Corporate Presentaion June 2012
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Most recent Corporate Presentation for Western Potash Corp. For more information about the company e-mail info@westernpotash.com.
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Corporate Presentaion June 2012
- 1. June 2012
- 2. Disclaimer Forward-Looking Statements and Cautionary Notes This presentation contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934 and “forward-looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”). Forward-looking statements often, but not always, are identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “targeting” and “intend” and statements that an event or result “may”, “will”, “should”, “could”, or “might” occur or be achieved and other similar expressions. The forward-looking statements that are contained in this presentation are based on various assumptions and estimates by Western Potash Corp. (the “Company”) and involve a number of risks and uncertainties. As a consequence, actual results might differ materially from results forecast or suggested in these forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause the actual results to differ include: risks relating to fluctuations in the price of potash; the inherently hazardous nature of mining-related activities; uncertainties concerning resource estimates; results of exploration; availability of capital and financing on acceptable terms; inability to obtain required regulatory approvals; unanticipated difficulties or costs in any reclamation which may be necessary; market conditions and general business, economic, competitive, political and social conditions. These statements are based on a number of assumptions. The material assumptions upon which such forward-looking statements are based include, among others: that the demand for potash will develop as anticipated; that the price of potash will remain at levels that will render the Company’s potash projects economic; that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions; that the Company will continue to have the ability to attract and retain skilled staff; and that there are no material unanticipated variations in the cost of energy or supplies, or in the pre-production capital and operating cost estimate as disclosed in the Company’s Preliminary Feasibility Study. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, there may be other factors which cause actual results to differ. Forward-looking statements contained herein are made as of the date of this presentation and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. This presentation may contain information regarding a historical mineral resource. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. The Company is not treating the historical estimate as current mineral resources or mineral reserves. The economic analysis contained in the Preliminary Feasibility Study (the highlights of which are contained in this presentation) is based on measured and indicated resources. The Preliminary Feasibility Study forms the fundamental basis of a NI 43-101 Technical Report titled “NI 43-101 Technical Report Summarizing the Preliminary Feasibility Study for a Potash Solution Mine on the Milestone Project (Subsurface Mineral Lease KLSA 008), Saskatchewan” dated effective October 31, 2011 and prepared by Agapito Associates, Inc. and AMEC Americas Limited. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Cautionary Note to U.S. Readers This presentation contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. The Company advises US investors that the mining guidelines of the US Securities and Exchange Commission (the “SEC”) set forth in the SEC’s Industry Guide 7 strictly prohibit information of this type in documents filed with the SEC. The Company is exempt from the requirements of Industry Guide 7 pursuant to the Canada-US Multi-Jurisdictional Disclosure System. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company’s properties. National Instrument 43-101 Standards for Disclosure of Mineral Projects (“NI 43-101”) is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The disclosure in this presentation may use terms that comply with reporting standards in Canada. In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”, “inferred mineral resource”, “probable mineral reserve” and “proven mineral reserve” are defined in and required to be used by the Company by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into mineral reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility studies, pre-feasibility studies or other economic studies, except in prescribed cases, such as in a preliminary economic assessment under certain circumstances. It cannot be assumed that all or any part of the measured mineral resources, indicated mineral resources or inferred mineral resources will ever be upgraded to a higher category. Accordingly, information contained in this presentation containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. 2
