Q-Gold Resources Ltd.

TSX Venture Exchange: QGR
Southern Bradshaw Mountains, Crown King, Arizona
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Mineral Creek Resources Inc. (Q-Gold’s AZ Subsidiary) is Project
Originator/ Operator.
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Company Uses Modern Geophysical and Geologic Interpretation
Techniques to Identify Mining Prospects
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Two Recent Geophysical Surveys on its Holdings in the Historic Mining
Province of the Central Arizona Volcanic Belt (“CAVB”) Yielded a Number
of Outstanding New Targets
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Largest Target (Anomaly “A” on Green Mohave 2 BLM Claim) with
Extraordinary Conductivity of at least 1,000 m Deep, Indicating Metallic
Deposit has Drilling Permit in Place from US Forest Service/ BLM
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Volcanogenic Massive Sulfide (VMS) Nature of Mined Ore from Nearby
Mines (Cu with overprint of Au, Ag & Zn) Indicates Possible VMS Ore of
10+ Million Tons in Project Target
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$400K Private Placement Sought to Drill 3 Holes (800 m total) to Evaluate
Deposit in 2016.
2016
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13 BLM claims – approx. 279 acres
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Located in the Southern Bradshaw
Mountains of Yavapai County
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Important part of prolific VMS belt of
precious & base metal mines
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Historic gold & silver camp (late 19th
century) contained 2,000+ gold, silver
& copper mines that produced 5+
MM oz Au/Ag + Cu
•
1890’s silver “depression” & 2 World
Wars stopped all production
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Fractured land position restricted
exploration
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Q-Gold conducting first modern
exploration
2016
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Metals Recovered from Historic Mines
(sources: “Arizona Significant Mineral Database” and
“U.S. Department of the Interior, Geologic Survey Open File Report 87-0406, 1987)
Mine
United Verde
(Jerome)
United Verde
Extension
(Jerome)
Blue Bell (Crown
King)
DeSoto
(Crown King)
2016
Ore
Production
(000’s Tons)
Copper
Produced/ Avg.
Grade (%)
Gold
Produced/
Avg. Grade
Silver
Produced/
Avg. Grade
30,673
2.9 Billion lbs.
4.77%
1.3 MM oz.
0.05 oz./t
49.9 MM
1.65 oz./t
3,879
793 MM lbs.
10.23%
151,000 oz.
0.04 oz./t
6.6 MM oz.
1.17 oz./t
1,000+
55 MM lbs.
3.00%
45,500 oz.
0.05 oz./t
1.2 MM oz.
1.5 oz./t
180
16.5 MM lbs.
3.75%
12,400 oz.
0.02 oz./t
285,000 oz.
1.0 oz./t
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HISTORIC PRODUCING MINES IN THE CAVB GENERALLY CONTAIN:
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Meta-Volcanic Host Rocks of Marine Proterozoic (Origin: 1.2-1.7 Billion Years)
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Tabular, Lenticular or Podiform (Ore Shoots) Shape
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70% Sulfide Minerals of Cu, Au, Ag & Zn
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Zones w/ Cu/ Fe Near Source Vents; Zn-Pb at Edges
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Layers in Submarine Volcanic Successions
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Sharp Contacts Between Sulfide Zones and Country Rocks and Between
Different Sulfide Mineral Zones
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Geologic Units That Dip From 75 deg. to 85 deg.
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Sedimentary Iron Formations Frequently Overlie, or are Laterally
Contiguous w/ Mineralized Zones
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Zones That Tend to Occur in Groups or Layer up to Seven, Separated
Laterally by Less than 50m
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Ore Shoots that can Range from a Lateral Width of up to 200m, Thickness
of 40m and at Depths from 50m to 800m
2016
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BASED ON BOTH FIELD MAPPING, SAMPLING & GEOPHSYICAL SURVEYS,
THE FOLLOWING OBSERVATIONS CAN BE MADE:
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Extremely High Conductive Response was Received from CSAMT Survey
(Ground Geophysics), Indicating that the Deposit has a High Metallic
Content, Perhaps Containing Cu & Ag in High Concentrations
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Deposit Appears to be 2 Parallel “Tabular” Bodies Dipping West
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Surface Gossan of Residual Sulfur at the Top Confirms Sulfide Nature
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Deposit Appears to Be Layered w/ 2 Distinct Zones & Sharp Contacts
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Strong Magnetic Response was Also Encountered, Confirming the
Presence of Iron
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Outcrops of the Deposit, Although Leached of Metals, are Bounded by
Ironstone Formations
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Geophysical Profile of Deposit Exceeds the CAVB Size Criteria as to Width,
Length and Thickness
2016
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In Addition to the 2 Tabular Zones Identified by Geophysics, a Third
Zone of Conductivity may be Present Beginning at 150m. This may be
a Zone of Broken Ore or Perhaps an “Oxide Cap” Containing Silver
Minerals as Found in the Adjoining Peck and Silver Prince Mine
Complexes.
