SALAZAR RESOURCES LIMITED ECUADOR'S FAVORITE EXPLORER
El DOMO: PATHWAY TO CASHFLOW IN 2026
Q1 PDAC - 2024
PROVEN TRACK RECORD
LOCAL KNOWLEDGE + EXPERTISE
NEW PORPHYRY AND VMS POTENTIAL
COST EFFECTIVE NEW DISCOVERIES
DISCLAIMER
FORWARD - LOOKING INFORMATION
This presenta�on contains "forward-looking informa�on" within the meaning of applicable Canadian securi�es laws. Forward-looking informa�on is based on the beliefs, expecta�ons and opinions of the management as of the date the statement is published, and assumes no obliga�on to update any forward-looking informa�on, except as required by law. In certain cases, forward-looking statements can be iden�fied by the use of words such as "plans", "expects", "outlook", "guidance", "budget", "scheduled", "es�mates", "forecasts", "intends", "an�cipates" or "believes", or varia�ons of such words and phrases or statements that certain ac�ons, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved" or the nega�ve of these terms or comparable terminology.
Forward-looking informa�on relates to future events or future performance and reflects Salazar Resources Ltd.'s (or the "Company") management's expecta�ons or beliefs regarding future events including, but not limited to, statements and informa�on related to the results of the feasibility study and updated Mineral Reserves for El Domo, including the forecasted economics of the Curipamba project, expected gold, silver, copper and zinc produc�on (and the grade of such gold, silver, copper and zinc produc�on) from the Curipamba project and projected opera�ng and capital costs associated with the Partner's planned opera�ons at the Curipamba project, and the Proven and Probable reserves of gold, silver, copper and zinc; statements and informa�on related to the results of the PEA, including the forecasted economics and the addi�onal indicated and inferred gold, silver, copper and zinc resources; statements and informa�on rela�ng to the mining process; the projected taxes and LOM royal�es to the Ecuadorian government; the 2% NSR royalty payable to Al�us Mining Corpora�on; statements and informa�on rela�ng to the ESIA; statements and informa�on rela�ng to the discussions regarding the non-equity financing; the es�mated mine life of the project; gold, silver, copper and zinc price assump�ons; exchange rate assump�ons; the merits of the Curipamba project; mineral explora�on ac�vi�es in the Rumiñahui, Osos, Santos, Potro, Macara, Pijili and San�ago projects; and other statements regarding future plans, expecta�ons, guidance, projec�ons, objec�ves, es�mates and forecasts, as well as statements as to management's expecta�ons with respect to such ma�ers.
Forward-looking statements are necessarily based upon es�mates and assump�ons, which are inherently subject to significant business, economic and compe��ve uncertain�es and con�ngencies, many of which are beyond the Company's control and many of which, regarding future business decisions, are subject to change. Assump�ons underlying the Company's expecta�ons regarding forward-looking statements or informa�on contained in this presenta�on include, but are not limited to, the Company will be able to accomplish its plans and objec�ves with respect to the FS, PEA, ESIA and the Curipamba project on the expected �meline; market fundamentals will accord with the es�mates and assump�ons contained in the FS and PEA; the receipt of any necessary approvals and consents in connec�on with the development of the Curipamba project in a �mely manner; that the cost es�mates presented in the FS and PEA are representa�ve of the actual costs associated with the development, opera�on and closure of the Curipamba project; sustained commodity prices such that the Project remains economically viable; and that the geology of the Curipamba project accords with the expecta�ons and projec�ons presented in the FS and PEA and that the Company and Partner will be able to mine at the Curipamba project in accordance with the specifica�ons set out in the FS and PEA.
