Seafield Resources Ltd. - Corporate Presentation - April, 2012
Vms nan combo for astrologers fund feb 2013
1. Discovering High Grade Copper Deposits
in Manitoba, Canada
VMS:TSX.V
Explorer to Producer
NAN: TSX.V
The World’s Next Nickel Belt
Astrologer’s Fund Conference
February 12, 2013
2. FORWARD-LOOKING
STATEMENTS
NOTE:
Some of the statements contained herein may be forward-looking
statements which involve known and unknown risks and uncertainties.
Without limitation, statements regarding potential mineralization and
resources, exploration results, and future plans and objectives of the
Company are forward-looking statements that involve various risks.
The following are important factors that could cause the Company’s actual
results to differ materially from those expressed or implied by such
forward-looking statements: changes in the world wide price of mineral
commodities, general market conditions, risks inherent in mineral
exploration, risks associated with development, construction and mining
operations, the uncertainty of future profitability and the uncertainty of
access to additional capital. There can be no assurance that forward-looking
statements will prove to be accurate as actual results and future
events may differ materially from those anticipated in such statements.
VMS Ventures Inc. undertakes no obligation to update such forward-looking
statements if circumstances or management’s estimates or opinions
should change. The reader is cautioned not to place undue reliance on
such forward-looking statements.
Slide 2
3. VMS VENTURES INC.
VMS - TSX.V QUICK FACTS
Well funded; over $10.4M in the treasury
Reed Copper deposit discovered in 2007.
June 2010: Joint Venture signed with HudBay
Minerals (T.HBM). HBM is project operator; VMS
project costs carried to production. Project
ownership is 70% HBM & 30% VMS.
Reed Copper Deposit Prefeasibility Mineral
Reserves: 2.16M tonnes of 3.83% Cu, 0.48 g/t Au,
6.02 g/t Ag
Underground development underway and
production to begin Q4 2013; cash flow in 2015
CAPITAL STRUCTURE
(as at February, 2013) Other assets :
Issued & Outstanding: 129,668,399 21M shares of North American Nickel
Warrants: 163,333 (NAN.TSX.V)
Options: 8,442,500 a large 100% owned land package in the
Fully Diluted: 138,274,232 Snow Lake-Flin Flon Greenstone Belt in
Manitoba, Canada; drilling planned for
winter 2013
Slide 3
4. VMS/NAN MANAGEMENT
Rick Mark, M.Ed (Admin) CEO & Chairman VMS & NAN: Rick has over 25 years experience in the public market
place. He is also CEO & Chairman of Harvest Gold Corporation (HVG-TSX.V), a December 2005 "spin off" from VMS,
and is the President and CEO of Pancontinental Uranium Corp. (PUC-TSX.V).
Neil Richardson P. Geo. COO, VMS & NAN: Neil has a long history of mineral exploration and mining experience
with HudBay Minerals and others. As the COO of both companies, Neil is responsible for developing and implementing
exploration programs .
Mark Fedikow, HBSc., M.Sc., Ph.D., P.Eng., P. Geo., C.P.G. : President & Director NAN, VP Exploration VMS: Mark
has 35 years of industry and government experience including Chief Geologist of the Mineral Deposits Section in
Manitoba. He is a recipient of the Canadian national award for outstanding geoscientific achievement.
John Roozendaal B.Sc, President of VMS, Director of NAN: John was the founding director of VMS Ventures Inc.
He has 20 years of Mineral Exploration experience and was directly involved in the Reed Copper discovery.
John Pattison, P. Geo., B.Sc. Chief Geologist VMS and NAN: John worked with Falconbridge Limited and
associated companies for 19 years managing base metal, PGE and gold exploration projects throughout Canada and
southern Africa. He is the lead project geologist for the Maniitsoq, Greenland nickel project.
Slide 4
4
5. INDEPENDENT DIRECTORS &
ADVISORY BOARDS Independent Directors:
Gilbert Clark, Director, NAN: Mr. Clark is a European based Geologist with more than 13 years of industry experience;
principally in mining and international resource developments. He is currently an Investment Advisor with The Sentient
Group, an independent private equity investment firm specializing in the global resources industry.
