Day 1 - Session 1: Strategic Metals and the Clean-tech Revolution


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Day 1- Session 1: Strategic Metals and the Clean-tech Revolution

Objective Capital Global Mining Investment Conference 2010
Stationers' Hall, City of London
28-29 September 2010
Brian Wesson - Woulfe Mining
Gary Billingsley - Great Western Minerals
Jay Chmelauskas - Western Lithium
Siegfried Konig - Vecor

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Day 1 - Session 1: Strategic Metals and the Clean-tech Revolution

  1. 1. day 1 – Session 1: Strategic metals and the clean-tech revolution ? <br />Outlook for TungstenBrian Wesson – CEO, Woulfe Mining<br />Outlook for Rare EarthsGary Billingsley – Exec Chairman, Great Western Minerals<br />Outlook for LithiumJay Chmelauskas – President, Western Lithium Corp<br />Recycling fly-ash waste – turning grey into greenSiegfried Konig– CEO, Vecor<br />
  2. 2. GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organisations:<br />
  3. 3. REBIRTH OF THE KOREAN<br /> MINING INDUSTRY<br />Brian Wesson, CEO and President<br />September 2010<br />
  4. 4. Disclaimer <br />Statements in this presentation other than purely historical information, including statements relating to Woulfe Mining’s future plans, objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to the risks and uncertainties inherent in Woulfe Mining’s business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements. Note that Woulfe Mining refers to historical resource estimates in this presentation. Source, date, relevance, reliability and explanations on categories are presented with the historical estimates.<br />A qualified person has not done sufficient work to classify the historical resources as current mineral resources. The issuer is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon.<br />This PowerPoint presentation was prepared to assist interested parties in making their own assessment of Woulfe Mining and its mineral properties, and does not purport to contain all of the information that a prospective investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company, its assets and the information provided in this presentation. Any and all statements, forecasts, projections and estimates contained in this presentation are based on management’s current knowledge and no representation or warranty is made as to their accuracy and/or reliability. <br />Unless otherwise stated, all resource and reserve estimates in the document are historical in nature and do not comply with the current NI 43-101 reporting standards.<br />
  5. 5. Korea ..... Open for investment<br />World’s 11th largest economy, low credit risk rated by Moody as A1, IMF forecast economic growth 6.1% <br /><ul><li>Developed economy
  6. 6. Safe destination with daily flights from most capital cities around the word.
  7. 7. Advanced financial and legal system.
  8. 8. Security of title
  9. 9. 100% foreign ownership and directors
  10. 10. 10 year write down of capital
  11. 11. No government royalties
  12. 12. Corporate tax rate 20%
  13. 13. Strong banking sector with moderate rates.
  14. 14. Located in heart of economic Asia</li></li></ul><li>Woulfe Mining.... Near term diversified miner<br />Core Projects<br /><ul><li>Sangdong tungsten-molybdenum mine, historically, one of the largest tungsten mines in the world.Focus of Scoping study March 2009
  15. 15. Sangdong molybdenum stock-work, virgin lodes identified to have high grade veins at 5 to 10 times the molybdenum grade in main lode.
  16. 16. Muguk gold-silver mine, historically South Korea's largest gold mine mines at 11 grams.</li></ul>Growth Projects <br /><ul><li>Uranium, vanadium exploration
  17. 17. Lead, zinc founding mine Korea Zinc developed
  18. 18. Tungsten project, historical u/g mine </li></li></ul><li>7<br />Tungsten.... Driven by world expansion<br />High tech applications in nuclear and fusion applications<br />60% demand for tool tips used in manufacture<br />Wear resistant materials<br />7<br />
  19. 19. 8<br /> Why invest in Tungsten?<br />Supply Tightening with changes in China<br /><ul><li>Traditionally produced 80% of the world’s tungsten products.
  20. 20. Strategic metal under quota.
  21. 21. Buying on the open market forcing prices up.
