Big North Graphite : Presenting at Global Online CEO Conference Small Stocks Big Money


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Big North is a graphite development and exploration company with projects in Mexico and Canada
Owns three past producing amorphous graphite mines in Sonora, Mexico
Currently test mining at the Nuevo San Pedro amorphous graphite mine.
Owns high quality large-flake graphite exploration target in Ontario

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Big North Graphite : Presenting at Global Online CEO Conference Small Stocks Big Money

  1. 1. 1  TSX – V NRT Discovering Graphite Opportunities in Mexico & Canada June 2014
  2. 2.   Cautionary Note Forward-­‐looking  statements   Certain  statements  contained  herein  cons/tute  “forward-­‐looking  statements.”     Forward-­‐looking  statements  look  into  the  future  and  provide  an  opinion  as  to  the   effect  of  certain  events  and  trends  on  the  business.    Forward-­‐looking  statements  may   include  words  such  as  “plans,”  “intends,”  an/cipates,”  “should,”  “es/mates,”   “expects,”  “believes,”  “indicates,”  “targe/ng,”  “suggests,”  “poten/al,”  and  similar   expressions.    These  forward-­‐looking  statements  are  based  on  current  expecta/ons  and   entail  various  risks  and  uncertain/es.  Actual  results  may  materially  differ  from   expecta/ons,  if  known  and  unknown  risks  or  uncertain/es  affect  our  business,  or  if  our   es/mates  or  assump/ons  prove  inaccurate.    Investors  are  advised  to  review  the   Company’s  Annual  Informa/on  Form  filed  at  for  a  detailed  discussion   of  investment  risks.  The  Company  assumes  no  obliga/on  to  update  or  revise  any   forward-­‐looking  statement,  whether  as  a  result  of  new  informa/on,  future  events  or   any  other  reason.  While  Big  North  intends  to  re-­‐start  the  Nuevo  San  Pedro  mine,  the   Company  has  not  established  mineral  resources  and  has  not  completed  a  valid  mining   study  (as  defined  by  NI  43-­‐101)  to  support  a  produc/on  decision.  Historically,  a   produc/on  decision  under  these  circumstances  results  in  much  higher  economic  or   technical  risk.  Furthermore,  without  a  pre-­‐  feasibility  or  feasibility  study  and  a  graphite   reserve,  there  can  be  no  assurance  that  opera/ons  at  Nuevo  San  Pedro  will  be   profitable.       2  
  3. 3.   Management & Directors v  Spiro  Kletas,  President  &  CEO,  Director  –  Over  10  years  experience  in  the  financial  industry  with  7  years  in  the  public  capital   markets,  working  for  several  Toronto  Exchange-­‐listed  companies  in  project  procurement,  corporate  development  and   financing.       v  Daniel  Bleak,  Chairman–  Mr.  Bleak  has  over  30  years  of  experience  in  mineral  exploraJon  and  has  developed  and  managed   a  broad  range  of  exploraJon  projects  throughout  North  America  and  Mexico.  He  has  been  instrumental  in  the  discovery  of   several  producing  mineral  deposits  and  has  developed  decoraJve  rock  and  industrial  materials  businesses  in  the  Southwest   United  States  and  Mexico.     v  Cesar  J  Guajardo,  Director  -­‐  Mr.  Guajardo  has  18  years  of  experience  in  graphite.  