Quest Critical Metals Inc · CSE:BULL
Quest Critical Metals — US Cobalt — Investor Presentation (January 2018)
31 slides from Quest Critical Metals's investor presentation, Jan 29, 2018
Slide 1: Focused on the Acquisition and Development of High Grade Cobalt
FOCUSED ON THE ACQUISITION AND DEVELOPMENT OF HIGH GRADE COBALT January, 2018
Slide 2: Disclaimer
Disclaimer This presentation includes certain statements that may be deemed forward looking statements. All statements in this discussion, other than statements of historical facts, which address future production, reserve potential, exploration activities and events or developments that the Company
Slide 3: Overview
Overview US Cobalt (TSX.V: USCO) (Frankfurt: 26X) (USA: USCFF) is an exploration company focused on the acquisition and development of primary cobalt deposits. USCO:TSX-V 3
Slide 4: What is Cobalt?
What is Cobalt? Applications of cobalt Drying agents, adhesion-promotors in pneumatic systems Permanent magnets Ceramics and enamels (pigments) Catalysts Cemented carbides and diamond tools Superalloys Rechargeable batteries 0% 5% 10% 15% 20% 25% 30% 35% 40% 50% Source: Panorama 2013 du marche du co
Slide 5: Cobalt Demand
Cobalt Demand ‘000 tons GWh 1,000 1,400 900 1,200 800 Manganese 700 1,000 (tons) Nickel 600 (tons) Cobalt 800 500 (tons) Lithium 400 600 (tons) Lithium ion battery demand 300 (GWh) 400 200 100 200 0 - 2014 2020 2023 2028 2015 2021 2026 2018 2024 2029 2016 2022 2027 2019 2025 2030 2017 Source: Bloomb
Slide 6: Cobalt Supply Issues
Cobalt Supply Issues The majority of cobalt currently comes from mining in the Democratic Republic of Congo (DRC), a jurisdiction which presents significant ethical and environmental issues. • Cobalt is often found alongside copper; lower copper prices have triggered a number of large mines to shut
Slide 7: Global Cobalt Market
Global Cobalt Market The DRC, an area of high political and economic risk, contains close to half of the world’s known cobalt reserves. • The DRC supplies >50% of the world’s mined cobalt* ~20% of such production is TOTAL GLOBAL PRODUCTION IN 2016: 124,000 TONS attributed to artisanal mining a. DRC
Slide 8: Electric Car Demand
Electric Car Demand Tesla and other electric vehicle companies are currently looking beyond the DRC to avoid anticipated supply disruptions. ISSUE? • In 2015 and 2016, 700 tons (representing 0.5% of global production) was mined in the US* • Tesla’s first Gigafactory will require 5,000 –10,000 tons c
Slide 9: Idaho Cobalt Belt
Idaho Cobalt Belt ECobalt’s IDAHO COBALT PROJECT (ICP): • Permits understood to be largely in place Salmon Canyon Prospect • 3.48 Mt@ 0.55% Co, 0.75% Cu, 0.5 g/t Au (M+I) Mine Development Associates (MDA) updated the ICP’s Clear Creek Prospect Ram deposit estimate of cobalt, copper, and gold resourc
Slide 10: US Cobalt's Iron Creek Cobalt Project, Idaho
US Cobalt’s Iron Creek Cobalt Project, Idaho Historic estimate of 1.3m tons grading 0.59% Cobalt Located in Central Idaho, approximately 42 kilometers from the town of Salmon Property encompasses: 1,797 acres in 90 lode mining claims, including 7 patented claims totaling 137 acres, and 83 unpatented
Slide 11: US Cobalt's High Grade Iron Creek Cobalt Project, Idaho
