Investor Brief - Champagne Resources Limited

The Abitibi –
Canada's Richest Gold Belt
Goodfish Kirana Property
Exploring in the Kirkland Lake Camp
April 2016
danièle spethmann, P.Geo. President and CEO
January 2017
Exciting Gold Play
 Champagne is a gold exploration company targeting a 3-5 Moz high grade gold
deposit
 Property is a 100% owned, newly consolidated contiguous land package of
3,248 ha located eight km from the town of Kirkland Lake
 2016 results include:
 Prospecting program completed – 220 g/t Au grab sample from a historical
trench
 LiDAR survey completed
 Re-logging and infill sampling of 5,000 m of historical drill core
 Excellent management and technical teams with proven track records
Location! Location!! Location!!!
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Canada – a world class mining jurisdiction
Abitibi Greenstone Belt – over 200 Moz Au produced to date
Kirkland Lake – property in the shadow of 20+ head frames
Champagne’s Land Position and Structures
Camp production to date is 40+ Moz Au
Regional Geology and Gold Occurrences
Kirana Break
Goodfish
Fidelity
Gold Deposit/Occurrence
Selected Gold Assay Results
Highlighted results include:
2016 Prospecting
• 220 g/t Au
16.46 g/t Au @ 3.20 m
99 g/t Au @ 0.61 m
3.42 g/t Au @ 2 m
16.97 g/t Au @ 12.65 m
234 g/t Au @ 0.61 m
220 g/t Au
4.46 g/t Au @ 1 m
2,275 g/t Au
3.10 g/t Au, 495 g/t Ag @ 0.65 m
• 143.6 g/t Au
• 53.2 g/t Au
Historical DDH
• 4.05 g/t Au @ 0.6 m
• 2.74 g/t Au @ 1 m
• 1.10 g/t Au @ 1.0 m
• 2.10 g/t Au, 126.1 Ag, 5.1% Pb @ 0.2m
• 21.0 g/t Au, 31.5 g/t Ag @ 0.4 m
• 6.81 g/t Au @ 0.5 m
• 46.84 g/t Au @ 0.34 m
• 12.34 g/t Au @ 0.79 m
• 94 g/t Ag @ 0 .30 m
• 2.06 g/t Au @ 0.76 m
• 15.71 g/t Au @ 1.05 m
Channel Samples
• 9.14 g/t Au @ 0.65 m
• 2.09 g/t Au @1.52 m
Grab Samples
 Two principal mineralized trends
 Never explored below 200 m
 Never thoroughly explored with modern exploration
techniques
• 2.18 g/t Au
• 1.41 g/t Au
• 5.66 g/t Au
• 14.75 g/t Au
Historical Shaft/Pit
Fall 2016 Prospecting Program
143.6 g/t Au
53.2 g/t Au
220 g/t Au
Infill sampling better defines 2.5 km long gold zone
Excellent Infrastructure
Paved Roads ✓
Railroads ✓
Airport ✓
High Voltage Power ✓
Water ✓
Skilled Labour ✓
Commercial Centre ✓
Social License✓
Ontario Government
MNDM office ✓
Experienced and Committed Team
Management, Consultants
& Advisors
 Daniele Spethmann, P.Geo. - CEO
 Terence J. Bottrill, P.Eng.
 Gary Grabowski, P.Geo.
 Bill McGuinty, P.Geo.
 Tom Neelands, P.Geo.
 Orix Geosciences
 Dr. Tom Setterfield, Ph.D., P.Geo.
Directors
 James R. Atkinson, M.Sc, P.Geo.
 Dr. John B. Gammon, Ph.D.
 C. Thomas Grubb, P.Eng.
 Danièle Spethmann, P.Geo.
 William Taraba
 Peter Winnell
Capital Structure
 Private Ontario Corporation
 Capital Structure:
 Common Shares
 Warrants
 Options (subject to shareholder approval)
 Convertible Debentures
 Fully Diluted Shares
43,169,013
16,270,721
3,250,000
3,780,000
66,469,734
 Company financial statements have been audited
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Property:
Final property payment December 2016 - 100% ownership
Land in good standing - 2017 to 2020
Claims geo-referenced in advance of MNDM map staking
Why Invest in Champagne?