  22. 22. Taxing export and wages rising
  23. 23. Buying projects and refineries</li></ul>Source Roskill/ Wolfram<br />Moly has been over $40/lb <br />30% price increase<br />APT has been to US$600 mtu in 2010 terms<br />8<br />
  24. 24. 9<br /> Why ..Woulfe (TSX-V WOF)?<br />Strong Institutional Shareholders: <br /><ul><li> Colonial First State 16%
  25. 25. Resinco Capital Partners 12%
  26. 26. US Global 9.9%
  27. 27. Se Woo Mining Korea 9.9% (Vendor)</li></ul>Issued Shares : 214,292,250<br />Warrants : 60,638,000<br />Options : 7,525,000<br />Fully Diluted : 282,455,250<br />Liquidity – Ave Vol (3M) 540K<br />Current share price : C$ 0.11 cents<br />Current Cash position: C$3.5 million<br />Debt: none <br />Management – holds warrants and options <br />Company valued : C$23 million market cap. vs Sangdong scoping NPV C$480 million, IRR 26.6% DCF 8%. Objective Capital values Woulfe C$0.90 to C$1.90/share<br />Strategically placed in market with no affiliation giving large optionality<br />
  28. 28. 10<br />Key Results March Scoping Study Wardrop Eng<br />Base case assumptions<br /><ul><li>Tungsten - Ammonium Paratungstate (APT) Price US$250 /mtu – Current price US$243/mtu (US$24,300/tonne)
  29. 29. Molybdenum – US$15.00 per pound
  30. 30. 2.5 million tonnes milled per annum
  31. 31. Production APT 6000 tonnes per annum: (Gross US$146 million/annum)
  32. 32. Mine life 15 years mining with resources base sufficient for 40 years.
  33. 33. Resource based on foot wall vein, dilution 15% and 95% extraction factor
  34. 34. Assumes all new infrastructure</li></ul>Scoping results<br /><ul><li>C$480 million Net Present Value (NPV) at 8% discount rate.
  35. 35. 26.4% Internal Rate of Return (IRR)
  36. 36. 3.4 years payback on US$ 289 M capital
  37. 37. Scoping study break even at an APT price US$167/mtu
  38. 38. Direct operating costs of $ 32.50 /t processed</li></li></ul><li>11<br /> Woulfe’s Advantage in Market<br /><ul><li>China, becoming net importer and Woulfe has a strategic position, price rising.
  39. 39. Woulfe is the most feasible project our only large competitor of similar size is North American Tungsten in the ice with high build cost
  40. 40. Large skarn deposits are more economic than vein deposits.
  41. 41. Short development cycle due to extensive existing infrastructure ( mine development ,roads, water, power and established mine town.
  42. 42. Known mineralization, mine-ability and metallurgy
  43. 43. Woulfe has a Mine Development License and has reopened the mine.</li></ul>11<br />
  44. 44. 12<br /> Sangdong is the world’s No. 1 tungsten deposit outside of China<br />Focus of scoping study<br />1,000 m strike each vein about 7 metres thick<br />Close on 900 drill holes in the project with 40 years of underground mining of main vein<br />900 drill holes<br />40 drill holes<br />
  45. 45. 13<br />Sangdong Mine Crossection<br /><ul><li> Site offices established
  46. 46. Site accommodation secured
  47. 47. Re-establish Sangdong level progressing well
  48. 48. Drilling machine to be on site next month for definitive mine planning</li></li></ul><li>14<br />Sangdong Project Development Time Table<br />TO PRODUCTION<br />First half - delivery of full bankable feasibility study or go to build<br />Evaluation of full development 2013 or Phase 1 in 2011<br />September – Development plan focusing of mining 600,000 tonnes at a target grade of 0.6% W03 and 0.04% MoS2 and expanding to 1.25 million in year 3<br />September – Reserve drilling areas above valley floor approx 3600m<br />August – re-opening Sangdong mine main level and prepare for drilling<br />July – setup site facilities offices accommodation and secured mine equipment<br />June – Underground mine reopened and first access for 18 years<br />June - Mine Development Licence approved by state government<br />June - appointment of Wardrop engineers for full phase 2 bankable feasibility<br />January-April deliver positive independent scoping study C$480 million NPV<br />December took control, secured assets and cleaned company<br />2010<br />
  49. 49. 15<br /> Sangdong=Long Term Value <br />The scoping study by Wardrop proved that this is a long life economic project that has robust economics and is approaching development.<br /><ul><li>Strong project economics and long life asset
  50. 50. Low technical risk
  51. 51. Low capital requirements
  52. 52. Short time to production
  53. 53. Ease of build
  54. 54. Supportive modern government
  55. 55. Market on our doorstep</li></li></ul><li>16<br /> Muguk Gold Project <br />Korea’s largest historical gold deposit. In 1994 KORES calculated a historical non NI 43-101 compliant *620,000 oz at a gold grade of 13.5 g/t and 3.3 Moz at a silver grade 78.6 g/t.(historical resource non compliant JORC and NI43-101)<br />What makes this an exciting project?<br /><ul><li>Life-of-mine head grade 11 g/t producing 250 t of gold at a cut off of 10g/t leaving sub 10 g/t in situ
  56. 56. Historical target below 400 m in developed mine and open down dip.
