Cautionary Statement Regarding Forward Looking Statements

Transcription

1 MAY 2017

2 Cautionary Statement Regarding Forward Looking Statements Caution Regarding Forward Looking Information: This document contains forward-looking statements or forward-looking information under applicable Canadian securities laws (hereinafter collectively referred to as forward-looking statements ) concerning the Company s plans for its properties, operations and other matters. Any statement(s) that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as expects or does not expect, is expected, anticipates or does not anticipate, plans, estimates or intends, or stating that certain actions, events or results may, could, would, might or will be taken, occur or be achieved) are not statements of historical fact and may be forwardlooking statements. Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks relating to the Company s ability to raise funding to continue its exploration and development activities; risks relating to the uncertainty of applications to obtain, extend, maintain or renew licenses and permits to continue exploration and development of the Company s projects; risks relating to potential challenges to the Company s right to explore and/or develop its projects; risks related to environmental regulation and liability; risks associated with failure to maintain community acceptance, agreements and permissions ( social licence ); risks relating to fluctuations in foreign currency exchange rates, interest rates and tax rates; political and regulatory risks associated with mining and exploration; risks related to gold, silver, base metal and other commodity price fluctuations; and risks and uncertainties relating to the interpretation of drill results and geology. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. The foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.

3 Condor Resources - Company Highlights Condor is a project generator focused exclusively on precious and base metals exploration in Peru. Our objective is the discovery of a major new precious and/or base metals deposit. Excellent portfolio of ten discovery stage properties, four of which are subject to production lease or earn-in agreements. Sandstorm Gold Ltd. recently became a significant shareholder approximately 7% - and purchased a package of royalty assets, including a 0.5% NSR on six of our early stage projects. Production royalty agreements are in place on the Lucero and Chavin projects, with combined annual minimum payments to Condor of US$100,000. Three new projects acquired in 2016 by staking and are 100% owned, subject to Sandstorm s 0.5% NSR. A 4 hole, 2,807m drill program at the Soledad project in June 2016 returned compelling results, including a 290m interval from surface of 2.1 g/t AuEq. Committed to a high standard of community & social responsibility. 3

4 Experienced and Lean Management Team Management Lyle Davis, President/CEO P. Eng, MBA, over 25 years of financial markets and public company management, including corporate finance with Ernst & Young, and C.M. Oliver and Company, both in Vancouver, and prior thereto, with the Vancouver Stock Exchange. Ever Marquez Amado, VP Exploration Exploration geologist with more than 26 years of mineral exploration. Previously the Senior Regional Exploration Geologist for the Andes at Newmont Peru, and recipient of Newmont Exploration s Global 2006 discovery recognition award for the Breapampa discovery, now in production. Graham H. Scott, Corporate Secretary & Director Associate Counsel at MOI Solicitors, and former Principal of VECTOR Corporate Finance Lawyers. Directors Graham Scott, Director Lyle Davis, Director Paul Larkin, Director Robert Boyd, Director Francisco de Undurraga, Director Technical Advisory Board David Moore, P. Geo. John Watt, C.A. Veljko Brcic Jonathan Younie, Chief Financial Officer Over 15 years accounting and finance experience with public and private companies. 4

5 EXCLUSIVELY IN PERU: TEN QUALITY PROJECTS Four projects in Ancash: Chavin is subject to production lease that pays Condor an annual royalty. Soledad is 100% owned, and optioned to Chakana Resources, with mandatory 3000m drill program. Ocros is 85% owned, and optioned to Compañia Minera Virgen de la Merced SAC, with mandatory 2000m drill program. Quriurqu is available for j.v. One project in Huanuco Huińac Punta acquired in 2016, available for j.v. One project in Ica Pucamayo our holdings have increased from 19 to 113 sq km, available for j.v. Humaya project in Ayacucho available for j.v. Two projects in Arequipa: Lucero is subject to production lease that pays Condor an annual royalty. San Martin is available for j.v. One project in Puno Quilisane available for j.v. recently acquired, and

6 Ocros: Copper-Gold-Silver Porphyry project, with abandoned underground workings from the 1950s The historic Eldorado mine, circa 1950s, located on the Ocros concessions, mined high grade copper veins, in an era that preceded the copper porphyry model. A total of 62 horizontal adit wall channel samples with an average weight of 2.2kg were collected over the entire length (326m) of the 200 Level Adit when it was reopened in The sample results yielded 0.68% copper over 326m, including a 141m interval of 1.1% copper at the western end of the adit. The 200 Level Adit entrance is over 1 km east & and about 300m lower than the nearest of seven drill holes completed by Condor in 2007/2008. The closest 2008 drill hole ended at a depth of 400m, and reported 251m of 0.15% Cu from 150m to 400m, which included 54m of 0.41% Cu at the bottom of the hole the closest drillhole interval to the 200 Level Adit. Concessions to the south are held by Compañia Minera Virgen de la Merced S.A.C. ( Merced ). Merced have an option to earn a 70% interest in the Ocros concessions over 4 years by making cash payments of US$550,000 and completing 10,000m of diamond drilling, or work equivalent. Merced have a mandatory 2,000m drill program which is expected to start in Q

