Project Update - PDAC March 1, 2015 WHITE MOUNTAIN CALCIUM FELDSPAR PROJECT

Transcription

1 Project Update - PDAC March 1, 2015 WHITE MOUNTAIN CALCIUM FELDSPAR PROJECT

2 Forward Looking Statements! Forward-looking Statements " This presentation includes certain forward-looking statements about future events and/or financial results which are forward-looking in nature and subject to risks and uncertainties. Forward-looking statements include without limitation, statements regarding the company s plan, goals or objectives and future mineral projects, potential mineralization, resources and reserves, exploration results and future plans and objectives of Hudson Resources. Forward- looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", or "continue" or the negative thereof or variations thereon or similar terminology. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from expectations include risks associated with mining generally and pre-development stage projects in particular. Potential investors should conduct their own investigations as to the suitability of investing in securities of Hudson Resources.! Cautionary Note Regarding Mineral Reserves and Mineral Resources " Readers should refer to the current Technical Report of Hudson and other continuous disclosure documents filed by Hudson available on SEDAR at for further information on Mineral Resources, which is subject to the qualifications and notes set forth therein as well as for additional information relating to Hudson more generally. Mineral Resources which are not Mineral Reserves, do not have demonstrated economic viability.! Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated and Inferred Resources " This presentation uses the term "Inferred" Mineral Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.! Qualified Person (QP) " Dr. Michael Druecker, CPG, is a qualified person as defined by National Instrument and reviewed the preparation of the scientific and technical information in this presentation. Ronald G. Simpson, B.Sc., P,Geo., President of Geosim Services Inc., is an independent Qualified Person as defined by NI and was responsible for the resource estimate on the White Mountain Project. QP certificates can be found on Hudson s website. 2

3 What is Anorthosite? Hudson s anorthosite is a calcium feldspar rock which is primarily comprised of aluminum (31%), silicon (50%) and calcium (15%). The White Mountain anorthosite is unique in its size and purity. E-Glass Fiberglass The anorthosite has three potential commercial uses: 1. A replacement for kaolin in the production of E-glass fiberglass 2. A replacement for kaolin in the filler market (paints and plastics) 3. A primary source of alumina, replacing bauxite Each of the above are significant market opportunities. Hudson is targeting E-glass as a first mover/early cash-flow business. Alumina Plastic 3

4 Project Highlights! Over 100 years mine life based on current drilling! Unique orebody with no significant competitors! Three potential revenue streams from one mine! Easy processing with three stages of crushing (followed by magnetic separation for e-glass and filler products)! Low capital cost at $25M! Excellent infrastructure with deep water port! Low political risk. Greenland very supportive of mining! Cash flow potential in 2016! Excellent opportunities to grow revenue stream 4

5 A Large Long Life Mine! Size and purity matter. Customers want security of a long term supply of homogeneous and consistent material! Initial resource model, based on our first year of drilling, outlined 27 million tonnes of indicated and 32 million tonnes of inferred resources. Cut-offs are based on the purity of material needed by the E-Glass industry! This represents over 100 years of production for the E-Glass market at 500,000 tpa! 95% of the body still untested. Strike length is 6 km Table 1. Mineral Resource Estimate Class Na 2 O Cut Tonnes Off 1 (000 s) SiO 2 Al 2 O 3 Fe 2 O 3 CaO MgO Na 2 O K 2 O Indicated 2.50% 27, % 30.0% 1.26% 14.95% 0.55% 2.35% 0.29% Inferred 2.50% 32, % 30.1% 1.22% 15.01% 0.52% 2.34% 0.26% Indicated 3.00% 35, % 29.8% 1.25% 14.72% 0.53% 2.41% 0.31% Inferred 3.00% 42, % 29.8% 1.25% 14.77% 0.52% 2.40% 0.30% 1. Note: Cut-Off means all material is below the grade specified of Na 2 O. The sensitivity of the model to an increase in Na 2 O to a 3% cut off is included to show that the resources remains within E-Glass specifications. 5

6 A Strategically Located Project Shipping route 6

7 A Very Unique Deposit! Typically, calcium-rich anorthosite deposits are small, irregular and contain too many impurities for commercial applications other than low value products like road fill.! Only three other deposits have been identified that have similar chemical compositions. The Lapinlahti deposit is currently marketing product through Sibelco but available quantities are limited. The Gudvangen deposit is located within a UNESCO World Heritage site and the Shawmere deposit has a very small resource. Lapinlahti Deposit, Finland Shawmere Deposit Canada Gudvangen Deposit Norway 7

