TSXV:HVG www.harvestgoldcorp.com TSXV:HVG www.harvestgoldcorp.com DISCOVERY DRILLING AT CERRO CASCARON A new and undrilled high grade gold/silver district in Mexico February 21, 2018 Corporate Presentation
TSXV:HVG www.harvestgoldcorp.comTSXV:HVG www.harvestgoldcorp.com
DISCOVERY DRILLING
AT CERRO CASCARON
A new and undrilled high
grade gold/silver district
in Mexico
February 21, 2018Corporate Presentation
TSXV:HVG www.harvestgoldcorp.com
Some statements in this presentation contain forward looking information. These
statements address future events and conditions and, as such, involve inherent risk
and uncertainties. Actual results could be significantly different from those projected.
Risks and uncertainties of the Company’s business are discussed in the Management
Discussion and Analysis of the Company’s Annual and Quarterly Reports, available
both on the Company’s website at www.harvestgoldcorp.com and at www.SEDAR.com.
A number of mineral resources or significant occurrences disclosed herein relate to
nearby properties owned by other companies, and the data presented have been
extracted from these companies’ press releases and websites. A Qualified Person has
been unable to verify this information from the adjacent properties, and such results
are not necessarily indicative of potential quantities or grades of mineralization on the
Company’s properties.
Warren Bates, P.Geo., Director of Property Investigation for Harvest Gold, the
Qualified Person for this document for the purposes of National Instrument 43-101,
prepared or supervised the preparation of the technical information contained herein.
Forward looking information
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The World Needs New Major Discoveries
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Harvest Gold’s New Acquisition |
Cerro Cascaron
A high grade, epithermal
gold/silver discover in the Sierra
Madre Occidental, Chihuahua,
Mexico
Showing coarse visible gold
(1,670 g/t Au) imbedded in
manganese oxide from
Serpiente Dorado prospect
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Discovery Drilling
Typical Exploration Stock Price Cycle
Initial Drill Success
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▪ 69 km2 project encompassing a new high-grade epithermal gold/silver district located in the
Sierra Madre Occidental (SMO) region of Chihuahua state, Mexico
▪ Bonanza grades of up to 1,670 g/t Au and 1,490 g/t Ag in main gold field
▪ Gold – rich, low sulfidation epithermal system – similar to La Cienega and Palmarejo;
▪ 16 quartz and quartz-breccia veins up to 25 m wide, 1800 m long and 900 m vertical extent
▪ Sampling of adits at Cascarita returned five channel sample cuts with widths of 1.4 to 3.3 metres
that grade between 231 and 542 g/t silver equivalent*;
▪ Road accessible, but no modern exploration
A Company Making Opportunity |
Cerro Cascaron
TSXV:HVG www.harvestgoldcorp.com
▪ Former VP of Exploration for Francisco Gold Corp. and Chesapeake Gold
▪ Credited with the discovery and development of:
▪ The ~1.75M+ ounce El Sauzal gold deposit in Mexico (acquired by
Glamis Gold in 2002 for $344 million and (operated by Goldcorp);
▪ The co‐discovery of the ~5M ounce (gold equivalent) Marlin gold‐silver deposit in Guatemala in 2000 (now owned by Goldcorp);
▪ The ~1.2M+ ounce La India gold deposit (acquired by Agnico‐Eagle in takeover of
Grayd Resource Corporation in 2011 in transaction valued at $275 million; and
▪ The discovery of the ~18.5M gold, 526M ounce silver Metates project owned by
Chesapeake Gold.
▪ In 2014, Alain received the Ostokakani Award for his outstanding contribution to the
Exploration and Mining Industry of Mexico.
