LITHIUMSOUTH.COM - NRG Metals Inc.
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
LITHIUMSOUTH.COM
FORWARD LOOKING STATEMENTS AND DISCLAIMERS The information contained herein is provided solely for the reader's general knowledge. The information is not intended to be a comprehensive review of all matters and developments concerning NRG Metals Inc. All information is offered on a "best intentions" basis. No securities commission or other regulatory authority in Canada or any other country or jurisdiction has in any way passed upon this information and no representation or warranty is made by NRG Metals Inc. to that effect. This presentation may include "forward looking statements.” All statements, other than statements of historical fact, included herein, including without limitation, statements regarding exploration results, future plans and objectives of NRG Metals Inc. are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. NRG Metals Inc. does not make any representations, warranties or guarantees, express or implied, regarding the accuracy, completeness, timeliness, noninfringement, or merchantability or fitness for a particular purpose or use of any information contained in presentation. Furthermore, the information in no way should be construed or interpreted as, or as a part of, an offering or solicitation of securities. Investors are advised to discuss all of their stock purchases with a registered securities broker or personal finance professional prior to investing. No obligation, responsibility or liability shall be incurred by NRG Metals Inc. or any of its officers, directors, employees or agents for any loss or damage whatsoever, whether incidental, special, indirect, consequential, punitive, exemplary, or for lost profits in connection with, caused by or arising from any delays, inaccuracies, errors or omissions in or infringement by, or from any use of, or reliance on such information contained in this presentation. THE FINANCIAL PROJECTIONS PERTAINING TO THE HOMBRE MUERTO LITHIUM PROJECT ARE BASED UPON ASSUMPTIONS, EXPERIENCE AND PROPRIETARY KNOWLEDGE OF KEY LITHIUM MANAGEMENT. FURTHER EXPLORATION OF THE HOMBRE MUERTO NORTH LITHIUM PROJECT IS REQUIRED TO CONFIRM THE ASSUMPTIONS CONTAINED WITHIN THIS PRESENTATION AND TO VERIFY AND CONFIRM THE POTENTIAL OF THE FINANCIAL MODEL THIS PRESENTATION IS FOR DISCUSSION PURPOSES ONLY The production of this presentation was supervised by Mr. William Feyerabend, a Certified Professional Geologist and a Qualified Person as defined under National Instrument 43-101. Mr Feyerabend approves the scientific disclosure contained herein. TSX-V: LIS | OTCQB: NRGMF
COMPANY MISSION
“Lithium South is developing a world class lithium brine project with sustainable technology, delivering
value for Lithium South’s shareholders”
Why Lithium?
Global electric vehicle stock
• 40% year-on-year growth in electric
vehicles since 2010
• Based on current government policies
there will be 140mn electric vehicles
by 2030. But, if taking into
consideration the Paris Agreement,
the electric vehicle stock could be as
high as 245mn by 2030
• By 2030 the global electric vehicle
stock will be at least 30x greater than
today
This will need to be underpinned by a
long-term, stable supply of lithium.
2030 2030
2010 2019
Govt. Policies Paris Agreement
TSX-V: LIS | OTCQB: NRGMF
LITHIUM SUPPLY & DEMAND
Demand
• Current oversupply is short term
• Demand is expected to exceed
supply by 2023.
• Expected to increase 10x over the
next decade.
• By 2040 demand is expected to
outstrip supply by 100%
Why?
Insufficient upstream resource
investment coupled with inefficient
investment in downstream processing
capacity. Source: Broker research and internal analysis
TSX-V: LIS | OTCQB: NRGMF
Why Lithium South
World Class Resource
• >750 mg/L Li, low Mg/Li ratio
• Defined resource of 571,000T Lithium Carbonate Equivalent (measured &
indicated) *1
Partnership with Industry Leader
• Chemphys and SinoLithium bring over 20 years lithium experience
• Internationally recognized for conversion and processing expertise
• Established long-term customer base for quality approved battery quality
lithium products
Technology Innovation
• Chemphys and SinoLithium to fully fund pilot validation of Direct Lithium
Extraction (DLE) technology to more efficiently develop the Hombre Muerto
North (HMN) project:
• Reduce production lead time
• Increase lithium recovery, [higher resource availability and production
capacity]
• Decrease need for large evaporation ponds, which will reduce Lithium
south’s land footprint.
