West High Yield (w.h.y.) Resources Ltd. · TSXV:WHY
West High Yield (w.h.y.) Resources — Investor Presentation (July 2020)
31 slides from West High Yield (w.h.y.) Resources's investor presentation, July 2020
Slide 1: A Unique Magnesium and Gold Opportunity in British Columbia
A UNIQUE MAGNESIUM AND GOLD OPPORTUNITY IN BRITISH COLUMBIA COMPANY PRESENTATION TSX: WHY.V WWW.WHYRESOURCES.COM WHY.V | July, 2020 1
Slide 2: Disclaimer and Forward-Looking Statement
DISCLAIMER anticipated in such statements. Important factors that could cause actual results to differ materially from the Company expectations include, among others, risks related to international Disclaimer and Forward-Looking Statement No stock exchange, securities operations, the actual results
Slide 3: Why West High Yield?
WHY WEST HIGH YIELD? MULTIPLE POTENTIAL CASH FLOW GENERATING PROJECTS ADVANCED MAGNESIUM PROJECT WITH ROBUST PEA HIGH GRADE GOLD MINE REJECTS PROJECT WITH CASH FLOW POTENTIAL HIGH POTENTIAL GOLD EXPLORATION AT PAST PRODUCING MIDNIGHT PROJECT GREAT INFRASTRUCTURE STRONG MANAGEMENT AND BOARD WHY.V | J
Slide 4: Record Ridge Magnesium Mine: A Unique Investment Opportunity
RECORD RIDGE MAGNESIUM MINE A Unique Investment Opportunity • World Class advanced-stage project expected permit shovel ready in Q4, 2020, with robust economics based on KPM PFS-1 Study, showing economics showing an after tax NPV 5% of Advanced C$ 742 millions and an IRR of 30% 1 Project • Conventio
Slide 5: Record Ridge Magnesium Mine Project Summary
RECORD RIDGE MAGNESIUM MINE Project Summary OWNERSHIP 100% owned by West High Yield Resources • 8,972 hectares property located 7.5 km air west to southwest of the town of Rossland, B.C., LOCATION Canada; 5 km north of the U.S.-Canada border, with excellent regional infrastructure including establis
Slide 6: RR Project Timeline
RR PROJECT TIMELINE PFS STAGE-1 REPORT Advanced stage project PFS-Stage-1 presented an optimized proprietary HCl process that resulted in over RESOURCE ESTIMATE 99% purity MgO product with MINING PERMIT over 94% recoveries, and with WHY produced NI 43-101 2019 - The Company Ni and SiO2 byproducts, w
Slide 7: RR Magnesium Mine Project Location
RR MAGNESIUM MINE Project Location • Located in a well-established mining district near the town of Rossland, BC • 5km north of the US - Canada border • Supporting industries in close proximity • Nearby rail access with CP Rail (Trail, BC) • 500km east of the ports of Vancouver, BC, and Seattle, WA
Slide 8: RR Project Exploration
RR PROJECT EXPLORATION PEA NI 43-101 Resource Estimate Updated Resource Estimate (2013) Contained Mg Resource Category %Mg Cut-off Total Mt %Mg Grade (Mt) Measured 28.4 24.82 7.05 Indicated 14.6 24.21 3.54 21.9 M&I 43.0 24.61 10.59 Inferred 1.07 24.37 0.26 • Over 10,000 metres drilling, 77 holes, al
Slide 9: RR Mine Plan
RR MINE PLAN Proposed Project Plan Parameter Year 1 Year 2 Operating Days 182 182 Mobile Crusher Feed 250 kt 250 kt Based on Project Description Report (Greenwood Environmental, 2018) Mg Grade 24.5% 27% Waste Stripping 60 kt 40 kt Total Material Mined 310 kt 290 kt Mining Rate 1,700 tpd 1,600 tpd •
Slide 10: RR Ore Processing
RR ORE PROCESSING HCl Leaching Process • Developed at KPM lab facility (Kingston, Ontario) • Proprietary hydrometallurgical process • High purity (over 99% purity) MgO or Mg(OH)2 products and 94.85% recoveries • Marketable by-products (Nickel, Silica, etc.) • Closed-loop with acid regeneration • Low