- 3. Western Potash Corp Strengths Milestone Potash Project • World Class Resource – NI 43-101 Technical Report Summarizing the PFS • Attractive Economics – Pre-Feasibility Study Completed – Supported by Infrastructure Options Management Team in Place • Management Experience • Ability to Deliver the Project 3
- 4. Elk Point Basin 4
- 5. Milestone Project 2009 2D Seismic Work Drill Program 2010 Drill Program Resource Estimate Delivered Scoping Study Delivered 2011 Drill Program MOU City of Regina (Water) Plant Site Acquired Updated Technical Report Delivered PFS Completed 2012 Feasibility Process Continues Environmental review commences 5
- 6. World Class Resource Measured 66.6 Million Updated NI (Recoverable) Tonnes 43 101 25.75% KCL Technical Indicated 186.68 Million (Recoverable) Report Tonnes 25.97% KCL Inferred (Recoverable) 708.18 Million Tonnes 25.96% KCL In-situ: Measured = 781 Mt Indicated = 2,240 Mt Inferred = 10,682 Mt (Including Interbeds) Effective October 31st 2011, NI 43-101 Technical Report Summarizing the Prefeasibility Study for a Potash Solution Mine on the Milestone Project (Subsurface Mineral Lease KLSA 008), Saskatchewan. Agapito Associates Inc. Q.P. : Michael P. Hardy, Ph.D.,P.E.,P.Eng., Douglas M. Hambley, Ph.D., P.E.,P.Eng.,P.G. AMEC Americas Limited Q.P.: Paul O’Hara, P.Eng. Western Potash Corp. Q.P.: Dean Pekeski, P.Geo., Greg Vogelsang, P.Eng., P.Geo. 6
- 7. Solution Mining 7
- 8. Geothermal Gradients 8
- 9. PFS Highlights IRR 22.7% Payback Period 5 Years NPV (10) OPEX $62.35/ tonne CAD Initial CAPEX 2.458 B CAD $4.14 B Port CAPEX 300 M CAD CAD Life of Mine 40 years Long Term Potash $511 US/Tonne Price (FOB) Gate Target Annual 2.8 Mt/yr Production Rate 9
- 10. Diagram of the Process Plant 10
- 11. Infrastructure 11
- 12. Logistics Update • Signed MOU with City of Regina for the delivery and supply of recycled water • Evaluated and determined that competitive rail options exist at both origin (mine) and destination (export terminal) • Evaluated and determined that attractive port/terminal options exist in British Columbia, Washington and Oregon 12
- 13. Rail – Routing 13
- 14. Port / Terminal Options • Prince Rupert (new terminal) • Port Metro Vancouver – Kinder Morgan, Fraser Surrey Docks, Western Stevedoring • Existing/brownfield/greenfield terminals in WA and OR – Tacoma, Longview, Kalama, Portland, Bradford 14
- 15. Management Patricio Varas President & CEO •Professional Geologist with over 24 years experience in exploration, project development and corporate management. •WPX President and CEO since inception. Dean Pekeski Executive Vice President •Professional Geologist with over 17 years experience in mineral exploration. •Previously the VP of Exploration with WPX. Richard Lock Project Director •Over 24 years engineering experience in the mining industry •Involved with Rio Tinto's Diavik Diamonds Project - took the project from the evaluation stage to production. John Costigan VP Corporate Development •Over 25 years experience in technical sales and marketing to the mining, food, and pulp & paper multinationals. •VP of Corporate Development at WPX since inception. Patrick Power VP Corporate Finance & Director •Over 17 years of experience as a stock market professional and as director of public companies. •Played a critical role in raising approximately 80 million for WPX to date. Ian Graham Evaluation and Project Development •Over 20 years of mineral exploration and evaluation experience with Anglo American and Rio Tinto. •Geological and project management experience in the field of mineral exploration and project development in Canada and abroad. 15
- 16. Milestone Timeline Present 16
- 17. Investment Highlights • World Class Resource • Positive Economics • Infrastructure Options • Management Team Source: AMEC Americas Ltd. 17
- 18. Suite 1818 - 701 West Georgia St. Vancouver, British Columbia V7Y 1C6, Canada 604.689.WEST (9378) info@westernpotash.com www.westernpotash.com 18
- 19. Additional Information Merger and Acquisition Activity : Potash Sector Source : Raymond James-Fertilizers, Canadian Research, Capital IQ, Company Documents
Editor's Notes
- Hello, Thank you for viewing Western Potash Corp.’s April 2012 Corporate presentation.Western Potash Corp. is a Potash company engaged in the evaluation and development of Potash mineral Properties in Western Canada. Currently the company is working towards completing a Feasibility Study on the Milestone Project.
