Srk investor presentation graphite feb 2012

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Transcript of Srk investor presentation graphite feb 2012

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Corporate Overview

Stock Symbol: SRK Stock Exchange: TSX Venture ------------------------------------------------------------------ Date of Formation: January 8, 2008 Head Office Address : Suite 311, 409 Granville St Vancouver, B.C. V6C 1T2 ------------------------------------------------------------------ Regulator: British Columbia Jurisdictions: British Columbia, Alberta Classification: Other Transfer Agent: Computershare ------------------------------------------------------------------- Financial Year-End: June 30 Corporate Auditor: BDO Dunwoody LLP

Issued & Outstanding 30 Million Market Capitalization $7.5Million ---------------------------------------------------

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• Growing demand and increasing prices • Technology and green applications (ex. 8 to 15 times more graphite in than Li

within Li Ion batteries)1

• Fuel cells, nuclear power • 5% annual growth rate this decade2

• Supply concerns • China accounts for 73% of global production in 20103

• The abundance of graphite in the world market inhibits increased recycling efforts

• Critical Metal Status • 2010 European Union report deemed graphite a critical metal due to high

economic importance

Graphite – A Critical Mineral

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Graphite – A Critical Mineral

4 - Jonathan Lee, Byron Capital Markets, “The Growth of the Lithium-ion Battery Market”, December 2011.

2010

20

11

2012

20

13

2014

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15

2016

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2018

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2020

2,500,000

2,000,000

1,500,000

1,000,000

500,000

-

Surplus/Deficit

Total Graphite Demand

Total New Graphite Demand

(500,000)

(1,000,000)

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• One of two natural carbon polymers (diamonds) • Highest natural strength/stiffness of any material • Corrosion and heat resistant • Excellent conductor of heat and electricity • High lubricity • Lightest weight of all reinforcements • Driven by Asian steel and auto markets • Major end uses:

• Steel & refractories (41%) • Carbon brushes and batteries (21%) • Automotive parts (14%) • Lubricants (14%) • Other (10%)

Graphite Highlights

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• Graphite is the best anode material - no foreseeable substitute

• 8 to 15 times more graphite in than Li within Li Ion batteries)1

• Current Li ion battery demand 30,000 tpy and growing strongly, mainly portable devices5

• Li ion batteries in cars will lead to rapid demand growth (2kg of graphite in HEV, 25-50kg in EV)

Lithium Ion Batteries

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Graphite Prices 2011 (large flake)

5 - Industrial Minerals Magazine

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• Strike Graphite has acquired two projects within a mining friendly, politically stable jurisdiction

• Deep Bay East, Saskatchewan • Simon Lake, Saskatchewan

• Both projects posses geologic traits for the discovery of significant, large flake graphite deposits

• Poised for success, with aggressive exploration and development planned • Airborne Electormagnetic (EM) • Ground Follow-up • Drilling

Strike Graphite – Company Focus

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Project Locations – Deep Bay East and Simon Lake Saskatchewan - In 2011 Saskatchewan was

ranked* the 3rd best jurisdiction worldwide to conduct mineral exploration and development.

- The province has a history of permitting and developing mines for numerous commodities.

- The Deep Bay East Graphite Project is about 25 km east of the community of Southend, and less than 20 km east of the Deep Bay Graphite Mine.

____ * Fraser Institute

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Deep Bay East - Summary

- Property encompasses 5,355 ha along strike from the Deep Bay (West) Graphite Mine

- 1.8 Mt @ 10.32% C*

- Underlain by high-grade metamorphic rocks of a sedimentary origin, which is an ideal setting for large flake, high-purity graphite

* The resource estimate for an adjacent property is historic in nature and the company has not done sufficient work to confirm the estimate, therefore it should not be relied upon. The company believe the estimate to be relevant, but not reliable.

Graphite Mine Graphite Showing

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Deep Bay East - History

1968: Sherritt Gordon Mines identified graphite rich zones both east and west of Deep Bay - Airborne, ground EM and magnetic surveys completed - 383 metres of drilling in 4 shallow holes 1972: Superior Graphite Co. commissioned a report on the area 1973: Superior Graphite Co. completed line-cutting, mapping, trenching and sampling; and - Bulk sampling - Processing (preliminary recoveries of between 81.3 and 85.8%) - Market studies - Hypothetical mining, milling, processing, and transportation scenarios considered 2011: Strike Gold Corp. (Strike Graphite) acquires Deep Bay East

