West High Yield (w.h.y.) Resources Ltd. · TSXV:WHY
West High Yield (w.h.y.) Resources — Investor Presentation (November 2011)
26 slides from West High Yield (w.h.y.) Resources's investor presentation, November 2011
Slide 1: Developing a substantial magnesium resource in Western Canada
Developing Developing a substantial a world magnesium class magnesium resource in resource in Western Western Canada Canada TSXV - WHY
Slide 2: Disclaimer and Forward Looking Statement
Disclaimer and Forward Looking Statement No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This presentation includes certain “forward-looking statements”. All statements other than statements of historical fact, incl
Slide 3: Reasons to Own WHY Resources
Reasons to Own WHY Resources • NI 43-101 Report from independent engineering firm SRK Consulting of Denver, Colorado indicates a resource with 9,160,000 tonnes of magnesium; 7,145,000 tonnes recoverable. • Current magnesium price of $5,350 USD/t. (2) • Resource still open in all directions and at de
Slide 4: Corporate Profile
Corporate Profile West High Yield (W.H.Y.) Resources is engaged in the exploration and development of their magnesium property near Rossland, BC. Current Price: $0.20 - $0.30* 52 Week Low-High: $0.155 - $0.60 Basic Shares Outstanding: 45,320,394 Fully Diluted: 52,045,394 Market Capitalization: $12.0
Slide 5: Management Team
Management Team Board of Directors Management Frank Marasco Jr. - Director, President and CEO Frank Marasco Jr. - Director, President and CEO Mr. Marasco is the founder of WHY Resources. Mr. Marasco is also Mr. Marasco is the founder of WHY Resources. Mr. Marasco is also current President and Direct
Slide 6: Property Location – Record Ridge South
Property Location – Record Ridge South Vancouver Canada Rossland/Trail USA WHY Property Vancouver Rossland/Trail 6
Slide 7: WHY Property - Record Ridge South
WHY Property - Record Ridge South • Proximity to Rossland (10 km) and Trail, BC (30 km) • Established roads and highways Excellent • Electrical power, water and natural gas • Nearby rail access with CP Rail (Trail, BC) Infrastructure • 8 km north of Canada-US Border • Nearest port is Vancouver, BC •
Slide 8: WHY Property - Record Ridge South
WHY Property - Record Ridge South Record Ridge South Property Drilling of hole 17 of 26 for 2011 drill program at Record Ridge South Property (Sep 8, 2011) View of Rossland, BC from Record Ridge South Property Canada-US border area from Record Ridge South Property 8
Slide 9: Exploration Drilling, Assay and Metallurgical Results
Exploration Drilling, Assay and Metallurgical Results • The project is an intermediate-advanced stage magnesium exploration project that was mapped, surveyed and drilled by the company from 2006 to current date. • Exploration and drilling of the Record Ridge ultramafics indicate that they are tabula
Slide 10: Approximate Outline of Mineral Resource Estimation
a) t u W100 = Appoximate Outline of Mineral Resource r Estimation & 2014 nit! Hotes WEST HIGH YIELD RESOURCES Holes D: in 2008 Record Ridge South Magnesium-Nickel Project © Holes Dritied in 2007 ‘Trail Creek Mining Division, British Columbia Aerial View (Airphoto) eta Kilometer Marker = : : Septembe
Slide 11: Geology
Geology The WHY Record Ridge, serpentinized, 6.2km2 ultramafic body was previously mapped by Hoy and Dunne, British Columbia Geological Survey (BCGS) in 1998. 11
Slide 12: SRK Resource Report Summary
SRK Resource Report Summary • A 100% owned magnesium resource with a NI 43-101 Technical Report (1) by SRK Consulting Engineers and Scientists of Lakewood, Colorado dated February 2009. • The SRK Report, Mg 23.1% assay grade using a 12% Mg cut-off grade, reports a resource of 39.8 million tonnes wit
Slide 13: About Magnesium (Mg)
About Magnesium (Mg) • Magnesium is the lightest of the light industrial metals and the list for magnesium usage is also long and growing at a fast pace. • Current or long standard uses of magnesium include a multitude of alloys with aluminum, manganese, lithium, zinc, iron and steel, but it is most
