Nuinsco Resources Limited- September 2013


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Nuinsco Resources Limited has over 40 years of exploration success and is a growth-oriented, multi-commodity mineral exploration company that today is focused on world-class mineralized belts in Canada and Turkey. In addition to its property holdings, Nuinsco owns common shares in Coventry Resources Limited (ASX:CVY) and Victory Nickel Inc. (TSX:NI).

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Nuinsco Resources Limited- September 2013

  1. 1. TSX:NWI Building on 40 Years of Exploration Success September, 2013
  2. 2. TSX:NWI 2 This document contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the possibility that actual circumstances will differ from estimates and assumptions; uncertainties relating to the availability and costs of financing needed in the future; failure to establish estimated mineral resources; fluctuations in commodity prices and currency exchange rates; inflation; recoveries being less than those indicated by the testwork carried out to date (there can be no assurance that recoveries in small scale laboratory tests will be duplicated in large tests under on-site conditions or during production); changes in equity markets; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; the uncertainties involved in interpreting geological data; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s annual information form dated March 30, 2012 filed on SEDAR at Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein. Disclaimers
  3. 3. TSX:NWI 3 Nuinsco Resources Limited - Overview  One of Canada’s most experienced mineral exploration companies  Over 40 years of exploration success, management continuity  Track record of releasing value  Current variety of assets capable of creating value at the appropriate time  Solid treasury offers opportunities in current difficult market
  4. 4. TSX:NWI 4 NWI: Exploration Success & Value Creation TSX Symbol NWI Shares Outstanding 295 million Fully Diluted 335 million Recent Share Price C$0.035 Market Cap $10 million
  5. 5. TSX:NWI 5 1. Solid balance sheet: $4.5 million working capital @ Sept. 30 • Strong competitive position in current market • NWI is an active explorer compared with peers 2. Chibougamau Assets: - Exploration by Nuinsco, new discoveries - Addition of new advanced-stage assets in camp - Structure and financing of CBay assets - Ultimately: mill refurbishment, mine development, copper/gold production 3. Xstrata drilling at Berta 4. Prairie Lake rare metals – metallurgy, resource estimate 5. Diabase Peninsula uranium 6. Evaluating near-term cash generating assets to minimize equity dilution Nuinsco Resources Limited Value Drivers
  6. 6. TSX:NWI 6  100% owned, easily accessible, near Marathon and Terrace Bay, Ont.  Carbonatite complex with phosphorus, niobium, tantalum, uranium, REEs and others with industrial applications  Second largest carbonatite-hosted niobium deposit by tonnage in North America (#1: Iron Hill Project in Colorado) and one of world’s top 10  NI 43-101-compliant ETMI: 515-630 million tonnes @ 3.0% to 4.0% P2O5 and 0.09% to 0.11% Nb2O5 (0.9-1.1 kg/tonne) using only shallow drilling over 12% of complex surface area  Flotation has produced a concentrate grading in excess of 30% P2O5  Additional metallurgy, upgrading to resource still to come Prairie Lake Rare Metals Project
  7. 7. TSX:NWI 7 Prairie Lake Hill Looking East Prairie Lake Rare Metals Project
  8. 8. TSX:NWI 8  Saskatchewan contains 65% of known capacity for global uranium  Unconformity uranium deposits are extremely profitable mining operations  11 deposits contain 1,670 million lbs U308 with an average grade of 11.8% Diabase Peninsula Uranium Project
  9. 9. TSX:NWI 9 Diabase Peninsula Uranium Project All the right signals  100% interest, royalty-free, $9 million spent to date  42 drill holes (17,356m), airborne & ground geophysics, geochemical surveys, mapping 22,000 Ha property  Identified all indicators for a uranium deposit in the Athabasca basin: step-up in unconformity; faulting; graphite; strongly anomalous uranium, as well as arsenic, nickel, cobalt and base metals; clay alteration; boron anomaly in the sandstone  Next steps: Further drilling to find the deposit
  10. 10. TSX:NWI 10 Turkey: Berta Exceptional and Diverse Mineral Potential  Diverse geology provides fertile terrane for exploration and discovery  Berta porphyry JV with Xstrata (35% NWI, 65% Xstrata): target is the largest copper anomaly, >15 km3, in the Turkish Pontides  All holes drilled to date have intersected copper mineralization  Extraordinarily anomalous copper obtained in 2007 drilling: 710 m of 0.28% Cu, 0.07 g/t Au  2012 drilling program continues to provide prospective, widespread, anomalous results, e.g. 354.6m of 0.14% Cu
  11. 11. TSX:NWI Revitalizing the Chibougamau Mining Camp Nuinsco (TSX:NWI) and Ocean Partners Subsidiary 11
  12. 12. TSX:NWI 12  Nuinsco helps to restructure Campbell Resources  Ocean Partners (“OP”) provides funding to Campbell for Cu offtake  Campbell upgrades Copper Rand Mine, adds production from Merrill Island pit, begins development of Corner Bay  2008 world financial crisis forces Campbell into CCAA protection Chibougamau Nuinsco/OP History  Nuinsco/OP become sole secured creditors of all Campbell assets  2011: Nuinsco and OP get 50:50 joint ownership of Chibougamau assets, CBay Minerals created  CBay implements services contract with Nuinsco to provide exploration, marketing, finance, administration
  13. 13. TSX:NWI 13 CBay Minerals – Steps to Value Realization  Overall objectives:  Develop sufficient resources to feed permitted mill, possibly including custom milling  Put mill and Corner Bay mine into production one year after financing  Have three mines in production by 2016  Systematically explore to evaluate camp’s full potential for new discoveries  Create employment and growth in Chibougamau 3,000 TPD Copper Rand Mill Corner Bay Mine
  14. 14. TSX:NWI 14  Chibougamau is a significant Quebec mining camp with copper and gold production dating back to the early 1900s.  Lac Doré Complex has produced 47.6 million tons ore containing 1.6 billion pounds of copper and 3.2 million ounces of gold (75% from CBay assets) Chibougamau Mining Camp and CBay  Historical grades - 1.75% Cu, 2.5 g/t Au  CBay is owned equally by Nuinsco and Ocean Partners, a private metals trading entity  Total investment by Nuinsco and OP to date: $ 33.0 million  CBay’s dominant asset position provides an excellent vehicle for revival of the Chibougamau region.