Alain Charest | Vice President Exploration, Mexico, Evrim Resources
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Located in a Prolific Belt of World Class Gold and Silver mines | ‘Elephant Country’
Cerro Cascaron is 55 km southeast of Goldcorp’s
past producing 1.75 M oz Au El Sauzal Gold mine
Other major mines in SMO:
Palmarejo (1.25 M oz Au; 82 M oz Ag)
Ocampo (2.5 M oz Au; 118 M oz Ag)
Mulatos (4.7 M oz Au)
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10 kmCascarita:SILVER
Newly discovered silver rich breccia pipe – up to 1,170 g/t Silver, 1.6% Zinc; 1.8 % Lead
8 km
Cerro Cascaron | District Size (69 km2) Geology and Gold Occurrences
Cascaron:GOLD
Vein field with rock samples > 10 g/t Au
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La PrietaTourmaline breccia;
39.7g/t Au, 20.9g/t Ag
Mina San Pedro (behind hill)Quartz after bladed calcite;
1.3m @ 12g/t Au
Mina DoloresBanded Quartz;
30.9g/t Au, 376g/t Ag
Julieta/Serpiente DoradaVisible gold;
1,670g/t Au, 1,490g/t Ag
Divisadero9.24g/t Au, 134g/t Ag
>10 g/t
3-5 g/t
1-3 g/t
.5-1 g/t
.1-.5 g/t
Au in rock chips
LVS Andesites
UVS Rhyolites
Granodiorite
Cascaron | Topography and Veins
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▪ Pathfinder soil samples identify
vein locations, deposition
temperature and vertical
zonation of vein forming
minerals
Cascaron | Pathfinder Soil Samples
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Vein NameOriginal sampled length (m) from rock sampling
Conceptual length of vein corridor from gold, silver
or pathfinder geochemistry (m)
Comment
Serpiente Dorada 400 1,400
Open along strike to
southwest. Strong Au,
Ag, Sb, Mn
New Vein (from soils) 0 1,800 Strong Au, Ag, Sb, Hg
La Puerta 0 600 Au, Ag
Dolores Vein 300 950 Strong Ag, Sb, Pb
San Pedro Parallel (New target from soils)
0 800
Located 300 m to the
east of San Pedro Strong
Ag, Sb
San Pedro 200 1,500
Open to north and
south along strike
Strong Ag, Hg, Pb, Mn
Carabina 250 1,800
Open to north and
south along strike Au,
Ag, Pb, Zn, As, Sb, Mn
Cascaron | Geochemistry has Extended Vein Lengths to up to 1,800m
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Low-intermediate sulfidation
epithermal vein deposit model for
Cerro Cascaron confirmed by
geochemistry and rock textures
Carabina NorthSan Pedro NorthEl SaltoSerpiente NorthJulieta North
DoloresSan Pedro
Cascaron | Deposit Model
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Cascaron | Drill Target Methodology
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Cascarita Silver Target | A New
Drilling Priority
▪ 1,170g/t Silver and 2.72g/t Gold
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▪ Sampling shows ore grade silver+lead+zinc mineralization over widths
greater than 3 m (5 km from main vein field)
Figure 11: Cascarita Mine Area Geology Plan and Sample Line Locations
C12
C11
C10
C14 C13
C15
C8
C6
C4
C9
C7
C5
C1
C2
C3
C12
Cascarita Silver Target | Adit Sampling Sample Width Silver Lead Zinc Ag-Eq*
Cut (metres) (g/t) (%) (%) (g/t)
C10 1.4 114 5.24 1.28 402
C11 2 127 8.73 0.54 524
C12 2.3 311 1.60 0.26 393
C13 2.1 245 6.42 0.49 542
C14 3.3 104 2.40 0.48 231
*Note: Silver-Equivalent Ag-Eq = Ag + (Pb%*22.046*Pb price*31.103/Ag price) + (Zn%*22.046*Zn price*31.103/Ag price). Metal prices used for this formula: Ag = $US
16.25/oz, Pb = $US 1.00/lb, Zn = $US 1.25/lb. Recoveries of 100% are assumed for the silver-equivalent values.
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▪ Drillhole planning from Harvest Phase 1 program completed;
▪ Priority One targets directly beneath sampled surface mineralization
▪ Priority Two stepping out from known mineralization, targeting structural
intersections and geochemical signatures
▪ Proposed ~3000 meter initial program targeting six veins at Cascaron and
two veins at Cascarita. Hole depths of 50-300 meter's.
Cerro Cascaron | Ready to Drill Now
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▪ Warren Bates, P.Geo. – Director of Property Investigation ▪ 30+ years experience in mining and exploration, focused on gold, porphyry copper, VMS and nickel. >10 years
experience as VP Exploration for Pelangio Exploration Inc.
▪ Alain Charest, P.Geo. – V.P. Mexican Exploration, Evrim Resources Corp.▪ 30+ years of field geology with an emphasis on Latin America▪ Discovered/co-discovered El Sauzal (Mexico), Marlin (Guatemala), La India (Mexico) and Metates (Mexico)▪ Received prestigious Ostokakani Award in 2014 for his contribution to Mexican exploration & mining
▪ Charles Funk, P.Geo. – V.P. New Opportunities and Exploration, Evrim Resources Corp.▪ 11+ years of experience reviewing exploration opportunities in the Americas for Newcrest Mining and OZ Minerals▪ Part of the Oxiana/OZ Minerals discovery teams for at Ankata and Khamsin IOCG deposits in South Australia
▪ David Mosher, P.Geo – Independent Director▪ 35+ years of Canadian resource company management and geological experience▪ Former President and CEO of High River Gold Mines Ltd. – opened 5 mines in Russia and West Africa▪ Has raised over $300M for mine financing and exploration since 1993
▪ Neil Richardson, P.Geo. – President of Forensic Geoscience North Inc., a geological consultancy▪ >28 years experience in exploration for VMS, gold and magmatic nickel-copper sulphide deposits ▪ COO of VMS Ventures Inc. and North American Nickel from 2011 to 2015. ▪ While at VMS Ventures, led the Joint Venture technical committee overseeing development of the Reed Mine▪ >thirteen years at Hudbay Minerals Inc. in mine and exploration geology and was part of the team that discovered
numerous base metal zones in Manitoba and Saskatchewan.