US Cobalt’s High Grade Iron Creek Cobalt Project, Idaho Historic Estimate - Two zones of cobalt mineralization known. The first zone Project Avg. Cobalt % Avg. Copper % comprises a high grade underground cobalt deposit of around 1 million tons US Cobalt estimated grading 0.61% Co and 0.3% Iron Creek
Slide 12: Historic Estimates
Historic Estimates USCO considers the cobalt and copper tonnage and grade estimates above as historical estimates. The historical estimates do not use categories that conform to current CIM Definition Standards on Mineral Resources and Mineral Reserves as outlined in National Instrument 43-101, Stan
Slide 13: Iron Creek – No Name Zone
Iron Creek – No Name Zone Patented Claim Boundary, Drill Roads and Underground Workings Next Slide Area Adit #1 N 0 300 600 Scale in feet USCO:TSX-V 13
Slide 14: Adit #1 Channel Samples - Cobalt
Adit #1 Channel Samples - Cobalt Iron Creek – No Name Zone Adit #1 Channel Samples Cobalt Results Adit #1 N 0 50 100 Cobalt in Channel Samples Exceeds 0.5% Cobalt Adit #1 Scale in feet 0.3% to 0.49% Cobalt USCO:TSX-V 14
Slide 15: Adit #1 Channel Samples - Copper
Adit #1 Channel Samples - Copper Iron Creek – No Name Zone Adit #1 Channel Samples Copper Results Adit #1 N 0 50 100 Scale in feet Channel Sample USCO:TSX-V 15
Slide 16: Iron Creek – No Name Zone Target Information
Iron Creek – No Name Zone Target Information Historic Drill Holes, Roadcut Samples Historic Estimate: 0.23Mt Target Historic Estimate: 1Mt Target Adit #1 N Footwall Target Cobalt in Historic Drilling Exceeds 0.5% Cobalt 0.3% to 0.5% Cobalt 0.1% to 0.29% Cobalt Copper in Roadcut samples Exceeds 0.1 %
Slide 17: Iron Creek – No Name Zone 2017 Surface Drill Hole Map
Iron Creek – No Name Zone 2017 Surface Drill Hole Map Historic Estimate: 0.23Mt Target Historic Estimate: 1Mt Target Adit #1 Footwall Target N 0 300 600 Scale in feet USCO:TSX-V 17
Slide 18: 2017 Surface Drill Hole Map with results for Holes 1-23
Iron Creek – No Name Zone 2017 Surface Drill Hole Map with results for Holes 1 - 23 Historic Estimate: 0.23Mt Target Historic Estimate: 1Mt Target Adit #1 Footwall Target N Cobalt in 2017 Drilling (holes1-23) 0 300 600 Exceeds 0.5% CoEq 0.3% to 0.5% CoEq Scale in feet 0.1% to 0.29% CoEq Drill Holes
Slide 19: Iron Creek Cobalt Drill Results Section #1
Iron Creek Cobalt Drill Results Iron Creek Cross Section #1 Section #1 – Looking N55W Cobalt Results - Looking N55W 6,600 Z Copper zones in historic roadcut sampling IC17-03: 70’ @ 0.38% Co including 20’ @ 0.78% Co and 6,400 Z IC17-02: 11’ @ 0.21% Co 70’ @ 0.44% Co including 10’ @ 0.53% Co and inclu
Slide 20: Iron Creek Cross Section #2
6,600 Z Iron Creek Cross Section #2 Cobalt Results – Looking N55W Adit #1 Channel Sampling: 60’ @ 0.33% Co including 20’@ 0.53% Co Adit #1 including 10’@t 1.02% Co 6,400 Z IC17-10: 95’ @ 0.31% Co IC17-12: including 65’ @ 0.21% Co 52’ @ 0.40 % Co including including 25’ @ 0.33% Co 12’ @ 0.61 % Co and
Slide 21: Iron Creek Cross Section #3
Iron Creek Cross Section #3 Cobalt Results - Looking N44E No Name Zone Surface Trace Adit #2 IC17-18: IC17-19: 20’ (6.1m) @ 0.24% CoEq 64’ (19.5m) @ 0.37% CoEq And including 20’ (6.1m) @ 0.46% CoEq Adit #1 5’ (1.5) @ 0.64% CoEq And 36.3’ (12.6m) @ 0.20% CoEq including IC17-14: 6.3’ (1.9m) @ 0.41% Co