He  was  the  former  owner  and  Chairman  of   the  Board  of  Grafito  de  Mexico  SA  de  CV,  a  private  company  and  the  former  owner  of  the  El  Tejon  Flake  Graphite  Mine  and   Mill  in  Oaxaca,  Mexico.  Mr.  Guajardo  is  a  graduate  of  the  Universidad  de  Nuevo  Leon,  and  holds  a  degree  in  Industrial   Engineering.    Mr.  Guajardo  spent  22  years  with  Praxair  Mexico  and  was  the  former  Managing  Director  of  Praxair  Mexico  for   ten  years.     v  Andrew  Rees,  Director  –  Mr.  Rees  is  currently  President  and  CEO  of  WellStar  Energy  Corp.  and  sits  on  the  board  of  directors   of  several  publicly  trading  companies.  Mr.  Rees  brings  15  years  of  public  company  experience  having  been  involved  with   developing  projects  from  concept  to  producJon.  Mr.  Rees  has  been  directly  involved  in  raising  over  $150  million  for  junior   resource  companies.   v  Eric  Ostensoe  P.  Geo.,  Director  -­‐  Mr.  Ostensoe  is  a  consulJng  geologist  with  more  than  forty  years  direct  involvement  with   the  mining  and  mineral  exploraJon  industries.  Mr.  Ostensoe  supervises  property  exploraJon  and  development  projects   from  "grassroots"  to  advanced  stages  and  provides  recommendaJons  to  management  of  junior  and  medium  sized  public   companies.   v  Connie  Norman,  Corp  Secretary   3  
  4. 4.   Capital Structure •  Issued  &  Outstanding        73.4  m   •  Warrants            41.5  m     •  OpJons                  3.2  m     •  Fully  Diluted            118.1  million     4  
  5. 5.   Investment Highlights •  Currently  SELLING  amorphous  graphite  in  Sonora   Mexico  –  1163  tons  sold  to  date   •  Amorphous  graphite  accounts  for  approx  50%  of   natural  graphite  market  and  over  90%  of   producJon  was  out  of  China  in  2012  –  Big  North   is  only  TSX.V  company  pursuing  amorphous   graphite   •  Recently  acquired  the  El  Tejon  Flake  graphite   mine  and  mill  in  Oaxaca,  Mexico   •  Goal  of  near  term  FLAKE  graphite  producJon   5  
  6. 6.   El Tejon Flake Graphite Mine 6  
  7. 7.   El Tejon Flake Graphite Mine and Mill 7   • Acquired  Feb  2014   • Mexico’s  only  past  producing  flake  graphite  mine  and  floataJon  mill   • Closed  due  to  graphite  prices  in  2002   • Ability  to  jump  start  –  all  infrastructure  in  place   • Produces  flake  graphite  (different  uses  than  amorphous  graphite)   • Cesar  J  Guajardo,  Chairman  of  former  Private  Co    that  operated  El  Tejon,  named  to  Board  of  Big      North   • 18  years  of  graphite  experience  in  Mexico    
  8. 8.   El Tejon Flake Graphite Mine and Mill •  500  hectare  property  -­‐  consists  of  the  El  Tejon  flake  graphite  mine  and  mill     •  The  El  Tejon  Property  is  located  in  the  state  of  Oaxaca,  approx  38   kilometers  Northwest  of  the  City  of  Oaxaca,  in  the  town  of  San  Francisco   Telixtlahuaca.     •  The  El  Tejon  Property  is  the  only  flake  graphite  mine  to  have  produced  in   Mexico.     •  The  mine  and  mill  were  originally  built  in  1980  by  the  Government  of   Mexico.  In  1989,  a  second  processing  line  was  installed  to  increase  the   capacity.     •  El  Tejon  was  an  open  pit  mine,  and  the  mill  was  used  to  crush,  mill,  float,   dry,  screen  and  pack  final  product.     •  Closed  in  2002,  due  to  low  graphite  prices.  At  the  Jme  of  closing,   approximately  80%  of  the  graphite  produced  was  sold  to  the  USA.   •  Historically,  the  mine  produced  approximately  20%  large  flake  graphite   and  80%  medium  and  fine  flake  graphite.   8  
