SMY: TSX-VAdamas also projects that by 2021 these five neo-CREOs will comprise 95% of the relative...

SMY: TSX-V

2 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | March 2017

Cautionary Statement

The following presentation may include certain “forward-looking statements” within the meaning of the United States Private Litigation

Reform Act of 1995 and applicable Canadian Securities Laws. All statements other than statements of historical fact, included in the

presentation, including without limitation, statements regarding potential mineralization and reserves, exploration results, and future

plans and objectives of Search Minerals, are forward-looking statements. Words such as “expect”, “anticipate”, “estimate”, “may”,

“will”, “should”, “intend”, “believe” and other similar expressions are forward-looking statements. Forward-looking statements are

not guarantees of future results and conditions but rather reflect our current views with respect to future events and are subject to

risks, uncertainties, assumption and other factors, and actual results and future events could differ materially from those anticipated in

such statements. There can be no assurance that such forward-looking statements will prove to be accurate. We base our forward-

looking statements on information currently available to us and we do not assume any obligation to update them, except as required

by law.

An additional Cautionary Note to Investors: In the event that we use certain terms in this presentation such as “resource”,

“measured resource”, “indicated resource” and “inferred resource,” US investors are cautioned that, while such terms are

recognized and required by Canadian Securities Laws, the United States Securities and Exchange Commission does not recognize

them. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the

mineralization could be economically and legally produced or extracted at the time the reserve determination has been made. U.S.

investors should not assume that all or any part of measured or indicated resources will ever be converted into reserves. In addition,

“inferred resources” have a greater amount of uncertainly as to their existence and as to whether they can be mined legally or

economically. Accordingly, information concerning descriptions of mineralization in the presentation may not be comparable to

information made public by companies that are subject to the SEC’s Industry Guide 7.

All of the scientific and technical information contained herein has been reviewed and/or prepared by either Dr. Randy Miller, P.Geo.

or Dr. David Dreisinger, both being a “Qualified Person” within the meaning of National Instrument 43-101-Standards of Disclosure

for Minerals Projects. For further details of the Company’s procedures and policies for data verification, the reader is referred to the

Company’s news releases and other material information available on the Company’s website at www.searchminerals.ca or on

SEDAR at www.sedar.com

http://www.searchminerals.ca/

http://www.sedar.com

SMY: TSX-V


Presentation Overview

▪ Corporate Summary

▪ About Rare Earths

▪ Our Assets

▪ Overview of the Foxtrot Project

▪ Our Proprietary Metallurgical Process

▪ Go Forward Business Strategy

▪ 2017 Exploration Program Goals

SMY: TSX-V


About Search Minerals Inc.

▪ Focused on finding and developing resources within the emerging Port Hope

Simpson Critical Rare Earth Element (CREE) District of SE Labrador.

▪ Primary objective is advancement of the Foxtrot Project on which a

Preliminary Economic Assessment (PEA) was completed in April 2016.

▪ In February 2017, pilot plant testing clearly demonstrated the ability to

produce a high purity mixed rare earth oxide (REO) concentrate from over

three tonnes of Foxtrot material.

▪ Next logical steps include seeking out value-added partners and continuing

to delineate prospects that will ensure competitive low-cost production well

beyond the 14-year mine life contemplated in the PEA.

▪ Search has strong working relationships with government partners at all

levels (including ACOA, RDC and NCC).

SMY: TSX-V


Corporate Summary

As at March 15, 2017

Listing TSX-V: SMY

Head Office Vancouver, British Columbia

Shares Outstanding 146,222,190

Warrants 28,786,977

Options 9,065,000

Fully Diluted 184,074,167

Share Price Range $0.05 - $0.10

Market Capitalization $ 12,428,886

Bank Royal Bank of Canada

Auditors Mao Ying LLP

SMY: TSX-V


The Opportunity (presented in $CDN)

▪ Control of a 70 km x 8 km Critical Rare Earth Element District

▪ Preliminary Economic Assessment on Foxtrot Deposit▪ Low Initial Capital Cost $152M (including $33M contingency)