  15. 15. TSX:NWI 15 Chibougamau – CBay Production Assets  Eight past producing copper/gold mines:  Copper Rand  Cedar Bay  Jaculet  Portage  Henderson I  Henderson II  Mine Shaft #3  Copper Cliff  Partially developed high-grade Corner Bay copper project  Perch River advanced-stage copper project  Segmented 3,000 TPD mill (four ball mills) and permitted tailings facility at Copper Rand All of these assets plus a 96,000 acre land package over core of Chibougamau Complex give CBay a dominant position in the Chibougamau mining camp
  16. 16. TSX:NWI 16 *Roscoe Postle Associates Report for CBay, July 9, 2012 CBay Production Potential: Corner Bay  Resource (2012 43-101 using 2% Cu cutoff*)  Measured: 360,000 tonnes @3.44% Cu  Indicated: 465,000 tonnes @ 3.40% Cu  Inferred: 734,000 tonnes @3.33% Cu  High-grade copper, potential for production within one year  $25 million spent on development, including ramp, prior to 2009  500 TPD to 650 TPD possible from ramp  Continuous to depth - possible future shaft
  17. 17. TSX:NWI 17 CBay Production Potential: Cedar Bay  Cedar Bay has largest drill tested potential in the Complex  Mined to 2,100-foot level, shaft down to 3,000-foot level  Total ore extracted (1958 -1990): 3,782,850 tons @1.57% Cu & 3.12 g/t Au  Mineable grades and widths drilled to 4,000-foot level Intersections from ’94-’95 Cedar Bay Deep Drill Program
  18. 18. TSX:NWI 18 CBay Production Potential: Perch River  Option agreement to acquire 100% signed February 2013  Advanced-stage copper project  Exploration ramp sampled 12,150 tons in 1973  Property report projected ~1 million tons grading >1% Cu*  Shallow (50m – 100m depth), flat-lying deposit  Mineralization similar to Icon-Sullivan mine, located 15Km SW, which produced 2.1 million tons grading 1.96% Cu  Exploration pending, potential to provide additional near-term feed to Copper Rand mill  Excellent access and infrastructure *AJR Geoconsulting Property Report (non-43-101-compliant) March 2007
  19. 19. TSX:NWI 19 CBay Exploration  Exploration upside within and adjacent to past producing mines  Untested on-strike potential of ore-bearing structures  Untested exploration potential, drill-ready targets elsewhere on the land package
  20. 20. TSX:NWI (9.27% Cu/ 16.15m (6.7m)) Corner Bay Copper Deposit – Upside at Depth 20 CBay Exploration Potential: Corner Bay  Ramp excavated on Main Zone, other zones need to be fully evaluated  Also requires additional drilling to the north, south and at depth
  21. 21. TSX:NWI 21 CBay Exploration Potential: Portage Island  Henderson 1 & 2 and Portage mines, drill- indicated Cu resource at Hematite Bay, Cu/Au mineralization at Baie du Commencement, two extensive high-grade magnetite bodies  2012 drilling gold prospects at Hematite Bay/McKenzie Vein Portage Island Offers the Most Exciting Near-Term Exploration Upside McKenzie Vein Drill Core, 2012 Select Drill Results Nuinsco 2012 Drilling Gold Grade Intercept 12.23 g/t 2.34m 8.37 g/t 2.96m 5.45 g/t 3.48m 4.52 g/t 5.42m 2.31 g/t 8.62m 2.31 g/t 2.96m
  22. 22. TSX:NWI 22  Excellent potential in area near Copper Rand (Lac Doré South)  2002 MegaTEM survey still to be fully interpreted  Good correlation between conductivity responses and known mineralization  Also representative of the significant lack of exploration in the mining camp for several decades CBay Exploration Potential: Lac Doré Complex  Enormous volume of valuable information deserves full review and cataloguing  Evaluation of historic data will enhance understanding of existing occurrences and identify new opportunities
  23. 23. TSX:NWI 23 CBay Minerals: 2012-2013 Achievements  CEO and General Manager, Chibougamau hired  New 43-101 report on resources at Corner Bay  Completed closure plan for Copper Rand  LBP Mining Services, Val D’Or completing internal reports on refurbishment of Copper Rand mill, capex, operating cost and mine plan for Corner Bay  Implemented exploration drilling program via Nuinsco on Portage Island  Initiated detailed analysis of property position and prioritized additional exploration targets  Reviewed past producers for production scenarios  Sold royalty on Eastmain gold property to make CBay debt free  Optioned Perch River copper project  Advanced discussions to add other near-term production assets in Chibougamau camp
