Rediscovering Nova Scotia's Past Producing
Gold Mines
MAY 2017
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Forward-Looking Statements
All statements in this presentation, other than statements of historical fact, are "forward-looking information" with respect to
Osprey within the meaning of applicable securities laws including, without limitation economic estimates and statements related to
estimated mining costs.. Osprey provides forward-looking statements for the purpose of conveying information about current
expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other
purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which
give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and
uncertainties include but are not limited to exploration findings, results and recommendations in connection with the updated
technical report on the Goldenville property, as well as those risks and uncertainties identified and reported in Osprey’s public
filings under Osprey’s SEDAR profile at www.sedar.com. Although Osprey has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other
factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such
information will prove to be accurate as actual results and future events could differ materially from those anticipated in such
statements. Osprey disclaims any intention or obligation to update or revise any forward-looking information, whether as a result
of new information, future events or otherwise unless required by law.
All historic production, drill or sample figures quoted herein are based on prior data and reports obtained and prepared by
previous operators. The Company has not completed the work necessary to verify results. The historical figures should not be relied
upon and have not been verified by a Qualified Person.
Technical aspects of this presentation have been reviewed and approved by the Qualified Person, Brandon Macdonald P.Geo., hereby
designated as a QP under National Instrument 43-101.
Dave Thomas, M.Sc., P.Geo. and Neil Pettigrew, M.Sc. P.Geo, are both a 'Qualified Person' for the purpose of National Instrument 43101 Standards of Disclosure for Mineral Projects of the Canadian securities administrators ("NI 43-101"). They have both approved
the disclosure of, and are the 'Qualified Persons' responsible for the scientific and technical information of the resource estimate
information.
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Overview
NOVA SCOTIA’S MOST PROLIFIC GOLD CAMP
Share Structure- TSX.V: 0S
Goldenville is the largest historic gold
producer in Nova Scotia, with 212,300
ounces of gold production prior to 1942
Shares Issued & Outstanding
•
Inferred Resource* of 2,800,000 tonnes at
3.20 g/t gold for 288,000 ounces of gold
(2,800,000 tonnes at 4.96 g/t gold for
447,000 ounces of gold uncapped)**
Fully Diluted
•
Structure remains open along strike and at
depth
•
Under-explored target areas permissive for
expansion drilling
•
Drilling to commence in summer of 2017
•
26,332,333
Options (Price $0.30 Expiry Jan 25, 2022)
1,325,000
Warrants (Price $0.40 Expiry Sept 3, 2018)
4,033,920
31,691,253
*See March 15, 2017 News Release “Osprey Announces Resource Estimate Update and Reports 60% Increase in Inferred Resources at Goldenville
Project, Nova Scotia” for further details.
**Mineral resources are not mineral reserves and do not have demonstrated economic viability. No mineral reserves have as yet been defined. Inferred
mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be
considered for estimation of mineral reserves, and there is no certainty that the inferred mineral resources will be realized.
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Management & Advisors
Directors and Management
Cooper Quinn, President & Director - Mr. Quinn has worked in mining and exploration since he graduated from Simon Fraser University
with a degree in Earth Science. He has worked for a variety of exploration and development companies with projects in North America,
Greenland, Europe, and the South Pacific Islands. Mr. Quinn was a Senior Geologist with Underworld Resources and most recently, Lion
One Metals. His experience ranges from project management to acquisitions and DD for private equity.
Jeffrey R. Wilson, CEO & Director - Mr. Wilson has 20 years of experience in the mineral exploration and mining investment industry. He
has raised $50m through his wealth of contacts in the investment community including institutional investors, retail brokers,
investment bankers, mining analysts and private investors. During his career, Mr. Wilson has been involved with multiple junior
resource companies that have seen profitable take overs by mid-tier mining companies. Mr. Wilson is currently President & CEO of
Precipitate Gold Corp.
Perry MacKinnon, P.Geo, Vice President of Exploration - Mr. MacKinnon is an experienced geologist and prospector in Nova Scotia and
New Brunswick. He has over 30 years’ experience in the mining industry, having worked continent wide on a variety of projects and
large number of mineralized environments.
Adrian Fleming, Chairman & Director - Mr. Fleming has over 35 years experience in the mining industry, most significantly President of
Underworld Resources and their White Gold Project, which was acquired by Kinross Gold for $139M. He has been a part of numerous
significant discoveries, including Porgera and Hope Bay
Greg Beischer, P.Geo, Director - Mr. Beischer currently serves as President and CEO of Millrock Resources, a successful project generator
and has been involved in mining and exploration for 30 years.
