Phase Cautionary Statement The following presentation may include - - PowerPoint PPT Presentation
Phase Cautionary Statement The following presentation may include - - PowerPoint PPT Presentation
Phase Cautionary Statement The following presentation may include certain forward-looking statements within the meaning of the United States Private Litigation Reform Act of 1995 and applicable Canadian Securities Laws. All statements
2 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
Cautionary Statement
The following presentation may include certain “forward-looking statements” within the meaning of the United States Private Litigation Reform Act of 1995 and applicable Canadian Securities Laws. All statements other than statements of historical fact, included in the presentation, including without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Search Minerals, are forward-looking statements. Words such as “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “intend”, “believe” and other similar expressions are forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather reflect our current views with respect to future events and are subject to risks, uncertainties, assumption and other factors, and actual results and future events could differ materially from those anticipated in such statements. There can be no assurance that such forward-looking statements will prove to be accurate. We base our forward- looking statements on information currently available to us and we do not assume any obligation to update them, except as required by law. An additional Cautionary Note to Investors: In the event that we use certain terms in this presentation such as “resource”, “measured resource”, “indicated resource” and “inferred resource,” US investors are cautioned that, while such terms are recognized and required by Canadian Securities Laws, the United States Securities and Exchange Commission does not recognize
- them. Under U.S. 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 has been made. U.S. investors should not assume that all or any part of measured or indicated resources will ever be converted into reserves. In addition, “inferred resources” have a greater amount of uncertainly as to their existence and as to whether they can be mined legally or
- economically. Accordingly, information concerning descriptions of mineralization in the presentation may not be comparable to
information made public by companies that are subject to the SEC’s Industry Guide 7. All of the scientific and technical information contained herein has been reviewed and/or prepared by either Dr. Randy Miller, P.Geo.
- r Dr. David Dreisinger, both being a “Qualified Person” within the meaning of National Instrument 43-101-Standards of Disclosure
for Minerals Projects. For further details of the Company’s procedures and policies for data verification, the reader is referred to the Company’s news releases and other material information available on the Company’s website at www.searchminerals.ca or on SEDAR at www.sedar.com
3 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
About Search Minerals Inc.
▪ Focused on developing and continued exploration within the emerging Port Hope Simpson Critical Rare Earth Element (CREE) District of SE Labrador. ▪ Primary objective: Extend the Mine life of District to greater than 14 years, with the development of Foxtrot and Deep Fox as the initial projects ▪ In February 2017, pilot plant testing clearly demonstrated the ability to produce a high purity mixed rare earth oxide (REO) concentrate from over three tonnes of Foxtrot material. ▪ October 2017, InCoR Holdings make strategic investment into Search and appoints 2 members to the Board. Search will continue to seek out value-add partners and to delineate prospects that will ensure competitive low-cost production well beyond the 14-year mine life contemplated in the PEA. ▪ Search has strong working relationships with government partners at all levels (including Atlantic Canada Opportunities Agency, InnovateNL, Department of Natural Resources, NunatukaVut Community Council)
4 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
The Opportunity
▪ Control of a 70 km x 8 km Critical Rare Earth Element District ▪ Preliminary Economic Assessment on Foxtrot Deposit ▪ Low Initial Capital Cost $152M ($CDN) (including $33M contingency) ▪ After-Tax Payback Period – 4.4 years ▪ Foxtrot and Deep Fox are Two of Three Significant Discoveries in the District ▪ Deep Fox – Resource expected 2019 ▪ Fox Meadow – Preparing for drill ready ▪ Breakthrough Hydrometallurgical Process (US Patent Pending) ▪ $1.9M ($CDN) pilot plant project successfully completed in February 2017 ▪ Produced a high purity (98.99%) mixed rare earth oxide concentrate for further refining ▪ the resulting dry stackable residue is environmentally friendly ▪ Upward trending spot Nd/Pr oxide prices, at 3 year highs, up 50% YTD ▪ Experienced Management, Board and Technical Teams ▪ Mining Friendly Jurisdiction – Supportive Indigenous and Local Communities
5 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
Exploring for REE in Labrador since 2009
Community of St. Lewis 12 km from the Foxtrot and 2 km from Deep Fox
