WILLA
MAX
Developing B.C. mining assets to create profitable gold production
TSX-V: DVN
PROJECT
Reach us at 604 818 1706
May 2014
Management Team
Akash Patel, President and CEOMr. Patel has received a bachelor in accounting from the British Columbia Institute of Technology with a major in accounting and minor in finance.
Walter (Del) Marting, Director
Walter A. Marting, Jr. has spent a large part of his career both as a senior executive for a Fortune 500 mining company and starting and running his own junior gold mining company. Mr. Marting joined Amax Inc. as an underground mine Production Supervisor at Amax’s Climax
Molybdenum property in Climax, Colorado. Mr. Marting spent two years working underground and in Climax’s open pit operation before moving to the Company’s headquarters in Greenwich, CT. In 1982 Mr. Marting was named Vice President — Finance for Amax Europe in Paris, France. Mr. Marting helped build Amax’s global mining presence from its Paris headquarters and had financial oversight of the company’s European and African exploration and development and ore processing activities. He left Amax in 1984 to start his own mining company that undertook the re-opening and operation of the famed 16-1 Mine in Allegheny, CA.
Kenneth C Phillippe, B. Comm, CA., Chief Financial Officer
Mr. Phillippe is a Chartered Accountant licensed to practice in British Columbia. He received a Bachelor of Commerce degree from the University of British Columbia in 1976 and obtained his professional accounting designation in 1981, after articling with the firm of Thorne Riddell (now KPMG)
Neil Hill Morgan, Director
Mr. Morgan has over 30 years of business experience encompassing a wide range of corporate experience in sales, management and ownership of many successful business enterprises.
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Cautionary Statement
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TSX-V: DVN
CAUTION REGARDING FORWARD LOOKING STATEMENTS:
Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes “forward-looking statements” within the meaning of the Private Securities Act of 1995. Such forward-looking statements, including but not limited to those with respect to the price of copper, gold and silver, the timing and amount of future production, costs of production, reserve and resource determination and reserve conversion rates, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks relating to the integration of acquisitions, risk relating to international operations, risks relating to joint-venture operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project and exploration parameters as plans continue to be refined, future prices of copper, gold and silver. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES:
This presentation uses the terms “Measured”, “Indicated” and “Inferred” Resources. U.S. Investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. “Inferred
Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. Investors are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into reserves. U.S. Investors are also cautioned not to assume that all or any part of an Inferred Resource exists, or is economically or legally mineable.
Corporate Structure
(May 1, 2014)
Discovery Ventures Inc.
TSX-V: DVN
Shares issued:
49,462,999
Options:
1,250,000
Fully Diluted Shares:
50,712,999
TSX-V: DVN
Reach us at 604 913 0279
Business Plan / Opportunity
Delivering an orphaned gold resource to a shuttered concentrator will result in a very profitable
gold operation in the near-term; with upside potential
of long-term/expanded precious and base metals resources.
Willa Deposit Gold + Copper + Silver
• 2012 43-101 Technical Report by Wayne M. Ash, P.Eng.
• Approximately 1mT @ 6.3 g Au/T, 10.8g Ag/T, and 0.79% Cu
• Underground development, 198,000 m drilling, advanced permitting
• Approximately $18 million (1980 dollars) spent to date by BP Minerals, Rio Algom & Northair
• Open in 3 directions and fully developed
TSX-V: DVN
MAX Mine and Mill
• Modern (2007) processing, office, camps and other infrastructure
• 2004 43-101 Resource Estimate by Macauley
• 43 mT global resource (currently on care and maintenance)
• Underground Mo Mine developed and permitted
• $95m+ spent to date (includes $20m by Newmont)
The Willa gold-copper-silver deposit is located in one of the most highly
mineralized regions of B.C. for base and precious metals.
Project Location
Combining Willa Gold – Copper – Silver Deposit With Max
Mill
Willa Deposit
Max mill location
135 Km Route
Willa Deposit
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2012 - Updated 43-101 Resource completed
and data base digitized.
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Preliminary mine design and mine schedule
completed in 2005 based on the new
Mineral Resource estimate. Study done at
$400/Au and $1.75/Cu price environment =
<15%IRR.
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596 drill holes totaling 189,000 feet (57,250
meters) of core drilling and 8,500 feet
(2,575 meters) of underground workings,
extensive geophysics and sampling
consisting of 19,780 analyses for gold,
copper and silver.
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1980’s to 2005 reported to cost $18 million.
1025m Level Adit & Dump
1100m Level Adit & Dump 1100 Level
Current 2012 43-101 Willa Resource (including inferred)
based upon the Wayne Ash, P.Eng. November 2012 Report
Cutoff – 3.5 g/t Au TSX-V: DVN 9 Category Tonnes Au (g/mt) Cu (%) Ag (g/mt) Measured 495,784 7.18 0.94 12.16 Indicated 262,415 5.71 0.67 13.26 Total 758,199 6.67 0.85 12.54
MAX Mine – Mill
MAX Molybdenum Mill & Concentrator
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500 tpd Capacity
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100% FortyTwo Metals Inc. (Wholly-owned
subsidiary of Roca Mines Inc.)
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43 Mt Molybdenum 43-101 compliant resource
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Initial production April 2008 – November 2011
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Production stalled by Molybdenum price and capital
required
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Total mined to date = 430,000 T at 0.5% Mo
(diluted head grade)
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All plant, camp, permits, bonds, resource and tax
losses included
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Estimated Tax Loss pools in FortyTwo Metals =
$50M
Total purchase price = $5.5m
Initial $1.8M deposit earning a 35%
interest and balance to be paid in 3
months.
Willa Phase 1 Plan
• Acquisition Cost Willa = $3m + Shares over time (not in Capital)
• Phase 1 plan focuses on initial 475,000 T from larger Willa resource
• Requires Road upgrade, underground rehab and development,
site offices etc
• Preliminary Willa Mine Capital Cost estimate = $ 3.84M (+25% contingency)
• Permitting, administration, engineering & bonding included in costs
TSX-V: DVN
Reach us at 604 913 0279
TSX-V: DVN
