toroparu gold project - sandspring resources · 2019-09-25 · toroparu gold project corporate...

TOROPARU GOLD PROJECT

CORPORATE PRESENTATIONSeptember 2019

TSX‐V: SSP OTCQX: SSPXF

CHICHARRON SILVER‐GOLD PROJECTLocated in the Gran Colombia Segovia District

Re‐Scoped PEA Creates New Opportunities Now 10.5 million‐ounce Toroparu Gold Project in the Guiana Shield

High Grade, Potential Near‐Term Production

TSX-V: SSP | OTCQX: SSPXF

Forward‐looking StatementsCautionary Note Regarding Forward‐Looking Information: Except for statements of historical fact relating to Sandspring Resources Ltd. (the “Company” or “Sandspring”), certain information contained inthis presentation constitutes “forward‐looking information” under Canadian and U.S. securities legislation. Forward‐looking information includes, but is not limited to, statements with respect to thepotential of the Company’s properties; the future price of gold; success of exploration activities; costs and timing of future exploration and development; the estimation of mineral resources; conclusionsof economic evaluations; requirements for additional capital; and other statements relating to the financial and business prospects of the Company. Generally, forward‐looking information can beidentified by the use of forward‐looking terminology such as “plans,” “expects,” or “does not expect,” “is expected”, “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” or “doesnot anticipate,” “believes,” or variations of such words and phrases. Forward‐looking information is based on the reasonable assumptions, estimates, analysis and opinions of the management of theCompany made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that the management of the Company believes to berelevant and reasonable in the circumstances at the date that such statements are made. Forward‐looking information is inherently subject to known and unknown risks, uncertainties and other factorsthat may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward‐looking information,including but not limited to risks related to: the Company’s goal of creating shareholder value by concentrating on the development of the Toroparu Gold Project, believing that it has the potential tocontain economic gold deposits; the Company’s assessment of future plans for the Upper Puruni property; managements’ economic outlook regarding future trends; the Company’s exploration budgetfor the Upper Puruni property, and in particular, the availability of skilled labor, timing and the amount of the expected budget; the Company’s ability to meet its working capital needs at the currentlevel in the short term; expectations with respect to raising capital; sensitivity analysis on financial instruments may vary from the amounts disclosed; and government regulation and environmentalliability, as well as those risk factors discussed or referred to in the Company’s continuous disclosure filings with the securities regulatory authorities in Canada available at www.sedar.com. Although theCompany has attempted to identify important factors that could cause actual results to differ materially from those contained in forward‐looking information, other factors could also cause materiallydifferent results. There can be no assurance that forward‐looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in suchstatements. Accordingly, readers should not place undue reliance on forward‐looking information. The forward‐looking information contained herein is presented for the purpose of assisting investorsin understanding the Company’s expected financial and operational performance and the Company’s plans and objectives and may not be appropriate for other purposes. The Company does notundertake to update any forward‐looking information, except in accordance with applicable securities laws.

Preliminary Economic Assessment ReportThe Preliminary Economic Assessment, prepared by SRK Consulting (U.S.) Inc. with an effective date of June 11, 2019, is entitled “Preliminary Economic Assessment Report, Toroparu Gold Project, UpperPuruni River Area, Guyana”. PEA economics were calculated using a base case of US$1,300/oz gold and US$3.00/lb copper. The PEA Study has been filed on SEDAR at www.sedar.com.

Resource EstimatesThis document uses the terms “resources”, “measured resources”, “indicated resources” and “inferred resources”. United States investors are advised that, while measured resources, indicatedresources and inferred resources are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission (the “SEC”) does not recognize them. Under UnitedStates standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the timethe reserve determination is made. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Further, inferredresources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources willever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally oreconomically. Disclosure of “contained ounces” is permitted disclosure under Canadian regulations, however, the SEC normally only permits issuers to report “resources” as in place tonnage and gradewithout reference to unit measures. Accordingly, information concerning descriptions of mineralization and resources contained in this release may not be comparable to information made public byUnited States companies subject to the reporting and disclosure requirements of the SEC. National Instrument 43‐101 Standards of Disclosure for Mineral Projects (“NI 43‐101”) is a rule developed bythe Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. All resource estimatescontained in this circular have been prepared in accordance with NI 43‐101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System.

