Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Niobium in the American heartland


Published on

Objective Capital's Rare Earths, Speciality & Strategic Metals Investment Summit 2011
Ironmongers' Hall, City of London
17 March 2011
Speaker: Peter Dickie, Quantum Rare Earth Devs

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

Niobium in the American heartland

  1. 1. RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT Niobium in the American heartland Peter Dickie – CEO, Quantum Rare Earth Devs IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 17 MAR 2011
  2. 2. March - 2011 Corporate Developments 2011
  3. 3. DisclaimerThis presentation includes projects the Company has acquired in addition to other projectswhich the Company is in the process of acquiring.Some of the statements and financial projections contained in the following material areforward-looking statements and not statements of facts. Such statements are based oninformation currently available and have not yet been verified by an independent QualifiedPerson.The statements that are not historical facts are forward-looking statements involving knownand unknown risks and uncertainties that could cause actual results to vary materially fromtargeted results. Such risks and uncertainties include those described from time to time inthe corporations latest annual and quarterly reports and management discussion andanalysis. The corporation assumes no obligation to publicly update any forward-lookingstatement, whether as result of new information, future events or otherwise.Where there is a historical resource estimate provided readers are cautioned that theCompany has not yet completed the work necessary to verify the classification of theresources and is not treating the resource figure as a NI 43-101 defined resource verified bya Qualified Person at this time and therefore the resource figures should not be relied uponby investors.
  4. 4. About Quantum• Quantum Rare Earth Developments is an exploration company with a focus on identification and acquisition of potentially economic deposits of niobium and rare earth elements in North America and elsewhere in the world.• Quantum’s premier project is the Elk Creek Carbonatite in Nebraska. This project is considered more advanced due to development in the 1970’s and 1980’s including over 100 drill holes by Molycorp. The primary focus of this property is niobium, with substantial intercepts of both rare earth elements and phosphate also encountered.• Archie Lake, Saskatchewan, is a rare earth exploration play with excellent surface results, with exploration underway• In Australia, Quantum has acquired two exploratory rare earth projects in the vicinity of Mount Weld.
  5. 5. Why Niobium?• High Strength Low Alloy (HSLA) steel• Superalloys used in the aerospace industry• “Green” technologies• U.S. imports 100% of supply• Niobium is considered a “strategic metal” by U.S.
  6. 6. Niobium Market• Worldwide demand has grown from under 30,000 tons to almost 80,000 tons in the past 7 years.• Only 10% of worldwide steel production contains niobium – expected to rise to as much as 20%• Developed countries utilize roughly 100 g/t of steel - while China only utilizes 40 g/t• China produces almost 40% of world steel, but currently consume a much smaller percentage of world Niobium production than their steel production would suggest, but they are expected to grow their Niobium consumption to match steel production• The industry is very profitable! Iamgold reports an operating margin of $19-21/kg on a sale price in the low $30’s per kg! CBMM (Brazil – private) reportedly earns over $1 billion per year!
  7. 7. Elk Creek Carbonatite Elk Creek, Nebraska Nebraska • Stable mining regulations • Excellent infrastructure
  8. 8. Elk Creek Carbonatite Mineralization – Niobium and Rare-Earths Niobium (Nb2O5) Highlights: (released February 22, 2011) -EC-11: •71.6m @ 1.19% -EC-16: 7 Kilometres •67.1m @ 0.91% 39.4 million tons of 0.82% - EC-29: Nb2O5 and is open to the north, west and at depth •201.2m @ 0.99% - EC-30: •36.6m @ 1.12% Rare Earth (REO) Highlights: (released March 7, 2011) •EC-93: •155.5m @ 2.70% •incl. 54.9m @ 3.30% •(historic) EC-53: •192 m @ 1.31% •incl. 33.5 m @ 2.09 •(historic) EC-43: •12.2 m @ 2.83%
  9. 9. Elk Creek Carbonatite Comparison - NIOBEC MINE, QuebecNIOBEC MINE ELK CREEK43-101 Proven & Probable Historic ReportedReserves: Resource :32 Mt @ 0.56% Nb2O51 39.4 Mt @ 0.82% Nb2O52•Niobium hosted within •Niobium hosted withinpyrochlore pyrochlore•4 kilometre alkaline •7 kilometre alkalineintrusive complex intrusive complex•Underground mining •Will be underground mining •Also has potential to host•1as reported 31/12/09 “mega-tonnages” of Lanthanides 3 •2Molycorp internal memo 05/02/86 not 43-101 compliant •3Molycorp internal memo 30/03/84 not 43-101 compliant
