KINGSVIEW IRON ORE LIMITED

Transcription

1 KINGSVIEW IRON ORE LIMITED Fenimore Iron Ore Project Fast Track to Production Ungava Bay, Quebec Corporate Overview October 2011

2 KINGSVIEW IRON ORE LTD. FAST TRACK TO PRODUCTION Kingsview Iron Ore Ltd. Iron Ore exploration and development company Acquired Fenimore Iron Project ( Fenimore ) in February 2011 Fenimore Iron Ore Project Labrador Trough banded iron formation, located in SW area of Ungava Bay, Quebec Land package of 1,126 claims totaling approximately 112,000 acres NI Technical Report completed by Roche Ltd. Consulting Group in July 2011 All Claims Close to Tidewater 125 M tonne + starter pit Substantial Exploration Upside North Finger Lake deposit is 18 km from tidewater Provides capex and opex savings, potential for modular plant, no rail required Six days sailing to major markets in Europe, year round shipping possible North Finger Lake deposit is exposed over a length of 3km with a width of 60m to 700m, average thickness of 18m North Finger Lake 125 million tonnes of ore grading 30% (not compliant), 200M+ tonne potential Finger Lake area has 400 million to 500 million tonne potential Over 3 km of ore bearing outcrops not fully explored in North Finger Lake area Numerous other exploration targets that are highly prospective Phase I exploration recently initiated in North Finger Lake area Historic Resource Historic resource of 500 million tonnes, an average grade of approximately 30% (Roche Ltd. Consulting Group) 150 million tonnes contained iron ore, magnetite, hematite and Taconite Plan Nord Government of Quebec sponsored plan to develop Quebec s territory north of the 49 th parallel $2B in infrastructure, $500 million equity investment by Investissement Quebec, creation of Fonds du Plan Nord RTO with 71 Capital Inc. LOI signed in May 2011, RTO expected to close February 2012 Value Creation $5M exploration & development program to prove up and expand historic resource Fast track to production Kingsview provides substantial exploration upside potential and near term production through the no strip starter pit (1)

3 KINGSVIEW IRON ORE LTD. Capitalization (June 30, 2011) Shares Outstanding: 41,432,000 Recent Share Price (Private): $0.25 Market Capitalization: $10.36M Cash (June 30, 2011): $2.06M Enterprise Value: $8.30M Enterprise Value/Tonne contained iron (historic resource): $0.055 Options/Warrants 2.5M Weighted Average Exercise Price $0.25 Shareholdings Management & directors 11,680,000 28% Pat Sheridan: 7,500,000 18% Peter Ferderber: 7,500,000 18% Institutional ownership: 6,660,000 16% Other: 8,092,000 20% Total 41,432, % In February, 2011 Kingsview acquired the Fenimore properties for 15M shares, advance royalties payment of $200,000 paid annually and a 2% NSR. Management, Directors & Key Shareholders Michael Opara, CEO, has been involved in the acquisition, financing, exploration and development of key mineral and oil and gas projects since He has extensive private and public company experience and is currently a director and President and CEO of a public company engaged in mineral exploration. He has a Bachelor of Commerce from the University of Toronto and a MBA from the Schulich School of Business, York University. William Quan, COO, has been involved in brokering, trading and financing of various commodities including minerals, wood products and apparel. He has extensive contacts and buyers in China. He attended Brock University in St Catharines. Peter Ferderber is a long time explorationist in the mining industry. Peter has been involved in numerous public and private companies as a founder or principal shareholder. Peter sold the original claims to the Iron Ore Company of Canada (IOCC) that formed their original big mine. IOCC is Canada s largest producer of iron ore. J. Patrick Sheridan is one Canada s foremost mining developers and investors. Pat has developed numerous projects to the mining stage in Canada and elsewhere and has extensive interests including shareholdings and royalty interests in major mining projects. He holds a PhD from the University of Toronto. Kingsview management and directors are significant shareholders (2)

4 FENIMORE IRON ORE PROJECT Fenimore Iron Ore Project Kingsview Property Locations Source: Adrianna Resources, Labrador Iron Mines Deposit Tonnes Iron Grade Drill Holes North Finger Lake 126.6M 29.3% 29 (1,272m) Deposit Tonnes Iron Grade Drill Holes Gossan Hill/Old Red Hill 163.9M 33.0% 44 (2,402m) Irony Lake 101.8M 30.0% 6 (140m) West Band/River Phoques 124.3M n.a./32.0% - Dragon L., Penninsule 11.9M 28.0% - Total (N. Finger Lake Area) 364.6M Total (N.F.L. & GH/ORH) 528.5M Source: Roche Ltd. Consulting Group Kingsview s properties have a historic resource of over 500M tonnes, grading approximately 30% (3)

5 FAST TRACK TO PRODUCTION STARTER PIT North Finger Lake Area North Finger Lake Area Proposed park boundary Proposed deepwater port 18 km Starter Pit North Finger Lake Lake Pappijusaq West Finger Lake South Finger Lake Almost continuous exposure of the iron formation over a length of over 3 km (1) Exposed width of 61m to 700m (1) Average thickness of ~18m (1) Road access from Tasiujaq Technical & economic study prepared in 1956 Fenimore received two purchase orders totaling 1.4M tons per year (Klockner & British Iron) (2) Starter Pit First 40M + tonnes will require low/no stripping Close to tidewater, potential year round shipping 200M + tonne resource potential, 30% Fe 20 year mine life, 5M tonnes concentrate per annum Potential modular plant construction to reduce capex No rail required Preliminary NPV(10%) of $927M (3) Capex of $700M - $800M Production of concentrate Cash operating costs of $28 per tonne of concentrate Shipping price - Rotterdam $15/tonne, China $36/tonne (4) Long term iron ore concentrate price estimates range from $120 to $160 CFR per tonne Vale estimates $150 per tonne for the next 5 years (1) Source: Roche Ltd. Consulting Group (2) Harry Kirmond Construction Consultant, 1956 (3) NPV(10%) based on $750M capex, $ long-term iron ore price, CFR Rotterdam (4) Amec & Fednav - Group Starter pit provides near term production opportunity with no/low strip ratio (4)

