The Vanadium Leader€¦ · 2 this document is strictly confidential and is being provided to you...
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The Vanadium Leader Driving North America’s Largest Vanadium Deposits to Production
Transcript of The Vanadium Leader€¦ · 2 this document is strictly confidential and is being provided to you...
The Vanadium Leader Driving North America’s Largest Vanadium Deposits to Production
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THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION BY POWER VANADIUM CORPORATION (THE “COMPANY”) AND MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY
OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. FAILURE TO COMPLY WITH THIS RESTRICITON MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS.
This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries nor should it or any part of it, not the fact of its distribution, form the basis of, or e relied on in connection with, any contract or commitment whatsoever. This presentation has been prepared by, and is the sole responsibility of, the Company. This document, any presentation made in conjunction herewith and any accompanying materials are for information only and are not a prospectus, offering circular or admission document. This presentation does not form a part of, and should not be construed as, an offer, invitation or solicitation to subscribe for or purchase, or dispose of any of the securities of the companies mentioned in this presentation. These materials do not constitute an offer of securities for the sale in Canada, the United States or elsewhere or an invitation or an offer to the public or form of offer or commitment whatsoever. The information contained in this presentation has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information or the opinions contained herein. The Company and its advisors are under no obligation to update or keep current the information contained in this presentation. To the extent allowed by law, none of the Company or its affiliates, advisors or representatives accept any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. Certain statements in this presentation constitute forward-looking statements, including statements regarding the Company’s financial position, business strategy, plans and objectives of management for future operations. These statements, which contain the works “believe”, “expect”, “anticipate”, “intends”, “estimate”, “forecast”, “project”, “will”, “may”, “should”, “could”, and similar expressions, reflect the beliefs and expectations of the management board of directors of the Company and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the achievement of the anticipated levels of profitability, growth, cost and synergy of the Company’s recent acquisitions, the timely development and acceptance of new products, the impact of competitive pricing, the ability to obtain necessary regulatory approvals, and the impact of general business and global economic conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Neither the Company, nor any of its respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. This document has not been approved by any competent regulatory or supervisory authority.
Cautionary Note
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Patrick D. O'Brien, ICD.D – CEO/Chairperson Involved in the resource sector for over thirty years
Instrumental in development of the Raglan, Nickel-PGM belt in Quebec, Canada
Guided the company through acquisition of it’s key Vanadium-Iron-Titanium assets.
Dennis Bordin, PGeo – Professional Mining Engineer - Director Professional mining engineer with 30 years of experience in the industry.
Experience in all aspects of the busness both domestically and internationally, including mineral
exploration, mine feasibility, open-pit/underground operations, smelting and refining.
Was a key team member of various operations for Falconbridge, Noranda and Iron Ore Company of
Canada
Dr. Christian G. Derosier, PGeo – VP Exploration Dr. Derosier has more than 40 years of exploration experience.
Served as a founder, Director and President of a number of Canadian junior exploration firms and is
credited with many major discoveries
Management/Geological/Technical Team
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Gaston Gagnon, P.Eng- Advisory Board Mr. Gagnon, a graduate of Université Laval, is a professional mining engineer with 37 years
of extensive domestic and international experience in the industry; including mineral
exploration, mine feasibility, open-pit/underground operations, smelting and refining.
Mehmet Taner, PGeo - Consulting Geologist/Mineralogist – Vanadium Specialist
More than 25 years of experience in the mining industry
Previous owner of claims covering the Bell River Complex
Spearheaded the International Symposium on Vanadium which was held in 2002 in Montreal
He has published over 30 papers in revered journals and produced over 200 technical reports and presentations.
Professor Maria Skyllas-Kazacos – VRB Inventor Known worldwide as the scientific researcher and pioneer who is credited with the invention of the Vanadium Redox
Battery (now, commonly referred to as “the VRB”).
Has been working on the new “Generation 2” Vanadium Bromide Redox Cell which was
patented by the University of NSW in 2001
Tanvir A. Khandaker – Analyst / Fund Manager Over 10 years of Wall Street adviser experience.
Mr. Khandaker is principal and group manager of KDR Morgan Limited Inc.,
a Wall Street-based buy-side advisory and risk-management firm.
Chief portfolio strategist of KDR Resources' Alpha Fund, a private equity fund that specializes
in investing in small-cap global resource companies that are attractive merger and acquisition targets.
Management/Geological/Technical Team
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High grade Vanadium, Iron and Titanium deposits (hundreds of millions of tonnes)
Extensive infrastructure in place with road and rail access to deep water ports and 161Kv power nearby.
