Max resource presentation
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MAX is focused on exploring its Majuba Hill copper/silver/gold project in Nevada. Drilling at Majuba Hill has outlined a newly defined porphyry system with potential for a large open pit deposit. Highlights of recent drilling include intercepts of up to 96 meters grading 39.2 g/t silver and 0.57% copper. The project is located near major mines owned by large producers. MAX has an earn-in agreement to obtain up to a 60% interest in Majuba Hill by spending $6.5 million on exploration over six years.
Max resource presentation
- 1. Focused on Silver/Copper/Gold Exploration in Nevada Feb 2012
- 2. Disclaimer This presentation may contain “forward-looking statements” which reflect the Company’s current expectations regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content and results of work programs, geological interpretations and potential mineral discoveries, and negotiation and closing of future financings. The statements reflect the current beliefs of the management of the Company and are based on currently available information. Accordingly, these statements are subject to known and unknown risks, uncertainties and other factors which could cause the actual results, performance, or achievements of the Company to differ materially from those expressed in, or implied by, these statements. In addition, investors are cautioned that this presentation may contain information about mineral properties adjacent to or near the Company’s properties and in which the Company has no right or interest. Mineral deposits on such adjacent or near properties are not indicative of the mineral deposits, if any, which may be found on the Company’s properties. The historic information provided has not been verified by the Company and is for reference only.
- 3. Investment Highlights Investment Highlights Max last drilling campaign at Majuba Hill has confirmed a newly defined copper/silver/gold porphyry system with potential for a large bulk tonnage open pit deposit. Many drill holes have returned over 2oz Ag Eq/t on wide intersection -Hole MM-06 returned 96 m of 39.2 g/t Ag and 0.57% Cu (2.7 Ag Eq) inclusive of 44.2 m of 71.0 g/t Ag, 0.15 g/t Au and 1.14% Cu (5,2 Ag Eq) In the vicinity of 3 major mines under development by major producers (Coeur d’Alene, Barrick and Allied Nevada) Nevada focused Experienced management with proven exploration success in Nevada Well funded - $1.5 Million in working capital Attractive share structure with only 24.5 million shares issued Low capitalization ($5 Million) vs potential for world-class bulk tonnage open pit Ag/Cu/Au deposit
- 4. Corporate Structure Share structure (Feb 29, 2012) (Feb 29, 2012) Common Shares: Common Shares: 24,505,985 24,505,985 Options: Options: 3,715,000 3,715,000 Warrants: Warrants: 2,016,755 2,016,755 Fully-diluted: Fully-diluted: 30,237,740 30,237,740 Working Capital: Working Capital: $ 1.5 Million $ 1.5 Million Market cap. Market cap. $ 5 Million $ 5 Million Management ownership: Management ownership: 36% 36%
- 5. Management Stuart Rogers - 25 years of experience in public company finance and management - founder and former CFO of Prophecy Resource Corp. (TSX: PCY) President and Director Clarence (Clancy) Wendt, - 45 years of experience in gold and silver exploration in the Americas P. Geo, F AusIMM, CP Mgmt - involved in discovery of 12 gold deposits in Nevada totaling 17 MM oz Au - Past President of Geological Society of Nevada VP Exploration and Director - recent gold discovery – Crowsnest in Southeast B.C. in 2009 Ian Smith - President of Yellowhead Mining Inc. (TSX.V: YMI) developer of the Harper Creek Cu/Au/Ag B.E. (Mining) Hons, project in B.C., potentially one of the largest copper development projects in Canada. F AusIMM, CP Mgmt - over 40 years of experience in the development of large scale open pit copper mines projects included Red Chris (B.C.) Bougainville (PNG) and La Caridad (Mexico) Director Dan MacInnis, - President of MAG Silver (Amex: MVG) P. Geo - managed and directed multi-million dollar exploration programs for Noranda Exploration, Battle Mountain Gold/Hemlo Gold, and Sargold Resources. Director - Discoveries include gold and base metal deposits in the US, Canada and Mexico.