TSX-V: LIS | OTCQB: NRGMF
LITHIUM TRIANGLE
The Lithium Triangle produces
~50% of global lithium production at
lowest quartile cost
Prime location in Hombre Muerto Salar
• Southern Lithium’s Hombre Muerto
North Project is a Tier-1 lithium project
in the Lithium Triangle, Argentina
• High lithium content, low impurity
brine chemistry
TSX-V: LIS | OTCQB: NRGMF
HOMBRE MUERTO SALAR OVERVIEW
Hombre Muerto North (HMN):
• Advanced stage exploration,
commencing pilot testing at Chemphys
• NI 43-101 Certified Li – K Resource
Estimate (See page 17)
TSX-V: LIS | OTCQB: NRGMF
Lithium South’s Hombre North Project
Work Completed:
• Two production wells drilled and cased
• Resource Estimate:
Resources Li (mg/L) LCE (T)
Measured 797 509,000
Indicated 534 62,000
Total 756 571,000
• SinoLithium funding Direct Lithium
Extraction (DLE) process testing for HMN
project to optimize HMN resource extraction
• Preliminary Economic Assessment
(traditional evaporation):
NPV (8% DISCOUNT) US $217 million
CAPEX US $98 million
IRR (Post-Tax) 28%
Life of Mine 30 years
Pay back (from production) 2 years 5 months
TSX-V: LIS | OTCQB: NRGMF
Lithium South’s Hombre North Project
Property Package
Timing Work Stream
• 3,287 hectares / Li resource at Tramo November • Complete QP review of laboratory DLE test
claim block located in Salta Province, 2020 work and publish results
outside of conflict zone between Salta
• Conduct bulk brine sample cycle testing
Province and Catamarca Province
1Q 2021 • Complete pilot DLE test work
• Long term pump testing on site
2Q 2021 • On-site DLE pilot unit testing in Argentina
• Evaporation process test work
• Groundwater modelling
• Environmental Study
TSX-V: LIS | OTCQB: NRGMF
Chemphys Strategic Partnership
Chemphys brings over 20 years lithium experience
• Wholly foreign owned company operating in China
• SinoLithium is parent Hong Kong company
• Industry leaders in high purity lithium processing since 1998
• Chemphys product has been qualified by leading battery material customers
in China, Japan and Korea Chengdu Head Office
Cornerstone Lithium South shareholder since 2017 with a long-term investment horizon
Provides Lithium South with fast-track access to battery application market
• Chemphys has 100% off-take from the HMN Project
• Ensures Lithium South has expedited access to battery application market via Chemphys’ proven track
record in battery grade lithium processing and existing customer relationships
SinoLithium fully funds HMN Direct Lithium Extraction technology validation
• SinoLithium to fully fund DLE laboratory and pilot testing
programs under QP supervision
• SinoLithium to fund 30% of the Feasibility Study
• Upon successful completion of the above, SinoLithium will
earn-in up to a 30% working interest in the HMN project Technology Development & Commercialisation
Center
TSX-V: LIS | OTCQB: NRGMFDLE Technology
Traditional Evaporation Direct Lithium Extraction (DLE)
Process
Lithium Production > 18 months Anticipated Hours / subject to QP certification
Lithium Recoveries ~ 40 % Anticipated ~ 80 % / subject to QP certification
Weather Susceptibility Dilution & Flooding None
✓ Laboratory scale test work complete and undergoing NI 43-101 QP review
✓ Construction nearing completion on pilot unit at Chemphys facility
✓ Preparing to commence pilot test program
✓ Targeting pilot unit onsite in Argentina in 2Q 2021
Spent brine evaporation, subject to local conditions & regulation
Lithium Rich
Solution
Lithium Carbonate Proprietary Direct Brine Feedstock
Plant Lithium Extraction Pre-Treatment
Unit
Brine Resource
TSX-V: LIS | OTCQB: NRGMFDECISION ROAD MAP 2021 - 2024
HMN PROJECT SCHEDULE 2020 2021 2022 2023 2024
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Process Validation
DLE Lab Testing
DLE Pilot Testing at Chemphys
DLE Pilot Testing on-site Argentina
Evaporation Process Development
Process Selection Decision
Hydrogeology & Resource / Reserve
Pumping Test
Groundwater modelling & Reserves
