Northern Dynasty Minerals Ltd. · TSX:NDM
Northern Dynasty Minerals — Investor Presentation (January 2011)
34 slides from Northern Dynasty Minerals's investor presentation, January 2011
Slide 1: The Pebble Project: The Future of U.S. Mining and Metals
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Slide 2: Pebble is Among the World's Greatest Stores of Mineral Wealth
Pebble is Among the World’s Greatest Stores of Mineral Wealth Pebble has the potential to supply one-quarter of U.S. copper demand for 50+ years. 2 2
Slide 3: Mining Projects are Prevalent in the State of Alaska
Mining Projects are Prevalent in the State of Alaska 3 3
Slide 4: Alaska is a Resource Development State
Alaska is a Resource Development State Alaska State Constitution “It is the Policy of the State of Alaska to encourage…the development of its resources by making them available for maximum use consistent with the public interest” Red Dog: the world’s largest zinc mine 4 4
Slide 5: Pebble is on State Land Designated for Mineral Exploration & Development
Pebble is on State Land Designated for Mineral Exploration & Development Bristol Bay Area Plan “The general resource management intent for the Pebble copper area is to accommodate mineral exploration and development…” 5 5
Slide 6: Existing Infrastructure at Iliamna Operations Centre
Existing Infrastructure at Iliamna Operations Centre PLP Operations Lake Iliamna Centre Two 5,000 Foot Paved Airstrips 6 6
Slide 7: Pebble is a World Class Mineral Resource
Pebble is a World Class Mineral Resource • 5.9 B tonnes of Measured & Indicated • 4.8 B tonnes of Inferred Pebble Deposit 7 7
Slide 8: In Summary…
In Summary… Located on US soil Alaska is a mining friendly jurisdiction Located on Alaska state-owned land State lands designated for mineral exploration and development No permafrost 1000 feet above sea level Gently rolling tundra Existing infrastructure 8 8
Slide 9: Forecast Operational Revenues: 60% Cu, 30% Au & 10% Mo
Forecast Operational Revenues: 60% Cu, 30% Au & 10% Mo1 Measured & Indicated Copper 55 B lb Gold 67 M oz Molybdenum 3.3 B lb Inferred Copper 26 B lb Gold 40 M oz Molybdenum 2.3 B lb 1. See detailed resource estimates attached. 9 9
Slide 10: Volume, Grades & Metallurgy to Support a Long-Life Mine
Volume, Grades & Metallurgy to Support a Long-Life, High Volume Open-Pit and Underground Mine 10 10
Slide 11: Global Ranking of Porphyry Deposits – Contained Copper
Global Ranking of Porphyry Deposits1 – Contained Copper 11 11
Slide 12: Global Ranking of Porphyry Deposits – Contained Gold
Global Ranking of Porphyry Deposits1 – Contained Gold 12 12
Slide 13: Pebble Property Captures the World's Most Extensive Mineral System
Pebble Property Captures the World’s Most Extensive Mineral System 13
Slide 14: A Clear Path to Development
A Clear Path to Development 14 14
Slide 15: Positioning the Pebble Partnership
Positioning the Pebble Partnership Partners in Alaska’s Future A Shared Commitment to Sustainable Development and Social and Community Responsibility. Northern Dynasty has Anglo American brings a delineated one of the world's great depth of corporate resources and a mineral deposits, assembling one
Slide 16: A 50:50 Mirror Image Partnership
A 50:50 Mirror Image Partnership Northern 49.95% Pebble Dynasty Property 50% Pebble + 0.1% 100% Mines Corp. $1.425 - 1.5 50% (General Partner) Billion Anglo Equity American 49.95% Financing Prefeasibility Study $325 M Anglo must invest Feasibility Study $175 M US$1.425 to 1.5 billion in Construction
Slide 17: Financial & Human Capital in Place for Systematic Project Advancement
Financial & Human Capital in Place for Systematic Project Advancement Total Project Expenditures1 US$ Millions Environmental Year Engineering Drilling TOTAL Year Engineering Socioeconomic 2002-2009 85 185 160 430 2010 21 28 24 73 1 Through 2010, Anglo American investment $323 million | NDM investmen
Slide 18: Alaska Leadership Team
Alaska Leadership Team “In my view, the Pebble Project presents a tremendous opportunity for the people of Bristol Bay and Alaska” - John Shively, CEO “I have faith in our regulatory standards in Alaska, and in the potential of modern engineering and environmental science to design projects that pro
