Heatherdale Resources Ltd. Building shareholder value by developing premium deposits in Alaska

Transcription

1 Heatherdale Resources Ltd. Building shareholder value by developing premium deposits in Alaska June 2015

2 Forward-Looking Statements Except for statements of historical fact, this presentation contains certain forward-looking information within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as plan, project ; intend, believe, anticipate, estimate and other similar words, or statements that certain events or conditions may or will occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Assumptions used by Heatherdale to develop forward-looking statements include the following: the Niblack project will obtain all required environmental and other permits and all land use and other licenses, studies and exploration of the Niblack project will continue to be positive, and no geological or technical problems will occur. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of mineralization and resources, mining rates recovery rates and the lack of availability of necessary capital, which may not be available to Heatherdale on terms acceptable to it or at all, changes in and the effect of government policies with respect to mineral exploration and exploitation, uncertainties related to the ability to obtain necessary permits, licenses and title, and delays due to third party opposition, delays in exploration and development projects and the possibility of adverse developments in the financial markets generally. Heatherdale is also subject to the specific risks inherent in the mining business as well as general economic and business conditions. The company undertakes no obligation to update forward-looking information if circumstances or management s estimates should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents that may be filed from time to time with the Canadian securities regulatory authorities by Heatherdale. Information Concerning Estimates of Indicated and Inferred Resources This presentation uses the terms Indicated resources and Inferred resources. Heatherdale Resources Ltd. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, Inferred resources have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. The securities of Heatherdale Resources Ltd. referenced herein have not been, and will not be, registered under the Securities Act of 1933, as amended, or under any state securities laws, and may not be offered or sold in the United States absent such registration or an exemption from registration. Technical information contained in this presentation has been reviewed and approved by Mark Rebagliati, PEng, a qualified person who is not independent of Heatherdale Resources Ltd. 2

3 Niblack Excellent Location and Infrastructure 3

4 Niblack Poised for Development Secure Title in a supportive and safe jurisdiction Resource defined with internal continuity Clear path to development with existing resource Excellent metal recoveries, premium concentrate grades Unique, low cost development opportunity with excellent Infrastructure Brownfields industrial site (GIIC) for processing plant near Ketchikan Access to low cost-hydro power and skilled labor force Tidewater location for low cost concentrate delivery to the Pacific Rim Drill ready resource expansion opportunities Low initial capital requirement AIDEA* Funding ($125M) authorized by 2014 Alaska legislature * Alaska Industrial Development and Export Authority, Alaska s development finance authority 4

5 Niblack Property Secure Land Tenure 6,200 Acres of Federal Mining Claims 250 Acres of Patented Mining Claims Heatherdale controls 100% 5

6 Niblack District Exploration = Resource Expansion Historical mining operations Produced 20,000 tons Patented claims 250 acres Active exploration since 1970s 195,000 feet* of drilling in 246 holes Spent by prior operators = $41M Underground development drift: 3,300ft - $10M Completed in UG drill holes 19,765 ft Discovery of new high grade mineralization in drill core Since 2009, Heatherdale has: Spent $37M Drilled 200,000 ft Substantially increased resource * includes the 28 UG holes - 19,765 ft 6

7 Niblack Site Infrastructure Accessible Deep Water at Niblack Anchorage Gravina Island Industrial Complex (GIIC) Dock & Barge Camp Supply Barge Underground Development 7

8 Niblack Gravina Island Industrial Complex (GIIC) 8

9 Niblack Focus on Potential for near-term Production Advance development planning based on existing higher grade resource Mobilize strong Stakeholder and Governmental support to rapidly advance project through permitting Construct a financing package that includes AIDEA pre-authorized financing to complete Niblack study, focused on: achieving excellent IRR paying back capital in less than two years Employ optionality to effectively expand resource base from underground operation Ramp up production in line with resource expansion Opportunity: Add value through staged investment in a high value resource located in a low risk jurisdiction by aggressively advancing project to production 9

10 Niblack Resource Estimate US$150/t NSR Higher Grade Indicated Resource Tonnes Cu % Au g/t Zn % Ag g/t Total 1,160, US$50/t NSR Million Tonnes Cu % Au g/t Zn % Ag g/t Indicated* Inferred * Includes higher grade resource Note 1: Net Smelter Return (NSR) cutoff uses long-term metal forecasts: gold US$1,150/oz, silver US$20.00/oz, copper US$2.50/lb, and zinc US$1.00/lb; Recoveries (used for all NSR calculations) to Cu concentrate of 95% Cu, 56% Au and 53% Ag with payable metal factors of 96.5% for Cu, 90.7% for Au, and 89.5% for Ag; to Zn concentrate of 93% Zn, 16% Au, and 24% Ag with payable metal factors of 85% for Zn, 80% for Au and 20% for Ag. Detailed engineering studies will determine the best cutoff. Note 2: November 2011 estimates by Deon Van Der Heever, Pr. Sci. Nat., Hunter Dickinson Inc., a Qualified Person who is not independent of the Company. 10

11 Niblack Potential Mining and Processing Facilities Underground Mine 1000 to 1500 Tons Per Day 1 Small Footprint Plus 10 year mine life 2 Envision long hole stoping method Primary crushing, then barge to processing site Processing Site (near Ketchikan) Brownfield Industrial site MOU with Ketchikan Gateway Borough Clean Energy infrastructure with capacity Existing service and supplies infrastructure Available local workforce Simple metallurgical flow sheet crush grind float Investigate value of pyrite concentrate Deep draft port for Shipping of Concentrate Interior of the Kensington mill with the grinding units in the foreground. July Based on comparisons with operations of similar deposit type. 2 Based on current mineral resources. 11

