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Gq corporate-presentation-nov2012


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Gq corporate-presentation-nov2012

  1. 1. Click to edit Master title style TSX-V:GQ A MINE OF OPPORTUNITIES Corporate Presentation November 2012
  2. 2. Disclaimer This presentation contains forward-looking statements or forward-looking information within the meaning of applicable securities legislation (hereinafter collectively referred to as "forward-looking statements") concerning the Companys plans for its properties, projects, operations, subsidiaries and other matters. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management regarding operations of the Company which are subject to a variety of business and market risks, including political and regulatory risks associated with mining and exploration in Mali. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. These forward-looking statements are based on certain assumptions which the Company believes are reasonable, however, forward-looking statements are subject to a variety of business and political risks and uncertainties. Some of the important risks and uncertainties that could affect forward-looking statements are also described in the Companys continuous disclosure filings made with Canadian securities regulatory authorities, which are available at the SEDAR website and on the Company’s website. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, they may adversely affect the Company’s business and prospects and actual results may vary materially from those described in forward-looking statements. Forward-looking statements are made based on managements beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward- looking statements if these beliefs, estimates and opinions or other circumstances should change, other than as required by applicable laws. Investors are therefore cautioned against placing undue reliance on forward-looking statements. The technical information in this presentation has been reviewed by Jed Diner, MSc. P.Geol., a qualified person as defined by National Instrument 43-101. 2
  3. 3. Tilemsi Phosphate – GQ Flagship Project 3
  4. 4. Advancing Tilemsi Phosphate Project SHARE INFORMATION PROJECT HIGHLIGHTS TSX-V: GQ SHARES OUTSTANDING 44.7 m • 50 million tonnes inferred resource -OPTIONS 3.8 m -WARRANTS 0.7m • High natural grade 24.3% P₂O₅ FULLY DILUTED 49.3 m • Significant upsizing potential 52-WEEK LOW/HIGH $0.62/$3.71 • Strategic source of phosphate for 3-MONTH AVG. VOL. 17,675 direct application fertilizer or as a NPK component 52-WEEK MARKET CAP. $28.1/173.6m DIRECTORS & OFFICERS 9% As of November 15, 2012 4
  5. 5. Investment Highlights • Phosphate deposit regarded as strategic to solve regional food security STRATEGIC DEPOSIT issues in the Sahel Region, West Africa (AGRA, IFDC) • Effective fertilizer product with low OpEx and CapEx expectations POSITIVE ATTRIBUTES • Strip minable – Near surface deposit (<10 meters on average) • Simple production process proven by characterization tests • 3 phosphate concessions with total surface of 1,206km² UPSIZE POTENTIAL • Only 26 km² drilled to date (Drilling program - Phases 1 and 2, out of 4) • Fast growing population (>2% pa) drive food demand in West Africa MARKET POTENTIAL • Large agribusiness investments in West Africa • Proximity to key agricultural markets in West Africa (<1,000 km radius) LOGISTICAL ADVANTAGE • Ability to offer low farm-gate price thanks to market proximity • Strong combined management and board expertise in mineral exploration EXPERTISE in Africa and the global phosphate and fertilizer industry 5
