NUEVA SEGOVIA PROPERTY OVERVIEW Cassius Ventures Ltd. September 25, 2012 Eddy Canova, P. Geo. 1
INTRODUCTION Cassius Ventures Ltd., a junior mining company listed on the TSX Venture Exchange (CZ-V), is currently exploring three project areas located in Nicaragua. The project areas comprise 17 concessions over 160,000 hectares and are located in the León, Nueva Segovia and Chontales districts. The three project areas are all easily accessible by asphalted and/or gravel roads. The location of Cassius’s concessions as well as other concessions and mines of interest are shown in Figure 1. Figure 1 – Cassius Ventures Project Areas (Nueva Segovia, León, Chontales) 2
Figure 2 - Concessions and Target Anomaly Areas Table 1 below provides an overview of the concessions and geology by project area as well as adjacent activity of other producers and developers in Nicaragua. Table 1 - Overview of Concessions by Project Area Nueva District Leon Chontales Segovia Concession 9 4 4 Area (ha) 60,814 62,000 38,000 Epithermal Geological Epithermal Epithermal System + Model Quartz veins system Porphyry Golden B2 Gold Reign, B2 Gold Adjacent (Limon Mine) Corazon (La Libertad Properties Condor (La Gold Mine) India) 3
The Company completed a 12 month exploration program from July 2011 – June 2012 consisting of: • Stream sediment, soil, rock chip, and trench channel sampling on concessions not previously sampled as well as concessions worked on historically • Soil geochemistry surveys on prospective areas • Trenching on four historic targets in addition to other targets identified as part of the exploration program • 1,270 metres of drilling over 10 holes focused on targets in the Nueva Segovia project area • The identification in the León project area of several gold anomalies and an extensive trend of gold anomalies over 15km, in addition to a Au-Mo mineralization system within a porphyry Over the past few months, the Company has compiled an extensive amount of information through its exploration efforts. The focus was placed on compiling these results and interpreting the data to re- define the exploration program through geochemistry, geological mapping, and sampling. The program identified four principal areas for finding high grade epithermal gold mineralization in quartz veins and in shear zones: Manto de la Corona, La Lampara, El Escandolo and Cobano. Manto de la Corona – Located in the La Jalapeña concession, trenches, old workings and drill holes (JD- 03) intersected deformed schists penetrated by quartz veins. The quartz veins returned gold values between 1.22 g/t Au and 16.67 g/t Au in a gently dipping gold mineralization trend. The mineralization is observed over distances of 100 m and is open to the northeast augmenting the potential for finding additional gold mineralization. La Lampara - Just 4 km south at the Los Angeles concession is La Lampara, an area with potential for epithermal gold mineralization. Old underground tunnel workings and drill holes (LD-03) have returned gold values ranging between 1.04 g/t Au and 12.97 g/t Au with thicknesses of up to 1.5 m. The gold mineralization has been observed over a distance of 250 m and the mineralized structure is open. El Escandolo – Within the El Zúngano concession is El Escandolo, where gold mineralization has been observed in schists penetrated by quartz veins within old underground workings and small trenches. Channel samples graded between 1.03 g/t Au and 14.30 g/t Au with sample widths of up to 1.2 m. The mineralization appears to extend over a distance of approximately 560 m. Cobano - A second site within El Zúngano called Cobano, 5.0 km west-northwest of El Escandolo, has a quartz vein structure with widths between 3 m and 6 m and is observed over a 50 m to 100 m strike length. Four grab samples collected in the area returned assays between 3.02 g/t Au and 19.59 g/t Au. The vein structure is open along its strike and at depth. Cassius has defined exploration programs to target high grade epithermal vein systems models of 200,000 to 400,000 oz Au. (This is a conceptual exploration model and any quantification of resources will have to follow the 43-101 guidelines). This presentation is focused on providing geological background, work completed to date and recommendations for future work in respect of the Nueva Segovia project area. 4