6 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
REEs: Critical for the 21st Century
Green Energy
- Hybrid and Electric Vehicles
- Wind Energy
- Energy Efficient Lighting
Military and Defense
- Communications
- Aeronautical engineering and Jet Engines
- Guidance, Lasers, Sonar, Optics, and Electronic Counter Measures
Modern Technologies
- Cell Phones and Digital Cameras
- LCD and Plasma Televisions
- MRI machines, X-Ray, and PET Medical imaging
The Toyota Prius is estimated to contain:
1 kg Neodymium Metal
15 kg Lanthanum Metal 0.1 kg Dysprosium Metal Sales exceed 1 million units per annum
Each F35 fighter aircraft requires 417 kg of REEs Each US nuclear submarine requires about 4,000 kg of REEs
7 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
About Rare Earth Elements (REEs)
Source: Adamas Intelligence
Search Minerals is positioned to supply the rare earth elements, Nd, Pr,Dy,Tb for the upwarding trending permanent magnet market “China is likely to
become a net importer of certain rare earths by 2020”
Adamas Intelligence – November 2017 Report
8 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
REEs: Automakers committed to EV Future
▪ Volkswagen US$84 billion: goal of bringing 300 EV models to market by 2030 ▪ Ford investing $4.5 billion over 5 years: on 13 new models for 2023 ▪ GM to phase out ICE vehicles; 20 EV models by 2023 ▪ Volvo: all new cars produced after 2019 will be electric or hybrid ▪ BMW to mass produce EVs by 2020: 12 different models available by 2025 ▪ Mercedes-Benz: electrifying its entire lineup by 2022 ▪ Canada’s Magna and Linamar: investments in EV supply chains
9 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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REEs: EVs Pressure on Material Supply
10 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Market Dynamics
▪ China produces 90% and consumes 60% of the world’s REEs. ▪ Global REE Market – Est. $ 3B-$5B ▪ China has the majority of Rare Earth Oxide refining capacity. ▪ Lynas Corporation (Australia) only significant REE producer outside of China.
11 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Our Assets - District Scale Opportunity
▪ Search controls a 70 km x 8 km CREE District at tidewater
Key Points
Over 20 prospects so far. Three major discoveries
- Foxtrot Deposit
- Deep Fox
- Fox Meadow (2016)
Excellent geological and geophysical control. April 2016 PEA is based on the Foxtrot deposit only.
12 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Foxtrot, Deep Fox and Fox Harbour House
13 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Our Assets – Foxtrot Deposit
- Foxtrot Deposit lies within
the Fox Harbour Volcanic
- belt. Delineated by over 70
drill holes, geological mapping and geophysics
- Accessible location with high
grade zones containing significant quantities of CREEs
14 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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▪ Mine would have a 14-year lifespan consisting of 8 years open pit and 6 years underground producing at 1,000 tpd. ▪ Revenue estimates are dominated by Nd (39%), Dy (29%), Pr (14%) and Tb (8%), all elements that are projected to remain in supply deficit.
Our Assets
Foxtrot NI 43-101 - Preliminary Economic Assessment
CLASSIFICATION Cut-off $NSR TONNAGE (TONNES) Dy (ppm) Dy2O3 (ppm) Nd (ppm) Nd2O3 (ppm) Pr (ppm) Pr6O11 (ppm) LREE % LREO % HREE % HREO % TREE % TRE0 % OPEN PIT INDICATED $165 4,129,000 177 203 1,393 1,625 372 449 0.69 0.83 0.17 0.2 0.86 1.03 *INFERRED $165 228,000 179 206 1,378 1,607 368 445 0.68 0.82 0.17 0.2 0.85 1.02 UNDERGROUND INDICATED $260 3,263,000 209 240 1,602 1,868 429 518 0.78 0.94 0.19 0.23 0.97 1.17 *INFERRED $260 1,730,000 201 231 1,602 1,868 430 520 0.8 0.96 0.19 0.23 0.99 1.19 TOTAL INDICATED 7,392,000 191 219 1,485 1,732 397 480 0.73 0.88 0.18 0.21 0.91 1.09 *TOTAL INFERRED 1,958,000 199 228 1,576 1,838 423 511 0.79 0.94 0.18 0.22 0.97 1.17
RPA, 2016: Search Minerals Inc. Technical report on the Foxtrot Project in Labrador, Newfoundland and Labrador Canada. NI 43-101 Report prepared by Masun, K.M., Weir, I.C. and Goode, J.R. April 1, 2016 (filed on SEDAR May 2, 2016). *Cautionary Note: The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them to enable them to be categorized as mineral reserves and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have a demonstrated economic viability.
15 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
Our Assets Foxtrot Deposit
FOXTROT PEA FINANCIALS ($CDN)
Plant Capacity 1,000 tpd production rate / 4.9 Mt over 14 years Pre-Tax NPV10% and IRR $93 million and 22% After-Tax NPV10% and IRR $48 million and 16.7% Payback Period Pre-tax 3.5 years , After- tax 4.4 years Gross Revenue LOM $1.7 billion Facility Operating Cost $238 per tonne CAPEX
$152 million for startup with a $33M contingency $ 57 million for underground - funded from operations $ 23 million for mine closure - funded from operations
Cautionary Note: The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them to enable them to be categorized as mineral reserves and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have a demonstrated economic viability.