 Located in a World-class Mining Camp
• 10 km of contiguous strike length in the Kirkland Lake Gold Camp
• 3,248 hectares – combination of patented and staked claims
 Known Mineralization
• Grab sample assay results from the late 2016 prospecting program
- 220 g/t Au, 143.6 g/t Au and 53.2 g/t Au
• The best historical intersection at Goodfish
- 16.97 g/t Au over 12.65 m at less than 200 m depth
 Excellent Infrastructure
• 10 minutes from downtown Kirkland Lake
• Easy access to power, excellent roads and skilled workers
 Experienced Team
• Strong technical team with extensive experience and discoveries in
mesothermal and epithermal gold deposits (Detour Mine, Choco 10, FDN)
• Excellent mix of major and junior company experience as well as
significant local Kirkland Lake experience
Gold Potential of Northern Ontario
“……Despite a track record of discovery for more than 100 years, the
exploration of the subsurface has barely been scratched…”
CIBC – Institutional Equity Research – May 19, 2010
Canada Eh! Swamped with Gold – Executive Summary Excerpt
Goodfish Kirana Project - excellent discovery potential in a great location managed by a solid team!
Kirkland Lake
GoldGold
Inc. Inc.
Kirkland
Lake
Macassa Gold
MineMine
Macassa
Gold
APPENDIX
Kirkland Lake - Major Mine Historical Gold Production
Champagne’s
project is located
in a camp with
high grade gold
deposits
Historical major
mine production,
excluding historic
miscellaneous
production.
Source: Ministry of Northern
Development and Mines
Gold Mine
Kerr Addison
Lakeshore
Wright Hargraves
Teck Hughes
Macassa
Hol-Holloway
Kirkland Minerals
Sylvanite
Upper Canada
Ross
Young Davidson
Toburn
Black Fox (Glimmer)
Chesterville
Omega
Bidgood
Upper Beaver
Hislop
Barry Hollinger
Ashley
McBean
Other
Total
Production
(oz.)
10,500,000
8,600,000
4,830,000
3,710,000
3,700,000
2,360,000
1,740,000
1,675,000
1,400,000
995,000
640,000
570,000
463,000
360,000
215,000
165,000
141,000
105,000
77,000
50,100
45,900
558,000
42,900,000
Grade
(g/t)
8.9
17.1
16.6
13.3
15.3
5.3
12.7
11.4
10.3
5.0
3.2
16.5
3.8
3.8
5.0
9.4
8.3
2.2
9.9
10.9
2.8
9.6
Exploration Potential – WIDE OPEN
10 km
200 m
Champagne Resources – Never explored below 200 metres
Kirkland Lake Gold – Mined to a depth of 2.2 kilometres
2.2km
CN Tower 550m
25 M oz produced
Average Grade SMC 22 g/t Au
Kirkland Lake Gold generalized Longitudinal 2016
Target Geological Model – High Grade Gold Zone
 Major structures
 Sulphides and
other pathfinder
metals present
 Halos of lower
grade mineralization
 Core of high
grade gold +/silver
 Alteration halos
 Quartz-Feldpar
Porphyry host
 At lithological
interface
Preliminary Schematic Geological Section
First Derivative Mag and Au Showings
N
21 g/t Au @ 0.4 m
16.46 g/t Au @ 3.2m
31.5 g/t Au
99 g/t Au @ 0.61 m
16.97 g/t Au @ 12.65 m
3.42 g/t Au @ 2 m
15.71 g/t Au @ 1.05 m
234 g/t Au @ 0.61 m
2.18 g/t Au
4.46 g/t Au @ 1 m
3.1 g/t Au + 495 g/t Ag @ 0.65 m
1.41 g/t Au
2.1 g/t Au + 126 g/t Ag @ 0.2 m
4.05 g/t Au @ 0.6 m
2.06 g/t Au
2,275 g/t Au
1.56 g/t Au @ 0.7 m
46.84 g/t Au @ 0.34 m
14.75 g/t Au
2.06 g/t Au @ 0.76 m
2.74 g/t Au @ 1 m
Drill hole Sample
Grab Sample
Channel Sample
1 km
Selected Lines of IP Inverted and Drill Holes
• Newly generated data shows past drilling appears to have missed IP target
Goodfish Next Steps
16.46 g/t Au @ 3.2 m
99 g/t Au @ 0.61 m
12.34 g/t Au @ 0.79 m
16.97 g/t Au @ 12.65 m
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Detailed mapping and structural analysis
Follow up prospecting and updated compilation of historical data
Modeling of results with new 3D mapping technologies
Geochemical sampling and follow ground geophysics
Drilling to test new results and historical intersections
Kirana Break Extension Next Steps
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90 km IP to be analyzed and processed
Ground truthing of anomalies
Structural mapping and analysis of gold showings
Further re-logging and sampling of DDH core
Model anomalous gold zones
Drilling of new deformation zone
39.78 g/t Au @ 0.6 m (1967)
Average Grade 16.6 g/t (1936)
 6 to 8 km east west regional structure
Fidelity Next Steps
17.15 g/t Au @0.91 m (1920)
40.56 g/t Au @ 1 m (2007 )
Grab sample 2,274 g/t Au (2007 )
 Detailed structural mapping of stripped outcrops – understanding the gold
occurrences locally will lead to property wide understanding
 Compilation and modeling of historical data in local and regional context
Exploration Budget Phase 1
Action
Additional Compilation/LiDAR Interpretation