CAUTIONARY NOTESForward‐looking Statements and Cautionary Notes

2

TSX-V: SSP | OTCQX: SSPXF 3

SANDSPRING ‐2019 GOING FORWARDFlagship Toroparu and Chicharrón

• Increasing Gold Prices• Improved economics

• Longer mine life

• Two Phases of development:

• 1999 – 2009 Private Venture

• 2009 – 2019 Public Company

• Continuity of Management

• Years of experience in all aspects of mining industry

• Potential near term production

• New zone identified• Historical production

on site

• New PEA based on feasibility level information

• Improved economics, longer LOM

• Reduced Capex, Costs• Recognized Jurisdiction

Upgraded Toroparu Chicharrón

LeverageExperienced Board &

Management

Ranked #8 on The Northern Miner’s top 10 US‐based Mid‐Tier & Junior Precious Metals Companies


FLAGSHIP ASSETToroparu: Largest gold project in South America held by a junior

Toroparu

4.5Moz Au total production over 24 yr LOM

$1.25B A/T Free cash flow (with Wheaton PMPA)*

20.3% A/T IRR*, $495M A/T NPV5%, AISC $812 LOM

$378M Initial Capex$272M Financing Requirement

2.92 year Payback

Toroparu Exploration Upside

Satellite deposit potential (53k ha property area)

Mark Bristow: “the Guiana Shield, a significantly underexplored region and one of the most

prospective in the world for large scale gold discoveries”

In situ infrastructure for exploration

De‐Risked

Environmental Authorization & Mineral Agreement in place

Excellent relationship with Guyana Government

Strong Social License ‐ RoadConstruction – Pontoon Operation

Demonstrated exploration successes

*For Base Case @ US$1300/oz Au


TOROPARU PEA HIGHLIGHTSBase Case Metrics including Wheaton Precious Metals Support

Capital Requirements of

$272M(including

Wheaton PMPA)

4.5M oz Au Production

24 Year LOM

A/T FCF $1.25B

A/T IRR of 20.3%

A/T NPV5% of $495M

2.92 year Payback


PEA HIGHLIGHTSToroparu: Largest gold project in South America held by a junior

Metric w/o PMPA w/ PMPA w/ PMPA w/ PMPA w/ PMPAGold Price (incl $16/oz Ag & $3/lb Cu) $1,250/oz $1,400/oz $1,500/ozLOM (years) 24 24 24 24 24Gold Production (koz) 4,516 4,516 4,516 4,516 4,516Payable Gold (koz) 4,488 4,488 4,488 4,488 4,488Payable Silver (koz) 4,460 4,460 4,460 4,460 4,460Payable Copper (klb) 124,730 124,730 124,730 124,730 124,730After‐Tax FCF (US$M) $1,389 $1,251 $1,121 $1,511 $1,771After‐Tax IRR 16.56% 20.25% 18.16% 24.20% 27.68%After‐Tax Payback (yr) 3.67 2.92 3.27 2.34 2.02After‐Tax NPV5% (US$M) $519 $495 $428 $628 $760

Capital RequirementsInitial Capital (US$M) $360 $360 $360 $360 $360Capitalized Pre‐Stripping (US$M) $18 $18 $18 $18 $18Wheaton Finance (US$M) $0 ($106) ($106) ($106) ($106)Net Financing Requirement $378 $272 $272 $272 $272Sustaining Capital (US$M) $614 $614 $614 $614 $614

