Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M...
Transcript of Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M...
Producing and Exploring in Sudbury,Canada’s Premier Mining District
Platinum, Palladium, Copper, Nickel and Gold
October 2014
CAUTIONARY STATEMENT
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No regulatory authority has approved or disapproved the information contained in this presentation.
This presentation includes certain statements that may be deemed “forward-looking statements”. All
statements in this presentation, other than statements of historical fact, that address future production,
reserve potential, exploration drilling, exploitation activities and events or developments that the Company
expects, are forward-looking statements. Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, statements are not guarantees of future
performance and actual results or developments may differ materially from the forward-looking statements.
Factors that could cause actual results to differ materially from those in the forward-looking statements
include market prices, exploitation and exploration successes, continued availability of capital and financing,
general economic, market or business conditions. Investors should be cautious that any such statements are
not guarantees of future performance and that actual results or developments may differ materially from
those projected in the forward-looking statements.
The Company does not undertake to update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, save and except as may be required by applicable securities
laws.
THE WALLBRIDGE OPPORTUNITY
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• Broken Hammer Open Pit Mining Project in Sudbury, Ontario– Production Commenced April 2014, 12 month mine life– 800 tonnes of ore per day– Smelter Revenue expected starting August 2014– Over $5 million pre-tax profit expected to July 2015
• Active Partner Funded Exploration in Sudbury, Ontario– $5.4M+ partner funded exploration in 2014– $5.5M partner funded exploration in 2015
• Record of Low-Dilution Exploration, Discovery & Development– 2014 Broken Hammer production as “alternative financing”– 2013 Wisner Amendment, $6.0M over 3 years including cash option payments
funded by Lonmin– 2012 North Range JV, up to $8.8M funding over 3 yrs. funded by Lonmin– 2011 Broken Hammer Bulk Sample generates net cash flow of US$2.9M– 2010 Miocene Metals Spin Out TSXV:MII– 2008 Parkin Offset JV, $7.3M exploration funded by Implats– 2005 Duluth Metals Spin Out TSX:DM– 2002 Sudbury Camp JV, min. USD $1.0M annual funding by Lonmin
• Polymetallic Exposure in North America– Copper, platinum, palladium and gold deposits– Copper, platinum, palladium, gold and nickel deposits– Copper and gold properties– Molybdenum properties
• Underlying Value and Growth Potential of Spin Out Equity Investments– Wallbridge owns 10.1 million shares (7.4%) Duluth Metals Limited (DM:TSX) – Wallbridge owns 28.4 million shares (40.5%) Miocene Metals Limited (MII:TSXV)
• Socially Responsible with Operations and Assets in Secure Jurisdictions
Broken Hammer Open Pit
Mine, Sudbury, Ontario,
Canada
CORE ASSETS
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• Producing at Broken Hammer
• $5.4M Partner Funded
Exploration in 2014
• $5.5M Partner Funded
Exploration in 2015
• 40 Projects, 11 Joint Ventures
• Platinum, Palladium, Copper,
Nickel and Gold
• TSX:DM
• 10.1M Shares (7.4%)
• Large PFS Stage Project in
Minnesota, USA
• Twin Metals Joint Venture
with Antofagasta Plc
• Copper, Platinum,
Palladium, Nickel and Gold
• TSXV:MII
• 28.4M Shares (40.5%)
• Copper, Gold, Molybdenum
• Exploration Projects
• Merger underway with
Carube Resources Inc.
• Includes Funded Joint
Venture with Oz Minerals
RECENT EXPLORATION & DEVELOPMENT ACTIVITY
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2014/2015 EXPLORATION
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JV Partner Funded 2014/2015 Exploration
– Drilling underway at Wisner
– Airborne EM Geophysics Worthington and Drury, Fall 2014
– Drilling at Windy Lake & North Range, January 2015
– Ground EM Geophysics at Windy Lake & North Range, January 2015
– Drilling at Parkin proposed for winter 2015
Forecast 2014 Drilling: 21,393 metres drilling
Forecast Q1, Q2, & Q3 2015 Drilling: ~22,500 metres drilling
Lonmin JVs follow October 1 to September 30 fiscal year.