  57. 57. Large goldfield over 2 km strike with 9 veins.
  58. 58. Over 1,000 historic face grades were sampled in 1994 at better than an ounce.
  59. 59. Current mine plans have been located and are being modeled.
  60. 60. Recent drilling located the No 7 Vein, substantiating the old data at grades consistent with what was expected. Historical grades vary from zero to 384 g/t.
  61. 61. Sample 1327 414.3m to 415.3m-3.3 g/t gold, 14 g/t silver
  62. 62. Sample 1328 415.3m to 416.3m-7.8g/t gold , 38g/t silver</li></ul>*non NI43-101 compliant and cannot be relied on <br />
  63. 63. 17<br /> Muguk Gold ...Korea’s largest gold mine<br />Historical resource area being modelled<br />600 metre depth<br />Current drill site collar drilling Vein 7 & Vein 8 <br />Lodes open at depth <br />Projected vein being drilled<br />Yuil operating small mine<br />
  64. 64. 18<br /> Woulfe’s Experienced Team <br /><ul><li>Brian Wesson CEO/ President FAusIMM, FAICD, MBA
  65. 65. Mark Gelmon CFO
  66. 66. Amelia Wesson Director/ VP Admin. Corporate
  67. 67. Bill Kable VP Technical
  68. 68. Dr Kevin Kartun VP Business Development IR
  69. 69. Mr Wan Shin Chief Operating Officer Korea ex Marketing Manager</li></ul> who was based in Zurich<br /><ul><li>Advisor Dr Kun-Joo Moon, PhD from Tasmania on the Sangdong deposit
  70. 70. Advisor Mr Bog-Gon Kim 30 years service Korean Tungsten at Sangdong, becoming GM
  71. 71. Advisor Kwan-Yi Jeong 5 years as GM Muguk Gold to closure 1997.
  72. 72. Colin Lutherborrow MAusIMM Resource geologist
  73. 73. Alind Nand Geologist MSc Tasmania 15 years Emperor Mines Tech. Service Manager</li></li></ul><li>19<br /> Value Creating Board Members<br /><ul><li>Brian Wesson CEO/ President, Representative Director Korea –Engineer with 30 years’ experience South Africa and Asia Pacific managing and building mines. Westech International took over the Emperor mine assets in Fiji restarting the mine and listing London. Brian has an MBA, Fellow of the Australian Institute of Mining and Metallurgy and Fellow of Australian Institute of Company Directors.
  74. 74. Amelia Wesson Vice President Administration and Director Korea- Principal of Westech who was instrumental in working with governments and staff to restructure the Vatukoula Mine from 2,200 staff to 700 and induct and retrain the staff. Amelia previously worked in companies servicing the large mines in South Africa giving her an excellent understanding of personnel and administration.
  75. 75. John Icke Director over 12% shareholder , John has over 25 years’ global management experience in both the private and public sector. Currently CEO of Resinco Capital Partners Woulfe’s second largest shareholder.
  76. 76. Hubert Marleau, Director is Chairman, Co-Founder and Director of Palos Capital Corporation. With over 30 years of experience in the business and financial community, Hubert has been Governor of the Toronto, Montreal and Vancouver Stock Exchanges, and a director of the Investment Dealer Association of Canada.
  77. 77. Dr Kevin Kartun, Director and now to VP Business Development IR. Kevin holds a PhD in geology and has 30 years experience in the mining industry and extensive experience as a broker and in investor relations.</li></li></ul><li>20<br /> What makes Sangdong so attractive?<br />Undervalued M cap C$23 million @ C$0.11 per share, against Scoping NPV C$480 million or C$2 per share<br />Robust long life project > 15 years life. <br />Low risk as mineralisation known, mined and metal recovered.<br />Scoping study is considered conservative .<br />Mining Licence approved, underground was accessed in reasonable condition<br />Opportunity to accelerate development<br />Feasibility underway<br />Tungsten market resilient and tightening<br /> APT prices , 30% in last 12 months.<br />Sangdong is well positioned to return as the world’s largest low cost tungsten mine <br />Sangdong has potential to be commissioned in 2012<br />Upside in Molybdenum and by products bismuth, gold and potential for fluorite.<br />Value <br />Growth<br />20<br />
  78. 78. 21<br /> Investment Case.. <br /><ul><li>Undervalued – C$23 million market cap vs NPV C$480 million on skarn project, with near term development opportunities in tungsten, molybdenum, bismuth and gold.
