Hard Creek Nickel Investor Presentation
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Transcript of Hard Creek Nickel Investor Presentation
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Hard Creek Nickel Corporation
HNC:TSX
www.hardcreeknickel.com
Turnagain Project
September 2012
Emerging Giant
Over 2 million tonnes of 18% Ni Concentrate
27 year mine life
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Cautionary Statement
2
The Preliminary Economic Assessment (PEA) results released on October 20, 2011were authored by AMC
Mining Consultants (Canada) Ltd. The PEA includes the use of inferred mineral resources that are considered too
speculative geologically to have economic considerations applied to them that would enable them to be
categorized as mineral reserves. The study is preliminary in nature and there is no assurance the mining, metal
production or cash flow scenarios outlined in this report would ever be realized. Mineral resources are not
mineral reserves and do not have demonstrated economic viability.
This presentation uses the terms “measured”, “indicated” and “inferred” resources. We advise U.S. investors that
while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange
Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral
deposits in these categories would ever be converted to reserves.
This presentation contains “forward-looking statements”. Such forward-looking statements involve a number of
known and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of the company’s plans to materially differ from any future results, performance or achievements
expended or implied to such forward-looking statements. Known risks include, but are not limited to, financing
risks, commodity price risks, scheduling risks and engineering risks. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date the statements were made, and
readers are advised to consider such forward-looking statements in light of the risks set forth in the companies
continuous disclosure filings as found at www.sedar.com.
The information contained in this presentation has been reviewed by Neil Froc, P.Eng. a Qualified Person.
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Mining Friendly Location
Turnagain
Project
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Northwest British Columbia
• Roads (pavement to Dease Lake)
• Power (Extending to Bob Quinn 2014)
• Port (Stewart - shipping concentrate)
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Local Access
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Site Access
By Air
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Site Access
By Ground
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Process Flow Sheet
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Large Project AMC Mining Consultants PEA – October 2011
Open pit mine plan
Milling 763 million tonnes
Mine life of 27.2 year
* Based on 70,570 metres of drilling in 270 drill holes
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Projected Turnagain Nickel Production
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500
600
700
800
900
1000
1100
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Nic
ke
l C
on
ce
ntr
ate
/k
t
Concentrate Feed
Concentrate SmelterRequirement
Potential ConcentrateRequirement
Source: Brook Hunt – A Wood Mackenzie Company
Global Smelter Capacity vs. Concentrate Supply
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Financial Analysis
Ni price per lb. $7.65 $8.50 $9.35
(-10%) (Base) (+10%)
NPV8 pre tax $0.71 billion $1.29 billion $1.88 billion
NPV8 after tax $0.39 billion $0.72 billion $1.06 billion
IRR pre tax 12.6% 15.9% 19.0%
IRR after tax 11.2% 13.5% 15.6%
NPV8 is depreciated net present value at a discount rate of 8%.
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Capital Costs
(US $millions) Initial Expansion Total
Year 5 LOM
Mine 244 68 406
Processing 986 406 1,392
Other & Sustaining 95 18 478
Working Capital 32 0 32
TOTALS $ 1,319 $ 492 $ 2,308
218 tonne
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Operating Costs
US$/tonne ore
Year 1-5 Year 6-21 LOM
Mining 3.11 3.11 2.52
Processing (incl. Tailings) 4.69 4.38 4.44
General and Administration 0.57 0.29 0.33
Total Operating Cost $ 8.37 $ 7.78 $ 7.29
C1 cost to produce 1 lb. of Nickel: $4.25
C1 cost is the total cost to produce 1 lb. of Nickel, including transportation costs
and smelter charges, net of byproduct credits.
