TSX.V: VONE FRANKFURT:9VR1 AUnique Iron andVanadium Opportunity in Quebec August 2020 TSX.V:VONE
DISCLAIMER This presentation contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "budget", "guidance", "scheduled", "estimates", "forecasts", "strategy", "target", "intends", "objective", "goal", "understands", "anticipates" and "believes" (and variations of these or similar words) and statements that certain actions, events or results "may", "could", "would", "should", "might" "occur" or "be achieved" or "will be taken" (and variations of these or similar expressions). Forward-looking information is also identifiable in statements of currently occurring matters which may continue in the future, such as "providing the Company with", "is currently", "allows/allowing for", "will advance" or "continues to" or other statements that may be stated in the present tense with future implications. All of the forward-looking information in this presentation is qualified by this cautionary note. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by Vanadium One Iron at the date the forward- looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. Forward-looking statements involve known and unknown risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward- looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), uncertainties related to the development and operation of Vanadium One Iron’s projects, dependence on key personnel and employee and union relations, risks related to political or social unrest or change, rights and title claims, operational risks and hazards, including unanticipated environmental, industrial and geological events and developments and the inability to insure against all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, volatile financial markets that may affect Vanadium One Iron’s ability to obtain additional financing on acceptable terms, the failure to obtain required approvals or clearances from government authorities on a timely basis, uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources, and the potential for variations in grade and recovery rates, uncertain costs of reclamation activities, tax refunds, hedging transactions, as well as the risks discussed in Vanadium One Iron’s most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities and available at www.sedar.com. Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, the reader should not place undue reliance on forward-looking information. Vanadium One Iron does not assume any obligation to update or revise any forward-looking information after the date of this presentation or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law. 2 TSX.V:VONE
WHY VANADIUM ONE IRON? AUNIQUE INVESTMENT OPPORTUNITY • PEA Results Announced in February 2020 showing an after tax NPV8% of C$1.7 Billion and an IRR of 34% Robust PEA Confirms • Conventionalopen pit mining operationwith magnetic seperation Economic Potential • Highly marketableiron ore concentrate expected (65% Fe, 0.61 V 2 O 5 ) • Initial NI 43-101 MineralResource: Large Resource • Indicatedresource: 113.5 .5M tonnes at at 30.9% Magnetite in place • Inferred resource: 520.6 .6M tonnes at at 37.8% Magnetite • Metallurgical Test work confirms production of high-grade (65+% Fe) premium priced iron ore Premium QualityIron concentrate width substantial V 2 O 5 by- products (0.6%) and low deleter erious elem emen ents V O bi product 2 5 • Titanium, a fatal deleterious element for blast furnaces prevalent in Magnetite deposits, is negligible Low Titaniumin • Low levels of other typical impurities Concentrate • Potential to produce co concentratere ready for blast furn rnace injection and Vanadiumsl slag pro roduction • Steel co-productionnot available to most Vanadium-rich Magnetite deposits • Quebec recognized as one of of the best juri risd sdictionsin in the wo worl rld for mining • 25kmby roadto existing rail loading facility in Chibougamau,Québec Great Infrastructure • 370km CN Rail line to closest commercialdeep water port (Saguenay, Québec) • Benefit from low-cost hydro power and skilled labour • Board and Managementexperienced in developing, building and adding value to mining projects Strong Management • Investedin success of VanadiumOne Iron with approximately 25% share re ownership & Board 3 TSX.V:VONE
THE MONT SORCIER PROJECT PROJECT SUMMARY • Ownership 100% owned by Vanadium One Iron • Location 1,919 ha property located 18 km east of the city of Chibougamau Québec • Excellent regional infrastructure, including access to rail, airports, seaports and low-cost hydro power • Deposits Bulk tonnage magnetite iron ore and vanadium deposits • Past drilling has focused on North and South deposits • Deposits remain open along strike and at depth • Project History 1950s: Chibmac Mines Ltd. makes initial iron ore discovery on property • 1966: Campbell Mines completes initial resource estimate and bulk sampling • 1972: Campbell Mines discovers vanadium mineralization • 1974: Campbell Mines completes updated resource and feasibility study • Sept. 2016: Vanadium One Iron purchases Mont Sorcier claims • June 2019: maiden 43-101 resource estimate released ResourceEstimate • Indicated: 113.5M t onnes at 30.9% Magnetite (June2019) • Including 35.0M tonnes in DT concentrate at 65.3% Fe and 0.6% V 2 O 5 • Inferred: 520.6M tonnes at 37.8%Magnetite • Including 178.3M tonnes in DT concentrate at 64.4% Fe and 0.6% V 2 O 5 PEA Results • PEA completed highlighting robust project economics with an after tax NPV of C$1.7 Billion and an after tax IRR 34% over a 37 year mine life (Feb 2020) • Upfront Capital requirements of C$457 million • Market Study supports premium iron ore pricing outlook with vanadium credits 4 TSX.V:VONE
Mont Sorcier Iron Ore and Vanadium Infrastructure in Place to Support Development • Located in anestablished mining district of Chibougamau, Quebec • 300km of Underutilized common carry railavailable to ports • Two deep waters ports - Saguenay and QuebecCity available for exports • Low cost HydroPower Available • Single provincejurisdiction streamlines permitting 5 TSX.V:VONE
PEA Highlights Robust Economics Support Further work PEA Highlights • After Tax NPV of C$1.7 Billion with an IRR of 34% PEA Summary table C$ Million All Figures in C$ unless otherwise noted • Upfront Capital of C$457 MM NPV 8% After Tax C$ Million $1,699 IRR After Tax % 33.8% • NPV 8% Pre Tax C$ Million $2,505 Opportunities remain to further improve IRR Pre Tax % 41.5% PEA results via: resource expansion, Long Term 65% Iron Concentrate price US$/t conc $92.00 equipment leasing, increase operating scale Long Term V2O5 Price US$/lb $7.25 and further metallurgical test work Combined Iron Conc. Price with attributable C$/t conc $140.79 enhancements Vanadium Credits CFR China Initial Capex C$ Million 457 Magnetite outcrop at MontSorcier Sustaining LOM Capital C$ Million 601 LOM average annual Concentrate Production MM tonnes 4.8 LOM Annual Mineralization Mined MM tonnes 15.0 LOM Strip Ratio waste:ore 0.89 Site Cash Costs to Saguenay C$/t conc $52.38 Ocean Freight C$/t conc $27.78 Royalties % 3.0% Mine Life years 37 Payback years 3 6 TSX.V:VONE
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