Building a world-class industrial supplier of critical rare earth metals

Transcription

1 Enabling green technologies through rare earth metal development Building a world-class industrial supplier of critical rare earth metals October 2015 TSX: QRM

2 Disclaimer Forward-Looking Statements Forward Looking Statements Except for the statements of historical fact contained herein, the information presented constitutes forwardlooking statements within the meaning of the Private Securities Litigation Reform Act of Such forwardlooking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of the Company to be materially different from any future results, performance or achievements expressed or implied by such forwardlooking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated and Inferred Resources This presentation uses the terms Measured, Indicated and Inferred 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. National Instrument This presentation may include historical reserve and resource information in respect of the project areas that do not conform to the requirements of National Instrument and which has not been verified by the Company. 2

3 Update 1) Geology - Bulk sample taken from Strange Lake site - Geological analysis done by Renaud Geological - Acquisition of other 50% of Alterra from Search Minerals 2) Environment 3) Piloting 4) Financing - Project descriptions completed and in the process of being formally filed - Full piloting program underway - $ 5 mil from Sustainable Development Technology Canada (Federal Gov t) - $4.25 mil Province of Quebec (to be confirmed) - Ongoing discussion with potential strategic investors 3

4 The Case for Rare Earth Metals and Quest 1. There is growing global demand for rare earth permanent magnets Used in a wide and growing variety of applications 2. China currently dominates world rare earth supply but: Chinese government policy is to restrict illegal production, clean up the environmental impact, consolidate the industry and force prices higher future Chinese supply may be constrained for some critical RE s customer s want rare earth supply diversification 3. Quest s Value Drivers A simple, low cost industrial process A favourable product mix 100 years plus supply A strong competitive position Solid economics A sustainable environmental footprint 4

5 Growing Global Demand for Permanent Magnets Wind Turbines Automotive Consumer Electronics Medical Worldwide concerns about the degradation and vulnerability of the environment are spurring green technological innovations. Rare earth metals are essential enablers of these innovations. 5

6 Growing Global Demand for Permanent Magnets Permanent magnet Motor Induction Motor 6

7 Quest Project Overview Located in northern Quebec at the border of Newfoundland The port and mine site will be linked by an all-weather gravel access road over a distance of 168 km Port location near Voisey s Bay Concentrate will be shipped to the processing facility located in Bécancour (between Québec city and Montréal) 7

8 Comparable Geology

9 Lac Brisson Mine Site - Quest Open pit Tailings Dry stack Mid-grade pile Waste rock pile Combined, the mining and processing of the B Zone and Main Zone limits the overall environmental footprint and improves the economics of both zones.

10 Lac Brisson Mine Site - Quest Alterra is wholly owned by Quest Rare Minerals.

11 Quest s Key Process Steps LAC BRISSON BÉCANCOUR, QUEBEC Mine Beneficiation Transport Recycled Acid bake & leach Precipitation Separation / Refining PURE METAL OXIDES Mine output varies to achieve constant flotation concentrate volume and grade 20% Mass pull Transport of flotation concentrate Input of recycled material Simplified process to produce a relatively pure REE concentrate Separation into individual pure metal oxides Material Flow (MT/Yr) 3,550,000 Mined material 1,850,000 Mill feed 300,000 Flotation concentrate ~10,000 recycled phosphor material 11,270 Mixed REE concentrate 11,050 Pure REO 11

12 Quest s Value Driver YEARS OF ORE SUPPLY Domain Indicated Tonnes LREO (Recoverable) HREO+Y (Recoverable) TREO+Y (Recoverable) HREO+Y: TREO+Y (x1000t) (x1000t) (x1000t) (x1000t) Ratio Enriched Zone 20, % Granite 258, ,315 31% Total 278,128 1, ,477 32% Inferred Granite 214, ,062 29% >100 yrs Quest April 9, 2014 B-Zone Resources estimated by Micon at Aug 31, 2012, assumes production of 11,000 Mt of REO per year 12

13 Quest s Value Driver A STRONG COMPETITIVE POSITION Project Evaluation Criteria Project is actively progressing to production Long-term supply security No Major risks Attractive mix of rare earth elements Competitive cost structure Requirements Feasibility Study and permitting in progress in 2015 Geopolitical stability Decades of production All projects have financing risk, and many have other major risks that may be difficult to overcome Economic viability: right mix of elements and not dependant on another commodity for project to proceed Able to withstand price variability Quest Feasibility Study and permitting begun in 2015 Canada 130 plus year supply No remaining major risks other than securing financing Quest is a pure rare earth play Quest s project has a large proportion of the critical rare earth elements in most demand Cash cost of ~US$24/kg 13

14 Quest s Plan of Execution PROJECT DESCRIPTION Updated PFS Environmental Impact Assessment (EIA) Full Piloting FEL3 / Basic Engineering North & South Bankable Feasibility Study Impact and Benefit Agreements Construction Commission Production 14

15 Summary / Corporate Strategy Objectives Become a major producer of rare earth oxides for the permanent magnet industry Provide key permanent magnet customers with a secure and growing supply of rare earth oxides from a stable political and legal jurisdiction Be a structurally low cost producer of rare earth oxides Execute all operations to the highest environmental standards and in a socially responsible manner Be a catalyst to the establishment of an alternative rare earth supply chain from mine to end use outside of China, and ideally centered in Quebec 15

16 Contact Information Pierre Lortie Executive Chairman Quest Rare Minerals Ltd. Corporate Office 1155 Robert-Bourassa Blvd. Suite 906 Montreal, Québec HB3 3A7 Tel: (514) Toll Free: 1 (888) Fax: (514)