platinum & palladium projects
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Platinum & Palladium Projects. NORTHWEST ONTARIO. MFX: TSXV. June 2013 SWISS MINING INSTITUTE. Disclaimer. - PowerPoint PPT PresentationTRANSCRIPT
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DisclaimerThis presentation may contain forward-looking statements including, but not limited to, information regarding geological interpretations, potential timing and content of exploration programs, receipt of permits or property titles, joint venture agreements, Company financings, etc. Forward-looking statements refer to events and conditions which have not yet taken place, and therefore involve inherent risks and uncertainties. Actual results may differ materially from those anticipated in these statements. Minfocus Exploration Corp. relies upon litigation protection for forward-looking statements.
Gerald Harper, P. Geo. President & CEO, is the Qualified Person under NI 43-101 for the projects discussed in this presentation.
South African Mines - Deeper and Deeper
BUSHVELD 1st GENERATION VERTICAL SHAFTS
Depth: 600m to 1000m
MOSTLY MINED OUT
BUSHVELD 2n d GENERATION VERTICAL SHAFTS
Depth: + 1000m
NEARING DEPLETIONBUSHVELD 3rd GENERATION VERTICAL SHAFTSDepth: 1500m to 2500m
SINKING, DEVELOPING, OPERATING OR CANCELLED
Shallow Declines100m to 600m
MOSTLY MINED OUT
NW ONTARIO CanadaDepth: <500m
MINFOCUS - NW ONTARIO versus BUSHVELD COMPLEX
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Platinum and Palladium Markets – Major Shifts
Minfocus views the Platinum and Palladium markets on the verge of significant changes to both Supply and Demand
South Africa will dominate supply concerns– Deeper and deeper mines needed to source PGM’s (+1,500-2,000 meters)– Labour issues will continue to be evident with union demands for higher wages– More importantly, the long term continued increase in labour and power costs
will force more mines in South Africa to close (labour +10-22%, power +8%)– Recent nearer surface discoveries (+500-1,000 meters) have lower Pt:Pd ratio– Average grade (3PGE) in has dropped from 4.3 g/t (1998) to about 2.0 g/t (2012)
Demand for Platinum is below historic levels– Due to recent world economic conditions, as of 2012, the principal consumers
of platinum, the auto catalyst industry is 21% below pre-recession levels!– Jewelry demand continues to grow – up +24% since 2006 – Jewelry demand in China has jumped +81% since 2006 to +1.9 million oz
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Platinum Markets – Significant Changes
JOHNSON MATTHEY Platinum 2012 Interim Review November 2012
“The platinum market is forecast to move into a deficit of 400,000 oz in 2012. Severe disruption to platinum group metal (pgm) mining is expected to reduce supplies from South Africa by over 600,000 oz. With demand firm at 8.07 million ounces and a decline in recycling, the balance of the platinum market will look very different to last year.”
“The palladium market is forecast to move from a surplus in 2011 to a deficit this year of 915,000 oz. Supplies are expected to contract, mainly due to lower sales of Russian state stocks, and we anticipate reduced palladium recycling. Gross demand is predicted to rise to 9.73 million ounces, driven by a return to positive net physical investment and higher autocatalyst purchasing.”
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Platinum Markets – Significant Changes
JOHNSON MATTHEY Platinum 2013 Review May 2013
“The platinum market was in deficit of 375,000 oz in 2012 due to a steep decline in output from South Africa. Platinum shipments by South African producers fell 16% to 4.10 million oz in 2012. [Overall] primary supply was lowest in 12 years. Total demand was only slightly down 0.6% at 8.05 million ounces and recycling was marginally less.”
“The palladium market moved into deficit of 1.07 million oz in 2012 from a surplus 1.19 million oz in 2011. Palladium supplies fell by 11% in 2012 to 6.55 million oz, their lowest level since 2002. These were mainly due to lower sales of Russian state stocks, and we anticipate reduced palladium recycling. Gross demand for palladium rose by 16% to 9.90 million ounces in 2012, propelled by new high in demand in auto catalysts due to recovering auto sector in Japan, China and NA.”