Positive metallurgical results confirm excellent Vanadium, Iron and Titanium recovery and purity. Low levels of impurities such as silica and chromium are also necessary for optimal battery performance. Vanadium Battery’s are expected to represent substantial future demand for Vanadium alone. Based on historic metallurgical studies carried out in the past, silica levels are is said to be only 1/3 to ½ as high as in South African production. The chromium levels are also said to be lower in the Lac Dore and Iron-T mineralization than in South African ores.
Minable grade of three metals gives favourable valuation to Apella when compared to typical smaller scale or lower grade and smaller, stand-alone Vanadium projects in the exploration sector. It also allows adequate comparison to the majority of mines already in production.
Highlights
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Uncommitted Future Production - Most existing vanadium mines have either pledged the lion’s share of their future production for existing vanadium applications, most notably as a metal alloy, or they produce vanadium as a byproduct, which means output depends on their steel production. Hence their ability to meet the major vanadium demand anticipated for battery and energy storage cell manufacturing is very limited compared to that of Apella.
Low Production cost - Both projects are open pittable and do not need the costly underground method of mining like the Rhovan Mine in South Africa, the world’s present production leader. Because of grade, low mining dilution, metallurgical characteristics, infrastructure and low tariffs, Apella’s Lac Dore and Iron-T projects are poised become North America’s largest vanadium supply and one of the lowest, if not the lowest cost primary producer of Vanadium, Iron and Titanium in the world.
Highlights
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New Slide Title Goes Here Apella Resources Project Locations Statement from Government of Quebec “There's an Iron Rush On!” “The price of iron products has soared in the past decade, from $20 a metric ton in the early 2000s to $120 in 2010. Experts forecast that demand for iron products will remain strong for the next five years, making this a good time to develop new iron mines in Québec. The startup of the Lac Bloom mine and the announced reopening of iron mines near Schefferville (DSO) are clear signs of the vitality of Québec’s iron market.”
LAC DORE
IRON-T
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Highlights Infrastructure
Road access: In immediate vicinity
Power: 20-60 km to electric
substation. (161 Kv main power)
Railway: 20-30 km to Rail Head
Port: 300 km to Saguenay Port and 580 km to Quebec Port. Both can currently handle large capacity
freight with multiple docking for vessels, cranes and loading equipment.
Electrical Substation– Chibougamau
CN RAILWAY – Chibougamau Line
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New Slide Title Goes Here Shipping Access
Saguenay Terminal Quebec Terminal
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New Slide Title Goes Here Shipping Access
High Grade V-Fe-Ti Ore Bodies
Iron-T Camp Lac Dore Camp
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New Slide Title Goes Here High Grade V-Fe-Ti Ore Bodies Backscattered-electron microprobe images of vanadium-rich samples:
Variable contacts between homogeneous ilmenite (IM) grains and grains of vanadium-bearing
magnetite (MN) plus trellis-textured ilmenite. (10mm scale bar).
Sharp contact between a homgeneous ilmenite (IM) grain
and a magnetite (MN) grain containing trellis-textured ilmenite
lamellae (10mm scale bar).
Iron-T Mineralization Lac Dore Mineralization
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Large Scale Deposits - with mineralization comparable to the Bushveld Complex in South Africa in size and grade with better geometrics and access to infrastructure.
Positive Metallurgy - over 90% of the samples returned over 79% recovery
(NI 43-101 Compliant).
Cost Advantage - given the value of the Vanadium, Iron and Titanium. The Titanium alone is expected to cover the cost of mining and processing.
Mineralization at Surface - makes Apella Resources’ deposits minable by inexpensive open pit mining techniques.
Vanadium Rich Iron Ore - offers large advantages to steel producers and state owned entities looking to save the extra expense of adding Vanadium artificially to steel production. This new global mandate for Iron, naturally enhanced Vanadium started in China when their government began introducing new legislation in 2010.
Apella Resources Projects are unique – and not comparable to other stand alone Iron or Vanadium projects.
New Slide Title Goes Here Viable Deposits
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New Slide Title Goes Here High Value In All Three Metals
Apella Resources anticipates the Titanium values may cover the cost of mining and processing at the production phase.
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New Slide Title Goes Here Simple Processing
Similar process recommended to that used for 90% of globally produced Vanadium
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New Slide Title Goes Here Shipping Access
The Bushveld Complex is also a layered igneous intrusion, which is the same deposit type as
Apella Resources’ Iron-T and Lac Dore deposits.
