Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

19
Loadout Location > Donahue Creek FEBRUARY 2015 1 This document contains certain forward-looking statements and information relating to Highbank that are based on the beliefs of management as well as assumptions made by and information currently available to management. When used in this document, the words "anticipate," "believe," "estimate," "expect," and "intend" and similar expressions, as they relate to Highbank or its management, are intended to identify forward-looking statements. Such statements reflect the current view of Highbank respecting future events such as the antcipated completion of certain Prince Rupert-Kitimat construction projects, the Company’s ramp-up schedule, various stages of financing by the company, completion of stage two and any production estimates, the Company’s use of proceeds calculation, projected cashflow forecasted revenue and production dates, revenue and profit, and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. Any technical or geotechnical information related to the Swamp Point North resource was prepared under the direction of Keith McCandlish of DMT Geosciences Ltd., (formerly Associated Geosciences of Calgary, Alberta), a qualified person under NI 43-101.

Transcript of Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

Page 1: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

Loadout Location >

Donahue Creek

FEBRUARY 2015

1

This document contains certain forward-looking statements and information relating to Highbank that are based on the beliefs of management as well as assumptions made by and information currently available to management. When used in this document, the words "anticipate," "believe," "estimate," "expect," and "intend" and similar expressions, as they relate to Highbank or its management, are intended to identify forward-looking statements. Such statements reflect the current view of Highbank respecting future events such as the antcipated completion of certain Prince Rupert-Kitimat construction projects, the Company’s ramp-up schedule, various stages of financing by the company, completion of stage two and any production estimates, the Company’s use of proceeds calculation, projected cashflow forecasted revenue and production dates, revenue and profit, and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. Any technical or geotechnical information related to the Swamp Point North resource was prepared under the direction of Keith McCandlish of DMT Geosciences Ltd., (formerly Associated Geosciences of Calgary, Alberta), a qualified person under NI 43-101.

Page 2: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

East side of Portland Canal fjord on protected, year round ice free tidewater

Site access by helicopter, float equipped aircraft, or boat

78 miles by water, south to Prince Rupert and 38 miles north to Stewart

Importantly only 35 miles south by water, to Grassy Point, site of proposed LNG Terminal/Plants

2

Page 3: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

Swamp Point

3

Page 4: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

4

Page 5: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

5

Page 6: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

Sector: Resources

Property Type: Construction Aggregate

Stock Market Symbol: TSX.V: HBK; Frankfurt: V7O

52-Wk Trading Range: C$ 0.105 - C$ 0.38

Shares I&O: 103,165,999(Feb 28, 2015)

Market Capitalization: C$18.0 million (approx.)

6

Page 7: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

Athabasca Minerals TSX.V: ABM

Price: $1.0852-Wk Range: $0.65 -$3.20Market Cap: $39.9 million

Polaris Minerals (TSX: PLS)

Price: $2.6052-Wk Range $1.65 - $3.20Market Cap: $227.9 million

7

Page 8: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

Sand, gravel, crushed stone essential for road building and concrete for commercial operations

Aggregate is the world’s most mined material next to oil. 2012 global sales revenues were est. at $99 billion, an increase of 41% from 2010 est. sales of $70 billion

Annual Canadian consumption of aggregate 10 to 15 tons per person

BC Production was 38 million tonnes in 2010 valued at C$322million

BC Production expected to considerably exceed previous years

8

Page 9: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

The mining of a sand and gravel deposit for construction in the Prince Rupert area to create a significant new supply source for the industry*

All permits, licences and approvals obtained Approx. $5.4 million of development and $3.2 million equipment capital costs

Proximity to LNG and pipeline projects – high demand for aggregate

First sales commitment received, other bids placed for supply

Cooperative agreement in place with First Nations

Processing Equipment on site and site preparation underway

Near-term production, barge loading commissioned Nov 2014

Land position increased from 51 to 174 Hectares (all in good standing)

9

*The Company decision to proceed with production is not based on a feasibility study of

reserves demonstrating economic and technical viability and as a result there may exist

increased uncertainty, economic and technical risk of failure associated with such

production decision.