7 Ocros cross section showing location of drill hole OCR-001 (2008) relative to the underground workings from the 1950s.

8 Ocros: Copper-Gold-Silver Porphyry Project Abandoned Structures from the historic Eldorado Mine at Ocros 8

9 Chavin: host to a major polymetallic vein system, with evidence of small scale exploitation since the colonial era A production royalty agreement at Chavin was concluded in late 2015 with Compañia Minera Casapalca S.A., with a 3% NSR payable to the Condor, subject to annual minimums. Sandstorm Gold Ltd. purchased a 50% interest in the Chavin royalty, commencing in The principal vein at Chavin is exposed at surface for over 1km, with widths from 2m to 5m. Sampling of the vein has shown anomalous to high values of gold, silver, lead, zinc & copper. The production royalty agreement mandates a diamond drill program of at least 1,000 meters. Casapalca have concluded community agreements, filed for a drill permit, and we anticipate they will be drilling at Chavin in the third quarter of of Primary focus of the drill program will be to test the extent and grade of the principal vein to depth.

10 Soledad Copper/Gold/Silver prospect with very encouraging results from previous drill programs; more drilling in 2017 Compañia Minera Casapalca S.A. completed a four hole, 2,804m drill program in June of results included 119m from surface of 2.1 g/t AuEq, 164m from surface of 1.5 g/t AuEq, & 290m from surface of 2.1 g/t AuEq. (drillholes SDH-013, 014, and 016, respectively) Mariana Resources completed a 12 hole, 2084m program in 2014, with notable results including 161m of 2.1 g/t AuEq in drillhole SDH-012 and 174m of 4.4 g/t AuEq in drillhole SDH-009. The drilling to date supports the concept that the cluster of exposed breccias is underlain by a mineralized porphyry system. Soledad is a 100% owned, 7.39 sq km property, located in the central Peruvian Andes about 34 km south of Barrick s Pierina mine. Chakana Resources S.A.C. have an option to earn a 100% interest in Soledad (subject to a 2% NSR retained by Condor) over the next 4.5 years by completing 12,500m of drilling and making cash payments to Condor of US $5.375 million. Chakana s mandatory 3,000m drill program mandatory expected to commence in Q

11 Hole From SDH includes 59 To SDH includes 119 includes includes Width Au g/t Ag g/t 119 1,30 27,1 59 1,79 32, SDH-015 0,42 0,69 0,37 Cu % 0,32 0,48 70,0 1666,0 15,2 Mo g/t AuEq g/t** 2,1 2,8 0,13 1,81 0,05 0,34 1,5 25,1 0,6 n/a n/a , : 4 drillholes n/a No significant results SDH ,74 30,3 0,39 includes ,04 33,5 0,47 includes ,30 25,8 0,28 ** assumes $1200 Au, $16.00 Ag, $2.10 Cu, 100% recovery. 1,6 2,1 1,0 No significant results From surface to 164m: 0.42 g/t Au; 70 g/t Ag; 0.13 % Cu; From surface to 119m: 1.3 g/t Au; 27.1 g/t Ag; 0.32 % Cu; 2.1 g/t AuEq L18500E L17700E 1.5 g/t AuEq SDH-016, Breccia 1 LEGEND From surface to 490m: 0.74 g/t Au ; 30.3 g/t Ag; 0.39 % Cu; 1.6 g/t AuEq Includes from surface to 290m: 1.04 g/t Au; 33.5 g/t Ag; 0.47 % Cu; 2.1 g/t AuEq SDH-016, Potassic core Drilled Holes 2016 Traces Condor Resources Inc. SOLEDAD SOLEDADPROJECT PROJECT DRILL HOLE MAP meters Projection: UTM Zone 18. Southern Hemisphere (WGS 84)

12 HOLE No UTME UTMN ALT AZ DIP DEPTH SDH SDH ,5 SDH SDH ,5 SDH ,5 SDH SDH ,5 SDH SDH SDH ,5 SDH ,5 SDH , g/t Au; 33 g/t Ag 2014: 12 drillholes 3.9 g/t Au & 13 g/t Ag Image SDH % Cu, 0.9 g/t Au & 15 g/t Ag 19 g/t Ag 0.4% Cu, 1.3 g/t Au & 13 g/t Ag 1.2% Cu, 0.7 g/t Au, 114 g/t Ag 19 g/t Ag LEGEND 0.10 g/t Au; 11.2 g/t Ag;0.19%Cu meter s 1.0% Cu, 3.4 g/t Au & 23 g/t Ag Drilled Holes Traces Condor Resources Inc. SOLEDAD PROJECT 2014 DRILL HOLE MAP & SIGNIFICANT RESULTS TSXV : CN Projection: UTM Zone 18. Southern Hemisphere (WGS 84)