  9. 9.   Tesla and Graphite  “$5bn  ‘gigafactory’  to  spark  EV  uptake;  baQery  graphite  demand  could  double  in  6   years  with  no  growth  elsewhere”    “US  automoJve  giant,  Tesla,  has  revealed  plans  to  build  a  new  $5bn  lithium-­‐ion  bamery  (Li-­‐ion   bamery)  ‘gigafactory’  which  could  potenJally  increase  natural  graphite  demand  by  up  to  37%  by   2020.  The  factory,  which  is  forecast  to  start  producJon  by  2017,  is  expecJng  to  have  an  output  of   35  gWh/year  by  as  early  as  2020,  which  would  over  double  the  size  of  the  current  market.    Its   important  to  stress  that  the  plant  is  in  the  planning  stage  and  capaciJes  depend  strongly  on   market  demand,  but  Tesla  believes  it  can  be  the  market  leader  by  producing  low  cost  bameries  in   the  USA.  In  IM  Data's  calculaJons,  Tesla's  plant  -­‐  which  is  set  to  be  based  in  the  south-­‐west  USA  -­‐   will  consume  at  least  28,000  tonnes  of  spherical  graphite  every  year  if  operaJng  at  capacity.  This   equates  to  93,000  tonnes  of  flake  graphite  if  produced  to  today's  standards  which  sees  raw   material  wastage  of  up  to  70%.”       -­‐  Industrial  Minerals  esJmates  6  new  graphite  mines  needed  to  feed  Tesla’s  plant   -­‐  Bloomberg  reported  that  Tesla  plans  to  use  materials  sourced  from  North  America  only   -­‐  93K  t  of  flake  graphite  required  –  a  37%  increase  in  natural  graphite  demand     *  Source:  Industrial  Minerals   9  
  10. 10.   Sonora Mexico Properties •  Big  North  acquired  3  past  producing  graphite  mines  in  Sonora,  Mexico  -­‐                                                                       La  Fortuna,  Caraples  and  a  50/50  JV  in  the  Nuevo  San  Pedro  Graphite  mine.       •  Nuevo  San  Pedro  mine  in  the  process  of  being  re-­‐started:  Big  North  Graphite  to   accelerate  the  start-­‐up  process.*       •  Started  assembly  of  processing  facility  April  2013   •  Started  test  mining  May  2013   •  First  sale  completed  Aug  2013   •  Approx.  10  km  East  of  a  rail  line  with  direct  access  to  the  port  of  Guaymas   •  Area  of  good  infrastructure  and  access   •  Sonora  Mexico  has  produced  graphite  for  over  100  years   •  Approx.  50  km  SE  of  Hermosillo,  a  city  of  1  million  people   •  Nuevo  San  Pedro  is  approx  1km  away  from  the  La                Lourdes  graphite  mine,  which  has  been  operaJng                for  over  50  years   10  
  11. 11.   Sonora Mexico Property Map 11   •  Nuevo  San  Pedro  is  an   approximately  11  hectare  property.   It  is  a  past  producing  mine,  which  is   in  the  process  of  being  restarted.   •  Aki  Wiki  consists  of  approximately   145  hectares.   •  Aki  Wiki  is  located  approximately  1.5   kilometers  south  of  the  historic  El   Cochi  graphite  mine.    There  are  two   past  producing  mines  on  the   property,  La  Fortuna  and  Caraples.                