  10. 10. Elk Creek CarbonatiteProject Status and Potential• Historic resource estimate • 39.4 million tons of 0.82% Nb2O5 and is open to the north, west and at depth (Molycorp Inc. internal memorandum, Feb 05/1986). Not 43- 101 compliant • Several Rare-Earth zones • Molycorp completed over 150,000 ft of drilling – all core and data is available• NI 43-101 historic report is complete – Wardrop currentlycompleting new 43-101 resource report (Q1, 2011) using re-assays of historic core• Main Niobium zone is open to North, West and at Depth • Several additional zones need further exploration, which could dramatically increase tonnage• Rare Earth zones yet to be fully explored or drilled• Phosphate zones to be further tested
  11. 11. Elk Creek CarbonatiteElk Creek – What’s next?• Complete historic data compilation and digitizing;• Complete re-assaying of core to provide: • a modern resource calculation; • define drill targets for resource confirmation and expansion; • approximately 1/3 of Molycorp niobium zone core is currently being re-assayed – results in February, 2011.• Explore secondary drill targets for REE potential;• Continue to assemble the technical team for long termdevelopment of the project.
  12. 12. Why Rare Earths?• “Green” technologies such as fuel cells and electric-hybrid vehicles, wind mills• Permanent magnets, television screens, computer monitors, and other visual displays• U.S. is virtually a 100% importer, and funds are being sought to develop domestic sources• China produces over 97% of the worlds rare earths, and are continually cutting back on exports – a further 35% cutback from 2010 exports recently announced• Over $1 billion dollar industry, rapidly growing with technological advances
  13. 13. Archie Lake, Sask.
  14. 14. 2009 & 2010 Exploration Archie Lake, Saskatchewan • 2009 - Mineralization confirmed in all Sample 38395 29.9% REE+Y trenches, with chip samples up to 29.9% REE+Y, and an overall average of 3.8% for the 36 samples • 2009 - A total of 18 samples exceed 2% REE+Y, of which six exceed 5% REE+Y and three exceed 10% REE+Y. • Outcrop traced for 600 meters on • 2010 – Property wide aero-mag and surface, 5 to 6 meters in width extensive ground program recently completed, indicates strong possibility • Meta-sedimentary horizon of additional parallel targets believed to be of paleoplacer origin • 2011 – First Time drill program to begin shortly following compilation of results
  15. 15. Australian Acquisition• Jungle Well project 150km west of Mt. Weld• Laverton Projects 45 km’s north of Mt. Weld• Collectively, the projects represent an area of approximately 17,000 ha.
  16. 16. Jungle Wells• Evaluated for diamonds in 1990’s,• During 2007, a trench sampling programme identified significant REE values from an exposed dyke of 6.9% and 8% REE.• 2009 follow up sampling produced results of 5.7% and 8.3% REE. Laverton• The Laverton Rare Earth Project is located 45km north of Mt Weld and has two untested circular magnetic features.• Its important to note that rare earth mineralization occurs in residual regolith over a carbonatite plug at Mt Weld.• Carbonatite veins occur up to 5km from the main plug at Mt Weld which is surrounded by a 500 metre radius annulus of alkali metasomatism comprising alkali feldspar and biotite.
  17. 17. Management and Board of Directors• Peter Dickie - President, CEO and Director• Mr. Dickie brings over 20 years of business experience with both public and private companies holding numerous senior management positions. A graduate of both the University of British Columbia, and the University of Victoria (B.C.), his background includes 4 years in the Securities industry with Jones, Gable & Co. Currently, he sits on the board of several public companies in a fiscal and management advisory capacity.• James Allan, M.Sc. P.Eng - Director• Mr. Allan holds a BASc (Geological Engineering), from the University of British Columbia and a MSc (Geology, Engineering) from Queen’s University. He is a Registered Professional Engineer, belonging to the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA). As a geological engineer, Mr. Allan has over 45 years of experience with several major mining and petroleum companies and as an independent consultant in mining exploration and exploration management, mineral property evaluation and mining geology. He has conducted and managed exploration and evaluation programs for a wide variety of mineral commodities in Canada, the United States, Latin America, the Philippines, Malaysia, Australia and the former Soviet Union including Russia. Mr. Allan also has extensive experience in the exploration for, and evaluation of, rare earth deposits both as manager of exploration in Canada for a large rare earth company (Molycorp Canada) from 1982 to 1990 and as an independent consultant.