By their very nature, forward-looking informa�on involves known and unknown risks, uncertain�es and other factors which may cause the actual results, performance or achievements of the Company and Partner to be materially different from any future results, performance or achievements expressed or implied by the forward-looking informa�on. Such factors include, among others, risks related to the ability of the Company and its Partner to accomplish its plans and objec�ves with respect to the FS, PEA and the Project within the expected �ming or at all, including the ability of the Company and Partner to improve the economics and finance-ability and de-risk the Curipamba project; the �ming and receipt of certain approvals and the risk that certain necessary approvals may never be received; changes in commodity and power prices; changes in interest and currency exchange rates; that the cost es�mates presented in the FS and PEA may not be representa�ve of the actual development, construc�on, opera�onal and closure costs associated with the Curipamba project; risks inherent in explora�on es�mates and results; the �ming and success of the development of the Curipamba project is not guaranteed and the Partner may not construct and operate the Curipamba project on the �melines or in the manner presented in the FS or PEA, or at all; that the Partner may be unable to conclude the non- equity financing and may be required to pursue other methods of financing the Curipamba project, or may be unsuccessful in financing the Curipamba project; inaccurate geological, mining, and metallurgical assump�ons (including with respect to size, grade and recoverability es�mates, es�mates of mineral reserves and resources and mine life es�mates); changes in development or mining plans due to changes in logis�cal, technical or other factors; unan�cipated opera�onal difficul�es (including failure of plant, equipment or processes to operate in accordance with specifica�ons, cost escala�on, unavailability of materials, equipment and third party contractors, delays in the receipt of government approvals, industrial disturbances or other job ac�on, and unan�cipated events related to health, safety and environmental ma�ers); that the Partner may not be able to increase expected mine life or expected produc�on through resource conversion, project extension and explora�on; poli�cal risk; social unrest; changes in general economic condi�ons or condi�ons in the financial markets; risks associated with the Partner's investor base; and other risks and uncertain�es that are more fully described in the Copmpany's and Partner respec�ve most recent annual informa�on form, interim and annual consolidated financial statements and management's discussion and analysis of those statements, all of which are filed and available for review under the Company's and Partner's respec�ve profiles on SEDAR at www.sedar.com. Should one or more of these risks or uncertain�es materialize, or should underlying assump�ons prove incorrect, actual results may vary materially from those described in forward-looking informa�on. In addi�on, there can be no assurance regarding the achievement or �ming of the Company's and Partner's explora�on, development, construc�on or commercial produc�on objec�ves.
Although the Company have a�empted to iden�fy important factors that could cause actual ac�ons, events or results to differ materially from those described in forward-looking informa�on, there may be other factors that cause ac�ons, events or results not to be as an�cipated, es�mated or intended. The Company provides no assurance that forward- looking informa�on will prove to be accurate, as actual results and future events may differ from those an�cipated in such statements. Accordingly, readers should not place undue reliance on forward-looking informa�on.
The technical informa�on contained in this presenta�on has been reviewed and approved by Kieran Downes as a "qualified person" as defined in Na�onal Instrument 43-101 Standards of Disclosure for Mineral Projects.
All currency figures in this presenta�on are in US dollars unless otherwise stated.
SCIENTIFIC AND TECHNICAL MINING DISCLOSURE
The following independent qualified persons ("IQPs") coauthored the Technical Report. These IQPs have approved the informa�on that pertains to the sec�ons of the Technical Report that they are responsible for:
David Ross, P.Geo., RPA
Metallurgy and Processing: Avakash Patel, P.Eng., RPA
Mineral Resource estimate: Dorota El Rassi, P.Eng., RPA : Hugo Miranda, P.Eng., RPA
Infrastructure and Economic Evalua�on:
Torben Jensen, P.Eng., RPA
Environmental & Community: Ken Embree, P.Eng., Knight
Each of the individuals above are independent qualified persons for the purposes of Na�onal Instrument 43-101. All scien�fic and technical informa�on in respect of El Domo and or the PEA is based on informa�on prepared by or under the supervision of those individuals. The Mineral Resource es�mate in this presenta�on has been classified in accordance with CIM Defini�on Standards - For Mineral Resources and Mineral Reserves (May 14, 2014).
Kieran Downes, P.Geo., a qualified person as defined by Na�onal Instrument 43-101 and a consul�ng geologist for Salazar, is responsible for other scien�fic and technical disclosure contained in this presenta�on.
