Developing a Magnesium Resource in Developing a world class - - PowerPoint PPT Presentation

Developing a world class magnesium resource in Western Canada Developing a Magnesium Resource in Western Canada TSXV - WHY

Disclaimer and Forward Looking Statement

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This presentation includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this presentation, including without limitation statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. The mineral resources estimates contained here in are only estimates and no assurance can be given that any particular level of recovery of minerals will be realized or that an identified resource will ever qualify as a commercially mineable or viable deposit which can be legally and economically

• exploited. In addition, the grade of mineralization ultimately mined may differ from the one indicated by drilling results and the difference

may be material. The estimated resources described herein should not be interpreted as assurances of mine life or of the profitability of future operations. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of magnesium, as well as those factors discussed in the section entitled “Risk Factors” in the Company’s Annual Information Form available on www.SEDAR.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cautionary Note- Not for distribution in United States All figures are in Canadian $ Dollars unless otherwise indicated.

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Company Overview West High Yield (W.H.Y.) Resources Ltd. (TSXV:WHY)

• A TSXV listed intermediate stage exploration company focused on mineral occurrences near

Rossland, British Columbia, Canada. West High Yield is focused on the exploration and development

• f mineral properties in Canada. Link to detailed information video http://vimeo.com/68633263
• Its primary objective to locate and develop economic magnesium, gold and nickel deposits. The

Company’s operations are currently focused on its Record Ridge South Property in South Eastern British Columbia. (near Rossland).

West High Yield has identified two significant opportunities in this area:

• Magnesium from its wholly owned Record Ridge South property and Gold on West High Yield’s

crown granted land at Midnight, O.K. (2.5 km outside Rossland)

• The Company received its Preliminary Economic Assessment (PEA) NI 43-101 Report in June 2013,

Measured and Indicated Mineral Resources of approximately 43 million tonnes averaging 24.6% Mg, using a 21.9% cut-off. Approximately 10.6 million tonnes contained Mg.

• Ownership: 100% ownership of 7,891 contiguous hectares which could support open pit mine and

processing facility.

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Corporate Profile

West High Yield is engaged in the exploration and development of its magnesium property near Rossland, BC.

52 Week Low-High: $0.11 - $0.50 Basic Shares Outstanding: 50,511,759 Fully Diluted: 55,160,325 Market Capitalization: $15,153,500 Insider Ownership: 54.5%* Exchange Listing: TSXV: WHY

* Fully Diluted

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Board of Directors / Management Team

Frank Marasco Jr. - Director, President and CEO

• Mr. Marasco is the founder of West High Yield. Mr. Marasco

is also President and Director of Big Mountain Development

• Corp. Ltd.

Patricia L. Nelson, B.Com - Director

Ms Nelson was Controller for Sabre Petroleum’s, Petroterra Natural Resources and Manager of Financial Control for

• Suncor. She is the Vice Chair and Director of the In Situ Oil

Sands Alliance, Director of Altalink, and Director of Optiom Inc.. Ms Nelson served 15 years as an elected Member of the Legislature of Alberta. She was appointed and served as Minister of Energy, Minister of Economic Development and Tourism, Minister of Government Services and finally was appointed Minister of Finance. She served 12 years as a member of the Treasury Board and the Agenda and Priorities Committee of the Government. An active member in the community, she supports charitable

• rganizations such as the Kidney Foundation, the Cancer

Foundation, Heart and Stroke and Juvenile Diabetes.

Maria Marasco – Director

• Mrs. Marasco is an independent business woman who has

provided services in corporate restructuring finance, acquisitions, and strategic planning. She is also responsible for overseeing management information systems, human resource strategies, and property management systems.

Ross O. Drysdale, LLB - Director

• Mr. Drysdale is a lawyer and an independent businessman in Calgary,
• AB. Mr. Drysdale brings over 40 years experience in the legal

profession and has specialized in corporate, business and securities law with a particular focus on public companies. Mr. Drysdale has and is serving on a number of current and past boards.

Ian F. T. Kennedy, P. Eng / P. Geo - Director

• Mr. Kennedy brings over 45 years of experience in venture capital and

investment banking activities. Mr. Kennedy is a consultant who has served on the board of more than 35 public companies from mining,

• il and gas, to high-tech.