Feasilility Study
Permitting
Construction
Commissioning
Production
TSX-V: LIS | OTCQB: NRGMFHMN PROJECT BUDGET & CAPITAL RAISE
12 MONTH WORK STREAM COST
• $ Cdn 1,800,000 capital raise at
Long term pumping test & traditional $ Cdn 0.22.5 each unit comprised
evaporation process development ground US $500,000 of one common share and one common
water model share purchase warrant
Permitting / EIR US $100,000
• Each warrant buys an additional common
General working capital US $400,000
share are $ Cdn 0.35
DLE pilot testing US $100,000
Property acquisition payment due March • Funds will be used for long term
US $1,000,000 pumping test and on-site DLE pilot test
2021
preparation
Total funding required US $2,100,000
Hombre Muerto North
Lithium Triangle, Argentina
TSX-V: LIS | OTCQB: NRGMFSOUTHERN LITHIUM TEAM
SOUTHERN LITHIUMS’ TEAM IN ARGENITINA & CHINA
Chemphys Chemphys have an 11-member technical team working full time on development of the Direct
DIRECT LITHIUM EXTRACTION &
Lithium Extraction Technology. Founded in 1998, Chemphys is recognized as one of the world’s
PROCESSING TEAM
leading lithium processing and technology companies with over 22 patents (valid and under
application) developed in-house.
Fernando E. Villarroel Mr. Villarroel has 12 years of experience in the mining industry in Argentina with a focus on Lithium
DIRECTOR, PROJECT MANAGER
process development. From 2009 to 2013 he worked with Lithium Americas Corp. (Minera Exar S.A.)
as Project Manager which included construction management and commissioning of the initial pilot
evaporation facilities and laboratory at the Cauchari Olaroz Lithium Project. He has also acted as a
consultant to Neo Lithium and International Lithium Inc. He holds a degree in Industrial Engineering
and has specialized training in Data Modeling & Analysis for Business and Engineering from M.I.T.
Hains Technology Associates Hains Technology Associates, located in Ontario, Canada will provide technical guidance and Qualified
Person review of all test work conducted by SinoLi. In addition, Hains will work directly with Mr.
Carlos Galli who will provide technical support locally in Argentina. Hains and Carlos Galli are
recognized for their lithium expertise having conducted many studies for companies within the
industry.
TSX-V: LIS | OTCQB: NRGMFBOARD OF DIRECTORS & MANAGEMENT
Adrian F. C. Hobkirk Adrian has 26 years of experience in the mining and venture capital industry, He has been involved in
PRESIDENT
Guyana for over twenty years and founded the company to develop the Groete Gold Copper Deposit in
CHIEF EXECUTIVE OFFICER
2006, the third largest gold deposit in Guyana. He has worked in many countries including Argentina and
is the largest shareholder of NRG Metals Inc., founding the company in 2016.
Christopher P. Cherry Mr. Cherry has over 20 years of corporate accounting and audit experience. Formerly an auditor with
CHIEF FINANCIAL OFFICER AND
KPMG, Mr. Cherry has extensive corporate experience and has held senior-level positions for several
DIRECTOR
public mining companies. He is a certified general accountant and a chartered accountant.
Allen V. Ambrose Founder and President of Minera Andes from November 1995 until it’s combination with McEwen Mining
DIRECTOR
in 2012., Mr. Ambrose directed the exploration and completion of the San Jose Mine in Argentina for
Minera Andes. He now sits on the board of McEwen Mining. He has over 30 years experience in the
mining industry and is the co-discoverer of the Brisas Gold Deposit in Venezuela.
Gordon K. Neal Gordon Neal has more than 35 years experience in governance, corporate finance and investor relations.
DIRECTOR
He founded Neal McInerney Investor Relations in 1991. Through marketing more than $4 billion in debt
and equity financings, the company grew to be the second largest full-service Investor Relations firm in
Canada He is currently VP Corporate Development for Silvercorp Metals Inc.
