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Producing and Exploring in Sudbury, Canada’s Premier Mining District Platinum, Palladium, Copper, Nickel and Gold July 2014

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Page 1: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

Producing and Exploring in Sudbury, Canada’s Premier Mining District

Platinum, Palladium, Copper, Nickel and Gold

July 2014

Page 2: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

CAUTIONARY STATEMENT

2

No regulatory authority has approved or disapproved the information contained in this presentation.

This presentation includes certain statements that may be deemed “forward-looking statements”. All statements in this presentation, other than statements of historical fact, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors should be cautious that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.

The Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.

Page 3: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

THE WALLBRIDGE OPPORTUNITY

3

• Broken Hammer Open Pit Mining Project in Sudbury, Ontario – Production Commenced April 2014, 12 month mine life – 800 tonnes of ore per day – Smelter Revenue expected starting August 2014 – Over $5 million pre-tax profit expected to July 2015

• Active Partner Funded Exploration in Sudbury, Ontario – $5.1M+ partner funded exploration in 2014

• Record of Low-Dilution Exploration, Discovery & Development – 2014 Broken Hammer production as “alternative financing” – 2013 Wisner Amendment, $6.0M over 3 years including cash option payments funded by Lonmin – 2012 North Range JV, up to $8.8M funding over 3 yrs. funded by Lonmin – 2010 Miocene Metals Spin Out TSXV:MII – 2008 Parkin Offset JV, $7.3M exploration funded by Implats – 2005 Duluth Metals Spin Out TSX:DM – 2002 Sudbury Camp JV, min. USD $1.0M annual funding by Lonmin

• Polymetallic Exposure in North America – Copper, platinum, palladium and gold deposits – Copper, platinum, palladium, gold and nickel deposits – Copper and gold properties – Molybdenum properties

• Underlying Value and Growth Potential of Spin Out Equity Investments – Wallbridge owns 10.1 million shares (7.4%) Duluth Metals Limited (DM:TSX) – Wallbridge owns 28.4 million shares (40.5%) Miocene Metals Limited (MII:TSXV)

• Socially Responsible with Operations and Assets in Secure Jurisdictions Broken Hammer Open Pit Mine, Sudbury, Ontario, Canada

Page 4: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

CORE ASSETS

4

• Producing at Broken Hammer

• $5.1M+ Partner Funded Exploration in 2014

• 40 Projects, 11 Joint Ventures

• Platinum, Palladium, Copper, Nickel and Gold

• TSX:DM

• 10.1M Shares (7.4%)

• Large PFS Stage Project in Minnesota, USA

• Twin Metals Joint Venture with Antofagasta Plc

• Copper, Platinum, Palladium, Nickel and Gold

• TSXV:MII

• 28.4M Shares (40.5%)

• Copper, Gold, Molybdenum

• Exploration Projects

• Merger underway with Carube Resources Inc.

• Includes Funded Joint Venture with Oz Minerals

Page 5: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

RECENT EXPLORATION & DEVELOPMENT ACTIVITY

5

Page 6: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

2014 EXPLORATION

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– UTEM5, HELITEM, DCIP, Max-Min geophysics completed this past winter – Two drills currently at Wisner, funded by Lonmin Plc – Drilling at Skynner Lake & Trill planned August/September, funded by Lonmin – Prospecting & fieldwork ongoing to firm-up drill targets for 2015, funded by Lonmin – Drilling at Parkin proposed for fall 2014 / winter 2015

Original 2014 Budget: 14,776 metres drilling Current 2014 Forecast: 16,000 - 18,000 metres drilling

2013 2013 2013 2014 2014 2014 2014 2014 2014 2014 2014 2014October November December January February March April May June July August September

NRJVMax-Min, UTEM5,Drilling

SCJVUTEM5, Drilling

Wisner

Geophysics HEM, UTEM5, Drilling

2014 Lonmin JVs

PDACXMAS Break-up

Drilling, BHEM

Drilling, BHEM

MIRA

VTEM

Fieldwork, stripping

Fieldwork, stripping

Fieldwork, stripping Fieldwork,

Fieldwork, stripping

Drilling, BHEMDrilling,

Linecut

LineLinecut

Max-Min UTEM

UTEM5

Line

UTEM5Drilling, BHEM

Fieldwork, stripping

Lonmin JVs follow October 1 to September 31 fiscal year.