  6. 6. Board and Management Board John A. Clarke – Chairman Management Former CEO of Nevsun Resources and Executive Director of Ashanti Goldfields Joel Jeangrand President, CEO and Director Joel Jeangrand – Director Former CEO of Pan American Hydro and Former CEO of Pan American Hydro; VP Corporate Development VP Corporate Development of Spur Ventures of Spur Ventures with a phosphate project in China with a phosphate project in China. Victor Jones – Director Jayram Hosanee 30 years of experience in senior executive and board positions in public mineral exploration and technology companies Chief Financial Officer Former CFO at Mineral Hill and Ehud Levy – Director Golden Dawn Minerals. Holds a CGA. Phosphate manufacturing industry consultant with a 30-year career with Bateman Engineering and Rotem Mohammed Bouhsane Chief Operating Officer Gordon Peeling – Director Former Project Engineer in the Moroccan President of Mining Association of Canada (MAC) with 30 years mining and metallurgy industries working for of mining experience in the public and private sectors the ONA Group and OCP. Jed Richardson – Director Candice Font Former VP Corporate Development at Verde Potash and Investor Relations Manager Institutional Equity Research Analyst at Cormark Securities Former Media Project Manager for Africa Investor, a specialised publication; and IR David Shaw – Director Consultant at Silver Bull Resources. Worked as Senior Mining Analyst at Yorkton Securities; initiated and developed Resource Research Group at Charlton Securities 6
  7. 7. Deposit AttributesWith a high average phosphate grade and significant exploration upside, the Tilemsi deposit has the potential to become a world-class phosphate resource TILEMSI PHOSPHATE INITIAL INFERRED RESOURCE 50 million tonnes AVERAGE PHOSPHATE GRADE 24.3% P₂O₅ CONCENTRATE GRADE 25-38% P₂O₅ Low levels of contaminants CONCENTRATE QUALITY (ie. cadmium) BENEFICIATION Easy separation and treatment Near surface DEPOSIT DEPTH Strip-minable potential 7
  8. 8. Drilling Program to Expand Resource Map of Tilemsi phosphate project showing our concessions on remote sensing and drilling program (completed and planned) 5 km Phases 1 and 2 of Drilling Program completed 8
  9. 9. Product Development GQ has successfully been conducting characterization tests to determine the effectiveness of the potential product Tilemsi natural phosphate (TNP) meets or exceeds market specifications for beneficiation, solubility and granulation. Characterization tests indicate: TNP can be used as either as very low cost phosphate component for blended NPK fertilizer or as a direct application fertilizer. Test Results Impact Screening at 850 microns to Via simple screening process, the product can easily BENEFICIATION achieve P2O5 grades beneficiated to up to 36.8% P2O5 % P₂O₅ of 36.8% 71.1% soluble P2O5 The rock solubility shows that it is able to compete with other in citric acid SOLUBILITY 62.5% soluble P2O5 chemical fertilizers, as fertilizers’ effectiveness is based on immediate availability of the nutrients in formic acid The product can easily be granulated, allowing the product to Successfully produced GRANULATION granules sized 1-4mm withstand transportation and be used as a component of NPK blended fertilizer 9
  10. 10. Path to Product 1. Raw Material Phosphate Ore 2. Beneficiation Phosphate Rock Concentrate Phosphoric Acid/ Sulfuric Acid Plant Nitrophosphate Plant 3. Transformation to Final Product, Nutrient Additives Ammonia Potash incl. Granulation SSP TSP DAP/MAP NPK 4. Primary use Direct Application Direct Application or Custom Mix Fertilizer SSP: Single Superphosphate – TSP: Triple Superphosphate – MAP:Mono-Ammonium Phosphate - DAP: Di-Ammonium Phosphate NPK: Nitrogen, Phosphate, Potassium 10
  11. 11. Target Markets and Infrastructure GQ is well positioned to supply West Africa’s key agricultural markets in high grade natural phosphate: 12