13 Lucero: High Grade Gold-Silver, ore source for the Shila Mine Leased to Compañia Minera Casapalca S.A. of Lima A production royalty agreement at Lucero was concluded in late 2015 with Minera Casapalca, with a 3% NSR payable to the Company, subject to a minimum annual royalty of US$75,000. Sandstorm Gold Ltd. recently purchased a 50% interest in the Lucero royalties, commencing in sq km of concessions, located in southern Peru, about 22 kilometres south of Buenaventura s Orcopampa mine, and 100% owned by Condor. Lucero covers what is known as the Shila Mining Camp, which had several precious metal vein mines, including the Sando Acalde, Pillune and Apacheta-shila. Buenaventura were extracting ore from 1990 until 2006, and processing it at a small plant east of the concessions. Public production numbers for Shila from 1998 through 2005 show the 7 year average mined grade was 14.1 g/t Au, and 373 g/t Ag. Annual production averaged 18,819 oz gold, and 435,953 oz silver. We believe that potential remains for the discovery of additional high grade ledges in the high sulphidation area, and high grade ore shoots in the 3 former producing mines and in the numerous other veins and structures located on the property. Minera Casapalca are negotiating community agreements, and are required to complete 1000m of drilling. 13

14 Pucamayo: Gold-Silver project, Central Peru Strategic 3 sq km concession (Anta Rumi 101) acquired by staking in early sq km concession (Sandra IMG) acquired at no cost in late 2015, bringing area to 19 sq km. Concession swap in 2016 increased total area to 113 sq km. Epithermal disseminated precious metals mineralization at Pucamayo East occurs in vuggy silica and hydrothermal breccias out-cropping in a partially exposed erosion window below an advanced and granular silica cap. Condor geologists recently identified a porphyry target, which is coincident with a 600m diameter high chargeability anomaly and anomalous gold and copper values. original 15 sq km 14

15

16 As of May 26, 2017 Share Structure Shares Outstanding: 102,057,308 Options: 5,185,000 Warrants: 16,816,667 Fully Diluted: 124,058,975 Working Capital* (November 30, 2016): - $77,000 *Subsequent to November 30 th, the Company received net proceeds of $1.0 million from a private placement and royalty sale with Sandstorm Gold Ltd., $150,000 from warrant exercise, and US$100,000 from option payments at Soledad and Ocros. MAJOR SHAREHOLDERS INSIDERS 20.5% SANDSTORM GOLD 6.5% FRIENDS & FAMILY 6.5% 16

17 The Sandstorm Gold Ltd. Financing of January 2017 The Company concluded a $1 million financing with Sandstorm Gold Ltd. in January 2017 consisting of an equity financing and the sale of a package of royalty interests. The equity financing consisted of a $500,000 private placement of units at $0.075, with a five year warrant priced at $0.15. The package of royalty interests included the following: the purchase by Sandstorm of 50% of Condor s production royalty at Lucero, commencing in 2019; thereafter each party will hold a 1.5% NSR. the purchase by Sandstorm of 50% of Condor s production royalty at Chavin, commencing in 2019; thereafter each party will hold a 1.5% NSR. the purchase by Sandstorm of a 0.5% NSR on 6 of Condor s early stage projects, namely Huiñac Punta, Quriurqu, Humaya, San Martin, Quilisane, and Pucamayo. the right to buy the 1% NSR on the Ocros project held by the original vendor of the Ocros project. the right to buy the 1% NSR on the Pucamayo 14 concession held by the original vendor of this concession. Pucamayo 14 represents 6% of the total area of the Pucamayo project.

18 Moving Forward Capital Preservation: Leverage on our ability to secure quality projects in Peru. Advance projects internally with early stage exploration. Find partners and form joint ventures to complete more advanced exploration programs. Ocros project: Drill permit in place, and drilling expected to start in June Systematic channel sampling of old adit yielded 326m of 0.68% copper over its length; last mined in the 1950s by Hochschild. Compañia Minera Virgen de la Merced SAC have an option to earn up to a 70% interest in the Ocros concessions. Chavin project: Mining Lease signed in November 2015 with Compañia Minera Casapalca SA: 3% NSR, with annual minimum. Casapalca has concluded community agreements, and filed for a drilling permit. We anticipate Casapalca will be drilling at Chavin in the third quarter of Soledad: Very encouraging results from the first phase drill program in 2014, and the second phase drill program completed in Drilling confirms the presence of a breccia-porphyry complex, and we believe this complex is centered at the Soledad project. Option agreement concluded with Chakana Resources S.A.C. in April 2017; drilling in Pucamayo: Quality early stage Gold-Silver project, recently expanded from 19 sq km to 113 sq km. 18

19 Contact Information Head Office Condor Resources Inc. Suite 520, 800 W. Pender St. Vancouver, BC, Canada, V6C-2V6 Phone: // Lyle Davis, President/CEO Lima Office Av. Javier Prado Este No. 1184, Office 302 San Isidro, Lima 27, Peru Ever Marquez, VP Exploration Renmark Financial Communications Inc. Barry Mire, Phone: