Karnalyte Resources Inc. · TSX:KRN
Karnalyte Resources — IPO Roadshow (November 2010)
17 slides from Karnalyte Resources's IPO roadshow presentation, November 2010
Slide 1: A significant potash development in an established mining jurisdiction
A significant potash development in an established mining jurisdiction
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: Strategy to build a 2 million tonnes per year potash facility
strategy to build a 2 million tonnes per year potash facility p y • phased construction plan • lower l capex than th a conventional ti l mine i 2
Slide 4: Investment highlights
Investment highlights • Strong potash industry fundamentals • Attractive jurisdiction with existing infrastructure • Significant potash resource • Attractive project profile • Carnallite resource amenable to solution mining • Keyy p project j milestone: completed p NI 43-101 compliant p scoping p g
Slide 5: Significant Growth Expected in Potash Demand
Significant Growth Expected in Potash Demand Demand for Potash Drivers KCl(mmt) 80 Increasing world population 70 60 Changing g g diet p profile in 50 developing world 40 30 Decreasing arable land 20 10 Increasing use of biofuels 0 2018 2010 2011 2012 2013 2014 2015 2016 2017 2019 2000 2001
Slide 6: 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 360 (T Ye ra llo dian ns w – he Pa Ca a d ci na H fi c 0 25 50 75 100 km d w Ra Highways Railwa
Slide 7: Significant Mineral Resource
Significant Mineral Resource Resources KCl KCl Resource Category Grade Range % mmt Indicated 13%–17% 56.2 Inferred 13%–19% 186.3 Drill Hole o e Su Summary a y Sc Schematics e at cs Source: Preliminary Assessment, Wynyard Carnallite Project, Subsurface Mineral Permit KP 360, Saskatchewan, Canada, Aug
Slide 8: Carnallite Resource Amenable to Solution Mining
Carnallite Resource Amenable to Solution Mining Solution Mining Conventional Mining • Water soluble ore amenable bl tto solution l ti mining Extraction Injection Ore Skips Brine Tank • Allows for lower capex & Sh ft Shaft shorter construction timeline than conventional Mining Machines mining Conveyo
Slide 9: Key Project Milestones Achieved
Key Project Milestones Achieved NI 43-101 compliant Preliminary Assessment complete • Drilling complete • 3D seismic complete Conceptual mine plan and plant design complete Designed by Foster Wheeler 8
Slide 10: Attractive Capex for New Potash Solution Mine
Attractive Capex for New Potash Solution Mine Estimated Capex (US$/tonne) $1,750 Mining Methodology Conventional $1 480 $1,480 Solution $1 059 $1,059 $991 $911 $744 Karnalyte Potash One Western Potash MagIndustries BHP Billiton Agrium (Wynyard Carnallite (Legacy Project) (Milestone Project) (Kouilou
Slide 11: Moving to Production
Moving to Production 2011 2012 2013 2014 Feasibility Geological Analysis Environmental Impact Plant construction 500,000 tonne commissioning • Staged project roll-out mitigates pre-construction risk • Above indicative work plan assumes that plant construction and commissioning can be completed withi
Slide 12: Proven & Committed Management Team
Proven & Committed Management Team Robin Phinney, P.Eng. President & CEO MANAGEMENT TEAM EXPERTISE 30 Years Experience in Process, Design & Engineering Ron Love, Love CA VP, Finance & CFO 16 Years Experience Process Engineering Siu Ma, MBA, P.Eng. VP, Engineering and R&D 30 Years Experience Geology
Slide 13: Strong Corporate Governance
Strong Corporate Governance Bruce Townsend, Chairman* – 28 years experience with Potash Corp. – Former Director of Financial Analysis Nitrogen Operations with PCS Ian Brown, CA, Director* – Chartered Accountant with over 20 years of financial and capital markets experience – Current C and d fformer
Slide 14: Quality Products
Quality Products • Potash Granular Pellets • Low sodium content • Uniform size granular pellets • Moisture resistant • leads to better handling and storage • Suited for bulk blending • Industrial Grade Potash Compacted Flake 13
Slide 15: End Markets
End Markets Sell potash granular pellets into Product to meet market demands for North American agriculture market purity, ease of handling and bulk blending Industrial-grade potash Potash compacted flake for bulk handling Potential sale of magnesium oxide 50.2 million tonnes magnesium to industrial
Slide 16: Opportunity for Expansion
Opportunity for Expansion Quill Town of Lakes Wynyard Canadian Pacific Ra ilway N Yellowhead Hwy (Trans – Canada Hwy) 16 Karnalyte Resources KP 360 0 2 4 km Mineral & Surface KP360 Permit Area (340km2) Highways Drill Holes Owned by Karnalyte 2007 / 2008 3D Seismic (35km2) 2009 3D Seismic (71km2) Rai
Slide 17: Investment highlights
Investment highlights • Strong potash industry fundamentals • Attractive jurisdiction with existing infrastructure • Significant potash resource • Attractive project profile • Carnallite resource amenable to solution mining • Keyy p project j milestone: completed p NI 43-101 compliant p scoping p g