  12. 12.   Buying and Processing April  22,  2013  NR:    Big  North  …  announces  that,  as  part  of  the  Company's  business  plan,  the  Company  has   started  buying  amorphous  graphite  from  local  private  producers  who  do  not  have  processing  capabiliJes.  Big   North  has  recently  acquired  approx  100  tons  of  amorphous  graphite  in  an  unprocessed  form  from  two  local   miners.  Big  North  plans  to  purchase  graphite  from  local  producers  to  supplement  potenJal  producJon  from  the   Nuevo  San  Pedro  project.  The  Company  plans  to  process  the  purchased  graphite  to  the  specificaJons  of  future   customers  and  re-­‐sell  the  purchased  graphite  at  market  prices,  capturing  the  difference  in  prices.       ü  Increase  “producJon”  without  the  tradiJonal  risks  of  mining   ü  Many  small  family  run  graphite  mines  without  processing  ability   ü  Minimum  grade  requirement   ü  Capture  the  difference  on  pricing,  minus  processing  and  transport       12  
  13. 13.   Amorphous Graphite •  Global  graphite  producJon  was  1.1  million  tons  in  2012,  approx  50%  of  which  is  amorphous   graphite.   •  The  United  States,  Europe  and  China  have  included  graphite  among  the  short  list  of  criJcal   metals   •  The  UnJed  States  produces  no  graphite  and  is  100%  dependent  on  imports  to  meet  it's   industrial  and  technology  needs.   •  China  produces  70%-­‐80%  of  the  world’s  natural  graphite.    China  produced  over  90%  of   world’s  amorphous  graphite  in  2012.       •  “Supply  security  is  a  big  concern”  for  amorphous  graphite  users   •  ConJnuing  government-­‐backed  consolidaJon  programs  in  the  Hunan  Province  is  seeing  over   230  mines  reduced  to  20   •  Amorphous  graphite  sells  for  $350-­‐800/ton  depending  on  the  carbon  content  which  ranges   from  65%  to  85%+   •  Amorphous  graphite  producJon  is  dominated  by  China,  with  approx  16K  tpa  from  Austria,   12K  tpa  from  Mexico  and  300  tpa  from  Turkey   •  Amorphous  graphite  is  mainly  used  as  a  component  in  lubricants,  refractories,  steel   producJon,  brake  linings,  clutch  materials,  gaskets  and  water-­‐based  paints     *Source:  Industrial  Minerals   13  
  14. 14.   Amorphous Graphite Stockpiles 14                  Graphite  Stockpiles  at  Big  North  Graphite’s  Processing  Plant,  Sonora  Mexico  
  15. 15.   Griffith/Brougham Graphite Properties - Ontario •  Approximately  6,500-­‐hectare  land  posiJon  in  central  southeastern  Ontario   •  High  value,  high  quality  large-­‐flake  graphite  exploraJon  target   •  In  an  area  of  well-­‐established  access  and  infrastructure   •  ProperJes  cover  substanJal  tracts                                                                                                                                                                                                       of  graphite-­‐prospecJve  Grenville-­‐age  marble                                                                                                                                                         +/-­‐gneiss  geology  and  are  unexplored  for  graphite                                                                                  using  modern   technology.     •  To  the  southeast,  the  Brougham  Graphite  Property  is                                                                                                     anchored  by  two  historic  graphite  occurrences  (based  on                                                                                                                           Ontario  Geological  Survey  maps  from  the  1970's)     •  EM  survey  completed  July  2012   •  NI43-­‐101Technical  Report  released  Oct  2012   15  
  16. 16.    Grand Lac du Nord Property - Quebec •  Approximately  2,009  hectare  land  package     •  Located  approximately  140  km  NW  of  Sept-­‐Iles,  by  road   •  8km  x  2km  graphiJc  paragneiss  formaJon     •  Similar  geology  to  other  graphite  deposits  and  mines  in  Quebec,  such   as  Focus  Metals  Inc.'s  Lac  Knife  deposit,  Timcal  Graphite  and  Carbon's   Lac  des  Iles  mine.   •  Originally  explored  by  SOQUEM  (2000/2001)   •  Phase  1  ExploraJon  completed  -­‐    confirmed      a  mulJple  graphite  bearing  structure  covering      an  area  approximately  4  km  by  2  km  with      results  of  up  to  5.31%  Graphite  in  grab  samples                                                                                                             16  