Cost StructureDirect Operating Costs ($514.16) ($514.16) ($514.16) ($514.16) ($514.16)Indirect Costs ($109.55) ($102.02) ($98.43) ($109.20) ($116.38)Total Cash Op Costs ($650.71) ($643.18) ($639.59) ($650.36) ($657.54)Sustaining Capex ($136.75) ($136.75) ($136.75) ($136.75) ($136.75)Corporate G&A + Exploration ($6M/yr) ($32.08) ($32.08) ($32.08) ($32.08) ($32.08)TOTAL AISC ($819.55) ($812.01) ($808.42) ($819.20) ($826.38)

Base Case

$1,300/oz

Sensitivity to Gold Price

$495MAfter‐Tax NPV5%

$272MNet Financing

Requirement with Wheaton Finance

20.25%After‐Tax IRR

At $1,300 Base Case:


TOROPARU 2013 PFS VS 2019 PEAToroparu PEA (based on feasibility level information generated in 2014)

Goal: Utilize new shallow‐gold‐only Satellite Deposit at Sona Hill to identify Project with Lower Initial Capex that provides Project Economics similar to PFS

• PFS: Dual Processing Streams – CIL and Flotation processes (23,000 tpd)• Average Gold Production: 224,000 ozs over 16 year mine life

• PEA: Two Phase Operation• Initial Phase (Years 1 ‐10) CIL only – 11,500 tpd • Second Phase (Years 11 – 24) CIL + Flotation ‐ 23,000 tpd

• Initial Phase: Average Gold Production in first 5 years: 175,000 ozs• Initial Phase: Total Gold Production: 1.476 M ozs

• Second Phase: Average Gold Production 217,000 Ozs• Second Phase: Total Gold Production 3.04 M Ozs

• Gold Production Life of Mine: AISC:• PFS: 3.7 M Ozs Au PFS: $817• PEA: 4.5 M Ozs Au PEA: $812

• PFS Initial Capex: $501M • PEA Initial Capex: $378M

• Estimate Reviewed by Pathfinder Inc. (https://www.pathfinderinc.com/industries/metals‐mining)• Pathfinder estimate within 3% of Sandspring Estimate


• Initial Capex: PFS:$501M vs PEA: $378M• CIL start‐up to produce gold only (1.476 M ounces) over first 10 years of mine life

• Simpler start‐up – average gold production of 175,000 ozs over first 5 years• No need to transport gold‐rich Cu concentrates over Interior Roads from Day 1• Lower energy requirements over first 10 years

• Addition of Flotation in Year 11 increases Au production to 217,000 ozs per year• Internally financed Run‐of‐River Hydro Project to power Operations after start‐up of

flotation results in significantly reduced operating cost• Life of Mine Gold Production increases by 800,000 ozs under PEA

8

TOROPARU PFS VS PEAWhich Project at Higher Gold Prices ‐ Optionality

TSX-V: SSP | OTC: SSPXF

WHEATON PRECIOUS METALS AGREEMENTSignificantly De‐Risks Project Finance Requirements

9

• Precious Metals Purchase Agreement (PMPA) with Wheaton Precious Metals 1

• Key transaction terms:– 10% of LoM gold production at US$400/oz Au– 50% of LoM silver production at US$3.90/oz Ag– US$15.5 M early deposit received– US$138 M project installments for royalty stream– Total contribution toward PFS project capex: US$153.5 M– Estimated contribution toward PEA project capex: US$106 M

• Wheaton Precious Metals early deposit agreement originally signed in 2013

• Agreement expanded in 2015 after 2014 final feasibility work• Substantially reduces project finance requirement by ~30%

1 PMPA currently requires completion of a Feasibility Study by December 31, 2019. After reviewing the feasibility, Wheaton Precious Metals (WPM) has the option to continue or opt out of the PMPA. If WPM elects not to proceed, Sandspring can choose to return US$11.5 million to WPM and terminate the GSPA, or can reduce the gold stream from 10% to 0.909% and the silver stream from 50% to nil.


