Pacific Potash (TSX.V - PP) - Corporate Presentation


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Pacific Potash (TSX.V - PP) - Corporate Presentation

  1. 1. Forward-­‐Looking  Statements  FSE: P9P This  presentation  contains  "forward-­‐looking  information"  and  "forward-­‐looking  statements"  within  the   meaning  of  applicable  securities  laws.  This  information  and  statements  address  future  activities,  events,   plans,  developments  and  projections.  All  statements,  other  than  statements  of  historical  fact,  constitute   forward-­‐looking  statements  or  forward-­‐looking  information.  Such  forward-­‐looking  information  and   statements  are  frequently  identified  by  words  such  as  "may,"  "will,"  "should,"  "anticipate,"  "plan,"  "expect,"   "believe,"  "estimate,"  "intend"  and  similar  terminology,  and  reflect  assumptions,  estimates,  opinions  and   analysis  made  by  management  of  Pacific  Potash  in  light  of  its  experience,  current  conditions,  expectations  of   future  developments  and  other  factors  which  it  believes  to  be  reasonable  and  relevant.  Forward-­‐looking   information  and  statements  involve  known  and  unknown  risks  and  uncertainties  that  may  cause  Pacific   Potash’s  actual  results,  performance  and  achievements  to  differ  materially  from  those  expressed  or  implied   by  the  forward-­‐looking  information  and  statements  and  accordingly,  undue  reliance  should  not  be  placed   thereon.     Risks  and  uncertainties  that  may  cause  actual  results  to  vary  include  but  are  not  limited  to  the  availability  of   financing;  fluctuations  in  commodity  prices;  changes  to  and  compliance  with  applicable  laws  and   regulations,  including  environmental  laws  and  obtaining  requisite  permits;  political,  economic  and  other   risks;  as  well  as  other  risks  and  uncertainties  which  are  more  fully  described  in  our  annual  and  quarterly   Managements  Discussion  and  Analysis  and  in  other  filings  made  by  us  with  Canadian  securities  regulatory   authorities  and  available  at  Pacific  Potash  disclaims  any  obligation  to  update  or  revise  any   forward-­‐looking  information  or  statements  except  as  may  be  required  by  law.   Contents   J.  Dahrouge,  P.  Geol.,  a  director  of  Pacific  Potash  Corporation,  who  is  a  qualified  person  as  required  by     NI  43-­‐101,  has  read  and  approved  the  technical  disclosure  within  this  presentation.      
  2. 2. Pacific  Potash  Corporation    FSE: P9P Pacific  Potash  Corporation  (“The  Company”)  is  a  TSX-­‐V  (PP)  listed  junior  resource  mining  company  based  in   Vancouver,  British  Columbia.  The  company  holds  and  is  actively  exploring  two  Potash  properties:     • the  Provost  Potash  Property  (PPP)  encompasses  43,938  acres,  within  east-­‐central,  Alberta  and  is  held   100%  by  the  company;  and   • the  50:50  Property  is  held  jointly  with  Grizzly  Discoveries  Inc.,  and  surrounds  the  Provost  Potash  Property.     It  is  located  about  45  km  west  of  the  historic  Unity  Potash  Mine  in  Saskatchewan,  along  the  Alberta-­‐ Saskatchewan  border.       Key  Drivers       • Pacific  Potash  Corporation  is  the  first  mover  of  Potash  exploration  in  Alberta   • Historic  gamma  ray  logs  from  oil  and  gas  wells  within  the  PPP  and  surrounding  area,  indicate  the  presence   of  Potash  within  the  upper  part  of  the  Prairie  Evaporite  Formation   • Current  demand  for  Potash  is  expected  to  increase,  along  with  an  anticipated  production  shortfall     Recent  News       • October  2011   o The  company  received  drilling  permits  for  the  Provost  Potash  Property   o Drilling  commenced  on  October  24th  2011  for  the  Provost  Potash  Property   o Permits  are  pending  for  the  50:50  Property       • September  2011   o Signed  a  Letter  of  Intent  with  Grizzly  Discoveries  Inc.,  which  provides  a  framework  for  the  joint   exploration  of  the  50:50  Property   • August  2011   o Retained  Taylor  Land  Services  who  initiated  permitting,  site  selection  and  negotiations  with  surface   rights  owners.     o Retained  Barlon  Engineering  to  manage  the  3rd  quarter  drill  program  at  Provost      
  3. 3. Exploring  Alberta    FSE: P9P