16 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
Our Assets - Deep Fox Discovery
Drill Program Phase 1 and Phase 2 completed ➢ Phase 1(Dec 2017/Summer 2018): 15 drill holes (2500m) ➢ 10 holes to 50m intervals, 5 holes to 100m intervals ➢ First 8 holes of 15 - assays confirm true width 11m to 32m and grades of Nd, Pr, Dy, Tb over 15% greater than Foxtrot ➢ Phase 2 (Fall 2018): 8 drill holes (2500m) ➢ to 100m, 150m and 200m intervals ➢ Assays pending Excellent location: ➢ 12 km from Foxtrot ➢ 2 km from St. Lewis deep water port and road network
17 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
Our Assets – Deep Fox Assay Results
➢ DEEP FOX has higher grade mineralization and higher true widths than FOXTROT; ➢ Mineralization open below 200m depth ; ➢ Mineralized zone is 350m in strike length, from 11m to 32m wide (true widths): ➢ Phase 1 assay highlights (all true widths):
- FD-18-01 (50m level): 306 ppm Dy, 2264 ppm Nd, 608 ppm Pr, 2542 ppm La over 8.4m;
- FD-18-02 (100m level): 267 ppm Dy, 2067 ppm Nd, 576 ppm Pr, 2522 ppm La over 12.6m;
- FD-18-04: (100m level): 274 ppm Dy, 1961 ppm Nd, 531 ppm Pr, 2128 ppm La over 18.8m;
18 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Deep Fox Discovery – Drill hole mapping
19 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Our Assets - Fox Meadows Discovery
▪ 11 km west of Port Hope Simpson ▪ Similar surface strike lengths as Foxtrot ▪ At least 30m wide and 500 m long ▪ Exists in a treed and till covered area; more difficult to establish width. ▪ Mineralized channel sample assays are
- n par with Foxtrot
A breakthrough in SIMPLICITY, LOW COST AND EFFICIENCY!
21 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Pilot Plant Testing a Great Success
▪ Processed over 3.0 tonnes of material representative of the Foxtrot Deposit. ▪ Clearly demonstrated the ability to produce a high purity mixed Rare Earth Oxide (REO) concentrate.
▪ Average extractions of 85% neodymium (Nd), 86% praseodymium (Pr), 68% dysprosium (Dy), 71% terbium (b) and 86% lanthanum (La) ▪ Successfully demonstrated the ability to bring uranium, thorium, zinc, and iron levels below levels expected by regulatory agencies and refineries.
22 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
The Direct Extraction Process
▪ Material is crushed and treated with relatively small amounts of sulphuric acid at 180C (low temperature) to render the REEs water soluble. ▪ After water leaching, the rare earth solution is purified by neutralizing the remaining acid. The REEs are then precipitated into a concentrate using sodium carbonate. ▪ The rare earth carbonate is re-dissolved in sulphuric acid to reject remaining impurities and then REEs are precipitated again. ▪ The rare earth precipitate is calcined (heated) to produce a high grade mixed rare earth oxide.
Slurry of mixed rare earth carbonate for sulphuric acid re-leaching Acid/material mixture for feeding to heater
23 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
The Direct Extraction Process
Cost and Competitive Advantages
Water Leach Circuits REPS Solids before/after calcination
24 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V
Foxtrot Material at Different Processing Stages
Vial #1 - Finely crushed material at start of metallurgical process Vial #2 - Orangey stained “dry stackable” residue containing an iron precipitate Vial #3 - 35% mixed rare earth carbonate precipitate after uranium ion exchange Vial #4 - 60% zinc sulfide precipitate after removal of thorium, iron, aluminum and silica Vial #5 - High purity rare earth oxalate Vial #6 - Reddish final rare earth oxide made by heating the high purity oxalate
25 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Next Steps - Processing
Pilot plant optimization ➢ Enhanced process integration ➢ Equipment testing ➢ Streamlined impurity removal Demonstration plant ➢ Design and build at ~1/100th of full scale (10 tonnes of ore per day) ➢ Produce up to 9 t of 99% high purity mixed REO concentrate Separation and magnet manufacture ➢ Working with a number of separation companies to produce individual high purity rare earth products ➢ High purity rare earth products can be used to test magnet fabrication
26 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Business Strategy
Through Joint Ventures and Strategic Partnerships, Search will bring additional expertise to maximize production, sales cycles and return to shareholders.
▪ Search Minerals – will continue to develop the District and manage processing facility and mine operations when construction decision is made. ▪ Strategic Partner / Joint Venture Partner – Funding the Bankable Feasibility Study needed to support a decision to build a Mine and Processing Facility. ▪ Off-Take Partner – Supports financing by providing a purchase agreement for the individual Rare Earth Oxides .
