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August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies...

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August 2013 Corporate presentation
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Page 1: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

August 2013

Corporate presentation

Page 2: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

Forward-looking statements

2

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.”

Page 3: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

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

3

Page 4: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

Dynamic TEAM

4

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

Page 5: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

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

Page 6: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

Europe and United States agree on CRITICAL ELEMENTS

6

Dysprosium and Neodymium, the key to sustainable energy initiatives.

Dysprosium and Neodymium, the key to permanent magnets.

Page 7: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

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

Page 8: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

MONTVIEL accessible world class deposit

8 New Hydro-Québec 315kV substation in 2015 (45 km away on gravelled road)

Page 9: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

Montviel > 600 millions kg of Neodymium (in-situ)

9

Page 10: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

Montviel – Core Zone surface plan (-50m)

10

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).

Page 11: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

Montviel – Heavy Rare Earths zone

11

Heavy Rare Earths zone averaging over 100 ppm of Dysprosium

Page 12: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

Montviel – Section 6+80W (looking West)

12

Page 13: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

SUSTAINABLE development supported by its stakeholders

13

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

Page 14: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

DEVELOPED by renowned mining engineers

14

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.

Page 15: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

15

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

Page 16: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

Mining plan (PEA)

Montviel

50 m

150 m

30 m

50 m

30 m

16

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.

Page 17: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

17

120 kV Electric line

In development with the Crees of Waswanipi

Page 18: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

Montviel – Fast tracked schedule

18

Page 19: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

Marché des Terres Rares INNOVATIVE PHYSICAL SEPARATION process in development

19

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

Page 20: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

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

20

Development and demonstration of the process

Page 21: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

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

21

JV

JV

Page 22: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

2 $

22

NdFeB magnet ALLOYS = VALUE CREATION

2

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.

Page 23: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

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)

Page 24: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

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

Page 25: August 2013 - Geomega Ressources · • COO of Stornoway Diamonds (T.SWY) • 7 Feasibility studies to date Denis Hamel, Eng. (Director) • Manager of Xstrata’s Hackett River project

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