  4. 4. Benefits  of  Alberta  FSE: P9P Potash  In  Alberta  –  A  Brief  History     •  1st  Recorded  Occurrence  of  Potash  in  Alberta  (1945)   o VCO  #  15  near  Vermillion,  Alberta  (about  100  km  northwest  of  Provost)   o Up  to  4  m  of  carnallite  (KMgCl3 2O),  12m  of  possible  sylvite  (KCI)   o Historic  work  noted  peak  grades  of  10%  K2O     • 2 nd     o Provost  No.  2  –  Provost  Alberta  (about  10  km  west  of  Provost  Potash  Property  -­‐  PPP)   o Variable  occurrences  Potash  minerals  noted  over  a  110m  interval   o Historic  work  noted  peak  grades  of  4.1%  K2O     • 1 st  Potash  Exploration  -­‐  Development  (Not  Alberta,  but  close)   o Verbata  No.  2  -­‐  Unity,  Saskatchewan  (located  about  45  east  of  the  PPP)   o 3.3  m  thick  (10’10”)  of   2O  equivalent     o Shaft  sunk  in  1952,  but  no  reported  production,  as  water  and  sand  from  the   Blairmore  Formation  flooded  the  shaft      
  5. 5. The  Alberta  Advantage  Infrastructure     • Well  developed  infrastructure  within  the  area   • Roads   • Paved  highways  and  roads   • Gravel  secondary  roads   • Rail   • The  CPR  passes  through  Provost,  while  the  CNR  is  within  about  40  km  to  the  north   • Both  lines  provide  access  to  shipment  facilities  across  Canada  and  the  United  States   • Service  Lines     • Power  Lines   • Gas  Lines     • Location   •  250  km  southeast  of  Edmonton,  Alberta   •  270  km  west  of  Saskatoon   • Towns   • Provost,  Alberta  is  near  the  northwest  corner  of  the  property   • Suitable  for  immediate  accommodation,  supplies,  services  and  workforce      Tax  &  Royalties       • Alberta  was  ranked  the  No.  1  jurisdiction  for  Mining  and  Exploration  by  the  Fraser  Institute  (March  2011)   • The  Alberta  Department  of  Energy  (Mineral  Development  Division)  advised  that  the  royalty  on  potash   would  be  similar  to  that  of  salt:   •  
  6. 6. The  Properties    FSE: P9P Provost  Potash  and  50:50  Property(s)     Location   Provost,  Alberta,  near  the  Saskatchewan  Border     (250  km  southeast  of  Edmonton),  about    45  km  west   of  the  historic  Unity  Potash  Mine     Geology   Potash  is  within  the  Patience  Lake  Member,  within  the   uppermost  parts  of  the  Devonian  Prairie  Evaporite   Formation  (PEF),  at  depths  of  1,300  to  1,450  m     Property(s)   The  Provost  Potash  Property  encompasses  two   Metallic  and  Industrial  Mineral  (MAIM)  permits   totalling  17,781  hectares  (43,938  acres)     The  surrounding  50:50  Property  consists  of  24  MAIM   permits  totalling  more  than  500,000  acres.     Access   Year-­‐round,  via  paved  highways,  roads  and  secondary   gravel  roads.    The  CNR  and  CPR  cross  the  property(s).     Power   Network  of  power,  gas  and  various  service  lines.     Exploration  Season   Year  round  (in  snowfall  or  precipitation)  
  7. 7. Regional  Geology  (Historic  Drill  Sites)           FSE: P9P Provost  Property       Devonian  Prairie  Evaporite  Formation  (PEF)  occurs   at  depths  of  1,300  to  1,450  m.    Within  the  region,   the  Patience  Lake  Member  occurs  near  the  top  of   the  PEF.    It  consists  of  interbedded  Halite  (NaCl);   Carnallite  (KMgCL3-­‐ 2O)  and  Sylvite  (KCl);  and  clay   minerals.     Historical  Interpretations       Several  historic  oil  and  gas  holes  have  penetrated   the  PEF  in  the  region.    Downhole  gamma  ray  logs   from  within  the  PPP  and  surrounding  area  may   indicate  the  presence  of  significant  potash.     Hole:  PVR  Provost  4-­‐18-­‐38-­‐1W4*   • Peak  value  of  375APL  (~25%  K2O)  across                      2.25  m   and  Cautionary  Language   • Peak  value  of  225  API  (~15%  K2O)  across    *  The  use  of  gamma  ray  logs  to  identify  potash  layers,  while  an  important  exploration  tool,  is                      1.75  m  dependent  on  many  variables  (background   Hole:  Sage  et  al  Provost  11-­‐20-­‐37-­‐1W4*  radiation  levels,  calibration  errors,  size  of  individual  beds,  etc.)  and  is  not  an  absolute   • Strong  gamma  response,  no  scale  provided  measure  of  grade  and  thickness.  Estimates  for   Hole:  Murphy  Cds  Lk  7-­‐30-­‐36  28W4*  K2O  are  based  on  Schlumberger’s  (1974)  approximation  of  15  API  =  1%  K2O  for  potash   • Peak  value  of  255  API  (~17%  K2O)  across    bearing  units.    Until  these  intervals  are                      2.25  m    confirmed  by  chemical  analysis,  they  should  not  be  considered  as  an  absolute  measure  of  grade   Hole:  Provost  No.2    across  width.   • To  4%  K2O    -­‐  Provost  No.  2   Mossop  &  Shetson,  1994;  Klarenbach  2009     Notes:  Assay  data  not  available  –  DPEF  is  not  currently  known  to  outcrop  at  or  near  the  Property.      
