DEVELOPING IRON ORE ASSETS - Focus on Port Snettisham, Alaska - Corporate Presentation - 4Q

Transcription

1 DEVELOPING IRON ORE ASSETS - Focus on Port Snettisham, Alaska - Corporate Presentation - 4Q

2 Disclaimer & Forward Looking Statements Arrowstar Resources Ltd. wishes to clarify that the assays and test work are based on historical data and actual data from samples collected and analyzed in A qualified person has not yet done sufficient work to classify the asset as inferred, indicated or measured resources, the Company is not treating the assay estimates as current mineral resources. There has been insufficient exploration to define a NI compliant resource. It is uncertain if further exploration will result in the discovery of an economic mineral resource and there is no guarantee that all or any of the estimated potentials will be recoverable. Independent geological exploration, analysis, and engineering studies will be required. This document includes forward-looking statements including, but are not limited to, statements concerning Arrowstar Resources Ltd. s planned exploration programs and other statements that are not historical facts. When used in this document, words such as "could, plan, "estimate," "expect," "intend," "may," "potential," "should," and similar are forwardlooking statements. Although Arrowstar Resources Ltd. believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading Risk Factors and elsewhere in the corporation s periodic filings with Canadian securities regulators. 4Q Arrowstar Resources Ltd. 2

3 Corporate Information Quick Market Facts October 11, 2013 Trading Symbols TSX-V: AWS Frankfurt: D2E Current Price $ Week Range $0.025 $0.11 Market Cap $ 1,672,534 Shares Issued 68,344,702 + Options 6,795,000 + Warrants 6,640,833 Fully Diluted 81,780,535 4Q Arrowstar Resources Ltd. 3

4 Corporate Information Details of Options, Warrants and Shares October 11, 2013 Strike Price Expiry Outstanding Options $ Nov ,000 $ Feb ,625,000 $ Jan ,485,000 $ Sept ,110,000 $ June ,000 6,795,000 Warrants $ Apr ,280,000 $ Oct ,833 6,640,833 4Q Arrowstar Resources Ltd. 4

5 Senior Management Officers and Directors Office Information Arrowstar Resources Ltd. Suite Howe Street Vancouver, BC Canada V6C 2B3 Phone: Toll Free: Fax: Board of Directors Robert L. Card, BA (Econ/Comm) - President, CEO & Director Phillip Thomas, BSc, MBusM, MAIG, MAIMVA - Vice President Exploration, Director Andrew Jarvis, BBA - Director R. Brian Ashton Director Senior Management Blaine Y. Bailey, BComm, CGA - CFO Betty Anne Loy - Secretary Alex Burton, PEng, PGeo - Qualified Person Investor Relations arrowstarresources@shaw.ca AUDITORS - Davidson & Company, Vancouver, BC LEGAL COUNSEL - MacMillan LLP, Vancouver, BC TRANSFER AGENT - Computershare, Vancouver, BC Please see website for bio s 4Q Arrowstar Resources Ltd. 5

6 Robert L. Card, BA (Econ/Comm) President and CEO Robert Card, President and CEO comes to the Company as a highly successful venture capitalist and former stockbroker, creating and managing many public and private companies specializing in resources, and has generated opportunities and wealth for many along the way. He graduated from Simon Fraser University in 1969 with a BA in Economics and Commerce. Mr. Card has a deep understanding of economic fundamentals, economic trends and market conditions. Mr. Card also built a successful real estate business in Washington State, through to 2006, and was also Managing Partner of a successful Hotel in Waikiki, Hawaii. 4Q Arrowstar Resources Ltd. 6

