The Kipawa HREE Deposit, Temiscaming, Quebec

Transcription

1 The Kipawa HREE Deposit, Temiscaming, Quebec The Key to Success: A Simple, Low Cost Metallurgical Process Oct. 13, 2011

2 Disclaimer The information contained herein has been prepared to assist interested parties in making their own assessment of Matamec Explorations Inc. (the Company ) and does not purport to contain all of the information that an interested party may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company, its assets, financial condition and prospects, and of the data set forth in this presentation. The Company does not assume any responsibility for independent verification of any of the information set forth herein, including any financial forecasts or statements about the prospects of the Company contained herein. The Company does not make any representation or warranty as to the accuracy or completeness of this presentation or the information contained in, or for any omissions from, this presentation or any other written or oral communications transmitted to the recipient in the course of its assessment of the Company. By the receipt of this presentation, the recipient acknowledges that only those particular representations and warranties, if any, which may be made to a party in a definitive written agreement regarding a transaction involving the Company if, as and when executed, and subject to such limitations and restrictions as may be specified therein, will have any legal effect. 2

3 Highly Desirable Products: Rare Earth Elements MARKET FUNDAMENTALS The Chinese presently supply 97% of the world s production. The cut in China s export quota and Chinese stockpiling triggered the recent increase in TREO prices. A series of 16 metals integral to the hybrid automotive, high technology, nanotechnology, defence and aerospace industries with virtually no substitutes. 8-10% consumption growth projected through to

4 Rare Earth Criticality Matrix By tonnage By value Source: U.S. Department of Energy, Critical Materials strategy, Dec

5 Solid Fundamentals for Success INVESTMENT HIGHLIGHTS Strengths and advantages of Kipawa A HREE deposit containing the critical metals: Nd, Eu, Tb, Dy, and Y Excellent infrastructure and competitive edge in Quebec Open along strike and at depth, excellent potential for more discoveries Low cost production: Open pittable with low strip ratio, simple mineralogy, simple recipe for extracting 79% TREOs Good fit with the automobile industry 5

6 Zeus Property & HREE Kipawa Deposit Location Near Infrastructure Zeus In Quebec, a premier mine jurisdiction Near all weather roads Near railway Near mining towns with services Near electrical power grid 6

7 Kipawa Alkalic Complex & Zeus Property Surprise showing best channelled interval: 5.3% TREO (66% HREO+Y/TREO), 3.6% Zr oxide 3.9% Nb oxide Budget to explore Host Rock property-wide 7

8 Zirconium Zone New Resource Calculation Schematic Cross- Section with TREO enriched envelopes SW TREO Enriched Zones NE Mining open pit, low strip ratio, small op 2011 discovery Indicated and Inferred Resource definition drilling Spacing 50 X 50m New Upgraded NI Resource Calculation (June 30, 2011) Deposit Open Laterally and at Depth 8

9 Gross Metal in situ Value : New (June 2011) Indicated and Inferred NI % TREO Cut-off: Price average Kipawa Deposit Advantage HREEs 9

10 Kipawa Deposit: Simple Mineralogy Main REE-bearing mineral is Eudialyte, it contains 70% of the TREO of the deposit Eudialyte: medium grained, well-crystallized and not intergrown 10

11 Low Cost Ore Processing with Simple Mineralogy 3 steps for low-cost chemical extraction for a competitive edge vs. current producers Step 1 Step 2 Step 3 Ore from Open Pit Mineral Concentrate Mixed TREO Concentrate Regrind Crushing Grinding Leaching Heat: Room temp. Acid: 150 kg/t Time: 2 hours + Water Rare Earth Separation Solid/Liquid Separation Solid Tailings Stabilization Individual REE Oxide Physical Concentration Liquor Mineral Concentrate Purification/Precipitation Mixed TREO Concentrate 90 % of TREO in 35% of Original Mass Recovered in Step 1 88% of TREO Recovered in Step 2 Up to Purification / Precipitation 79% of TREO Recovered in Steps 1& 2

12 Upcoming 2011 Milestones Upgraded NI Resource Calculation (June 30, 2011) Optimization of TREO recovery (July 21, 2011 and Aug.4, 2011) Cost analysis and cost targets (Q3/11) Summer/fall exploration and drilling (Q4/11) Fall Preliminary Economic Assessment report (Q4/11) 12