Slide 01 SALAZAR RESOURCES LTD. ECUADOR'S FAVORITE EXPLORER
45% OF PRIMARY COPPER SUPPLY* IS FROM CHILE AND PERU
ECUADOR IS THE NEW FRONTIER FOR
SPECTACULAR DEPOSIT DISCOVERIES
SIGNIFICANT DISCOVERIES IN ECUADOR
2013 Cascabel | COLOMBIA | |||||
2.6 Bt @ 0.53% CuEq. | ||||||
VMS / | Porphyry | 1985 Llurimagua | ||||
982 Mt @ 0.89% Cu, 0.04% Mo | Quito | |||||
Polymetallic | Mirador | 2009 La Plata | ||||
El Domo | Cascabel | 1.8 Mt @ 12.9 g/t AuEq. | ECUADOR | |||
La Plata | Warintza | 2008 El Domo | ||||
10 Mt @ 5% CuEq. | ||||||
1990 Rio Blanco | Guayaquil | 1996 Panantza | ||||
Epithermal | 463 Mt @ 0.4% Cu. | |||||
2.15 Mt @ 9.5 g/t Au, 69 g/t Ag (M+I) | 2003, 2021 Warintza | |||||
3.6 Mt @ 3.2 g/t Au, 18 g/t Ag (Inferred) | Cuenca | |||||
Fruta del Norte | 2004 Loma Larga | 1.5 Bt @ 0.52% CuEq. | ||||
2005 Mirador | ||||||
24.1 Mt @ 3.76 g/t Au, 24.8 g/t Ag | ||||||
437.6 Mt @ 0.61% Cu, 190 ppb Au, | ||||||
1998 Cangrejos | Loja | 1.5 g/t Ag. (M+I) | ||||
2005 Fruta del Norte | ||||||
1.08 Bt @ 0.48 g/t Au, 0.09% Cu | ||||||
(20.5 Moz) | 6.80 Moz Au, 8.90 Moz Ag. (M+I) | |||||
1994 Rio Blanco | 1.70 Moz Au, 3.50 Moz Ag. (Inferred) | |||||
PERÚ | ||||||
1.2 Bt @ 0.7% Cu, 0.1% Mo | ||||||
Note: * 2019 es�mates, USGS |
Slide 02 | ECUADOR'S FAVORITE EXPLORER |
BOARD AND MANAGEMENT 40 YEARS IN-COUNTRY
UNIQUELY WELL-PLACED TO MAKE AND MANAGE THE NEXT MINERAL DEPOSIT DISCOVERY
MANAGEMENTBOARD
Fredy E. Salazar
President and CEO
Fredy worked in the mineral resource sector throughout Ecuador, including eight years with Newmont. He has an extensive and detailed knowledge of Ecuador's geological potential. He was valuable in Aurelian Resource's acquisition of it's Fruta del Norte property.
Francisco Soria
Exploration Manager
Francisco has 30 years experience as a geologist. He worked eight years at Newmont and was "Cangrejos" Project Manager. He was Senior Geologist for the International Minerals Company, being part in the discovery of the Rio Blanco Deposit and Gaby.
Carlos Aguila
Senior Geologist
Carlos is a Geologist and holds a MSC in Business Management. He has 33 years' experience, including thirteen years with International Minerals Corp (IMZ) working on the Gaby and Rio Blanco porphyries in Ecuador and the Pallancata silver deposit in Peru.