Slide 11: RR PEA Highlights
RR PEA HIGHLIGHTS • After Tax NPV of C$742 Million with an Robust Project Economics IRR of 30% • Upfront Capital of C$310 MM • Huge opportunities remain to further Updated PEA Highlights Based on PFS-Stage 1 (2019) Using HCl Leaching Process improve Unit C$ Million • PEA results with further resourc
Slide 12: Sensitivity Analyses
SENSITIVITY ANALYSES IRR and NPV at 6% • Both NPV and IRR are most sensitive to MgO product pricing and plant size. • Increasing MgO product price by 30% (to $1,950/t), increases IRR to 39% • Increasing plant size by 30% (to 325,000 tpy of ROM), increases after tax NPV to $941M. WHY.V | July, 2020 1
Slide 13: Magnesium Use
MAGNESIUM USE 100’s of applications in a variety of industries ENERGY STORAGE WALL BOARDS Supersedes Lithium Fire and water resistant PHARMACEUTICAL AUTOMOTIVE MG CEMENT Vital to human health Light weight and strength More strength and durability AGRICULTURAL AEROSPACE Vital to plant growth Weight a
Slide 14: Magnesium Advantage
MAGNESIUM ADVANTAGE Wide use of Magnesium makes it one of the US strategic minerals AUTOMOTIVE MG CEMENT AEROSPACE AND BATTERIES AGRICULTURE AND HEALTH • Vehicle manufacturers are • Production of Mg cement uses • Lightweight properties of • Magnesium (in the form of making lighter cars for more less
Slide 15: Magnesium Market: Market Forces
MAGNESIUM MARKET MARKET FORCES • Magnesium is considered as one of the 35 strategic/critical minerals for the US economic and national security with an Executive order to stockpile. • US has announced the Energy Resource Governance Initiative (ERGI) in 2019 to support initiatives with member countri
Slide 16: Magnesium Market: Market Validation
MAGNESIUM MARKET MARKET VALIDATION Current global annual market for all Mg products exceeds 29M tonnes. Focus is on the following industries including government and military: • Pharmaceutical Companies • Magnesium Ingot Bar Suppliers • Potential EV Battery Companies (currently under R&D) • Fertiliz
Slide 17: Work Plan
WORK PLAN SHORT TERM LONG TERM • Developing demonstration plant • Budget of $310M • Budget of $15-$20M with potential • Commercialization (18-24 months) 75% Federal/Provincial Government funding and 25% company funding • Feasibility Study of the commercial plant • Commissioning in 10-12 months • FEE
Slide 18: Demonstration Plant
DEMONSTRATION PLANT SEMI COMMERCIAL • Operating at 2 tph • Achieving all technical objectives • Mitigating the risks associated with the scale-up to the commercial facility • Generating sufficient engineering data for a full Feasibility Study (FS) including a comprehensive technology overview and op
Slide 19: Project Schedule
PROJECT SCHEDULE Short and Long Terms 2020 2021 2022 2023 2024 2025 # MILESTONES Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DEMO PLANT M1 DETAILED ENGINEERING CAPITAL PURCHASES DEMO COMMISSIONING M2 COMMISSIONING RAMP UP DEMO OPERATION M3 OPERATION DISASSEMBLY AND DISPOS
Slide 20: Production Outlook
PRODUCTION OUTLOOK Mg Industry Product Verticals • The company will specialize in the mining and production of high purity MgO product • The company will JV/Partner with other parties/end users to develop multi Mg industry verticals 3. Wallboard Plant III 1. Magnesium Oxide I 4. Cement Plant IV 2. M
Slide 21: Magnesium and Gold: Near Term Strong Cash Flow Projects