The difference is that enormous Bushveld mafic intrusion lies flat, is quite thin (1.5m) and therefore must be mined underground. Essentially, it is horizontal vs. vertical thus not at surface
like Apella Resources’ world class deposits.
At Bushveld it is also necessary to leave 50% of the mineralization in place to support the mines underground structure. This is not necessary in open pit mining such as will be used at the Lac Dore
and Iron-T deposits.
Currently the Bushveld Complex holds the largest
Vanadium rich magnetite complex
in the world.
The “Lac Dore” Project
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New Slide Title Goes Here Apella Lac Dore Deposit Location
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New Slide Title Goes Here Lac Dore Statistics
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Held by the Quebec government as a crown asset for over 40 years and partnered with a US OTCBB wind turbine company from 1997-2004.
The intention was producing Vanadium battery concentrate supply for VRB Batteries. At that time the price of Vanadium was at
an all time low and Wind and Solar energy sectors had not seen the
growth potential and encouraging future outlook it has today.
New Slide Title Goes Here Lac Dore Vanadium Deposit
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A historic Feasibility Study completed
by SNC-Lavalin, established the Lac Dore
as the 2nd largest Vanadium deposit in the
world with a said 102 Million tonnes of
Vanadium rich Iron ore (Non NI 43-101
Compliant).
The focus of SNC-Lavalin’s feasibility was
the 21 claims Apella Resources currently
owns the majority of. This particular
ground was considered more favorable to
that mineralization in surrounding
territory as it was predominantly exposed
at surface, contained within a hillside, and is
believed to contain the more higher grade
mineralization. Specifically, Vanadium,
Iron and Titanium - not just Iron.
New Slide Title Goes Here Lac Dore Vanadium Deposit
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New Slide Title Goes Here
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New Slide Title Goes Here
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New Slide Title Goes Here
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New Slide Title Goes Here Shipping Access Lac Dore Vanadium Deposit
Apella Resources plans to verify and
possibly expand the historic tonnage (102Mt) of the Lac Dore deposit with the next development drill campaign.
Apella Resources claims cover the vast majority of this deposit which is said to contain 0.5% Vanadium, ~35 Iron, and 5-6% Titanium.
Development in the region has begun, and nearby projects anticipate production to be feeding Chinese steel mills by 2014.
*Unless specified and to abide to good reporting practice, Apella Resources’ grades
are actual grades. We do not utilize concentrate grades in our reporting activities as they appear significantly higher in nature.
Major Discoveries of World Class Importance
APA :TSX Venture
Exchange
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New Slide Title Goes Here Shipping Access Lac Dore Vanadium Deposit Acquisition
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New Slide Title Goes Here Lac Dore Vanadium Deposit
Apella Resource's claims now cover an estimated 95% of the original 102 Mt
Lac Dore Vanadium-Iron-Titanium deposit previously owned by the
Province of Quebec as a crown asset for more than 40 years.
With the recent award of 100% ownership of the world-renowned Lac Dore
Vanadium-Iron Titanium deposit, coupled together with its present 100%
ownership in the Iron-T, Lac Dore North and Game Changer projects, Apella has
the potential to control enough mineralization to elevate Apella Resources into
the position of having of what could become the most extensive published
Vanadium assets in the world.
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New Slide Title Goes Here Shipping Access Lac Dore Vanadium Camp Mineralization (1)
2009 Mechanical clearing of overburden (soil & moss) revealed significant mineralization.
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New Slide Title Goes Here Lac Dore Vanadium Camp Mineralization (2)
Massive high grade Zone Vanadium/ Titanium/Iron
Surface stripping
Lac Dore
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New Slide Title Goes Here Lac Dore Vanadium Camp Mineralization (3)
Apella Resources will utilize, positive results from previous work and a third party feasibility study to outline targets for it’s 2011-2012
drill programs
The “Iron-T” Project
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Management/Geological/Technical Team Iron -T Vanadium-Iron-Titanium Project
The 100% owned Iron-T project covers the majority of the Bell River Mafic Complex
that is now known to host mineralogy virtually identical to Lac Dore Complex and
the Bushveld Complex (the largest primary source of Vanadium in the world).
The Iron-T contains rich Vanadium, Iron and Titanium mineralization at or near
surface over at least a 22km km of strike. The original property covered 17 claims to
which 129 additional strategic claims were added.