  12. 12. Why is W. African agriculture dynamic ? 1. Africa - the next agricultural frontier to feed the world • Only 23-30% of arable land in W. Africa is currently cultivated • Low fertilizer usage (9kg/ha vs. 101kg/ha in the rest of the world) 2. Growing food demand require higher agriculture yields • Fast growing population (>2% pa) in West Africa lead to higher food demand • Dynamic and growing agribusiness sector attracting large foreign agribusiness investments 3. Poor soil quality requires mineral fertilizers • West Africa’s soils generally fragile and unfertile • Acidic soils require more phosphorus for higher agricultural productivity 4. Need for a local, low cost phosphate supplier • Most phosphate are imported from overseas  long lead time, added costs • High farm gate prices (up to 80% above world retail prices) due to high transportation costs, market inefficiencies, taxes,… 13
  13. 13. Regional Agricultural ActivityThe use of fertilizers should be increased Development ofto 50 kg/ha by 2015 (Africa Fertilizer cash crops in WestSummit, 2006). The present use of Africa (1980-2006)fertilizers in Sub-Saharan Africa is only Source: FARM 2008about 9 kg/ha of arable land, comparedto a world average of 101 kg/ha.(FAOSTAT, 2009) GQ target markets: Principal production and food crop locations Source: Bureau Issala, JL Chaleard and SWAC 14
  14. 14. Closing the (yield) gap in West AfricaThese 2 graphs support thecase for more fertilizer use inAfrica, for higher agriculturalyield. Gap between actual and potential maize yields Source: Jayne et al. 2009 4000 kg/ha 50,000 000s of hectares 45,000 3500 World 40,000 3000 35,000 2500 30,000 2000 25,000 20,000 1500 West Africa 15,000 1000 10,000 Cereal yield growth 500 5,000 vs. area harvested 0 0 Source: FAO 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 15
  15. 15. Milestones and Catalysts 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Prospecting license of Tilemsi phosphate concession grantedSale of Kenieba gold concession to Avion Gold (now Endeavour)Phosphate exploration permit granted for Tilemsi & Tarkint EstPhase I of Exploration Program completed on Tilemsi & Tin HinaPhase II of Exploration Program completed on Tarkint EstTilemsi Phosphate project receives 32.6Mt initial resource estimateProject area extended to 1,206km² with new concession of AderfoulCharacterisation tests indicate high grade & reactivity of the rockIncrease of 17Mt of inferred mineral, totalling 50MtComplete PEAPre-Feasibility StudyFeasibility StudyProject FinancingMarket Development During ConstructionLaunch Hyper Phosphate Production 16
  16. 16. Tilemsi Project - Positive Attributes High grade Potential for Low cost Growing Proximity phosphate significant product market to markets deposit upsizing expectation needs 17
  17. 17. Appendices 18
  18. 18. Resource Estimate The NI 43-101 mineral resource reports provide an inferred mineral resource estimate of 50 million tonnes at a grade of 24.3% P2O5 (at a cut-off of 10% P2O5) Drilling Cut-Off Tonnes Average Grade Target Zone Strip Ratio Campaign Grade (%) (000s) (P₂O₅ %) Phase I Alfatchafa 10 12,538 22.16 15:01 Phase I Tin Hina 10 20,000 24.24 4.5:1 Phase II Tarkint Est 10 17,436 25.87 5.7:1 Phase I and II TOTAL 10 49,974 24.29 - 19
  19. 19. Tilemsi Exploration Program Permit Drilling # of Holes and Total Resource Average GradeSTATUS Target Name Drilled Surface Name Program Meters Drilled Estimate (P₂O₅) Tin Hina 6.75 km² 141 holes totalling 1,717m 1.4m @ 24.2% Tilemsi Phase I 32.6Mt Alfatchafa 6.7 km² 128 holes totalling 3,218m 0.9m @ 22.0% COMPLETED 5 km² but holes were Tin Siriden drilled along 3.7 km of line 48 holes drilled over 11.3 holes were drilled Tarkint Est Phase II Chemanaguel 12.17 km² these 3 targets totalling 17.4 Mt 25.87% along 9.1 km of line 608m Tagit Holes were drilled along NOuarane 11.1 km of line Chemanaguel n.a n.a Tarkint Est 55 km² 198 holes totalling 2,970 m Tin Siriden n.a n.a Phase III Alfatchafa 13.2 km² 125 holes totalling 1,875m n.a n.a PLANNED Tilemsi Historical samples* Tin Hina 128 holes totalling 1,920 m 1- 1.15m @ 26% 23.4 km² n.a Ader Foul Ader Foul 180 holes totalling 2,700 m n.a Historical samples* Chemanaguel n.a 0.60-1.25m @ 28% Tarkint Est Phase IV 55 km² 375 holes totalling 5,625m Tin Siriden n.a n.a* Historical results have not been confirmed 20