He has also been Chairman of Ryerson Polytechnic, Toronto.

Dwayne Vinck, CA – Director, Chief Financial Officer

• Mr. Vinck is an independent financial consultant and Chartered

Accountant with over 20 years of business experience. I is a Director at Sulfur Recovery Engineering and volunteer director of Kids Help Phone.

Hun Kim, P. Eng / P. Geo - Geologist

• Mr. Kim has been a geological professional and independent

consultant for over 30 years. Mr. Kim has assessed over 200 metallic and non-metallic mines and properties including 104 precious metal deposits and 5 industrial mineral deposits.

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Why Own WHY Resources

Investment Highlights

• West High Yield owns Crown granted lands at Midnight, O.K., and IXL, the site of the

historic Rossland gold camp, 2.5 km outside Rossland, British Columbia.

• West High Yield holds 100% of the mineral rights to the Record Ridge property in

southern British Columbia.

• West High Yield has drilled over 10,000 meters as well as identifying and sampling the

tailings left by nearly 100 years of mining activity.

• Defined magnesium resource still open in all directions and at depth. (1)
• Mapped resource 100% within West High Yield claims.
• Proximity to major infrastructure at nearby Rossland (10 km) and Trail, BC (30 km).

(1) PEA NI 43-101 Technical Report by SRK Consulting, June 2013

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Magnesium - Record Ridge

• On June 4, 2013, West High Yield received a NI 43-101 Preliminary Economic Assessment

Report with Measured and Indicated Mineral Resources of approximately 43 million tonnes averaging 24.6% Mg, using a 21.9% cut-off. Approximately 10.6 million tonnes contained Mg. Metallurgy reported in the PEA indicated a 80% recovery rate for the magnesium.

• West High Yield has applied for a 10,000 ton bulk sampling permit, and intends to proceed

with a rock quarry ground permit, a pre-feasibility and feasibility, and environmental reports for permitting.

• Magnesium is a strategic metal. At present, only a small fraction of North American

magnesium demand can be met from sources in North America.

• Link to information video http://vimeo.com/68633263

Midnight Property: Gold

• West High Yield drilling has disclosed significant intervals of mineralization with gold values as

high as high as 73 grams per ton over 1.5 meters, 4.1 meters at 40.11 grams per ton, 8.1 meters at 12.20 grams per ton. At the same time, the tailings from the many historic mines in the area represent several million tons of already mined material.

• West High Yield is actively exploring options for the recovery and processing of this material.

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Why Own WHY Resources

Property Location – Record Ridge South

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• Record Ridge Property extends over 7.5 square kilometers located 10

kilometers to the southwest of Rossland and 4.5 kms north of the US border.

• Link to information video http://vimeo.com/68633263

WHY Property - Record Ridge South

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Proximity to Rossland (10 km) and Trail, BC (30 km)

Excellent Infrastructure

Electrical power, water and natural gas -

Property is easily accessible for open pit mine and accommodates tailings, waste disposal, and processing plants 4.5 km north of Canada-US Border

Nearest port is Vancouver, BC

Skilled workforce readily accessible Supporting industries in close proximity Nearby rail access with CP Rail (Trail, BC) Electrical Power, water and natural gas Commercial Air Service (Castlegar, BC) Established roads and highways

WHY Property - Record Ridge South

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Drilling of hole 17 of 26 for 2011 drill program at Record Ridge South Property View of Rossland, BC from Record Ridge South Property

USA Border

• The project is an intermediate-advanced stage magnesium exploration project that

was mapped, surveyed and drilled by the Company from 2006 to current date.

• West High Yield drilling has disclosed significant intervals of mineralization with gold values as high

as 73 grams per ton over 1.5 meters, 4.1 meters at 40.11 grams per ton, 8.1 meters at 12.20 grams per ton respectively.

• The tailings from the many historic mines in the area represent several million tons of already

mined material.