Don Whalen, Director & Audit Committee Chair, VMS: Don was Executive Chairman and Director of High River Gold
Mines. Before joining High River, he held numerous marketing, technical and management positions over a 29 year career
with IBM Canada Ltd.
Jim Clucas, Director & Audit Committee Member, NAN: Jim was Chief Financial Officer of Inco’s Canadian operations
and has been involved in the development of several mineral deposits, including the Snow Lake Mine (High River Gold
Mines), Montana Tunnels (Pegasus Mining) and the Fenix Project in Guatemala. He was the founder of International Nickel
Ventures Inc. which acquired and developed the Santa Fe/Ipora Nickel Laterite deposit in Brazil. Jim is currently President
and CEO of Search Minerals
Advisory Board
Cashel Meagher B.Sc. P. Geo.: Cashel is currently Vice President South America Business Unit of Hudbay Minerals. He
has worked with the technical and management teams at VMS Ventures and North American Nickel through the Reed Lake
joint venture with VMS. Prior to joining Hudbay, Cashel held management positions with Vale Inco in exploration, technical
services, and mine operations.
Mike Muzylowski: Mike has played key roles in the discovery of 15 Canadian mines, 13 in Manitoba, during his
distinguished career as a geologist, geophysicist and senior mining executive.
Slide 5
5
7. REED COPPER DEPOSIT
VMS-HudBay Reed JV
• VMS owns 30% of the project
and is financed to production
• Prefeasibility Mineral
Reserves: 2,157,000 tonnes of
3.83% Cu, 0.59% Zn and 0.48
g/t Au
• NPV 8% @ $3.50 Cu =
$130,534,000; IRR 58%
• Borehole Pulse
Electromagnetic targets
indicate the deposit remains
open at depth.
• Underground drill stations will
explore for additional ore
bodies and further define the
size of the deposit.
Open Down Plunge Slide 7
9. REED PROJECT OVERVIEW
• 1,300 tonne/day operation; Mine life 5 to 6 years
• 72,000 to 78,000 tonnes copper concentrate per annum
• Mining method is longhole open stoping
• Manpower : 77 employees at full production
• Power : 3 generators production up to 5,000 kwh
• Concentrating will be at HBM Mill in Flin Flon
Slide 9
10. REED COPPER PROJECT
CASH FLOW EXPECTED IN 2015
The high grade nature of the Reed Copper deposit gives the project strong leverage to
copper prices.
The following table shows a copper price sensitivity analysis based on the operating
parameters set out in the Prefeasibility Study Published in May 2012.
VMS Ventures Inc. VMS Ventures Inc.
Cu = $3.50/lb USD Cu = $4.00/lb USD
Prices and Exchange Rate
Copper (USS/lb) $3.50 $4.00
Gold (US$/oz) $1,500.00 $1,500.00
Silver (US$/oz) $30.00 $30.00
US$/CDN$ 1 1
Pre‐tax
Reed Cash Flow $249,673,000 $331,608,000
NPV8 $130,534,000 $195,010,000
IRR 58% 74%
Slide 10
16. VTEM COVERAGE OVER
VMS’ 100% OWNED PROJECTS
• Recent massive
sulphide
discoveries,
including VMS’s
Reed Lake
Deposit, were
made with VTEM
• VMS Ventures has
flown over 17,000
line-km of VTEM
over its projects,
majority flown at
100 m line spacing.
• 20 targets to be
drilled this winter
Slide 16
17. VMS 2013 MILESTONES
The Reed Copper Project
• January: Completion of surface construction and commissioning of 1.6 MW generator
• August: First production and completion of main ventilation fan
• 2014: Continued underground development to the 260 m level and full production.
VMS 100% Owned Properties
Manitoba Projects
• $1.2M budgeted for winter 2013 drill program in the Snow Lake area. 3,000 m to 3,400 m
of drilling is scheduled to test VTEM targets.
Sudbury Projects
• Black Creek & Terra Incognita scheduled for prospecting/trenching in Q2, and diamond
drilling in Q1 – 2013.
North American Nickel (VMS owns ~21M shares)
• District wide drill program planned for Maniitsoq in 2013; own VMS or NAN for discovery
upside potential.
