CORPORATE PRESENTATION
Q3 - 2013
“Partnered to develop Latin America’s next major VMS camp”
SALAZAR RESOURCES LTD.
Disclaimer
Forward-looking statements: This report includes certain statements that may be deemed
forward-looking. All statements in this release, other than statements of historical facts, that
address future production, reserve potential, exploration drilling, exploitation activities and
events or developments that the company expects, are forward-looking statements. Although
the Company believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future performance
and actual results or developments may differ materially from those in the forward looking
statements. Factors that could cause actual results to differ materially from those in
forward-looking statements include market prices, exploitation and exploration successes, availability
of capital and financing, and general economic, market or business conditions. Investors are
cautioned that actual results or developments may differ materially from those projected in
the forward-looking statements.
Kieran Downes, P.Geo., a qualified person as defined by National Instrument 43-101, has
reviewed and verified the technical information in this presentation.
El Domo NI 43-101 Resource
*
Category Cut-off Tonnes Copper Zinc Lead Gold Silver ContainedCopper ContainedZinc ContainedLead ContainedGold ContainedSilver
$ (Mt) (%) (%) (%) (g/t) (g/t) (M lbs) (M lbs) (M lbs) (Kozs) (Kozs)
Indicated 50 5.53 2.4 2.5 0.3 2.8 48.4 292.6 304.8 36.5 498.0 8,605
Inferred 50 1.46 1.9 2.8 0.3 2.4 52.2 61.2 90.1 9.6 112.6 2,450
Investment Highlights
Major near surface high grade discovery with a NI 43-101 resource estimate
Completing preliminary economic assessment (PEA) on the El Domo property at the Curipamba project
Looking to be next VMS producer in Latin America
100% ownership of all properties–No NSR royalties
Richest combined metal grades of all VMS deposits in the Andes
Strategic investors including: Lundin Mining (13.5%), Trafigura (13%) and Silvercorp Metals (9%)
Salazar team instrumental in Ecuador’s most significant discoveries including Fruta del Norte (13.7M oz. gold)
El Domo remains open in several directions with an additional 10,000m drilled since last resource calculation
Only 20% of Naves Central Zone has been explored, with 8 additional high priority anomalies to be drill tested
Share Structure
TSX-V Symbol SRL Shares Outstanding 53,567,487 Options Outstanding 967,500 Warrants Outstanding 6,582,728 Fully Diluted 61,117,715 FD Market Capitalization (C$mm) 10.1mWarrants Expiry Date
3,060,000 @ $0.65 Feb. 2, 2014 1,250,000 @ $0.40 Sept. 26, 2014 2,272,728 @ $0.35 Dec. 10, 2014 As of August 16, 2013 Management Trafigura Lundin Mining Silvercorp. Metals Float
Key Personnel
Fredy Salazar, President & Chief Executive Officer M.Sc., 27 years experience, Newmont
Exploration, original work on Fruta del Norte
Pablo Acosta, Chief Financial Officer
CPA, Private company experience, 7 years with Salazar
Nick DeMare, Corporate Secretary
CA, President of Chase Management, Director of public companies
Juan C. Ortiz, B.Sc., M.Eng, Director
Corporate project manager of the mining division of Trafigura Group
Graeme D Robinson, Director
43 years experience, 20 years operation and development, projects in Asia, North
America and South America
Etienne Walter, Director
Honorary Consul General of the Republic of ????? Ecuador
Francisco Soria, Ing., Exploration Manager
22 years geological experience, 8 years with Newmont, specializing in South America
Kieran Downes, Ph.D., P.Geo, Qualified Person
Over 40 years diversified experience in gold, base metals, uranium and diamond exploration
Jim Franklin, Ph.D., FRSC, P.Geo, Technical Consultant Exploration geologist with 40 years of experience,
focusing on the discovery of base metal, uranium and gold deposits
James Mayor, Technical Consultant
43 years in the Mining-Exploration Industry, 37 years with Newmont Mining Corporation
Warren Pratt, Ph.D., P.Geo, Technical Consultant
25 years experience, worldwide Consultant, expert in mapping
Flagship Project:
Curipamba
–
VMS Camp
Other Projects:
Santiago - Hydrothermal Au and
porphyry Cu-Au
Rumiñahui - Au quartz stockwork
Mendez - Cu-Zn-Mo porphyry
CURIPAMBA PROJECT
RUMINAHUI PROJECT
MENDEZ PROJECT
SANTIAGO PROJECT
The Salazar team
has
discovered a high grade VMS camp with
gold-rich Cu-Zn VMS and structural zones. The mineralized body
now has a strike length of 850m North
–
South and an East
–
West
width of between 300-500m, with an average thickness of 10m.