• West High Yield is actively exploring options for the recovery and processing of this material.
• Assays (1) of the Record Ridge drill cores indicate ultramafic at an average grade of 24.61% Mg

with a potential for higher grades along the eastern edge of the resource (2)

(1) Assays conducted by Assayer Canada (now SGS Canada Inc.) and checked by ALS Chemex. (2) PEA NI 43-101 Technical Report by SRK Consulting, June 2013.

Exploration, Drilling, Assay and Metallurgical Results

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Geology and History

West High Yield Record Ridge, serpentinized, 6.2km2 ultramafic body was previously mapped by Hoy and Dunne, British Columbia Geological Survey (BCGS) in 1998. 13 The Rossland, BC gold camp was first established in 1885 with a productive gold

• history. It became quickly apparent that any potential gold values would be

dwarfed by the property’s potential to host a world class magnesium deposit. The Record Ridge South Property is an intermediate- advanced stage magnesium exploration project, currently tested by 77 diamond drill- holes.

Corporate Plan Property Development Schedule

Note: The property development schedule is subject to receiving a favorable feasibility study, environmental impact study, economic market study, timely equipment delivery, as well as obtaining suitable additional financing when required

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Property and Mine Production and Development Completiom Cost $ Baseline Environmental Report and Mine Plan

Ariel Survey, Resource Drilling/Estimation, Groundwater Study, Mine Capex, Waste Dump/Tailings, Land Study, Infrastructure Study, Metallurgy Testing, Plant Design and Flow Sheet, Environmental Impact Study, Mine Design, Economic/Market Study

Completion – end of 2017

3 million

Mining Operations 10 thousand bulk ton sample – Magnesium 10 thousand bulk ton sample – Gold

Completion- end of 2016

3 million

Contact Us

West High Yield (W.H.Y.) Resources Ltd 4500 Bankers Hall East 855 - 2nd Street SW Calgary, Alberta T2P 4K7 Office: (403) 283-5555 Fax: (403) 206-7159 Frank Marasco, President and CEO frank@whyresources.com www.whyresources.com Link to information video: http://vimeo.com/68633263 Venture Exchange TSXV:WHY Lawyers: Bennett Jones LLP Bankers: TD Bank Canada Trust Engineers: SRK Consulting Engineers of Lakewood, Colorado Auditors: KPMG LLP 15

About Magnesium (Mg)

• Magnesium is the lightest of the light industrial metals, 34% lighter than aluminum,

70% lighter than steel.

• Current or long standard uses of magnesium include a multitude of alloys with

aluminum, manganese, lithium, zinc, iron and steel, but it is most commonly alloyed with aluminum to produce a lighter and stronger alloy referred to as magnesium- aluminum.

• There are many new uses for magnesium including magnesium batteries as a lithium

alternate, liquid batteries coupled with solar energy storage techniques, automotive applications including car bodies, engines and parts, electronic devices and in the aviation industry.

• Third most commonly used engineering metal after steel and aluminum. High strength

to weight ratio and lightweight (one-third less than the weight of aluminum).

• Magnesium is abundant in the earth’s crust, but deposits with high grades are rare.

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35.2% 30.2% 25.9% 7.4% 1.3%

Geographical Breakdown

Asia Americas Europe Africa / Middle East Oceana

1,500 1,550 1,600 1,650 1,700 1,750 1,800 1,850

World Market

Source: USGS

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Source: USGS

$US Millions

Global Demand for Magnesium (Mg)

Global Supply of Magnesium

China is the largest producer of magnesium in the world.

• China’s dominance in magnesium could be affected by changes in trade

relations, currency exchange rates, internal environment standards and increases in energy/labour costs opening more doors for North American production.

Source: USGS

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000’s of Tons 2006 2007 2008 2009 2010

Brazil 6 18 15 16 16 Canada 50 16 China 490 627 559 501 654 Israel 28 25 35 29 30 Kazakhstan 20 21 21 21 20 Russia 50 37 37 37 40 USA 43 43 50 45 45

Magnesium Cement

• Requires only 20-40% of the energy compared to Portland cement.
• Environmentally friendly, non-toxic cement.
• Exceptional health promoting properties for occupants of homes built with this

material.

• Binds naturally and exceptionally well to all thing cellulose – “Living cements.”
• Portland cement in comparison repels cellulose.
• Achieves compressive strengths of 9,000 to 45,000

psi and tension strength over 800 psi.

