West High Yield (w.h.y.) Resources Ltd. · TSXV:WHY
West High Yield (w.h.y.) Resources — Investor Presentation (December 2022)
30 slides from West High Yield (w.h.y.) Resources's investor presentation, December 2022
Slide 1: Company Presentation: A Unique Magnesium and Gold Opportunity in British Columbia
A UNIQUE MAGNESIUM AND GOLD OPPORTUNITY IN BRITISH COLUMBIA COMPANY PRESENTATION TSX: WHY.V WWW.WHYRESOURCES.COM WHY.V | December, 2022 1
Slide 2: Disclaimer
DISCLAIMER Disclaimer and Forward-Looking Statement No stock exchange, securities anticipated in such statements. Important factors that could commission or other regulatory authority has approved or disapproved the cause actual results to differ materially from the Company expectations include, inf
Slide 3: Why West High Yield?
WHY WEST HIGH YIELD? MULTIPLE POTENTIAL CASH FLOW GENERATING PROJECTS ADVANCED MAGNESIUM PROJECT WITH ROBUST PFS HIGH POTENTIAL GOLD EXPLORATION AT PAST PRODUCING MIDNIGHT PROJECT HIGH GRADE GOLD MINE REJECTS PROJECT WITH CASH FLOW POTENTIAL GREAT INFRASTRUCTURE STRONG MANAGEMENT AND BOARD WHY.V | D
Slide 4: Record Ridge Magnesium Mine: A Unique Investment Opportunity
RECORD RIDGE MAGNESIUM MINE A Unique Investment Opportunity • World Class advanced-stage project expected permit shovel ready in 2023, with robust economics based on PFS showing after tax NPV 5% of $872 millions and an Advanced IRR of 72% 1 Project • Conventional open pit mining operation with poten
Slide 5: Record Ridge Magnesium Mine Project Summary
RECORD RIDGE MAGNESIUM MINE Project Summary OWNERSHIP 100% owned by West High Yield Resources Ltd. • 8,972 hectares property located 7.5 km air west to southwest of the town of Rossland, B.C., Canada; 5 km north of the U.S.-Canada border, with excellent regional infrastructure LOCATION including est
Slide 6: PFS Highlights: Robust Project Economics
PFS HIGHLIGHTS Robust Project Economics PFS Highlights Based ON HCl Leaching Process1 Product >99% MgO >98% MgO Mg Ingot Unit US$ US$ US$ Product Price $2,200 $1,500 $6,000 NPV 5% Pre-tax $ Million $1,417 $994 $1,636 IRR Pre Tax % 73.5 80 53 NPV 5% Post Tax $ Million $1,254 872 1,139 IRR Post Tax %
Slide 7: PFS Highlights: NPV Sensitivity
PFS HIGHLIGHTS Robust Project Economics-2 NPV Sensitivity based on MgO product price, CAPEX, and OPEX1 1,520.00 1,298 1,320.00 1,156 1,120.00 978 1,014 943 907 872 NPV @ 5% 920.00 836 801 730 765 897 889 880 872 863 720.00 587 855 847 520.00 445 320.00 120.00 -30% -20% -10% Base 10% 20% 30% MgO Pric
Slide 8: RR Project Timeline
PFS REPORT RR PROJECT TIMELINE PFS-Stages-1 and 2 Advanced stage project presented an optimized proprietary HCl process with higher product purity and recoveries, thus substantially improving project economics. RESOURCE ESTIMATE WHY produced NI 43-101 WHY completed PFS report Technical Report initia
Slide 9: RR Magnesium Mine Project Location
RR MAGNESIUM MINE Project Location • Located in a well-established mining district near the town of Rossland, BC • 5km north of the US - Canada border • Supporting industries in close proximity • Nearby rail access with CP Rail (Trail, BC) • 500km east of the ports of Vancouver, BC, and Seattle, WA
Slide 10: RR Project Exploration: NI 43-101 Resource Estimate
RR PROJECT EXPLORATION PEA NI 43-101 Resource Estimate Updated Resource Estimate (2013) Contained Mg Resource Category %Mg Cut-off Total Mt %Mg Grade (Mt) Measured 28.4 24.82 7.05 Indicated 14.6 24.21 3.54 21.9 M&I 43.0 24.61 10.59 Inferred 1.07 24.37 0.26 • Over 10,000 metres drilling, 77 holes, al
