FIRST BAUXITE CORPORATION

Transcription

1 FIRST BAUXITE CORPORATION (FBX: TSX-V FBI: Frankfurt/Berlin) Refractory Sintered Bauxite Rare Commodity, New Player, Niche Industry August 2010 Yannis Tsitos, President & Director

2 Disclaimer This document contains certain forward looking statements which invoke known and unknown risks, delays, and uncertainties not under the corporation s control, which may cause actual results, performance or achievements of the corporation to be materially different from the results, performance or expectation implied by these forward looking statements & presentation slides. Readers must rely on their own evaluation of these uncertainties. Company Copyright clauses are valid in this case. Content and slides from this presentation are not allowed to be copied or distributed otherwise, without the written consent of the Company. Page 2

3 Company Vision First Bauxite Corporation s mission: To be a sustainable producer of high quality refractory grade sintered (calcined) bauxite. To become the first North American Company to mine, beneficiate and export by itself this product to the non-china markets. Projects/Operations: Guyana, South America. Objective: Create value for ALL stakeholders. Page 3

4 Why First Bauxite Corporation $120 million Capital Exp. 23 km from port & 45 km from the Atlantic Ocean Basic Industry Product Strong Demand - - Constrained Supply Capex Rapid Development Optimum Location High Quality Ore Deep Inventory of Projects Unique Commodity - Niche Market Solid Management Proven Record +/- 18 months 55-61% Al 2 O 3 average raw % Al 2 O 3 after sintering Results Oriented Mining Professionals Page 4

5 First Bauxite Corp: a TEAM of DOers In just more than TWO YEARS and $13 million expenditure, FBX Has acquired two private corporations Has drilled more than 800 holes Has built a portfolio of high quality assets in Guyana Has built a deep inventory of economic grade bauxite Has developed and branded GUYSIN-90, a high quality sintered refractory bauxite Has built relationships with the refractories industry Has delivered a positive Bankable Feasibility Study Has achieved a strong reputation of doers Page 5

6 Bauxite Facts Bauxite is Alumina ore and thus the source of Aluminum Metal.. Bauxites classified by intended commercial application Metallurgical: >95% of 205 MT (2008) World Prod. Global Non-Met Bx consumption (2009 Est.) 6.38 million MT Refractory: 1.16 million MT (2009 non-china demand). Major Bauxite Locations Jamaica Guinea Guyana Suriname Greece India China Brazil Australia Page 6 Major Metallurgical Grade Capacity Major Non-Metallurgical Grade Capacity Major High Alumina Grade Refractory Production

7 The Refractory Calcined Bauxite Refractory A-grade Super Calcined (RASC) bauxite benchmarked after the high quality Guyanese product in 1900s. Refractory material definition:...material that is not deformed or damaged by high temperatures..., and thus being used in any pyro-metallurgical process, i.e., steel, cement, glass industries, furnaces etc. Refractory materials are used in linings for furnaces, kilns, incinerators and reactors. FBX Raw Materials Industry & Mining bauxite, alumina other oxides Refractories Industry Basic Materials Industry Raw Materials & Minerals magnesite, dolom. clay, quartz other Production of Different Types of Refractories refractory products Steel Cement Glass Petro-Chemicals Non-Ferrous Page 7

8 The Refractory Grade Sintered Bauxite Current Industry Situation Unique product: only Guyana & China currently supply the non- China world s demand for Refractory bauxite (while part of domestic consumption in India, Russia and Brazil is captive) Captive market with finite supply and strong demand. Increasing prices trend. RASC bauxite prices of >$460 - $540 per MT. (Raw bauxite must be >60% Al2O3, very low Fe, almost no alkali) vs. $35-$50 per MT for metallurgical (MAZ) bauxite (typical raw bauxite in the range of 43%-50% alumina). Page 8 ( from Calcined Bauxite Market Study by Roskill Information Services, July 09)

9 Location of First Bauxite s Projects vs. Existing Operations Page 9

10 FBX s Projects & Bauxite Regions Essequibo Exploration JV with Rio Tinto Alcan Bonasika & Waratilla Tarakuli Page 10

11 Typical Bauxite Lithologies in Bonasika 1, 2 and 5 * Granular Bauxite SiO2 5.7% Al2O3 60% Fe2O3 1.39% Clayey Bauxite SiO % Al2O % Fe2O3 1.56% Yellowish bauxite with interstices, veins and vugs that may be in-filled with clay. Clay constitutes less than 10% of the rock mass. The bauxite is friable, porous and has poor cohesion. Pinkish coloured bauxite is the dominant component of this lithology with clay constituting less than 50% and more than 10% of the rock mass. * Slide from First Bauxite Corp s Presentation at the Bauxite & Alumina Conference in Miami in April 2010

12 Waratilla Prospecting License: Typical Low Iron Bauxite * Massive Bauxite Very high alumina and low silica & iron. Pulverised massive bauxite from Sonic Drill: feels like clay, but is actually highly gibbsitic. SiO2 1.13% Al2O % Fe2O3 0.5% * Slide from First Bauxite Corp s Presentation at the Bauxite & Alumina Conference in Miami in April 2010

