International Lithium Corp Presents at Vancouver Electric Vehicles Association (VEVA)


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International Lithium (subsidiary of TNR Gold Corp TNR:TSXV) presents at VEVA June 2010. Includes an overview of the lithium industry, Lithium 101 (what it's about), and great background information on how Lithium is produced.

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International Lithium Corp Presents at Vancouver Electric Vehicles Association (VEVA)

  1. 1. INTERNATIONAL LITHIUM CORP Vancouver Electric Vehicle Association May 2010 Presented By: Mike Sieb
  2. 2. Presentation Outline 1. Lithium • Applications • Demand • Growth • Sources • Demand vs. Supply 2. International Lithium Corp. • Structure • Projects
  3. 3. What is Lithium? • Lithium is a soft, silver-white metal that belongs to the alkali metal group of chemical elements. It is represented by the symbol Li, and it has the atomic number 3 • Highly Reactive • Lightest of all Metals • Least Dense Solid Element • Highest Specific Heat Capacity • High Electrochemical Potential “The Miracle Element”
  4. 4. Applications of Lithium Improves Melting Behaviour of Aluminum Oxide Air Aluminum Conditioning Production 5% High Charge- and 6% Power-to-Weight Ratio Pharmaceutical 7% Batteries Higher 25% Performance & Lubricating Grease Temperature 6% Tolerance Wide Variety Glass & of Other Uses Ceramics 27% Decreases Melting 18% Point, Viscosity and 75% of Lithium Energy Costs while Produced is for Increasing Thermal Stability Industrial Usage
  5. 5. World Demand for Lithium Conversion of Lithium to Lithium Carbonate is 5:1 approximately * Historic Demand sourced from Roskills 2009 Report
  6. 6. Lithium Demand Focus Introduction of Electric Vehicles is Main Demand Driver • 700 Million Cars Today 3 Billion Vehicles by 2050 (International Monetary Fund) • 25 Models of Li-powered cars by 2012 • 9.6 Million Electric Vehicles by 2018 (JP Morgan) Electric Vehicle Demand for Lithium ~70,000 Tonnes By 2020 (FMC) ADDS UP TO A SUBSTANTIAL GROWTH RATE * 0.6 kilos of Lithium Carbonate Per kWh (Industry Standard)
  7. 7. Electric / Hybrid Vehicle Technology • Automobile makers are transitioning to high performance hybrid / lithium-battery driven cars! • BYD + Chinese Manufacturers • Aptera • Mitsubishi • Nissan • Opel • Toyota • Hyundai • GM, BMW, Benz
  8. 8. China‟s Largest Car Market – EV Sales to Soar • China is now world‟s largest car market at 13.6 million vehicles sold in 2009, up nearly 45% 2008 data (US at 10.4M) • Export brand sales 70%, Domestic brands increasing in numbers • BYD (10% owned by Warren Buffet) first hybrid in China travels 330km on one charge • Projected 5% penetration by 2011+ which translates to nearly 750,000 EV using about 15-30 lbs each
  9. 9. Asia‟s Phenomenal Electric Bike Growth Growth of Electric Bikes 1998-2010 From Novelty to 10% penetration of market, 120 million bikes on road today from few thousands From $0 to $11 billion dollar industry, selling at $1300- 3000 USD/each Limitations of energy costs and pollution restrictions expected to assist introduction of EV cars into China 01/business/global/01ebike.html
  10. 10. Europe is Moving Ahead with EV Concept • Europe is building EV support infrastructure – Denmark adding $100 million on charging-ports, power grids, battery-swap stations – Better Place is running these grids based on power from wind power, already supporting 20% of Denmarks‟ energy supply – France spending $2 billion in Paris for grids and charge ports • Nissan Leaf and Renault‟s hybrid/EV factories are in UK
  11. 11. Global Lithium ProductionDevelopment Sources and Potential Sources for Lithium 1. Lithium Brines 2. Pegmatites 3. Clay Hectorite 4. Oilfield & Geothermal Brine
  12. 12. Lithium Carbonate Production (Annual) Company Country Deposit Type Li2CO2 Eqvt Talison Australia Spodumene 10,000 tonnes SQM Chile Brine 32,600 Chemetall Chile Brine 13,000 Chemetall US Brine 3,000 FMC Chemical Argentina Brine 16,600 Qinghai CITIC China Brine 10,000 Various Others China Spodumene 15,000 TOTAL 100,200 tonnes per year * 2014 projected demand at 163,000 (Reference: Byron Capital Markets)
  13. 13. Sources of Lithium - Brines 1. Lithium Brines Predominantly Found in Salt Lakes In the Form of Dissolved Salts Ranging from 200-1500 mg/l Lithium
  14. 14. Lithium Brines Cont‟d Accessed By Water Well Pumped to Surface Typically Concentrated By Solar Evaporation Ponds Generally accompanied in Solution with other compounds: boron, sodium chloride, sulfate, etc.
