Nrt 102013

344 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
344
On SlideShare
0
From Embeds
0
Number of Embeds
64
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Nrt 102013

  1. 1. Oct 2013 Discovering Graphite Opportunities in Mexico & Canada TSX – V NRT 1  
  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  www.sedar.com  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   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.         Dean  Nawata,  Director  –  Over  18  years  of  public  market  experience,  nine  of  which  he  spent  as  a  licensed   stockbroker  focusing  on  financing  of  junior  mining  and  oil/gas  projects  with  NesbiJ  Burns,  Research  Capital   and,  most  recently,  Raymond  James.  Mr.  Nawata  currently  holds  a  posiPon  in  Business  Development  for  49   North  Resources  and  is  a  Director  of  Prima  Fluorspar.     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  producPon.  Mr.  Rees  has  been   directly  involved  in  raising  over  $150  million  for  junior  resource  companies.     Eric  Ostensoe  P.  Geo.,  Director  -­‐  Mr.  Ostensoe  is  a  consulPng  geologist  with  more  than  forty  years  direct   involvement  with  the  mining  and  mineral  exploraPon  industries.  Mr.  Ostensoe  supervises  property   exploraPon  and  development  projects  from  "grassroots"  to  advanced  stages  and  provides   recommendaPons  to  management  of  junior  and  medium  sized  public  companies.     Connie  Norman,  Corp  Secretary   3  
  4. 4. Capital Structure •  Issued  &  Outstanding •  Warrants              52.9  m        28.0  m   •  OpPons                  2.6  m   •  Fully  Diluted            83.5  million   •  Management  &  Insiders  –  approx  25%   4  
  5. 5. Investment Highlights •  Graphite  supply  Pghtening  in  an  historically   underexplored  sector   •  Projects  located  in  geologically  favorable,  poliPcally   stable  jurisdicPons   •  Aiming  to  accelerate  re-­‐start  of  Nuevo  San  Pedro   amorphous  graphite  mine  in  Sonora,  Mexico*   •  Amorphous  graphite  accounts  for  approx  50%  of   natural  graphite  market  and  over  90%  of  producPon   was  out  of  China  in  2011  –  Big  North  is  only  TSX.V   company  pursuing  amorphous  graphite   •  One  of  the  first    junior  companies  to  produce    and  sell   graphite     5  
  6. 6. 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.  50  km  SE  of  Hermosillo,  a  city  of  1  million  people   •  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     •  Nuevo  San  Pedro  is  approx  1km  away  from  the  La                Lourdes  graphite  mine,  which  has  been  operaPng                for  over  50  years   •  6  
  7. 7. Sonora Mexico Property Map •  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.     7  
  8. 8. 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  capabiliPes.  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  potenPal  producPon  from  the   Nuevo  San  Pedro  project.  The  Company  plans  to  process  the  purchased  graphite  to  the  specificaPons  of  future   customers  and  re-­‐sell  the  purchased  graphite  at  market  prices,  capturing  the  difference  in  prices.       Increase  “producPon”  without  the  tradiPonal  risks  of  mining     Many  small  family  run  graphite  mines  without  processing  ability     Minimum  grade  requirement     Capture  the  difference  on  pricing,  minus  processing  and  transport   8  
  9. 9. Graphite Sales Oct  9,  2013  NR  –  Big  North  Graphite  Corp.  is  pleased  to  announce  that   the  Company  has  completed  a  third  consecuJve  month  of  amorphous  graphite   sales.  The  month's  sales  totaled  197  tons,  with  the  graphite  screened  to  a  ¾   minus  product  at  the  Company's  processing  facility  located  in  Sonora,  Mexico.   The  finished  graphite  product  was  sold  and  delivered  to  a  customer  within   Mexico.   -­‐Total  Sales  to  date  (3  months)  of  635  tons     -­‐Sold  as  run-­‐of-­‐mine,  semi  processed  to  a  customer  within  Mexico   -­‐Processing  facility  nears  compleJon   9  
  10. 10. Amorphous Graphite •  •  •  •  •  •  •  •  •  •  Global  graphite  producPon  was  1.2  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  criPcal  metals   The  UnPed  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  89%  of  world’s   amorphous  graphite  in  2012.       “Supply  security  is  a  big  concern”  for  amorphous  graphite  users   ConPnuing  government-­‐backed  consolidaPon  programs  in  the  Hunan  Province  is  seeing  over  230   mines  reduced  to  20   The  consolidaPon  of  China's  amorphous  graphite  industry  is  set  to  impact  the  supply/demand   balance  for  2012  and  2013  and  will  result  in  a  loss  of  global  supply   Amorphous  graphite  sells  for  $350-­‐800/ton  depending  on  the  carbon  content  which  ranges  from   65%  to  85%+   Amorphous  graphite  producPon  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  producPon,   brake  linings,  clutch  materials,  gaskets  and  water-­‐based  paints   *Source:  Industrial  Minerals   10  
  11. 11. Amorphous Graphite Stockpiles                Graphite  Stockpiles  at  Big  North  Graphite’s  Processing  Facility,  Sonora  Mexico   11  
  12. 12. Griffith/Brougham Graphite Properties - Ontario •  Approximately  6,500-­‐hectare  land  posiPon  in  central  southeastern  Ontario   •  High  value,  high  quality  large-­‐flake  graphite  exploraPon  target   •  In  an  area  of  well-­‐established  access  and  infrastructure   •  ProperPes  cover  substanPal  tracts                                                                                                                                                                                                       of  graphite-­‐prospecPve  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   12  
  13. 13.  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  graphiPc  paragneiss  formaPon     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  ExploraPon  completed  -­‐    confirmed      a  mulPple  graphite  bearing  structure  covering      an  area  approximately  4  km  by  2  km  with      results  of  up  to  5.31%  Graphite  in  grab  samples                                                                                                                           •  •  •  •  13  
  14. 14. Grand Lac Du Nord Property Map 14  
  15. 15. What is Graphite? •  CriPcal  supply  industrial  metal   •  One  of  two  natural  carbon  polymers  (diamonds)   •  Light  weight  with  highest  natural     strength  and  sPffness  of  any  material   •  Conductor  of  heat/electricity   •  Corrosion  and  heat  resistant   •  High  natural  lubricity   15  
  16. 16. 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,  parPcularly  the  casPng  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  producPon  of  steel  itself,  graphite  is  used  as  a  carbon  raiser   to  strengthen  steel.  It  is  also  used  in  blast  furnace  linings  for  the  producPon   of  iron  because  of  its  high  thermal  conducPvity.   •  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  separaPon  of  the   casted  object  from  the  mold  aver  the  metal  has  cooled.   16  
  17. 17. Graphite Major End Uses 10%   Steel  &  Refractories   10%   AutomoPve  parts     41%   Lubricants     Carbon  Brushes   11%   BaJeries   Other   14%   14%   Source:    Merchant  Research  &  ConsulPng  (2011)   17  
  18. 18. Supply/Demand Dynamics •  Industrial  demand  growing  5%  per  annum  over  last  10  years  due  to   industrializaPon  of  emerging  economies  such  as  China  and  India   •  European  Union  and  USA  named  graphite  a  mineral  in  criPcal  supply   •  Lack  of  exploraPon  and  development  over  last  20  years  and  China   producing  +70%  of  the  world’s  graphite   •  Chinese  producPon  and  exports  expected  to  decline  due  to  China’s   strategy  to  keep  value  added  manufacturing  in  the  country   •  Graphite  market  is  more  than  40  Pmes  larger  than  lithium  and  rare   earths  markets   •  Demand  for  graphite  increasing  globally  for  green  technology   applicaPons  which  have  potenPal  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   18  
  19. 19. Graphite Global Demand Source:  Industrial  Minerals  Magazine   19  
  20. 20. Key Milestones                           Big  North  Completes  Qualifying  TransacPon-­‐  Dec  2011   Acquired  First  graphite  asset  -­‐  March  2012   Strategic  AcquisiPon  of  addiPonal  assets  –  April/Sept  2012   Commence  ExploraPon  on  Canadian  properPes  -­‐  May/June  2012   AddiPons  to  Management,  OperaPonal  and  Technical  Teams  -­‐  June/July  2012  and   ongoing   AcquisiPon  of  past  producing  Assets  in  Mexico  -­‐  Sept  2012   Close  acquisiPon  of  Mexico  properPes  –  Nov  2012   Start  assembly  of  processing  plant   Accelerate  re-­‐start  of  Nuevo  San  Pedro  Mine  –  ongoing   Commence  test  mining  of  amorphous  graphite  in  Mexico   Amorphous  graphite  sales   Increase  producPon,  enhancing  processing,  growing  sales  and  securing  long-­‐term   offtake  partners   ConPnued  ExploraPon  of  Canadian  properPes   20  
  21. 21. Contact Info: Spiro  Kletas,  President  &  CEO   spiro@bignorthgraphite.com     info@bignorthgraphite.com   www.bignorthgraphite.com   Big  North  Graphite  Corp.   Suite  350  -­‐  885  Dunsmuir  Street   Vancouver,  BC   V6C  1N5   604.629.8220  (Office)   21  

×