Macusani Project Uranium & Lithium in Peru Moving Towards 2020 Production TSX-V:PLU FSE:QG1 OTC:PLUUF

Transcription

1 Macusani Project Uranium & Lithium in Peru Moving Towards 2020 Production TSX-V:PLU FSE:QG1 OTC:PLUUF

2 Disclaimer The particulars contained herein were obtained from sources which we believe reliable but are not guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis and interpretation and are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein. This presentation includes certain forward-looking statements concerning the future performance of Plateau Uranium's business, operations and financial performance and conditio n, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. Forward-looking statements and forwardlooking information include, but are not limited to, statements with respect to estimated production and mine life; the futur e price of uranium; the estimation of mineral reserves and resources; the realization of mineral resource and reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to Plateau Uranium, certain information contained herein constitutes forward-looking statements. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks, the availability of financing, variations in gr ades or recovery rates, risks relating to international operations, fluctuating currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, as described in more detail in the Company's recent securities filings available at Actual events or results may differ materially from those projected in the forward-looking statements and Macusani cautions against placing undue reliance thereon. Neither Plateau Uranium nor its management assume any obligation to revise or update these forward-looking statements. Qualified Persons The scientific and technical information contained in this document relating to preliminary economic assessment was prepared by or under the supervision of, or reviewed and approved by, Mr. Michael Short, B.E., CEng., FIMMM and Dr Thomas Apelt, PhD, CEng., MAusIMM, of GBM Minerals Engineering Consultants, and/or Mr. Mark Mounde, BEng., CEng., MIMMM of Wardell Armstrong International, who are independent technical consultants to the Company and "Qualified Persons" under NI Standards of Disclosure for Mineral Projects. The scientific and technical information contained in this document relating to the Mineral Resources was prepared under the supervision of, or reviewed and approved by Mr. David Young, B.Sc. (Hons), FGSSA, FSAIMM, FAusIMM, Pr Sci Nat (No /83) of The Mineral Corporation that is an independent technical consultant to the Company and a Qualified Person under NI Standards of Disclosure for Mineral Projects. 2

3 Developing An Emerging U-Li District Plateau Uranium Plateau Uranium controls one of the world s largest undeveloped Uranium-Lithium districts Located on the Macusani Plateau, Puno, Southern Peru Unique, shallow, volcanic-hosted supergene/surficial uranium deposits Excellent infrastructure: Access to labour, water and inexpensive hydro-electric power Transport (major paved highway) Plentiful supply of sulfuric acid History of mining in the region Minsur San Rafael Tin Mine Other gold & silver development projects Supportive government and local communities 3

4 District Potential 7.5 km radius Proposed Central Processing Plant (PEA Jan 2016) Consolidated >910 km 2 land package One of the largest uranium-lithium districts in the world 124 Mlbs U 3 O 8 plus 176,000 t Li 2 O Un-tested Mineralized prospects at surface Drilling focused on <15% of land package Significant exploration potential exists Over 910 km 2 of Exploration Concessions 4

5 Investment Highlights Strong Uranium-only Project Economics at US$50/lb U 3 O 8 * NPV8: US$603M / IRR: 40.6% / 1.8 years capital payback (post-tax) Large Scale: Proposed production of over 6M lbs U 3 O 8 per year over a 10 year mine life Low Cost: US$17.28/lb LoM cash production cost, <US$300M initial capital Lowest quartile production potential Project economic at current Term uranium prices, significant leverage to consensus longer term forecasted prices Control of All Defined Uranium Resources in Emerging Uranium District** 52.9 M lbs U 3 O 8 Measured & Indicated (248 ppm) 72.1 M lbs U 3 O 8 Inferred (251 ppm) 75 ppm U cut-off Additional Lithium Resources with Uranium ** 67,000 t Li 2 O Measured & Indicated (0.13% Li 2 O) 109,000 t Li 2 O Inferred (0.12% Li 2 O) Resources in only 4 uranium deposits within 75 ppm U cut-off Uranium Economics will improve further Additional resources, optimization and upgrading opportunity Lithium Leach test work positive Evaluating potential value-add by establishing OPEX/CAPEX Post Tax IRR/NPV of 40.6%, US$603M Macusani Project, Puno, Peru Strategic Asset Positioned for Uranium Sector Recovery * Jan 2016 Preliminary Economic Assessment ** Resource details from May 2015 and March 2016 NI Reports.