The body is sub-horizontal from 50m to 150m below surface. The
Company is now completing its PEA at El Domo.
Curipamba Project
100% owned (30,327.18 hectares)
Located in the Western Cordillera of Ecuador
2.5-hour drive from Guayaquil
20 km from Pan-American highway and
15km from
a power line
Host to a new volcanic massive sulphide
camp controlled by Salazar
39,190m drilled in 206 holes
Extensive drilling has defined an intact,
upright and only mildly disturbed
Kuroko-type VMS deposit
El Domo VMS Deposit
El Domo
Deposit discovered
in 2008
In Las Naves concession, where El Domo
Deposit is located, a total of 35,444 m were
drilled in 188 holes.
El Domo remains open in all directions with
an additional 10,000m drilled in 51 holes
since last resource calculation in October
2011
.
For the resource estimate made in
November
2011, 78 holes and 874 assays
were considered (
see technical report filed on SEDAR – February 1, 2012).
8 high priority geophysical anomalies still to
be drill tested around El Domo Deposit
.
The footwall at El Domo is a classic felsic flow
dome complex, very similar to Kuroko,
Tasmania and Noranda.
Model 3D El Domo Deposit
El Domo body of mineralization
Several drill holes intersected a
massive to semi-massive sulphide
mineralization under the andesite
sill, several of these with faulted
zones.
The persistence of the mineralized
horizon eastwards beneath the
andesite is highly significant as it
shows the mineralization is not cut
off and there is a significant area yet
to be explored
El Domo remains open in all
directions
El Domo - Drill Hole Highlights
Gold and silver deportment studies completed by Surface Science Western on July 18, 2011 indicate that gold occurs in two forms:
61.3% visible microscopic (free)
38.7% sub-microscopic
A metallurgical study completed by G&T Metallurgical Services on April 21, 2011 indicated:
Preliminary batch testing using conventional flotation processes obtained a concentrate grade of 22%
Rougher Flotation method recovered 92% Cu and 57% Zn
Cleaner Flotation method recovered 72% Cu and 57% Zn
Preliminary metallurgy studies show good recoveries
A same-scale comparison of selected VMS districts. A 5 km diameter circle around each deposit shows the hypothetical area of influence of proximal-scale alteration about each deposit, all encircled by a dashed line defining the proposed extent of a regional-scale alteration system for each camp
The Curipamba District has excellent potential for additional discoveries:
The Curipamba (El Domo) is the mayor hydrothermal centre with VMS (volcanogenic massive sulphide) mineralization in the Ecuadorian Andes
Each of these centres should contain a VMS complement similar to that
discovered in well developed districts elsewhere, typically containing at least 20 million tonnes, and possibly as much as 50million tonnes
The Curipamba District has the potential of a further cluster of deposits that includes at least one >30Mt
The Curipamba district has all of the features of a major district, comparable in metal content to a classic camp such as in the Tasman Orogen or the Superior Province of Canada
El Domo may prove to be the most significant deposit. Such camps typically contain a minimum of 6 deposits with economic metal content. One of these is normally the “giant”, containing more than 30mt of ore.