Jasmine Lau, CFO & Corporate Secretary – Ms. Lau is a member of the Institute of Chartered Accountants of British Columbia and has
focused her career in the resource and pharmaceutical industries. Jasmine has served as CFO and was the controller of several public
exploration companies with projects throughout the world. Jasmine has worked at Teck Resources Ltd as a SOX Auditor as well as
Deloitte & Touche LLP’s Vancouver Assurance & Advisory group where she focused on audits of public mining and resource companies.
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Why Nova Scotia?
• Nova Scotia has very low geo-political risk, ranking 17th out of 109
Mining Jurisdictions for Policy Perception
(Fraser Institute Annual Survey, Mining Companies 2015)
• Extensive history of high grade production
• District-scale potential in an underexplored area
• Excellent access and infrastructure
• Supportive government, local community, and First Nations
Gold Ounces Produced in Nova Scotia
between 1862-2012
https://www.fraserinstitute.o
rg/sites/default/files/surveyof-mining-companies2015.pdf
Chart Source:
Virtual Museum
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Project Map and District Gold
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Goldenville, Nova Scotia
• Most advanced project in portfolio
– Gold Rush discovered in 1862
– Highest reported gold production of any NS district
– Recorded historic production of 212,300oz from 551,797 tonnes between
1862 and 1942 (11.97g/t Au)
• Explored intermittently from 1962 through 2014
• Same rock formation as Atlantic Gold’s MRC project
Ed Williams Lese (Lease), Goldenville Gold District ca. 1905.
N.S. Archives and Records Management no. 3, Negative N-1708.
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George Hirchfield Gold Mine, Stuart Hardman Property, Goldenville Gold District - 1897.
Photograph by E. R. Faribault. Geological Survey of Canada Photo #5273.
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Goldenville Inferred Resource Estimate (2017)
Goldenville Mineral Resource and Sensitivities, Near Surface
Cut‐Off
Tonnes
Capped Au
(g/t)
Capped Au
(Oz)
Uncapped Au
(g/t)
Uncapped Au
(Oz)
0.50
1,370,000
2.79
123,000
4.66
206,000
0.75
1,240,000
3.02
120,000
5.08
203,000
1.00
1,125,000
3.24
117,000
5.49
199,000
Goldenville Mineral Resource and Sensitivities, Underground
Cut‐Off
Tonnes
Capped Au
(g/t)
Capped Au
(Oz)
Uncapped Au
(g/t)
Uncapped Au
(Oz)
2.00
1,560,000
3.35
168,000
4.87
244,000
2.25
1,310,000
3.58
151,000
5.21
220,000
2.50
1,030,000
3.91
130,000
5.68
189,000
Please refer to Appendix A for Notes to the March 15, 2017 NI 43-101 Inferred Mineral Resource. Mineral resources are not mineral reserves and do not
have demonstrated economic viability. No mineral reserves have as yet been defined. Inferred mineral resources are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be considered for estimation of mineral reserves, and there
is no certainty that the inferred mineral resources will be realized. 2017 inferred resource includes a near surface and an underground resource with a
cut-off of 0.75 g/t and 2.0 g/t respectively.
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Proximity to an Emerging Nova Scotia Producer
Atlantic Gold is building
Canada’s only open pit gold
project which is permitted,
financed, and in construction
Region under-explored for this
new deposit type: disseminated
style mineralization (shale
hosted with quartz veins, wide
bulk-mineable zones)
ATLANTIC GOLD RESOURCE Moose River Consolidated
Mt
Diluted Grade
(g/t Au)
Mined Au oz's
(000)
Proven Reserves
6.65
1.45
310
Probable Reserves
9.8
1.43
450
16.45
1.44
760
Classification
Atlantic Gold Projects
Total
($150 mill m/c)
Atlantic Gold’s Moose River Consolidated Project is an open pit bulk tonnage operation. Osprey plans to
investigate the potential for Goldenville to be reconfigured in a similar manner. Atlantic Gold’s FS – July
2, 2015: Feasibility Study for Moose River Consolidated Project, Nova Scotia
http://atlanticgoldcorporation.com/_resources/AtlanticGold_technicalreport43101_20140813.pdf
Goldenville is at an earlier stage than Atlantic’s MRCM; there are no guarantees that the project will
achieve a positive Preliminary Economic Assessment or eventual Pre-Feasibility, Feasibility or
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production status.