▪ Len Brownlie, P.h.D. – Consultant ▪ 30+ years experience in management of gold and silver mining and exploration companies. Former President and
CEO of Africa focused Goldrush Resources Ltd. (merged with First Mining Finance Corp. in 2016) and a Director and Secretary of Mexican silver producer First Silver Reserve Inc. (merged with First Majestic Silver Corp. in 2006)
Harvest Gold Technical/Advisory Team
TSXV:HVG www.harvestgoldcorp.com
Harvest Gold will acquire up to an 80%* interest in the Cerro Cascaron by:
▪ Paying lease payments and property costs of $240,000 over 3 years to earn 70%; and
▪ Harvest can earn an additional 10% by funding a compliant feasibility study within
an additional 5 years while spending a minimum of $2.0 M/year or delivering
200,000 shares to Evrim; and
▪ paying $200,000 upon delivery of the feasibility study.
▪ Harvest can “delay” the 2nd or 3rd year exploration expenditures by paying Evrim
$100,000 per year.
Time Exploration (CDN) Cash (CDN) Shares
On TSX.V Approval - - 1,000,000*
End of Year 1 $1.0 million $200,000 -
End of Year 2 $1.0 million $100,000 -
End of Year 3 $2.0 million $100,000 -
End of Year 4 $2.0 million $500,000 1,000,000
TOTAL $6.0 million $900,000 2,000,000
*subject to a 1% NSR royalty payable to each of two property vendors. If Evrim’s interest falls below 10%, their residual interest will revert to an additional 2% NSR royalty
Cerro Cascaron Project | Deal Structure
TSXV:HVG www.harvestgoldcorp.com
TSX Venture Exchange (Canada): TSXV:HVG
Shares Issued:▪ Warrants (27.5 M at $0.10; expire September, 2018
▪ Potential $2,750,000
Major Shareholders▪ Original shareholders after 10:1 rollback (Price 50c):
▪ CanaSur Shareholders after 4.6:1 rollback (Price 25c):
▪ September 2016 private placement (27M @ $0.05)
▪ Management:
Trading Details▪ Current price:
▪ Market Capitalization:
▪ 1 Year Trading Range:
▪ Avg. daily trading volume (previous two months)
Corporate Information
51,782,864
~20%
~32%
~20%
~10%
$0.05
~$2.6 million
$0.035 - $0.10
~80,000
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Harvest Gold Directors and Management▪ Rick Mark, M.Ed (Admin) – President, CEO and Chair, Director
▪ Over 30 years of Canadian public resource company management
▪ Led efforts to raise over $85M in the last 12 years
▪ Former President and CEO of VMS Ventures and North American Nickel
▪ David Mosher, P.Geo – Independent Director
▪ >35 years of Canadian resource company management and geological experience
▪ Former President and CEO of High River Gold Mines Ltd. – opened 5 mines in Russia
and West Africa
▪ Has raised over $300M for mine financing and exploration since 1993
▪ Joel Matheson, Q.C. E.C.N.S. – Independent Director; Chairman of CanaSur, Harvest’s
Suriname subsidiary
▪ Held elected positions in the Government of Nova Scotia including Minister of Finance, Mines and Energy, Justice and Attorney General
▪ Ed Zablotny – Independent Director
▪ >35 years venture capital markets, trading, credit and compliance experience
▪ Christopher Cherry, CA, CGA - CFO and Director
▪ >15 years corporate accounting and audit experience
TSXV:HVG www.harvestgoldcorp.com
▪ New high grade gold and silver discovery with significant size and depth
potential and multiple drill targets in a belt of world class deposits;
▪ Mining friendly, politically stable jurisdiction;
▪ Straightforward deal to allow Harvest to acquire 80% interest in project;
▪ Experienced and knowledgeable exploration team in place – no need to
“re-invent the wheel”;
▪ Low cost opportunity to participate in leverage associated with discovery
of a potential world class gold district.
Summary | Cerro Cascaron - The right deal at the right time
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Head Office:Suite 804 – 750 West Pender St.
Vancouver, BC
V6C 2T7
Contact: Rick Mark, Pres. & CEO
Email: [email protected]
Telephone: 604-682-2928