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Loadout Location > Donahue Creek MARCH 2014 1

Loadout Location > Donahue Creek MARCH 2014 1. Swamp Point 2

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Loadout Location >

Donahue Creek

MARCH 2014

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Swamp Point

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Sector: Resources

Property Type: Construction Aggregate

Stock Market Symbol: TSX.V: HBK; Frankfurt: V7O

52-Wk Trading Range: C$ 0.05 - C$ 0.135

Shares I&O: 78,017,749 (March 06,

2014)

Market Capitalization: C$9.4 million (approx.) 3

Sand, gravel, crushed stone essential for road building and concrete for commercial operations

Aggregate is the world’s most mined material next to oil. 2012 global sales revenues were est. at $99 billion, an increase of 41% from 2010 est. sales of $70 billion http://ow.ly/oaQzb

Annual Canadian consumption of aggregate 10 to 15 tons per person

BC Production was 38 million tonnes in 2010 valued at C$322million (2012 figures not available)

BC Production expected to considerably exceed previous years

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Athabasca Minerals TSX.V:ABM

Price: $1.7052-Wk Range: $0.68-$1.89Market Cap: $54.5 million

Polaris Minerals (TSX.V:PLS)

Price: $2.5952-Wk Range $0.94-$2.60Market Cap: $208.5 million

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Full Working Interest earned

$2.5 million of capitalized costs

Proximity to LNG projects – high demand for aggregate

NI 43-101 compliant resource

72 million tonnes measured and indicated

First sales commitment received

Cooperative agreement in place with First Nations

Near-term production, pending final permits and financing

Land position increased fourfold

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East side of Portland Canal fjord on protected, year round ice free tidewater

Site access by helicopter, float equipped aircraft, or boat

78 miles by sea north of Prince Rupert, closest West coast port to Asian markets by 33 hours

38 miles south of the Port of Stewart & 35 miles north of Grassy Point, site of proposed new LNG Terminal/Plants

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Classification Tonnes

Measured 62,936,877

Indicated 8,775,166

Measured and Indicated 71,712,043

Inferred 2,246,464

PRINCE RUPERT AREA – HAS LIMITED SUPPLIES OF

QUALITY SAND AND GRAVEL

HIGHBANK’S SWAMP POINT DEPOSIT MEETS

SPECIFICATIONS FOR CONSTRUCTION AGGREGATE

NEAREST, LARGEST AND MOST ACCESSIBLE SOURCE WITH LOW COST TRANSPORTATION

PRICE RANGE $30 - $35 / Tonne

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Primary Target Region

Prince Rupert-Kitimat, B.C. and Alaska

Competitive Advantage

Proximity to the Port of Prince Rupert’s construction projects facilitates port to port transportation – most economic mode of delivery

Highbank’s First Sales Contract

To West Fraser Concrete. 100,000 tonnes. Signed March 2012.

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Location of Highbank Off Loading - Ridley Island

10 year expansion plan of Prince Rupert Port Authority - $1.3 billion Federal Initiative

Spectra – BG, 850-km pipeline project - $6-$8 billion

Canpotex potash terminal - $400 million Watson Island Industrial Site

Redevelopment - $90 million Ridley Terminals coal expansion - $200

million and $90 million road and infrastructure projects

Global TV video clip on multi-billion dollar projects in Prince Rupert-Kitimat

http://tinyurl.com/9q4syyx

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Canpotex Potash Export Terminal

Exxon Mobile Imperial Oil export,

permit filed for terminal at Grassy

Point (38 miles from Swamp Point)

Region’s share of BC provincial

govt’s $25 billion Pacific Gateway

Transportation Strategy investment

Pacific North West LNG Terminal $9

- $11 Billion

See Invest in Northwest http://investnorthwestbc.ca

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Highbank, upon completion of a C$3.5 million financing and receipt of permits, will ramp up Swamp Point North production:

Months 1-12 - Stage One development - stripping, construction of processing plant, conveying systems and development of product stockpiles

Initial mining phase at rates of up to 235,000 tonnes per year

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Months 12-24 - Completion of Stage Two and ramp-up of production

1,500,000 tonnes of annual production potentially by Year 3

Years 3-20 - Large-scale mining of the aggregate and commence export sales

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Source of Funds

Financing (combined debt/equity) C$3.5 – C$4.0 million

Use of Funds

Swamp Point North Start-up Costs C$3.0 – C$3.5 million

General Working Capital C$ 500,000

Total C$4,000,000

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Inflows C$ 3.0 million financing, Q2 2014 C$ 2.3 million exercise of $0.10, $0.12 and $0.15 warrants, Q1-Q4

2014 C$6.65 million in aggregate sales, less C$500,000 royalties, from

sale of 235,000 tonnes in 2014

Outflows* C$3.5 million on start-up capital costs C$4.9 million of operating expenses from production of 235,000

tonnes C$300,000 for Highbank overhead expenses of (C$25,000/month)

*excluding interest payments and taxes

** View our Updated Cash Flows on our Swamp Point Portland Canal Website page: www.highbankresources/projects/swamp-point-portland-canal/

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Years 2 and 3 (through December 2016)

540,000 tonnes per annum

$18.90 million per year in revenue (@ $35/tonne)

$8.6 million per year in operating profit*

*prior to interest, Highbank overhead, taxes

Potential Production By 2017 (with expansion)

1,500,000 tonnes per annum

$52.5 million per year in revenue ($35/Tonne)

$24.3 million per year in operating profit *

* prior to interest, Highbank overhead, taxes

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Victor N. Bryant, I.Eng; MAusIMM, President/CEO/Director

40+ years mining experience incl. with Major Mining Companies

Gary Musil, Secretary/CFO/Director

30 years financial and management consulting experience

Stan Spletzer, VP of Aggregate Operations

30 years contracting experience incl. for Canfor, Houston Forest Products, and

BC Ministry of Forests

Luard J Manning, P.Eng (Mining) Director

50 years mining experience as a consultant and as President of L.J.

Manning and Associates since 1967

Jake Bottay, Director, past President of Highbank

Mining and project financing experience as director or officer of numerous

public companies

Jim Place, P. Geo;

25+ years with BC Government, engineering and consulting companies

including Levelton, and quarry evaluations

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#600 - 625 Howe Street,Vancouver, B.C. V6C 2T6

Victor Bryant CEO/President/DirectorGary Musil, CFO, Secretary/Directort. (604) 683-6648/f. (604) 683-1350

[email protected]

This document contains certain forward-looking statements and information relating to Highbank that are based on the beliefs of management as well as assumptions made by and information currently available to management. When used in this document, the words "anticipate," "believe," "estimate," "expect," and "intend" and similar expressions, as they relate to Highbank or its management, are intended to identify forward-looking statements. Such statements reflect the current view of Highbank respecting future events such as the antcipated completion of certain Prince Rupert-Kitimat construction projects, the company’s ramp-up schedule, various stages of financing by the company, completion of stage two and any production estimates, the company’s use of proceeds calculation, projected cashflow forecasted revenue and production dates, revenue and profit, and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended.

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