Slide 11: RR Mine Plan
RR MINE PLAN Proposed Project Plan Parameter Year 1 Year 2 Operating Days 182 182 Mobile Crusher Based on Project Description Report (Greenwood Environmental, 2022) 250 kt 250 kt Feed Mg Grade 24.5% 27% Waste Stripping 60 kt 40 kt Total Material 310 kt 290 kt Mined Mining Rate 1,700 tpd 1,600 tpd •
Slide 12: RR Ore Processing: HCl Leaching Process
RR ORE PROCESSING HCl Leaching Process • Developed at KPM lab facility (Kingston, Ontario) • Proprietary hydrometallurgical process • High purity (over 99% purity) MgO or Mg(OH)2 products and 94.85% recoveries • Marketable by-products (Nickel, Silica, Fe) • Closed-loop with acid regeneration • Low e
Slide 13: Magnesium Use
MAGNESIUM USE 100’s of applications in a variety of industries ENERGY STORAGE WALL BOARDS Supersedes Lithium Fire and water resistant PHARMACEUTICAL AUTOMOTIVE MG CEMENT Vital to human health Light weight and strength More strength and durability AGRICULTURAL AEROSPACE Vital to plant growth Weight a
Slide 14: Magnesium Advantage
MAGNESIUM ADVANTAGE Wide use of Magnesium makes it one of the US strategic minerals AUTOMOTIVE METALLURGY AEROSPACE AND BATTERIES AGRICULTURE AND HEALTH • Vehicle manufacturers are • Lightweight properties of • Magnesium (in the form of making lighter cars for more • Use of high purity MgO in magnes
Slide 15: Magnesium Market: Market Forces
MAGNESIUM MARKET MARKET FORCES • Magnesium is considered as one of the 35 strategic/critical minerals for the US economic and national security with an Executive order to stockpile. • US has announced the Energy Resource Governance Initiative (ERGI) in 2019 to support initiatives with member countri
Slide 16: Magnesium Market: Market Validation
MAGNESIUM MARKET MARKET VALIDATION Current global annual market for all Mg products exceeds 29M tonnes. Focus is on the following industries including government and military: • Pharmaceutical Companies • Magnesium Ingot Bar Suppliers • Potential EV Battery Companies (currently under R&D) • Fertiliz
Slide 17: Work Plan
WORK PLAN SHORT TERM LONG TERM • Developing demonstration plant • Budget of $250 M • Budget of $15M with potential • Commercialization (18-24 months) 75% Federal/Provincial Government funding and 25% • Feasibility Study of the commercial plant company funding • FEED Study • Commissioning in 12-14 mo
Slide 18: Demonstration Plant
DEMONSTRATION PLANT SEMI COMMERCIAL • Operating at 0.5 tph • Achieving all technical objectives • Mitigating the risks associated with the scale- up to the commercial facility • Generating sufficient engineering data for a full Feasibility Study (FS) including a comprehensive technology overview and
Slide 19: Project Schedule
PROJECT SCHEDULE Short and Long Terms MTHS 22 2023 2024 2025 2026 2027 2028 # Milestones Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DEMO PLANT 36 M1 Engineering and Procurement M3 Commissioning M4 Operation M5 Disassembly COMMERCIALISATION 42 Engineering and Procureme
Slide 20: Production Outlook
PRODUCTION OUTLOOK Mg Industry Product Verticals • The company will specialize in the mining and production of high purity MgO product • The company will JV/Partner with other parties/end users to develop multi Mg industry verticals 3. Wallboard Plant III 1. Magnesium Oxide I 4. Cement Plant IV 2. M
