A HIGH-GRADE, ADVANCED-STAGE COBALT PROJECT IN CANADA
TELEDYNE COBALT PROJECT
TSX.V: LiC OTCQB: WCTXF FRA: 43W1
A Lithium and Cobalt Exploration Company
CAUTIONARY NOTES
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The information contained in this presentation 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 LiCo Energy 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 reviewed this information and no representation or warranty is made by LiCo Energy Metals. To that effect, LiCo Energy Metals is not responsible for the content of sites that can be reached through links on this site. 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 LiCo Energy Metals 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.
LiCo Energy Metals does not make any representations, warranties or guarantees, express or implied, regarding the accuracy, completeness, timeliness, non-infringement, or merchantability or fitness for a particular purpose or use of any information contained in this presentation or of any information available on web sites that are accessible by links found on this site. 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 LiCo Energy Metals 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 available in this presentation, the links to other sites contained in this presentation nor any information available on such sites.
The Information in this presentation have been reviewed and approved by Joerg M. Kleinboeck, P. Geo, an independent qualified person in accordance with National Instrument 43-101.
TELEDYNE COBALT PROJECT SUMMARY
100% option, 2% net smelter royalty with Palisade Resources
$25 million (inflation-adjusted) of completed work and infrastructure, including a modern adit to a depth of 500 feet, parallel to vein
Directly on-strike with Cobalt Camp’s most prolific past producing cobalt mine – the Agaunico Mine
Substantial land package covering over 550 hectares
Clear growth path from 100,000 to 500,000 tonnes of ore and beyond through further drilling and consolidation
Cobalt is an integral component in electric vehicle batteries – a fact that is largely unrealized by the market at present
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TELEDYNE PHASE ONE EPLORATION PROGRAM
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On December 7, 2016, LiCo Energy Metals reported that it has
commenced a Phase One exploration program on the Teledyne
Property. Line cutting is underway on patented claims 372 and 229
and once completed, a geophysical survey is planned to start shortly
thereafter. The geophysical survey will cover the Teledyne prospect,
and cover areas that have had little to no exploration work to further
identify prospective mineralized targets to depths of up to a potential
300m or greater. This work, along with the historical data that is
currently being compiled, will be evaluated in advance of a diamond
drill program planned to commence in Q1 of 2017.
Tesla alone is forecasted to increase production from 25,000 vehicles to 500,000 by 2020
The US EV market is projected to grow from ~116,000 vehicles to 750,000+ by 2020
IEA Global EV forecasts that the number of EVs on the road will increase from 450,000 today to 6 million by 2020
Bloomberg New Energy Finance forecasts 35% of vehicles sold in 2040 will be EV
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THE CASE FOR COBALT
To date, lithium has garnered most of the attention in the sector; however, cobalt has virtually zero primary production and is an integral part of the
lithium battery and electric vehicle story
ELECTRIC VEHICLES (EV) ARE NOW ECONOMICALLY VIABLE
TSX.V: LiC OTCQB: WCTXF FRA: 43W1
In 2015, only 123,000 tons were mined globally with total refined production at ~93,000 tons
96% of global production comes from copper and nickel by-product
• 50% of total production coming from the Democratic Republic of the Congo
• Over two-thirds of worldwide production originates in Africa, China, and Russia
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COBALT SUPPLY: SMALL, BY-PRODUCT, TIGHTLY-HELD
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The key takeaways to recognize are the lack of primary cobalt production globally and the reliance on geopolitically risky jurisdictions for supply
• Major copper and nickel producers have suspended operations at multiple copper/cobalt mines
• Glencore’s DRC mines removed 3,000 tons from the market upon their closure in Q4/15
TSX.V: LiC OTCQB: WCTXF FRA: 43W1
Cobalt supply is largely derived from copper and nickel production as a by-product
96% of the world’s cobalt is produced as by-product
Low copper and nickel prices have mothballed many mines, creating a major catalyst for new cobalt developments
• Glencore’s Katanga, now on care and maintenance, this provided enough cobalt to supply half the Gigafactory’s cobalt demand
Demand is driven most importantly by electric vehicle demand
• There are approximately 500,000 EVs on the road currently, with forecasts that that number will reach 5 million by 2020; this offers massive upside for the cobalt market.