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Turnagain Project Status
•Major new supply of premium quality 18% Ni concentrate
•Economically viable
•Low technical risk
•Upside for platinum/palladium to concentrate
•Very large deposit and open to expansion
Ultramafic
1 588 hectares
Resource
289 hectares
Cut-off Grade of 0.10 % Ni Tonnage Ni % Co %
Measured 227,379,000 0.22 0.014
Indicated 638,103,000 0.21 0.013
Measured & Indicated 865,482,000 0.21 0.013
Inferred 976,295,000 0.20 0.013
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Turnagain Complex
PGE Zone
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PGE Zone Geology
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Pt+Pd Soil Anomalies
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Cu Soil Anomalies
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Total Field Magnetics
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AEM Conductors
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Total Field Magnetics & AEM Conductors
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DB Target
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DB Cross Section
A B
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DB Target
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Summary
• Identify partner for taking Turnagain to Feasibility
• Turnagain PGE exploration
• Nickel and PGE exploration in BC
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Mr. Mark Jarvis, President CEO – Director
Mr. Jarvis has more than 25 years experience in exploration and development of mineral resources, both in
oil and gas and metals. After a career in financing exploration projects as a stockbroker, Mr. Jarvis moved
to the corporate side of the business in 1996. He joined the board of Ultra Petroleum, which at the time was a
small oil and gas exploration and development company with a large unconventional gas deposit. As Director
responsible for Corporate Finance, he raised the equity capital necessary to prove the concept and to
establish enough production to finance further growth with debt. Ultra Petroleum has grown from a market
capitalization of $10 million to its current capitalization of more than $5 billion. Mr. Jarvis became CEO
and President of Hard Creek Nickel Corp. in January, 2004. During his tenure the company has drilled off a
giant nickel sulphide deposit and has assembled a team of talented professionals dedicated to developing the
resource.
Mr. Gary Johnson - Director Mr. Johnson is a metallurgist with over 30 years experience in all aspects of the mining industry. In his early
career he gained broad operational and project experience in a range of operations in Africa and Australia.
Mr. Johnson spent ten years as Chief Metallurgist for a large gold producer before forming his own specialized
hydrometallurgical consulting company in 1998. During this period he worked closely with LionOre Mining
International to develop the Activox® process for treating sulphide concentrates. In 2006, LionOre acquired
Mr. Johnson’s company and he then joined LionOre as a senior executive. In 2007, LionOre was successfully
taken over by MMC Norilsk Nickel. Mr. Johnson became a Managing Director of Norilsk’s Australian
operations in operations in 2009. Mr. Johnson currently owns his own consulting company specializing in high
level metallurgical and strategic advice.
Mr. Cliff Carson, B.A. Econ. - Director Mr. Carson was President and Director of Diamond Fields Resources Inc. from May 1995 until July 1996,
during which time Diamond Fields was acquired by Inco in a $4.6 billion transaction. Prior to that time
Mr. Carson was Senior Vice President, Marketing and Sales at Falconbridge Ltd. He has also served as a
member of the Advisory Board for Nikkelverk Nickel Refinery at Kristiansand, Norway and is the past
Chairman of the Nickel Development Institute. Mr. Carson holds a B.A. with Honors in Economics from
Simon Fraser University.
Hard Creek Nickel Board of Directors
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Lyle Davis, P.Eng (Alberta) MBA – Non Executive Chairman of The Board and Director
Mr. Davis is an independent director of the Company, and chairman of the board of directors. Mr. Davis is the
principal of Ellardee Group Capital Inc., a firm he founded in 1999 to provide corporate finance, advisory and
management services to public companies. He has a Bachelors Degree in Civil Engineering from Queen’s
University and an MBA from the University of British Columbia, and is a member of the Association of
Professional Engineers, Geologists, and Geophysicists of Alberta. Mr. Davis is a director of Condor Resources
Inc. and Lock and Load Retaining Walls Ltd.
George Sookochoff, B. Comm – Director
Mr. Sookochoff graduated from the University of British Columbia in 1975 with a Bachelor of Commerce Degree.
He currently serves as President and CEO of the International PBX Ventures. He was appointed as a Director of
Hard Creek Nickel in November 2003. Mr. Sookochoff has over 27 years experience in the junior mining
exploration sector.
Tom Milner, P.Eng – Director
Mr. Milner holds a Bachelors Degree in Civil Engineering from Carleton University and a Masters Degree in
Mining Engineering from McGill University. Mr. Milner has over 30 years experience in the mining
industry. In 2003, Mr. Milner was awarded the Canadian Institute of Mining Proficiency Medal to recognize
the contribution made to the development of the Mining Industry and Institute at the local Branch level. Mr.
Milner was Chief Operating Officer for Taseko Mines Ltd. responsible for the successful 2004 restart of the
producing open pit copper-molybdenum Gibraltar Mine located in south central B.C.
Hard Creek Nickel Board of Directors