  17. 17.   What is Graphite? •  CriJcal  supply  industrial  mineral   •  One  of  two  natural  carbon  polymers  (diamonds)   •  Light  weight  with  highest  natural     strength  and  sJffness  of  any  material   •  Conductor  of  heat/electricity   •  Corrosion  and  heat  resistant   •  High  natural  lubricity   17  
  18. 18.   Amorphous Graphite + Uses •  Amorphous  graphite  is  actually  not  “amorphous”  as  all  graphite  is  crystalline.   It  is  microcrystalline  or  cryptocrystalline,  meaning  that  the  “flake”  size  is  very   small.   •  Amorphous  graphite  is  used  in  the  refractories  industry  to  manufacture   crucibles,  ladles,  molds,  nozzles  and  troughs  that  can  withstand  the  very  high   temperatures  associated  with  molten  metal,  parJcularly  the  casJng  of  steel.   •   The  electrodes  used  in  many  electrical  metallurgical  furnaces,  including  the   electric  arc  furnaces  used  in  steel  processing,  are  manufactured  from   graphite.  In  the  producJon  of  steel  itself,  graphite  is  used  as  a  carbon  raiser   to  strengthen  steel.  It  is  also  used  in  blast  furnace  linings  for  the  producJon   of  iron  because  of  its  high  thermal  conducJvity.   •  Amorphous  or  fine-­‐flake  graphite  is  used  in  brake  linings,  gaskets  and  clutch   materials.     •  Foundry  facing  mold  wash  uses  amorphous  or  fine-­‐flake  graphite  in  a  water-­‐ based  paint  to  coat  the  mold,  thereby  allowing  ease  of  separaJon  of  the   casted  object  from  the  mold  awer  the  metal  has  cooled.   18  
  19. 19.   Graphite Major End Uses 41%   14%   14%   11%   10%   10%   Steel  &  Refractories   AutomoJve  parts     Lubricants     Carbon  Brushes   Bameries   Other   Source:    Merchant  Research  &  ConsulJng  (2011)   19  
  20. 20.   Graphite Comparables 0   50   100   150   200   Big  North  -­‐  $3.4m   Graphite  One  -­‐  $22.9m   Flinders  -­‐  $31.4m   Northern  -­‐  $36.3m   Mason  -­‐  $40.8m   Focus  -­‐  $55.7m   Zenyama  -­‐  $182.3m   Market  Cap  ($m)   20  
  21. 21.   Supply/Demand Dynamics •  Industrial  demand  growing  5%  per  annum  over  last  10  years  due  to   industrializaJon  of  emerging  economies  such  as  China  and  India   •  European  Union  and  USA  named  graphite  a  mineral  in  criJcal  supply   •  Lack  of  exploraJon  and  development  over  last  20  years  and  China   producing  +70%  of  the  world’s  graphite   •  Chinese  producJon  and  exports  expected  to  decline  due  to  China’s   strategy  to  keep  value  added  manufacturing  in  the  country   •  Graphite  market  is  more  than  40  Jmes  larger  than  lithium  and  rare   earths  markets   •  Demand  for  graphite  increasing  globally  for  green  technology   applicaJons  which  have  potenJal  to  consume  more  graphite  than  all   current  uses  combined   Source:  Industrial  Minerals,  Supply  Situa*on  Report:     Graphite  demand  soars  above  pre-­‐crisis  Levels,    April  2011   21  
  22. 22.   Graphite Global Demand Source:  Industrial  Minerals  Magazine   22  
  23. 23.   Key Milestones ü  Acquired  First  graphite  asset  -­‐  March  2012   ü  Commence  ExploraJon  on  Canadian  properJes  -­‐  May/June  2012   ü  AcquisiJon  of  past  producing  Assets  in  Mexico  -­‐  Sept  2012   ü  Close  acquisiJon  of  Mexico  properJes  –  Nov  2012   ü  Start  assembly  of  processing  plant   ü  Accelerate  re-­‐start  of  Nuevo  San  Pedro  Mine   ü  Commence  test  mining  of  amorphous  graphite  in  Mexico   ü  Amorphous  graphite  sales   q  Increase  producJon,  enhancing  processing,  growing  sales  and  securing  long-­‐term   oyake  partners  of  amorphous  graphite   q  Move  El  Tejon  project  towards  producJon  –  Secure  oyakes,  refurb  mill,  start   permizng  process   23  
  24. 24.   Contact Info: Spiro  Kletas,  President  &  CEO     Big  North  Graphite  Corp.   Suite  350  -­‐  885  Dunsmuir  Street   Vancouver,  BC   V6C  1N5   604.629.8220  (Office)   24