Pablo Acosta
CFO
Freddy D. Salazar
Manager, Corporate
Development
Mineral Resources discovered
with participation of the
Salazar Team
Projects: | |
Fruta del Norte | 5.02 Moz, 6.59 Moz Ag. |
Rio Blanco | 0.93 Moz Au, 6.16 Moz Ag. |
Cangrejos | 16.8 Moz Au. |
Gaby | 356 Mt @0.6 g/t Au (6.9 Moz Au). |
El Domo | 10 Mt @ 5% CuEq. |
Pallancata (Perú) | 155.4 Moz AgEq. |
Mary Gilzean
Non-Executive Director
Nick DeMare
Non-Executive Director
Etienne Walter
Non-Executive Director
Merlin Marr-Johnson
Non-Executive Director
Kieran Downes
Qualified Person
Slide 03 SALAZAR RESOURCES LTD. ECUADOR'S FAVORITE EXPLORER
SUSTAINABLE AGENDA AIMED AT STRATEGIC SECTORS MINING SECTOR
INCENTIVES | ILLEGAL MINING | REWARDS |
CONTROL |
OPENING OF THE | ENVIRONMENT | COMMUNITY | |
El Universo, August 28th 2023 | CADASTER | RESPONSABILIES | PROGRAMS |
CURRENT NATIONAL SECURITY OF ECUADOR, PRESIDENTIAL ACTIONS
GOVERNMENT PLAN PROPOSAL
This Mul�-Annual Work Plan highlights the importance of corporate social responsibility in sustainable companies, promo�ng technical coopera�on to create a work plan based on current regula�ons that allow us to channel public and private efforts towards the style of
NATIONAL SECURITY PLAN
LAND SECURITY AND STRATEGIC PROJECTS PLANNED WITH THE ARMY AND THE POLICE
CONTROL OF ILLEGAL MINING
AFTER DECLARATION OF INTERNAL ARMED CONFLICT 41% DECREASE IN VIOLENT DEATHS*
sustainable development
Daniel Noboa President of Ecuador
Primicias.ec: h�ps://www.primicias.ec/no�cias/seguro/conflicto-armado-reduccion-muertes-violentas-ecuador/
Slide 04 | ECUADOR'S FAVORITE EXPLORER |
NASCENT ECUADORIAN MINING INDUSTRY:
FRUTA DEL NORTE (480,000OzpaAu), MIRADOR (100,000 tpa Cu) STARTED IN 2019 EL DOMO (23,000 tpa Cu Eq.) ON TRACK FOR FIRST PRODUCTION IN 2026
EXPECTED INVESTMENT: 4 PROJECTS
3.0 M | 2,775.03 | 3,099.13 | $1.6 B | |||||
2.5 M | Construc�on of | |||||||
2,092.15 | Curipamba, La Plata | |||||||
2.0 M | Loma Larga & Mirador Norte | |||||||
1.5 M | MINING: PILLAR TO THE | |||||||
1,050.57 | ||||||||
1.0 M | COUNTRY'S ECONOMY | |||||||
0.5 M | 1.30% | 1.46% | 5.16% | 7.84% | 8.50% | 10.86% | 23.02% | |
282.26 | 326.44 | |||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023* | Growth compared to 2022 | ||
We have had several meetings with foreign investors, very interested in energy projects, mining projects, telecomms projects, infrastructure projects, there is a lot of interest in coming to Ecuador and investing in free trade zones. If I were to pin a number I would estimate we could attract investments of up to US$2 Billion
Sonsoles García, Ministra de Producción
4th PRODUCT
185.000 JOBS
Generated by the sector
BCE (Banco Central del Ecuador), 2023
ENEMDU - INEC Q4, 2023
* Es�mates for 2023, Ministry of Energy and Mines
Slide 05 SALAZAR RESOURCES LTD. ECUADOR'S FAVORITE EXPLORER
A ECUADORIAN EXPLORERS' COMPANY
2024 - MULTIPLE CATALYSTS ACROSS PORTFOLIO
100% SALAZAR RESOURCES | CARRIED INTERESTS |
EL POTRO (Porphyry) | El Domo |
Construction | |
MACARA (VMS) | expected |
H2 2024 | |
Discovery Potential | |
20% Carried interrest | |
