Magnesium Discovery Magnesium British Columbia, Canada Discovery - - PowerPoint PPT Presentation

Company Overview Magnesium Discovery Outlook Property Details

Magnesium Discovery

British Columbia, Canada July 2009

Company Overview Magnesium Discovery Outlook Property Details

Disclaimer

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward‐ looking statements under applicable securities laws and necessarily involve risks associated with mining exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward‐looking statements. Disclaimer: The nickel values reported above include nickel in both sulphide and non‐sulphide minerals as total nickel. The TSX Venture Exchange has neither approved nor disapproved of the contents of this new release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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Company Overview Magnesium Discovery Outlook Property Details

Capital Structure

Current Price* $ 0.45 52 Week Low‐High $ 0.09 ‐ $ 0.64 Shares Issued (Basic) 40,820,794 Market Capitalization $ 18.8 million Insider Ownership 62% Exchange Listing TSX‐V: WHY

Profile: West High Yield is engaged in the acquisition, exploration and development of mineral resource properties in Canada. The company’s primary objective is to delineate and develop its gold and magnesium project in Rossland, British Columbia

TSX‐V: WHY

*As at 07/09/09

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Company Overview Magnesium Discovery Outlook Property Details

Corporate Highlights

• W.H.Y has built a dominant land position of approximately

2,750 contiguous hectares in the previously fragmented Rossland Mining Camp of B.C.

• W.H.Y’s 2007 drill program resulted in the discovery of a high

grade magnesium resource of 39.8 million tons averaging 23.1% Mg

• 43‐101 report and liberation study demonstrate large size and

efficient extractability of magnesium metal

• Current magnesium resource can be significantly increased with

additional drilling

• Property also contains a high‐grade gold vein system that W.H.Y.

is currently drilling

• Economic viability enhanced by existing roads and ample

infrastructure surrounding the Rossland Camp

Potential to be the only magnesium producer in Canada

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Company Overview Magnesium Discovery Outlook Property Details

Management and Officers

• Frank Marasco Jr. ‐‐‐ Director, President and CEO
• Mr. Marasco is the founder of W.H.Y. He is also the current President and

Director of Big Mountain Development Corp. Ltd., and a founder and director

• f both Wave Form Energy Oil and Gas, and Pacific Cascade Minerals.
• Craig Robson ‐‐‐ V.P. Corporate Development
• Mr. Robson has over 30 years of experience in public company management,

specifically in the realms of regulatory, compliance and risk management.

• Dwayne Vinck ‐‐‐ Chief Financial Officer
• Mr. Vinck, independent financial consultant and Chartered Accountant, has
• ver 20 years of experience. He has been CFO and Director of Unitech Energy

Resources Inc. since May 2007 and Director of Sulfur Recovery Engineering since January 2007.

• Hun Kim ‐‐‐ Geologist, P. Geo., P. Eng.
• Mr. Kim has been a geological professional and independent consultant for

32 years, both domestically and internationally. He is a graduate of Seoul National University holding a Bachelor of Applied Science degree and a Master of Science(1962)

Experienced Management Team

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Company Overview Magnesium Discovery Outlook Property Details

Board of Directors

• Patricia L. Nelson ‐‐‐ Director
• Ms. Nelson is experienced in both the private and public sectors. She is a

former Minister of Energy for the province of Alberta and is currently CEO of the Calgary Health Trust. She has served as Manager of Financial Control at Suncor Inc. as well as Controller at Sabre Petroleum Ltd., Petroterra Natural Resources, and Capital Engineering Ltd.

• Ross O. Drysdale LLB. ‐‐‐ Director
• Mr. Drysdale is a lawyer and counsel to Burnstall Winger LLP in Calgary,
• Alberta. He brings over 30 years experience in the legal profession and has

specialized in corporate and business law with a particular focus on public companies.

• Ian F. T. Kennedy
• Mr. Kennedy brings over 30 years experience in venture capital and

investment banking activities. He was President of Canada Development Corporations’ venture capital fund, President of the VASE fund, and Chairman

• f Helmsdale Financial Corp.

Board Brings Diversity of Experience

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Company Overview Magnesium Discovery Outlook Property Details

Rossland Mining Camp History

• High‐grade gold discovery led to the opening of the

Rossland Gold Camp at the start of the gold rush in 1885

• The camp was originally divided amongst several owners

but was later consolidated by the company now called Teck Resources Ltd.