  79. 79. Low Ownership Risk-Security of title, 100% owned projects/ foreign ownership/ foreign directors, sophisticated country which outgrew China last year
  80. 80. Experienced Management Team in mine development and operation complimented by experienced professionals from former Korean Tungsten team
  81. 81. Aggressive Development schedule to optimise return
  82. 82. Low Project Risk mine was mined and metals recovered
  83. 83. Strong pipeline of diversified advanced projects with known mineralisation
  84. 84. Close to markets and in heart of world’s economic power house
  85. 85. Strategic play with institutional shareholders and no off take or affiliation
  86. 86. Strong market fundamentals across all of target metals, tungsten, gold and molybdenum</li></li></ul><li>22<br />Brian Wesson President /CEO<br /> +61414406611<br />For more information <br />Kevin Kartun VP Business Development IR<br /><br />Mob +61413806353<br /><br />Corporate office Canada<br />Marion McGrath Corporate Secretary<br />408-837, West Hastings Street,<br />Vancouver, BC, V6C 3N6, Canada.<br />Tel +1 604 684 6264<br />Fax +1 604 684 6242<br /> Contact details<br />BOOTH 7 <br />
  87. 87. GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organisations:<br />
  88. 88. TSX.V: GWG / OTCQX: GWMGF <br /><br />OUTLOOK FOR RARE EARTHS<br />Objective Capital Global Mining Investment Conference<br />September 28, 29 2010 London, UK<br />
  89. 89. Safe Harbour<br /><ul><li>Cautionary Note On Forward-Looking Statements
  90. 90. "Forward-looking statements include, but are not limited to, statements regarding projected processing capacity, output and revenue, GWMG’s continued advancement of its mineral exploration, projects, processing operations and business plans.  When using this presentation, the words “potential”, “anticipate”, “estimate”, “forecast”, “believe”,  “expect”, “may”, “project”, “plan” and similar expressions are intended to be  among the statements to identify forward-looking statements."
  91. 91. Although GWMG believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Readers are advised to refer to GWMG’s current Annual Information Form available at for a full description of risk factors.
  92. 92. GWMG shall not be liable or responsible for any claim or damage, directly or indirectly, special or consequential, incurred by the user arising out of the interpretation, reliance upon or other use of the information contained in this presentation.</li></ul>2<br />
  93. 93. Fully Integrated Production Model<br />ALLOY SALES<br />LCM/GWTI ALLOY PROD’N<br />RE METAL SALES<br />METAL MAKING<br />REO SALES<br />SEPARATION<br />BY-PRODUCT SALES<br />PROCESSING<br />MINING<br />EXPLORATION<br />Enterprise profitability increases with each stage of processing<br />3<br />
  94. 94. What Are Rare Earth Elements?<br /> Unique optical and magnetic properties<br />LREE<br />HREE<br />4<br />
  95. 95. Where Are Rare Earth Elements Used?<br />Vital to our standard of living<br />5<br />
  96. 96. World Mine Production and Reserves(tonnes REO)<br />Source: USGS Mineral Commodity Summaries, January 2010<br />6<br />
  97. 97. Global REE Demand Rising Rapidly<br />7<br />
  98. 98. Rising Demand For REE’s and ApplicationsIncreased REE Demand Comes From China <br />6<br />8<br />Source: Lynas Corp. using data from industry participants, Roskill & IMCOA<br />
  99. 99. China: Export Quota ReductionsChinese Rare Earth Export Quotas 2004 to 2009 (tonnes REO)<br />Source: 2005-2009, IMCOA; 2010, Metal Pages<br />9<br />
  100. 100. REO Prices Over The Last 12 Months<br />CeO2 US$/t<br />Dy2O3 US$/kg<br />La2O3 US$/t<br />Nd2O3 US$/t<br />Sm2O3 US$/t<br />Eu2O3 US$/kg<br />Source: Asian Metal<br />10<br />