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Iron -T Vanadium-Titanium-Iron Project
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Iron-T Statistics
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The 250 Million tonnage historic estimate from airborne survey already completed
by Abitibi Geophysics is a target for Bankable Feasibility. Achieving this could
establish the Iron-T as one of the largest Vanadium Deposits in the World.
The first three drill campaigns have yielded 14.38 Million tonnes
NI 43-101 inferred resource calculation with positive metallurgy.
Apella Resources’ fourth program and has now confirmed consistent grades along
the entire 22km strikelngth of the Iron-T project. It also advanced the systematic
development drilling on the Genesis Zone that will contribute to significant
additional tonnage in the future.
Management/Geological/Technical Team Iron –T Project Tonnage Increasing
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Management/Geological/Technical Team Iron -T Project Metallurgy
In June 2011, SGS Canada Inc. prepared an updated NI 43-101 compliant resource technical report. This study covered the exploration work carried out after to the end of the third successful drill program and includes extensive metallurgical work.
The Vanadium recovery is high, averaging over 79% in more than 90% of samples submitted by SGS.
The Iron recovery in the concentrate averaged 56%.
The Titanium recovery averaged 35.5% and ranged
from 35.50% (low grade) to 55.50% (high grade).
Specific gravity testing gave an average of 3.50.
Considering the fact that the Iron-T deposit holds non-negligible portion of TiO2 and Iron Ore, a V2O5 equivalent value was calculated for each intersection, as it is anticipated that all three metals, (Vanadium, Iron and Titanium) will contribute significantly to income streams.
The V2O5Eq value is calculated using the market prices of Magnetite, Titanium dioxide and Vanadium Pentoxide as of May 2011.
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------------------ Current Tonnage: 14.38 Million Tonnes inferred ------------------
$USD Value of Iron-T Mineralization Source: SGS GEOSTAT NI 43-101 on Iron-T dated June , 2011
------------------ Current Tonnage: 14.38 Million Tonnes inferred ------------------
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The last resource estimation was done using the 3D block modeling method of estimation. A block model of 5 m x 5m x 5m was used.
Resources reported in the SGS’s report are compliant with NI 43-101.
With a cutoff of 0.48% V2O5Eq, the resources calculated are mounting.
14,376,000 tonnes of inferred category at 0.42% V2O5 with Fe2O3 averaging 39.04% and TiO2 averaging 6.55% has already been identified.
The V2O5 Eq is equal to 0.77%, compared to our breakeven of .48% V2O5 Eq
Positive Metallurgy is NI 43-101 compliant
Over 90% of the samples returned over 79% recovery of Vanadium
*Unless specified and to abide to good reporting practice, Apella Resources’ grades are actual grades. We do not utilize concentrate grades in our reporting activities as they appear significantly higher in nature.
Iron -T Project Current Resource Estimate
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Iron -T Project – Genesis Zone
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Iron -T Project – Genesis Zone
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Iron -T Project – Genesis Zone
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Iron -T Project – Genesis Zone
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Surface Mineralization at Iron-T Project
The “Game Changer” Project
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The 100% owned Game Changer Project could mirror the already
established merits of Apella’s 100% owned Lac Dore, Lac Dore North and
Iron-T deposits. The mineralization and deposit type appear to match the unique
mineralogy exclusive to Apella’s other V-Fe-Ti projects in North America.
The “Game Changer Project” is an assemblage of mineral claims which
provide two distinct mineralized zones, each presenting excellent potential to
host economic Vanadium-Iron-Titanium deposits. The two zones will be
designated as the West Structure and East Structure
The West Structure covers a 2 km long E-W oriented gabbro sill, which can be
clearly delineated by the most recent airborne magnetic and electromagnetic
survey carried out by the Ontario Geological Survey.
The Eastern Structure covers a NW-SE oriented magnetic anomaly which
also corresponds to a 3 km long gabbro sill which is very similar to the sill of the
Western Structure.
Current assays taken by Apella are consistent with Apella’s other projects.
Further development will commence in 2012.
New Ontario Vanadium-Iron-Titanium Discovery
“Game Changer Project”
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New Slide Title Goes Here Corporate Information
“APA” - TSX-Venture Exchange - Canada
“APAFF” - OTCQX Exchange - USA
“NWN.F” - Frankfurt Exchange - Germany
The Bower Building Suite 1600 – 543 Granville Street Vancouver, BC, Canada V6C 1X8
www.apellaresources.com
Toll Free Phone Number: 1-800-663-8990 Direct Contact: W. Adrian Bakker 604-641-4474
Head Office Phone Number: 604-683-8990 Facsimile: 604-683-8903
Email: [email protected]