13 10 Steps to Developing The Kipawa Heavy Rare Earth Deposit IMCOA years Step 1: establish resource Spring years Step 2: understand mineralogy Fall years Step 3: scoping study Summer/Fall 2011 (Ore processing started March 10) 2-10 years Step 4-6: pilot plant Beneficiation, extraction & separation Step 7: environmental approval Step 8: letters of intent 2-4 years Step 9: DFS & funding Baseline Study, Characterizing the environmental sensitivity and land use Discussions & CA (Started Feb. 09) approaching milestone approaching milestone - MOU 2-3 years Step10: engineering, procurement, construction Total average: 10 years D. Kingsnorth (March 2011): The norm is between 7 to 20 years to develop a project Source: Dudley Kingsnorth (IMCOA), March Matamec intends to complete these 10 steps in 7 years Completed - end 2011 In Progress 13 13

14 Preliminary Economic Assessment Inferred resource Bench scale metallurgy Processing site Capex Opex +/- 35% Baseline environmental studies Community and government support Initial Viability established 14

15 PEA Study Production Scenario Kipawa HREE Deposit Grade : % South China Clays Grade: 0.03% Preliminary Planning Ore production of 4,000-4,500 tpd Target based on production 200 tpy of Dy 2 O 3 Production of REOs + some byproducts Before environmental regulations (commenced September 2010) 15

16 Good Fit with the Car Industry Rare Earths Used in Hybrid Cars: La Ce Pr Nd* Sm Eu Gd Tb* Dy* Ho Er Tm Yb Lu Y* Glass and Mirrors polishing powder Cerium Lanthanum Diesel Fuel Additive Cerium Lanthanum Battery Lanthanum Cerium *Kipawa value Catalytic converter Lanthanum Cerium Zirconium UV cut glass Cerium HV electric motor & generator Neodymium* Praseodymium Terbium* Dysprosium* 16

17 Matamec Highlights The Zeus Property Location in SW Quebec Good size and high quality ore body with upside Near infrastructure and service industry Low cost, small op, open pit mining Low cost simple processing = The Key to Success Timely for early 2016 but looking to fast track Excellent exploration potential, and a budget! Gold properties as bonus 17

18 Capital Structure and Growth Chart Analyst reports & recommendations: Euro Pacific (April 19, 2011) Casey Research (April 29, 2011) Jacob Securities (July 5, 2011) Target $1.50 Cormark Securities (Sept.13,2011) Target $1.05 Byron Capital (Sept. 19, 2011) Target $2.00 Current Market Price (October 12, 2011) $ 0.32 Price Range 52 Weeks $0.20 to $ Day VWAP $ Day VWAP $0.321 Average daily volume last 6 months 381,000 Insider Ownership 5.0% Known Institutional Ownership 30% Market Capitalization $38M Common Shares Outstanding Stock Options (Average exercise price: $0.22) Warrants (Average exercise price: $0.41) (2011/12: $1.122M 2012/06: $4.985M) Common Shares Fully Diluted 120 M 7M 13 M 140 M Cash Position $5M Cash Position Fully Diluted $12 M 18

19 The Kipawa Deposit A Timely, High Value and Low Cost Mine for

20 Management and Board of Directors PRESIDENT & CEO (2003) V-P EXPLORATION (2003) SECRETARY TREASURER (2005) DIRECTOR (2009) INDEPENDENT DIRECTOR (2009) André Gauthier More than 25 years experience in the mining industry Brought in 5 properties to Matamec in 2003, including the HREE Kipawa deposit Aline Leclerc Geologist-consultant Laval St-Gelais Chartered accountant Marcel Bergeron CMA Chartered accountant Director - Strateco Resources Inc (TSX-RSC) Normand Tamaro Lawyer LL.D (specialized in intellectual property law) INDEPENDENT DIRECTOR (2010) Sylvie Prud homme Geologist Director of Investor Relations Osisko Mining Corporation (TSX- OSK)

21 2011 Exploration Program & Budget Properties Program Budget Strategic/Critical/Green/Energy Metals 5.34M$ 100% Zeus (REE-Y-Zr-Nb) Tansim (Li-Ta-Nb-Cs) Vulcain (Ni-Cu-Co-PGM-Au) -Kipawa Deposit -PB-PS Zone Surprise/TH/Falaise Showings -Other untested targets large coverage of the KAC -Tanco Model -Rare metals in simple and complex pegmatites - World Class untested target identified by WMC in 2005 Gold Drilling Program/PEA Study Drilling Program/Trenching 4.200M$ 78.8% Mag-EM-Radiometric /Soil Sampling Surveys/Trenching Mag-Radiometric Ground 0.100M$ 1.9% Survey Prospecting/Mapping/ Trenching Mag-EM-Radiometric survey 0.320M$ 6.1% Matheson JV - NE of the Goldcorp High Grade Hoyle Pond Mine - Basal till anomalies unexplained Wachigabau/Lespérance - Geophysical Gold Anomlies - Known gold showings Sakami - Zone 25 as compared with Goldcorp s Eloneore Deposit Valmont - Gold and massive sulphide anomalies Revised August 2011 Compilation 0.150M$ 2.8% Mag Survey 0.350M$ 6.6% Drilling Program Compilation 0.20M$ 0.003% Prospecting/Mapping/Tenching 0.200M$ 3.8% 21