  24. 24. TSX:NWI 24 2014  Corner Bay in production, producing at a rate of 6,000 tonnes Cu  Feasibility on second mine to put back into production (possibly Cedar Bay)  Finance second mine to production CBay Minerals: Steps To Value Realization 2013  Raise $15 million to refurbish mill and start up Corner Bay  Consult with Cree Nation regarding start-up of Corner Bay  Put Corner Bay into production (500 TPD-650 TPD) during the year, subject to financing  Acquire/joint venture additional mining properties in Chibougamau area for additional feed to mill  Continue exploration on property package, near old mines  Identify next mine for production  Consider creating standalone public company, subject to market conditions
  25. 25. TSX:NWI 25 CBay Minerals: Steps To Value Realization 2015  Second mine into full production (likely Cedar Bay)  Feasibility study on 3rd producing mine  Raise funds if necessary for 3rd producing mine  Production level 1,500 TPD from CBay mines on continuous basis 2016  Three mines in full production  Production level 2500-3000 TPD from CBay mines
  26. 26. TSX:NWI 2626 Management René R. Galipeau Vice-Chairman, CEO & Director 35+ years international mining experience incl. Hudson Bay Mining, Breakwater Resources, Lac Minerals, Rio Algom Paul L. Jones President Exploration professional with 28+ years experience with more than 20 junior companies, Nuinsco’s QP Alison Sutcliffe VP Finance & CFO CA with 25+ years experience, incl. Deloitte, Dundee Corp. Sean Stokes VP Corporate Affairs & Corporate Secretary 25+ years communications/business development/finance experience, incl. Tiberon Minerals, Scandinavian Minerals Dr. David Mchaina VP Environment & Sustainable Development 20+ years experience, incl. Boliden, Westmin, Goldcorp Roland Horst CEO CBay Minerals 35 years mining experience as a CEO, banker, geologist, incl. Orvana, Royal Nickel, International Nickel Ventures Jean Tanguay General Manager CBay Minerals Geologist with 19+ years experience in Chibougamau mining camp
  27. 27. TSX:NWI 2727 Robert Wardell Chairman, C.A., BSc, 38 years experience, national partner Deloitte, Director of Katanga Mining, Elgin Mining, Allied Nevada George F. Archibald Geologist, 40+ years experience and seven discoveries with Falconbridge & Nuinsco Dr. Jim Franklin Geologist, 40 years experience, since 1998 Adjunct Professor at Queen’s University since 2001, Laurentian University and since 2005 at the University of Ottawa. Past president of both the Geological Association of Canada and of the Society of Economic Geologists. Marvin Singer Lawyer, Partner with Norton Rose LLP, significant domestic and international experience on all aspects of resource projects Ed Guimaraes Chartered Accountant, Executive VP and CFO of Aur Resources Inc. until the completion of the acquisition of Aur by Teck for $4.1 billion. Previously with PricewaterhouseCoopers LLP. Qualified Independent Board
  28. 28. TSX:NWI 28 René Galipeau - Non Executive Chairman Roland Horst - CEO Paul Jones - President, Nuinsco Sean Stokes - Corporate Secretary Jeff Beck Managing Director (USA) Ocean Partners, mining engineer formerly with Asarco, Pechiney World Trade (PWT), created Ocean Partners via management buyout from Alcan/Pechiney Group Walter Cimowski Director (Canada) Ocean Partners, geologist formerly with Noranda and PWT as head of copper concentrate and blister trading Siva Pillay CFO of Ocean Partners, finance experience with Mees Pierson, Bank of New York Commodities CBay Board
  29. 29. TSX:NWI 2929  Recently shored-up treasury with royalty sales, Ocean Partners a financially strong partner in CBay. Cash equals opportunity in a difficult market environment  Continuous history of discoveries over a 40-year period  Experienced Board of Directors and Management team  Track record of value creation  Experienced at creating spinoff companies – asset base offers this potential for value creation with CBay  Solid base of exploration projects  Near-term cash flow potential from CBay assets All the Tools for Exploration Success and Wealth Creation Summary