  18. 18. Management and Board of Directors• Mr. Claude Dufresne – Technical Advisor• Mr. Dufresne, Ing., graduated with a Bachelors degree in Mining Engineering from Laval University in 1991. Following his graduation, Mr. Dufresne started working with Cambior as a metallurgist. In 1996, he was transferred to Cambiors largest operation, Omai Gold Mines Ltd., located in Guyana, S.A before been promoted to Marketing Manager. After Cambiors acquisition by Iamgold Corp, Mr. Dufresne collaborated with Iamgolds Corporate Development group while continuing with its Sales & Marketing activities, which included niobium and bauxite. In January 2008, Mr. Dufresne started Camet Metallurgy Inc, a joint venture company with Iamgold, which is responsible for the worldwide Sales and Marketing of Iamgolds niobium from the Niobec mine. Mr Dufresne is a member of the Ordre des Ingenieurs du Quebec, and of the Tantalum & Niobium International Study Center (TIC).• Jody Dahrouge, P.Geo - Director• Mr. Dahrouge is a graduate of the University of Alberta with a Bachelors Degree in Science (Geology). Since 1998, he has been the President of Dahrouge Geological Consulting Ltd. a company he founded. He has worked on a variety of early stage through development projects worldwide including coal, industrial minerals, rare metals, base and precious metals, and uranium projects. His experience, insight and energy will provide tremendous value in the development of the Elk Creek and Archie Lake projects.• James McCrea, P.Geo - Director• Mr. McCrea has more than 20 years experience in exploration and mining geology, and 15 years experience in mineral resource estimation. Jim’s experience was gained through working for junior mining/exploration companies and engineering companies SRK and Snowden. His geological expertise ranges from technical review and due diligence to resource estimation and feasibility studies. Jim has experience in a range of commodities, but primarily gold, silver and copper, in a variety of geographic settings around the world with particular focus on Central and S. America. Having performed ore body modeling and resource estimation for the successfully targeted take over company Cumberland Resources Ltd. by Agnico-Eagle Mines Ltd. and more recently Mr. McCrea has completed mineral resource estimations underpinning ongoing or future feasibility studies for companies such as Silver Standard Resources Inc. and Candente Resource Corp. to mention but a few.
  19. 19. Management and Board of Directors• Erin Chutter – Director• Mrs. Chutter is the President and Founder of Puget Ventures Inc., a TSXV listed mineral exploration company advancing the Werner Lake Cobalt Mine in Ontario, Canada. She is also a founder and director of two private companies. Active in politics since the late 1980s, Erin has managed and advised campaigns at three levels of government, as well as party leadership races. She has also served on staff to federal and provincial ministers and leaders. Currently, she also serves on the national board of the Canadian Taxpayer’s Federation and the Macdonald Laurier Institute. She appears often as a political commentator on television and radio, including weekly on the heated Monday morning political panel on CBC Early Edition and regularly on the new website,• Mitchell Adam - Director and Secretary• Mr. Adam is President of MGA Capital Corp., a company which provides management consulting, corporate finance and investor relations services to public and private companies. Mr. Adam attended undergraduate studies at Simon Fraser University and in 1989 completed the Canadian Securities Course and RR exam. Mr. Adam spent four years working in the brokerage industry at Odlum Brown Ltd. and Nesbitt Thompson Inc. and has held the positions of director and officer of several companies since 1993.• Casey Forward - CFO• Mr. Forward is an independent CGA with over 20 years of experience in both private and public companies involved in mining and business development. Mr. Forward currently serves as a director or officer of several public companies involved in the mineral resource sector.
  20. 20. Quantum Website: Transfer Agent: Computershare Email: Vancouver, BC, Canada Auditors: Corporate Office: Davidson & Company Suite 1128 – 789 W. Pender St. Vancouver, BC, Canada Vancouver, BC Canada V6C 1H2 Legal Counsel: Telephone: 604 669-9330 Boughton Law Corporation Vancouver, BC, Canada Fax: 604 669-9335 Bankers: Shares Issued: TD Bank Current: ~ 79,790,000 Vancouver, Canada Fully Diluted: ~ 101,400,000 (would provide $6.3 million in additional funds) Cash: ~ $4.1 million
  21. 21. Quantum Rare Earth Developments Corp. TSX.V – QRE OTCQX – QREDF FSE – BR3March - 2011