Slide 22: Iron Creek Cross Section #4
No Name Zone Iron Creek Cross Section #4 Surface Trace Cobalt Results - Looking N68W 6400Z IC17-21: 74.7’ (22.8m) @ 0.26% CoEq including IC17-23: 55.4’ (16.9m) @ 0.31% CoEq 351.6’ (107.2m) @ 0.13% CoEq which includes including 8.9’ (2.7m) @ 0.43% CoEq 37.5’ (11.4m) @ 0.24% CoEq and includes which in
Slide 23: Partial Drill Results 2017
Partial Drill Results 2017 Drill Holes 1 – 13 are reported as Cobalt grades Expanded sampling will be announced soon as CoEq grades Drilled True Average Drilled True Average Hole ID From To From To Width Width Cobalt % Width Width Cobalt % IC17-01 300 315 15 0.17 and 430 445 15 0.23 and 456.7 469 12
Slide 24: Partial Drill Results 2017
Partial Drill Results 2017 Drill Holes 1 – 13 are reported as Cobalt grades Expanded sampling will be announced soon as CoEq grades Drilled True Average Drilled True Average Hole ID From To From To Width Width Cobalt % Width Width Cobalt % IC17-07 170 180 10 0.41 and 200 210 10 0.18 and 265 275 10 0
Slide 25: Partial Drill Results 2017
Partial Drill Results 2017 Drill Holes 14 – 23 are reported as CoEq grades Drilled True True Thick Hole ID From feet To feet Length Thick Cu % Cobalt% CoEq% Meters feet Feet IC17-14 62 394.5 332.5 116 35.4 0.34 0.09 0.12 including 62 240 178 58.3 17.8 0.23 0.11 0.13 which includes 75.7 92 16.3 5.3 1
Slide 26: Partial Drill Results 2017
Partial Drill Results 2017 Drill Holes 14 – 23 are reported as CoEq grades Drilled True Thick True Thick Hole ID From feet To feet Cobalt% CoEq% Length feet Feet Meters Cu % IC17-17 154.5 665.5 511 364.4 111.1 0.13 0.11 0.13 which includes 154.5 245 90.5 63.4 19.3 0.14 0.1 0.12 which includes 225 24
Slide 27: Partial Drill Results 2017
Partial Drill Results 2017 Drill Holes 14 – 23 are reported as CoEq grades Drilled True True From HoleID To feet Length thickness thickness Cobalt% Copper% CoEq % feet feet feet meters IC17-21 129.0 203.7 74.7 68.4 20.8 0.23 0.32 0.26 including 129.0 184.4 55.4 50.5 15.4 0.29 0.25 0.31 which include
Slide 28: Management
Management WAYNE TISDALE President, CEO & Director Wayne Tisdale has 40 years of experience in investing, financing and consulting to private and public companies in the areas of mining, oil and gas, and agriculture. He runs his own merchant bank and sits on the board of a number of private and publ
Slide 29: Management
Management MICHELLE GAHAGAN Chair & Director Ms. Gahagan has been a director of US Cobalt since January, 2011. Ms. Gahagan is currently a director of Moovly Media Inc (TSXV: MVY) and Versus Systems Inc. (CSE:VS). Prior to her involvement in merchant banking, Ms. Gahagan graduated from Queens Univers
Slide 30: Capital Structure
Capital Structure Source: www.tmxmoney.com 1/29/18, Six month chart TRADING SYMBOLS: FINANCINGS TO DATE: TSX Venture USCO $2m at $0.20 Frankfurt 26X $500k at $0.23 US USCFF $1m at $0.45 $1.7m at $0.85 Outstanding 65.4 Million $5.75m at $0.53 Warrants 18.8 Million Year High FUTURE FINANCING NEEDS: $1
Slide 31: Contact
Contact CORPORATE ADDRESS: 302 – 1620 West 8th Ave. Vancouver, BC V6J 1V4 Canada www.uscobaltinc.com FOR FURTHER INFORMATION PLEASE CONTACT: Kelsey Chin Corporate Secretary Phone: (604) 639 4457 Email: info@uscobaltinc.com USCO:TSX-V 31