▪ After-Tax Payback Period – 4.4 years

▪ Foxtrot is one of Three Significant Discoveries in the District▪ 20 additional showings to assess

▪ Breakthrough Hydrometallurgical Process (US Patent Pending)▪ $1.9M pilot plant project successfully completed in February 2017

▪ provides significant capital and operational cost savings

▪ the resulting dry stackable residue is more environmentally friendly

▪ Experienced Management, Board and Technical Teams

▪ Mining Friendly Jurisdiction - Supportive Aboriginal and Local Communities

SMY: TSX-V


History Exploring for Rare Earth Elements in Labrador since 2009

SMY: TSX-V


About Rare Earth Elements (REEs)

Rare Earth Elements are Transformational

In small amounts REEs have huge impact on the properties of the other

materials they are blended with.

▪ radically improve the strength and heat resistance of metals and silicon

▪ can make magnets 40 times stronger

▪ are used in glass to filter out harmful light frequencies

▪ impact color brightness of TVs and computer monitors

▪ are used in catalytic converters to reduce greenhouse gas emissions

These remarkable properties underpin industry’s ability to miniaturize a wide

range of industrial technologies and consumer electronics. Certain REEs are

critical to the development of permanent magnets and a variety of other

components used in renewable energy, green technology automobiles,

defense systems and medical devices.

SMY: TSX-V


REEs: Critical for the 21st Century

Green Energy

• Hybrid and Electric Vehicles

• Wind Energy

• Energy Efficient Lighting

Military and Defense

• Communications

• Aeronautical engineering and Jet Engines

• Guidance, Lasers, Sonar, Optics, and Electronic Counter Measures

Modern Technologies

• Cell Phones and Digital Cameras

• LCD and Plasma Televisions

• MRI machines, X-Ray, and PET Medical imaging

The Toyota Prius is estimated to contain:

1 kg Neodymium Metal15 kg Lanthanum Metal0.1 kg Dysprosium Metal

Sales exceed 1 million units per annum

Each F35 fighter aircraft requires 417 kg of REEs Each US nuclear submarine requires about 4,000 kg of REEs

SMY: TSX-V


REEs: Electric Vehicle Market Only

http://www.ev-volumes.com/country/total-world-plug-in-vehicle-volumes/

• Worldwide plug-in vehicle sales in

2016 were 773,600 units, 42%

higher than for 2015.

• While sales grew 20 times faster

than the overall market, they still

only captured a world market share

of just 0.86%.

• Plug-in volumes have more than

tripled since 2013. Continuing on

last year’s growth rate of 42% would

mean 8 out of 10 cars sold being

Plug-ins in 2030.

http://www.ev-volumes.com/country/total-world-plug-in-vehicle-volumes/

SMY: TSX-V


About REEs

Ryan Castilloux - Industry Analyst, Adamas Intelligence

“After lengthy period of adjustment, the rare earth market is poised to boom again.”

“Government-led initiatives will fuel over 50% of new demand growth through 2025”

“New critical rare earth elements or ‘Neo-CREOs’ will lead the way.”

Source: Adamas Intelligence Dec 2016

SMY: TSX-V


“We consider neodymium (Nd), praseodymium (Pr) and dysprosium (Dy) to be neo-

CREOs because of high probability they will be in short supply by 2025, and they are vital

to the NdFeB magnets used widely in renewable power generation, electric mobility and

energy efficient technologies.

We consider terbium (Tb) to be a neo-CREO because upon experiencing shortages of

dysprosium, as we project in all three scenarios herein, consumers in the magnet industry

will rapidly consume available terbium supplies in its place . . .

Lastly we consider lanthanum (La) to be a neo-CREO because there is a high probability it

will be in short supply by 2025 . . .”

Adamas Intelligence, December 2016

Adamas also projects that by 2021 these five neo-CREOs will comprise 95% of the

relative value of the global market for REEs.

neo-CREOs are well represented in the Foxtrot mix of REEs

Neo-CREOs Total Nd Pr Dy Tb La

41.2% 15.9% 4.4% 1.9% 0.3% 18.7%

About REEs

SMY: TSX-V


Market Dynamics

▪ China produces 90% and consumes 60% of the world’s REEs.