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Deep Bay East - Geology

- Flake graphite within 4 drill holes and trenches along 1,600-m strike length - “… Graphite occurs as flakes in certain metasedimentary horizons as much as 300 feet

wide … graphite content is thought to be reasonably consistent on strike, and bands of 15 to 30% graphite … occur between bands of 0 to 15% graphite” (James and Buffam, 1973)

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Deep Bay East – Historic Sampling and Results

Drillhole From (m) To (m) Interval (m) % C

DB 1 10.67 33.53 22.86 4.02%

DB 2 76.20 111.25 35.05 8.58%

DB 3 7.32 20.42 13.11 8.97%

60.96 71.63 10.67 9.06%

Trench From (m) To (m) Interval (m) % C Trench A 0.00 9.14 9.14 4.50%

9.14 18.90 9.75 8.01%

31.09 40.54 9.45 4.38%

Trench B 0.00 9.45 9.45 17.34%

10.97 14.33 3.35 27.52%

14.33 17.37 3.05 8.75%

Trench C 0.00 10.97 10.97 5.95%

14.63 16.46 1.83 7.47%

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-Mineralization at surface, and shallow drilling targets - Drill hole DB 1: 22.9 m interval of 4.02% C* - Drill hole DB 2: 35.1 m interval of 8.58% C - Trench B: 9.45 m interval of 17.34% C; 3.35 m of 27.52% C

-Potential for large tonnages of graphite (1.6-km known strike-length)

-Historic (1974) preliminary positive metallurgy for large flake recovery - Minimum ore grade 4% C** - 85% recovery - Products +100 mesh, 80% C, 40% of output - Products -100 mesh, 85% C, 60% of output

* Visual estimates are taken from historic drill logs and are to be differentiated from % C which is determined quantitatively by laboratory techniques. Both visual estimates and assaying from the historic core and trenches were determined before the introduction of National Instrument 43-101- Standards of Disclosure for Mineral Projects ("NI 43-101"). They may not be relied upon until they are confirmed using methods and standards that comply with those required by NI 43-101. ** Testwork was conducted on material from trenches and two drill holes, average grades ranged from 3.69 to 10.05% C, recoveries ranged from 81.3 to 85.8% C, final product(s) ranged from 81.9 to 90% C, using standard flotation methods (James and Buffam, 1973).

Deep Bay East – Property Summary

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Project Location –Simon Lake Saskatchewan - The province has a history of

permitting and developing mines for numerous commodities.

- The project is less 9 km from Saskatchewan Highway 955, which connects the southern part of the province to the uranium mines and mills within the northeastern parts of the Athabasca Basin and surrounding communities.

- The Simon Lake Graphite Project encompasses about 3,500 ha and is located south of Wollaston Lake, Saskatchewan.

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Simon Lake - Geology

- 5.5 km between graphite showings (visual estimates of graphite),

- More than 11 km of conductors

- High-grade metamorphic rocks of a sedimentary origin which is an ideal setting for large flake, high-purity graphite

- 6 historic drill holes

DDH: E42-5 Graphitic biotite gneiss: “coarse graphite flakes”

DDH: 2-72 Graphitic biotite gneiss: Visual estimates average 42.2m of 38.8% graphite

DDH: 1-72 Graphitic biotite gneiss: Visual estimates average 9.1m of 35.2% graphite

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-Mineralization at surface, and shallow drilling targets

-Potential for large tonnages of graphite (5-km known strike-length)

-Historic Drill Hole 2-72 encountered a graphitic biotite gneiss with visual estimates of zones containing from a few percent up to 70% graphite across a 68 metre interval, with most of the interval containing 20% graphite. (averaging 38.8% graphite over 42.2 metres)*.

-Approximately 5.5 kilometres to the southwest, along the same conductive horizon, drill hole E42-5 encountered a graphitic biotite gneiss with core descriptions of “disseminated graphite” or “coarse graphite flakes” over the entire 182.9 metres of core, with narrower intervals described as “graphite flakes abundant” and “heavy graphite in 6-12 inch bands”.

* Visual estimates are taken from historic drill logs and are to be differentiated from % C which is determined quantitatively by laboratory techniques. Both visual estimates and assaying from the historic core and trenches were determined before the introduction of National Instrument 43-101- Standards of Disclosure for Mineral Projects ("NI 43-101"). They may not be relied upon until they are confirmed using methods and standards that comply with those required by NI 43-101.