2014 2014 2014 2015 2015 2015 2015 2015 2015 2015 2015 2015
October November December January February March April May June July August September
NRJV
SCJV
Wisner
2015
Lonmin JVs
Drilling, BHEM
LIDAR
Fieldwork,
Fieldwork,
Fieldwork,
Fieldwork, stripping
Drilling, BHEM
Drilling, BHEM
Linecut EM
Fieldwork, stripping
Drilling, BHEM
Linecu EM
Fieldwork, stripping
HEM, LIDAR
LIDAR
MANAGEMENT AND DIRECTORS
WARREN HOLMES• Mining executive with +40 yrs. experience in mining
• Director for HudBay Minerals, Atlanta Gold Inc.,
Foraco International
PARVIZ FARSANGI• Mining Executive with +25 yrs. experience
• Director for Miocene Metals, INV Metals,
• CEO of Canadian Royalties
• Previously CEO of Scorpio Mining & COO with Vale
ROLAND HORST • +35 yrs. experience as investment banker
• Previously CEO of C Bay and Director of Victory
Nickel
RENE GALIPEAU• +30 yrs. experience in mining
• CEO of Victory nickel and Director of Nuinsco
Resources, Victory Nickel and KWG Resources
DARRYL SITTLER• Former NHL player and 1989 Hall of Fame inductee
• Director for Miocene Metals, Royal Nickel, Frontline
Gold
ELAINE ELLINGHAM• Professional Geologist with +30 years of experience
• Interim CEO & Director for Richmont Mines Inc.
• Director for Aurania Resources Ltd. and Williams
Creek Gold Limited.
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ALAR SOEVERExecutive Chairman and Director
• Professional Geologist with +30 yrs. experience
• Chairman Miocene Metals, Director for Duluth Metals
MARZ KORDPresident and CEO
• Mining Engineer with +25 yrs. experience in mining
• Previously EVP for Genivar Consultants, Falconbridge
MARY MONTGOMERY, CPA, CACFO
• She held senior positions with a number of companies associated with the mining industry in Sudbury
JOSHUA BAILEYVice President Exploration
• Professional Geologist with +15 yrs. experience
• President of the Sudbury Prospectors and Developers Association
WHY WE LIKE SUDBURY
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• Production since 1886
• 10 active mines
• 2 active mills
• 2 active smelters
• Good mining culture
• Good infrastructure
• Skilled workforce
• Secure regulatory environment
• High value polymetallic Cu-Ni-PGE deposits
• Numerous recent discoveries
Vale’s Copper Cliff Smelter, Clarabelle Mill, North Mine, and South Mine Infrastructure in Sudbury
SUDBURY CAMP METAL ENDOWMENT (Naldrett, 2004): ~1.648 billion tonnes, 1.08% Cu, 1.20% Ni, 1.17 g/t PGEs
44 billion lbs. Ni, 40 billion lbs. Cu, 62 million oz. PGEs
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19+ Million Ounces of PGEs
discovered since ~1990*– Includes over 15 deposits containing a
total of over 120 million tonnes with
average grades of:
~4.8 g/t PGE + Au
~3.6 % Cu
~1.7 % Ni
RECENT DISCOVERIES IN SUDBURY
Examples of Recent
Discoveries in Sudbury with
1M+ Ounces of PGEs*
Resource Ni Cu Pt + Pd Pt + Pd
Mt % % g/t Moz
Capre ? ? ? ? ?
Victoria 14.5 2.5 2.5 7.6 3.5
McCreedy East FW 6.8 0.9 9.9 13.4 2.9
Nickel Rim South 13.0 1.4 3.1 4.3 1.8
Totten Mine 10.1 1.5 1.97 4.8 1.6
Kelly Lake 11.4 1.72 1.41 3.8 1.4
Victor Deep FW 6.16 1.9 6.2 6.7 1.3
*3rd party mineral resources information is from publicly available documents, Wallbridge can not confirm the accuracy of this information.
BROKEN HAMMER OPEN PIT MINE PROJECT
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2014 RESERVE UPDATE
(BASED ON CURRENT MINING)
TONNES 193,152
CU 0.95 %
NI 0.10 %
PT 2.16 gpt
PD 1.96 gpt
AU 0.65 gpt
AG 6.69 gpt
The Qualified Person for the Broken Hammer updated reserve
estimate is Mr. Marz Kord, P. Eng., President & CEO for Wallbridge.