13 Guyanese Bauxite: A world renowned Bauxite Guyana For long an important source of both refractory and metallurgical bauxites. Currently BOSAI supplying some ,000 TPA of refractory calcined bauxites. RUSAL is mining metallurgical bauxite for Nikolayev alumina refinery in the Ukraine. The low iron & alkali's and high alumina is key to the desirability of Guyana Bauxite for refractory feed. The high alumina content in the form of gibbsite is the key to Guyana Bauxite desirability as sweetener in the Bayer process for the production of alumina. Guyana Bauxites, while renowned for their quality, are currently of limited availability. The planned development of the Bonasika Project by First Bauxite should overcome this shortfall. Page 13

14 Feasibility Study Bonasika Mine & Processing Plant, Sand Hills Processing Plant The FS commenced in September 2009 completed in July 2010 It has considered all aspects related to development of the Project, including in-situ geology, mining, metallurgy, processing and engineering, economics, marketing, social and environmental considerations. It was prepared by Met-Chem Canada Inc (Montreal), with contributions by many, including First Bauxite, AluminPro, Polysius AG (Thyssen Krupp sub), Roche, Golder Associates, George Bennett Consulting, Cemco, EMC, MICON, etc. The Feasibility Study defines and confirms the viability of an operation based on sequential mining of the three (3) bauxite deposits located on the Bonasika ML. A) Open-pit, truck and excavator mining, at Bonasika 1, 2 & 5 B) The mined ore trucked for processing at a wash plant facility located less than 2 km from the Bonasika 1 & 2 pits. C) The wash plant concentrate will be transported 23 km to the sintering plant and load out facilities at Sand Hills. Page 14

15 Feasibility Study - Production Rates The Mine will operate at a production rate of 298,500 metric tons ( tonnes ) of bauxite per year or 1,148 tonnes per day, The wash plant will produce 162,232 tonnes of washed bauxite concentrate The two vertical pressurised shaft kilns will produce 100,000 tonnes per year of sintered bauxite final product. Note: Only the Bonasika resources have been captured as proven & Bonasika Mines probable Mining Reserves (3 Open Pits) in this FS Waratilla PL Wash Plant (Crushing, Washing) UWC Deposit Haulage Road (23 km) Sand Hills Development (Drying, Mag sep, Grinding, Briquetting, Sintering, storage, Load-out Wharf) Page 15 LWC Deposit (new shallow bauxite discovery) Demerara River

16 Mineral Resource Statement for Bonasika & UWC (Bonasika & Upper Waratilla-Cartright deposits from FS) Page 16

17 Page 17 Bonasika Mining Reserves

18 Production parameters, Capital & Operating Costs Page 18

19 Feasibility Study Highlights 1 Target production of 100,000 tonnes of high quality sintered bauxite annually; Operations located 60 km from Georgetown, the capital of Guyana; Approx., 7.5 million tonnes of Measured and Indicated mineral resources; Mineral Reserves have been determined only from the 3 Bonasika deposits, totaling 2.5 million tonnes of which 69 % are Proven and 31% Probable; Producing a mine life of 8.4 years for the Project. The UWC resources were drilled concurrently with the FS work, and thus no Mineral Reserves were determined from UWC for the purpose of this FS; Relatively simple open-pit mining - Low mining operating costs at US$1.21 per tonne of total material mined or US$23.91 per tonne of final product; Efficient, simple, low cost beneficiation for sizing and washing of bauxite ore to allow silica concentrate at $7.20 per tonne (US$3.89 per tonne of raw bauxite); Low cost and relatively short 23 km concentrate haul to the Sand Hills sintering plant and dock, at $4.13 per tonne (US$2.23 per tonne of ore processed); Page 19

20 Feasibility Study Highlights 2 State of the art technology, vertical shaft kilns produce enhanced bulk density sintered bauxite product with zero particulate emissions, while consuming less than 50% of the energy consumed for equivalent output by a rotary kiln (Chinese competitors); Direct employment of 207 employees at the mine and the two processing plants; Total estimated capital costs for the Project of US$112.8 million with sustaining capital costs of US$7.5 million during the Bonasika mine life; A pre-tax Internal Rate of Return of 16.2% and a post-tax IRR of 12.2%; A US$182 per tonne (final product) cash operating costs; A US$475 per tonne FOB price; Sensitivity analyses suggests that the Project is robust and can withstand adverse changes between 10-20% in most critical parameters, such as capital and operating costs, fuel prices and product price. Significant upside potential from neighboring UWC and LWC. The UWC NI Compliant drilling has indicated a Mineral Resource of 4.9 million tonnes of high quality refractory bauxite, which has not been included in the FS economic evaluation; work in progress to complete the mineral reserves estimate to allow the inclusion of the UWC resource and the newly discovered LWC resource in the future mine plan. Page 20