▪ China has the majority of Rare Earth Oxide (REO) refining capacity.

▪ China’s economic strategy is to leverage its REE market dominance

by offering price incentives for manufacturers to relocate there.

▪ This strategy has raised geopolitical concerns about domestic

availability and strategic supply of REEs.

“China is likely to become a net importer of certain rare earths by 2025”

Adamas Intelligence - December 2016 Report

SMY: TSX-V


Our Assets - District Scale Opportunity

▪ Search controls a 70 km x 8 km CREE District at tidewater

Key Points

Over 20 prospects so far.

Three major discoveries

• Foxtrot Deposit

• Deep Fox

• Fox Meadows (2016)

Excellent geological and

geophysical control.

April 2016 PEA is based on

the Foxtrot deposit only.

SMY: TSX-V


Our Assets – Foxtrot Deposit

The Foxtrot Deposit lies within the Fox Harbour Volcanic

belt. Delineated by over 70 drill holes, geological mapping

and geophysics, the context of the mineralized zones is

well understood.

The accessible location with high

grade zones containing economically

significant quantities of CREEs

triggered the decision to move forward

with the Preliminary Economic

Assessment which was updated in

April 2016

St. Lewis

SMY: TSX-V


▪ Mine would have a 14-year lifespan consisting of 8 years open pit and 6 years

underground producing at 1,000 tpd.

▪ Revenue estimates are dominated by Nd (39%), Dy (29%), Pr (14%) and Tb (8%), all

elements that are projected to remain in supply deficit.

Our Assets Foxtrot NI 43-101 - Preliminary Economic Assessment

CLASSIFICATIONCut-off$NSR

TONNAGE (TONNES)

Dy (ppm)

Dy2O3

(ppm)Nd

(ppm)Nd2O3

(ppm)Pr

(ppm)Pr6O11

(ppm)LREE

% LREO

%HREE

%HREO

%TREE

%TRE0

%

OPEN PIT

INDICATED $165 4,129,000 177 203 1,393 1,625 372 449 0.69 0.83 0.17 0.2 0.86 1.03

*INFERRED $165 228,000 179 206 1,378 1,607 368 445 0.68 0.82 0.17 0.2 0.85 1.02

UNDERGROUND

INDICATED $260 3,263,000 209 240 1,602 1,868 429 518 0.78 0.94 0.19 0.23 0.97 1.17

*INFERRED $260 1,730,000 201 231 1,602 1,868 430 520 0.8 0.96 0.19 0.23 0.99 1.19

TOTAL INDICATED

7,392,000 191 219 1,485 1,732 397 480 0.73 0.88 0.18 0.21 0.91 1.09

*TOTAL INFERRED

1,958,000 199 228 1,576 1,838 423 511 0.79 0.94 0.18 0.22 0.97 1.17

RPA, 2016: Search Minerals Inc. Technical report on the Foxtrot Project in Labrador, Newfoundland and Labrador Canada. NI 43-101 Report prepared by Masun,

K.M., Weir, I.C. and Goode, J.R. April 1, 2016 (filed on SEDAR May 2, 2016).

*Cautionary Note: The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative

geologically to have the economic considerations applied to them to enable them to be categorized as mineral reserves and there is no certainty that

the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have a demonstrated economic viability.

SMY: TSX-V


Our Assets

Foxtrot Deposit

FOXTROT PEA FINANCIALS ($CDN)

Plant Capacity 1,000 tpd production rate / $4.8

Pre-Tax NPV10% and IRR $93 million and 22%

After-Tax NPV10% and IRR $48 million and 16.7%

Payback Period Pre-tax 3.5 years , After- tax 4.4 years

Gross Revenue LOM $1.7 Billion

Facility Operating Cost $238 per tonne

CAPEX $152 million for startup with a $33M contingency

$57 million for underground-funded from operations

$23 million for mine closure funded from operations

Cautionary Note: The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative

geologically to have the economic considerations applied to them to enable them to be categorized as mineral reserves and there is no certainty that

the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have a demonstrated economic viability.