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Platinum Supply and Demand 2002-2012
Consumption of Platinum–Mostly Auto Catalyst and JewelleryThousands of Troy Ounces
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
OthersGlassChemicalInvestmentJewelleryAutocatalyst
2011-2012 2006-2012Auto Catalyst -1.1% -21.4% Jewellery/Investment +9.4% +49.2% Total Demand -0.3% +2.3%
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Platinum Supply and Demand 2002-2012
Production of Platinum – South Africa Largest SourceThousands of Troy Ounces
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Others North America
Russia South Africa
2011-2012 2006-2012S. Africa -12.5% -19.7% Russia -5.4% -14.1%
Total Supply -9.9% -14.5%
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Palladium Supply and Demand 2002-2012
Demand for Palladium – Dominated by Steady Growth
Thousand oz % Change Thousand oz % Change
Average over Average
2012 2006-2012 2002-2008 2002-2008
Europe 1,960 38.5% 1,673 17.2%
Japan 1,405 -10.8% 1,550 -9.4%
N America 2,505 18.4% 1,999 25.3%
China 1,925 26.6% 1,137 69.3%
Rest of World 1,930 58.2% 1,041 85.4%
Total Net Demand 6,480 61.4% 3,883 66.9%
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Platinum Price Trends
Five-Year Period (May 28, 2008 to May 27, 2013)
Solid Price SupportAt $1,400 per oz
“Average costs increased 23 percent to 15,957 rand ($1,766) an ounce for the nine months through March [2013] from a year earlier”, Implats said May 1, 2013
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Palladium Price Trends
Five-Year Period (May 28, 2008 to May 27, 2013)
Solid Price SupportAt $575 per oz
Cash costs for North AmericanPd producers = $400-500/oz
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Minfocus – North American Platinum and Palladium
Invest in Platinum and Palladium in North America
To be successful it requires the right Management:
ExperiencedExceptional local knowledgeTrack record of making discoveries
Minfocus has the Management that is experienced, knowledgable and most importantly has a successful record of discoveries in Platinum and Palladium in North America
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Management and Directors
Gerald Harper Ph.D., P.Eng.(Ont.), P.Geo.(Ont.) PRESIDENT & CEO, DIRECTOR | Geologist
Co-Discoverer of Current Lake PGE Deposit Ontario-Magma Metals
Kenneth De Graaf M.A.Sc. (Met. Eng.)SENIOR VP, DIRECTOR | Chemical/Metallurgical Engineer
Co-Discoverer of the Gatsuurt Gold Deposit-Centerra Gold, Mongolia
Gavin Cooper B. Comm, C.A.CHIEF FINANCIAL OFFICER
Graham Wilson Ph.D., P.Geo.(Ont.) DIRECTOR | Geologist
Co-Discoverer of Current Lake PGE Deposit Ontario-Magma Metals
Roger Walsh B. Bus.DIRECTOR | Former C.A. and Corporate Advisory
President, Rapier Gold; Recent VP Corporate Development, Aurizon Mines; Jinshan Gold Mines; Ivanhoe Mines
Mark Selby B. Comm (Honours)DIRECTOR | Strategic Analysis PGM/Base Metals
Senior VP, Royal Nickel Corp.; Assist. VP Inco, Strategic Planning & Corporate Development
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Current Lake Mineralization Discovery:2001
Discovery boulder assayed up to 4.1 g/t Pt + 3.7 g/t Pd new type of PGE deposit in N.A. – PGE’s with Pt:Pd > 1.0
Discovery by Dr. Gerald Harper and Dr. Graham Wilson, principals and directors of Minfocus Explorati on Corp.