6 FAST TRACK TO PRODUCTION MODULAR PLANT Raglan Nickel Mine Project, Nunavik, Quebec Shipping Route Shipping the Modules Construction of Plant (1) Transport to Mine Site Transport to Mine Site Source: Kingsview Source: Kingsview Modular plants reduces costs and facilitates plant construction in harsh environments Source: ALE (5)

7 NORTH FINGER LAKE TYPICAL CROSS SECTION North Finger Lake Section 87 Source: BCS, 2007 Cross section demonstrates the substantial amount of ore outcropping at surface (6)

8 FENIMORE IRON ORE North Finger Lake Outcrop North Finger Lake Outcrop (1) Source: Kingsview Source: Kingsview Iron Outcrop near Lake Monnet Hem/Mag/Tac Cliff at Lake Irony Taconite Beds at Fireweed Deposit Source: Roche Ltd. Consulting Group Source: Roche Ltd. Consulting Group Source: Roche Ltd. Consulting Group Kingsview has substantial exploration potential (7)

9 PHASE I DRILLING North Finger Drill Site North Finger Lake Drill Site Phase I Finger Lake Area Drilling program (1) Completed 2,100 meter program (27 holes), plus sampling and assaying. Core Samples Core Samples Core Samples Source: Kingsview Phase I and II drilling is complete (8)

10 PLAN NORD Government of Quebec sponsored plan to develop Quebec s territory north of the 49 th parallel $2B Infrastructure Investment Over 5 Years $500M in Investment Commitment $480M to complete existing road development projects, Route 167 to Mont Otish and reconstruction of Route 389 between Baie-Comeau and Fermont $622M not broken down, but prioritized for energy and mining offering the most development opportunities $57M to study a land link between Kuujjuaq to Shefferviille; the goal is to create a north-south access route to the Labrador Trough, and study the hydroelectric development of the Caniapiscau River (1600MW) $33M for feasibility studies for a deep water port in Whapmagoostui-Kuujjuarapik with a land link to Radisson to open up a Northwest Passage to shipping $500M will be made available to Investissement Quebec to be used for equity participation in structuring projects leading to the development of Plan Nord territory Flexible structure, JV, common shares, convertible debentures Investissement Quebec will be subject to oversight and government approval of equity interests exceeding 30% of a project s cost, business takeovers or investments greater than $50M $52M will be spent to promote the investment in projects within Plan Nord territory Fonds du Plan Nord Quebec Government creating a specific fund dedicated to the completion of Plan Nord Funded by a portion of the tax revenues from economic activities in Northern Quebec (mining, Hydro-Electric) Government expects to transfer $2.1B over the next 25 years to the Fonds Northern Quebec has incomparable mining potential, the opening up of vast, previously unexplored territories is paving the way for unprecedented economic growth Quebec Natural Resources Minister Serge Simard The Government of Quebec is Committed to Developing Northern Quebec (9)

11 NEXT STEPS Phase I Exploration $1,500,000 exploration program summer ,100m drilling program (27 holes), sampling and assaying RTO with 71 Capital Closing expected February 2012 Phase II Exploration $5,000,000 program planned subject to financing 3,000m + drilling in spring/summer 2012, airborne geophysics compliant resource planned for Q2-Q Preliminary Economic Assessment 2012 Production 2016 Kingsview will aggressively explore its properties and intends to produce an updated in 2012 (11)

12 CONCLUSION Kingsview Iron Ore Ltd. Iron exploration and development company Developing Fenimore Iron Ore Project ( Fenimore ) in Ungava Bay, Quebec Fenimore Iron Ore Project Labrador Trough banded iron formation, located in SW area of Ungava Bay, Quebec Land package of 1,126 claims totaling approximately 112,000 acres 500 million tonnes grading 30% iron ore 125 M tonne starter pit North Finger Lake deposit is exposed over a length of 3km with a width of 60m to 700m, average thickness of 18m North Finger Lake 125 million tonnes of ore grading 30% (not compliant), 200M+ tonne potential Finger Lake area has 400 million to 500 million tonne potential Jurisdiction Quebec is one of the most favorable mining jurisdictions in the world Plan Nord will create infrastructure and invest in northern Quebec Strategic Plan Aggressively prove up historic resource and produce compliant resource Advance North Finger Lake starter pit with no/low strip ratio Fast track to production by 2016 Value Creation Multiple expansion as historic resource brought to compliance Resource expansion Fast track to production Kingsview provides substantial exploration upside potential and near term production through the no strip starter pit (12)

13 KINGSVIEW IRON ORE LTD. FORWARD LOOKING STATEMENTS Statements made in this presentation may be deemed "forward-looking statements". Forward-looking statements are frequently characterized by words such as plan, expect, project, intend, believe, anticipate, estimate, and other similar words, or statements that certain events or conditions may or will occur. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or development that the Corporation expects, are forward-looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurance that forward-looking statements will prove to be accurate, as results and future events could differ materially from those anticipated statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management s estimates or opinions should change. The reader is cautioned not to place undue reliance on forwardlooking statements. This presentation includes resource information that is compliant with National Instrument , unless otherwise specified. This is not an offering to buy or sell securities. Contact Information Head Office Michael Opara Willian Quan Chief Executive Officer Chief Operating Officer kingviewironore@gmail.com kingsviewironore@gmail.com Copyright 2011 Kingsview All Rights Reserved (13)