SMY: TSX-V


Our Assets - Deep Fox Discovery

▪ Similar surface strike lengths as Foxtrot

▪ Zone widths are as wide or wider (up to 30m) than at Foxtrot

▪ Mineralized channel sample assays are 15% higher than at Foxtrot

Excellent location:

▪ 12 km from Foxtrot

▪ 2 km from St. Lewis deep

water port and road network

▪ Plans to drill Deep Fox in

Fiscal 2017

SMY: TSX-V


Our Assets - Foxtrot vs Deep Fox

Cautionary Note: The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are

considered too speculative geologically to have the economic considerations applied to them to enable them to be categorized as

mineral reserves and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are

not mineral reserves do not have a demonstrated economic viability.

SMY: TSX-V


Our Assets - Fox Meadows Discovery

▪ 11 km west of Port Hope Simpson

▪ Similar surface strike lengths as Foxtrot

▪ At least 30m wide and 500 m long

▪ Exists in a treed and till covered area; more

difficult to establish width.

▪ Mineralized channel sample assays are

on par with Foxtrot

• Plans for more extensive sampling and

mapping in 2017

A breakthrough in simplicity, cost and efficiency!

SMY: TSX-V


The Pilot Plant Testing a Great Success

▪ Processed over 3.0 tonnes of material

representative of the Foxtrot Deposit.

▪ Clearly demonstrated the ability to produce a

high purity mixed rare earth oxide (REO)

concentrate.

▪ Average extractions of 85% neodymium (Nd),

86% praseodymium (Pr), 68% dysprosium (Dy),

71% terbium (b) and 86% lanthanum (La)

▪ Successfully demonstrated the ability to bring

uranium, thorium, zinc, and iron levels below

levels expected by refineries.

SMY: TSX-V


The Direct Extraction Process

Acid bake discharge from kiln

▪ Material is crushed to 3.45 mm and treated

with relatively small amounts of sulphuric

acid at 180°C (low temperature)

to render the REEs water soluble.

▪ After water leaching, the rare earth solution

is purified by neutralizing the remaining acid.

The REEs are then precipitated into a

concentrate using sodium carbonate.

▪ The rare earth carbonate is re-dissolved in

hydrochloric acid to reject remaining impurities

and then REEs are precipitated again.

▪ The rare earth precipitate is calcined (heated) to

produce a high grade mixed rare earth oxide.

SMY: TSX-V


The Direct Extraction ProcessCost and Competitive Advantages

Search Board and Team Members

Visit Pilot Plant at SGS LaboratoriesFebruary 2017

Screw feeder adding material /acid to kiln

Rare Earth carbonate concentrate ready for

Secondary Chemical treatment

SMY: TSX-V


Foxtrot Material at Different Processing Stages

Vial #1 - Finely crushed material at start of process.

Vial #2 - Orangey stained “dry stackable” residue containing an iron precipitate

Vial #3 - 35% mixed rare earth carbonate precipitate after uranium ion exchange

Vial #4 - 60% zinc sulfide precipitate after removal thorium, iron, aluminum and silica

Vial #5 - High purity rare earth oxalate

Vial #6 – Reddish final rare earth oxide made by heating the high purity oxalate

SMY: TSX-V


Business Strategy

Through Joint Ventures and Strategic

Partnerships, Search will bring additional

expertise to maximize production, sales cycles

and return to shareholders.

▪ Search Minerals – will continue to develop the District and manage processing

facility and open pit operations when construction decision is made.

▪ Strategic Partner / Joint Venture Partner – Funding the Bankable Feasibility Study

needed to support a decision to build a Mine and Processing Facility.

▪ Off-Take Partner – Supports financing by providing a purchase agreement for the

individual Rare Earth Oxides or Rare Earth Elements produced.