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Management Profiles
Gerald HarperPh.D., P.Eng.(Ont.), P.Geo.(Ont.)PRESIDENT & CEO, DIRECTOR
DiscoveriesCurrent Lake Cu Ni PGE, Mayville Cu Ni PGE, Gurvanbulag U
Dev. and OperationsGurvanbulag U, Windy Craggy Cu Co
Public companiesBRINCO, Falconbridge Nickel Mines, Geddes Resources, Khan Resources, Mustang Minerals, Northgate Exploration, NWM Mining Corp., Orofino Resources, Western Prospector Group
M&ACNNC – Western Prospector, ABM Mining, United Gold Corp.
Geologist
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Management Profiles
Kenneth de GraafM.A.Sc. (Met Eng.)
SENIOR VP, DIRECTOR
DiscoveriesGurvanbulag U, Gatsuurt Au
Dev. and OperationsGurvanbulag U, Gatsuurt Au
Public companiesWestern Prospector Group, Khan Resources Ltd.
M&ACascadia Endeavours – BHP Billiton(PGM-Cu-Ni – Russia),Cascadia Endeavour – Barrick Gold(Fedorova PGM-Cu-Ni, Murmansk, Russia)Cascadia Mining Corp – Cameco Gold(Gatsuurt Gold – Mongolia)Western Prospector Group – CNNC and Khan Res
Chemical/Metallurgical Engineer
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Management and Directors – Key Advantage
Depth of Exploration Experience and Multiple Discoveries
Multiple deposit discoveries worldwide
Key PGE discoveries by Minfocus management in Central Canada
– Current Lake Pt Deposit (Panoramic Resources)- First Platinum-Rich PGE Deposit discovered in Ontario
– Mayville Cu-Ni-PGE Deposit (Mustang Minerals)- Major Cu-Ni-PGE deposit with Palladium dominant
These two PGE discoveries are arguably two of the most important discoveries in the region that rapidly is becoming the most important exploration area for PGEs in the world.
Over 15 years depth of experience, plus discoveries exploring for PGE-rich resources in NW Ontario
Minfocus Management are proven Mine Finders!
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Minfocus Exploration Corp.
Portfolio of 6 PGE projects and evaluating others
NW Ontario PGE deposits more economically attractive than South African deposits and more stable politically.
High Platinum-to-Palladium Ratios (Pt:Pd ~ 1.0)
Two Principal properties, both with recent discoveries by Minfocus:
– Nipigon Reefs Project - is less than 15km from Current Lake PGE deposit (+790,000 oz Pt-Eq), and has near surface PGE mineralization and at depth
– Chief Peter Property - has near surface mineralization with high Copper-PGE grades, which was confirmed by recent drilling, and appears to have strong similar to the former Inco Shabandowan Mine which was renowned for PGEs
First rate set of properties that offer historic PGE, plus PGEs with significant Cu and Ni grades that are underexplored.
Minfocus Targeting Platinum-Rich PGE’s in NW Ontario
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Chief Peter
Max Lake
Weese-Luella WitchwoodSim Lake
Nipigon Reefs
Timmins
Ottawa
Sudbury
Toronto
Chicago
Thunder Bay
RailwaysHighways
Minfocus’ PGE-Cu-Ni Projects
100 km
Nipigon Reefs PGE Project
20km to Thunder Bay50 km
North American PalladiumLac des Iles Mine/Mill
Palladium (+3.4 million oz Pd) MINFOCUS EXPLORATIONNIPIGON REEFS PROJECT
Panoramic Resources Current Lake Deposit
Platinum (+790,000 oz Pt)
527
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Thunder Bay
Lake Nipigon
50 km
Nipigon Reefs
Nipigon Reefs PGE Project
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Panoramic Resources Current Lake Deposit
Platinum (+790,000 oz Pt)CURRENT LAKE INTRUSIVE COMPLEX
CURRENT LAKE RESOURCE
5 km
MINFOCUS EXPLORATIONNIPIGON REEFS PROJECT
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Nipigon Reefs PGE Project