Slide 21: Magnesium and Gold: Near Term Strong Cash Flow Projects
MAGNESIUM AND GOLD Near Term Strong Cash Flow Projects RECORD RIDGE MAGNESIUM PROJECT 2023 • Advanced world-class project expected permit ADVANCED ready in Q1 2023 and ready to mine in 2023. MAGNESIUM • Selling high grade serpentine ore to multiple Mg PROJECT AT refineries PERMIT STAGE HIGH GRADE GO
Slide 22: Mining Magnesium Ore
MINING MAGNESIUM ORE Company signed Future Contract LOI with Galaxy Magnesium in Dec 2021 for the sale of 234K tpa of Mg ore at $500/Mt • Mine construction following provincial permit approval; Mine production of 250 ktpa to start in 2023; • Attractive economics and rapid payback with massive compet
Slide 23: Gold Mine Rejects Project
GOLD MINE REJECTS PROJECT GRADE 1 AND TONNAGE 2 • Over 225K metric tons of mine rejects already mined from the many historic mines in the area • Average grade of 2.5 ppm Au • Over 18K ounces of gold with over $30M value. 1. Grade is based on assay results by MetSolve of 99 bulk samples taken randoml
Slide 24: Midnight Project
MIDNIGHT PROJECT High Potential Gold Exploration Company secured $2.5M flow through funds in Dec 2021. Drilling started on the property in late April. Over 6,200m (20,000 ft and 41 holes) exploration/drilling was completed during 2022. DEEP DRILLING AT THE MIDNIGHT CLAIM • High potential of finding
Slide 25: Midnight Mine Area: Geological Settings
• The Midnight area contains primarily narrow and erratic but high-grade quartz –carbonate veins with native gold MIDNIGHT MINE AREA and minor silver and sparse sulphides Geological Settings • Company’s senior geology consultants support the theory that the series of gold-enriched quartz veins and g
Slide 26: Midnight Mine Area: Past Production and Drilling Highlights
MIDNIGHT MINE AREA Past Production and Drilling Highlights Recorded past production from the combined WHY Resource’s properties up to 1941 CLAIM TONNES GRAMS AU GRADE Au g/t OUNCES Au Grade Au OPT IXL 5248 809766 154 25912.5 4.49 MIDNIGH 4760 218346 46 6987.1 1.34 T OK 293 17916 61 573.3 1.78 TOTAL
Slide 27: Corporate Profile
CORPORATE PROFILE TSXV: WHY Venture Exchange Listing SHARES OUTSTANDING 82.0M TSX: WHY 52 Week High-Low FULLY DILUTED 94.5M $0.07 - $1.22 INSIDER OWNERSHIP MARKET CAPITALIZATION 33% $37M DEBT & CASH $3.7M | $250K WHY.V | December, 2022 27
Slide 28: Our Professional Team
OUR PROFESSIONAL TEAM FRANK MARASCO PAT NELSON MARIA MARASCO BARRY BAIM FOUAD KAMALEDDINE CEO, DIRECTOR DIRECTOR DIRECTOR DIRECTOR PHD, P.ENG, ADVISOR Frank Marasco is also President and Ms. Nelson was the Vice Chair and Mrs. Marasco is an Mr. Baim brings over 35 years Dr. Kamaleddine is the founder
Slide 29: Why Invest in W.H.Y Resources?
WHY INVEST IN W.H.Y RESOURCES? Multiple Stream of Revenue Potential HIGH GRADE GOLD EXPLORATION MAGNESIUM MINIING REJECTS AT MIDNIGHT CLAIM ü WHY will produce low cost, high purity, ü Over 225K metric tons of mine ü High potential of finding high- and high margin magnesium products for rejects alrea
Slide 30: Contact Us
CONTACT US West High Yield (W.H.Y.) Resources Ltd TSXV: WHY Frank Marasco, President and CEO Email: frank@whyresources.com Office: (403) 660 3488 Fax: (403) 206 7113 PO Box 68121 Calgary, Alberta T3G 3N8 www.whyresources.com WHY.V | December, 2022 30
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