- 6. Exploration Highlights Recent soil sampling and drilling by MAX in 2011 on Majuba to date indicate that: High-grade copper and silver oxide mineralization exists well beyond the immediate area of the past producing Majuba Hill mine. Majuba Hill is a newly defined copper/silver/gold porphyry system that has potential for a large bulk tonnage open pit deposit Two adjacent target area identified for testing: DeSoto • 2 km x 1 km high grade Ag/Cu soil anomaly within 500 m of Majuba Hill mine site • samples up to 1.53% Cu and 209 g/t Ag in soils • DeSoto soil anomaly remains open to northwest • only 2 holes drilled – drilling to resume in early 2012 Ball Park • immediately adjacent to southeast of Majuba Hill Mine; may be southeast extension of mineralized zone Drilling in early 2011 intercepts high-grade copper and silver near surface. in hole MM-06, 96 m of 39.2 g/t Ag and 0.57% Cu inclusive of 44.2 m of 71.0 g/t Ag, 0.15 g/t Au and 1.14% Cu in hole MM-07 50.3 m of 50.8 g/t Ag, 0.31 g/t gold and 0.31% Cu in hole MM-03 42.7 m of 37.5 g/t Ag and 0.38% Cu New Discovery - Dec 2011 Step out drilling intercepts 29.2 m of 30.5 g/t Ag and 0.69% Cu at DeSoto discovery zone 1.4 km to the northwest of earlier drilling. 6
- 7. Project Location and Infrastructure Majuba Hill- Copper/Silver/Gold 2,568 acres comprised of patented and unpatented claims and private mineral rights high grade Cu/Ag oxide mineralization – low cost heap leach processing 23 miles north of Liberty Silver’s Large scale bulk tonnage (TSX:LSL) Trinity silver project (NI 43- open pit potential 101 inferred resource of 1.9 MT @1.37 oz/t Ag at 0.65 oz/t cutoff) Only 23 miles off of Interstate 80 in active mining district on well maintained dirt road Close to rail, highway, power and skilled work force 35 miles north of Coeur d’Alene’s (TSX.CDE) flagship Rochester Silver Mine (NI 43-101 M&I resource of 263.9 MT @0.46 oz/t Ag and 0.004 oz/t Au) 7
- 8. Majuba Hill – Project Area Majuba Project Boundary Majuba Mountain Majuba Placers Patented Claim Boundary - 2,568 acres that include patented claims encompassing historic Majuba Hill mine
- 9. Majuba Hill – Mining and Exploration History 1907 Copper and Tin (Cassiterite) Discovered 1914-18 Mason Valley Copper - 3 Tunnels at Copper Stop - Upper, Middle, and Lower Adit - Produces 4,000 tons of 12% Cu 1942-54 Greenan-Kerr Produces 23,000 tons of 4% Cu from Copper Stope Adit 1971-74 MineFinders drills for Climax-Type Mo Porphyry - Drilling confirms extensive Cu and Ag mineralization 2005-07 Minterra Resource Corp. tests leachable copper oxide target - Completes 2,600 m of reverse-circulation drilling - High grade intercepts at Copper Stope include 145 ft @ 1.85 oz/t Ag and 0.49% Cu, inclusive of 15 ft @ 5.01 oz/t Ag. - Minterra delisted in 2008 and lets property lapse. 2011 MAX Resource Corp. enters into agreement to earn 75% interest in Majuba Hill Completes 1,800 m of core drilling with assay results up to 50% higher than Minterra’s due to improved recovery with core drilling as compared to reverse-circulation. High grade Cu and Ag mineralization intercepted near surface over long intervals (96 m) Soil geochemistry completed on unexplored western area of property that identifies significant Cu (to 1.53%) and Ag (to 209 g/t) in soils over 2 km x 1 Km area at DeSoto Discovery hole (MM-18) at DeSoto intercepts 29.2 m of 30.5 g/t Ag and 0.69% Cu DeSoto soil anomaly open to northwest; sampling to continue in 2012 9
- 10. Majuba Hill – Agreement with Claremont Nevada LLC Earn-In Agreement with Claremont Nevada Mines , LLC (a private company) allows MAX to earn an initial 60% interest in Majuba Hill over six years by spending US$6,500,000 on exploration of the property, as follows: • $500,000 in exploration work by March 4, 2012 ($880,000 completed); • a further $750,000 in exploration work by March 4, 2013; • a further $1,000,000 in exploration work by March 4, 2014; • a further $1,250,000 in exploration work by March 4, 2015; • a further $1,500,000 in exploration work by March 4, 2016; and • a further $1,500,000 in exploration work by March 4, 2017. The Company can increase its interest in the property to 75% by spending a further $3,500,000 on exploration over a subsequent two year period. Claremont must then participate in funding on a pro-rate basis to maintain its interest. The Majuba Hill property will be subject to a 3% NSR payable to Claremont, 1.5% of which may be purchased at any time for US$1,500,000. 10