21 Page 21 Bonasika Bauxite: Bonasika Wash Plant Flow Diagram

22 Bonasika Bauxite: Sand Hills Agglomeration & Sinter Plant Flow Sheet Page 22

23 Sand Hills Development Page 23

24 FBX s GUYSIN-90 : Towards A Secure Long Term Supply Two bauxite resource areas (concessions) some 10 km apart - Bonasika Mining License and Warcart Prospecting License. The initial development based at Bonasika Mining License where bauxites exposed at surface. Proposed start of commercial production in 2012 from Bonasika Phase I Mine. Bonasika projected to support production over 8.4 years at 100,000 Tonnes/year. Mining could then shift to LWC and UWC (Waratilla PL) Phase II License. The later could sustain production into the future at much higher production levels (longer than years) Market demand may accelerate FBX planned exploration and possible development of Warcart Mine. Other markets could be developed for these premium grade bauxites, such as abrasives and proppants for oil drilling. First Bauxite is the largest holder of highly prospective bauxite lands in Guyana. Active JV with Rio Tinto Alcan on Essequibo Project. The newly acquired Tarakuli deposit has been independently valued at $1.9 billion at pre-production time. Page 24

25 Essequibo Exploration License (JV with Rio Tinto Alcan) Existing Option & JV agreement with Rio Tinto over this license (executed in May 2008 still active), leveraging our shareholders to a potential discovery of a world-class metallurgical bauxite deposit. Rio Tinto sole-funds the next $58 million to vest at 75% in two stages (51% with the first $8m (in 4years) and 75% with the next $50m) Numerous historical and current bauxite targets. Plans for Rio s drilling in fall holes drilled blind in the 1960s by DEMBA along the only existing road, intersected economic bauxite of 3.1m to 8.6m thickness and 52.96% to 58.61% alumina Current Linden Bauxite Mine Page 25

26 TARAKULI Bauxite Deposit (new Acquisition) Tarakuli Bauxite: Historical Inferred Resources after Reynolds Metals. Grade Chemistry Deposit Drilling Interval Total Wet Ton Chem. Metal TSiO 2 TAl 2 O 3 TiO 2 Fe 2 O 3 Average Average O/B Ore Depth Depth (Ft) (Mt) (Mt) (Mt) (%) (%) (%) (%) (m) (m) Tarakulli km x 1.5 km size, 15 km from Guyana - Surinam border. Deposit open in two directions. 700 holes database. Page 26 approx. 10,000,000 MT of Chemical Grade Bauxite

27 Board of Directors & Officers Hilbert Shields, CEO and Director. Over 28 years mining & exploration experience in 14 countries including Guyana. Former VP of Golden Star Res. and former Director of Omai Gold Mines Ltd. Yannis Tsitos, President and Director. Over 24 years experience, of which18 years with BHP Billiton (till Dec 2007) as Business Development Manager. Worked on projects and business deals in 32 countries and 11 commodities. Jim Heras, Chairman and Director. Over 40 years of experience as a Director of various private and public companies in the mining industry, land development and other real estate ventures. Involved in the original development of the Kemess copper deposit in BC. Lee Graber, Director. Over 35 years of relevant experience in the mining industry, including 23 years with Homestake Mining Company. Initiated, managed and closed $9.2 Billion worth of mining transactions, acquisitions and divestments. George Bennett, Director. Over 50 years involvement with the exploration, mining, production and sale of industrial minerals with specific focus on Refractories. Geoff McNamara, Director. Over 22 years of business development and exploration/ mining experience, Director of Pacific Road Capital Management, ex-director of Societe Generale, worked with Ivanhoe Mines. Albert Wu, CFO. Involved with numerous junior exploration and mining companies as a Page CFO 27 for over 30 years.

28 First Bauxite Corporation (FBX: TSX-V) First Bauxite Corp. is a 2.5 year-old junior natural resources company listed on TSX-Venture in Dec 2007 as Academy Ventures Inc. Changed name to First Bauxite Corporation and split its stock (2 for 1) in Dec Secondary listing in Frankfurt and Berlin, Germany (under the symbol FBI) in Jan Share Capital: Issued & Outstanding: 45,406,032 shares - Fully Diluted: 60,196,050 Working Treasury: CD$1.0 million, access to US$20 million at Bonasika Project Financing phase (Pacific Road Capital, AUS/US) Acquisition of GINMIN First Drilling at Bonasika Pacific Road Financing Acquisition of the Tarakuli Project Deal with Rio Tinto Bonasika FS Commissioned FS Completed and Results Announced Page 28

29 Gold Rock Value Comparison (rough calculation) Copper $160 per MT * $55 per MT ** Low CapEx, short project delivery times, ultra shallow mining, no chemicals used, simple mining Intensive CapEx, long project delivery times, in cases deep mining issues, environmental sensitivities High Alumina Raw Bauxite $70 per MT Sintered Refractory Bauxite $200 per MT *** Page 29 *(for a rich Au deposit with a grade at 5g/t 1oz=$1000) **(for a rich Cu porphyry with a grade of 1%Cu and 1pnd Cu = $2.50) ***(calcined bauxite tonnage = approx. 0.4 X raw bauxite tonnage)

30 Focused on Constant Growth Thank You