Professional Documents
Culture Documents
(NGC:TSXV, NGPHF:OTCQX)
This presentation and other information released by the Company uses the terms resources, measured resources, indicated resources and inferred resources. United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the SEC does not recognize them. Under United States 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 time the reserve determination is made. Mineral resources that are not mineral reserves do not have demonstrated economic viability. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Inferred resources are in addition to measured and indicated resources. Further, inferred resources 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 will ever 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 or economically. National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained herein or in other information released by the Company in the past and in the future, have been or will be prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. The requirements of NI 43101 are not the same as those of the SEC.
Located in Canada, close to infrastructure Simple mining & metallurgy BFS and permitting by 2Q 2012
Graphite 101
One of two natural carbon polymers (diamonds) Highest natural strength/stiffness of any material Corrosion and heat resistant Excellent conductor of heat and electricity High lubricity Lightest weight of all reinforcements
Nickel Graphite
(40% flake, 60% amorphous)
All have commercial versions now Future demand not dependent on one technology
(Canaccord Research)
Toyota sees a clear path to commercial introduction of Fuel cells vehicles, along with EVs, are part of the solution
targeting fuel cell markets for non-transportation uses could consume as much graphite as all other uses combined USGS, 2009
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Near surface, low cost oxide deposits being depleted Mines deeper, higher cost, lower quality Modernization and consolidation of industry Increasing labor & environmental standards Emphasis on value added processing Export taxes, VAT and export licenses imposed
- Producers ask for rare earth type protection
Demand growth combined with supply concerns have led to 78% price increase over the past 4 years
(US$/tonne)
Flake Size
Large (-50 +80) Medium (-80 +100) Fine (-100) Amorphous powder
metallurgical testing
the persisting supply problem for large flake crystalline graphite . Technographit, Feb/2009 amorphous graphite and there is a potential mismatch between supply and demand for flake graphite .Roskill Aug/2009
decreased production capacity of Chinese mines Technographit, Mar. 2010 Industrial Minerals Magazine May, 2011
99.95%C
spherical graphite
Sells for $7-8,000 per tonne Provide Li ion battery manufacturers with a stable, secure source
Ontario
from Trans-Canada hwy, close to infrastructure North American steel and automotive markets
%Cg Cut-off
0.986 1.227 1.50 1.75 2.0
Cg(%) by LECO
1.81 1.85 1.99 2.34 2.50
Cg(%) by LECO
1.57 1.62 1.81 2.21 2.37
*Historical information is presented for information purposes only. The Feasibility Study and Reserve estimates were not completed in accordance with NI 43-101 and therefore should not be relied upon. ** Mineral resources are not mineral reserves and do not have demonstrated economic viability. ***The 43-101 Preliminary Assessment includes inferred mineral resources which are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. Furthermore, there is no certainty that the results projected in the Preliminary Assessment will be realized and actual results may vary substantially.
Expansion Potential
Simple Mining
Deposit at surface, no overburden Continuously mineralized throughout Low waste-to-ore ratio Conventional open pit mining
100m
Simple Metallurgy
Bulk sampling, pilot plant testing, and extensive lab work previously completed by Cominco/Kilborn/BD Conventional flotation processing (92-95% recoveries) Confirmed by independent tests in 2007 and 2011 Additional pilot plant testing 4Q 2011
98%C
+50 mesh jumbo flake 97%C +80 mesh large flake 96%C
$2,800
Project Parameters
C$70-80 MM capital cost 2,500 tpd processing rate 19,000 tonnes of graphite produced per year <0.50 waste-to-ore ratio Cash cost of $1,000 per tonne 40 year life-of-mine with expansion potential
The 43-101 Preliminary Assessment includes inferred mineral resources which are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. Furthermore, there is no certainty that the results projected in the Preliminary Assessment will be realized and actual results may vary substantially.
Timeline to Production
Completion of Bankable Feasibility Study 2Q-2012 Approval of Mine Closure Plan Start Construction Commercial Production 2Q-2012 3Q-2012 3Q-2013
*The 43-101 Preliminary Assessment includes inferred mineral resources which are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. Furthermore, there is no certainty that the results projected in the Preliminary Assessment will be realized and actual results may vary substantially.
CEO and Director President Chief Financial Officer Director Director Director Director Director Technical Advisor
Formerly Vice President Finance, Ottawa Hydro Limited President and CEO, Orezone Gold Corporation (ORE:TSX)
Iain Scarr B.Sc (geology), MBA Jay Chmelauskas MBA K. Sethu Raman PhD Don Christie CA George Hawley
Former Commercial Director, Rio Tinto industrial minerals division, VP Corporate Development, Lithium One President/Director, Westerm Lithium Corp. Independent Mining Consultant Former CFO, Continental Gold
Summary
Large, growing industrial market Demand growth from emerging applications Supply concerns with China Highest percentage of large flake production Highest revenue & margin/tonne of concentrate Only mine with 4-5x scalable production Close to infrastructure/markets/transportation Simple mining & metallurgy Bankable feasibility, full permitting 2Q-2012 One year to build mine
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Next Steps
Variability testing 1 month File Mine Closure Plan 1 month Complete bankable feasibility study - 2 months Negotiate financing/offtake with strategic partners Initiate detailed engineering, site preparation,
(subject to FS results)
Major permits in 2Q 2012 Mine Financing (1-3 months) Construction of mine 1 year
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