  20. 20. Global Phosphate Industry About phosphate 67% of global production • Essential nutrient to plant and animal life concentrated in just 3 countries • One of 3 key components of NPK fertilizers • 90% of phosphate is used in fertilizers China • No substitute for phosphorus in agriculture USA • Moroccan phosphate rock regarded as standard Morocco Fertilizer uses of phosphate rock Russia Source: FAO • Phosphoric Acid Other • Nitro Phosphate Fertilizers • Basic Fertilizers (SSP, TSP) Phosphorus deficiency symptoms in rice (on the right) • Direct Application Key industry facts • 65 billion tonnes estimated global phosphate rock reserves • Phosphate reserves depleting globally • Global consumption expected to grow by 2% annually 21 Source: INPI
  21. 21. GQ Gold Concessions GQ Gold • 3 gold concessions located in the productive Mali Birimian Gold Belt in western Mali: • Sanoukou 24 sq. km • Bourdala 16 • Dabia Ouest 100 Background - Birimian Belt • A prolific gold belt with 14 deposits and >30m Oz of gold discovered to date • Mali – 3rd largest gold producer in Africa Mali Operational Gold Mines • Producing gold mines in the same area: • Randgold Loulo + Gounkoto • Avion Gold Segala + Tabakoto • Anglogold/Iamgold Sadiola + Yatela 22
  22. 22. About Mali LOCATION GEOLOGY INVESTMENT CLIMATE • Located in the heart of • Favorable geology • September 3, 2012 West Africa dominated by the Mali Ministry of Mines • Vast landlocked Birimian gold belt invited GQ and other country 1.2m km² • Several operating gold mining companies to • 14.5 million people mines in Mali incl. formally reassure them Endeavour, IAMGold… of the attractiveness of • Well connected to • Third largest gold doing business in Mali other West African producer in Africa despite the current nations (paved roads political situation and rail) and major • Large phosphate maritime hubs of occurrences in • Amongst top sub- Abidjan and Dakar northeastern Mali Saharan Africa known since 1927-35 performers on the (IFDC) World Bank’s ‘Doing Business Survey’ 2012 • Tilemsi phosphate recognised by several • According to same organisations (AGRA, survey – Mali IFDC) for its agronomic outperformed its potential neighbours incl. Niger, Mauritania, Burkina Faso and Guinea 23
  23. 23. Mali Mineral Policy Mali mineral law is based on the French civil law. The mining code was revised in 2012. • Exclusive right to carry out prospecting activities EXPLORATION LICENSE • Valid for a period of 3 months (Autorisation d’Exploration) • Renewable once for 3 months • Awarded for 3 years PROSPECTING LICENSE • Covers 8 km² (Autorisation de Prospection) • Renewable once for same period RESEARCH PERMIT • Valid for specified commodities (called “Arrêté”) • Granted for 3 years (Permis de Recherche) • Renewable twice for an additional 2 years each time • Granted for 30 years MINING PERMIT • Renewable for 10 years each time, until depletion of the (Permis d’Exploitation) ore reserves 24