7 Phillip Thomas, B.Sc (Geol), MBM, MAIG, MAIMVA Director and Vice President Exploration Phillip is focused on the development of Arrowstar s iron asset in Alaska. He is implementing a development plan that commenced when he joined Arrowstar in Phillip is currently working on a drilling program to measure the iron asset at Port Snettisham, create a NI Report, with an indicated and inferred resource measurement - and if warranted, design a port facility and mine plan. He holds a Bachelor of Science in Geology from Australian National University, in Canberra, Australia, and a Masters in Business Marketing degree from Monash University in Melbourne, Australia. He is a member of the Australian Institute of Geoscientists, and has actively been involved in magnetite iron ore mining since Phillip recently completed an advanced geophysics course with Fugro Airborne/CCG. Mr. Thomas is a Certified Mineral Valuer and member of the Australasian Institute of Minerals Valuers and Appraisers. In 2003, he was appointed Chairman and CEO of Admiralty Resources, an ASX listed company that had numerous exploration properties covering magnetite iron ore and lithium. Phillip has also explored for cobalt, laterite nickel, lead, zinc and platinum. In June 2006, Admiralty built a processing plant in 90 days that produced 500,000 tonnes p.a. of iron ore in 2007 and Parallel to this, he developed a lithium brine deposit in Argentina (Rincon Lithium Ltd) and produced lithium carbonate in Q Arrowstar Resources Ltd. 7

8 Phillip Thomas, B.Sc (Geol), MBM, MAIG, MAIMVA Director and Vice President Exploration (Cont d) In December 2009, he raised $15m of private equity to develop another lithium project in Argentina that he and his colleagues at Admiralty Resources discovered. Post the sale of the lithium project, Phillip invested in a large iron ore project in Mexico. Currently, Aussie Mex SA, his Mexican company, is shipping Direct Shipping Ore to China and has estimated resources of 36 million tonnes at making it one of the larger mines in Mexico. Phillip consulted to Sociedad Compania Minera Vallenar Iron Company in Chile in 2010, and was involved in a 41 hole diamond drilling program which produced a Proven and Probable measured resource statement of 80 million tonnes of iron ore. Phillip is a competent person as defined by the JORC code on the Australian Stock Exchange and a qualified person to sign NI statements. He has worked on various iron ore projects in Chile, Argentina, Mexico, Peru, Alaska, Quebec, Malaysia, and Australia. 4Q Arrowstar Resources Ltd. 8

9 Phillip Thomas, VP - Exploration (Cont.) Chile iron ore operations where Mr. Thomas is Chief Geologist and CEO of Sociedad Compania Minera Vallenar Iron Company Mexico - where he is President of AussieMex SA de CV, a private company 4Q Arrowstar Resources Ltd. 9

10 R. Brian Ashton, Director In June, 2013, R. Brian Ashton was elected to Arrowstar s Board of Directors. He has over 44 years of business experience primarily in the venture capital investment community. He has held officer and licensed stockbroker positions in various brokerage firms in Vancouver, including Canarim Investment Corp. (now Canaccord Genuity) and a minority shareholder of Brink, Hudson & LeFever Ltd. He was the largest shareholder, Chairman, director and CEO of Georgia Pacific Securities Corp., from March 1986 to April The owners sold the firm and Mr. Ashton left the firm in February 2001 and joined Wolverton Securities Ltd, where he was a Senior Vice- President. He retired from Wolverton and the investment industry in December Mr. Ashton was a Governor of the Vancouver Stock Exchange ("V.S.E.") (now the TSX Venture Exchange) from inclusive and a five year member of the Executive Committee. At various times he was Chairman of the Membership Committee and Vice Chairman of the Audit Committee, as well as a member of the Listing Policy Committee and the Discipline Committee of the V.S.E. During this time he was also a member of The Investment Bankers Association of America. Mr. Ashton was at one time licensed in all provinces and territories in Canada, except Quebec, and also licensed in 26 U.S. States. Mr. Ashton is now Managing Director of Eagle Advisory Group, a consulting and business advisory firm, since January Q Arrowstar Resources Ltd. 10

11 Importance of Iron Ore Iron Ore Monthly Prices Over 10 Years China import Iron Ore Fines 62% FE spot (CFR Tianjin port), US Dollars per Metric Ton Source: IndexMundi.com, January Q Arrowstar Resources Ltd. 11