Page 7: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

MANAGEMENT AND DIRECTORS

WARREN HOLMES • Mining executive with +40 yrs. experience in mining • Director for HudBay Minerals, Atlanta Gold Inc.,

Foraco International

PARVIZ FARSANGI • Mining Executive with +25 yrs. experience • Director for Miocene Metals, INV Metals, • CEO of Canadian Royalties • Previously CEO of Scorpio Mining & COO with Vale

ROLAND HORST • +35 yrs. experience as investment banker • Previously CEO of C Bay and Director of Victory

Nickel

RENE GALIPEAU • +30 yrs. experience in mining • CEO of Victory nickel and Director of Nuinsco

Resources, Victory Nickel and KWG Resources

DARRYL SITTLER • Former NHL player and 1989 Hall of Fame inductee • Director for Miocene Metals, Royal Nickel, Frontline

Gold

ELAINE ELLINGHAM • Professional Geologist with +30 years of experience • Director for Richmont Mines Inc., Aurania Resources

Ltd. and Williams Creek Gold Limited.

7

ALAR SOEVER Executive Chairman and Director

• Professional Geologist with +30 yrs. experience

• Chairman Miocene Metals, Director for Duluth Metals

MARZ KORD President and CEO

• Mining Engineer with +25 yrs. experience in mining

• Previously EVP for Genivar Consultants, Falconbridge

MARY MONTGOMERY, CPA, CA CFO

• She held senior positions with a number of companies associated with the mining industry in Sudbury

JOSHUA BAILEY Vice President Exploration

• Professional Geologist with +15 yrs. experience

• President of the Sudbury Prospectors and Developers Association

Page 8: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

WHY WE LIKE SUDBURY

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• Production since 1886 • 10 active mines • 2 active mills • 2 active smelters • Good mining culture • Good infrastructure • Skilled workforce • Secure regulatory environment • High value polymetallic Cu-Ni-PGE deposits • Numerous recent discoveries

Vale’s Copper Cliff Smelter, Clarabelle Mill, North Mine, and South Mine Infrastructure in Sudbury

SUDBURY CAMP METAL ENDOWMENT (Naldrett, 2004): ~1.648 billion tonnes, 1.08% Cu, 1.20% Ni, 1.17 g/t PGEs 44 billion lbs. Ni, 40 billion lbs. Cu, 62 million oz. PGEs

Page 9: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

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19+ Million Ounces of PGEs discovered since ~1990*

– Includes over 15 deposits containing a total of over 120 million tonnes with averages grades of:

~4.8 g/t PGE + Au ~3.6 % Cu ~1.7 % Ni

RECENT DISCOVERIES IN SUDBURY

Examples of Recent Discoveries in Sudbury with

1M+ Ounces of PGEs*

Resource Ni Cu Pt + Pd Pt + Pd

Mt % % g/t Moz

Capre ? ? ? ? ? Victoria 14.5 2.5 2.5 7.6 3.5

McCreedy East FW 6.8 0.9 9.9 13.4 2.9 Nickel Rim South 13.0 1.4 3.1 4.3 1.8

Totten Mine 10.1 1.5 1.97 4.8 1.6 Kelly Lake 11.4 1.72 1.41 3.8 1.4

Victor Deep FW 6.16 1.9 6.2 6.7 1.3 *3rd party mineral resources information is from publicly available documents, Wallbridge can not confirm the accuracy of this information.