New target and | in two large |
porphyry targets | |
prospect | |
generation |
*Notes: El Domo - Curipamba Feasibility Study Results (2021 10 26) see news release, & SEDAR filed NI 43-101 Technical Report (2021 12 10) Es�mates for 2023, Ministry of Energy and Mines
Slide 06 SALAZAR RESOURCES LTD. ECUADOR'S FAVORITE EXPLORER
EL DOMO: ADVANCING TO DEVELOPMENT
HIGH GRADE DEPOSIT DISCOVERED AT SURFACE BY SALAZAR RESOURCES
FARMED OUT 75% TO ADVENTUS MINING, CARRIED TO PRODUCTION
6 | ||||
EXPLORATION AND | AGREEMENT WITH | FINANCING | CONSTRUCTION AND | COMMERCIAL |
RESOURCE DEFINITION | ADVENTUS MINING | ARRANGED | DEVELOPMENT | PRODUCTION Q4 2026 |
DEPOSIT DISCOVERY (80 000 METERS DRILLED) | (> US$ 240M) | ENVIRONMENTAL | ||
LICENSE |
10 Mt @ 5%CuEq
Mineral Resources
1850 tpd
Open Pit 10 years
Underground 5 years
Daily Produc�on Es�mated
737K Oz Au | 23Kt Pb |
14870K Oz Ag | 255Kt Zn |
208K t Cu |
Mineral Content
10 Years life of mine
Taxes, Royalties & Others
US$ 376 M
3000 Directs & Indirects Jobs
Taxes, Royal�es and Jobs es�mated
Notes: El Domo - Curipamba Feasibility Study Results (2021 10 26) see news release, & SEDAR filed NI 43-101 Technical Report (2021 12 10)
Slide 07 SALAZAR RESOURCES LTD. ECUADOR'S FAVORITE EXPLORER
EL DOMO IS A VALUABLE FINANCIAL ASSET FOR SRL STRONG FUTURE CASH FLOWS FROM 25% SHARE
23,000 | 13% Net | 20,000 | 5,000 | |
TPA CU | TPA CU | TPA CU | ||
Stream | ||||
EQ.* | EQ. | EQ. | ||
Au (50% - 18%) AND Ag (75% - 18%) | NET METAL TO | ATTRIBUTABLE FROM | ||
CURIMINING S.A. | 2026 | |||
WHEATON PRECIOUS METALS STREAM | ||||
≈ 11 MILLION LBS PER | ||||
↓ | ||||
NET 13% OF TOTAL REVENUE | ANNUM Cu Eq | |||
↓ | SALAZAR RESOURCES | FS Cu PRICE USED | ||
STREAM FINANCE REPAYMENT | ||||
25% | $3.50/Lb |
17% | 3% |
75
22% | 58% |
Copper Gold | Zinc Silver |
Feasibility Study | ~23,000 | $1.26/ lb | <2.6 Years | $103 M | ||||
TPA Cu eq. LOM | Cu eq. AISC† | Payback | Average Annual EBITDA | |||||
Highlights | ||||||||
$259 M | $49 M | 32% | $497 M | |||||
October 2021 | ||||||||
Open Pit NPV8* | Underground NPV8* | IRR (post tax)* | A�er Tax Cashflow |
El Domo - Curipamba Feasibility Study Results (2021 10 26) see news release, & SEDAR filed NI 43-101 Technical Report (2021 12 10) Notes: *NPVs are post-tax, Open Pit - Feasibility Study, Underground - PEA, +Includes taxes and royal�es, does not include G&A.
Slide 08 SALAZAR RESOURCES LTD. ECUADOR'S FAVORITE EXPLORER
SRL 25% EL DOMO STAKE DEEPLY DISCOUNTED RE-RATELIKELY WHEN PERMITS ARE GRANTED
FRESH 100% DISCOVERY TO REDEFINE COMPANY
HIGH | |||||||||||||||||||||||||||
PRE-DISCOVERY | DISCOVERY | STUDY PHASE | BUILD | OPERATION | |||||||||||||||||||||||
VALUE | |||||||||||||||||||||||||||
EL DOMO
FINANCED
NEW
PROJECTS
LOW
VALUE
"I fully intend to find another deposit in Ecuador, and ideally have funding from El Domo to advance explora�on on new projects."
Fredy Salazar,
CEO & President
Life Cycle
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Salazar Resources Limited published this content on 27 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 March 2024 14:17:10 UTC.