  101. 101. If Not China Then Where?Sample of Known RE Deposits<br />Source: Mariano<br />11<br />
  102. 102. Global Rare Earth Projects Under Development<br />A limited number of Rare Earth deposits with 2014/2015 production potential<br />Thor Lake TSX:AVL<br />Kvanefjeld ASX:GGG<br />Bayan Obo China<br />Hoidas Lake TSXV:GWG<br />Kutessay-TSXV:SRU<br />Mianning<br />Mountain Pass, CA Molycorp<br />Ionic Clays<br />Dong Pao-Sojitsu/Toyota Vietnam<br />Nolan’s Bore ASX:ARU<br />Steenkampskraal TSXV:GWG<br />Mount Weld ASX:LYC<br />Dubbo ASX:ALK<br />Potential Production by 2014/2015<br />Potential Production by 2012/2013<br />12<br />
  103. 103. Global Rare Earth Projects Under Development<br />Honourable Mention: Production 2015+ ?<br />Sarfartoq TSXV:HUD<br />Nora Karr TSXV:TSM<br />Strange Lake TSXV:QRM<br />Bokan TSXV:UCU<br />Bear Lodge TSXV:RES<br />Wigu Hill Montero (private)<br />Kangankunde ASX:LYC<br />Zandkopsdrift Frontier (private)<br />13<br />
  104. 104. Where Will Rare Earths Come From?Supply Sources (t REO)<br />14<br />Source: 2005-2009, IMCOA; 2010, Metal Pages and Lynas Corp.<br />
  105. 105. Projected Shortages 2014<br />15<br />Source: IMCOA; Lynas Corp.<br />
  106. 106. Attributes: Current RE Projects<br />Source: IMCOA, Company filings, websites and industry journals<br />16<br />
  107. 107. Optimistic Supply/Demand Imbalance 2014<br />FOR NdFeB MATERIALS IT WILL BE CLOSE!<br />17<br />
  108. 108. OBSERVATIONS<br />There is definitely a need to develop RE sources outside China for PM materials. It’s prudent for both China and ROW.<br />In the long term there are likely enough RE resources to supply the global RE market.<br />Sources of PM materials are likely to remain tight in the near term given that it takes 7 to 10 years, on average, to bring mining projects on stream, (in mining-friendly jurisdictions!).<br />The world likely does not need any more large “LREE” projects. The focus should be on projects that can supply significant “HREE” per tonne mined. Balance is important.<br />It is not enough just to bring RE sources on stream. We must also develop separating and metal making capability.<br />18<br />
  109. 109. TSX.V: GWG / OTCQX: GWMGF <br /><br />THANK YOU<br />
  110. 110. GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organisations:<br />
  111. 111. Western Lithium<br />September 2010<br />“Outlook for Lithium”<br /><br />
  112. 112. Kings Valley Lithium Project<br />Cautionary Statement<br />This presentation contains projections and forward looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking statements are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.<br />45<br />
  113. 113. China Overtakes USA in 2009<br />Automobile Production and Sales<br />Source: Wikipedia; Associated Press; US Bureau of Economic Analysis<br />46<br />
  114. 114. Oil Consumption for Emerging Economies<br />China/India can expect a 10 to 20 fold increase <br />Source: Marc Faber<br />47<br />
  115. 115. $280 Billion<br />(Auto’s, Electronics)<br />This Decade… Major Multi-National Companies will Depend on Lithium Producers<br />$70 Billion<br />(Batteries)<br />$1 to 3<br />Billion<br /> (Lithium)<br />48<br />
  116. 116. Worldwide Lithium Production 2008<br />USA<br />1 deposit<br /> 3,700 T<br />China - Multiple deposits<br />9,900T<br />Chile & Argent. - 2 deposits<br />71,000T<br />Australia<br />1 deposit<br />28,700T<br />Source: Roskill 2008<br />49<br />