6 Catalysts Improving Uranium market and price environments expected Demand increasing ~3.5% pa Recent term contracting at US$44/lb Using $44/lb - PEA Scenario NPV: US$457M / IRR: 39.7% / 2.0 year payback (post-tax) Positive Drill Results from Pinocho Extending mineralization southeast of existing core uranium deposits at higher grades Uranium & Lithium Extraction Results Base Case confirmed 60-70% lithium extraction with 99% uranium extraction at C Sulphuric Acid Consumption of kg/t processed (head grade of ~0.13% Li 2 O) Scrubbing/Concentration Upgrading work showing promise Li-rich fractions and phases identified with higher Li grades Additional work to establish OPEX/CAPEX requirements for U-Li co-production to PEA level planned Chacaconiza discovery - new surface showings up to 1% U 3 O 8 and up to 1140 ppm Li Peru Ministry of Energy & Mines and elected government highly supportive and are working to ensure future uranium production in the country Increasing Value amid Sector Recovery

7 New Discovery at Chaccaconiza Uranium Discovery First access agreement signed with Chaccaconiza Falchani discovery >2km 2 Up to ~1% U 3 O 8 & 1140 ppm Li in outcrop samples Widespread radioactivity & U mineralization over 6 areas Drill testing at Falchani High Grade Uranium Discovery in New Area 7

8 Low Cost U Production vs Producers Lowest Quartile Cash Costs $17.28/lb $20.30 Current U3O8 Spot Price as at 09 Oct 2017 (UxC.com) Source: Cantor Fitzgerald Canada Estimates, TradeTech, Company Reports January 6, 2017; UxC.com 09 Oct

9 Growing Uranium Demand Global Demand For Electricity to grow >53% by 2035 Nuclear Reactors Worldwide: 447 Operating Worldwide 56 Under Construction 160 Planned 351 Additional Proposals Today s Supply Crunch: 85% of demand met by mining 15% from secondary sources Around The World: The Rise Of Nuclear Energy by 2035 Annual U 3 O 8 Requirements 2017 Demand Mlbs Reference Demand 243 Mlbs by 2035 Source: World Nuclear Association (September 1, 2017) 9

10 Uranium Supply, Demand & Price Lowest Quartile Cash Costs $17.28/lb * Source UxC Presentation & UxC ( Recent Supply Erosion Kazakhstan reductions ~5Mlbs/tr Cameco removed ~7 Mlbs/yr AREVA reducing Niger production Producers processing stockpiles rather than continue mining >10% of Global Mined Supply 10

11 Lithium Resources Lithium Resources all within Uranium Resources Existing Lithium Resources of 67,000 t Li 2 O Measured & Indicated (0.13% Li 2 O) & 109,000 t Li 2 O Inferred (0.12% Li 2 O) Only 4 deposits have sufficient Li analyses All reported Li from these deposits is within the 75 ppm U economic cutoff used in Uranium PEA Lithium is widespread with relatively consistent contents in the host rocks waste contains Li and resources will grow Lithium leach test work promising Sulphuric acid leaching ~70% Li recovery at C Scrubbing & concentration increases Li head grades Work on leaching & precipitation to determine OPEX and CAPEX requirements for Li production started Determining Uranium-Lithium Co-production Potential 11

12 Lithium Demand & Price Increasing Present demand growth driven by E-Vehicles; Future by Grid Storage Based on only 1-2% E-Vehicle penetration Li-Carbonate input cost represents only ~2% of battery cost Prices expected to normalize >$10,000/t (Analyst and Producer consensus); Currently >$13,000/t 40 years of Li battery development to date 25 years commercial No alternate battery technology expected for many years Source: Albemarle Corporation; from Cormark Securities Source: Citigroup 12

13 Path to Production Enhanced Environmental work Prospecting/Drilling at New Discoveries Advance uranium permitting & discussions with government Further metallurgical test work including U, Li/K & upgrading Complete PEA for combined U-Li co-production Budget: $3M Drilling to convert resources to measured &/or reserves Commence trade-off & optimization studies Feasibility Study Complete EIA process submissions for construction/production permitting Budget to Complete BFS and Permitting: $12-14M Project financing Commence construction months Positioning Plateau for production in to meet forecasted supply deficit Except for statements of historical fact relating to Plateau Uranium, certain information contained herein constitutes forward-looking statements. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculati ve nature of mineral exploration and development, fluctuating commodity prices, competitive risks, the availability of financing, variations in grades or recovery rates, risks relating to international operations, fluctuating currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated. 13

14 Corporate Summary Plateau Uranium Inc. Listed Exchange Market Cap. Symbol: PLU TSX-V ~$20 million Shares Outstanding 58,043,354 Warrants Outstanding 0 Options Outstanding 4,222, Wk Trading Range $0.165 to $0.71 Recent Share Price $0.31 to $0.34 TSX-V: PLU FSE:QG1 US OTC:PLUUF * Figures in Canadian dollars 14

15 Contact Information Ted O Connor Chief Executive Officer & Director ted@plateauuranium.com Head Office 141 Adelaide St. W., Suite 1200 Toronto, Ontario M5H 3L5 Ian Stalker Chairman & Director ian@plateauuranium.com 15