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Sphere Resources Inc. Corporate Presentation SPH.H:NEX-V “Successful Gold Exploration Begins In The Best Mining Camps” June 2014 www.sphereresources.com. Disclaimer.
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Sphere Resources Inc. Corporate Presentation SPH.H:NEX-V “Successful Gold Exploration Begins In The Best Mining Camps” June 2014 www.sphereresources.com
Disclaimer This presentation may include certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend“ and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon.
Sphere Resources Inc. • Canadian Gold exploration and development company. • Listed on Toronto Stock Exchange (TSX-V; NEX: SPH.H) • Since 2008, targeting the best gold camps of North America.
Sphere Resources Inc. Operating in the following areas: • Red Lake district of NW Ontario, one of the world’s richest and highest grade gold camps. • Nevada, targeting one of the richest gold regions in the USA ( SW Carlin Trend, Elko, Nevada.
Directors & Management Directors: • Malcolm Stevens Executive Chairman & President • Tom Needham CFO • Marshall Auerback Non-Executive Director • Christopher Tucker Non-Executive Director • Gordon Yule Non-Executive Director Combinedboard and management experience: 200+ years • Resource Exploration • Development • Operations • Investment
Project Team Gordon Yule, P.Geo • extensive experience and knowledge of the Red Lake district & Ontario • previously V.P. of Exploration for Mega Precious Metals working along side Jim Rogers, ex-chief geologist of Goldcorp’s Red Lake mine, credited for discovering Goldcorp’s High Grade Zone. • Mr Yule was a semi-finalist in Goldcorp’s Red Lake “Gold Rush Challenge” Contest. Mick Gavrilovic, COO of Spartan Gold Ltd Steven Davis, P.Geo • 40 years experience in Nevada, previously with Homestake and Newmont Mining
Strategy and Approach “Successful gold exploration begins in the best mining camps” Focus on areas in the developed world which are • mining friendly • where there is good infrastructure Mitigate risk through collaboration / deal structure
History In 2006 sold South African assets to focus on the leading gold camps of North America. Until funds were received from South African asset disposals, company was reliant on internally generated funds. Exploration commitments have been farmed out under claw-back arrangements and option agreements, or funded through organic cash generation.
Developments since 2008 – Canada & USA Initiated acquisitions in Red Lake, Ontario in Nov 2009: • Dome property option* – 1,344 acres (Nov 2009), • McManus property option* – 803 acres (Dec 2010) • Alcourt property option – 250 acres (Mar 2011) (*Now referred to collectively as Expanded Dome Properties) In early 2011, acquired 100% ownership of Expanded Dome Properties. In 2013, Sphere’s ownership was reduced to 25% of the Dome property, after DPHC spent an aggregate of $2,125,000 on exploration on the Dome & McManus properties.
Red Lake - Canada Initiated collaboration with Duncan Park in March 2010 to develop Dome properties. Duncan Park has option on 75% of Dome Properties. Duncan Park to spend up to C$2.1m ($925,000 on Dome already spent) and ($1.2M on McManus) over 3 years to explore Dome Properties. Sphere has the right to claw back 51% of Dome Properties on payment of 4 x Duncan Park’s expenditure. In 2013 Sphere did not exercise its claw back right and now owns 25% of the DPHC/Sphere Joint Venture on the Dome property.
Nevada - USA Dec 2010, entered into a collaboration agreement with Spartan Gold (OTCBB: SPAG) Identified a property in Nevada, entered into Option and JV Agreements with Spartan and Mexivada. • Poker Flats on the Carlin Trend, Nevada April 2011, sold option in the property for equity in Spartan, and royalty on the asset. October 2011, acquired a controlling interest in Spartan Gold which now sits at 46.5%.
About Duncan Park Quoted on TSX-V (DPH) Toronto based minerals exploration company Exploring for gold and other precious metals in the Dome, Byshe and Hyeson Townships in Ontario’s Red Lake gold mining district by way of Joint Venture with Sphere on the Dome property. DPHC has 100% interest in the McManus property.
About Spartan Gold Spartan Gold Ltd. (OTCBB: SPAG) is a publicly traded U.S. based junior gold exploration and mining company. Development activity is centred in the SW Carlin-Rain in Nevada.
Red Lake, Ontario One of the world’s richest and highest grade gold camps
Red Lake, Ontario PEDIGREE • Home to the highest grade gold mine in the world • One of the world’s richest gold camps • +25 million ounces gold produced since 1926 • 3 major discoveries since 2004 • Geology known for hosting multi-million oz deposits • Possibility of a further +30 million oz to discover INFRASTRUCTURE • Mining friendly jurisdiction • Superior infrastructure already in place • Goldcorp’s operating mill 4kms away
Red Lake, Ontario – Dome Property ACQUISITION • Acquired option in November 2009 • Over 1,344 acres (544 hectares) land package GEOLOGY • 2 deformation zones crossing into property • 2 fault lines – 1 running south east to north west and the other runs south west to north east which intersect at the northwest corner • Multiple shear zones overlaying the north eastern block • Structural features on the property are similar to those found at Goldcorp’s Red Lake High Grade gold zone.
Red Lake, Ontario – Expanded Dome Properties Does Goldcorp High Grade Zone extend into Dome Property??
Red Lake, Ontario – Exploration plans 2014 DOME PROPERTIES • Drilling completed on anomalies identified on North and South East sections and an area of mineralization found 1.2km long and 440m wide and 400m deep. • Up to 4 holes may be drilled during the fourth quarter of 2014 and first quarter of 2015. • Exploration costs will be borne 75% by Duncan Park Holdings Corporation and 25% of Sphere.
Nevada The richest gold camp in the world
Nevada’s Carlin Trend • A belt of gold deposits about 40 miles by 5 miles extending in NNW through Carlin, Nevada. • One of the world's richest gold mining districts. • Gold discovered in the area in the 1870s. • By 2014, mines in the area had produced over 70 million ounces of gold, worth around US$90 billion at 2014 prices.
Nevada – Investment Stake in Spartan Gold • April 2011, Sphere sold interests in Poker Flats and Ziggurat Property for 11.75 m shares and 5.75 m warrants in Spartan Gold. • In October 2011 and December 2012 Sphere increased its shares in Spartan Gold to take its interest to 19.64 m attaining controlling interest. • Sphere also holds 1.54 m warrants* in Spartan. • Sphere will receive royalty on Poker Flats of 2% NSR: * 287,475 convertible at $20 per share on March 28, 2016 1,250,000 convertible at $2 per share on September 7, 2016
Nevada – Exploration Plans 2014 • Expanded areas to be explored at Poker Flats by Spartan Gold • Mapping, sampling and geophysical programs to delineate drill targets • Planning of aggressive drill program with expenditures of $2,000,000
Finance • Costs of exploration covered: • Costs of exploration of Dome Properties will be borne by Duncan Park Holdings Corp. • Exploration costs of Poker Flats will be covered by Spartan Gold. • Raising additional funding for increased interest in Spartan, exploration at Red Lake property and working capital.
Sphere Resources - Investment Opportunity • Strong balance sheet • High quality opportunity in high quality locations • Ontario (Red Lake) • Nevada (SW Carlin Trend) • Exploration risks mitigated through collaboration. • Planning to return to main TSX board in June 2015.
Sphere Investments Note 1: Share prices and exchange rates were correct as of close of business on 6 June 2014 Note 2: Exchange rate US$ 1.00 = C$ 1.10
Sphere Resources Inc Malcolm Stevens Executive Chairman & President Sphere Resources Inc. “Successful gold exploration begins In the best mining camps” www.sphereresources.com mstevens@sphereresources.com