  15. 15. CBS News - FMC‟s Atacama in Chile
  16. 16. Brine Production Process & Costs Breakdown Process Step Chemical / Driver Cost ($/tonne Cost Li2CO3) Remove Magnesium Slaked lime (Ca(OH)2) 180 (per unit Mg:Li) pH adjustment Hydrochloric acid 20 (HCl) Remove B/Sulphates Calcium Chloride 240 (CaCl2) Convert to carbonate Soda ash (Na2CO3) 760 Plant Amortization N/A 1,067 Total 2,267 (at Mg:Li of 1:1) Variable cost per 1,200 (at Mg:Li of 1:1) tonne Reference: Byron Capital Markets
  17. 17. Sources of Lithium - Pegmatites 2. Pegmatite Wall Rock Coarse-Grained Granite Intermediate Occurs as Intrusive Dike Can Be Strongly Zoned Core Associated with Other Crystal Growth Rare Elements Intermediate Layered Wall Rock Spodumene Pegmatite
  18. 18. Pegmatite Source Cont‟d Deposit Grade Ranges 1-2% Lithium with Economics Assisted with Other Rare Metals Present such as Cesium, Tantalum, Rubidium, Niobium, etc. Mined by Traditional Hard Rock Methods (Open Pit) To process: Heat to 1,000 celsius, pulverize & dissolve with sulfate and series of acid – finally mixed with soda ash Giant Spodumene Crystal Greenbushes Open Pit Mine
  19. 19. Spodumene Production Cost Breakdown Process Step Chemical / Driver Cost Cost ($/tonne Li2CO3) Extract ore N/A <1,200 Spodumene N/A 500 Calcining Oil 230 Pulverizing N/A 100 Concentrate Leaching Sulfuric Acid (H2SO4) 585 Washing Water 0 Convert to Carbonate Soda Ash (Na2CO3) 505 Plant Amortization N/A 3,333 Total <$6,453 Variable Cost/Tonne <$3,120 Reference: Byron Capital Markets
  20. 20. Estimated Cost of Lithium Production Type Brine Spodumene Variable cost (tonne Lithium Carbonate) $1,200 $3,120 Includes all reagent costs at Mg:Li of 1:1 Total amortized cost $2,267 $6,453 (tonne LCE) before any other credits. This accounts for fixed costs of plants and operations Reference: Byron Capital Markets
  21. 21. Lithium Price Trend
  22. 22. Demand vs. Supply • Roskill and Byron expects 40% increase in demand by 2014 • Electric cars and automotive industry all reporting switch to lithium-ion batteries – new standard emerging • Majority of Production from Brines • Brines Sources are not Static – Increase of Production has the Possibility to Damage Aquifer • Brines Cannot Quickly & Easily Respond to Demand Increase • Hard Rock Mining still relatively expensive & time to start up is years from resource identification • Hectorite Clays – unproven but promising future source
  23. 23. May 2010
  24. 24. Corporate Structure TNR Gold Corp. Project Unlocking TNR:TSXV Generator The Value 3 Subsidiaries Planned Minera Solitario Bristol Exploration Spin-off Target of Lithium Argentina Projects Alaskan Projects Completion Subsidiary Cu-Au Au Q2 2010 TNR Shareholders proposed dividend International Lithium Corp up to 1 unit in ILC for every 4 shares of TNR Li + REE TNR to maintain a minimum of 25% interest in ILC  Opportunity to participate at early stage in tightly controlled company  Exposure to „Lithium and Rare Earth Elements‟ growth sector  Warrant provides potential future benefit at no additional cost  Continued investment in TNR a Lead Project Generator
  25. 25. Projected Structure - International Lithium Corp. Corporate Data* June 8, 2010 established Shares issued: 60 M Fully diluted: 123 M as the meeting date for Cash: $ 2.5 M shareholder approval of the Market Cap**: $ 15 M spin-out of ILC TNR Ownership: 30% Insider Ownership: 26% Management and Directors Gary Schellenberg, B.Sc. (Geol.) - Executive Chairman, CEO Kirill Klip, MBA - Non-Executive Chairman Mike Sieb, MBA , B.Sc (Geol.) – President and Director Wayne Spilsbury, B.Sc, M.Sc - Director Bernard Dewonk, B.Sc, P.Geo - Director Jerry Bella, CGA – CFO * Subject to any increase resulting from John Harrop, P.Geo - Chief Geologist further possible share issuances by Dr. Frederick Breaks, P.Geo - Special Adviser TNR prior to the record date and Thomas Currin – Special Adviser including the potential exercise of the Jerry Huang, B.BA – VP Corporate Development Mariana property option. ** Estimate at listing