Interpret IP, assess usefulness of previous drilling
Ground geophysics on target areas
Drill 2,000 m at Goodfish
Map and resample NG trenches; complete 3D model of Fidelity
Property Wide Structural Mapping and Analysis
Follow up prospecting and geological mapping
Property scale geochemical survey
3D Modelling
Permitting
First Nations and Community Engagement
G&A and go public fees
Contingency (10%)
TOTAL
Cost
$65,000
$30,000
$135,000
$350,000
$60,000
$60,000
$80,000
$60,000
$35,000
$10,000
$35,000
$240,000
$90,000
$1,250,000
Exploration Budget Phase 2
Action
Ongoing Database Upkeep, Geological Modelling
Ongoing First Nations and Community Engagement
Additional Prospecting and Geological Mapping
Ground Geophysics on New Targets
Structural Mapping and Analysis
Drill 10,000 m at Goodfish, other targets
Preliminary Resource Calculations
G&A
Contingency (~10%)
TOTAL
Cost
$25,000
$120,000
$80,000
$150,000
$25,000
$1,800,000
$50,000
$60,000
$190,000
$2,500,000
Exploration Budget Phase 3
Action
Drill out deposit(s)
Cost
$8 - $10,000,000
Experienced Committed Management Team
Danièle Spethmann, P.Geo. – Director, President and CEO
Ms. Spethmann is an exploration geologist with over 30 years experience in northern Ontario, Canada and internationally in Latin
American and Botswana. Danièle was the senior geologist and principal on two projects with significant discoveries (Choco 10 –
Carolina zone and Fruta del Norte) in Venezuela and in Ecuador. Companies she has worked with include IAMGOLD, African Copper,
Aurelian Resources and Bolivar Goldfields. Danièle spent her undergraduate summers mapping for the Geological Survey of Canada,
completed her Geology Honor Thesis at the University of Ottawa and recently obtained her Mining Management Certificate from
Ryerson University. She is a member of the Association of Professional Geoscientists of Ontario, the PDAC, Women in Mining, and a
committee member of the Toronto Geological Discussion Group.
Tom Neelands, P.Geo. - Consultant
Mr. Neelands is an exploration geologist with over 40 years field experience in Canada and Latin American countries with major
companies including Teck, Placer Dome, Noranda and IAMGOLD. He has worked as a consultant for junior exploration companies:
Bolivar Goldlfields, Aurelian Resources, African Copper, and several others. Tom has been the principal or senior geologist on three
substantial gold discoveries including the Detour Calcite Zone (Ontario), the Carolina Zone at Choco 10 (Venezuela) and Fruta del Norte
(Ecuador). Tom completed his BSc at Carleton University and is a member of the Association of Professional Geoscientists Ontario.
Dr. Tom Setterfield, P.Geo. - Independent Consulting Geologist
Dr. Setterfield is an independent consulting geologist with over 35 years experience in the mining industry, 13 of which was with
Western Mining Corporation. He is a co-founder and principal of GeoVector Management Inc. and currently Vice President, Exploration
and Director, Terrax Minerals. Tom is well known in the industry as an expert in iron oxide copper gold, epithermal gold and
volcanogenic massive sulphide deposits. He has extensive Archean greenstone belt experience, including in the Timmins, Kirkland Lake,
Noranda and Chibougamau camps of the Abitibi Greenstone Belt, and in the productive Yilgarn Block in the Kalgoorlie area of Australia.
Tom completed his MSc on synvolcanic faults in the Noranda area, of Quebec, his Ph.D. in Cambridge, UK and is a member of the
Association of Professional Geolscientists of Ontario.
Orix Geoscience Inc. – Consultants
Orix Geoscience partners with exploration and mining companies providing front-end geological services including field mapping and
core logging, compilation, interpretation, modelling and targeting. The company is operated by founder Shastri Ramnath, President and
Principal Geologist, Ashley Kirwan, Vice President and Senior Geologist. Shastri has 16 years’ experience in the exploration and mining
industry and has worked throughout North and South America as well as Africa. Shastri earned a B.Sc. (Hons) in Geology from The
University of Manitoba, a M.Sc. from Rhodes University in South Africa, and an MBA from Athabasca University. Ashley Kirwan has
nine years experience in the exploration and mining industry and has worked in North and South America. Ashley earned a B.Sc. (Hons)
in Geology from Laurentian University and is currently completing a M.Sc. in Mineral Exploration at Laurentian University.