  24. 24. Management Bios Joel Jeangrand Mr. Jeangrand has more than 20 years of global experience in marketing, business and corporate development in the natural resource sector and renewable energy business. Prior to joining Great Quest, he held the role of President and President, CEO and CEO of Pan American Hydro Corporation from 2008 to 2012. Previously, Mr. Jeangrand served as VP Corporate Director Development of Spur Ventures Inc., a publicly traded Vancouver-based fertilizer company with a phosphate project in China. He also spent 11 years in roles of increasing responsibility with the Eramet Group and worked in locations such France, Hong Kong and Taipei. He holds an Executive MBA from Simon Fraser University in Vancouver (2005), and earned a Bachelor of Commerce (equivalent) from Ecole Supérieure de Commerce de Toulon, France (1989). Jay Hosanee Mr. Hosanee is a General Certified Accountant who brings over 20 years of senior management experience in corporate finance, auditing and internal control. Prior to joining Great Quest, he held the position of CFO at Mineral Hill and Chief Financial Officer Golden Dawn Minerals Inc.. His international experience include multi-currency group consolidation, overseeing financial reporting and regulatory compliance of several public listed companies. He also held the position of CFO at Loita Group, an investment banking firm focused on Africa. This role gave him tremendous exposure to sub-Saharan markets. Mr. Hosanee is fluent in French and holds a CGA qualification as well as an Internal Auditor certification. Mohammed Bouhsane Mr. Bouhsane brings 20 years of experience in project management and engineering in the Moroccan mining, hydrometallurgical, and metallurgy industries. He spent most of his time at a mining subsidiary of the ONA Group, Chief Operating Officer where he served as project director and project manager of two major projects. Most recently, Mr. Bouhsane was Project Manager at Nareva Holding, managing construction and financing of an irrigation network. Mohammed is a member of the Quebec Order of Engineers. Candice Font Ms. Candice Font comes to GQ with a wealth of experience working in Africa. As a regional manager for Africa Investor, a specialized publication focused on business in Africa, Ms. Font was based in Abidjan, Cote d’Ivoire and Libreville, Investor Relations Gabon from 2008 to 2010. Between 2005 and 2008, she worked as a project manager producing business reports on and Communications the growth opportunities in emerging countries such as Russia, Nigeria, and Qatar. Prior to joining Great Quest, Ms. Font worked in Investor Relations at Silver Bull Resources, Inc. perfecting her expertise in streamlining information flow, cultivating relationships with stakeholders and enhancing companies public profiles. She holds a Bachelors degree in International Business from the University of Plymouth (UK) and is fluent in English and French. 25
  25. 25. Directors BiosJohn A Clarke Mr. Clarke brings considerable experience in exploration, acquisition and development in the gold mining sector in Africa. He has held roles as Vice Chairman and CEO of Nevsun Resources and Executive Director of Ashanti Goldfields Company Ltd. HeChairman holds B.Sc. in metallurgy from University College Cardiff, a Ph.D. in metallurgy from Cambridge University and MBA from Middlesex Polytechnic.Joel Jeangrand Mr. Jeangrand has more than 20 years of global experience in marketing, business and corporate development in the natural resource sector and renewable energy business. Prior to joining Great Quest, he held the role of President and CEO of PanDirector American Hydro Corporation from 2008 to 2012. Previously, Mr. Jeangrand served as VP Corporate Development of Spur Ventures Inc., a publicly traded Vancouver-based fertilizer company with a phosphate project in China. He also spent 11 years in roles of increasing responsibility with the Eramet Group and worked in locations such as Gabon, Paris, Hong Kong and Taipei. He holds an Executive MBA from Simon Fraser University in Vancouver (2005), and earned a Bachelor of Commerce (equivalent) from Ecole Superieure de Commerce de Toulon, France (1989).Victor Jones Mr. Jones has over 30 years of experience in senior executive and board positions in public mineral exploration and technology companies. He has been active on projects across North America and Africa on