8 White Mountain Arial View White Mountain - Exposed Anorthosite Mountain Top Easily Minable Area Close to Deep Water Fjord for Convenient Shipping 8

9 View of the Initial Anorthosite Pit 9

10 Heavy Equipment on Site 10

11 Simple Mining Process! There is no metallurgical risk to this project processing is simple and there are no chemicals involved! Open pit operation with no stripping and no waste rock! The flowsheet for a production facility is as follows: " Three stages of crushing to 60 mesh " Magnetic separation " Delivery to port for shipping to end users Airport 11

12 Planned Mine Site Close to Infrastructure! Deep water port being developed! International airport 80 km from the project located in the town of Kangerlussuaq! Year round access 12

13 Greenland Process Flowsheet OPEN PIT MINE 95 tph 20" - 24" 95 tph 12 hr/d 7 d/wk 40 wk/yr ROM Ore Modular Jaw Crusher Modular Cone Crusher Crushed Ore Stockpile Reclaim FEL Haul to Plant 10 km Plant Feed Stockpile ON SITE PROCESS PLANT 47 tph 106 tph (125% Circ. Load) +20 mesh 7 tph -200 mesh 40 tph -20 / +200 mesh 6 tph (20%) Mags Waste Hopper 34 tph Non-Mags 24 hr/d 7 d/wk 40 wk/yr Stockpile Reclaim by FEL Vibrating Screen VSI Crusher Air Classifier Magnetic Separator Haul to Tailings Disposal Site Non-Mags Stockpile (Covered) LOAD OUT 550 tph max As required 40 wk/yr Stockpile Reclaim by FEL Shiploading Conveyor 30,000 tonne Bulk Carrier To Europe 13

14 Processing Material at the SRC 14

15 E-Glass Strategy! E-Glass (or electrical grade glass) is a high-end fiberglass with excellent growth projections of 7% annually! Hudson will start with production of 200,000 tpa after 24 months, building up to 500,000 tpa in year five.! Will target Europe and North America initially. Asian tonnage potential is significant. Will target through JV s and directly with Asian companies.! Expect to sign an off-take agreement with one of the leading E-Glass producers in Q ! All of the major E-Glass producers are testing White Mountain material with positive results. Additional off-take agreements expected in the next 12 months. Airport 15

16 Hudson s Competitive E-Glass Strategy! Kaolin prices range from $85 - $200 per tonne depending on quality, processing method (air-float vs water washed) and location! Kaolin and Chinese Clay (Pyrophyllite) quality is falling around the world! Kaolin prices have been rising 5-7% annually! High rail costs in the US mean transporting material from Georgia can be prohibitively expensive! E-glass producers are looking for a long-term stable supply of feedstock that can improve glass quality and increase furnace output! Owens Corning has successfully tested an 80 tonne sample of processed material in a commercial furnace! Hudson has CA s with almost all of the major fiberglass glass producers Airport 16

17 Site Inspection by Potential Customers 17

18 Alumina Potential - Specialty and Smelter Grade! High Al2O3 grade of 31%! Bench scale testing has produced smelter grade and specialty grade (alpha) alumina! No production of toxic red muds. Potential for amorphous silica and calcium silicate byproducts! Demonstrated ability to produce alumina from known processes. No new technology required! SGA Alumina market is very large at 100 M tonnes/annum.! Specialty grade alumina market is around 3 M tonnes/annum and trades at 2 to 5 times the price of SGA 18

19 Three Products Produced Amorphous Silica Calcium Silicate Alumina 19

20 Filler! Fillers are particles added to material (plastics, composite material, concrete) to lower the consumption of more expensive binder material or to better some properties of the material! Worldwide more than 53 million tonnes of fillers worth US$20 billion are used every year in applications such as paper, plastics, rubber, paints, coatings, adhesives and sealants! Fillers market to grow to $22.5 billion by 2018! White Mountain material currently being tested for filler potential with positive feedback 20

21 Future Local Workforce 21

22 Stream Flow Measurements (EIA) 22

23 Community Meetings 23

24 The Path to Production H1 2015: Sign first of several off-take agreements with E-Glass end users Granting of 30 year mining license by Greenland government Secure project financing Commence construction H Sign off-take agreement/strategic relationship for coatings and filler business Obtain partner for alumina business and proceed to pilot plant testing 2016 Complete construction and commission plant Ship first production material in H Cashflow to support expansion and new [project opportunities Commence feasibility study for alumina project 24