PROPOSAL TITLE
A PROPOSAL TO
CLIENT:
Month Day Year
March 2015
World Scale VTM Holdings - Pacific Coast Mexico
� Concession holder mining company − HQ: Canada
− Privately held − Operator of profitable barite mines in
Chiapas State, Mexico & Western Canada − Exploration experts
� Mining target − Polymetallic mineral sand ore body
Vanadiferous Titanomagnetite (“VTM”). − Economically favorable concentrations of
high grade magnetite, vanadium, titanium, gold and Rare Earth Elements.
− Location: State of Chiapas, Mexico. − Type of mining: Dredge (lowest cost). − Potential resource: 700 billion tonnes VTM ore
− Concessions totaling 854,431 ha (8,543 km2). � Onshore (sand & hard rock) 282,814 ha. � Offshore (sand) 571,617 ha.
− Term of concessions: 50 years.
− Development stage: Late stage exploration.
− Expenses to-date > US$15 million.
− Technical Report (CIM NI43-101) by
respected independent geological consulting
firm 2011.
� Polymetallic ore body − Magnetite source rocks – Granodiorite
− Mountains parallel to Pacific Ocean
continually depositing magnetite and heavy
minerals over 8500 km2 coastal plain for >50 million years.
− Deposit extends 30km inland and >20km offshore in shallow waters.
− One of the largest polymetallic
vanadium deposits to be discovered
anywhere in the world. − Concessions feature145km long magnetic
anomaly identified by magnetic survey.
− Studies show magnetite throughout all
concessions, corresponding to magnetic
survey.
− Beach sand deposits similar to New Zealand Steel’s Taharoa operation.
− Potentially 250 times larger than aggregate total of New Zealand Steel’s iron sand mines.
− Iron ore is completely liberated from the sand.
− VTM contains exceptionally high 0.61% V2O5.
− VTM concentrate of 87% Fe3O4 (61% Fe) can be
produced through low cost gravity
concentration followed by magnetic separation.
� Infrastructure − Rail infrastructure in place.
− Power readily available.
− Paved 4-lane highway access.
− Direct access to the Port of Chiapas
protected by Mexican Navy.
� Environmental benefits − “Clean” waste sand from dredge tailings
will be used for reclamation of coastal erosion.
− River dredging can augment State flood control.
− Dredged flatland sites can create sustainable fish or shrimp farms.
� Mexico Federal & State of Chiapas
Government support for development
− The federally controlled Chiapas Port
Authority supports dredging (required
annually) construction of mineral terminal
and plant development at the Port of
Chiapas.
− The State of Chiapas government fully supports
mining projects and jobs creation.
− Readily available labour from nearby City of
Tapachula, population 200,000.
− Port dredging and environmental permits are in
place.
Blackfire Exploration Ltd
Company Name Here
NI 43-101 & Development Objectives
� Independent “Qualified Person” Technical Report* (2011) on Arena
Negra concession: *Based on Canadian Institute of Mining NI 43-101.
− Concession hosts an exploration target for iron sands concentrations containing areas with
grades between 4% and 10% Fe. (1 hour ICP, 24 hour ICP resulted in higher percentages)
− Fe3O4 (magnetite) concentrate with a grade of > 60% Fe is possible with combination of low
cost gravity and magnetic separation.
− Significant that titanium and vanadium preferentially concentrate with the Fe and are present
in potentially commercial quantities in the final concentrate.
− Economics of a dredge and titano-magnetite removal plant are very favorable assuming proof
of suitable resource.
− No condition modeled resulted in a negative NPV.
− Concession is a “property of merit”.
− Beach sands of [this] concession and larger concession look very similar and notionally, the
conclusions of the current study may be relevant for the larger concession as well.
− Rare Earth oxides Neodymium (Nd2O3) & Praseodymium (Pr6O11) averaging combined
440g/tonne & Niobium (NbO) averaging 187g/tonne present in concentrate.
� Polymetallic Oxides Production
− Create high value oxide production plant utilizing VTM concentrate as feedstock. − Conservative market prices of oxides listed below range from $500/mt (Fe2O3) to $90k/mt (Pr6O11) − Virtually “unlimited” multi-billion tonne supply of low cost feedstock <$20/mt.
� 99% hematite Fe2O3 (69% Fe) � 99% vanadium pentoxide V2O5 � 99% titanium dioxide TiO2 � 95+% gold Au � 99% REEs:
• niobium oxide NbO • praseodymium oxide Pr6O11 • neodymium oxide Nd2O3
− Oxide plant features proven “acid leaching” technology. − Regeneration of acid with zero atmospheric emissions.
� Oil & Gas Pipeline Weights
− Develop patented “Slimline” oil & gas pipeline weighting product line utilizing best in class magnetite as filler for pipe sacks. � Magnetite filled weights provide far greater efficiencies due to higher density (4.7-5.2 t/m3)
resulting in multi-million $ cost savings per 100km of pipeline versus alternative weighting methods; gravel, sand, concrete and coated pipeline.
� Virtually “unlimited” multi-billion tonne supply of low cost magnetite <$20/mt. � Capitalize on Mexico’s oil & gas industry growth and close proximity to Chiapas. � Expand service to USA, Canadian and South American oil & gas pipeline markets.
March 2015
Blackfire Exploration Ltd
Blackfire Exploration Ltd
Concessions, Magnetic Anomalies & Gold Exploration Targets
March 2015
Hard Rock Anomalies & Gold target areas on Ampilacion Arena Negra
Frontera, Arena Negra, F1-F7, Angelina
Magnetic anomaly with high Fe, Rare Earth Elements and world class vanadium concentrations
Concentrated sample = 60.7% Fe, 1.29% V2O5, 505g/tonne Nb, 302g/tonne Nd2O3
Blackfire Exploration Ltd
Brent WillisPresident
4150, 825-8th Avenue SW Calgary, AlbertaCanada T2P 2T3
Mobile: 403-923-5944