- Please, take a moment to read our disclaimer
- This presentation will outline who Western Potash Corp. is and the key elements to our Flagship Property – The Milestone Project. The Company has defined a World-Class Potash Resource. The Project reflects positive economics. And the company has the management with the ability to deliver the project.
- The Elk Point Basin is hosts one of the largest Potash Basins in the world. The Milestone property is located within this basin alongside many already operating mines. Some of the company’s operating in the basin includes Potash Corp. and Mosaic.
- The Milestone Project is located approximately 35 kilometers Southeast of Regina. As you can see, the company has drilled 10 wells on the property. The Company has secured over 2,550 acres at its preferred plant site location on this map in Red. Some of Western Potash Corp.’s neighbours are K+S, Vale, BHP Billiton as well as, North Atlantic Potash and Rio Tinto. Western Potash Corp. IPO’d in May 2008. Exploration began on the Milestone Project in 2009. The company then progressed through 3 rounds of drill programs.We completed a Technical Report in 2010. A Preliminary Economic Assessment or ‘Scoping Study’ was also completed in 2010. We also updated our resource in December, when releasing the NI 43-101 Technical Report Summarizing the Prefeasibility we had completed on the property.
- The Milestone potash resource will be mined using the dual-well cavern technique, taking successive mining cuts. The dual-well technique lends itself well to potash extraction, since flow can be controlled for a more uniform cavern size.Western Potash Corp. will be mining all three potash bearing members. Solution mining on the Milestone project will consist of Primary and Secondary solution mining. For more information on the solution mining project please visit the Solution mining page on the website under ‘About Potash’ or view the company’s informational video on the videos page under ‘Media’
- The highest cost associated with Solution mining is the energy cost required to heat the brine solution before you send it down in order to create the caverns. In our case, the cost will be natural gas. When the company was looking for potential potash properties, one of the appealing points to the Milestone Property is that it is situated on a very unique Geothermal Gradient. As you can see, where the company has proven its resource where the temperatures are approximately 5 – 10 degrees higher than the temperatures at solution mines and prospects in our area. When the Company completed the Preliminary Economic Assessment, it was estimated the company will save 8.5% on its operational costs due to this heat anomaly.
- In the fall of 2011, AMEC of Americas completed a Prefeasibility Study on the Milestone Potash Project. Some of the Prefeasibility highlights include:A Net Present Value of $4.14 Billion CAD at a 10% discount rateAn Internal rate of return at 22.7%A Payback period of 5 yearsAn OPEX of $62.35/tonne CADAn Initial CAPEX of 2.458 Billion CADA Port CAPEX of 300 Million CADA Target Annual Production rate of 2.8 million tonnes per yearAnd A mine life of 40 years
- This diagram of the Process Plant was taken from the Prefeasibility work on the Milestone property and gives us an idea of how the Milestone Potash Solution Mine will look when completed.
- This company has the management experience needs in order to advance this project. Our President and CEO, Patricio Varas has been in the industry for 24 years, working with Far West Mining and Kennecott Canada, and being in positions including project development and corporate management. Mr. Varas has the rare experience of seeing projects in various stages, and taking projects through the various stages of project life cycles. Our Newest Member of the Western Potash Team is Richard Lock. Richard is the Company’s Project director and is taking the Engineering process under his wing. Most recently Richard was the Project Director for Resolution Copper, and was responsible for the pre-feasibility studies and associated on-site activities for the Resolution Project. Richards’s extensive experience in the mining industry, with a focus on project engineering adds a new level of expertise to the Western Potash Corp. management team. The management team as a whole is well-rounded and has extensive experience in the mining industry and will continue to add new expertise as the project develops.
- As we move onto our Project Timeline for the Milestone Potash Project, we are currently, as previously stated, working towards the completion of our Feasibility study and expect it’s completion by the end of this year. We expect to be in production in 2016.
- Thank you very much for viewing our corporate presentation. Western Potash Corp. is committed to building the Solution Mine on the Milestone Potash project in an economically efficient, ecologically sustainable and socially responsible manner.For more information on Western Potash Corp., or the Milestone project please visit the company’s website at www.westernpotash.com.