22 Budget - Kipawa REE-Y-Zr Deposit: 3 Year Plan Cost and Schedule of Future Work Geology $2.350M $3.630M $1.500M 2- Engineering Studies including Mining - PEA - Pre-Feasibility - Feasibility 3- Mineral Processing and Metallurgy - Specific Testwork - Continuous Testwork - Pilot Plant - Construction 4- Environment and Permitting 5- Relation with the Community 6- Market Study $0.300M $1.100M $3.850M $1.000M $2.500M $3.750M $0.400M $0.600M $0.600M $0.150M $0.500M $0.850M Incl. in the Eng. Studies - - Total: $4.200M $8.330M $10.550M $23.080M Roche (Engineering) Ltd. Febuary

23 Zeus Property Surprise Showing: One of many potential areas Matamec identifies: 2 large rare earths and niobium soil anomalies in the Surprise showing area Surprise, best channelled interval: 5.3% TREO (66% of HeavyREO+Y 2 O 3 /TREO), 3.6% ZrO 2 and 3.9% Nb 2 O 5. 23

24 Kipawa Deposit: Simple Mineralogy Primarily one mineral: Eudialyte - medium grained, well-crystallized and not intergrown. Minerals Mineral Formulas Elements % TREO in deposit Eudialyte (Unique in the world) Mosandrite/Yttro-titanite Na 15 (Y,Ca) 6 Fe 6 Zr 3 (Si 26,0 73 )(O,OH,H 2 O) 5 NaCa 2 (Ca,Ce,Y) 4 Ti(Si 2 O 7 ) 2 F 5 and (Y,Ca)TiSiO 5 Zr, Y, HREE 70% Y, HREE, Ti? 20% (Mosandrite) Britholite Vlasovite (Ce,Y,Ca) 5 (SiO 4,PO 4 ) 3 (OH,F) Na 2 ZrSi 4 O 11 Y, HREE, P 2 O 5 10% Zr 24

25 Rare Earth Minerals Minerals Presently Producing Rare Earths Economically Mineral Mineral Mineral Aeschynite Churchite Loparite (Russia) Allanite (GWMG) Eudialyte (Matamec) Monazite (China) Anatase Euxenite Mosandrite (Matamec) Ancylite Fergusonite (Avalon) Parisite Apatite Florencite Samarskite Bastnasite (Molycorp) Gadolinite (Quest) Synchisite Brannerite Huanghoite Thalenite Britholite (Matamec) Hydroxylbastnasite Xenotime (China) Cerianite Kainosite (Quest) Yttrotantalite Cheralite South China Clays 25

26 KIPAWA DEPOSIT GROSS VALUE IN SITU June 2011 Zone TREO ENRICHED ZONES (Cut-off of 0.2% TREO indicated 0.435% and inferred 0.361% grades) Average prices Tonnage 17,645,000** 6,805,000** Classification Indicated t** Value in Situ (USD) Inferred t** Value in Situ (USD) Lanthanum (11$/kg*) La 11, ,896,000 3,700 41,921,000 Cerium (10$/kg*) Ce 22, ,142,000 7,600 81,092,000 Praseodymium (29$/kg*) Pr 2,700 77,409, ,803,000 Neodymium (30$/kg*) Nd 10, ,000,000 3, ,000,000 Samarium (8$/kg*) Sm 2,300 19,159, ,664,000 Europium (489$/kg*) Eu ,700, ,900,000 Gadolinium (13$/kg*) Gd 2,300 29,141, ,869,000 Terbium (522$/kg*) Tb ,668, ,167,000 Dysprosium (150$/kg*) Dy 2, ,076, ,703,000 Holmium (35$/kg*) Ho ,838, ,946,000 Erbium (40$/kg*) Er 1,900 76,152, ,048,000 Thulium (96$/kg*) Tm ,079, ,693,000 Ytterbium (27$/kg*) Yb 1,800 48,474, ,158,000 Lutetium (408$/kg*) Lu ,150, ,575,000 Yttrium (33$/kg*) Y 17, ,025,000 5, ,850,000 Zirconium (4.6$/kg*) Zr 160, ,840,000 59, ,400,000 3,130,749,000 1,047,789,000 *Prices from Metal-Pages, Industrial Minerals and Asian Metals, average REE oxides 99% min FOB China, Y oxide % min FOB China and Zr structural ceramic/electronic grade. **Source: SGS Geostat (June 30, 2011). 26