TSX-V: LIS | OTCQB: NRGMFBOARD OF DIRECTORS & MANAGEMENT
Alison Dai Ms. Dai has 9 years of experience in the lithium industry and is responsible for business development
DIRECTOR
and is a director for Chengdu Chemphys Chemical Industry Co., Ltd. In her role at Chemphys, Ms. Dai
has been involved in developing strategic partnerships, international markets and procurement. Prior
to joining Chemphys, Ms. Dai was an investment banking analyst at J.P. Morgan Australia in the mining
and metals team. Ms. Dai holds a double degree in Bachelor of Laws and Bachelor of Commerce from
the University of Western Australia.
Fernando E. Villarroel Mr. Villarroel has 12 years of experience in the mining industry in Argentina with a focus on Lithium
DIRECTOR
process development. From 2009 to 2013 he worked with Lithium Americas Corp. (Minera Exar S.A.) as
PROJECT MANAGER
Project Manager which included construction management and commissioning of the initial pilot
evaporation facilities and laboratory at the Cauchari Olaroz Lithium Project. He has also acted as a
consultant to Neo Lithium and International Lithium Inc. He holds a degree in Industrial Engineering
and has specialized training in Data Modeling & Analysis for Business and Engineering from M.I.T.
Jan Urata Ms. Urata brings over 20 years experience in public company corporate finance and securities related
CORPORATE SECRETARY
matters including her years as a paralegal at McMillan. She also serves as a Corporate Secretary to
other TSX Venture issuers.
TSX-V: LIS | OTCQB: NRGMFNATIONAL INSTRUMENT 43-101 CERTIFIED
RESOURCE ESTIMATE
Resource Brine Volume Li Grade Li Li2CO3 Equivalent K Grade K KCl Equivalent
Category (1000m3) (mg/L) (tonnes) (tonnes) (mg/L) (tonnes) (tonnes)
Measured 119,862 797 96,000 509,000 7,039 844,000 1,609,000
Indicated 21,936 534 12,000 62,000 5,517 121,000 231,000
M&I 141,798 756 107,000 571,000 6,803 965,000 1,840,000
The resource estimate was prepared in accordance with the requirements of National Instrument 43-101 and uses best practice methods specific
to brine resources, including a reliance on core drilling and sampling methods that yield depth-specific chemistry and effective (drainable) porosity
measurements. The resource estimation was completed by independent qualified person Mr. Michael Rosko, M.Sc., C.P.G. of the international
hydrogeology firm E.L. Montgomery & Associates (M&A). Tonnages are rounded off to the nearest 1,000. Cut-off grade: 500 mg/L lithium, but no
laboratory results were less that the cut-off grade. The conversion used to calculate the equivalents from their metal ions is based on the molar
weight for the elements added to generate the equivalent. The equations are Li X 5.3328=lithium carbonate equivalent and K X 1.907 = potassium
chloride equivalent. The reader is cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability.
Preliminary Economic Assessment The PEA was prepared by Knight Piesold
Consulting (KP) and JDS Energy and Mining (JDS),
After-tax net present value (8% discount rate) $217 million both of Vancouver, in accordance with the
standards set out in National Instrument 43-101
After-tax internal rate of return (IRR) 28% Standards of disclosure for Mineral Projects (NI
CAPEX capital expenditures $93.3 million 43-101), and CIM’s Best Practice Guidelines for
Mineral Processing (BPGMP).
OPEX cash operating costs (per metric tonne of lithium $3,112
carbonate) The Preliminary Economic Assessment is
preliminary in nature, there is no certainty that
Average annual production (lithium carbonate) 5,000 the Preliminary Economic Assessment will be
realized. The economic analysis is based upon
Mine life 30 years
mineral resources that are measured and
Payback period (from commencement of production) 2 years 5 indicated, but are not mineral reserves, and
months have not demonstrated economic viability.
TSX-V: LIS | OTCQB: NRGMFAdrian F.C. Hobkirk
President & Chief Executive Officer
714-316-3272
ahobkirk@lithiumsouth.com
www.lithiumsouth.comYou can also read