- 11. 2012 Exploration targets Copper Stope Target Historic Production (8 MM lbs of Cu at 12% avg. grade, unrecorded Au and Ag) Near surface copper/silver/gold mineralization Phase I drilling: 96 m of 0.57% Cu, 39.2 g/t Ag and 0.10 g/t Au (including 44.2 m of 1.14% Cu, 71 g/t Ag and 0.15 g/t Au (starting at surface) Drilling in 2012 to test extension of mineralization from Copper Stope to Ball Park Ball Park Target Max soil sampling in August 2011 Potential extension of Copper Stope Historic drill hole by Mine Finders 1972: DeSoto Target 100 ft 0.60% Cu and 14 g/t Ag Ball Park Target DeSoto Target MAX sampling in 2011 identifies 2 x 1 km coincident high grade Ag and Cu soil anomaly that remains open to northwest Copper Stope Target Sampling returned 1.53% Cu and 6 oz/t Ag in soils Drilling in 2012 to delineate ore body for NI 43-101 inferred resource Inferred resource estimate by FYE 2012 1500 m1500 m 11
- 12. MM-6: 96.0 m @ 0.57% Cu/ 39.2 g/t Ag (1.5 to 97.5 m) MM-2: 45.7 m @ 0.56% Cu/ 15.4 g/t Ag (68.6 to 114.3 m) Incl: 44.2 m @ 1.14% Cu/ 0.15 g/t Ag/71.0 g/t Ag Incl: 9.1 m @ 0.54% Cu/ 39.3 g/t Ag MM-3: 42.6 m @ 0.38% Cu/ 37.5 g/t Ag (91.5 to 134.1 m) Incl: 10.7 m @ 0.93% Cu/ 90.2 g/t Ag MM-7: 50.3 m @ 0.31% Cu/ 50.8 g/t Ag (76.2 to 126.5 m) Incl: 19.8 m @ 0.53% Cu/ 100.1 g/t Ag MM-5: 89.3 m @ 0.28% Cu/ 16.5 g/t Ag (0 to 89.3 m) Incl: 13.7 m @ 0.47% Cu/ 30.0 g/t Ag e Zon lt Surface Projection of underground Fau workings at Copper Stope uba Maj MM-21 (2012 Plan) MM-20 (Assays pending) Majuba Hill -Copper Stope Target Looking NW 12
- 13. Majuba Hill – Copper Oxides at Copper Stope Hole MM-06 – 254 g/t Ag and 3% Cu over 5 feet
- 14. Majuba Hill – Drill Results 2011 Hole Azimuth Angle Total From To Interval Cu Au Ag Ag Eq (Oz/t) Depth (m) (m) (m) (g/t) (g/t) MM-02 243 -70 122.8 68.6 114.3 45.7 0.56% 0.07 15.4 2.0 oz/t Includes 105.2 114.3 9.1 0.54% 0.11 39.3 2.6 oz/t MM-03 263 -70 158.6 91.5 134.1 42.6 0.38% 37.5 2.1 oz/t Includes 102.1 112.8 10.7 0.93% 90.2 5.2 oz/t MM-05 279 -45 89.3 0 89.3 89.3 0.28% 16.5 1.2 oz/t Includes 1.5 15.2 13.7 0.47% 30.0 2.2 oz/t MM-06 - -90 119.8 1.5 97.5 96.0 0.57% 0.10 39.2 2.7 oz/t Includes 1.5 45.7 44.2 1.14% 0.15 71.0 5.2 oz/t MM-07 290 -45 146.4 76.2 126.5 50.3 0.31% 0.31 50.8 2.2 oz/t Includes 106.7 126.5 19.8 0.53% 0.56 100.1 4.1 oz/t MM-18 304 -45 146.2 21.9 51.1 29.2 0.69% 30.5 2.8 oz/t Note: Silver equivalency (Ag Eq. Ounces) includes silver and copper and excludes gold values and is calculated based on 5 year historic metal price trends of US$24/oz silver and US$3/lb copper. Metallurgical recovery of 100% is assumed.
- 15. Majuba Hill – Drill Holes Location
- 16. Majuba Hill – Silver Soil Geochemistry
- 17. Majuba Hill – Copper Soil Geochemistry
- 18. Majuba Hill – Drilling 2011 Majuba Hill – Drilling 2011
- 19. Majuba Hill – Outlook 2012 and beyond April 2012 – 5,000 m drill campaign: 2 x 1 km To outline > 50 MMT resource at DeSoto target Soil anomaly To extend mineralized zone at Copper Stope to 2k Ball Park m 1 x 0.75 km target area Objectives for 2012: Complete an initial resource estimate to validate our model (size and grade) Majuba Hill –resource beyond 100 MMTareas Extend and identify additional target to expand Drilling 2011
- 20. Additional Exploration Projects – 2012 East Manhattan Wash, Nevada (100%) 78 claims (1,560 acres) in Manhattan Mining District, Nye County, located 8 miles south of Kinross/Barrick Round Mountain Mine (+ 12 MM oz ounces of gold produced) Recovered 4.9 g/t gold and 1.2 g/t silver from 793 lb bulk sample in 2009. Assays from 163 soil samples taken in 2010 produced values to 1.27 g/t gold. Permit applications have been filed for an extensive drill program to determine the overall depth and grade of the mineralization. Diamond Peak, Nevada (100%) 58 claims located at the south end of the Carlin Trend, 32 miles north of Eureka and the Archimedes gold deposit (Barrick) Exploration by MK Gold in 1999 encountered: 106 g/t silver in outcrop (3.09 oz/t) which was never followed up 11.6 % of Zinc over 1.5 meters within 20 meters of surface geochemical grids in 2011 confirmed high silver zone in the south extends to the east, with soil assays of up to 5.8 g/t Ag and an outcrop sample of 53.5 g/t Ag Permitted for drilling of new gold, silver and zinc targets identified by sampling.
- 21. Tel: 1 (866) 331-5088 E-Mail: info@maxresource.com www.maxresource.com TSX-V: MXR OTC BB: MXROF Frankfurt: M1D