LITHIUM EXPLORATION IN ARGENTINA

Transcription

1 LITHIUM EXPLORATION IN ARGENTINA Adrian F.C. Hobkirk President and Chief Executive Officer T: E: Jose de Castro Chief Operating Officer Buenos Aires T: E: jdecastro@nrgmetalsinc.com

2 The information contained herein is provided solely for the reader's general knowledge. The information is not intended to be a comprehensive review of all matters and developments concerning NRG Metals Inc. All information is offered on a "best intentions" basis. No securities commission or other regulatory authority in Canada or any other country or jurisdiction has in any way passed upon this information and no representation or warranty is made by NRG Metals Inc. to that effect. This presentation may include "forward looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding exploration results, future plans and objectives of NRG Metals Inc. are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. NRG Metals Inc. does not make any representations, warranties or guarantees, express or implied, regarding the accuracy, completeness, timeliness, noninfringement, or merchantability or fitness for a particular purpose or use of any information contained in presentation. Furthermore, the information in no way should be construed or interpreted as, or as a part of, an offering or solicitation of securities. Investors are advised to discuss all of their stock purchases with a registered securities broker or personal finance professional prior to investing. No obligation, responsibility or liability shall be incurred by NRG Metals Inc. or any of its officers, directors, employees or agents for any loss or damage whatsoever, whether incidental, special, indirect, consequential, punitive, exemplary, or for lost profits in connection with, caused by or arising from any delays, inaccuracies, errors or omissions in or infringement by, or from any use of, or reliance on such information contained in this presentation. THE FINANCIAL PROJECTIONS PERTAINING TO THE HOMBRE MUERTO LIHTIUM PROJECT ARE BASED UPON ASSUMPTIONS, EXPERIENCE AND PROPRIETARY KNOWLEDGE OF KEY LITHIUM MANAGEMENT. FURTHER EXPLORATION OF THE HOMBRE MUERTO NORTH LITHIUM PROJECT IS REQUIRED TO CONFIRM THE ASSUMPTIONS CONTAINED WITHIN THIS PRESENTATION AND TO VERIFY AND CONFIRM THE POTENTIAL OF THE FINANCIAL MODEL THIS PRESENTATION IS FOR DISCUSSION PURPOSES ONLY

3 COMPANY HIGHLIGHTS Company management are highly qualified and experienced in the exploration and development of lithium projects Company objective is to quickly enter the lithium market with technically uncomplicated, limited environmental footprint projects located in Argentina Hombre Muerto North located in an area of lithium production. Drilling tested and underway. Infrastructure built. Salar Escondido is a 29,000 hectare claim block and represents and exploration opportunity to make a significant new lithium discovery. Drilling recently confirmed lithium in target zone. Phase Two drilling now underway. Company has strategic alliance with Chemphys Chendgu, a China based lithium producer. Chemphys is the largest shareholder and has an off-take for any Hombre Muerto North lithium production TSX Venture: NGZ OTCQB: NRGMF Frankfurt: OGPN NRG Metals listed as TOP 10 PERFOMER in 2018 TSX Venture 50 Ranking TWO DRILL PROGRAMS NOW UNDERWAY 1

4 LITHIUM TEAM Jose De Castro James K. Duff Jose Louis Martin Fernando E. Villarroel C H I E F O P P E R T A I N G O F F I C E R L I T H I U M T E A M L E A D E R N R G M E T A L S A R G E N T I N A Mr. de Castro has five years with Argentine lithium producer OROCOBRE LTD. (ASX:ARE) from as Country Manager and was responsible for the development of the Salar de Olaroz Lithium Project, a $ U.S. 300 million operation. He has extensive knowledge of lithium exploration, development and operations, having supervised the work program for Orocobre at Salar de Olaroz, and Salinas Grandes. He has also held senior positions FMC Lithium the operator of South America s largest lithium operation in the Hombre Muerto salar. E X E C U T I V E D I R E C T O R N R G M E T A L S A R G E N T I N A Mr. Duff has over 40 years of diverse experience in international mining, including positions as the Chief Geologist at St. Joe Mineral s Aguilar mine in Jujuy province, and Chief Operating Officer of Minera Andes, which owns 49% of the San Jose gold-silver mine in Santa Cruz, Argentina and 100% of the giant Los Azules porphyry copper deposit in San Juan, Argentina. Mr. Duff was also formerly the President of South American Operations for Coeur Mining with responsibility for mines in Chile, Bolivia and Argentina. M A N A G E R O F N E W B U S I N E S S D E V E L O P M E N T N R G M E T A L S A R G E N T I N A Dr. Martín served as the Catamarca representative for Galaxy Lithium S.A. from 2010 to 2013 where he participated in the development of the feasibility study for Galaxy s Sal De Vida project in the Salar de Hombre Muerto. Dr. Martín has over 35 years of experience in the mining industry, including exploration, development operations and community and governmental relations. P R O J E C T M A N A G E R N R G M E T A L S A R G E N T I N A Mr. Villaroel has 12 years of experience in the mining industry in Argentina with a focus on Lithium process development. From 2009 to 2013 he worked with Lithium Americas Corp. (Minera Exar S.A.) as Project Manager which included construction management and commissioning of the initial pilot evaporation facilities and laboratory at the Cauchari Olaroz Lithium Project. He has also acted as a consultant to Neo Lithium and International Lithium Inc. He holds a degree in Industrial Engineering and has specialized training in Data Modeling & Analysis for Business and Engineering from M.I.T. 2

5 CURRENT MARKET World production of lithium is dominated by a small number of participants that account for 90% of the total market Production from salar brine accounts for 51% of world production Significant operational challenges encountered in producing a Technical Grade lithium product at a remote salar location. World projects have been characterized by low success in timing along with budget and schedule overruns. The NRG strategy is founded on uncomplicated and rapid development, minimal environmental impact, and joining an offtake partner who requires and industrial grade product. NRG will focus on establishing an Industrial Grade production operation TSX Venture: NGZ OTCQB: NRGMF Frankfurt: OGPN NRG desires a sustainable operation, and is currently negotiating with a major supplier of solar energy systems to potentially power operations in Argentina, where the known solar resource is significant. 3

6 LITHIUM MARKET SUPPLY AND DEMAND WORLD LIT HIUM PRODUCTION FROM BRINE World production of lithium is an oligopoly controlled by four companies which produce 89% of supply from all sources Albemarle produces 18%, SQM produces 21% and FMC produces 10%, all sourced from lithium brine Tianqi / Albemarle produce 40% of the worlds lithium supply from mineral sources in Australia FMC, 10% Albemarle1 8% SQM, 21% Tianqi, 40% New entrants into the marketplace are required to meet future demand Source Global Lithium

7 METRIC TONNES 197, , , , , , , , , , ,055 LITHIUM MARKET SUPPLY AND DEMAND GLOBAL LIT HIUM CARBONAT E DEMAND Megatrends are driving lithium demand growth Electric vehicles including cars and buses (a Tesla has 112 pounds of lithium in its battery) Grid storage potential demand could exceed electric vehicle demand Lithium ion battery technology key to renewable energy Lithium ion battery market is yet to reach maturity as new applications are continuously being defined Source Global Lithium

8 CHEMPHYS CHENGDU STRATEGIC ALLIANCE NRG Metals has a strategic alliance with high-purity Lithium battery producer in China Chemphy s specializes in manufacturing lithium products for lithium battery materials, electronics and XRF spectrometry applications Chemphys Chemical Industry, founded in February 1998, is a private Australian-Chinese enterprise. The company is both ISO9001 and ISO14001 certified Ms. Alison Dai, of Chemphys is quoted, We are pleased to have formalized our strategic partnership with NRG and are committed to working with NRG s team to expedite the development of the HMN Project. Alison Dai, director at Chemphys, was added the board of Directors at NRG Metals Inc. in

9 HOMBRE MUERTO NORTH LITHIUM PROJECT DRILLING UNDERWAY PROJECT SUMMARY Property package of 3,287 hectares Package comprised of six concessions, located in Salta Province, adjacent to Galaxy Resources Sal de Vida Li Project aand FMC Li Fenix Mine Large amount of public data suggest the claims are located in a high grade portion of the salar. Drill pads and road construction is complete High grade surface lithium results from recent sample program Off-take agreement in place with Chemphys Chengu for all lithium production from this site 7

10 HOMBRE MUERTO NORTH LITHIUM PROJECT PROJECT AREA HIGHLIGHTS In a Technical Report dated March 7, 2012, Lithium One provided a detailed log of diamond drill hole SVH11-21 with assay values that ranged from a low of 564 mg/l Li to a high of 895 mg/l Li over the 95m length of the hole. That hole is located 750 m south of the Tramo concession. In a press release dated April 10, 2017, Galaxy Resources announced the initiation of production-well drilling at Sal de Vida, approximately two km south of the Tramo concession. Given robust exploration, development and mining activity in the area, access to key infrastructure is excellent. Montgomery and Associates completed NI Technical Report in October 2017 recommending drill testing the claim group 8

11 HOMBRE MUERTO NORTH LITHIUM PROJECT 9

12 HOMBRE MUERTO NORTH LITHIUM PROJECT 2018 SAMPLE RESULTS AND CHEMISTRY PROFILE Sample Number Property Li (mg/l) K (mg/l) Mg (mg/l) Mg/Li SO4 HMN-1 Tramo HMN-2 Tramo HMN-4 Tramo HMN-6 Tramo HMN-7 Alba Sabrina HMN-9 Natalia Maria HMN-11 Natalia Maria

13 HOMBRE MUERTO NORTH LITHIUM PROJECT PROJECT HIGHLIGHTS Tramo Claim road and pad completed All weather camp operational Other road areas and pads under construction HMN prelim drill results Drill Assay results 11

14 SALAR ESCONDIDO PALEO SALAR PROJECT HIGHLIGHTS Located in Catamarca Province, 40km south of Antofagasta de la Sierra NRG controls a dominant portion of the basin with a total of 29,192 hectares under option Drill tested in December 2017 confirms lithium in target zone Nearby Galan Caldera ( is believed to be the source of lithium for the Hombre Muerto / and Antofalla salars) Approximately 40km east of the large Antofalla Salar. Approximately 100km south of Hombre de Muerto salar, location of the FMC lithium production facility and Sal de Vida lithium deposit owned by Galaxy Resources. 12

15 SALAR ESCONDIDO PALEO SALAR 13

16 SALAR ESCONDIDO PALEO SALAR 0 20KM 14

17 SALAR ESCONDIDO EXPLORATION HISTORY Company completed a VES survey across two of the claim blocks Surface sampling in fresh water zone returned anomalous Li values up to 50ppm and high carbonate values 15

18 SALAR ESCONDIDO EXPLORATION HISTORY Preliminary interpretation indicates four distinct zones Surface zones 1 and 2 are dry sediments followed by sediments with fresh water / not conductive Middle zone is fresh water and brine / semi-conductive Fourth zone which is the target zone is highly conductive and has been confirmed to contain lithium bearing brine 16

19 SALAR ESCONDIDO EXPLORATION HISTORY First drill hole completed in December 2017 Difficult geological conditions allowed only limited sample recovery One fifteen meter sample obtained from the top of the target zone confirmed 229 ppm Lithium Program restarted April 2018, with rig on site completing second hole 17

20 BOARD OF DIRECTORS AND MANAGEMENT Adrian F.C.Hobkirk President & Chief Executive Officer A d r i a n h a s 2 6 years of experience in the mining and venture capital industry, He has been involved in Guyana for over twenty years and founded the company to develop the Groete Gold Copper Deposit in 2006, the third largest gold deposit in Guyana. He has worked in many countries including Argentina and is the largest shareholder of NRG Metals Inc., founding the company in Gordon K. Neal Director Gordon Neal has more than 35 years experience in governance, corporate finance and investor relations. He founded Neal McInerney Investor Relations in Through marketing more than $4 billion in debt and equity financings, the company grew to be the second largest full service Investor Relations firm in Canada He is currently VP Corporate Development for Silvercorp Metals Inc. Jose de Castro Director & Chief Operating Officer Mr. de Castro has five years with Argentine lithium producer OROCOBRE LTD. (ASX:ARE) from as Country Manager and was responsible for the development of the Salar de Olaroz Lithium Project, a $ U.S. 300 million operation. He has extensive knowledge of lithium exploration, development and operations, having supervised the work program for Orocobre at Salar de Olaroz, and Salinas Grandes. He has also held senior positions FMC Lithium the operator of South America s largest lithium operation. Christopher P. Cherry Fernando E. Villarroel Directory & Project Manager Mr. Villaroel has 12 years of experience in the mining industry in Argentina with a focus on Lithium process development. From 2009 to 2013 he worked with Lithium Americas Corp. (Minera Exar S.A.) as Project Manager which included construction management and commissioning of the initial pilot evaporation facilities and laboratory at the Cauchari Olaroz Lithium Project. He has also acted as a consultant to Neo Lithium and International Lithium Inc. He holds a degree in Industrial Engineering and has specialized training in Data Modeling & Analysis for Business and Engineering from M.I.T. Director &Chief Financial Officer: Mr. Cherry has over 14 years of corporate accounting and audit experience. Formerly an auditor with KPMG, Mr. Cherry has extensive corporate experience and has held senior-level positions for several public mining companies. He is a certified general accountant and a chartered accountant. Jan Urata Corporate Secretary: Ms. Urata brings over 20 years experience in public company corporate finance and securities related matters including her years as a paralegal at McMillan. She also serves as a Corporate Secretary to other TSX Venture issuers. Allen V. Ambrose Director Founder and President of Minera Andes from November 1995 until it s combination with McEwen Mining in 2012., Mr. Ambrose directed the exploration and completion of the San Jose Mine in Argentina for Minera Andes. He now sits on the board of McEwen Mining. He has over 30 years experience in the mining industry and is the co-discoverer of the Brisas Gold Deposit in Venezuela. Alison Dai Director Ms. Dai has 7 years of experience in the lithium industry and is responsible for business development and is a director for Chengdu Chemphys Chemical Industry Co., Ltd. In her role at Chemphys, Ms. Dai has been involved in developing strategic partnerships, international markets and procurement. Prior to joining Chemphys, Ms. Dai was an investment banking analyst at J.P. Morgan Australia in the mining and metals team. Ms. Dai holds a double degree in Bachelor of Laws and Bachelor of Commerce from the University of Western Australia. 18

21 TSX.V: NGZ OTCQB: NRGMF Frankfurt: OGPN 750 W Pender St. Suite 804, Vancouver B.C. Canada V6C-2T7 Ph: Direct: ahobkirk@nrgmetalsinc.com