Northcliff Resources Ltd. · TSX:NCF
Northcliff Resources — Investor Presentation (December 2015)
27 slides from Northcliff Resources's investor presentation, December 2015
Slide 1: Northcliff Resources Ltd. Corporate Presentation
Northcliff Resources Ltd. Corporate Presentation Sisson Tungsten-Molybdenum Project New Brunswick, Canada December 2015 TSX: NCF
Slide 2: Cautionary and Forward Looking Statements
Cautionary and Forward Looking Statements CAUTION REGARDING FORWARD-LOOKING INFORMATION This document contains “forward-looking statements” that are based on Northcliff’s expectations, estimates and projections as of the dates as of which those statements were made. Generally, these forward-looking
Slide 3: Investment Highlights
Investment Highlights The Sisson Project has the potential to be a significant global tungsten producer Feasibility Study Completed Strategic Financing Partner Secured Provincial EIA Approval Received Undertaking Offtake Partnering 3
Slide 4: Sisson Project Highlights
Sisson Project Highlights Feasibility Completed Long Life Operation (27 Years) 2013 Feasibility Highlights Low Cost, Open Pit Mining Life of Mine 27 years Conventional Processing Post-Tax NPV (8%) $418M Ammonium Paratungstate (APT) Plant Post-Tax IRR 16.3% 2 Year Construction Period Pr
Slide 5: Strategic Financing with Todd Corporation
Strategic Financing with Todd Corporation On October 3, 2013 the Todd Corporation acquired a 25% effective interest in the Sisson Project for $19M comprising: 15% of Northcliff stock in a $5M PP 11.5% direct interest in the Project for $14M On May 28, 2015 Todd acquired an additional 5% inte
Slide 6: Overview of Project Financing Plan
Overview of Project Financing Plan Secure up to 100% bankable offtake commitment for tungsten and molybdenum Potential Financing Structure 6
Slide 7: Superior Location and Infrastructure
Superior Location and Infrastructure The Sisson Project is located within commuting distance of local towns POWER Low power costs projected – $0.065/kwh NB Power to construct line to plant site WORKFORCE Access to local workforce familiar with mining Work camp not required INFRASTRUCTURE 1
Slide 8: Proposed Site Infrastructure
Proposed Site Infrastructure Source: 2013 Feasibility Study 8
Slide 9: Reserve and Resource Benchmarking
Reserve and Resource Benchmarking The 2013 Feasibility Study has established Sisson as one of the most significant tungsten reserves outside China Sisson Deposit 43-101 Mineral Reserves (January 2013 at $8.83/tonne NSR cutoff1) Cut-Off Grade Tonnes NSR WO3 Mo Tungsten (WO3) Contained Mo Category (NS
Slide 10: Tungsten Mines and Development Stage Projects
Tungsten Mines and Development Stage Projects Sisson is one of the most important tungsten development projects in the near term pipeline Annual Tungsten Production Source: Public company (current or forecast) information, published technical reports. 10
Slide 11: Open Pit Design
Open Pit Design NSR assumptions: Metal Prices: WO3 – US$350/ mtu, Mo – US$15/lb; Assumed Concentrator Recoveries: WO3 – variable with feed grade, Mo – 82%; APT Plant Recovery of WO3 – 97%; US$:CDN$0.9:1; NSR = (WO3% * NSP WO3*Recovery WO3*22.046) + (Mo%*NSP Mo Recovery Mo*22.046); Net Smelter Price
Slide 12: Sisson Mining and Processing
Sisson Mining and Processing Mine life: 27 years Average Strip ratio of 1:1 Quarry to provide material for TSF construction 30,000 tonne per day milling capacity Moly conc: ~50% grade; 82% recovery Ongoing testwork FS includes APT plant Source: 2013 Feasibility Study 12
Slide 13: Operating Cost and NSR
Operating Cost and NSR Est. manpower @ Operating Cost $/tonne* C$/mtu start up Mining ($2.09 per tonne mined) 4.15 77.7 141 Milling 7.11 133.2 77 Waste Management 0.59 11.1 G&A 0.47 8.8 37 Total Cost (Concentration) 12.32 $230.8 Molybdenum By-Product Credit (5.76) (107.8) Total Operating Cost $6.56
Slide 14: Permitting Process
Permitting Process Hew JORTHCLIFF a PROVINCIAL [J | FEDERAL EIA Registration Submission of Project Description Determination Review Project Description Accepted v v Federal Coordination v Notice of Commencement Issued v wy Participant Funding Guidelines ¥v v Coordinated Provincial/Federal Environmen
Slide 15: Stakeholder and First Nations Engagement
Stakeholder and First Nations Engagement Early identification and ongoing engagement of key stakeholders and First Nations Established presence in Province Funded Aboriginal Traditional Use Study with 3 local First Nations Process Agreement established with the Woodstock First Nation to nego
Slide 16: Summary
Summary Attractive Project Fundamentals Technically and economically robust Feasibility Proven technological design Completed Excellent location & existing infrastructure Provincial EIA approval received Strategic investment received Milestones Permitting underway Basic engineering initiated HDI dev
Slide 17: Appendix
Appendix
Slide 18: Hunter Dickinson Inc.
