Karnalyte Resources Inc. · TSX:KRN
Karnalyte Resources — Investor Presentation (February 2012)
17 slides from Karnalyte Resources's investor presentation, Feb 29, 2012
Slide 1: Building a 2.1 million tonne per year potash project
Building a 2.1 million tonne per year potash project
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation, or industry results, to be materia
Slide 3: Investment highlights
Investment highlights • Strong potash industry fundamentals • Attractive jurisdiction with existing infrastructure • 155 Mt of proven and probable potash reserves • >70 yyear mine life at expanded p 2.125 Mtpy py capacity p y • Attractive, de-risked project profile • Bankable feasibility study • Rel
Slide 4: Significant Growth Expected in Potash Demand
Significant Growth Expected in Potash Demand Demand for Potash Drivers KCl (Mt) 80 93% off potash t h used d as 70 fertilizer 60 Increasing world population 50 40 Changing diet profile in 30 developing world 20 10 Decreasing arable land 0 Increasing use of biofuels 2006 2007 2008 2009 2010
Slide 5: An Established Potash Mining Jurisdiction
An Established Potash Mining Jurisdiction N SASKATCHEWAN Saskatoon PCS PCS Cory Patience Lake Agrium Vanscoy Town of SASKATCHEWAN PCS Mosaic Wynyard Allan Colonsay PCS Karnalyte Lanigan Ca Resources na KP KP360360 A and (T Ye ra llo dian KLSA 010 ns w Pa – he ci Ca a d fi c na H Ra 25 50 75 100 km P
Slide 6: Competitive Advantage of Karnalyte's Carnallite Deposit
Competitive Advantage of Karnalyte’s Carnallite Deposit Unique Features of Carnallite Competitive Advantages of Karnalyte’s Deposit • Water soluble ore amenable • Inter-bedded sylvinite to solution mining seams allow for two sources of KCl • Allows for lower capex & shorter construction timeline • F
Slide 7: Solution Mining Overview
Solution Mining Overview Surface Facility Brinefield Brine Processing Ground Surface Cavern Patience Lake Member (P d i (Predominantly l CCarnallitite) lli i ) Cavern Belle Plaine Member (Predominantly Carnallitite) Esterhazy Member (Sylvinite) Cavern Source: Company Reports, Bankable Feasibility St
Slide 8: Brine Processing Overview
Brine Processing Overview Brine Processing Overview Simplified Flow Diagram Brine processing removes impurities from Cooling Process Heat Water Brinefield Water Source the extracted mineral: • Water is removed from production brine, Brine Storage increasing the concentration of MgCl2 and supersatura
Slide 9: Quality Potash Product
Quality Potash Product Potash Granular Pellets • Product will exceed current market purity standards • Launched branded product “KCl97” • Low sodium content (less ( than 1% % salt vs. industry 3.5% to 4.5%) • Uniform size granular pellets • Better handling and storage • Ideally suited for bulk blend
Slide 10: Key Milestones and Near-term Catalysts
Key Milestones and Near-term Catalysts 2008 2009 2010 2011 2012 2013 2014 Granted Permit KP360 Resource NI 43-101 Report Scoping Study TSX IPO Subsurface Mineral Lease Reserve Update Bankable B k bl Feasibility F ibilit Study St d Potash Test Facility - Magnesium Pre-feasibility (Q1,
Slide 11: Management Team Experienced in Building Potash Mines
Management Team Experienced in Building Potash Mines Robin L. Phinney, P.Eng., President, Chief Executive Siu Ma, MBA, P.Eng., VP, Engineering, Research and Officer and Director Development – Held various engineering positions with PCS for 15 years – Over 30 years of experience in engineering servic
Slide 12: Experienced Plant and Mine Operations Team
Experienced Plant and Mine Operations Team Ronald F. J. Olchowski, B.Sc., Mech. Eng., Surface Operations Manager – Managed and/or designed several operating plants, including sodium sulphate operations, a potassium sulphate plant and a sodium bicarbonate pilot plant, flax straw processing , a Metaka
Slide 13: Board of Directors
Board of Directors Bruce Townsend, Director and Chairman of the Board* Paul Sharpe, B. Sc., Chemistry Director – Director, Financial Analysis Nitrogen Operations with PCS – Partner with the law firm Perley – Robertson, Hill & from 2001 to 2009 McDougall LLP and practices primarily in the chemical, a
Slide 14: Summary of Bankable Feasibility Study
Summary of Bankable Feasibility Study • Production targeted in 2014 • Initial p production of 625 Ktpy py • Planned ramp up to 2.125 Mtpy in 5 – 6 years • Total Reserves and Resources support a > 70 year mine life – Proven and Probable reserves of 155 Mt • Project development capital expenditure: •
Slide 15: Resource Reclassification to Reserves
Resource Reclassification to Reserves • NI 43-101 Compliant Bankable Feasibility Study Completed October 24, 2011 by Ercosplan and North Rim Scoping Study Bankable Feasibility Study Extraction Average KCl Net KCl Extraction Average KCl Net KCl Reserves & Resources Tonnage (Mt) Grade (%) Tonnage (Mt)
Slide 16: Opportunity for Resource Expansion
Opportunity for Resource Expansion Canada Potash Corp. Quill Lake 100% Town of KP 444Y N Wynyard Yellowhead Hwy (Trans-Canada Hwy) KW 2-24 DH-11 DH-21 DH-20 DH 20 KLSA 010 KW 2A11-24 KW 3C4-8 Karnalyte KW 13-36 Resources KP 360 KW 2C6-32 KP 445 KP 310 KW3A11-27 DH-10 KW 3B4-26 KW 4B14-24 KW 4D14-21
Slide 17: The most advanced independent potash developer
The most advanced independent potash developer
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