Slide 19: Advanced Engineering on Mine Development Alternatives
Advanced Engineering on Mine Development Alternatives World-class mine development team working on Prefeasibility Study • 20 dedicated engineers & technical specialists • secondments from Anglo American • 58 engineering firms & specialized consultancies Eight mine development alternatives being inve
Slide 20: Mine Modeling in the 200,000 – 300,000 Tons per Day Range
Mine Modeling in the 200,000 – 300,000 Tons per Day Range Example - Milling at 200,000 Tons Per Day 0.30% CuEQ Cut-off Cu Au Mo Low Grade 0.42% 0.35 gpt 250 ppm Grade Recovery 85 % 74% 78% Feed Annual Production 500 M lbs 550,000 oz 28 M lbs 0.60% CuEQ Cut-off Grade 0.55% 0.41 gpt 290 ppm Average Gr
Slide 21: Advanced Engineering on Project Infrastructure: Road, Pipeline and Port Site
Advanced Engineering on Project Infrastructure: Road, Pipeline and Port Site 21 21
Slide 22: Power Generation & Transmission
Power Generation & Transmission 22 22
Slide 23: Comprehensive Environmental Study Programs
Comprehensive Environmental Study Programs • Air Quality • Wildlife & Terrestrial Resources • Surface & Groundwater • Noise • Water Quality & Trace Elements • Cultural Resources & Subsistence • Geochemistry • Land Use and Recreation • Snow Surveys • Socioeconomics • Wetlands • Visual Aesthetics • Fl
Slide 24: Stable & Predictable Regulation and Permitting
Stable & Predictable Regulation and Permitting • Exhaustive multi-disciplinary review process under NEPA – 11 federal and state agencies – 67 permit categories – broad public and stakeholder involvement – estimated to last 2 - 3 years • Rigorous environmental standards & permitting requirements Fina
Slide 25: A New Economic Foundation for Southwest Alaska
A New Economic Foundation for Southwest Alaska 25 25
Slide 26: In Summary: NDM's Valuable Asset Base
In Summary: NDM’s Valuable Asset Base 50% partner in America’s most important mine development World-class mine development and permitting team assembled Financing in place to take Pebble through permitting and well into construction ~$38.4 million in cash with no financial commitments These
Slide 27: Current & Prospective Interests: Metal Companies Ranked by Market Cap
Current & Prospective Interests Metal Companies Ranked by Market Cap1 1. Source: Capital IQ and Bloomberg; Market Capitalization as of 18-Mar-08. 27
Slide 28: Northern Dynasty Shares are Undervalued
Northern Dynasty Shares are Undervalued Listed NYSE Amex – NAK TSX – NDM Shares Out 94.1 Million Management Owns 12.0% Rio Tinto Owns 19.8% Mitsubishi Corp. Owns 11.0% Working Capital US $ 38.4 Million 28
Slide 29: Cautionary & Forward Looking Information
Cautionary & Forward Looking Information This presentation includes certain statements that may be deemed "forward-looking statements". All statements in the presentation, other than statements of historical facts, especially those that address estimated resource quantities, grades and contained met
Slide 30: Appendices
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Slide 31: Directors & Management
Directors & Management Robert Dickinson Executive Chairman Mr. Dickinson is an economic geologist with more than 40 years of mineral exploration experience, is Executive Chairman of Northern Dynasty and a director of the Pebble Limited Partnership. Mr. Dickinson leads Northern Dynasty’s project deve
Slide 32: 5.94 Billion Tonnes Measured & Indicated, 4.84 Billion Tonnes Inferred
5.94 Billion Tonnes Measured & Indicated 4.84 Billion Tonnes Inferred 32 32
Slide 33: World-Class Deposits are a Disappearing Breed
World-Class Deposits are a Disappearing Breed Top Undeveloped Gold Deposits in the World Note: Based on total contained gold – reserves + M&I + Inferred Russian reserve and resource classification – B+C1+C2 Source: TD Newcrest 33
Slide 34: Schematic Cross Section of Far East Target
Schematic Cross Section of Far East Target A Hole A’ 6348 Pebble Deposit 949 Feet Grading ? 1.92% CuEQ Drill Hole Lost in ZG1 Fault Far East Target 34
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