12 Port Snettisham, Alaska Key Project In 2011, Arrowstar entered into an option agreement acquire a100% interest in 49 mineral claims, 50 kilometres southeast of Juneau, Alaska and 30km from the Canadian border to the east. The map shows magnetic highs (red areas), which identifies areas of magnetic dykes. Source: Geotronics Consulting Inc. 4Q Arrowstar Resources Ltd. 12

13 Port Snettisham, Alaska Key Project (Cont.) In January, 2013, Arrowstar announced that it had staked an additional 21 claims, increasing the project area by approx. 43%. 4Q Arrowstar Resources Ltd. 13

14 Port Snettisham, Alaska Historical Work Completed 1950 s - The US Bureau of Mines conducts studies (including 11 drill holes), "...a potentially large deposit that can be recovered as high grade magnetite concentrate using standard, comparatively low cost methods. ( the Report of Investigations 5195, was published by the US Dept. of the Interior, Bureau of Mines; Non compliant and not to be relied upon) 4Q Arrowstar Resources Ltd. 14

15 Port Snettisham, Alaska Historical Drilling Success A total of 6546 feet (1995 metres) of core drilling was completed in 11 drill holes ranging in length from feet (122 metres) to feet (259 metres). Samples assayed from 11% to over 45% total iron. Following further work, it was estimated that the area contained 687,342,000 tons of ore above sea level and a total of 1,000,000,000 tons to a depth of 167 feet (50 metres) below sea level. These figures are historic figures and are not NI compliant. (Thorne & Wells unpublished report April, 1955, available online from ARLIS - Alaska Resource Library & Information Service; Non compliant and not to be relied upon) 4Q Arrowstar Resources Ltd. 15

16 Port Snettisham, Alaska Historic Tests: High Iron Concentrates Juneau, AK Port Snettisham AK Snettisham ore has been subject to several programs of beneficiation test work including a US Bureau of Mines RI 5195 Report (1956) that indicates: a potentially large deposit containing titaniferous magnetite that can be recovered as high grade magnetite concentrate using magnetic separation. it is possible to produce an iron ore concentrate containing in excess of 60% Fe with good iron ore recoveries. Samples of 64% Fe have been produced. Source USGS 4Q Arrowstar Resources Ltd. 16

17 Port Snettisham, Alaska Character and Size The ongoing economic growth and demand in China for high-grade iron ore and advances in methods of concentrating lower grade ore, support the strategy of utilizing Alaskan iron as sources of supply for steel industries in China, as well as Korea, Japan and India. The magnetites of Southeastern Alaska are of particular interest because of their large size, accessibility and favorable logistics conditions that prevail in the coastal region in which they are situated. 4Q Arrowstar Resources Ltd. 17

18 Port Snettisham, Alaska Geological Summary The mineralization is situated next to a deep glacial trough (watercourse channel), which is 60 metres deep 20 metres from shore. The property is on a hill rising to 2000 feet (606 meters). The geology is composed of an ultramafic magnetitebearing diorite-hornblendite-pyroxenite intrusive that transitions to a large area of magnetite dykes. The pluton seems to have intruded a sedimentary sequence and so the boundary is abutted with a phyllite. The US Department of the Interior, Bureau of Mines, who drilled 11 holes in the 1950 s, conducted a geophysical survey over the body, and had beneficiation tests done on the ore samples. A section of 1900 feet (579 metres) was explored to a depth of 1000 feet (304 metres), totaling 6,546 linear feet (1995 metres) of drill holes. This program reported good results with assays of 11%-48% Fe total, with a composite from one of the cores showing 18.9 Fe%, 2.6% TiO2, 0.29% S, 0.32%P, and 0.05%V. Beneficiation of the iron ore samples involved crushing to 150 mesh and with dry magnetic separation. The analysis reported 61-64% Fe total, 3.5% TiO2, 0.4% S, and 0.01% P. 4Q Arrowstar Resources Ltd. 18