Drilling confirms the existence of multiple significant PGE mineralized layers with wide interval lengths up to 5.0 metres thick and grades greater than 0.5 g/t 3E and up to 2.47 g/t 3E
Surface sampling from pits in and around historic trenches confirmed significant grades up to 1.92 g/t 3E
Confirmed high Platinum-to-Palladium Ratios (Pt:Pd ~ 1.0)
Potential new PGE zone discovered at surface, not previously identified in drilling by prior workers, which is exposed at surface over a substantial strike length
Potential for a large multi-layered mineralized PGE system within a circular structure up to 10km – 15km diameter covering Nipigon Reefs
Key Conclusions from Exploration Work to Date
Chief Peter PGE Project
Lac des Mille Lacs
Thunder Bay
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Quetico Provincial
Park
527
MINFOCUS EXPLORATIONCHIEF PETER PROJECT
Former Nickel Mineat Shebandowan
50 km
Chief Peter PGE Project – 2006 Aeromagnetic Work
5 km
WEST GRID
EAST GRID
West Zone old trenches & DHs
Central Zone (2011 trench channel sampling)
East Zone (2011soil geochem grid)
Magnetic high
Magnetic Low
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Chief Peter PGE Project
Significant Historic PGE-Cu-Ni Grades - Surface and DrillingHistoric Drill Intercepts
DH Length Cu% Ni% Pt+Pd Grid Company Date
57-3 239 ft 0.53% 0.23% 1.4 g/t E Nashua 1957
57-6 15 ft 1.26% Cu+Ni E Nashua 1957
57-8 15 ft 1.02% Cu+Ni E Nashua 1957
57-9 14 ft 1.50% Cu+Ni E Nashua 1957
? 5 ft 1.99% 0.08% 1.6 g/t W Fort Knox 2000
Historic Rock Samples
Sample Cu% Pt (g/t) Pd (g/t) Pt:Pd Ratio Company Date
B-16 1.78 4.78 3.15 1.52 Nashua 1957
B-19 1.29 2.09 1.12 1.87 Nashua 1957
B-20 2.44 5.31 1.35 3.93 Nashua 1957
? 0.81 1.02 1.36 0.75 Irvine 1963
? 1.78 4.80 3.10 1.55 Coventry 1986
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Chief Peter PGE Project
Significant Near Surface Discovery – 2013 Drill Hole Assay Results
Hole# From (m)
To (m)
Length (m)
3E (g/t)
Pt (g/t)
Pd (g/t)
Au (g/t)
Cu % Ni %
CP13-01 41.1 45.1 4.0 2.39 1.06 1.27 0.06 0.54 0.22
CP13-02 49.0 54.0 5.0 2.34 1.20 1.08 0.06 0.61 0.14
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Chief Peter PGE Project
Demonstrated Significant PGE Grades at Surface and in Drilling
Recent drilling >2.0 g/t PGE over 4.0-5.0 meter intervals near surface down to 50 meters.
Drilling nearby the surface zone has reported lengthy drill intercepts of up to 75 metres (239 feet) with 0.53% Cu and 0.23% Ni
A sizeable surface zones with historic PGE grades up to 2.15 g/t Pt+Pd, confirmed by Minfocus 2011 trench samples.
The potential for a significant PGE open pit deposit of mineralized Cu-Ni-PGE system (+5.0 km), which has strong similarities to the former Inco Shebandowan mine, where 8.7 million tonnes of ore were recovered at an average grade of 2% Ni, 1%Cu and 3.0 g/t Pt + Pd
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Minfocus Exploration Corp.
Focused on continued growth of a portfolio of Platinum Group Element (“PGE”) rich resources by exploration, acquisition and JV’s in NW Ontario, Canada
NW Ontario is one of Most Stable Mining Districts in the world with Global Class PGE deposits
Distinguished Management Group with multiple discoveries of deposits worldwide and +15 years experience and success exploring for PGE-rich resources in NW Ontario
Our Corporate Vision and Strategy
Minfocus has identified other PGE opportunities for both Discoveries and Acquisitions in NW Ontario
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Thank You for Your Attention
Contact:Minfocus Exploration Corp. Tel: 416.232.0025Fax: [email protected]
www.minfocus.com