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Suggested Volume of 5.4 MM Cubic Metres for the 3 VMS Indicated
Zones, which Equates to 13.8 MM Tons of Potential VMS-Type Copper
Ore.
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Anomaly “A” Appears to Meet All Geologic Characteristics of the
Successful Historic Producing Mines of the CAVB
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Drill Program Will Initially Test All Three Prospective Zones to Confirm
Their Mineralogy & Establish an Initial View of Their Extent and
Mineability
2016
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277 line km VTEM+/ Mag
helicopter time domain EM
survey (Geotech July 2011)
interpreted by IGS (Denver)
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13 conductive anomalies with
100-700 m strike lengths
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Many coincident magnetic
anomalies
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Large number of deep-seated
faults indicated (wavy lines) by
magnetic discontinuities
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Fault lines coincide w/ existing
mines (mineralization conduits?)
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Anomalies on “open” ground
now staked by Q-Gold
2016
“A” Anomaly
(Green Mohave2)
N
Peck Mine
(“B” Anomaly)
Q-Gold Resources Ltd .
Black Warrior
Mine Complex
(“C” Anomaly)
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Strongest EM conductive response of 13 receptors encountered
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Extensive “Tabular” body (redline) extending to min. 125m (VTEM response limit)
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EM showed zone
characteristic of sulfide
mineralization
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Underlain by large
resistive “alteration
halo”; may indicate
sizable disseminated
sulfide deposit at depth
(yellow/ orange)
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Conical shape could
represent “chimney” at
volcano vent
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Accompanied by strong
magnetic response
2016
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Strong magnetic anomaly dips 75° W; terminates north due to faulting, continuing 1
km+ to south
Possible magnetite (FeFe2O4) component; may
indicate “massive oxide” deposit
•
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Anomaly is formational unit which may or may
not be related to tabular body
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Faults (plumbing?) postulated from mag
discontinuities
“A” Conductive Anomaly - EM (red dots) & Mag (pink)
response & associated faults (wavy lines)
2016
“A” Anomaly – Associated magnetic
intensity (pink – max. TMI response)
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Low resistivity (ohmmeters) = high
conductivity
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Moderate conductivity
encountered over the
upper “weathered”
zone surface to 75 100 m
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High conductivity
zone from 100-600 m
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Moderate conductivity
zone from 600-1,000 m
2016
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2016
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Data was sufficient to identify drilling locations
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Highly conductive body exists from 75-100 m below
surface to +/- 600 m depth (+/- 2,000’)
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Conductivity in diminishing intensity continues to
+1,000 m (+3,000’)
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Based on the structural similarity to the historic
Peck and Black Warrior mines and the high
conductivity of silver, the anomalous zone may
contain precious metals
2016
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Enriched Silver Zones
by Descending
Supergene Fluids
2016
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Anomaly “A” Appears to be Primary Copper/ Zinc VMS Deposit with Overprint of Silver,
Similar to Historic CAVB Mines in the Region.
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Presence of Arsenopyrite and Chalcopyrite in Samples Suggest Possible Presence of
Gold.
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Ground Geophysics Indicate 3 Different Sulfide Zones, 2 of which Reach Surface.
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Primary Zone 600m Deep, 25-50m Thick and 800m Surface Length with Suggested Volume
of 3.7 MM Cubic Meters.
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This Zone Reveals Extremely Low Resistivity (High Conductivity) Suggesting Extremely
High Metal Content.
