Niblack Project Poised For Development

Transcription

1 Niblack Project Poised For Development AIDEA Board of Directors Meeting 38% 30% 22% 9% July 31, 2014

2 Forward-Looking Statements Except for statements of historical fact, this presentation contains certain forward-looking information within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as plan, project ; intend, believe, anticipate, estimate and other similar words, or statements that certain events or conditions may or will occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Assumptions used by the Company to develop forward-looking statements include the following: the Niblack project will obtain all required environmental and other permits and all land use and other licenses, studies and exploration of the Niblack project will continue to be positive, and no geological or technical problems will occur. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of mineralization and resources, mining rates recovery rates and the lack of availability of necessary capital, which may not be available to the Corporation on terms acceptable to it or at all, changes in and the effect of government policies with respect to mineral exploration and exploitation, uncertainties related to the ability to obtain necessary permits, licenses and title, and delays due to third party opposition, delays in exploration and development projects and the possibility of adverse developments in the financial markets generally. The Corporation is also subject to the specific risks inherent in the mining business as well as general economic and business conditions. The Corporation undertakes no obligation to update forward-looking information if circumstances or management s estimates should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents that may be filed from time to time with the Canadian securities regulatory authorities by the Corporation. Information Concerning Estimates of Indicated and Inferred Resources This presentation uses the terms Indicated resources and Inferred resources. Heatherdale Resources Ltd. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, Inferred resources have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. The securities of Heatherdale Resources Ltd. referenced herein have not been, and will not be, registered under the Securities Act of 1933, as amended, or under any state securities laws, and may not be offered or sold in the United States absent such registration or an exemption from registration.

3 Niblack Excellent Location and Infrastructure

4 Niblack Poised for Development Security of tenure in a safe jurisdiction supportive of responsible resource development Well delineated resource with good internal continuity providing production optionality Clearly defined resource expansion opportunities Unique, low cost development opportunity Unanimous approval by 2014 Alaska legislature for AIDEA to provide up to $125 million in financing for Niblack Project infrastructure Excellent metal recoveries, premium concentrate grades, and very low deleterious elements Agreement signed with Ketchikan Gateway Borough to investigate suitability of Gravina Island Industrial Complex for ore processing plant providing access Ketchikan s low cost-hydro power and skilled labor force Tidewater location for low cost concentrate delivery to the Pacific Rim

5 Niblack High Grade Resource in Great Position US$50/t NSR Indicated Resources Million Tonnes Cu % Au g/t Zn % Ag g/t Total US$50/t NSR Million Tonnes Inferred Resources Cu % Au g/t Zn % Ag g/t Total OPEN US$150/t NSR High Grade Indicated Resource Tonnes Cu % Au g/t Zn % Ag g/t Total 1,160, OPEN OPEN OPEN OPEN Note 1: Net Smelter Return (NSR) cutoff uses long-term metal forecasts: gold US$1,150/oz, silver US$20.00/oz, copper US$2.50/lb, and zinc US$1.00/lb; Recoveries (used for all NSR calculations) to Cu concentrate of 95% Cu, 56% Au and 53% Ag with payable metal factors of 96.5% for Cu, 90.7% for Au, and 89.5% for Ag; to Zn concentrate of 93% Zn, 16% Au, and 24% Ag with payable metal factors of 85% for Zn, 80% for Au and 20% for Ag. Detailed engineering studies will determine the best cutoff. Note 2: November 2011 estimates by Deon Van Der Heever, Pr. Sci. Nat., Hunter Dickinson Inc., a Qualified Person who is not independent of the Company.

6 Niblack Potential Mining and Processing Facilities Underground Mine Tons Per Day 1 Small Footprint +10 year mine life 2 Mining by long hole stoping Primary crush and barge to processing site Processing Site (near Ketchikan) Brownfield Industrial site MOU with Ketchikan Gateway Borough Energy infrastructure and capacity Existing service and supplies infrastructure Clean energy and local workforce Simple metallurgical flow sheet crush grind float Investigating value of pyrite concentrate Deep draft port for Shipping of Concentrate Interior of the Kensington mill with the grinding units in the foreground. July Based on comparisons with operations of similar deposit type. 2 Based on current mineral resources.