Significant Potential Savings• Self‐generation operating cost including financing ~US$59.40/mWh (fuel oil ~US$151.28/mWh)

• Years 10‐24 cost ~US$91.40/mWh based on blend of 79% hydro‐21% thermal power generation

• 50km SW of Toroparu and 110km SW of Aurora (GUY)

• Capex ~US$124M for 35MW run‐of‐river project

• Construction to start in Year 7, full capacity in Year 10

10

KURUPUNG RIVER HYDRO PROJECTOperational Savings

GROWING WORLD‐CLASS ASSETOne of the Largest Undeveloped Gold Deposits Owned by an Independent Junior Company

Toroparu’s 10.5 Moz of in‐situ gold (MI&I) resources and average grade ranks it among the world’s top deposits owned by an independent junior company, and second in South America

Source: SNLNote: Includes assets >1Moz Au contained resource (inclusive of reserves) and in feasibility stage or earlier.

“We measure

optionality in ounces, not

acres…”‐Randy

Smallwood, WPM

11

10 Largest Undeveloped Gold Deposits in South America Held by Independent Juniors

Rank Deposit NameSize(Mt)

Grade(g/t)

ContainedOunces

Location Ownership

1 Toroparu 382 0.86 10,503,000 Guyana Sandspring

2 Cangrejos 408 0.65 8,500,000 Ecuador Lumina Gold

3 Titiribi 494 0.50 7,900,000 Colombia GoldMining

4 Volta Grande 196 0.96 6,107,000 Brazil Belo Sun Mining

5 Fenix 492 0.37 5,852,000 Chile Rio2

6 Condor 208 0.58 3,894,000 Ecuador Luminex

7 Loma Larga 25 3.86 3,040,000 Ecuador INV Metals

8 Culebrillas 8 12.00 3,009,000 PeruGalaxy Minerals / Real Aventura

9 Santa Luz 49 1.58 2,477,000 Brazil Leagold

10 Borborema 69 1.10 2,430,000 Brazil Big River Gold

TOROPARU MI&I RESOURCESOne of the Largest Undeveloped Gold Deposits Owned by an Independent Junior Company

12

Tonnes Tonnes(000's) (g/t) (000's oz) (000's) (g/t) (000's oz) (%) Mlbs

Toroparu 227,416 0.90 6,556 227,416 0.84 6,130 0.086 433SE Zone 13,383 0.94 403 13,383 0.35 152 0.036 11Sona Hill 11,772 1.04 394 0 n/a n/a n/a n/aConcession 252,571 0.91 7,353 240,799 0.81 6,282 0.084 444Inferred ResourceToroparu 116,629 0.74 2,776 116,629 0.07 266 0.040 103SE Zone 686 0.83 18 686 0.45 10 0.049 1Sona Hill 11,630 0.95 356 0 n/a n/a n/a n/aConcession 128,945 0.76 3,150 117,315 0.07 276 0.040 104

In‐Pit Mineral Resource Statement within US$1,350/oz Au Resource Pit

AuAu Resources

Ag CuCu & Ag Resources

M&I Resource

SRK ‐ 9/20/2018 In‐Pit Resources at 0.30 Au (g/t) Cut‐off (within US$1,350/oz Au Resource Pit)Upper Puruni Concession Total Resources1, 2

1 All resources in the September 20, 2018 mineral resource statement are in‐pit resources reported within an optimized pit shell above an economic cut‐off grade of 0.30 g/t Au. The optimized pit shell was determined for Measured, Indicated and Inferred resources using an Au price of US$1,350/oz, a Cu price of US$3.00/lb; an average metallurgical recovery of 88.2% for Au, and 81.5% for Cu mill feed sent to the Cu flotation circuit. The optimized pit shell was determined using an average mining cost of US$1.60/t mined, saprolite processing cost of US$2.50/t, CIL processing cost of US$8.50/t, flotation processing cost of US$10.47/t, and G&A cost of US$1.24/t processed. Other costs included US$125/oz Au for Au refining and royalties, and US$1.036/lb for Cu concentrate transportation and smelting with 97% pay for terms. Pit slopes used in the pit optimization were 45°. Copper and Ag resources have not been estimated at Sona Hill. 2 Mineral Resources are reported in accordance with Canadian Securities Administrators (CSA) National Instrument 43‐101 (NI 43‐101) and have been estimated in conformity with generally accepted Canadian Institute of Mining, Metallurgy and Petroleum (CIM) "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.