The updated Mineral Reserve estimate is based on updated
economic inputs and does not represent a material difference from
the previous Mineral Reserves estimated by RPA Inc.(see Press
Release dated September 18, 2013).
open
COPPER 11,377$
NICKEL -$
GOLD 4,409$ SILVER 411$
PLATINUM 15,193$ PALLADIUM 7,561$
TOTAL REVENUE 38,952$
FORECASTED REVENUE ('000 CAD)
Mining incl. G&A 10,650$
Crushing & Hauling 8,058$
Processing 11,776$
Royalties 1,277$ Capital Expenditures 1,543$
TOTAL COSTS 33,305$
FORECASTED COSTS ('000 CAD) METAL PRICE RECOVERY
COPPER 3.25$ 86.2%
NICKEL 8.00$ 48.2%
GOLD 1,310$ 84.8%
SILVER 21$ 63.6%
PLATINUM 1,500$ 82.5%
PALLADIUM 850$ 80.3%
CAD/US 1.07:1
TOTAL REVENUE 38,952$
NET CASHFLOW 5,647$
FORECASTED CASHFLOW ('000 CAD)
TOTAL COSTS INCL. CAPITAL &
ROYALTIES 33,305$
BROKEN HAMMER OPEN PIT MINE SUMMARY
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Ore Delivery
To Mill
Construction
Starts
Concentrates
to Smelters
Payments
from Smelters
Expected Completion
April 2015
Broken Hammer Open Pit Mine Site, June 10, 2014
-$1,000
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
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BROKEN HAMMER CUMULATIVE CASHFLOW
WISNER PROPERTIES - LONMIN
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• $2.4M Lonmin funding from January 1, 2014 to September 30, 2014.
• $2.5M Lonmin commitment from October 1, 2014 to September 30, 2015.
• 2014 drilling intersected high grade Cu-PGM’s at Twisted Wrench, Southwest Zone, and Broken Hammer Extension targets, all above 120 metres depth and open below
• Drilling & mechanical stripping underway following up Twisted Wrench zone discovered in 2014
• 10 kms strike length of Cu-PGE occurrences, anomalies, and favourable geology along strike of Wallbridge’s Broken Hammer Open Pit mine and adjacent to known deposits on adjacent Vale and Glencore properties
TWISTED WRENCH TARGET - WISNER PROPERTIES - LONMIN
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Twisted Wrench Zone:• Discovered 2014
• 8.12 g/t Pt+Pd+Au and 0.96% Cu over 2.43 metre channel
• Drill intersections
• Open to the northwest & to depth
• Follow-up mechanical stripping & drilling underway
SOUTHWEST ZONE TARGET - WISNER PROPERTIES - LONMIN
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Southwest Zone Highlights:• High grade Cu-PGE occurrences over
+600 metre long trend above 120
metres depth
• Includes 26.60 g/t Pt+Pd+Au, 2.35 %
Cu over 0.50 metres in WIS-078
• 2014 drilling 7.24 g/t Pt+Pd+Au, 1.55
% Cu over 1.99m in WIS-168
• Trend is open to the west, to the
north, and to depth
• Follow-up drilling planned in 2015
NEAR-PIT BROKEN HAMMER EXTENSIONS -WISNER PROPERTIES - LONMIN
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Near-Pit Broken Hammer
Highlights:• Open Cu-PGE structures extending
west, northwest, northeast and
east from Broken Hammer ore
zone and open to depth
• 2014 drilling traced narrow high
grade structure extending east and
open to depth
• 10.79 g/t Pt+Pd+Au and 5.46 % Cu
over 0.48 metres in a broader
mineralized zone in WIS-136
• Follow-up drilling planned in 2015
WINDY LAKE PROPERTY –SUDBURY CAMP JOINT VENTURE - LONMIN
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• $1.8M Lonmin Funding from October 2013 to September 2014
• $2.0M Lonmin Commitment for October 2014 to September 2015
• Focus: Windy Lake Embayment Contact Style Massive Sulfide Ni-Cu-PGE Targets
• Surface EM Geophysics and Drilling Planned for January 2015
NORTH RANGE PROPERTIES - LONMIN
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• $0.9M Lonmin Funding from October 2013 to September 2014.
• $1.0 Lonmin Commitment for October 2014 to September 2015.
• 13 Early Stage Projects
• 50+ kms favourable structures, 28 short drill holes to date
• Fieldwork Underway
• Geophysics and Drilling Planned for January 2015
2014 Drilling on the Lonmin Joint Ventures
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9.5 kms Parkin Offset Dyke– Past Producing Milnet Mine
– Parkin Resource (open at depth)
– High Grade Milnet 1500 Zone (open in all directions)
– High Grade Brady Showing (open at depth)
2015: drilling at Parkin Resource– Exploration target: 3-5 million tonne resource
expansion potential above 500 metres depth.