  26. 26. Expertise – Specialised Team Ike Osmani, P. Geo, Chief Geologist John Harrop, P. Geo, Senior Geologist 26
  27. 27. Project Selection 9 Projects Worldwide Geographic and Commodity Diverse Actively Sourcing Additional Opportunities And Strategic Partnerships 27
  28. 28. Andean Salars – Salta Province Argentina 28
  29. 29. Mariana Project – Brine Sampling Potential Low-Cost Source of Lithium • 120 km2 covering entire salar • 100% Option • 2km sample grid – shallow pits • Results Range 250-650 mg/L lithium throughout main salar • Current producers range from 150-1500 mg/L of Lithium • Ability to rapidly advance project through drill stage 29
  30. 30. Mariana Project – Geological Model Geothermal Conduits Generate Convection Currents Sourcing and Concentrating Identification of a Drop- Down Block Lithium Presents Ideal Brine Trap
  31. 31. Mariana Project - Proposed Drill Holes Initial Drill Program Consists of 3 Holes 100 metres Depth Testing Different Regimes Within Salar
  32. 32. Exploration Program – Mariana Project Subsequent 12 2010 Months Decision Process Decision Process Drilling Drilling Pre-Feasibility Re-sampling (10-20 Holes) (3 Holes) to Feasibility Geophysics 32
  33. 33. Nevada Lithium Brine Projects - ILC Silver Peak Chemetall-Foote‟s Clayton Valley lithium brine operation has been producing since 1967 ILC currently has 3 active lithium brine projects totaling 5,300 hectares in this highly prospective area 33
  34. 34. Clayton Valley Brine Occurrence A A’ Bouger Gravity Contour Map Clayton Valley, Esmeralda County
  35. 35. Nevada Brine Model – Clayton Valley A A’ General cross section of Clayton Valley with its fault planes and possible groundwater flow (modified from Davis et al., 1986)
  36. 36. Mud Lake Project, Nevada Typical Nevada Valley Target Geology 2,900 hectares Probable Fault Escarpment Mud Lake Looking W
  37. 37. Mud Lake– Exploration Approach Compile and Interpret Historic Data Model Built on Proximity Work by USGS and Third Party Gravity Survey Interpretation Indicates Faulting and Gravity Interpreted Low Structure Drop Blocks MUD LAKE PROJECT AREA
  38. 38. Mud Lake– Interpreted Model MUD LAKE PROJECT AREA Claims Selected Over Postulated Basement Lows Reflecting High Potential Brine Traps
  39. 39. Exploration Program - Nevada 2010 2011 Geophysics Drilling Properties (Gravity) (2-3 holes) 1 2 Feasibility? 3 Mud Lake Geophysics Commencing April 2010 Followed by Systematic Exploration Approach For All Nevada Projects 39
  40. 40. Pegmatite Projects
  41. 41. Proven Business Model “Lead Project Generator” • Early Identification and Acquisition of Opportunities • Advancement Provides Maximum Value Increase Over Minimum Period for Minimum Cost • Utilize Strategic Joint Venture Partnerships to Facilitate Rapid Multi-Project Development, Mitigate Risk and Add Strength • Continued Evaluation and Incorporation of New Properties into Project Pipeline 44
  42. 42. Contact Information Address Investor Relations P.O. Box 11604 620 - 650 West Georgia St. Jerry Huang Vancouver, British Columbia TNR Goldcorp V6B 4N9, Canada Phone: (604) 687-7551 Phone: (604) 687-7551 Fax: (604) 687-4670 Fax: (604) 687-4670 Toll Free: 1-800-667-4470 Toll Free: 1-800-667-4470 E-mail: E-mail: 45
  43. 43. Disclaimer The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this presentation. Statements in this presentation other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company‟s future plans and objectives or expected results, are forward-looking statements. This presentation contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company‟s business, including risks inherent in resource exploration and development. As a result, actual results might vary materially from those described in this presentation. Readers should verify any & all claims and do their due diligence before investing in any securities mentioned. Investing in securities is speculative and carries a high degree of risk.