7 Niblack - Comparative Analysis - Underground Mining Employment = Approximately 130 Jumbo & LH Drill Operators Scoop Operators Truck Drivers Blasters General Labourers Backfill Operators Mechanics and Welders Electricians Mine Superintendents Mine Shift Supervisors Maintenance Shift Supervisors Maint. & Elect. Foremen Mining Engineers Geologists Floating Camp capacity = 70 people

8 Niblack Excellent Metallurgical Results Copper concentrate (29 30% Cu) 94-95% copper 56-62% gold 53-61% silver Zinc concentrate (60 65% Zn) 90-93% zinc 10-16% gold 16-24% silver Medium to coarse grained for easier processing and recoveries Very desirable clean concentrates Simple Milling: Crush, Grind, and Float Testwork conducted for Niblack Mineral Development Inc. by SGS Canada Met Lab based on two 75 kg samples.

9 Niblack Off Site Milling Options

10 Niblack Direct Shipping to Gravina Island Example of Barge Transport Ketchikan and Gravina Site Gravina Island Industrial Complex Gravina Island Industrial Complex

11 Niblack - Comparative Analysis Mill Site Pogo Mill Interior of the Kensington mill with the grinding units in the foreground. July 2007 Workforce = Approximately 65 Process Superintendents Plant foremen Metallurgists Shift foremen Chemists Dozer/crusher operators Control room technicians Floatation operators Grinding operators Helpers Assayer technicians Laboratory technicians Mechanics Electricians Construction Period 18 months = 200

12 Niblack Projected Timeline to Production H1 H2 H1 H2 H1 H2 H1 H2 Exploration Exploration & Resource Definition Engineering Mine & Mill Planning PFS / FS Environmental Baseline Studies Monitoring Permitting Process Mine & Mill Permitting Workforce Recruitment & Training Project Approval Construction Public Involvement

13 Plans Going Forward Be Prudent Niblack Project Explore investment opportunities to take Niblack Project Forward to Pre-feasibility and Ultimately into Permitting and Construction Collaborate with the Ketchikan Gateway Borough (KGB) as part of the MOU to investigate the suitability of the Gravina Island Industrial Complex for the Niblack Processing Plant Collaborate with AIDEA on financing options and opportunities as part of the MOU and SB99 Continue Stakeholder Engagement Activities Comply with permitting requirements Continue Environmental base line data collection

14 GIIC Land Status

15 Niblack Mine Site Infrastructure Accessible Deep Water Port

16 GIIC Mill Site Initial Due Diligence Completed preliminary site reconnaissance & hazard/liability inspection by engineering/environmental team Reviewed existing environmental data/conditions, permits, & status of closure activities Assessed ancillary facilities (tailings, power, road access) Analyzed & mapped potential dry/wet tailings storage sites Completed draft mill/tailings site risk assessment matrix Planning underway to identify costs/time lines associated with identified risks & future program

17 Dock and associated infrastructure

18 Greens Creek Infrastructure

19 Niblack - Metal and Concentrate Production Recovery Case 1000 Metal Production (annual) Case 2000 Metal Production (annual) NSR Revenue (%) Cu 95% 7,500,000 lbs 10,500,000 lbs 39% Zn 93% 14,000,000 lbs 18,300,000 lbs 23% Au 65% 15,900 oz 18,500 oz 30% Ag 65% 271,250 oz 312,200 oz 8% Copper Concentrate Grade 30% Cu 30g Au 503g Ag Case 1000 Concentrate Production (annual) Case 2000 Concentrate Production (LOM) 12-14,000 tons 18-20,000 tons Zinc 60% Zn 11-13,000 tons 14-16,000 tons Note: Metal Price: Zn = $1.00/lb; Ag = $22.00/troy oz; Cu = $3.00/lb; Au = $1,300/troy oz

20 GIIC Log Transfer Facility - ADF

21 Niblack 3D Conceptual Mill Layout

22 Niblack Mill Layout scaled to existing site

23 Niblack Tailing Storage Facility

24 Millsite Major Permits Water and Fish National pollutant discharge elimination system (NPDES) ADEC Solid waste management permit ADEC Storm water construction and operation EPA Non-domestic wastewater disposal permit ADEC Temporary water use permit USFS Fish habitat permit ADFG Various wildlife and bird protection permits USFWS and NMFS Section 10 construction in or over navigable waters USCOE. Wetlands Section 404 permit USCOE Section 401 ADEC. Land Use Upland mining lease, tideland lease, rights of-way, etc., USFS. Cultural Resources Protection Section 106 historical and cultural resources protection EPA/COE/ADNR. Air Air quality permit ADEC (depends on source of power and potential dust).

25 GIIC Due Diligence and Baseline Data Collection Mill Site Port Water Quality Sampling Surface Water Flow Ground water quality Marine Studies Terrestrial Studies Tailings Facility Surface water and hydrology Groundwater quality Aquatic Studies Wetland mapping Habitat mapping Access Road Stream crossing hydrology and habitat Wetland mapping Habitat mapping Fisheries

26 Government and Community Outreach