August 2013
Corporate presentation
Forward-looking statements
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Our presentation contains «forward-looking statements» not based on historical facts. Forward-looking statements express, as of the date of this presentation, our estimates, forecasts, projections, expectations and opinions as to future events or results. The forward looking statements that are contained in this presentation are based on various assumptions and estimates by the Corporation and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecast or suggested in these forward-looking statements and readers should not place undue reliance on forward-looking statements. We caution you that such forward-looking statements involve known and unknown risks and uncertainties, as discussed in the Corporation’s filings with Canadian Securities Administrators. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and general business, economic, competitive, political and social conditions. The Corporation expressly disclaims any obligation to update any forward-looking statements, except as required by applicable securities laws.”
Only 35.0 millions shares outstanding
Dynamic TEAM • Discovery, development to production and commercialisation • Financing and corporate governance
Sustainable energy initiatives BOOMING • Neodymium permanent magnets to power the future • Neodymium and Dysprosium are the CRITICAL ELEMENTS
MONTVIEL accessible world class deposit • Montviel carbonatite enriched in Rare Earths and Niobium (> 600M kg of Neodymium) • Permanent access and proximity to public infrastructures (ELECTRIC GRID)
SUSTAINABLE development supported by First Nations • Pre-development agreement with the Cree First Nation of Waswanipi • Cree Mineral Exploration Board is a SHAREHOLDER of GéoMégA
DEVELOPED by renowned mining engineers • G Mining Services Inc. in charge of engineering and financial model
INNOVATIVE PHYSICAL SEPARATION process in development • Collaboration with Polytechnique Physical department
Montviel
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Dynamic TEAM
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Alain Cayer, geo., M.Sc. (VP Exploration)
• PDAC Prospector of the year in 2005 – Éléonore gold discovery (Québec) • Revealing of Montviel (Enrichment zone and Heavy Rare Earth zone)
Patrick Godin, Eng. (Chairman)
• COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date
Denis Hamel, Eng. (Director)
• Manager of Xstrata’s Hackett River project (base metals) in Nunavut • More then 20 years of experience in mineral processing
Paul-Henri Couture, CFA (Director)
• Founder and president of Minvest Capital. • Former president and director of Sentient Group Canada • Responsible of the development and management of a $3B fund at la Caisse de Dépôt
Simon Britt, CPA, CA (CEO) • IPO of GéoMégA in 5 months (September 2010) • Discovery and initial 43-101 of Montviel within 10 months • > 85% of net financing in exploration and development
Discovery
Development
Production
Financing
Execution
Sustainable energy initiatives BOOMING
5 Rare Earth Elements, the motor of today’s industries
Computers Smart Phones Screens
Electric transportation
Electric transportation
Wind Power Generation
Europe and United States agree on CRITICAL ELEMENTS
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Dysprosium and Neodymium, the key to sustainable energy initiatives.
Dysprosium and Neodymium, the key to permanent magnets.
Neodymium/Iron/Boron (NdFeB) permanent magnets
Magnet applications
• 27% (33,250 tons) of global demand in 2010 (13% in 2000)
• Highest growth forecast of all applications: 11-13%/year
• 95% of magnet applications are Neodymium permanent magnets (« Neo-magnets »)
• Neo-magnets market in 2010 : ~ $6B
2010 (125,000 t) 2015 (180,000 t)
6% 27%
19%
6% 32%
21%
Magnets (Nd, Pr, Dy, Gd) Metallurgy (La, Ce, Nd, Pr) Phosphors (Y, Eu, Tb)
Source: Roskill 7
MONTVIEL accessible world class deposit
8 New Hydro-Québec 315kV substation in 2015 (45 km away on gravelled road)
Montviel > 600 millions kg of Neodymium (in-situ)
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Montviel – Core Zone surface plan (-50m)
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34,000 m of diamond drilling. Mineralized zone of 900m X 650m X 750m.
Rare Earths and Niobium enriched heart (West). Heavy Rare Earths zone (South).