– Exploration target is conceptual based on current drill intersections, borehole geophysics, and the nature of the Parkin Resource and similar Offset deposits elsewhere in Sudbury. There has been insufficient work completed to determine whether a deposit of this size exists on the property, further exploration is required.
PARKIN PROPERTY
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WALLBRIDGE 2005 - SPIN-OUT7.4% EQUITY INTEREST- DULUTH METALS
• Owns 60% of Twin Metals Joint Venture in Minnesota with Chilean copper producer
Antofagasta plc. owning 40%
• Large copper-nickel-PGE resource
• Recently completed Pre-Feasibility Study on a 30-year underground mine plan with an
average production rate of 50,000 short tons (st) per day, producing copper and nickel
concentrates
• Over planned 30 years of operation, the PFS Technical Report estimates the mine will
produce approximately 5.8 billion pounds of copper, 1.2 billion pounds of nickel, 1.5
million ounces of platinum, 4.0 million ounces of palladium, 1.0 million ounces of gold,
and 25.2 million ounces of silver.
• Low C1 cu cash cost of $0.31/lb (net of byproduct credits) over the first 10 years of
production and 30 year Copper (C1) cash cost of $0.76/lb (net of byproduct credits).
• Strong 30 year Onsite Operating Margin of $36.54/short ton.
• Pre-tax base case, shows a net present value ("NPV") of CDN $1.5billion @8% discount
factor, CDN $0.9 billion @8% discount factor after tax.
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WALLBRIDGE 2010 SPIN-OUT40.5% EQUITY INTEREST- MIOCENE METALS
Porphyry Cu-Au-Mo projects in SW BC
Rogers Creek and MacKenzie: Cu, Au
Salal: Moly
Early stage exploration has defined large copper-gold systems on Rogers Creek and MacKenzie and confirmed 15km trend of molybdenum occurrences on Salal
MIOCENE-CARUBE RESOURCES RTO
Wallbridge will own 13% of merged company Carube Copper Corp., a TSXV listed company
Six copper-gold exploration licences in Jamaica
Joint Venture in place with OZ Minerals (OZL:ASX) (OZ),
• OZ invested $960 K of equity capital into Carube
• JV terms provide for up to $28.9M of staged joint venture funding on Carube’s Jamaican properties over 5 to 6 years , assuming OZ exercises all of its options.
Exploration underway on Bellas Gate Joint Venture
• Initial 3 holes have all intersected mineralization– 260.0 metres of 0.44% copper (“Cu”) and 0.19 grams gold per tonne (“g
Au/t”) in hole CON14-001, including 107.0 metres of 0.59% Cu and 0.34 g Au/t;
– 112.0 metres of 0.48% Cu and 0.33 g Au/t in hole CON14-002, including 59.0 metres of 0.55% Cu and 0.49gAu/t; and,
– 297.0 metres of 0.40% copper (“Cu”) and 0.24 grams gold per tonne (“g Au/t”) in hole CON14-003, including 55 metres of 0.67% Cu and 0.59 g Au/t or 1.01% CuEq from 86 to 141 metres;
Shareholder approval received for RTO
Financing required for RTO nearing completion
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WALLBRIDGE VALUE PROPOSITION
• Small producer to generate cash flow
• Strong management team with mining and exploration experience
• Good track record of optimizing investor exposure to discovery upside through self-funded exploration, spin-outs, and joint ventures with major companies
• High Potential for further exploration-driven discoveries in an established mining camp
• Exploration budget and drilling increasing as joint venture commitments grow
• Significant upside potential through retained equity interests in quality projects
• Successfully implemented “alternative financing” strategy consisting of JV funding and small scale mining cash flow, minimizing shareholder dilution
Broken Hammer Open Pit Mine Site, June 10, 2014
FOR FURTHER INFORMATION
Linda Zubal, VP, Corporate Communications705-682-9297, ext. [email protected]
SHARE STRUCTURE
Issued & Outstanding 167.2 M
Options 19.1 M
Warrants & Compensation Options 7.5 M
RSU’s & DSU’s 2.5 M
Fully Diluted 196.3 M