Board of Directors
James R. Atkinson, M.Sc., P.Geo. – Director
Mr. Atkinson is an exploration geologist with over 40 years experience as an independent exploration and mine geologist and project
manager with both junior and major mining companies including Noront, Billiton and AMEC. His career has encompassed numerous
types of deposits including gold, copper, base metals in Canada and internationally. Jim has been a leader in discoveries of deposits
close to the Oyu Tolgoi deposit in Mongolia, as well as the Ring of Fire, Ontario, Canada. Jim is currently Vice President, Exploration for
the Americas Silver Corporation, a TSX listed company with producing mines in Idaho and Mexico. He obtained his B.Sc. from Brock
University, his M.Sc. from University of Toronto and he is a member of the Association of Professional Geoscientists of Ontario, the
PDAC and the Society of Economic Geology.
Dr. John B. Gammon - Director
Dr. Gammon is an exploration geologist with over 40 years of exploration, government and corporate experience. John was employed
in several senior positions in mineral exploration in the private sector with Falconbridge among other companies and as a
consultant. As the Assistant Deputy Minister, Mines and Minerals in the Ontario Government for 17 years, John was responsible for
developing the policies and leading the team that saw Ontario recognized as the world’s most attractive mineral exploration jurisdiction
by the Fraser Institute. John was a Director of Probe Mines Limited from inception through to the discovery of the Borden Lake deposit
and subsequent sale to Goldcorp for $526 million in March 2015. John is currently a director and advisor to several junior mining
companies as well as a member of the board of the PDAC’s Aboriginal Affairs Committee and the International Cyanide Management
Institute. John holds a BSc and PhD and was a post-doctoral research associate at both the University of California and Princeton
University as a Fulbright Post-Doctoral Fellowship and Senior Visiting Fulbright Fellowship, respectively.
C. Thomas Grubb, P.Eng. - Chairman
Mr. Grubb is an early investor in Champagne Resources joining the board of Champagne in 2011. He has over 30 years of management
experience and provides consulting services to the process industries including the mining and materials handling industries. Tom was
a former director of QUNO Thorold from 1989 to 1999.
William Taraba - Director
Mr. Taraba has been involved in the resource industry for over 30 years and is an experienced director, having served on numerous
boards over his career.
Peter Winnell - Director
Mr. Winnell has over 30 years experience in the Canadian capital markets. He is the past Vice Chairman of a boutique investment
brokerage where he led numerous transactions, with emphasis on the mining sector.
Advisors
Terence J. Bottrill, P.Eng. – Advisor
Mr. Bottrill is a geological consultant in mineral exploration and mine development with almost 50 years of experience. He has
undertaken fieldwork on every continent except Antarctica and has held corporate positions including Director of Exploration where he
has been responsible for gold, silver and copper discoveries and mines. In the 1980's and 1990's he was very involved in several
exploration projects in the Kirkland Lake district, including the discovery of the Amalgamated Kirkland, a deposit currently being drilled by
Kirkland Lake Gold Mines. From 2006 through 2012 he was a lecturer in geology at the University of Toronto Mississauga and is currently
the Industry Liaison for the Department of Earth Sciences, University of Toronto.
Gary Grawbowski, P.Geo. – Advisor
Mr. Grabowski has over 35 years experience in the mining industry and is very knowledgeable on the geology and mineral deposits in the
Kirkland Lake District. He has visited most operating mines in the Red Lake, Atikokan, Shebandowan, Hemlo, Elliott Lake, and Sudbury, as
well as Noranda, Val d’Or and Oka in Quebec, as well as the diamond mines in North West Territories.
Bill McGuinty, P.Geo. – Advisor
Mr. McGuinty is an exploration geologist with over 35 years` experience. He has worked in Canada and internationally for Canadian stock
exchange listed junior mineral exploration companies since 1981, holding progressive positions as project geologist, exploration manager
and country manager. He has served as Vice President, Exploration in South and Central America with Intrepid Mines Ltd. He is currently
Vice President, Operations for Globex Mining Enterprises Inc. with principal exploration activities in Quebec and Ontario. He is also
president of OTD Exploration Services, a private company dedicated to supplying quality management and governance for the minerals
exploration sector. Bill has served as Co-chair of the Advisory Panel to Canada’s Corporate Social Responsibility Counsellor and he is a
member of the Ontario Mines Minister’s Mining Act Advisory Committee and the PDAC Corporate Social Responsibility Committee.
The Abitibi - Canada's Richest Gold Belt
CONTACT
danièle spethmann
President and CEO
+1 416 414 7011
[email protected]
Champagne Resources Limited
401 Bay Street, Suite 2702, Toronto, Ontario M5H 2Y4
+1 647 344 3433 ■ [email protected]