  117. 117. Quotes<br />“Demand will be so big there will have to be new sources of supply….”<br /> Rockwood (Chemetall) Holdings Chairman &CEO, Seifi Ghasemi – Feb. 2010<br />“We have begun to look for our next source of lithium to be ready [by the middle of the decade]” <br />FMC Corp President, Pierre Brondeau - July 2010 <br />"We are one of the largest and most responsible companies in the world, so we are always looking at options….. If we don't move fast enough, we will miss our chance,“<br />SQM president , Patricio de Solminihac – Aug. 2010<br />50<br />
  118. 118. World Lithium Resources<br />Western<br />Lithium<br />Producing<br />Development Projects<br />M Tonnes LCE<br />No Development Plans<br />Source:  R. Keith Evans, 2010; Roskill Information Services<br />Ltd., 2009 for China; and company disclosures.<br />Estimates are not NI 43-101 compliant.<br />51<br />51<br />
  119. 119. Estimated Lithium Supply and Cost Curve<br />Includes Announced Producer Expansions <br />Spodumene<br /> (hard rock) Mines1,3<br />Chinese Salars4<br />Uyuni, Bolivia4<br />7<br />Argentinean <br />(silty clastic) Salars3<br />6<br />5<br />000s $/Tonne Estimated Production Cost<br />Atacama (halite) Salar1,3, Chile<br />FMC1,3, Argentina<br />Western Lithium Nevada2<br />Est. Cost Range<br />4<br />000s Tonne/pa LCE<br />3<br />2<br />1<br />400<br />500<br />300<br />200<br />100<br />000s Tonne/pa LCE<br />2008 World Production1<br />Incremental demand from 5% EV and 10% Hybrid adoption5<br />Incremental demand from 10% EV and 20% Hybrid adoption5<br />Roskill 2009. (2) WLC PAEE, Jan. 2010. (3) Company <br />Estimates for selected proposed projects. (4) Analyst Estimates. (5) Canaccord Adams.<br />52<br />52<br />
  120. 120. Market Opportunity – Explosive Growth <br />Est. World Market<br /> with EV's<br />Demand - Tonnes LCE (000’s)<br />Price - US$/Tonnes LCE<br />Price<br />Demand<br />Est. World Market<br />with 5.9% CAGR<br />(no EV’s)<br />Financial<br />Crisis<br />World Lithium Market<br />Potential World<br />Lithium Market<br />Source for Market Size: Roskill 2009 for historical demand; Canaccord Adams for projections (No EV <br />scenario includes 12% annual growth in electronic use and 4% growth in industrial use). Source for Pricing: Industrial Minerals. Lithium carbonate, del continental, USA large contracts, US$ per lb, high.<br />53<br />
  121. 121. Western Lithium in Nevada<br />54<br />
  122. 122. Highlights of Stage I Scoping Study<br />Proposed Project Expected Low-cost LCE Producer<br />Planned production: 27,700 tpa LCE 115,000 tpa potassium sulphate (SOP)<br />Cash operating costs: $1,967 per tonne ($0.89/pound) LCE<br />(after SOP by-product credit) <br />Average annual revenue: $263 million<br />NPV (discounted at 8%): $714 million<br />IRR (pre-tax): 28%<br />Capital costs: $427 million<br />Operating Life: 18 years (with expansion potential)<br />NI 43-101 compliant Preliminary Assessment and Economic Evaluation (PAEE). All above figures in U.S. dollars.<br />55<br />
  123. 123. Stage I Development Timeline<br />56<br />2008<br />2009<br />2010<br />2011<br />2012<br />2013<br />2014<br />Resource<br />Delineation<br />Engineering Scoping &<br />Feasibility Studies<br />Pilot Testing<br />Permitting<br />Detailed Engineering<br />& Construction<br />Commissioning<br />56<br />
  124. 124. Western Lithium Corporation<br />USA-Based Lithium to Power Today’s Electric Cars <br /><ul><li>$16.5 Million Cash (Cdn)/No Debt
  125. 125.  $6.5 Million In-The-Money Warrants
  126. 126. 82.8 Million Shares Outstanding
  127. 127. 111.4 Million Fully Diluted
  128. 128. 23.7% owned by Western Uranium
  129. 129. Market Cap. $93 million (Cdn)</li></ul>WLC Share Price<br />57<br />
  130. 130.<br />Email:<br />Western Lithium Investor Relations: 1-604-681-3071<br />Exchange Symbols: TSX-V: WLC; PK: WLCDF<br />
  131. 131. GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organisations:<br />
  132. 132.