Slide 14: Global Supply of Magnesium
Global Supply of Magnesium China is the largest producer of magnesium in the world. • China’s dominance in magnesium could be affected by changes in trade relations, currency exchange rates, internal environment standards and increases in energy/labour costs opening more doors for North American pro
Slide 15: Global Demand for Magnesium
Global Demand for Magnesium Geographical Breakdown World Market Oceana Africa / Middle East 1,850 7.4% 1.3% 1,800 1,750 $US Millions Europe Asia 1,700 35.2% 25.9% 1,650 1,600 1,550 1,500 30.2% Americas Source: USGS Source: USGS 15
Slide 16: Property Development Schedule
Property Development Schedule Property and mine ready for production around Q4 2013 / Q1 2014 2011 2012 2013 2014 Economics and Scoping (PEA) Drilling, Metallurgical Testing, PEA Study Prefeasibility Ariel Survey, Resource Drilling/Estimation, Groundwater Study, Metallurgical Testing, Mine Design, M
Slide 17: Use of Funds and SRK Recommended Activities
Use of Funds and SRK Recommended Activities • Economics and Scoping (PEA) • $1.615 MM Raise / Timeline: Jun 2011 to Feb 2012 Item Detail Time Approximate Cost Duration (CDN$) Pit Delineation Drilling 26 holes for 4,000m with all inclusive 6 months 800,000 costs Geotechnical Drilling 2 holes for 400m
Slide 18: Resource Highlights
Resource Highlights Exceptional Value % of NI 43-101 Captured • Resource underpins the stock price. Resource vs. Share Price • Currently undervalued stock price as it represents 14% less than 1% of NI 43-101 resource value. 5% of Resource 12% • At $5.00 per share, this would represent only 0.59% % o
Slide 19: Contact Us
Contact Us West High Yield (WHY) Resources Suite 1500, 407 – 2nd Street SW Calgary, AB T2P 2Y3 Office: (403) 283-5555 Fax: (403) 206-7159 Frank Marasco, President and CEO frank@whyresources.com www.whyresources.com Lawyers: Bennett Jones LLP / Carscallen LLP Bankers: TD Bank Canada Trust Engineers:
Slide 20: Appendices
APPENDICIES WWW.WHYRESOURCES.COM
Slide 21: Applications of Magnesium Alloys
Applications of Magnesium Alloys Automotive Industry • Over 100 different components including engine blocks, gear boxes, console brakes, valve covers and wheels. • Magnesium is being increasingly used in cars to reduce vehicle weight leading to better fuel economy. Engine Equipment 1% Strategic Met
Slide 22: Intermediate Magnesium Products
Intermediate Magnesium Products • Building of Magnesium Oxide (MgO) Board and Magnesium Cement Plants could provide early revenues. • Cost is approximately $50 to $100 million Future Smelter (TBD) to build the 2 plants over a 18 to 24 month period. LAB / Magnesium MgO Board Plant Leaching Cement Pla
Slide 23: Magnesium Oxide (MgO) Board
Magnesium Oxide (MgO) Board • Magnesium Oxide Board (MgO Board) is a factory-made, non insulating sheathing board product. • Applications for construction include wall and ceiling linings, fascias, soffits, tile backings and underlayments. • Replacement for O.S.B., plywood, cement board and drywall.
Slide 24: MgO Board Comparison
MgO Board Comparison MgO Board Gypsum Cement Board Plywood O.S.B. Board Flame Spread 0 15 0 High High Smoke Developed None Low None High High Water Resistant Yes No No No No Mold/Mildew Resistant Yes No Yes No No Termite Resistant Yes Yes Yes No No Thermal / R Value per 1.2 0.9 0.8 1.2 1.0 inch Impa
Slide 25: Magnesium Cement
Magnesium Cement • Requires only 20-40% of the energy compared to Portland cement. • Environmentally friendly, non-toxic cement. • Exceptional health promoting properties for occupants of homes built with this material. • Binds naturally and exceptionally well to all thing cellulose – “Living cement
Slide 26: NSERC Magnesium Network (MagNet)
NSERC Magnesium Network (MagNet) MagNet is a research initiative with 18 academic researchers from five Canadian Universities (UBC, Waterloo, McMaster, McGill and Ecole Polytechnique) and industrial partners including GM Canada to research the use of magnesium alloys in the automobile industry. The
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