Simon Lake – Property Summary

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Deep Bay East and Simon Lake – Proposed 2012 and 2013 Exploration

PHASE 1

• Airborne EM Survey

• Ground follow-up • Prioritize targets

PHASE 2

• Drilling • Metallurgy and

Mineralogy

PHASE 3

• Definition Drilling • Initial Resource

estimate

PHASE 4

• Preliminary Economic Assessment (PEA)

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Deep Bay East and Simon Lake – Potential to Fast-track Development

Advantages: - Politically Stable Jurisdiction (Mining Friendly) - Near surface, open-pitable exploration target Fast Track to PEA (Work to complete early on): - Characterization and liberation studies using HQ drill core - Preliminary environmental studies - Community and government consultations - Follow-up drilling - Planning and organizing bulk sample

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Management and Board Geoff Balderson- President, CEO and Director President, CEO, Secretary and Director of Strike Gold; President of Flow Capital; VP of Snowwater; Financial Director of Argentum Silver; President, CEO, Secretary and Director of Barranco Resources Investment Advisor at Union Securities and Georgia Pacific Former member of the Sales and Marketing Executives International Certificated Sales Executive (CSE) and Certificated Marketing Executive (CME)

Robert A. Biagioni- Chief Financial Officer and Director Former President and CEO of Corus Financial Former senior financial and operation roles with the HTM, Group the First Merchant Group, CoreQuest Exploration Group, Ameri Gold, Brocade Metals, Canadian Bioenergy, Katie Gold, MDU Communications International, TelSoft Mobile Data (now MDSI Mobile Data Solutions) and Sand River Resources (now Fortune River Resource) Also a former a senior manager with Peat, Marwick, Mitchell (now KPMG) Member of Institute of Chartered Accountants and the Institute of Corporate Directors, the Association for Mineral Exploration British Columbia and the Prospectors and Developers Association of Canada.

J. Douglas Blanchflower- Vice President of Exploration +40 years of mineral exploration experience to Strike Gold Founded Minorex Consulting Ltd. in 1982 Director and senior management with several mining companies including: Rea Gold Corporation and Noront Resources Currently a Director of Pacific Bay Minerals

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Management and Board

David Toyoda- Director Practices in the corporate and securities law area focusing on companies that list on CSX He is the Past Chair of the Securities Law Subsection of the Canadian Bar Association (B.C. Branch) and was a member of The Securities Law Advisory Committee for the B.C. Securities Commission Bruno Maruzzo- Director Currently a director of President of TechnoVenture Pinetree Capital, a TSX-listed company; Calotto Capital, a TSX-V listed company and Critical Outcome, Technologies, a TSX-V-listed company Robert Findlay- Director +23 years experience in the mining and resource sectors (Founding president and CEO of First Mexican Gold) Has worked with various mineral and oil and gas issuers such as Simba Energy, Lateegra Gold and West Hawk Carrie Cesarone, Corporate Secretary 20 years in public company sector as legal assistant and paralegal for several securities lawyers. Currently serves as consultant for several TSX Venture Exchange listed companies and Corporate Secretary for Lateegra Gold Corp. Holds a Bachelor of Arts from Simon Fraser University.

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Disclaimer Certain statements in this presentation constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Strike Gold Corporation Ltd. (“Strike Gold” or “the Company”), or developments in Strike Gold business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include any statement relating to future events, conditions or circumstances. Strike Gold cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, changes in the resource market; market focus of Strike Gold revenue mix and margin targets; economic potential operations priorities; and development strategy. The risks and uncertainties that may affect forward-looking statements include, among others, the completion and integration of acquisitions, the possibility of technical, logistical or planning issues in connection with deployments, the continuous commitment of Strike Gold investors, demand for Strike Gold assets and other risks detailed from time to time in Strike Gold filings with Canadian provincial securities regulators. Forward-looking statements are based on management’s current plans, estimates, projections, beliefs and opinions, and the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Contents N. McCallum, P. Geo., who is a qualified person as required by NI 43-101, has read and approved the technical disclosure within this presentation.

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Corporate Office #1108 - 789 W. Pender St. Vancouver, B.C. V6H 1H2

Toll free : 1 (866) 669-9377 | Office: 1 (604) 669 -9330 www.strikegraphite.com

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References 1 Argonne National Laboratory Study (2009) 2 The Economics of Natural Graphite, 7th Edition 2009 3 USGS Mineral Commodity Summary 2011. p. 69. 4 Jonathan Lee, Byron Capital Markets, “The Growth of the Lithium-ion Battery Market”, December 2011. 5 Industrial metals magazine