  133. 133. Forward Looking Statements<br />This disclaimer forms part of and is incorporated in the accompanying material.<br /> <br />No representation or warranty, express or implied is made, in relation to the accuracy or completeness of the information provided in this document or any other information concerning the Vecor Group otherwise provided to the recipients.  Whilst every care has been taken with preparation of the information contained in this document, no responsibility is accepted by the Vecor Group or any of its representatives, directors, partners, employees or professional advisers for any information provided in this document or otherwise provided to the recipients or for any action taken by the recipients on the basis of such information.<br /> <br />In particular, no representation or warranty is given as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in the information.  Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies.  Each recipient of the information should make its own independent assessment of the information and take its own independent professional advice in relation to the information and any action taken on the basis of the information.<br />
  134. 134. Vecor’s Vision<br />To be recognised as the<br />World Leader<br />in fly ash recycling <br />technologies by 2013<br />
  135. 135. Fly ash dump at power plant<br />
  136. 136. Energy from Coal<br />
  137. 137. Fly Ash Production vs Utilisation<br />Global Estimates: 1990 - 2030<br />Global Estimates: 1990 - 2030<br /><ul><li> Fly ash is captured from flue gas.
  138. 138. Trend towards higher enforcement of particulate emissions.
  139. 139. Reduces air pollution but increase fly ash volume. </li></li></ul><li> Current Fly Ash Useage<br /><ul><li>1 billion tonnes new fly ash every year
  140. 140. 10 billion tonnes legacy in landfill</li></ul>Fly Ash dam spill, Tennessee USA 2008<br />
  141. 141. Capability Development<br /><ul><li>2007Licensed core technology
  142. 142. 2007 – 2009 Developed Additional IP
  143. 143. 2009 – 2010Ceramics, Minerals
  144. 144. 2011Comprehensive Utilisation</li></ul>Pilot plant since February 2008, processing techniques, proprietary manufacturing equipment<br />Process & engineer fly ash to produce versatile raw materials. Manufacture “green” products using fly ash as clay replacement <br />Enabling 100% utilisation of waste fly ash <br />
  145. 145. Vecor Product Capabilities<br />High-margin “Green” raw materials & building products<br />Ceramic Tiles<br />Ceramic Proppants<br />Recycled Minerals<br />Refractories<br />Bricks<br />Pavers<br />Aggregates<br />Sand<br />Prototype products produced at Vecor’s pilot plants in China and Italy since February 2008<br />
  146. 146. Vecor’s Business<br />Recycle<br />Products<br />Minerals<br />Aluminum Silicates<br />VecoFillTM<br />Challenge<br />Ceramic Proppants Oil and Gas Industry<br />Coal Power Plant<br />Cenospheres<br />VecoCenTM<br />Fly Ash Landfill<br />Ceramic TilesBricks, pavers<br />Processing Facilities<br />MagnetiteVecoMagTM<br />Activated Carbon<br />VecoFiltersTM<br />Sand & Aggregates<br />Low-cost, high valueIndustrial Minerals<br />Energy Efficient <br />Clay Replacement<br />Proprietary recyclingtechnologies<br />Waste Fly Ash <br />
  147. 147. Why replace clay with fly ash?<br /><ul><li> Clay and sand have become increasingly precious
  148. 148. Same Chemistry
  149. 149. 30% Less energy & GHG emissions
  150. 150. 30% Saving in manufacturing costs
  151. 151. 14% Less water required
  152. 152. Superior quality products</li></li></ul><li> World First<br />
  153. 153. Development Plan<br />
  154. 154. Financial Model<br />
  155. 155. Why invest in Vecor?<br />Vecor gets paid to take the Fly Ash<br />Vecor gets paid by processing the Fly Ash & selling Raw Materials<br />Vecor gets paid by selling the products made from Raw Materials<br />Ceramic Tiles <br />Profitability<br />Sustainability<br />Growth<br />Proppants<br />Processing By-ProductsAluminum Silicates (Vecor Clay) Cenospheres (VecoCen) Magnetite (VecoMag) Activated Carbon (VecoFilters)<br />Sand &Aggregates <br />Revenue:<br />Vecor produces and sells commercial and industrial products using the Raw Materials with its proprietary technology and Engineering<br />Revenue:<br />Vecor Processes Fly Ash to make Raw materials for Industry and other mineral by-products that it sells to customers, partners and subsidiaries.<br />Vecor Products Tiles, Cladding, Bricks, Blocks, Pavers, Proppants<br />Revenue:<br />Vecor gets paid to take Fly Ash from Coal Power Plants, because it removes liability.<br />
  156. 156. Invitation<br />Siegfried Konig +44 7783 939 703<br /><br />
  157. 157. GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organisations:<br />