• Many times stronger than conventional concrete.
• Never rots as it expels moisture.
• Fun Fact: Used in the Great Wall of China

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Magnesium Oxide (MgO) Board

• Magnesium Oxide Board (MgO Board) is a factory-made, non insulating

sheathing board product.

• Applications for construction include wall and ceiling linings, fascias, soffits,

tile backings and underlayments.

• Replacement for O.S.B., plywood, cement board and drywall.
• Low tech and energy-friendly product. Reduces deforestation.
• Various thickness, sheet sizes and grades.
• 70% of world’s MgO Board market is in Asia including most production.

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MgO Board Comparison

Source: www.mgoboards.co.za

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MgO Board Gypsum Board Cement Board Plywood O.S.B. Flame Spread 15 High High Smoke Developed None Low None High High Water Resistant Yes No No No No Mold/Mildew Resistant Yes No Yes No No Termite Resistant Yes Yes Yes No No Thermal / R Value per inch 1.2 0.9 0.8 1.2 1.0 Impact Strength High Low Low Medium Medium Weight LSB / Sq Ft 2.2 2.4 3.1 1.6 2.0 Combustibility None Facing Burns None Burns Burns Structural Yes No No Yes Yes Environmental High Poor Medium Medium Poor Freeze/Thaw Good Poor Good Good Good Finish Interior Tape / Paint Tape / Paint Provide Cladding Provide Cladding Provide Cladding Exterior Stucco / Cladding Interior Only Apply Paper / Stucco Apply Paper / Stucco Apply Paper / Stucco

Applications of Magnesium Alloys

Automotive Industry

• Over 100 different components including engine blocks, gear boxes, console

brakes, valve covers and wheels.

• Magnesium is being increasingly used in cars to reduce vehicle weight

leading to better fuel economy. Strategic Metal for Aerospace and Defense Industry

• Lightweight properties of magnesium

improve performance of aircrafts, vehicles, armor and military equipment. Consumer Goods Industry

• Power Tools and Sporting goods such as bicycle frames,

ski bindings and tennis rackets.

• Electronics such as mobile phones, laptops

and flat screen TVs.

71% 11% 10% 4% 2% 1% 1%

Power Tools Sporting Goods Others (including Aerospace) Computer and Electronics Industrial Machinery Automotive Engine Equipment

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Source: Magnesium Casting Industry Technology Roadmap, September 2005

NSERC Magnesium Network (MagNet)

MagNet is a research initiative with 18 academic researchers from five Canadian Universities (UBC, Waterloo, McMaster, McGill and Ecole Polytechnique) and industrial partners including GM Canada to research the use of magnesium alloys in the automobile industry. Research Objectives and Outcomes

• Develop the required combination of magnesium alloys necessary for transportation applications.
• Generate new fabrication and production routes and produce prototype magnesium components
• Greatly expand the knowledge base available on using magnesium alloys resulting in establishing Canada as a world leader in

magnesium technology and research

• the industry can apply the technology to reduce vehicle weight with the resulting benefit of vehicles with lower greenhouse gas

emissions and higher fuel efficiency. Full details: http://www.nsercpartnerships.ca/How-Comment/Networks-Reseaux/MagNET-MagNET-eng.asp

• The North American automotive industry has set the objective to reduce vehicle weight by substituting

magnesium in components currently fabricated from steel or aluminum; specifically, by increasing magnesium usage from the current level of 5 kg to 160 kg per vehicle by the year 2020.

• Magnesium alloy, at 1.8g/cm³, is the lightest structural material available. Increasingly it is being used to

achieve weight reduction goals and also increased crash worthiness targets of new vehicles.

• Higher forecasted sales of European automobiles, all requiring inputs like magnesium, titanium, chrome and

cadmium, could help grow the market for magnesium in 2014, according to recent media reports.”

http://magnesiuminvestingnews.com/1114-european-car-market-could-drive-magnesium-growth.html More information on magnesium: WHITE PAPER FisherCast Global Corp. Remarkable magnesium: The 21st century structural alloy for small components http://www.fishercast.com/downloads/FisherCast_Magnesium_White_Paper.pdf

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