‐‐

$50

$100

$150

$200

$250

Enterprise Value / U

S$ oz G

old Re

source

Enterprise Value per Ounce of Gold

DEEP VALUE INVESTMENT OPPORTUNITYTrading at < US$5 EV/oz gold resource

Source: Company filings, FactSetNote: EV/oz calculated using attributable EV and attributable M&I resource (inclusive of reserves). Market data as of 22‐Aug‐19.

Median: US$67/oz


LEVERAGE TO GOLD PRICERising gold price delivers

14

After‐TaxUS$1,250/oz

AuUS$1,400/oz

AuUS$1,500/oz

AuNPV5% $428M $628M $760MIRR 18.16% 24.20% 27.68%Payback 3.27 years 2.34 years 2.02 yearsFree Cash Flow $1,121M $1,511M $1,771M

Toroparu delivers $1.8B Free Cash FlowAt $1500 Au Price

15TSX-V: SSP | OTC: SSPXF

LOCATION – GUIANA SHIELDOverview of Gold Deposits

Venezuela In‐situ GoldChoco ~18 MozLas Cristinas ‐ Las Brisas ~26 MozLa Camorra ~1.5 Moz

GuyanaAurora (Guyana Goldfields) ~9 MozToroparu (Sandspring) ~10 MozKAROUNI (Troy) ~1.1 MozOmai (Iamgold–closed) ~4 Moz

Suriname Gros Rosebel (Iamgold) ~14 MozMerian‐Nassau (Newmont) ~4 Moz

French Guiana Yaou ~1 MozCamp Caiman (Iamgold) ~3 Moz

Paleozoic and Recent Sediments

Upper Proterozoic Sediments

Clastic Sediments (Roraima)

Large intrusive zonesGranitoid BatholithesVolcano-sedimentary BeltsArchean formations

Regional ShearzonesPanafrican Mobile Belts

Lower Proterozoic

Late Lower ProterozoicIntrusives and Volcanics

Reconstruction of the West Africa and Guiana Shields


• Puruni Shear Corridor: a regional feature that can be traced more than 100 km into the Venezuelan Gold District

• Venezuela: > 20 bedrock gold mineralization systems, including several multi‐million ounce gold deposits for > 45 Moz in‐situ gold

• Guyana Underexplored: volcano‐sedimentary belt resources include Toroparu (Sandspring), Aurora (Guyana Goldfields) and Karouani (Troy) with > 20 Moz in‐situ gold

• Majors Moving In:

• Barrick JV with Reunion Gold

• Zijin Strategic Investment – Guyana Goldstrike

REGIONAL EXPLORATION POTENTIALWestern Guiana Shield

?

Coastal Plaines/Sediments

Coasta l Pl aines /Sediments

BARTIKA

LINDEN

GEORGETOWN

Mathews Ridge

Port Kaituma

ParikaAurora

MillionMountain

Peter's Mine

TOR

Puruni Landing

RoadCamp

Eagle Mountain

Omai

Itabali

MAIN ACCESS ROAD

PURUNI

PUTA REN G

MAZARUNI RIVER

Kaitum

a

Wynamu

Toroparu

Esse

quib

o

Dem

erar

a

Cuyuni

Mazaruni

Bara

ma

Maz aruni

Rio OrinocoOrinoco

Northwestern GUYANA

VENEZUELA

Bartika

Itabali

Atlantic Ocean

BRASIL

0 50 100 km

Geological Sketch - Western Guiana ShieldLegend

Roraima Basin : Late Paleo-Proterozoic(1.7 - 1.8 Ga) clastic sedimentsPaleo-Proterozoic(2.0 - 2.3 Ga) Volcano-sedimentary BeltsArchean Formations ( > 2.6 Ga)