Montviel – Heavy Rare Earths zone
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Heavy Rare Earths zone averaging over 100 ppm of Dysprosium
Montviel – Section 6+80W (looking West)
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SUSTAINABLE development supported by its stakeholders
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Signing of a Pre-development agreement with the Cree First Nation of Waswanipi
Cree Mineral Exploration Board shareholder of GéoMégA
Cree First Nation of Waswanipi shareholder of GéoMégA
Montviel development update meetings
Lebel-sur-Quévillon
Location of the October 2012 AGA meeting
October 20, 2011
September 22, 2012
April 22, 2013
DEVELOPED by renowned mining engineers
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Louis Gignac, Eng.,M.Sc.,D.Eng. President and CEO
Robert Marchand, Eng. VP Mining Engineer
Ahmed Bouajila, Eng. VP Metallurgy and Mineral processing
Infrastructures required for mining and processing located on site.
Necessary energy supplied by a power line connected to Hydro-Québec distribution network.
Preliminary Economic Assessment (PEA) expected prior the end of calendar 2013.
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Overall Recovery
Neodymium : 83% Praseodymium : 83% Europium : 83% Terbium : 83% Dysprosium : 64% Yttrium : 53%
Overall Recovery
Niobium : 93%
1. 2nd stage grinding = mass reduction
2. Tailings 3 – paste backfill directly
3. Tailings 5 – paste backfill directly ?
4. H2SO4 instead of pyro-hydrolysis ?
Flow sheet (PEA) – Optimisation in the works
Mining plan (PEA)
Montviel
50 m
150 m
30 m
50 m
30 m
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Oxide Tons/y Market share
(%)
Neodymium 2 000 < 6.0
Dysprosium 30 2.0
Europium 58 10.0
Praseodymium 639 6.5
Terbium 10 4.0
Yttrium 75 < 1.0
Niobium 1 200 1.0
Anticipated production (PEA)
20 year mine plan (912,500 t/year) in the first 150 meters tranche. Ramp access mining with paste backfill minimizes environmental impact.
All infrastructures on site, energy supplied by electric power line.
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120 kV Electric line
In development with the Crees of Waswanipi
Montviel – Fast tracked schedule
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Marché des Terres Rares INNOVATIVE PHYSICAL SEPARATION process in development
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Physical separation process relies on the discrimination of mineral grains based on their physical properties including : - density, - conductivity, - electric susceptibility, - magnetic susceptibility.
Sustainable chemical free separation process
18 months of research in collaboration with Polytechnique to establish concept
Innovation at the separation stage is the key to competitiveness with China
Pouya Hajiani, Eng., Ph.D. (Laval) – Chemical Engineering
Ahmed Bouajila, Eng. (Laval) – Mining Engineering Dr. Gerhard Weber (Germany) – Founder and CEO Sustainable Development Tech Fund
In the works: - Independant validation of concept (FFE Service GmbH) - Industrial conceptualisation (throughput equivalent) - Development and prototype financing
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Development and demonstration of the process
Ore
Beneficiation
Rare earths concentrate
Oxides (4N+)
Metal
NdFeB alloys
NdFeB magnets
Flotation, magnetic separation
Acid leaching
Physical separation
Molten salt electrolysis
Strip casting
Metallurgical powders + Patented process X
CAPex
$
Source: Shin Etsu Co Ltd.
In discussion with potential JV partners to produce high margin NdFeB alloys
LOCAL TRANSFORMATION = sustainable value creation
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JV
JV
2 $
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NdFeB magnet ALLOYS = VALUE CREATION
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1 1 3
1: Metal Pages, FOB China August 2013 2: Cost attribution based on GéoMégA’s projected Neodymium revenues. 3: Estimated based on LCM 2011 financial projections.
NdFeB magnets supply chain
Patent holders
Licensees
Source: J.A. Green and Co. 23
CHINA dominates thanks to low cost production (lack of environmental controls)
Only 35.0 millions shares outstanding
Dynamic TEAM • Discovery, development to production and commercialisation • Financing and corporate governance
Sustainable energy initiatives BOOMING • Neodymium permanent magnets to power the future • Neodymium and Dysprosium are the CRITICAL ELEMENTS
MONTVIEL accessible world class deposit • Montviel carbonatite enriched in Rare Earths and Niobium (> 600M kg of Neodymium) • Permanent access and proximity to public infrastructures (ELECTRIC GRID)
SUSTAINABLE development supported by First Nations • Pre-development agreement with the Cree First Nation of Waswanipi • Cree Mineral Exploration Board is a SHAREHOLDER of GéoMégA
DEVELOPED by renowned mining engineers • G Mining Services Inc. in charge of engineering and financial model
INNOVATIVE PHYSICAL SEPARATION process in development • Collaboration with Polytechnique Physical department
Montviel
24