financings and JV and acquisition negotiations.Director Mr. Jones received both his B.Sc and MBA from McGill University.Ehud Levy Mr. Levy is a phosphate manufacturing industry consultant, based in Israel. Ehud formed his consulting firm following a 30- year career in Israel with Bateman Engineering and Rotem. At Bateman, he was the managing director of the chemicalDirector technologies, directing project initiation and new processes for sophisticated applications of phosphates.Gordon Peeling Mr. Peeling has been the president of Mining Association of Canada (MAC) since 1997 and has over 30 years of mining experience in the public and private sectors. Prior to MAC, he served as Vice President at the International Council on MetalsDirector and the Environment and Director General at both the Mineral Commodities Branch and Mineral Strategy Branch at Natural Resources Canada.Jed Richardson Mr. Richardson graduated from University of Toronto with B.A.Sc. in mineral and geological engineering. He worked for Alcan as an engineer, and RBC and Cormark as research analyst. He is currently a director and the VP Corporate Development ofDirector Verde Potash (formerly Amazon Mining). Jed is the founding principal of Javelin Partners, consulting firm for junior resource companies.David Shaw Mr. Shaw has worked both in the technical and financial communities in the resource industry. He initiated and developed Resource Research Group at Charlton Securities, worked as Senior Mining Analyst at Yorkton Securities and as a technicalDirector expert at Chevron Resources. He is well connected within European financial institutions and the mining sector. 26
  26. 26. Great Quest Comparables 52-week Ore Resources Stock Share 3m Avg Market Currency Project Stage Project Location M&I Ticker Price High Low Vol Cap (m) Total Grade P₂O₅ (Mt) Aguia Resources Ltd AGR:ASX AUD 0.15 0.74 0.12 51,007 $15.94 Drilling Brazil – 21.3 4.6% Arianne Resources Inc DAN:TSXV CAD 0.90 2.48 0.80 58,575 $58.68 Pre-Feas Completed Canada 347.7 462.0 5.5%-6.5% Celamin Holdings CNL:ASX AUS 0.14 0.39 0.13 29,647 $11.10 Drilling Tunisia Algeria – – – Eagle Star Minerals Corp EGE:TSXV CAD 0.12 0.18 0.07 19,889 $7.28 Drilling Brazil – – – Great Quest Metals Ltd GQ:TSXV CAD 1.14 3.71 0.68 22,891 $48.80 PEA Underway Mali – 32.6 23.4%Legend International Holding LGDI:MKT USD 0.11 0.48 0.06 434,612 $24.90 Feasibility Completed Australia 202.8 516.1 14%-15% MBAC Fertilizer Corp MBC:TSX CAD 2.82 3.30 2.16 88,472 $275.57 Production Target 2012 Brazil 58.8 119.0 5.01%-5.27% Minbos Resources Ltd MNB:ASX AUD 0.21 0.40 0.14 112,356 $18.80 Scoping Study Underway Angola, DRC – – – Minemarkers Ltd MAK:ASX AUD 0.14 0.40 0.13 284,044 $32.70 Pre-Feas Completed Australia, Namibia 399.5 1,561.9 18%-20% Plains Creek Phosphate PCP: TSXV CAD 0.03 0.12 0.02 n/a $9.69 Pre-Feas Completed Guinea Bissau 83.8 83.8 29.6% Rio Verde Minerals RVD:TSX CAD 0.20 0.55 0.18 48,024 $24.32 Scoping Study Underway Brazil 1.9 1.9 11.7%-20.3% Rum Jungle Resources Ltd RUM:ASX AUD 0.23 0.41 0.19 436,854 $37.00 Drilling Australia 13 13.0 15.0% Stonegate Agricom Ltd ST:OTC CAD 0.41 1.27 0.32 5,855 $59.19 Pre-Feas Completed Peru, US 61.8 446.2 9%-30.6% Strata Minerals SMP:TSXV CAD 0.08 0.08 0.08 4,700 $4.30 Drilling Australia – – – Sunkar Resources Plc SKR:LSE GBP 0.04 0.09 0.03 334,516 £7.08 Feas. Study Underway Kazakhstan 293 475.3 11.0% UCL Resources Ltd UCL:ASX AUD 0.12 0.37 0.01 35,385 $9.70 DFS nearing completion Australia, Namibia 96.5 779.9 18.9% As of September 4, 2012 Sources: Yahoo Finance, Capital IQ and Company Reports 27 DFS: Definitive Feasibility Study; PEA: Preliminary Economic Assessment
  27. 27. Great Quest Metals Ltd IR Candice Font TSX-V: GQ Tel +1 604.689.2882 Suite 515, 475 Howe Street Toll Free 1.877.325.3838 Vancouver, BC, V6C 2B3 Fax +1 604.684.5854 WWW.GREATQUEST.COM Email 28