Multi Moz Gold Deposits < 1 Moz Gold DepositsBedrock Gold Mineralization

Major Structural lineaments

Otomung PLs

GS14: G-102GS14: G-103

Aurora

Hick's Smart

Las ChristinasLas Brisas

Choco

Tassawini

Upper Cuyuni

Gold District

El Callao Gold District

Marwani Gold District

Cuyuni-Mazaruni

Gold District

Northwest

Gold District

TOROPARU

>45M oz in‐situ Au in Venezuela on Guiana Shield

16


CHICHARRÓN PROJECTStrategic Acquisition

Chicharrón Project:

• Located 130 km NE of Medellin (227 km by road) in Segovia & Remedion Municipalities, Antioquia

• 7°04’45” N and 74°40’07” W (Guia Antigua mine). Located ~4.4 km east of town of Segovia.

• Gran Colombia Gold focused on Segovia District; Amended NI 43‐101 Technical Report Prefeasibility Study Update filed on Sedar; authored by SRK Consulting (US) dated April 25, 2019

Why Any Acquisition?

• Potential near‐term production

• Cash Flow

• Geographic diversification

Why Chicharrón?

• Small yet high grade

• Good location

• Helpful neighbors


GUÍA ANTIGUA MINESampling Programs

Gran Colombia Gold (GCG) 2017‐2018 exploration program confirms high‐grade mineralization in Guía Antigua mine

• Guias Gold, operator from 2014‐2016 reported avg. of 466 g/t Ag and 7.44 g/t Au from ~1,000 samples collected while mining

• GCG 2017 check‐assay program reported 151.24 g/t Ag and 15.64 g/t Au grades over 29 check‐assay program

• GCG 2018 results include 140.9 g/t Ag and 5.46 g/t Au grades over 115 sample program

• Sandspring Exploration Program to analyze variability between historical reports and GCG data


CHICHARRÓN EXPLORATION CAMPAIGNQ4 2019 Drill Program

Surface Geology• Recent completion of

surface geologic mapping by GCG

• Outcrops indicate sigmodal flexure in Chicharron Shear

• Sinestral movement along fault creates dilational zone

• Intact quartz veins outcropping in saprolite forms drill target


CHICHARRÓN EXPLORATION CAMPAIGNMineralized Vein Outcrop & Q4 2019 Drill Program

Mineralized Vein Outcrop• 13 channel samples in vein • 2.4 kg average weight• 1.88g/t avg. Au • 5 samples > 2g/t

• 3.24 g/t• 2.24 g/t• 3.5 g/t• 8.2 g/t

Drill Program • 1300 m drill program scheduled for late Q3 – early Q4

• $305,000 budget @$225/m (all‐in)


CORPORATE SNAPSHOTSignificant Insider Support

Share Structure

Common Shares 279.2M

Options 17.4M

Warrants 165.0M

Fully Diluted Shares 461.6M

Total Insider Holdings 38.2%

Top Shareholders: Gran Colombia GoldFrank GiustraBrian Paes‐Braga

21.0%8.5%5.9%

Cash on Hand C$9.1M

52‐week trading range (9/5/19)

C$0.15 ‐ $0.45

John Adams, Chairman+35 years experience; Advancing Toroparu since 1999; Director, Rojo Resources; Chairman/President, Energy Fuels Corporation

Richard Munson, Director & CEO+35 years experience; Advancing Toroparu since 1999

Greg Barnes, Director & Executive Vice PresidentSpecialist in trading, production and commodity investment in developing countries

Suresh Beharry, Independent DirectorCo‐Chairman, Beharry Group (conglomerate operating in Guyana/Caribbean)

David Constable, Ind. Director, Audit Comm Chair+40 years experience; Professional Geologist; Chairman, U308 Corp; former VP Investor Relations, FNX Mining Inc.