Slide 17
18. NORTH AMERICAN NICKEL
NAN - TSX.V QUICK FACTS
Acquired the Sudbury sized Maniitsoq property in
Greenland in August, 2011; 100% owned.
Site of the world’s largest impact structure
High-grade nickel intercepts in historic drill holes:
9.85 m at 2.67% Ni and 0.60% Cu at
Imiak Hill
12.89 m averaging 2.24% Ni and 0.63% Cu
at Fossilik
2012 Drill program completed at Maniitsoq. 1,550
m of diamond drilling; 535 samples analyzed.
Over 3,500 line km flown in a VTEM Plus survey in
CAPITAL STRUCTURE July, 2012; 75 conductive zones identified
(as at February, 2013)
Sudbury Ontario land position includes the Post
Issued & Outstanding: 80,660,193 Creek, Halcyon and Wahnapitae properties.
Warrants: 22,960,000 VMS Ventures owns ~21M shares of NAN.
Options: 7,683,000
Fully Diluted: 111,303,193
Slide 18
19. MANIITSOQ PROJECT,
GREENLAND
100% interest in a giant property
covering 4,983 km2 of the highly
prospective, but underexplored,
Maniitsoq Impact structure.
Located on tide water (navigable year-
round) on the southwest coast of
Greenland, near the village of
Maniitsoq.
Slide 19
20. MANIITSOQ SUMMARY
Deposit Type: Magmatic Ni+Cu+Co+PGE sulphide
Minimum size: 10 to 15 Mt @ 1.0% Ni equivalent
Location: Southwest Greenland
Property status: 4,983 km2 in two exclusive mineral exploration licences.
Infrastructure: None, but most targets are <50 km from ice-free tide water.
Previous work: Prospecting and shallow drilling (average hole length <55 m)
discovered numerous high grade Ni showings in 1960’s and
70’s. Airborne and surface geophysical surveys in the1990s
failed to identify any drill targets.
Exploration rational: Very possible that economic deposits were missed as
historical geophysical technology had difficulty in the rugged
terrain that characterizes the project area. Modern helicopter
TEM flown perpendicular to strike at low altitude will have a
much better chance of locating Ni+Cu+Co+PGE deposits.
Slide 20
21. MANIITSOQ MILESTONES
2011
Identified Maniitsoq area as favourable for nickel sulphide deposits and acquired ground.
Compiled all available geological and historical exploration data in digital GIS format.
Located key historical showings and drill holes in the field.
Confirmed effectiveness of helicopter TEM by flying test survey over selected areas.
2012
Acquired additional ground based on positive 2011 results.
Completed helicopter TEM and magnetic surveys over high priority areas (totaling 860 km2) and
identified over 75 conductors.
Commenced checking conductors on the ground.
Drilled nine holes totaling 1,551 m in three target areas; made significant multi-element
intersections at two areas and encountered anomalous mineralization at the third.
Planned for 2013
Drilling to expand 2012 successes and to test new conductors identified by helicopter geophysics.
Surface mapping, prospecting and sampling over selected conductors and throughout the project
area to identify additional drill targets.
Mineralogical and petrographic studies of the mineralization and host rocks.
Slide 21
Slide 21
22. LOCATION: SOUTHWEST
GREENLAND
• Situated in a safe, stable,
mining-friendly jurisdiction.
• Straight forward permitting
process.
• No land claims issues.
• Mine development activities
nearby including road and
deep water port construction
(London Mining’s Isua Iron
project).
Slide 22
23. WORLD CLASS NICKEL
POTENTIAL
• High-grade, multi-element diamond drill intersections over long intervals.
e.g. 123.94 m @ 0.81% Ni, 0.21%Cu, 0.03% Co and 0.26 g/t PGM
incl. 24.20 m @ 1.75% Ni, 0.34% Cu, 0.06% Co and 0.52 g/t PGM
(NAN 2012 DDH: MQ-12-005)
• Underexplored (previous hole lengths averaged < 55 m) but lots of high-grade
historical assays with consistent high sulphide Ni tenor (6-8%).
• Mafic intrusions hosting the mineralization are contaminated mantle melts and
appear to have been part of a long-lived, dynamic magma conduit system
triggered by a large impact (possibly the largest yet recognized on Earth).