MAGNESIUM AND GOLD Near Term Strong Cash Flow Projects RECORD RIDGE MAGNESIUM PROJECT 2020 • Advanced world-class project expected permit ready in Q4, 2020 and ready to mine in 2021. ADVANCED MAGNESIUM PROJECT AT /21 • Selling high grade Mg ore to multiple Mg refineries PERMIT STAGE HIGH GRADE GOLD
Slide 22: Mining Magnesium Ore
MINING MAGNESIUM ORE Permit Ready Q4, 2020 HIGH GRADE MAGNESIUM ORE • 40% MgO grade • Feed for multiple magnesium refineries • Ongoing discussions with multiple end users ECONOMICS 1 • Gross Annual Earnings: $50M • EBITDA: $37.5M 1. Based on receiving initial permit of mining 250,000 tpy in years 20
Slide 23: Gold Mine Rejects Project
GOLD MINE REJECTS PROJECT GRADE 1 AND TONNAGE 2 • Over 225K metric tons of mine rejects already mined from the many historic mines in the area • Average grade of 2.5 ppm Au • Over 18K ounces of gold with over $30M value. PROCESSING • Option of shipping to existing mill, or processing on site dependi
Slide 24: Midnight Project
MIDNIGHT PROJECT High Potential Gold Exploration DEEP DRILLING AT THE MIDNIGHT CLAIM • High potential of finding high-grade gold mineralization based on historical data • Following up on 2008 drilling results, WHY applied for a 22-hole drill program totaling 15,000 meters ( 58,000 feet) on the Midni
Slide 25: Midnight Mine Area Geological Settings
MIDNIGHT MINE AREA Geological Settings • The Midnight area contains primarily narrow and erratic but high-grade quartz –carbonate veins with native gold and minor silver and sparse sulphides • Also present are broad areas of silica-carbonate alteration in altered ultramafic rocks which may carry low
Slide 26: Midnight Mine Area Past Production and Drilling Highlights
MIDNIGHT MINE AREA Past Production and Drilling Highlights Recorded past production from the combined WHY Resource’s properties up to 1941 CLAIM TONNES GRAMS AU GRADE Au g/t OUNCES Au Grade Au OPT IXL 5248 809766 154 25912.5 4.49 MIDNIGHT 4760 218346 46 6987.1 1.34 OK 293 17916 61 573.3 1.78 TOTAL 1
Slide 27: Offering
OFFERING Size Loan in the amount of CAD $10M Use • $0.5M to capitalize the gold mine rejects project and bring to production • $1.5M to cover the Mg mine permit costs • $1.5M to capitalize and commercialize the Magnesium mine and produce the milled ore. • $2.5M to conduct 15,000m exploration/drillin
Slide 28: Corporate Profile
CORPORATE PROFILE TSXV: WHY Venture Exchange Listing SHARES OUTSTANDING 66.9M TSX: WHY 52 Week High-Low FULLY DILUTED 70.5M $0.07 $0.28 INSIDER OWNERSHIP MARKET CAPITALIZATION 37% $8.0M WHY.V | July, 2020 28
Slide 29: Our Professional Team
OUR PROFESSIONAL TEAM FRANK MARASCO PAT NELSON MARIA MARASCO BARRY BAIM FOUAD KAMALEDDINE CEO, DIRECTOR DIRECTOR DIRECTOR DIRECTOR PHD, P.ENG, ADVISOR Frank Marasco is also President and Ms. Nelson was the Vice Chair and Mrs. Marasco is an Mr. Baim brings over 35 years activating Dr. Kamaleddine is
Slide 30: Why Invest in W.H.Y Resources?
WHY INVEST IN W.H.Y RESOURCES? Multiple Stream of Revenue Potential HIGH GRADE MINIING GOLD EXPLORATION AT MAGNESIUM REJECTS MIDNIGHT CLAIM WHY will produce low cost, high purity, and Over 225K metric tons of mine High potential of finding high-grade high margin magnesium products for all reje
Slide 31: Contact Us
CONTACT US West High Yield (W.H.Y.) Resources Ltd TSXV: WHY Frank Marasco, President and CEO Email: frank@whyresources.com Office: (403) 660 3488 Fax: (403) 206 7113 PO Box 68121 Calgary, Alberta T3G 3N8 www.whyresources.com WHY.V | July, 2020 31
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