  8. 8. Provost  Potash  Property     Fall  2011  Exploration   FSE: P9P Drill  Site  1     Location   North-­‐East  of  the  Sage  et  al  Provost  11-­‐20-­‐37-­‐1W4   historical  drill  hole     Commencement     • Monday  October  24th  2011     Estimated  Depth     • ~1450  m     Drill  Site  2     Location   North-­‐East  of  PVR-­‐Provost  4-­‐18-­‐38-­‐1W4  historic   drill  hole   Commencement   • Pending  the  conclusion  of  Drill  Site  3   Depth     • ~1450  m     Drill  Site  3     This  site  is  located  about  10  km  north  of  the  PPP,   within  the  50:50  Property,  and  will  be  completed   jointly  with  Grizzly  Discoveries  Inc.  Exploration  Programs  The  2011  Exploration  is  managed  by:  Dahrouge  Geological  Consulting  Ltd.  ,  Barlon  Engineering  ,  and  Taylor  Land  Services  .  
  9. 9. Solution  Mining  FSE: P9P Advantages         • Mineral  solubility  is  heightened  by  increasing   temperatures     • Depth  to  the  PEV  (ie.>1,100  m)  is  suitable  for   solution  mining     • Active  Mining  Process  (Saskatchewan)   – Patience  Lake  Mine   – Belle  Plain  Mine   • Reduced  development  costs,  timeline  and   mining  risks   o No  underground  workings,  access  or   personnel  needed   o Development  and  production  is  easily   scalable   o Faster  timeline  to  production   compared  to  conventional  mining   o Lower  technical  risk   o Reduced  environmental  footprint     • Ability  to  mine  deep  or  irregularly  shaped   deposits   • Reduced  CAPEX     o Shorted  Payback  Period     o Higher  IRR      
  10. 10. Management  Team  FSE: P9P Steve  Khan  -­‐  MBA,  CFA   Director  &  CEO   • Currently  serves  as  President,  Director  and  Chairman  of  Strathmore  Minerals  and  is  a  founder  and   former  senior  executive  officer  of  Fission  Energy  as  well  as  Director  for  several  other  TSXV  listed   companies   • Former  senior  executive  of  a  number  of  Canadian  national  brokerage  houses   • Has  initiated  and  managed  major  joint  venture  projects  with  Chinese  and  Korean  and  a  Global   Fortune  500  Japanese  private  company   • Over  27  years  of  leadership  in  the  global  venture  capital  markets   • BSc.  and  MBA  from  UBC,  Chartered  Financial  Analyst     Balbir  Johal  -­‐  B.A,  LL.B   Director  and  Executive  Chairman   • Lawyer  since  1983  serving  public  companies  as  a  senior  officer  and  director   • Served  as  a  senior  officer  and  director  for;  Centurion  Minerals,  Abzu  Gold,  Signature  Resources,  Mega   Copper,  Urastar  Energy  Ltd.,  etc.   • B.A  from  UBC  and  Bachelor  of  Law  from  the  University  of  Windsor   • Over  20  years  in  the  global  capital  markets  –  resources  and  exploration     Steve  Butrenchuck  -­‐  P.Geo,  M.Sc   President   • Over  40  years  in  mining  and  mineral  exploration,  development  and  operations   • Currently  a  director  of  Passport  Potash  Inc.  (former  President  and  CEO  of  Passport  Potash  Inc.  and  a   senior  officer  and  director  of  several  public  resources  companies;  BonTerra  Resources,  Equinox   Exploration,  etc.   •   • Former  Consulting  Geologist  for  the  Geological  Survey  of  British  Columbia   • Member  of  the  Assoc.  of  Prof.  Engineers  and  Geoscientists  of  Alberta    