Search Minerals

Strategic JV Partner Off-take Partner

SMY: TSX-V


Business Strategy – Timeline

SMY: TSX-V


Proposed Mine and Mill Snapshot

SMY: TSX-V


Proposed Mine and Mill Snapshot

KEY FEATURES

Assay Laboratory on site

Power Supply upgrades

needed to increase capacity in

St. Lewis.

Water use will be optimized

by maximizing the amount re-

used for processing. Use fresh

water only when necessary.

Roads 500m from Highway

513 access to St. Lewis – no

significant upgrades required

Dry Residue Pad will help to

minimize environmental

impacts

SMY: TSX-V


2017 Exploration Program

▪ Drilling Program For Deep Fox Project

▪ Looking at a proposed 4,000 metre program

▪ We will add an additional geologist for this program

▪ Fox Meadow Discovery

▪ More extensive channel sampling program

▪ Trenching of overburden for sampling and mapping

▪ Detailed mapping

▪ Regional Work in Port Hope Simpson CREE District

▪ Systematic prospecting and exploration of the remaining twenty

showings with a focus on geophysical anomalies and stratigraphy

SMY: TSX-V


Management

Greg Andrews, President and Chief Executive Officer

B. Commerce, Finance - University of Calgary. Extensive experience in strategicplanning, budgeting, implementation and administration.

Dr. Randy Miller, Vice President Exploration

Ph.D. Geology - University of Toronto. REE Specialist; 5 years work on the StrangeLake Property in Labrador with IOC and 12 years as REE specialist with NL Geological Survey.

Dr. David Dreisinger, Director & Vice President Metallurgy

Professor and Industrial Research Chair in Hydrometallurgy -University of British Columbia; Over 250 publications; internationally respected process consultant in industrial research programs with metallurgical companies ; a Director of Polymet Mining Corp. and Officer of Trimetals Mining Inc.

Matthew Anderson, Chief Financial OfficerB. Commerce - McGill University; obtained his CA designation in 2008; current CFOof i-Minerals Inc.

Barry Girling, Corporate SecretaryB. Commerce, Finance from UBC; Providing various consulting services to public companies for over 20 years, primarily in corporate finance and management.

SMY: TSX-V


Board of Directors

Jim Clucas, Executive Chairman, DirectorFormer CFO of Inco Canada and founder of International Nickel Ventures Inc.; Instrumental in development of several mineral deposits; a Director of INV Metals and North American Nickel.

Dr. Jim Patterson, DirectorPh.D. geologist; independent economic and exploration geology consultant; 40 years experience in planning and executing all phases of mineral exploration; instrumental in establishing a number of mining companies, including FNX Mining.

Raymond Saunders, DirectorEntrepreneur with over 30 years of experience in Eastern Canada; acquired, managed and consolidated several transportation companies in NL; President

and major shareholder of several private companies.

Dr. David Dreisinger, Director – see Management

Roberto Giannetti da Fonseca, DirectorFormer Brazilian Secretary of Foreign Trade; CEO of Kaduna Consulting group, advisor to 50+ Brazilian multinationals; Executive Director, International Affairs & Foreign Trade (FIESP), a São Paulo industrial association. Founder and ex-Chairman of Cotia Trading S.A, which became the largest foreign trade company in Brazil.

Leo Power, DirectorBusiness owner and Investor. Graduate of the Kellogg-Schulich Joint MBA program at York University, Toronto and Northwestern University, Evanston, Illinois. Masters in Oil and Gas Studies from Memorial University of Newfoundland and Labrador. Executive Chairman - Barite Mud Services Inc.; CEO and Director- Ptarmigan Energy Inc.; Director - Canada Fluorspar Inc.; Board Member - Institute of Corporate Directors, Newfoundland and Labrador Chapter; Board Member - Atlantic Cabinet, Nature Conservancy of Canada; Newfoundland and Labrador Vice Chair - Atlantic Institute of Market Studies (AIMS).

SMY: TSX-V


Thank you!

Thank You!

Date post:	23-Jul-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

SMY: TSX-VAdamas also projects that by 2021 these five neo-CREOs will comprise 95% of the relative...

Documents