David Laing, Independent DirectorCOO, Trek Mining; Formerly with True Gold, Quintana Resources, Endeavour Mining, and mining investment banking

Harry Pokrandt, Independent DirectorCEO, Blockchain Technologies Ltd; experienced director and former investment banking

Gordon Keep, Independent DirectorCEO, Fiore Management & Advisory Corp.(private firm managing broad portfolio of equity investments)

Lombardo Paredes, Independent DirectorCEO, Gran Colombia Gold Corporation

Federico Restrepo‐Solano, Independent DirectorPartner & Corporate Director of Qvartz Capital Partners

21TSX-V: SSP | OTC: SSPXF

CORPORATE SNAPSHOTSignificant Insider Support

Share Structure

Common Shares 279.2M

Options 17.4M

Warrants 165.0M

Fully Diluted Shares 461.6M

Total Insider Holdings 38.2%

Top Shareholders: Gran Colombia GoldFrank GiustraBrian Paes‐Braga

21.0%8.5%5.9%

Cash on Hand C$9.1M

52‐week trading range (9/5/19)

C$0.15 ‐ $0.45

John Adams, Chairman+35 years experience; Advancing Toroparu since 1999; Director, Rojo Resources; Chairman/President, Energy Fuels Corporation

Richard Munson, Director & CEO+35 years experience; Advancing Toroparu since 1999

Greg Barnes, Director & Executive Vice PresidentSpecialist in trading, production and commodity investment in developing countries

Suresh Beharry, Independent DirectorCo‐Chairman, Beharry Group (conglomerate operating in Guyana/Caribbean)

David Constable, Ind. Director, Audit Comm Chair+40 years experience; Professional Geologist; Chairman, U308 Corp; former VP Investor Relations, FNX Mining Inc.

David Laing, Independent DirectorCOO, Trek Mining; Formerly with True Gold, Quintana Resources, Endeavour Mining, and mining investment banking

Harry Pokrandt, Independent DirectorCEO, Blockchain Technologies Ltd; experienced director and former investment banking

Gordon Keep, Independent DirectorCEO, Fiore Management & Advisory Corp.(private firm managing broad portfolio of equity investments)

Lombardo Paredes, Independent DirectorCEO, Gran Colombia Gold Corporation

Federico Restrepo‐Solano, Independent DirectorPartner & Corporate Director of Qvartz Capital Partners

21


CONCLUSIONAdvancing Toroparu and Chicharrón

• 7.4M oz M&I + 3.2M oz Inferred• PEA: 4.5M oz Au production, 24 yr mine life, $1.25B A/T FCF (with Wheaton)

• District‐scale top undeveloped gold projects in South America held by a Junior

World Class Gold Asset in Toroparu

•Management and Board are invested•WPM agreement to reduce Capex • Gran Colombia largest shareholder• Frank Giustra 2nd largest shareholder• Top 10 US‐based mid‐tier & junior precious metals companies by The Northern Miner

Key Support from Financial Partners

• Geopolitical diversification• Fast track to potential production• Former production

Chicharrón Exploration –Drilling to Commence

22

“I believe we are in the third and

final phase of the gold market that started in 2001 and this will be

the most explosive phase

for gold.”Frank Giustra

“I believe that it would be both

risk‐reducing and return‐enhancing to consider adding

gold to one’s portfolio.”Ray Dalio

THANK YOU


Sandspring Resources Ltd. 9137 East Mineral CircleCentennial, CO 80112 USA

IR phone: 720‐854‐[email protected]

APPENDIX


CONCESSION POTENTIALResource Growth from Drill Ready Targets

• Series of “magnetic low” features align with the southern Puruni Shear Corridor boundary

• Magnetic lows interpreted as small plutons of intermediate composition similar to tonalitic‐quartz‐dioritic intrusives at Toroparu

• Overlaying the geochemical results indicate the majority of gold anomalies are associated with these “magnetic low” features