Supply deficit in Cobalt in 2007-2008 led to a price spike from $15/lb to over $50/lb
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SUPPLY/DEMAND DYNAMICS
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One of the most prolific silver mining areas in the world
Deposits in the area occur along the northern and eastern margins of the Southern Province, called the Cobalt Embayment
Three major regional scale fault trends occur within the area
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Source: David K. Joyce Minerals
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THE COBALT-GOWGANDA SILVER MINING AREA
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COBALT MINING CAMP
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Historic Mining Camp dating back to 1903
One of the world’s largest silver camps in the early 20th century
Estimated 18,000,000 kg of silver and 14,000,000 kg of cobalt produced there historically
425 km north of Toronto, along the Trans-Canada Highway and Ontario Northland Railway’s main line
Mining friendly community with a skilled workforce; mining and exploration services available locally
TSX.V: LiC OTCQB: WCTXF FRA: 43W1
Consists of 5 patented mining claims and 6 staked Crown claims in the Bucke and Lorrain Townships in the District of Temiskaming, Northeastern Ontario
Project covers 115.5 hectares of patented mining and surface rights and 439.1 hectares of staked Crown claims
Accessible by highway and well maintained secondary road; 6 km from downtown Cobalt
Cobalt ore custom milling within 2 km of the Teledyne Ramp
Teledyne Mine is at an advanced stage of exploration and development; production can be reached at an accelerated pace
Outside Of The Teledyne Portal
TELEDYNE COBALT PROPERTY
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Previous owner, Teledyne Canada Ltd., completed a diamond drilling program consisting of 6 surface drill holes
• Uncovered an estimated 40,000-60,000 tons of cobalt mineralization at an average grade of 0.45% cobalt, over a strike length of at least 950 feet
Initial program supported a development ramp of 2,300 feet to reach the delineated orezone
• The present face of the ramp is 70 feet east of the orezone
Another 22 diamond drill holes were drilled from underground to confirm previous surface drilling
• Drilling identified secondary mineralized area of 450 feet
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Teledyne Ramp Entrance
TELEDYNE COBALT-SILVER PROPERTY
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Watts Griffis McQuat prepared a pre NI 43-101 resource estimate of 100,000 tonnes at 0.45% cobalt, 0.25% nickel and 3 oz/t silver
• Open along strike
• Investment to date at Teledyne of $8.3 million; adjusted for inflation that equates to roughly $25.0 million
In the immediate area, there are a number of other known vein structures but with much less development
• Can be accessed from the Teledyne development ramp
• An adjacent vein complex is known to contain 70,000 tonnes of similar ore
• More than four other properties, some with significant underground development are held in friendly hands
• These properties have the potential to expand resource significantly
• The structural complexity of the main geologic features imply many possibilities for “hidden” ore bodies. These would be expected to be found in outlying areas, largely unexplored to date, as well as in areas adjacent to existing mines
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TELEDYNE COBALT/SILVER PROPERTY – RESOURCE & UPSIDE
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6 surface drill holes (1979) and 22 underground diamond drill holes (1980)
4 of the 6 surface drill holes intersected ore grade cobalt (>0.10% Co); Individual Co grades to 10.6% and Ag to 2.36 oz/ton
Additionally, 18 of the 22 underground drill holes intersected ore grade cobalt (>0.10% Co); Individual Co grades to 10.2% and Ag to 4.21 oz/ton
Average grade / core width from the 22 holes = 0.57% Co / 1.6 metres core width
Drill program has confirmed the continuation of the high grade Agaunico Co ore zone onto the Teledyne property with a strike length of at least 150 metres on the Teledyne property
This zone remains open to the south with a further 650 metres of potential mineralized strike length on the Teledyne property; represents an excellent target for a future drilling campaign
Based on the 1979-80 drilling, probable and inferred reserves accessible from the current ramp are estimated to be in excess of a 100,000 tons at 0.45% Co (historic, pre 43-101)
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TELEDYNE DIAMOND DRILLING (1979-80)
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APPENDIX – ENTRANCE TO THE SHAFT
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www.LiCoEnergyMetals.com
@LiCoEnergyMetals
@LiCoEMetals
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CONTACT US
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