• Centred on major, long-lived, deep seated structures that were active from the
Archean to the Jurassic (2.8 billion years).
• New helicopter geophysical technology is proving far more effective than
techniques used in the past; over 75 conductive zones identified to date.
Slide 23
24. Regional Setting
MANIITSOQ GEOLOGY
Maniitsoq Maniitsoq Impact
MANIITSOQ IMPACT Project
MELT ZONE EXTENT • Property is centred on a giant,
(APPROX.) Archean-age (~3.0 Ga) impact
site.
• Possibly the largest yet
identified on Earth (Garde et al.,
2012*).
*Garde A.A., McDonald, I., Dyck, B. & Keulen, N. 2012: Searching
for giant, ancient impact structures on Earth: the Mesoarchaean
Maniitsoq structure, West Greenland. Earth and
Planetary Science Letters 137–138, 197–210.
Davis
Strait
Slide 24
25. Regional Setting
MANIITSOQ GEOLOGY
Post impact events included…
• Formation of the Finnefjeld
Domain at 2992 ± 7 Ma in
response to the impact.
• Intrusion of nickeliferous norites
of the Greenland Norite Belt
over a time period spanning at
Qaqarssuk Carbonatite
least one complete
Finnefjeld
geomagnetic reversal.
Domain
• 3 episodes of lamprophyre
intrusion (1800, 1200 and 600
Ma) with the latest involving
emplacement of kimberlite.
• Intrusion of the Qaqarssuk
carbonatite complex at 165 Ma.
Slide 25
26. SULPHIDE MINERALIZATION
• Mineralization consists
of monoclinic
pyrrhotite, pyrite,
pentlandite and
chalcopyrite.
Imiak Hill
• Often coarse-grained.
• Likely to produce a
clean concentrate. Pingo
• Inclusion-bearing
sulphide (i.e. sulphide
breccia) is a common
texture and indicates a Imiak Hill
dynamic system.
Quagssuk
Slide 26
27. CONSISTENTLY HIGH
NICKEL TENOR
Ni vs. S for Historical GNB Drill Core
• Sulphides have a
relatively consistent Typical 100% sulphide mixture
of Po+Cp+Pn contains 35.7% S
nickel tenor of 6 to Kerr, 2003
8% Ni recalculated to
100% sulphide.
Nickel wt. %
• Presence of pyrite
means there is more
S for a given amount DRILL CORE
of sulphide than in
typical magmatic
sulphide deposits
consisting mainly of
pyrrhotite-pentlandite
and chalcopyrite.
After Shore, 2000
Sulphur wt. % (Falconbridge Limited)
Slide 27
28. PREVIOUS EXPLORATION: LACK OF
CONDUCTIVE TARGETS
Cominco 1995 – 1996
• 20,446 line-km of airborne GeoTEM EM and
magnetic surveying.
– Lines 200-400 m apart oriented 080° (i.e.
subparallel to orientation of norites resulting in
poor coupling).
– Large fixed wing aircraft had difficulty hugging the
rugged terrain resulting in noisy data.
– Very few anomalies associated with norites.
– Ground follow-up prospecting, minor surface
geophysics (<30 line-km) but no drilling.
Falconbridge 1993 & 2000
• 100 line-km of UTEM over Imiak Hill and part of
Fossilik.
– Lines 200 to 400 m apart.
– No conductors detected and no drilling done.
Slide 28
29. NOW MANY TARGETS: MODERN
Regional Setting
HELICOPTER GEOPHYSICS
• SkyTEM and VTEM helicopter-borne TEM
surveys flown by NAN in 2011 and 2012
have detected over 75 conductive zones
(circled in red on the adjacent map).
• This technology was not available to
previous explorers in the belt.
• NAN has flown the areas outlined in
green, which total 860 km2 and cover a
major portion of the GNB.
• Interpretation of the 2012 data is in
progress. To date over 75 conductive
zones have been identified (circled in red
on map).
Slide 29
30. 2012 DRILLING:
CONFIRMATION & DISCOVERY
1,551 METERS in 9 HOLES
Spotty Hill – 1.00% Ni eq* /123.94 m
incl. – 2.12% Ni eq* / 24.20 m
Imiak Hill – 1.18% Ni eq* / 26.98 m
incl. – 1.60% Ni eq* / 16.64 m
* Ni eq = andequivalent calculated based on spot prices for Ni, Cu,
Co, Pd
Ni
Pt on Jan. 27, 2013.