HDINORTHCLIFF O HDI COMPANIES @ HISTORIC COMPANIES Heatherdale North American etals fi Northern Dynasty Quartz Mountain Amarc Great Basin Gold Taseko Great Basin Gold df
Slide 19: Reserve
Reserve Sisson Deposit 43-101 Mineral Reserves (January 2013 at $8.83/tonne NSR cutoff1) Cut-Off Grade Tonnes NSR WO3 Mo Tungsten (WO3) Contained Mo Category (NSR $/t) (Mt) ($/t) (%) (%) (million mtu) (Mlb) Proven 8.83 105.4 25.48 0.069 0.023 7.3 53.0 Probable 8.83 228.9 23.54 0.065 0.020 14.9 101.7
Slide 20: Geology and Mineralization
Geology and Mineralization A large, intrusion-related W-Mo deposit formed approximately 375 million years ago Spans a near-vertical contact between Ordovician meta-volcanic/sedimentary rocks to the east and a Devonian gabbro intrusion to the west Molybdenite and scheelite are hosted by quartz
Slide 21: 2013 Feasibility Study Engineering Consultants
2013 Feasibility Study Engineering Consultants Consultant Sisson Contribution Qualified Person Infrastructure, Civil, Electrical, Mechanical Steven Pozder, PE and compiling the Feasibility Study Pit slope design, waste and water management facility design, operating and Daniel Friedman, PEng capital
Slide 22: Northcliff Management Team
Northcliff Management Team Chris Zahovskis Kelly Boychuk B.Sc. Geological Engineering, B.Sc. (Hons) Mining Engineering, P.Eng. P.Eng., MBA (Vice President │ Engineering) (President, CEO and Director) Mr. Boychuk is a Qualified Professional Engineer and Chris Zahovskis is a mining engineer with 30 ye
Slide 23: Northcliff Board of Directors
Northcliff Board of Directors Marchand Snyman (Chairman & Director) Jacob Roorda (Director*) Marchand Snyman is a dual Australian & South African Jacob Roorda has over 30 years of experience in the Chartered Accountant. He has more than 18 years oil and gas industry and is currently a Director for e
Slide 24: The Uniqueness of Tungsten
The Uniqueness of Tungsten Tungsten Uses Cemented Carbide Uses Source: Roskill Information Services (2011) Key properties such as hardness, highest melting point make substitution difficult Strategic Metal in the USA and European Union Tungsten consumption correlates with global GDP growth F
Slide 25: Tungsten Uses
Tungsten Uses Tungsten (WO3) is a steel-gray metal that has the highest melting point of all metals in pure form It is the most important alloy in tool & construction steels – enhancing hardness, cutting efficiency & speed with similar hardness to diamonds Hard metal tools made from tungsten a
Slide 26: Molybdenum Uses
Molybdenum Uses An important alloy in stainless steel & steel In the US, steel industries drive ~75% of molybdenum demand Molybdenum uses & benefits: Automotive parts Construction equipment Electrical contacts Oil and gas drilling and pipelines Gas turbines (jet engines) Also impor
Slide 27: www.northcliffresources.com www.hdimining.com
www.northcliffresources.com www.hdimining.com 27
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