Page 10: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

BROKEN HAMMER OPEN PIT MINE PROJECT

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2014 RESERVE UPDATE (BASED ON CURRENT MINING)

TONNES 193,152

CU 0.95 %

NI 0.10 %

PT 2.16 gpt

PD 1.96 gpt

AU 0.65 gpt

AG 6.69 gpt

The Qualified Person for the Broken Hammer updated reserve estimate is Mr. Marz Kord, P. Eng., President & CEO for Wallbridge. The updated Mineral Reserve estimate is based on updated economic inputs and does not represent a material difference from the previous Mineral Reserves estimated by RPA Inc.(see Press Release dated September 18, 2013).

open

COPPER 11,377$ NICKEL -$ GOLD 4,409$ SILVER 411$

PLATINUM 15,193$ PALLADIUM 7,561$

TOTAL REVENUE 38,952$

FORECASTED REVENUE ('000 CAD)

Mining incl. G&A 10,650$ Crushing & Hauling 8,058$

Processing 11,776$ Royalties 1,277$

Capital Expenditures 1,543$ TOTAL COSTS 33,305$

FORECASTED COSTS ('000 CAD) METAL PRICE RECOVERYCOPPER 3.25$ 86.2%NICKEL 8.00$ 48.2%

GOLD 1,310$ 84.8%SILVER 21$ 63.6%

PLATINUM 1,500$ 82.5%PALLADIUM 850$ 80.3%

CAD/US 1.07:1

TOTAL REVENUE 38,952$

NET CASHFLOW 5,647$

FORECASTED CASHFLOW ('000 CAD)

TOTAL COSTS INCL. CAPITAL & ROYALTIES 33,305$

Page 11: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

BROKEN HAMMER OPEN PIT MINE SUMMARY

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Ore Delivery To Mill

Construction Starts

Concentrates to Smelters

Payments from Smelters

Expected Completion April 2015

Broken Hammer Open Pit Mine Site, June 10, 2014

-$1,000 $-

$1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000

$10,000

Apr

-14

May

-14

Jun-

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Jul-1

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4 Se

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BROKEN HAMMER CUMULATIVE CASHFLOW

Page 12: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

WISNER PROPERTIES - LONMIN

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• $2.6M budget funded by Lonmin from October 1, 2013 to September 30, 2014.

• Potential additional $3.4 million Lonmin funding to September 2016.

• Drilling (two rigs), mechanical outcrop stripping and prospecting underway.

• 10 kms strike length of favourable geology.

• Numerous target areas including high grade Cu-PGE occurrences at surface, geophysical and soil anomalies, and favourable Sudbury breccia structures in the footwall to Ni-Cu-PGE deposits on adjacent Vale and Glencore properties.

Page 13: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

North Range Joint Venture (NRJV)

• $0.9M funded by Lonmin from October 2013 to September 2014.

• Up to $8.8M Lonmin funding to 2016. • 13 Early stage projects. • Currently fieldwork underway. • Early stage projects

Sudbury Camp Joint Venture (SCJV)

• USD $1.6M funded by Lonmin from October 2013 to September 2014.

• Minimum USD $1.0M Lonmin funding annual

• 9 projects

• Currently drilling planned for August and September at Skynner Lake and Trill properties.

13

OTHER LONMIN JV PROJECTS

Mechanical Stripping at the new Trill East Ni-Cu-PGE occurrence on the Trill Property

Page 14: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

14

9.5 kms Parkin Offset Dyke – Past Producing Milnet Mine – Parkin Resource (open at depth) – High Grade Milnet 1500 Zone (open in all

directions) – High Grade Brady Showing (open at depth)

2014/2015: drilling at Parkin Resource

– Exploration target: 3-5 million tonne resource expansion potential above 500 metres depth.

– Exploration target is conceptual based on current drill intersections, borehole geophysics, and the nature of the Parkin Resource and similar Offset deposits elsewhere in Sudbury. There has been insufficient work completed to determine whether a deposit of this size exists on the property, further exploration is required.