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Goldenville Infrastructure & Claim Blocks
• Access via Highway 7, ~5km from village of Sherbrooke
• Domestic power and gravel roads on site
Mitchell Lake
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Goldenville Geology and Mineralization
• Structurally controlled slate belt
hosted gold
• Vein hosted mineralization
controlled by bedding, anticline
plunge, and cross cutting structures
– Anticline trends roughly east-west,
dips gently west
– Up to 46 sequenced vein packages
identified on both limbs of the
anticline
• Disseminated mineralization within
slates/argillite
• Classic Meguma terrain-style deposit,
similar to the Bendigo camp in Australia
– Potential for veining to continue at depth, similar to Australian deposits
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Goldenville Anticline Model
Individual vein model, with historic workings and drilling
Plunging anticline, with stacked veins
Open along strike and down dip
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Resource Strike and Depth Potential
Two 1997 drill holes 3km to west
show gold mineralization in veins
and slate host rocks including
Mit-1 which returned:
1.33 g/t Au over 20.2m (from
54.2m to 74.4m)
1km
Discovered
1861
Total production
0.2Moz
Production to 300m
0.2Moz
Known depth
325m
Discovered
1851
Total production
1.0Moz
Production to 300m
0.2Moz
Known depth
1200m
Goldenville
Mitchell Lake
Source: Nova Scotia Department of Natural Resources
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Lower Seal Harbour Project
•
Production from 1894-1942 is reported as 39,654 ounces from 53,534 (0.74
oz/t) tons mined
•
Shafts explored and developed the deposit somewhat to the 500 foot level and
one exploration shaft is reported to the 700 foot level
•
Veins are reported from 1.4m to greater than 10m in width
•
Adjacent to Orex Exploration’s Goldboro Project; known host to disseminated
mineralization (recently announced merger with Anaconda Mining)
Historic production maps and grades from a Lower Seal Harbour decline
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Gold Lake Project
• Discovered in 1867
Vein or Interval
(If Indicated)
Gold Grade
(g/t)
Sample
Type
Width (m)
Location/Source Reference
Iron Lead
34.29
0.46
70’ *UG Level: MacDonald
(1986)
• Along strike from
Goldenville
Murchy Belt
4.98
1.5
Trench 85-5: MacDonald (1986)
Iron Lead
58.29
0.67
**DDH 86-10: Morris (1987)
Queen?
9.94
1.52
**DDH 88-1: Michaelis (1988a)
• Over 8,000m in 52
holes have been
drilled since 1986
Murchy Belt?
26.05
1.52
**DDH 88-1: Michaelis (1988a)
Iron?
12.34
1.52
**DDH 88-1: Michaelis (1988a)
Murchy Belt
18.51
1.52
**DDH 88-2: Michaelis (1988a)
MacPhail - Twin
27.42
1.52
**DDH 88-5: Michaelis (1988a)
Murchy Belt
5.14
1.52
**DDH 88-7: Michaelis (1988a)
Queen?
57.60
1.52
**DDH 88-20: Michaelis (1988a)
• Several small shafts
with U/G workings
• Approx 1 hour from
Halifax by road
*UG = Denotes underground workings
** Weighted intervals and grades from page 15 of report – Au Troy ounces /short ton converted to
Au grams/tonne by factor of 34.286 grams/tonne = 1 Troy ounce per short ton
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Miller Lake Project
• Two small historic shafts,
with strike length over
1km
• Anticline similar to other
Meguma deposits, along
strike from Dufferin Mine
(recently acquired by
Resource Capital Gold)
• Follow up in 1988
consisted of geophysics
and 2,377m of diamond
drilling
Historic production figures
from a Nova Scotia
Department of Mines report
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Year
Rock Crushed in
Tons
Yield of Gold in
Ounces
1902
193.00
68.50
1906
73.00
64.50
1907
143.00
46.88
1913
15.00
6.75
1914
6.00
1.30
1915
18.00
8.95
1934
3.00
4.00
1938
26.00
6.70
1939
28.70
12.28
1940
150.00
70.00
1941
336.00
95.93
1942
Mortared
1.09
1947
50.50
24.15
1948
241.00
72.33
Totals
1,283.20
483.36
Average Grade: 0.376 oz/ton Au
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Acquisition Terms
• Option to earn 100% interest in
four projects
– Total of 90 claims, or 1,813
hectares
• $1M over three years
– $150k upon signing definitive
agreement
– $250k at year one and two
– $350k at year three
• 2% GMR on Goldenville
– 1% buyback for $750k
– Additional 0.5% buyback for
$375k
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Next Steps
Timeframe
Objectives
Q1 – 2017
Update Goldenville’s Historic resource using
lower cutoff and bulk/surface mining methods
Q1 – 2017
Log, split, and assay core from 2014 drill
program
Q1 – 2017
Detailed evaluation, target generation, and
ranking on Lower Seal Harbour, Miller Lake and
Gold Lake
Q3 – 2017
Osprey drill program at Goldenville
Q4 – 2017
Update resource incorporating 2017 work
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Appendix A: Notes to the March 15, 2017 NI 43-101 Resource
•
•
•
•
•
•
•
•
•
•
Footnotes to mineral resource statement:
Mineral resources are not mineral reserves and do not have demonstrated economic viability. No mineral reserves have as
yet been defined. Inferred mineral resources are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be considered for estimation of mineral reserves, and there is no
certainty that the inferred mineral resources will be realized.