IMIAK HILL HOLE MQ-12-001 15.39 to 16.60 m
Slide 30
31. SPOTTY HILL DRILLING
PURPOSE: 123.94 m @ 0.81% Ni, 0.21% Cu, 0.03% Co, 0.26g/t PGM*
To test near vertical, pipe-like VTEM con- Incl. 24.20 m @ 1.75% Ni, 0.34% Cu, 0.06% Co, 0.52 g/t PGM
ductor located along SW edge of a large Incl. 8.20 m @ 2.39% Ni, 0.21% Cu, 0.07% Co, 0.60 g/t PGM
exposure of disseminated sulphides hosted
in norite.
RESULTS: X-SECTION LOOKING NW
123.94 m of high grade MQ-12-005 9
MQ-12-009
10
12 119.00 m @ 11
sulphides in hole MQ-12-005. 13
0.17% Ni
119 m of anomalous mineral- 3
ization in MQ-12-009, which was 4 8 13
drilled outside the conductor 7
MQ-12-005
12
6
75 m NW of MQ-12-005. Model 2
1
5
Conductor
4
Plates 3
SPOTTY HILL
SURFACE PLAN MAP
* PGM=Pt+Pd+Au
Slide 31
32. IMIAK HILL DRILLING
SURFACE PLAN MAP MQ-12-001
PURPOSE: 26.98 m @ 0.98% Ni, 0.44% Cu
Incl. 16.64 m @ 1.36% Ni, 0.52% Cu
To drill conductors associated with and 5.12 m @ 2.20% Ni, 0.55% Cu
mineralization perpendicular to strike.
MQ-12-002
RESULTS: 66.08 m @ 0.55% Ni, 0.20% Cu
Incl. 5.15 m @ 1.22% Ni, 0.49% Cu
Significant multi-element intersections in and 14.18 m @ 1.33% Ni, 0.38% Cu
holes MQ-12-001 and MQ-12-002.
2012 drill results, combined with bore- hole
EM (BHEM) surveys and historical drill
information, indicate mineralization strikes
N-S, dips vertically to steeply east, plunges
south and is open at depth.
Historical Intersections
Slide 32
33. IMIAK HILL LONG SECTION
(LOOKING WEST)
MQ-12-001
26.98 m @ 0.98% Ni, 0.44% Cu
Incl. 16.64 m @ 1.36% Ni, 0.52% Cu
and 5.12 m @ 2.20% Ni, 0.55% Cu
Trend (plunge)
of mineralization
MQ-12-002
66.08 m @ 0.55% Ni, 0.20% Cu
Incl. 5.15 m @ 1.22% Ni, 0.49% Cu
and 14.18 m @ 1.33% Ni, 0.38% Cu
OPEN
Slide 33
34. MANIITSOQ IN 2013
Diamond Drilling
To follow-up 2012 drilling at Imiak, Spotty and
possibly P-59 and to test other VTEM targets
throughout the project.
VTEM Surveys
To cover several showings and intrusions not
previously flown.
Induced Polarization
To map out zones of disseminated sulphide
mineralization at Spotty Hill and other showings
Field Mapping and Sampling
To ground truth and sample VTEM anomalies and
zones of disseminated mineralization exposed on
surface.
Slide 34
35. INVESTOR RISK
MITIGATION
100% ownership; district-scale land package (>Sudbury)
Public Co management/financing experience
Technical team is deep
Secure political jurisdiction and no land claims issues
Accessible, along year-round pack ice free coast line
Historic exploration data is remarkable ($10M plus)
Geology
Abundance of Ni-Cu occurrences at surface & in drilling
High Nickel Tenor – consistent and economic grade
Major, long lived structures
Large-scale mafic igneous event associated with giant impact
New technologies in “old” camp work
– 75 EM anomalies
Slide 35
36. Discovering High Grade Copper Deposits
in Manitoba, Canada
VMS:TSX.V
Explorer to Producer
NAN: TSX.V
The World’s Next Nickel Belt
Astrologer’s Fund Conference
February 12, 2013