19 Port Snettisham, Alaska Historical Work Completed (Cont.) 1960 s - Marcona Corporation and Marubeni (of Japan) drilled 38 holes and completed a feasibility study for 2-5 million tonnes of pellet feed or pellets After extensive exploration and metallurgy, Marcona and Marubeni developed plans for a mine with production at 5 million tons per year, over 50 years. (State of Alaska, Mines Bulletin, Feb. 1970) 4Q Arrowstar Resources Ltd. 19

20 Port Snettisham, Alaska Arrowstar successfully completed the Beneficiation Testing from 105 samples The average Fe of 21% is typical for pyroxenite, and during operations a mining engineer will be testing the head grade to ensure it meets the cut off grade. The S, P, SiO2 and Al2O3 grades on samples containing high Fe conformed with commercial grades.... The 105 samples were crushed and then tested for magnetic attraction to simulate going over a high speed magnetic drum in production. Because of the diversity of the samples, this simulated the iron ore input grade. The results were encouraging, and within the norm for this type of deposit.... The high nonmagnetic silicates reflects the ferro silicates present in the host pyroxenite. The range of 20-30% Fe Magnetic material is typical for this style of deposit.. 4Q Arrowstar Resources Ltd. 20

21 Drilling by the US Bureau of Mines in the 1950 s note the main ore body was not intersected, only intrusive dykes Modeling by Geos Mineral Consultants Pty Ltd Q Arrowstar Resources Ltd. 21

22 Port Snettisham, Alaska Future plans 4Q Arrowstar Resources Ltd. Using results from our recent geophysics program and rock chip sampling survey as guides, the company is planning to diamond drill the Snettisham magnetite iron ore to determine the presence of a resource. It is the company s intention to complete another NI report, with an indicated and inferred resource measurement - and if warranted, create a mine design and a bank feasibility study based on the NI report. 22

23 Planned Drilling Campaign 2014 Modeling by Geos Mineral Consultants Pty Ltd. from 2012 magnetic surveys 4Q Arrowstar Resources Ltd. 23

24 Port Snettisham, Alaska The Potential There are three key areas with a nano tesla magnetic reading in excess of 70,000 (pink areas=>55-60% Fe). One has a surface area of approximately 280,000 square metres, the other about 1,000 sq metres and the third area about 200,000 sq metres although this third region is yet to be fully surveyed. With a total area of approximately 550,000 sq. metres, and at an average depth of 100 metres (although the vertical magnetic modeling points to much deeper depth), and using a specific gravity of 3, there is approximately 165 million tonnes of iron ore (ignoring kriging and other dilution effects). These figures are based on historic figures and are not NI compliant. If we survey down to 64,000 nano teslas clearly the tonnage is much larger. 4Q Arrowstar Resources Ltd. 24

25 Port Snettisham, Alaska The beach area to the south of the tenement, where magnetite bearing pyroxene outcrop forms a black band at the forest level. Picture of the tenement from North to South. The second inlet (where the old pier is) is where gold mining was conducted in Q Arrowstar Resources Ltd. 25

26 Port Snettisham, Alaska The magnetite bearing pyroxene mineralisation is highly magnetic and extends for 2000m along the foreshore. The magnet seen in the lower portion of the photograph sticks to the magnetite. 4Q Arrowstar Resources Ltd. 26

27 Port Snettisham, Alaska The size of the pyroxene/magnetite bearing boulders is very large, weighing up to 10 tonnes each. This talus has come from magnetite dykes further up the hill. 4Q Arrowstar Resources Ltd. 27

28 Summary Arrowstar has assembled an exceptional team of professionals, who are both experienced and capable to advance the development of our key project to production. Alaska over the next 12 months: 1. Drilling Program 2. Indicated and Inferred Resource Measurement in a NI Report Alaska over the next months: 1. Preliminary feasibility study 2. Mine Plan 3. Banking Feasibility Study 4Q Arrowstar Resources Ltd. 28

29 Please contact: Investor Relations (604)