Fladgate undertook data verification, and reviewed historical quality assurance and quality control programs on the
mineral resources data. Fladgate concluded that the collar, survey, assay, and lithology data were adequate to support
mineral resources estimation.
A dry bulk density value of 2.67 g/cm3 for all material was assigned from similar Meguma‐type gold mineralization with
similar rock types in Nova Scotia.
Fladgate assumed a metallurgical recovery of 90% based on a qualitative assessment of the gold mineralogy and grain
size.
Near surface mineral resources are constrained within an open pit shell optimized with an L‐G algorithm. A process and
G&A cost of $25 and a mining cost of $3.00/tonne have been used.
Underground resources have been constrained within a grade shell using a 2.0 g/t threshold, assuming a mining cost of
$50/tonne in addition to the operating costs. Isolated blocks were removed from the grade shell. The mineral resources
have been depleted using solids representing underground development and areas of stoping for post 1920’s historical
mining for which technical drawings are available, however no records are available for the abundant, pre 1920’s mining
development, which is known to have occurred throughout the property.
Blocks were classified as inferred in accordance with CIM Definition Standards.
The contained metal figures shown are in situ. The resource estimation methodology incorporates a significant amount of
external and internal dilution due to the use of 2 meter composites, probabilistic domaining and the grade smoothing
introduced by ordinary kriging with a variogram which has a short range of influence.
No assurance can be given that the estimated quantities will be produced. All figures have been rounded to reflect
accuracy and to comply with securities regulatory requirements. Summations within the tables may not agree due to
rounding.
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Appendix B: Past Drilling and Exploration
Year(s)
Company
Summary
Drilling
1961
Denison Mines Ltd.
6 drill holes totalling to test for saddle reef style vein packages on the south limb of the anticline.
609 m
1974 - 1976
Alamo Petroleum Ltd. /
Rosario Resources Corp
Ground VLF-EM survey, and 2 diamond drill holes in the Wellington Mine area.
436 m
1981
Northumberland Mines
Ltd. / NovaGold
Resources Inc
Airborne VLF-EM and magnetometer surveys. Ground VLF-EM. 6 BQ drill holes to test veins outlined by
Faribault (1898)
1,038 m
1984
55 NQ drill holes. Excavation of small open cut on six veins; ~3,500 tonnes of vein and wall rock recovered.
Collapse of the pit floor prevented selective mining and resulted in a high waste rock dilution.
6,143 m
1985
9 drill holes totalling 7,000 ft (2,134 m) along two section lines. Significant results were returned from 15
separate horizons.
2,134 m
1987
Phase 1 drilling consisted of 17 NQ holes. Phase 2 drilling consisted of extensions of 6 holes from Phase 1 and 16,029 m
24 new holes.
1988
Surface drilling of 10 NQ holes. Dewatering of Stuart shaft, rehabilitation of old workings, panel sampling,
geological mapping and 8 AX underground holes.
2,068 m
263 m
1997
Gammon Lake Resources 2 NQ drill holes on Mitchell Lake claims located 3km west of old workings.
2003-2006
Acadian Resources
11 NQ drill holes.
1,439 m
2012 - 2014
Goldworx NS
Initial evaluation and validation of NI 43-101 resource estimate produced by Mercator Geological Services
Ltd. in 2005 and 1985 Seabright Resources tailings resource estimate (non NI 43-101 compliant).
Comprehensive review and compilation of historic data. Preliminary digital model created in Datamine.
Roughly 20 drill holes are completed, however they remain unlogged and unsampled.
?
Total Diamond Drilling: 30,159 m
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Cooper Quinn
For More Information
President
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E: [email protected]
Office: (236) 521-0944
E: [email protected]
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