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Second & Third Sulfide Zones Appear to Contain an Additional Suggested Volume of 1.2
and 0.5 MM Cubic Meters, Respectively.
•
Suggested Total Deposit Volume from the 3 Zones Equals 5.4 MM Cubic Meters Equating
to 13.8 MM Tons of VMS-Type Copper Ore.
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Proposed Drill Program to Evaluate all 3 Zones for Additional Exploration & Delineation.
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Suggested Total Volume of 5.4 MM Cubic Meters from Geophysical Surveys, Extremely
Low Resistivity (High Conductivity) Recorded, & the Near Surface Occurrence of 3
Potential Sulfide Zones, Makes this Prospect Extremely Attractive Drilling Target.
2016
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CDN$ 400,000 Proposed Private Placement Financing
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8 MM Units @ 5 cents each
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Each Unit = 1 Common Share + 1 Warrant to Purchase Additional
Common Share @ 7 cents for 18 months
CAPITAL STRUCTURE
CURRENT
POSTFINANCING
Issued & Outstanding
17,473,119
25,473,119
Fully-Diluted
21,523,119
37,523,119
Q-Gold’s Board of Directors and Management Control Over 50% of Current
Issued & Outstanding Shares
2016
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In Addition to Prospective Tonnage from the Green Mohave 2
Prospect, Company has 12 Additional VTEM Conductive Anomalies
on its CAVB Holdings for Future Investigation/ Drilling.
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Several Abandoned Historic Mines in the Immediate Area have
Additional Reserves that could be Acquired at Reasonable Cost.
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Additional Geophysical Surveys in the Extensive CAVB should
Reveal New Prospective Targets/ Reserves in Prolific VMS Belt.
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Prospects for a Successful Mining and First Stage Ore Processing
Operation (Concentrates) at Crown King are Excellent.
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Surplus Smelting/ Refining Capacity Available in Arizona on a
“Tolling” Basis.
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Worldwide Copper Shortage and Price Recovery are Expected in a
Few Years, Coinciding with Q-Gold’s Planned Mining Operations.
2016
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2016
CROWN KING, ARIZONA:
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13 BLM Mining Claims covering geophysical anomalies,
including the “A” Anomaly
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Large granite stock (potential gold, silver, copper)
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Historic gold-bearing mine dumps available for processing
MINE CENTRE, ONTARIO:
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Foley and Golden Star Gold Mines and McKenzie Gray Gold/ Silver
deposit ready for additional delineation drilling
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10,000+ contiguous acres containing:
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100+ gold-bearing quartz veins, many w/ 100+ m strike length
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3 undeveloped gold mines
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Numerous surface exploratory targets
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This presentation contains “forward-looking information” as defined inapplicable securities laws (referred to herein as
“forward-looking statements”). Forward looking statements include, but are not limited to, statements with respect to the
cost and timing of the development of Q-Gold Resources Ltd.’s projects, including the exercise of any property options;
the success and continuation of exploration activities; estimates of mineral resources; acquisitions of additional mineral
properties; the future price of gold; government regulations and permitting timelines; estimates of reclamation
obligations that may be assumed in connection with the exercise of any property options; requirements for additional
capital; environmental risks; and general business and economic conditions. Often, but not always, forward-looking
statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates” or “believes”, or variations of, or the
negatives of, such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”,
“should”, “might” or “will” be taken, occur or be achieved. Inherent in forward-looking statements are risks, uncertainties
and other factors beyond the Company’s ability to predict or control. These risks, uncertainties and other factors
include, but are not limited to, future gold prices, changes in equity markets, actual results of current exploration,
changes in project parameters, exchange rate fluctuations and other risks involved in the gold exploration and
development industry. Forward-looking statements are based on a number of assumptions which may prove to be
incorrect, including, but not limited to, the availability of financing for the Company’s exploration and development
activities; the timelines for the Company’s exploration and development activities on its properties; the availability of
certain consumables and services; assumptions made in mineral resource estimates, including geological interpretation
grade, recovery rates, and operational costs; and general business and economic conditions. Forward-looking
statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual
results, performance or achievements to be materially different from any of its future results, performance or
achievements expressed or implied by forward-looking statements. All forward-looking statements herein are qualified
by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The
Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a
result of new information or future events or otherwise, except as may be required by law.
2016
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