• Rossland camp has produced a total of 2.7 million
• unces of gold in its lifetime at an average grade of 13.3

grams per ton

• West High Yield’s claims cover two ultramafic bodies on

the south‐west side of the Rossland camp which have been explored for both precious and base metals throughout the last century Established Mining Community

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Source:Allen, Gary M. Geochemical Assessment Report on Rossland Claims. July 31, 2008

Company Overview Magnesium Discovery Outlook Property Details

Property Location & Accessibility

8 km North of Canada‐US border

WHY Property

Teck Smelter 8

3 km

300 km

Rossland

Company Overview Magnesium Discovery Outlook Property Details

Local Infrastructure

• The Rossland mining camp is located 7.5 kilometers

south‐west of Rossland, British Columbia

• W.H.Y. has 62 square kilometers of land comprised of 28

claims that include the Midnight, June, Golden Butterfly, OK and IXL claims

Existing Infrastructure:

‐ Established roads ‐ Electrical power ‐ Water ‐ Natural gas ‐ Nearby smelter (Trail, BC) Existing Infrastructure = Economic Advantage

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Company Overview Magnesium Discovery Outlook Property Details

W.H.Y.’s Rossland Gold Project

• Past production of the Midnight, OK and IXL

claims totals 34,000 ounces of gold at an average grade of 2.96 ounces per ton

• West High Yield’s 2007 drilling campaign

returned significant results that include:

Potential for high‐grade gold resource

Length (feet) Grade Au (oz/t) 6.0 11.2 3.0 40.1 3.0 51.0 6.0 75.0 3.5 40.9 10

Company Overview Magnesium Discovery Outlook Property Details

W.H.Y.’s Magnesium Discovery

WHY discovered consistent high grade magnesium

• West High Yield began drilling high grade magnesium in

the second quarter of 2007

• High grade magnesium mineralization of up to 27.7%

was encountered over significant widths of up to 235 meters

• The magnesium bodies are stacked, close to surface,

and remain open at depth***

• WHY retained SRK consulting to complete a 43‐101

report including a resource calculation

• Resource consists primarily of serpentine/olivine ore

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Company Overview Magnesium Discovery Outlook Property Details

43‐101: Magnesium Resource

43‐101 revealed sizable magnesium resource

Resource Category Tonnage (Mt) Mg Grade (%) Contained Mg (Mt) Cut‐Off (% Mg) Measured 15.7 23.1 3.62 12 Indicated 24.0 23.1 5.54 12 Measured & Indicated 39.8 23.1 9.16 12 The Project resource estimation is based on information from 51 diamond core drill holes totaling 6,340 metres with 3,874 assays Table 1: Record ridge South Mineral Resource Statement

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Company Overview Magnesium Discovery Outlook Property Details

43‐101: Interpretations and Conclusions

43‐101 recommended further drilling of high grade zones

• The deposit remains open in several directions

and further drilling will likely expand the known magnesium mineralization

• There is also potential for the addition of other

magnesium resources with the claims held by West High Yield, specifically in the Ivanhoe Ridge South area

• Further diamond drilling recommended at both

the Record Ridge South and Ivanhoe Ridge South

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Company Overview Magnesium Discovery Outlook Property Details

Magnesium Liberation Study

Liberation studies provided encouraging results

• West High Yield retained Met‐Solve Laboratories to

complete a liberation study in 2008.

• The study provided encouraging results:

– 12 kilograms of drill core were tested in different ways including gravity, flotation, magnetic separation, and acid leaching. – The cores, which averaged 26% magnesium and 0.23% nickel provided an 84.5% extraction using sulphuric acid – Due to encouraging results, an additional 200 kilograms were sent to the lab and 78.6% of the magnesium was extracted using hydrochloric acid – Results point toward an electrolytic processing method

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Company Overview Magnesium Discovery Outlook Property Details

Proposed Budget

Activity Duration Approximate Cost

Phase 1 Resource Expansion and Infill Drilling Program Step‐out and infill drilling, 20 holes totaling 2400m Project management and general overhead Six Months 1,300,000 215,000 Total 1,515,000 Phase 2 Geotechnical Drilling Program Step‐out drilling, 15 holes totaling 1800m One Month 500,000 Total 500,000 Phase 3 Exploration Drilling Program Step‐out drilling, 15 holes totaling 1800m Project management and general overhead Six Months 1,000,000 165,000 Metallurgical Study Grind Test, Bench Scale Closed Cell Test, Mill Flow Sheet Design Six Months 100,000 Economic Evaluation Scoping Level Study Six Months 150,000

Grand Total 18 Months 3,430,000

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Company Overview Magnesium Discovery Outlook Property Details

Drilling Schematic

Resource base comprises small portion of W.H.Y’s land

Source: NI 43‐101 Report on Resources, SRK Consulting

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Company Overview Magnesium Discovery Outlook Property Details