The potential for additional discovery in the Curipamba area is excellent
Curipamba VMS District
Ref.: Observations on the Curipamba Massive Sulfide District, Ecuador
Report For Salazar Resources Ltd. by James M Franklin Ph.D., P. Geo
Other Curipamba Targets
1. Sesmo: Hydrothermal Breccia + polysulphides, 15m @ 39.19/t Au, 741 g/t Ag in Trench
2. El Gallo: 597m drilledin 5 holes, highlighted results: 6.95m@ 4.51 g/t Au, 157 g/t Ag in drill hole 15; 8.25m @ 5.80 g/t Au and 66g/t Ag in drill hole 16
3. Sesmo Sur: 3,746 m drilled in 18holes; highlighted results: 12m @ 2.25 g/t Au and 31 g/t Ag in drill hole 01; 15m @ 2.54 g/t Au and 50 g/t in drill hole 05
4. La Vaquera: Strong argillic–chlorite pyrite alteration in 1.2 x 2.5 km area
5. Agua Santa: Semi massive + jasper float, with anomalous values in Au, Cu and Zn
6. Barranco Colorado: Stockwork of pyrite + sphalerite, with traces of chalcopyrite in dacite rhyolite, and float of jasper-pyrite of up to 1m diameter in an area of 0.5 x 1km
7. Coral (Piedras Blancas) : Approx. 2.5 km NE; intense
alteration chlorite-argilic (2km x 1km), significant anomalies of Au-Ag-Cu in rocks. Sample N50, 1.01g/t Au; 4.1 g/t Ag; 0.1 % Cu; 0.33 % Zn. 2 7 6 4 3 5 1
Community and Social
The Community Relations Plan of the company approved by the Ecuadorian State, promotes a sustainable environment of good vicinity in the zone of influence of the project Curipamba, through citizen participation practices and respect to the local identity. This will enable the development of the social participation of the people and organizations and the plan is reflected in the programs, projects and activities in several fields as Education, Health, Sports, among others.
In strategic alliance with the Foundation COADE we implemented specialty medical teams.
Additionally, we carried out 2 checking ophthalmologic brigades and donation of glasses in Las Naves and San Luis de Pambil with a total of 400 persons from 25 communities, with the support of the Foundation “Vista para Todos”
As part of our Enterpreneur Social Responsibility policy we support the ventures of the community actors with the purpose of maximizing their capabilities, developing their strengths and influence in the welfare of the environment.
Appendix: Other projects
Santiago Project - Hydrothermal Au and porphyry Cu-Au
Rumiñahui - Au quartz stockwork
Mendez - Cu-Zn-Mo porphyry
Colombian Assets
Santiago Project
37 km NNW of Loja, area of 2,350 hectares
Newmont 1990: 4,578m drilled in 23 holes
Comprises a large mineralized hydrothermal system with the upper parts dominated by a rhyolite/dacite intrusive complex displaying intense quartz-alunite alteration. In the Northeast of the concession, a controlled structurally trend of quartz-sulphides characterized to discover gold-silver deposits.
Trend NW plus 5 vein - breccia from 1 to 5 m wide with intense mineralization of Au-Ag.
Española Vein, (up to 3m wide) ranged from 2.3 to 34.5 g/t Au and from 26 g/t Ag to 230 g/t Ag.
Santiago Project - Historical work 1993
Hole # Interval (m) Width (m) Au (g/t) Cu (%) Cu equiv DDH-FU-001 0 - 323 323 0.37 0.23 0.47 DDH-FU-002 129 - 300 171 0.50 0.33 0.66 DDH-FU-008 0 - 300 300 0.24 0.11 0.27 DDH-FU-015 0 - 72 72 0.35 0.10 0.35 DDH-FU-016 43 - 93 50 0.43 0.25 0.53 DDH-FU-017 54 - 150 96 0.21 0.32 0.46 DDH-FU-018 0 - 59 59 0.62 0.06 0.47
Newmont Drilling Porphyry Highlights (4578m in 23 holes):
Vein chip sampling highlights:
Española Vein:
• 2.0m @ 28.1 g/t Au and 231 g/t Ag
• 1.0m @ 26.0 g/t Au and 242 g/t Ag
Structure Quartz-Tourmaline:
• 3.3m @ 0.59 g/t Au, 36.6 g/t Ag and 390 ppm Mo
Ribs Zone and Ancha Vein:
• 1.0m @ 1.29 g/t Au and >100 g/t Ag
• 1.0m @ 1.65 g/t Au and >100 g/t Ag
Structure Fierro Urco:
• 1.40m @ 4.8 g/t Au and 378 g/t Ag
Previous Drilling
Fierro Urco Vein–1.5m @ 6.4 g/t Au and 136 g/t Ag 37m @ 0.18%Cu 91m @ 0.16%Cu OPEN MINERALIZATION 148m @ 0.36% Cu 10m @ 0.21% Cu 342m @ 0.23%Cu SOURCE: ARMENO