Search Minerals Strategic JV Partner Off-take Partner
27 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Business Strategy – Timeline to Production 2018
RESOURCE ✓ Completed 5000m in Phase 1 and Phase 2 drill program ENVIRONMENTAL/PERMITTING ✓ Commence Environmental Assessment reports for Province and CEAA PROCESSING AND REFINING ➢ Continue pilot plant work with assisted government program ➢ Secure funding for demonstration plant build and
- peration in St. Lewis
STRATEGIC PARTNERS ✓ Secure funding for Corporate
- verheads/environmental work
2019
RESOURCE ➢ Resource for Deep Fox ➢ Update PEA for the District ➢ Deep Fox - Phase 3 drill program ENVIRONMENTAL/PERMITTING ➢ Complete Environmental Impact Statement PROCESSING AND REFINING ➢ Continue pilot plant work with assisted government program ➢ Build/operate demonstration plant in St. Lewis STRATEGIC PARTNERS ➢ Secure funding for bankable feasibility studies
2020 2021
RESOURCE Bankable feasibility Study ➢ Infill drilling – Foxtrot ➢ Infill drilling – Deep Fox ➢ Permitting ENVIRONMENTAL/PERMITTING ➢ Continued stakeholder engagement ➢ Initiate Permitting process PROCESSING AND REFINING ➢ Demonstration plant operating in St. Lewis ➢ Engineering plans STRATEGIC PARTNERS ➢ Continued funding for bankable feasibility studies RESOURCE ➢ Measured Resources for Foxtrot and Deep Fox ➢ Development permits approved ENVIRONMENTAL/PERMITTING ➢ Continued stakeholder engagement ➢ Permits to build PROCESSING AND REFINING ➢ Engineering complete – Ready to build STRATEGIC PARTNERS ➢ Secure funding – Decision to build
Cautionary Note: The Company has not prepared a feasibility study in relaton to this project and therefore, the time line to production decision is subject to increased risk and uncertainty
28 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Corporate Summary
As at September 15, 2018 Listing TSX-V: SMY Head Office Vancouver, British Columbia Shares Outstanding 179,590,678 Warrants 26,637,809 Options 12,600,000 Fully Diluted 218,828,487 52 wk - Share Price Range $0.03 - $0.09 Market Capitalization $ 9,877,487 Bank Royal Bank of Canada Auditors Mao & Ying LLP Chartered Professional Accountants
29 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Management
Greg Andrews, President, and Chief Executive Officer, Director
- B. Commerce, Finance - University of Calgary. Extensive experience in strategic planning,
budgeting, implementation and administration.
- Dr. Randy Miller, Vice President Exploration
Ph.D. Geology - University of Toronto. REE Specialist; 5 years work on the IOC Strange Lake Property in Labrador and 12 years as REE specialist with NL Geological Survey Dr. Miller has been in charge of the REE exploration program in Labrador since 2009.
- Dr. David Dreisinger, Vice President Metallurgy, Director
Professor and Industrial Research Chair in Hydrometallurgy – University of British Columbia; Over 300 journal and conference publications and 21 issued US patents; internationally respected process consultant with global metallurgy companies; a Director of PolyMet Mining Corp., LeadFX Inc. and Euro Manganese and an officer of Camrova Resources. Matthew Anderson, Chief Financial Officer
- B. Commerce - McGill University; obtained his CA designation in 2008; current CFO of i-
Minerals Inc.
30 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
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Directors
Greg Andrews, Director, President and CEO – See Management
- Dr. David Dreisinger, Director, V.P. Metallurgy - See Management
George Molyviatis, Director
- Mr. Molyviatis is a Greek/Swiss National and entrepreneur with an extensive financial
- background. He is founder of InCoR Holdings and has been involved in the mining sector for
- ver 25 years.
Jocelyn Bennett, Director
- Ms. Bennett resides in Geneva, Switzerland.
She has a strong financial background and extensive accounting and corporate experience. She is a senior partner and director of InCoR Holdings Ms. Bennett owns a fiduciary services company in Geneva, Switzerland Leo Power, Director Graduate of the Kellogg-Schulich Joint MBA program at York University, Toronto and Northwestern University, Evanston, Illinois. Masters in Oil and Gas Studies from Memorial University of NL. Exec. Chairman - Barite Mud Services Inc.; CEO and Director- Ptarmigan Energy Inc.; Director - Canada Fluorspar Inc.; Director: Minfocus Exploration Corp. (MFX.V) Board Member - Institute of Corporate Directors, NL Chapter; Board Member - Atlantic Cabinet, Nature Conservancy of Canada; NL Vice-Chair - Atlantic Institute of Market Studies.
31 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018
SMY: TSX-V