Hard Creek Nickel. Emerging Giant Turnagain Nickel Project. Ed Beswick P Eng. HNC:TSX

Transcription

1 Hard Creek Nickel Emerging Giant Turnagain Nickel Project Ed Beswick P Eng. HNC:TSX Minerals North Conference April 2010

2 Cautionary Statement The information contained in this presentation has been reviewed by Neil Froc, P.Eng. a Qualified Person. The Preliminary Assessment authored by Wardrop, a Tetra Tech Company in April 2010 includes the use of inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. The study is preliminary in nature and there is no assurance the mining, metal production or cash flow scenarios outlined in this report would ever be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. This presentation uses the terms measured, indicated and inferred resources. We advise U.S. investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories would ever be converted to reserves. This presentation contains forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company s plans to materially differ from any future results, performance or achievements expended or implied to such forward-looking statements. Known risks include, but are not limited to, financing risks, commodity price risks, scheduling risks and engineering risks. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made, and readers are advised to consider such forwardlooking statements in light of the risks set forth in the companies continuous disclosure filings as found at

3 Turnagain Location, British Columbia, Canada Politically Stable Jurisdiction Turnagain Project Vancouver.Prince George

4 SAFETY AND TRAINING

5 Potential Mineable Resource (WARDROP Preliminary Assessment - April 2010) Turnagain Potential Total Pit Resource PIT ORE Ni Co (tonnes) (%) (%) Payable Metal (lbs) Horsetrail & Northwest 597,608, Hatzl 163,619, Ni Co Total 761,227, ,883,000, ,000,000 Strip Ratio 0.74:1 Northwest Horsetrail Mine Life 24.4 yrs Hatzl

6 Study Assumptions and Facts (WARDROP Preliminary Assessment - April 2010) Nickel at $US 8.50 per lb Cobalt at $US per lb Canadian dollar = $US 0.90 Milling 87,000 tpd Construction schedule 24 months Ramp up 24 months Flotation Recovery 55.3% Ni / 49.8% Co Refining Recovery 95.6% Ni / 95.0% Co Average Payable Annually ~ 35,000 tonnes (77,000,000 lbs) Ni ~ 2,000 tonnes ( 4,400,000 lbs) Co

7 C1* - Operating Cost Estimate (WARDROP Preliminary Assessment - April 2010) Area US$/tonne Ore US$/lb Ni Mining Milling Refining Tailings Management Facility General and Administration Transportation/Insurance/Representation Total Cost $/lb Ni metal net of Cobalt credits 3.30 * The C1 operating cost is defined as the cash cost incurred at each processing stage, from mining through to recoverable nickel metal delivered to market, net of byproduct credits (cobalt).

8 C1 Cost of Projects > tonnes per year Ni Koniambo (60 kt/yr) Yakabindie (21 kt/yr) Barro Alto (36 kt/yr) Sulphide Turnagain (35 kt/yr) Santa Fe - Ipora (32 kt/yr) Laterite Onca Puma (51 kt/yr) Fenix (22 kt/yr) Kabanga (39.6 kt/yr) Las Camariocas (22 kt/yr) Ambatovy (60 kt/yr) Caldag (20 kt/yr) Mindoro (40 kt/yr) Vermelho (46 kt/yr) San Felipe (54 kt/yr) Gladstone (63 kt/yr) Halmahera (52 kt/yr) Dumont (51 kt/yr) Sheba Ridge (23 kt/yr) NiWest Laterite (30 kt/yr) Yerilla (21 kt/yr) Wowo Gap (19.5 kt/yr) Syerston (20 kt/yr) Wingellina (41 kt/yr) Kalgoorlie (46 kt/yr) $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 Source: Brook Hunt A Wood Mackenzie Company Average C1 Ni Cost US$/lb

9 Turnagain Capital Cost (WARDROP Preliminary Assessment - April 2010) Description US$ x1000 % Mine 202, % Process Plant 532, % Refinery 814, % Tailings Management Facility 39, % Site Infrastructure 201, % Off-Site Infrastructure 319, % Owner's Costs 78, % EPCM 178, % Indirect Costs 228, % Contingency 330, % Total 2,925, % Working capital of US$50.6 million and sustaining capital of US$628.2 million. Reclamation and closure costs are included in the financial model.

10 Sensitivity (WARDROP Preliminary Assessment - April 2010) Scenario NPV at Selected Commodity Price Discount Rates (Million $) IRR (%) Payback (Years) Nickel Cobalt 5% 8% 10% Base -10% $7.65 $ , Base $8.50 $ , Base +10% $9.35 $ ,908 1, Current (Mar ) $9.76 $ ,317 1,

11 Site Layout and Configuration (WARDROP Preliminary Assessment - April 2010)

12 Northwest Transmission Line Government owned power utility has budgeted for Winter 2012 completion of power grid to Bob Quinn in NW British Columbia Bob Quinn to Tatogga, Dease and Yukon.

13 Realistic Preliminary Assessment (WARDROP - April 2010) Off the shelf technology (Ball mills, SAG mills) Realistic goals: Standard reagents Simple circuit Predictable flotation recovery (55.3% Ni, 49.8% Co) Achievable concentrate grade: 4% Ni Realistic 24 month construction schedule and 24 month plant ramp-up to full production.

14 Hydrometallurgical (WARDROP - April 2010) - Leaching amenability test work has been done on two hydrometallurgical processes with Turnagain concentrate. - Activox is a sulphate based autoclave process which takes place below the melting point of sulphur on 10 micron feed. - Outotec process is a chloride based leach at atmospheric pressure followed by SX-EW. - Both processes extract 98% of the metal in leach tests and recover 95% of the metal in the flow sheet design. - Nickel produced as metal - Cobalt is separated and sold as a precipitate - Both processes will be further tested and compared in conjunction with mineral dressing work.

15 Project Potential - Further optimization of grinding, metallurgical recovery and concentrate production. - Increase revenues by recovering PGEs. - Optimize throughput and life of mine by expanding resource at depth and to the north.

16 Drill Hole Plan (79,368 m in total) PGM & Ni Potential * * PGM Potential OPEN (Additional Resource Potential) * PGM & Ni Potential

17 Jobs Mine 238 (peak) Mill 144 Refinery 227 Admin: 35 Total: 644 ~ 25 years Construction: ~ 1500 for two years

18 Hard Creek Nickel $3.30 /lb Ni Thank You HNC:TSX Ed Beswick P Eng. Minerals North Conference April 2010