Impala Platinum Joint Venture

PARKIN PROPERTY

Page 15: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

15

Feb 2014 Updated Resource, contained metals *

Metal Measured Resource

Indicated Resource

M&I Resource

Inferred Resource

Copper 3.7 billion lbs. 11.0 billion lbs. 14.7 billion lbs. 12.3 billion lbs.

Nickel 1.2 billion lbs. 3.5 billion lbs. 4.7 billion lbs. 4.2 billion lbs.

Platinum 1.3 million ozs. 4.5 million ozs. 5.8 million ozs. 3.6 million ozs.**

Palladium 3.0 million ozs. 10.2 million ozs. 13.2 million ozs. 8.0 million ozs.**

Gold 0.7 million ozs. 2.5 million ozs. 3.2 million ozs. 1.8 million ozs.**

Significant Value Driver for Wallbridge Shareholders

Twin Metals Minnesota (TMM) JV with Antofagasta Plc – The world’s largest undeveloped Cu-Ni-PGE deposit in friendly jurisdiction of North America – Joint Venture with Antofagasta Plc who would earn 40% of the project by completing the Bankable

Feasibility Study

Duluth Metals Upside – Feasibility Study results expected in H1, 2014 – Exploration potential in 37,000 acres of exploration interests outside of Twin Metals spin-out – Discovery of two new mineralized zones in January 2013 on Duluth’s 100% owned properties

WALLBRIDGE SPIN-OUT EQUITY INTEREST- DULUTH METALS

*Using a base case 0.3% Cu cut-off, the deposit contains 1,069 million tons of Measured & Indicated Resource grading Cu 0.59%, 0.19% Ni, Pt 0.16 gpt, Pd 0.36 gpt, Au 0.08 and 562 million tons of Inferred Resource grading Cu 0.51%, 0.17% Ni, Pt 0.14 gpt, Pd 0.32 gpt, Au 0.07

Page 16: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

16

WALLBRIDGE SPIN-OUT EQUITY INTEREST- MIOCENE

Porphyry Cu-Au-Mo projects in SW BC – Rogers Creek and MacKenzie: Cu, Au – Salal: Moly

Miocene age Cascade Magmatic Arc – Similar to copper-gold belts in Chile, Peru, USA, Indonesia

and Papua New Guinea (e.g., El Teniente, Chuquicamata, Grasberg, Bingham Canyon)

Excellent infrastructure in British Columbia

MIOCENE-CARUBE RESOURCES PROPOSED MERGER 2014

Porphyry Cu-Au projects in Jamaica

Joint Venture Partnership with Oz Minerals $6.5M expenditure to earn 70%. Additional $6.5M on each of three other properties

Excellent infrastructure in Jamaica

Page 17: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

17

WALLBRIDGE VALUE PROPOSITION

• Small producer to generate cash flow • Strong management team with mining and exploration experience • Good track record of optimizing investor exposure to discovery upside through

self-funded exploration, spin-outs, and joint ventures with major companies • High Potential for further exploration-driven discoveries in an established mining

camp • Exploration budget and drilling increasing as joint venture commitments grow • Significant upside potential through retained equity interests in quality projects • Successfully implemented “alternative financing” strategy consisting of JV funding

and small scale mining cash flow, minimizing shareholder dilution

Broken Hammer Open Pit Mine Site, June 10, 2014

Page 18: Producing and Exploring in Sudbury, Canada’s Premier ... · Producing and Exploring in Sudbury, Canada’s Premier Mining District . Platinum, Palladium, Copper, ... July 2014

FOR FURTHER INFORMATION Linda Zubal, VP, Corporate Communications 705-682-9297, ext. 263 [email protected]

Issued and Outstanding 167.2 MOptions 19.4 MWarrants and Compensation Options 7.0 MRSU's & DSU's 2.5 MFully Diluted 196.1 M