• Large hydrothermal halo extends for 20km x 7km around the Toroparu Deposit

• Geochemical footprint is indicative of poly‐phased hydrothermal alteration, suggesting that more mineralization systems exist

• Cluster of ten gold anomalies within 20km of Toroparu represent advanced‐stage exploration targets

AirborneMagnetics

High

Low

0 5 10 15km

6800

0069

0000

7000

0071

0000

7200

0073

0000

7400

00

680000690000

700000710000

720000730000

740000

790000 800000 810000 820000 830000 840000 850000 860000 870000

790000 800000 810000 820000 830000 840000 850000 860000 870000

UTM PSAD56 zone 20N

UPPER PURUNIGEOLOGICAL SKETCH 81

0,00

0

820,

000 UTM PSAD Zone 20N

Toroparu Au-Cu-Ag Deposit

Upper PuruniConcession

Interpreted Restraining Bending Zone in Puruni Shear Corridor

WYNAMU

TIMMERMANS

AMEEBARED DRAGON

Otomung

Concession

SONA HILL

5 km

REPROCESSED AIRBORNE MAGNETIC DATA?

069

0000

6950

0070

0000

7050

0071

0000

7150

0072

0000

7250

0073

0000

6690000

695000700000

705000710000

715000720000

725000730000

805000 810000 815000 820000 825000 830000 835000 840000 845000 850000

LEGEND

Granitoid batholithes (G2)

Granodiorites/Tonalites (G1)

Mafic Metavolcanics

Felsic/Interm. MetavolcanicsSediments

Litho-structural lineaments

Fault lineaments

Late Proterozoic mafic intrusions

Regional Geochem Surveyvalues > 50ppb

Hydrothermal Halo

Toroparu Au-Cu-Ag Deposit

Upper PuruniConcession

WYNAMU

TIMMERMANS

AMEEBARED DRAGON

SONA HILL

5 km

UTM PSAD56 Zone 20N

0 5 km

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MINING & METALLURGYThree ore types fed to 2 parallel process circuits

Fresh Au/Cu Ore

Fresh Au Ore (grey)Processing: Whole Ore

Leach

Constrained Resource shell (green)

TOROPARU MAIN

TOROPARU SOUTH EAST

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SONA HILL

Au‐Cu at Main & South EastOnly Au at Sona Hill

MAY 2013 PRE‐FEASIBILITY Toroparu Mine Site Layout

• Compact footprint• Main Pit and Satellite Pit• Central stock pile• Tailings dam 8km away in a natural depression with mountains on three sides

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OPERATING COSTSToroparu

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LoM Operating Costs Expenses US$/t US$/tArea US$000s Mined MillMine $1,037,567 $1.59 $6.64Processing* $1,464,680 n/a $9.37G&A $276,221 n/a $1.77Total Operating $2,777,048 n/a $17.77

AISC $812/oz Au


METALLURGICAL RECOVERY DETAILSMay 2013 Pre‐Feasibility Study

1. Metallurgical Recoveries as outlined in Pre‐Feasibility Study prepared by SRK Consulting (U.S.) Inc. with an effective date of May 8, 2013, entitled “NI 43‐101 Technical Report Pre‐Feasibility Study, Toroparu Gold Project, Upper Puruni River Area, Guyana”. See Cautionary Notes.

Metal Recoveries Pre‐Prod Year 1‐5 Year 1‐10 Life of Mine

Saprolite Au Ore Leach (Doré)Gold Recovery 98% 98% 88% 96%

Fresh Au/Cu Ore (Concentrate + Doré)Gold Recovery 88% 88% 88%Copper Recovery 91% 91% 91%

Fresh Au Ore Cyanide Leach (Doré)

Gold Recovery 95% 95%

Doré vs. Concentrate Production Gold in Doré 100% 65% 73% 78%Gold in Concentrate 35% 27% 22%

Concentrate

Annual Concentrate Production 42k dmt 30k dmt 26k dmtCopper Grade 21% 21% 21%Gold Grade 60 g/t 63 g/t 62 g/t

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