Nicaragua - Background Nicaragua is a stable country with a government that has favorable mining regulations and with an availability of excellent labour and manpower. The Nicaraguan economy is led by the coffee industry but gold is in second place and quickly catching up. The present government was elected in November 2011 and has a five year term. From meetings with Mr. Daniel Ortega, the Nicaraguan president, Cassius Ventures understands that mining is viewed by the government as a vital economic driver to decrease poverty in the country. Figure 3 – John Thomas, President and CEO of Cassius with President Daniel Ortega The main gold producers in the country are B2 Gold Corp. with the El Limon and La Libertad mines (production slated to be 160,000 ounces in 2012, rising to 200,000 in 2014) and Hemco, a private company, focused on the development of deposits located in the northern part of Nicaragua (expected to produce 60,000 ounces in 2012). There are producers and explorers operating in proximity to the Company’s project areas. The El Limon (B2 Gold) and La India (Condor Resources) mines are located on the west and east side of the León properties and the two combined have produced over 4 million ounces of gold historically. The two properties also have multi-million ounce gold resources. Golden Reign (GRR-V) has an advanced exploration project practically surrounded by the Nueva Segovia concessions, and in the south east, the Chontales concessions are near the La Libertad mine. Despite present production, Nicaragua is considered to be underexplored, and possesses great potential. Accessibility to the country is excellent with several flights daily from the US. 5
Nicaraguan Mining Law was revised in 2006 – some of the key elements of law include: • Concessions rent ranges from $0.75/ha p.a. to maximum $12/ha after 12 years • Royalty to government of 3% NSR • Concession owners exonerated from payment of import duties and sales taxes on all equipment and accessories necessary for exploration and exploitation of mineral resources • 30% corporate tax rate with typical depreciation and loss allowances NUEVA SEGOVIA - PROPERTY DESCRIPTION The Nueva Segovia project area is located 162 km north of Managua and easily accessible by the Pan- American Highway up to Ocotal and then east along highway roads to Jicaro and gravel roads to Murra. The town of Murra is located 2 km west of the concession boundaries. The project area consists of 9 concessions covering 60,000 hectares in a north-south trending group of concessions (Figure 4). Table 2 – List of Concessions at Nueva Segovia Name Area (Ha) Date of approval Issued Years La Union 824 March 13, 2008 25 February 2, 2006 25 El Carmen 1,600 July 20, 2006 25 La Jalapeña 4,862 July 20, 2006 25 Los Angeles 16,051 May 23, 2006 25 Murra 8,674 December 13, 2006 25 Bana 1,300 Mina America 163 January 8, 2007 25 Mina America II 3,576 March 13, 2008 25 El Zúngano April 7, 2010 25 23,814 Total 60,864 The San Albino Arras gold deposit, currently being explored by Golden Reign, lies approximately 3 km to 4 km west of the property limits of the Nueva Segovia properties. The veins are part of an epithermal narrow quartz vein system mineralized with gold trending SW to NE. 6
Figure 4 - Nueva Segovia Concessions GEOLOGY The Nueva Segovia property is located in the northern part of Nicaragua within a belt of Paleozoic metamorphic rocks within structural suture zones such as the Guayape. The units consist of metasedimentary phyllites and schists, grey, foliated pelites and granular units, gritty arenites and wackes. There is a large quantity of graphitic schists penetrated with quartz carbonate veins that occur within these sequences. These quartz veins may be mineralized with gold, pyrite, arsenopyrite, galena and chalcopyrite at times. The metasediments to the north-northwest are intruded by massive granite – quartz-monzonite batholiths forming the Dipilto – Jalapa mountain range of Upper Cretaceous age. The region has had three stages of deformation with an initial stage of deformation with foliation development and quartz vein penetration and initial compression. A second compressional event in the area resulted in recumbent folding and the development of a second series of foliation, fractures, shears and veins. This was followed by extensional deformation, resulting in a third series of structures with vertical to sub-vertical normal faults and displacing the quartz veins created in the first deformation. The gold mineralization is associated with the first event of deformation and quartz vein development. 7
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