Page 10: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

10

Classification Tonnes

Measured 62,936,877

Indicated 8,775,166

Measured and Indicated 71,712,043

Inferred 2,246,464

Source: DMT Geosciences Ltd. (Formerly, Associated Geosciences Ltd.) prepared the resource model and estimation under the direction of Keith McCandlish, P.Geo., and P. Cain, PhD, P.Eng., both qualified persons defined under NI 43-101

Page 11: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

PRINCE RUPERT AREA – HAS LIMITED SUPPLIES OF

QUALITY SAND AND GRAVEL

HIGHBANK’S SWAMP POINT DEPOSIT MEETS

SPECIFICATIONS FOR CONSTRUCTION AGGREGATE

NEAREST, LARGEST AND MOST ACCESSIBLE SOURCE WITH LOW COST TRANSPORTATION - BARGING

11

Page 12: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

Primary Target Region

Prince Rupert-Kitimat, B.C. and Alaska

Competitive Advantage

Proximity to the Port of Prince Rupert’s construction projects facilitates port to port transportation – most economic mode of delivery

Strategic location to supply Grassy Pt. and proposed pipelines

Highbank’s First Sales Contract

To North Coast Concrete. 150,000 tonnes. Signed March 2014.

12

Proposed Off –Loading site at Ridley Island

Page 13: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

10 year expansion plan of Prince Rupert Port Authority - $1.3 billion Federal Initiative

Spectra – BG, 850-km pipeline project - $6-$8 billion

Canpotex potash terminal - $400 million Watson Island Industrial Site

Redevelopment - $90 million

Ridley Terminals coal expansion - $200 million and $90 million road and infrastructure projects

Global TV video clip on multi-billion dollar projects in Prince Rupert-Kitimat

http://tinyurl.com/9q4syyx

13

Canpotex Potash Export Terminal

Page 14: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

Exxon Mobile Imperial Oil export, permit

filed for terminal at Grassy Point (38 miles

from Swamp Point)

Region’s share of BC provincial govt’s $25

billion Pacific Gateway Transportation

Strategy investment

Pacific North West LNG Terminal $9 - $11

Billion

See Invest in Northwest http://investnorthwestbc.ca

14

Page 15: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

Site preparation complete October and Plant installed – stockpiles of aggregate being prepared for processing

Pilings for loadout completed October 2014

Loadout conveyor installed October/November 2014

Loading first barge for shipment estimated March 2015

Initial mining phase at rates of up to 235,000 tonnes per year

15

Page 16: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

Initiate Environmental Impact and associated studies for unlimited production March – July 2015

Assess requirements for plant expansion February 2015

Install new conveyor from plant to load-out conveyor – 2nd Quarter 2015

Commence plant scale-up and determine additional equipment requirements

Year 2015/16 Full Scale production

16

Page 17: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

Source of Funds

Convertible Debenture Financing C$4.0 millionOther Financing (Short Term Loans,warrant exercising) C$3.0 – C$3.5 million

Use of Funds

Swamp Point North Capital & Start-up Costs C$6.5 – C$7.0 million

General Working Capital C$ 500,000

Total C$7,500,000

17

Page 18: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

Victor N. Bryant, I.Eng; MAusIMM, President/CEO/Director

40+ years mining experience incl. with Major Mining Companies

Gary Musil, Secretary/CFO/Director

30 years financial and management consulting experience

Stan Spletzer, VP of Aggregate Operations

30 years contracting experience incl. for Canfor, Houston Forest Products,

and BC Ministry of Forests

Luard J Manning, P.Eng (Mining) Director

50 years mining experience as a consultant and as President of L.J.

Manning and Associates since 1967

Jim Place, P. Geo;

25+ years with BC Government, engineering and consulting companies

including Levelton, and quarry evaluations

Bill Loucks CPA, CA, CFP

25+ years providing audit, accounting, tax & consulting services. Managing Partner – Collins Barrow Chatham - Kent

18

Page 19: Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

#600 - 625 Howe Street,Vancouver, B.C. V6C 2T6

Victor Bryant CEO/President/DirectorGary Musil, CFO, Secretary/Directort. (604) 683-6648/f. (604) 683-1350

[email protected]

This document may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Forward-looking statements are projections of events, revenues, income, future economic performance or management’s plan and objective for future operations and include, without limitation, statements with respect to the anticipated production from the Swamp Point North Aggregate Project, the realization of mineral estimates, success of mining operations, the timing and amount of estimated future production, title disputes or claims, environmental risks, limitations on insurance coverage, current and anticipated purchase negotiations and arrangements, requirements for additional capital; and government regulation of mining operations. In some cases, you can identify forward- looking statements by the use of terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors, including: fluctuations in worldwide prices and demand for aggregates; changes in project parameters as plans continue to be refined; possible variations in grade and or recovery rates; accidents, labour disputes as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, are filed and available for review on SEDAR at www.sedar.com.

19