Magnesium: Market Fundamentals

• 2008 Global Demand = USD $1.7 Billion
• Spot Price per Ton = USD $2,665
• Total Global Production by Nation:

» 78% China » 7% USA » 5% Israel » 5% Russia

• US dominated global production until start of

21st century

• US Magnesium Ltd. of Salt Lake City, Utah is

currently the only North American producer of magnesium

Opportunity for Re‐Entry of Canadian Producer

Source: Parker, Phillip M. The 2007 ‐ 2012 World Outlook for Magnesium and Magnesium‐Base Alloy Die‐Castings

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Company Overview Magnesium Discovery Outlook Property Details

Magnesium: Industrial Properties

Magnesium offers superior performance vs. its substitutes

• Advantages

– Magnesium is the lightest of all industrial metals – Excellent strength‐to‐weight ratio – Fully recyclable – Casting process is environmentally friendly

• Limitations

– Difficult to work with (malleability, ductility) – Only moderate resistance to corrosion and heat

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Company Overview Magnesium Discovery Outlook Property Details

Magnesium: Major Applications

Magnesium demand is forecasted to remain stable

• Automotive Industry

– Magnesium increasingly used in cars to reduce vehicle weight – Lighter vehicles lead to better fuel economy – Current economic and environmental trends indicate potentially higher magnesium demand from automakers

• Aerospace & Defense Industry

– Light‐weight magnesium improves performance and functionality of airplanes, vehicles, armor, equipment etc

• Consumer Goods Industry

– Bicycle frames, camcorders, in‐line skates, laptops, cell phones, ski bindings, tennis racquets, TV cabinets etc.

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Company Overview Magnesium Discovery Outlook Property Details

Magnesium Metal Prices

Source: Magnesium.com

US Magnesium Prices

Date

Price per mt Price per lb

Min Max Min Max May 05, 2009

$ 4850 $ 6504 $ 2.20 $ 2.95

Apr 20, 2009

$ 4850 $ 6393 $ 2.20 $ 2.90

Apr 01, 2009

$ 5512 $ 6504 $ 2.50 $ 2.95

Mar 25, 2009

$ 5842 $ 6614 $ 2.65 $ 3.00

Mar 16, 2009

$ 5512 $ 6614 $ 2.50 $ 3.00

Feb 25, 2009

$ 4630 $ 5732 $ 2.10 $ 2.60

Jan 11, 2009

$ 5071 $ 5071 $ 2.30 $ 2.30

Dec 11, 2008

$ 6724 $ 7165 $ 3.05 $ 3.25

Dec 05, 2008

$ 7055 $ 7606 $ 3.20 $ 3.45

Nov 26, 2008

$ 6900 $ 7275 $ 3.13 $ 3.30

Limited price transparency: Mg not traded on open market

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Company Overview Magnesium Discovery Outlook Property Details

West High Yield Going Forward

• Continue 43‐101 recommended drilling program to

increase resource size

– First phase focused on the unconfined portions of the higher grade resource and promising undrilled areas – Second phase will focus on wall core holes to provide data for preliminary pit slope design

• Complete scoping level economic evaluation
• Focus on metallurgical test work for conceptual mill

flow

• Continue exploration of Rossland Camp for additional

high grade gold mineralization

• Work with advisors to maximize shareholder value

Project exudes potential

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Company Overview Magnesium Discovery Outlook Property Details

West High Yield Resources Ltd.

www.whyresources.com

P.O Box 68121 Calgary, Alberta Canada T3G 3N8

• Ph. 403.283‐5555
• Fax. 403.206‐7159

Click for Ultramafic Body Composition Click for Comparable Company Summary

Company Overview Magnesium Discovery Outlook Property Details

Appendix 1

Ultramafic Body Composition

20% Magnesium 25% Magnesium 23% Magnesium

Source: NI 43‐101 Report on Resources, SRK Consulting

Return to Company Information Click for Comparable Company Summary

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Company Overview Magnesium Discovery Outlook Property Details

Appendix 1

Comparable Companies

Company Symbol Price Market Cap Resource Tonnage Mg Grade Molycor Gold

TSX‐V: MOR $0.10 $6.96 Million 236 Million 10%

Gossan Resources

TSX‐V: GSS 11.5 $3.34 Million 43.4 Million 21.6%

Leader Mining

TSX‐V: LMN (Pink Sheets) 0.0001 ‐ 25.5 Million 24%

West High Yield Resources

TSX‐V: WHY 0.45 $18.8 Million 39.8 Million 23.1%

Return to Company Information Click for Ultramafic Body Composition

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