  11. 11. Management  Team  FSE: P9P Jody  Dahrouge  -­‐  B.Sc.,  Sp.C.,  P.Geol.   Director  and  Sr.  VP  Exploration   • Over  20  years  of  leadership  in  international  mineral  exploration  and  resource  companies   • Senior  executive  officer,  director  and/or  geologist  with  Commerce  Resources,  Quantum  Rare   Earth,  Fission  Energy,  and  Equitas  Resources   • Member  of  the  Assoc.  of  Prof.  Eng,  Geologists  and  Geophysicists  of  AB  and  BC   • Qualified  geological  professional  in;  asset  analysis,  M&A  evaluation,  etc.   • Jody  Dahrouge  is  Pacific  Potash  Corporation’s  qualified  person  for  the  purposes  of  NI  43-­‐101       Bryce  Clark  -­‐  CFA   Director  and  Chief  Financial  Officer   • Over  20  years  of  executive  administration  for  public  and  private  companies   • Current/Former  CEO/CFO  of  New  Destiny  Mining,  Harmony  Gold,  etc.     Don  Larmour  –  B.Eng,  P.Eng   Advisory  Board  Member     • 30  years  experience  in  potash  industry   • 28  years  with  Potash  Corp.  of  Saskatchewan   • President  and  principle  of  Global  Potash  Solutions  Consulting   • Intricate  knowledge  of  conventional  and  solution  mining  operations   • Expertise  in  all  aspects  of  potash  processing,  construction  auditing,  plant    commissioning  and   environmental  compliance    
  12. 12. Corporate  Comparison     FSE: P9P       Stock  Symbol:  TSX-­‐  V:  PP   Issued  &  Outstanding  :     Warrants  Outstanding  :     Stock  Exchange:  TSX  Venture     Options  Outstanding  :     • 12,500,000  at  $0.28  (February  2014)   Fully  Diluted:       • Prices  between  $0.20  to  $0.40   •  1,643,750  at  $0.20  (March  2016)   Market  Capitalization:       • 2,356,916  at  $0.80  (June    2016)   Working  Capital:       • 409,106  at  $0.80  (June    2016)                       Company     Shares  Issued   Market   Cash   52  Week   Share  Price*   Name   Capitalization   High/Low   ($)             Allana  Potash   147,433,000     55,000,000   2.43  –     1.21   (AAA.V)             Western  Potash  Corp     209,229,000   37,000,000   1.55  –  1.08   1.34   (WXP.V)             Ethiopian  Potash  Corp       11,000,000   1.27  –  0.085   0.54   (FED.V)             Passport  Potash  Inc.   125,920,157     9,000,000   –  0.055   0.33   (PPI.V)             Encanto  Potash  Corp.       8,300,000   –  0.125   0.255   (EPO.V)             Grizzly  Discoveries   48,320,000   29,457,000   8,000,000   0.85  –  0.21   0.49   (GZD.V)             Pacific  Potash  Corp.   34,500,396   7,546,000   6,200,000   1.08  –  0.18   0.225   (PP.V)      *  Data  Sourced  November  14th  2011  
  13. 13. Contact       FSE: P9P Pacific  Potash  Corporation   Legal  Counsel     –  595  Howe  Street   Anfield  Sujir  Kennedy  and  Durno  Law     Vancouver,  British  Columbia     -­‐ Granville  Street   Vancouver,  British  Columbia,  Canada       V7Y  1C3     Phone:       Fax:         Website:   Transfer  Agent           Computershare  Trust   Toronto  Stock  Exchange  -­‐  Venture   2nd  Floor  –  510  Burrard  Street   TSX-­‐V:    PP   Vancouver,  British  Columbia,  Canada       Frankfurt  Stock  Exchange   Phone:     P9P       Auditor     Richard  L.  Tremblay   Manning  Elliot   Manager  of  Corporate  Development     1050  Howe  Street   Toll  Free  (North  America):     Vancouver,  British  Columbia,  Canada         Email:   F       Dan  Patience     Investor  Relations   Toll  Free  (North  America):  1.800.499.2388     Email: