Producing Heavy Minerals from Canada s Athabasca Sands. TZMI Congress, Hong Kong November 9, 2011

Transcription

1 TM Producing Heavy Minerals from Canada s Athabasca Sands TZMI Congress, Hong Kong November 9,

2 Forward Looking Information This presentation contains forward-looking information that involves various risks and uncertainties regarding future events. Such forward-looking information includes, without limitation, statements based on current expectations which are based on assumptions and subject to a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation s plans and objectives to differ materially from those expressed in the forward-looking information. These risks and uncertainties are more particularly described and updated in the Corporation s documents filed with the Canadian securities regulatory authorities on SEDAR at Most notably these risks and assumptions include, but are not limited to: successful removal/recovery of zircon, bitumen and solvent; changes in worldwide prices of zircon and titanium; fluctuation in exchange rates; development and commercialization plans; legislative, political or economic developments including changes to relevant legislation in Canada; operating or technical difficulties in connection with development activities; requirement for additional funding; development timelines; potential values of recovered zircon, bitumen and solvent; expected future oil sands production & bitumen losses; and prospective results of operations, financial position or cash flows that are based on assumptions about future economic conditions and courses of action. These and all subsequent written and oral forwardlooking information are based on reasonable estimates, opinions and assumptions of management on the dates they are made and are expressly qualified in their entirety by this notice and the Corporation s documents filed with the Canadian securities regulatory authorities on SEDAR at Except as required by securities law, the Corporation assumes no obligation to update forward-looking information should circumstances or management s estimates or opinions change. Titanium Corporation November

3 Creating Value from Waste TM Titanium Corporation is creating value from Canada s Athabasca Sands in two important areas: Industry-wide technology solution recovers valuable heavy minerals, bitumen and solvent from oil sand tailings Reduces emissions, consumption of fresh water and the environmental footprint of tailings ponds Titanium Corporation November

4 Titanium Corporation Corporate Information TSXV Share Price Nov 3 (52 week range) $1.85 ($1.00/$2.90) Average trading volume 50,000 shares/day Shares Outstanding 64 million Market Cap $118 million Major Shareholder Pinetree Capital 11.4% Cash Position $12 million (August 31/11) Titanium Corporation Inc. (TSXV : V.TIC) Titanium Corporation November

5 Titanium s Management Team Scott Nelson President & CEO (IBM,PWC, Hess, Amoco, Dome) Jennifer Kaufield Vice President, Finance & CFO (Placer Dome Catena,E&Y CA, CPA, BCom) George Duguay, Corporate Secretary Dr. Kevin Moran Vice President, Process Development (Syncrude Canada PhD Chem Eng MScEng, BSc) John Oxenford Vice President, Oil Sands (Syncrude Canada MSc. Eng, BSc) Dr. Salustio Guzman Vice President, Marketing (Rio Tinto, Alcan PhD Metallurgy) Director Position Other Boards Gordon Pridham Chairman Newalta Corporation; Chairman, US Silver Corp C. Bruce Burton Corporate Director BioteQ Environmental Technologies; Continental Nickel Inc. Moss Kadey Corporate Director Brita GmbH Malcolm Macpherson Corporate Director Minara Resources Ltd; Pluton Resources; Range River Gold Inc. Scott Nelson President & CEO Brant G. Sangster Corporate Director Canadian Oil Sands Ltd; Inter Pipeline; Harvest Energy Eric W. Slavens Corporate Director Altus Group Income Fund Titanium Corporation November

6 Athabasca Sands: One of World s Largest Oil and Minerals Resources Titanium Corporation November

7 Oil Production will Double in Next 10 Years: Titanium Corporation November

8 Athabasca Oil Sands Mining Operations 4 mining sites Up to 1 million tpd per site 400 ton trucks, 100 ton shovels Titanium Corporation November

9 Oil Sands Extraction Process Hot water slurry Flotation, mixing, settling ~40,000 tons/hr Produces bitumen froth Minerals concentrated in froth Titanium Corporation November

10 Bitumen Froth Treatment Process Solvent added to bitumen froth Gravity separators reject sand/water Bitumen product for up-graders and pipelines Tailings contain concentrated heavy minerals and lost bitumen Titanium Corporation November

11 Froth Treatment Tailings Composition of tailings: 73-80% water 2-10% bitumen & solvent 17% solids containing minerals Heavy minerals ~25% of solids Froth treatment tailings at four sites: Syncrude, Suncor, CNRL, Shell 2-4 million tons of solids annually per site 10.5 million tons per year total solids Titanium Corporation November

12 Athabasca Sands Heavy Minerals: ~12% Zircon magnetite ilmenite leucoxene rutile zircon pyrite other Titanium Corporation November

13 Integration of Oil Sands Mining and Heavy Minerals Processes: HYDROCARBON WATER CONCENTRATOR TAILINGS CONCENTRATOR PLANT Titanium Corporation November

14 Oil Sands Tailings Pond

15 Four Operating Mining Sites: Over $800 million per year of recoverable valuable resources are lost to tailings ponds (1)Price assumptions: $80/B WTI; $1,400/T zircon Typical Annual Range Potential Recovery Potential Value(1) Zircon 200, ,000 tons 65% 75% $182M - $262M Bitumen 8 10 million barrels 75% 80% $360M - $480M Solvent 750, ,000 bbls 75% 90% $45M - $72M Water million m 3 50% 80% Totals $587M - $814M Titanium Corporation November

16 A single large mining site annually loses over $250 million of recoverable valuable resources: (1) Price assumptions: $80/b WTI; $1,400/t zircon Typical Annual Range Potential Recovery Potential Value(1) Zircon 70, ,000 tons 65% 75% $64M - $105M Bitumen 2 3 million barrels 75% 80% $90M - $144M Solvent 300, ,000 bbls 75% 90% $18M - $29M Water million m 3 50% 80% Totals $172M - $278M Titanium Corporation November

17 Titanium Corporation s Athabasca Sands Development Path: $3.5M Grant from Government of Alberta leveraged R&D $5M Grant from Canadian Government (SDTC) $14M Private Placement R&D: Technologies tested at laboratory and bench scale; 6 patents filed Demonstration Pilot (Syncrude, CNRL, Suncor) Commercialization: FEED Engineering Construction Commissioning SNC-Lavalin design & engineering of demonstration plant SNC-Lavalin site specific engineering Titanium Corporation November

18 On-site Concentrator Pilot Program Titanium Corporation November

19 Wet Plant Testing Titanium Corporation November

20 Separation Circuit Development Titanium Corporation November

21 Pilot Facility at CanmetENERGY

22 Titanium s Pilot at CanmetENERGY

23 Titanium s Pilot at CanmetENERGY

24 Creating Value from Waste TM After 12 month demonstration pilot, our technology has exceeded targets: Heavy minerals cleaned and concentrated (95%) 80% recovery of bitumen Recovery of 75% of solvents (a major source of VOC s at oil sands sites) Thickened tailings and water recovery Titanium Corporation November

25 Commercialization Process Technical due diligence (completed) Site specific planning and prelim. engineering (one site completed) Site specific cost estimates and economics (one site completed) Fiscal and regulatory terms (Alberta Government review underway) Commercial agreements Partnering/joint ventures/financing EPC (24 months) Titanium Corporation November

26 Single Site Project Economics are Robust: *Preliminary Estimates Capital Costs $370 million Annual Revenue $171 million (after royalties) Operating Expenses $41 million EBITDA $130 million IRR 23% NPV-1 site $360 million *See next slide for key assumptions: $80/B WTI; $1,400/T Zircon; 25% light/heavy differential Titanium Corporation November

27 Financial Outlooks and Assumptions The forward-looking information appearing on the previous slide (including the associated estimates of capital costs, annual revenue, operating expense, earnings before interest, taxes, depreciation, amortization and other certain items (EBITDA), internal rates of return (IRR), and net present values have been presented to provide investors with management's estimate of the single site economics for a facility employing the Corporation's Creating Value from Waste process. This forward-looking information is based upon the following assumptions: $80 USD/bbl WTI; bitumen price differential 25% (i.e., bitumen price of $60 USD/bbl); $1,400 USD/ton for zircon; $80 USD/bbl of solvent; USD to CDN $ exchange rate $1.00; discount rate 10%; Federal and Alberta tax rates of 28%; production of 100 million barrels per year with an estimated 2% bitumen contained in froth tailings stream; estimated bitumen recovery of 75%; 300,000 bbls of solvent being contained in tailings; estimated solvent recovery of 75%; estimated zircon recovery of 55,000 tons/year. Investors are cautioned that actual results may vary from such forward-looking information. See the Corporation s documents filed with the Canadian securities regulatory authorities on SEDAR at for a description of material risk factors that could cause actual results to differ materially from the financial outlook. Titanium Corporation November

28 Compelling Economic and Environmental Benefits of Implementing Titanium s Technology: At 2010 Athabasca Oil Sands production: Economic Benefits: (current prices) 170,000t/y zircon; $340 million/yr 28,000b/d bitumen;$700million/yr At 2020 projected production: Economic Benefits: (current prices) 400,000t/y zircon; $800 million/yr 70,000b/d; $1.8 billion/yr Environmental Benefits: VOC reduction of 80%;60kt/yr CO2 reduction 5.6%; 0.8 Mtonnes/yr NOx reduction 4.2%;1.9kt/yr >50% recycle water; 25% river water usage reduction Environmental Benefits: 80%; 151kt/yr 5.6%; 2.4 Mt/yr 4.2%; 5.8kt/yr >50% water recycle; 25% river water usage reduction Titanium Corporation November

29 Multiple Minerals Projects in High Growth Athabasca Oil Sands Sector: 4 large mining sites currently in operation and expanding: Syncrude, Suncor, CNRL, Shell Imperial Kearl mine commissioning 2012 Oil production forecast to more than double to 3 million b/d in next 10 years; associated sand tailings rich in heavy minerals Titanium s technology addresses environmental concerns about tailings and emissions Zircon potential of 400,000 t/y for growing international markets Titanium Corporation November

30 For Information on Creating Value from Waste Scott Nelson President & Chief Executive Officer Titanium Corporation Suite 1400, Baker Centre th Street Edmonton, Alberta T5J 1G TSX Venture Exchange under the symbol TIC Titanium Corporation November 2011