12 Niblack Excellent Metallurgical Results Copper concentrate (29 30% Cu) Recoveries 94-95% copper 56-62% gold 53-61% silver Zinc concentrate (60 65% Zn) Recoveries 90-93% zinc 10-16% gold 16-24% silver Medium to coarse grained for easier processing and recoveries Very desirable clean concentrates Simple Milling: Crush, Grind, and Float Testwork conducted for Niblack Mineral Development Inc. by SGS Canada Met Lab based on two 75 kg samples. 12

13 State Legislature Approves Niblack Project Financing Alaska Industrial Development and Export Authority (AIDEA) AIDEA is a state owned corporation. Mission is to promote, develop, and advance economic growth and diversification in the state by providing financing and investment. The authority has a long history of supporting Alaska s minerals industry, beginning with its financing and construction of the DeLong Mountain Transportation System at Red Dog. October 2013 MOU between AIDEA and Heatherdale signed Heatherdale and AIDEA will work collaboratively to advance opportunities associated with Niblack Project and the potential mill facilities at the Gravina Island Industrial Complex (GIIC) with the Ketchikan Gateway Borough (KGB). MOU to assess the potential for processing, port, and tailings storage facilities at GIIC. Financing and/or direct investment in capital infrastructure improvements such as roads, ports and power facilities resulting in opportunities to reduce CAPEX commitments. April 2014 Alaska State Legislature unanimously passes Senate Bill 99 SB99 pre-authorizes AIDEA ability to issue bonds for up to $125 Million to finance the development of the Niblack Project and the GIIC for a mineral processing facility. 13

14 Government and Community Outreach 14

15 Resource Expansion Opportunities 15

16 Niblack Lookout Zone Types of Mineralization C Zone Felsic Flow Sulphide Contacts 16

17 Niblack Lookout, Trio, and More Drill Ready Targets Historical Surface Drill Hole Intercepts 17

18 Niblack First Order Expansion Opportunities 18

19 Niblack Dama Zone Geophysics (IP) 19

20 Niblack Project Advantages Advanced Engineering and Project Scoping Resource Expansion Targets Drill Ready Excellent Mill Site near Ketchikan Governor strongly supports the project $2.0M in capital budget to improve access road from airport to GIIC Alaska Delegation support the project Begich and Murkowski introduced road bill Representative Don Young introduced POW road bill to House Committee SE Alaskan legislators supportive Unanimous vote on SB99 AIDEA financing Local government leaders are on board Sealaska Native Corporation engaged and supportive Local Price of Wales Island (POW) communities and Native leaders engaged Ketchikan community very supportive 20

21 Plans Going Forward Be Prudent Niblack Project Explore investment opportunities to take Niblack Project Forward to Pre-feasibility and ultimately into Permitting and Construction Collaborate with the Ketchikan Gateway Borough (KGB) as part of the MOU to investigate the suitability of the Gravina Island Industrial Complex for the Niblack Processing Plant Collaborate with AIDEA on financing options and opportunities as part of the MOU and SB99 Continue Stakeholder Engagement Activities Comply with Permitting requirements Continue Environmental base line data collection 21

22 Heatherdale Board of Directors and Management Scott Cousens Chairman and Director Scott Cousens provides management and financial services to a number of publicly traded companies managed by Hunter Dickinson. His focus for the past 20 years has been the development of relationships within the international investment community. Sharon Gardiner Director Shari Gardiner, P.Geo., is senior advisor on technical compliance for the Hunter Dickinson group. An active member of the mining community, she is a past President of the 5,000-member Association for Mineral Exploration BC. Patrick Smith President, CEO and Director Patrick Smith is a professional geologist with 35 years of experience in the minerals industry. Over the course of his career he has worked on a series of globally diverse mineral exploration and development projects spanning a range of mineral commodities -- including gold, copper, molybdenum, iron ore, diamonds, industrial minerals and metallurgical coal. Robert Dickinson Director Robert Dickinson is an economic geologist who has been actively involved in mineral exploration and mine development for over 40 years. He is Chairman of Hunter Dickinson as well as a director and member of the management team of a number of the public companies associated with Hunter Dickinson. David Copeland Director Dave Copeland is a geological engineer with thirty years experience in advancing mineral projects through feasibility, permitting, engineering design and initial development phases. Lena Brommeland Director Lena Brommeland has more than 20 years experience as a geologist managing major exploration projects in Alaska, British Columbia and around the world. Her experience includes onsite drill programs, environmental planning and permitting, and community relations activities for exploration and feasibility-level project. Rene Carrier Director Rene Carrier is a past Vice-President of Pacific International Securities Inc. He is also a director of a number of public companies. Judy Thomson Director Judy Thomson is a Chartered Accountant with over twentyfive years of professional experience in audit, business administration and human resources, holding senior positions with a global accounting and consulting firm in Canada and Asia. She was a director of Detour Gold from January 2007 to March Mark Peters CFO Mark Peters is a Chartered Accountant and holds a Bachelor's degree in Economics from the University of Victoria. He has 15 years of experience in the areas of financial reporting and taxation, working primarily with Canadian and US public corporations. Previously, Mr. Peters worked for PricewaterhouseCoopers LLP in the tax group. Trevor Thomas Corporate Secretary Trevor Thomas has practiced in the areas of corporate commercial, corporate finance, securities and mining law since Prior to joining Hunter Dickinson, he served as in-house legal counsel with Placer Dome Inc. 22

23 Thank You Investor Relations 15th Floor Phone: West Georgia Street Fax: Vancouver, BC TF: Canada V6E 4H1 Website: 23