Au 15 opt Ag 12% Zn, 5% Pb, 0.6% Cu (Refer to Slide 21 for tonnage and grade) *non NI

13 Introduction Cont. Mill complex (250 tpd flotation mill and crusher) and fully equipped laboratory built in early part of 2000 s Developed network of timbered and ventilated tunnels with shafts and tracks for ore cars extends more than five miles Both ownership of and leasehold interests in significant water rights Excellent access to interstate highways and major rail arteries- all weather road to US Hwy 89, Interstate 70 & 15 within 30 miles from mine- Major railroad 75 miles from site Regional Supply and service center half hour from property NSR royalty due to Crown Mines (5% on gold and 3% on all other minerals and hydrocarbons) Mill Lower Mine Upper Mine 13

14 Schematic Model of Carbonate Replacement Deposits (CRD) If DTM is following the model, general location of discovery zone at the above 14

15 Infrastructure Property includes mine dumps and tailings Permits, water rights (year round water supply) and infrastructure in place Flotation Mill (250 tpd) Crusher General Office Assay Lab and Core Sampling Facility Substation on regional electric grid Two battery locomotives and thirteen 1.5-ton ore cars An engine storage and charging house Miners locker room Compressor building Portable drill Two front end loaders Three dump trucks 15

16 Infrastructure- Mill, Lab and Offices Thickener & Cyanide Circuit Sample Prep Ore Bins Mill & Offices 16

17 Infrastructure- Mill, Cyanide Circuit and Stockpiles Thickener & Cyanide Circuit Offices Mill Ore Bins 17

18 Infrastructure- Lower Mine Complex Offices Miners Dry Mine Portal (PTH) & Lamp Room Compressor Shed Locomotive House Tipple 18

19 250 tpd Flotation Mill 19

20 Production History Summary of the Most Productive Periods of the Upper/Lower Deer Trail Mine Mine Area Period Tonnage Au Ag Zn Pb Cu Upper Mine , opt opt NA 3.26% NA 3,400 Area (Lower Mine) ,226 of 25, opt opt 7.45% 2.96% 0.52% 8,600 Area (Lower Mine) , opt opt 12.00% 5.00% 0.60% Source: Unico Inc Annual Report Feb 28, 2010 In 1945 the PTH Tunnel was started to explore for the faulted extension of the Deer Trail mineralized body. The 3,400 mineralized body was discovered and a total of 5,000 tons averaging 0.19 opt Au, opt Ag, 6.26% Zn, 2.84% Pb & 0.76% Cu were shipped By 1964 the PTH Tunnel intersected the offset part of the Deer Trail mineralized body and between 1964 and 1981 this 8,600 Area produced 100,000 tons of unoxidized sulphide materials averaging 0.10 opt Au, 15 opt Ag, 12% Zn, 5% Pb & 0.6% Cu The PTH Tunnel travels over 10,000 feet with a developed network of tunnels, shafts and raises, and was mined extensively for Au and Ag for 2o years 20

21 Assay Lab 21

22 Underground Development Upper Deer Trail 6,000 ft of development Lower Deer Trail (3,400 Area) 5,000 ft of development Lower Deer Trail (8,600 Area) 10,000 ft of development 22

23 3,400 Area Sample Semi-oxidized Callville Limestone-hosted Mineralization 23

24 8,600 Area Samples Samples from Massive Manto Sulphide Portion of Toroweap Sandstone-hosted Mineralization 24

25 Targets and Geology Targets include disseminated gold, high grade gold veins, stock dykes, mantos, skarn, and mineralization Au, Ag, Cu, Mo, Pb, Zn, and possibly Te and Ir More than 20 Ag/Au-rich poly-metallic mantos several inches to five feet thick in Pennsylvanian Callville Formation Historically prolific Mississippian Redwall Limestone underlies Callville Formation & is virtually unexplored Tellurium (Te) and indium (Ir) potential Tellurium is an extremely rare element and a key component of cadmiumtelluride photovoltaic cells Indium is a very high-unit value element used in high-demand computer and television flat-panel LCD displays 25

26 Targets and Geology Disseminated Gold, High Grade Gold Veins, Mantos, Skarn? Mantos Extensions & Stacked Mantos Stacked Mantos, Massive Skarn Stock Dike Contact Skarns 26

27 Exploration and Development Potential Target Areas Mantos Open at Depth No systematic exploration above Upper Mine Manto 3,400 intersected while driving level to Lower Manto in 8,600 area- no systematic exploration at depth Additional prospective units lie down section from the Callville host of the 3,400 Manto 27

28 Exploration and Development Potential Eventual expansion of mill beyond 250 tpd Potential to expand current known mineralization in Upper and Lower Mines through underground and surface drilling Planned sampling and exploration of old tailings material Potential target 800-2,000 ft below historic mine area for Mississippian Redwall Limestone Mineralization- Mississippian of Western US hosts many 5-40 million ton Ag-Au rich polymetallic mantos Possible large Moly- Porphyry target as indicated by alteration patterns, geochemistry and structural features Range-front gold and silver targets including the Close-In alunite zone 28

29 Deer Trail Mine History Deer Hunters discovered the property through outcrop in ,000 tons of material were mined 1918 a small mill was installed and between ,000 tons of predominantly oxide material averaging 1.38 ounces per ton gold, ounces per ton silver and 3.26% lead was mined- over 200,000 Au oz and 1.5 million Ag oz were produced from primarily oxide mineralization Mining Activity was almost continuous from the turn of the century to 1981, with stoppage due to a lack of mill and smelter recipients (Miners had undertaken to follow the mineralization ) More recent production ceased due to prolonged depressed metal prices and general mis-management Previously explored by Arundel Mining, Noranda, Goldfields, Phelps Dodge, Battle Mountain Gold and Cominco American 29

30 Contact Details W Georgia Street Vancouver, B.C. Canada V7Y 1G5 Phone: For more information please contact CEO Warwick Smith w@wrpv.ca or Investor Relations Erin Ostrom erin@wrpv.ca Rob Gamley (Contact Financial)