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MFX: TSXV Platinum & Palladium Projects June 2013 SWISS MINING INSTITUTE NORTHWEST ONTARIO 1

Platinum & Palladium Projects

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Platinum & Palladium Projects. NORTHWEST ONTARIO. MFX: TSXV. June 2013 SWISS MINING INSTITUTE. Disclaimer. - PowerPoint PPT Presentation

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Page 1: Platinum & Palladium  Projects

1

MFX: TSXV

Platinum & Palladium

Projects

June 2013SWISS MINING

INSTITUTE

NORTHWEST ONTARIO

Page 2: Platinum & Palladium  Projects

2

DisclaimerThis presentation may contain forward-looking statements including, but not limited to, information regarding geological interpretations, potential timing and content of exploration programs, receipt of permits or property titles, joint venture agreements, Company financings, etc. Forward-looking statements refer to events and conditions which have not yet taken place, and therefore involve inherent risks and uncertainties. Actual results may differ materially from those anticipated in these statements. Minfocus Exploration Corp. relies upon litigation protection for forward-looking statements.

Gerald Harper, P. Geo. President & CEO, is the Qualified Person under NI 43-101 for the projects discussed in this presentation.

Page 3: Platinum & Palladium  Projects

South African Mines - Deeper and Deeper

BUSHVELD 1st GENERATION VERTICAL SHAFTS

Depth: 600m to 1000m

MOSTLY MINED OUT

BUSHVELD 2n d GENERATION VERTICAL SHAFTS

Depth: + 1000mNEARING DEPLETION

BUSHVELD 3rd GENERATION VERTICAL SHAFTSDepth: 1500m to 2500m

SINKING, DEVELOPING, OPERATING OR CANCELLED

Shallow Declines100m to 600m

MOSTLY MINED OUT

NW ONTARIO CanadaDepth: <500m

MINFOCUS - NW ONTARIO versus BUSHVELD COMPLEX

Page 4: Platinum & Palladium  Projects

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Platinum and Palladium Markets – Major Shifts

Minfocus views the Platinum and Palladium markets on the verge of significant changes to both Supply and Demand

South Africa will dominate supply concerns– Deeper and deeper mines needed to source PGM’s (+1,500-2,000 meters)– Labour issues will continue to be evident with union demands for higher wages– More importantly, the long term continued increase in labour and power costs

will force more mines in South Africa to close (labour +10-22%, power +8%)– Recent nearer surface discoveries (+500-1,000 meters) have lower Pt:Pd ratio– Average grade (3PGE) in has dropped from 4.3 g/t (1998) to about 2.0 g/t (2012)

Demand for Platinum is below historic levels– Due to recent world economic conditions, as of 2012, the principal consumers

of platinum, the auto catalyst industry is 21% below pre-recession levels!– Jewelry demand continues to grow – up +24% since 2006 – Jewelry demand in China has jumped +81% since 2006 to +1.9 million oz

Page 5: Platinum & Palladium  Projects

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Platinum Markets – Significant Changes

JOHNSON MATTHEY Platinum 2012 Interim Review November 2012

“The platinum market is forecast to move into a deficit of 400,000 oz in 2012. Severe disruption to platinum group metal (pgm) mining is expected to reduce supplies from South Africa by over 600,000 oz. With demand firm at 8.07 million ounces and a decline in recycling, the balance of the platinum market will look very different to last year.”

“The palladium market is forecast to move from a surplus in 2011 to a deficit this year of 915,000 oz. Supplies are expected to contract, mainly due to lower sales of Russian state stocks, and we anticipate reduced palladium recycling. Gross demand is predicted to rise to 9.73 million ounces, driven by a return to positive net physical investment and higher autocatalyst purchasing.”

Page 6: Platinum & Palladium  Projects

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Platinum Markets – Significant Changes

JOHNSON MATTHEY Platinum 2013 Review May 2013

“The platinum market was in deficit of 375,000 oz in 2012 due to a steep decline in output from South Africa. Platinum shipments by South African producers fell 16% to 4.10 million oz in 2012. [Overall] primary supply was lowest in 12 years. Total demand was only slightly down 0.6% at 8.05 million ounces and recycling was marginally less.”

“The palladium market moved into deficit of 1.07 million oz in 2012 from a surplus 1.19 million oz in 2011. Palladium supplies fell by 11% in 2012 to 6.55 million oz, their lowest level since 2002. These were mainly due to lower sales of Russian state stocks, and we anticipate reduced palladium recycling. Gross demand for palladium rose by 16% to 9.90 million ounces in 2012, propelled by new high in demand in auto catalysts due to recovering auto sector in Japan, China and NA.”

Page 7: Platinum & Palladium  Projects

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Platinum Supply and Demand 2002-2012

Consumption of Platinum–Mostly Auto Catalyst and JewelleryThousands of Troy Ounces

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

OthersGlassChemicalInvestmentJewelleryAutocatalyst

2011-2012 2006-2012Auto Catalyst -1.1% -21.4% Jewellery/Investment +9.4% +49.2% Total Demand -0.3% +2.3%

Page 8: Platinum & Palladium  Projects

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Platinum Supply and Demand 2002-2012

Production of Platinum – South Africa Largest SourceThousands of Troy Ounces

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Others North America

Russia South Africa

2011-2012 2006-2012S. Africa -12.5% -19.7% Russia -5.4% -14.1%

Total Supply -9.9% -14.5%

Page 9: Platinum & Palladium  Projects

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Palladium Supply and Demand 2002-2012

Demand for Palladium – Dominated by Steady Growth

Thousand oz % Change Thousand oz % Change

Average over Average

2012 2006-2012 2002-2008 2002-2008

Europe 1,960 38.5% 1,673 17.2%Japan 1,405 -10.8% 1,550 -9.4%N America 2,505 18.4% 1,999 25.3%China 1,925 26.6% 1,137 69.3%Rest of World 1,930 58.2% 1,041 85.4%

Total Net Demand 6,480 61.4% 3,883 66.9%

Page 10: Platinum & Palladium  Projects

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Platinum Price Trends

Five-Year Period (May 28, 2008 to May 27, 2013)

Solid Price SupportAt $1,400 per oz

“Average costs increased 23 percent to 15,957 rand ($1,766) an ounce for the nine months through March [2013] from a year earlier”, Implats said May 1, 2013

Page 11: Platinum & Palladium  Projects

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Palladium Price Trends

Five-Year Period (May 28, 2008 to May 27, 2013)

Solid Price SupportAt $575 per oz

Cash costs for North AmericanPd producers = $400-500/oz

Page 12: Platinum & Palladium  Projects

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Minfocus – North American Platinum and Palladium

Invest in Platinum and Palladium in North America

To be successful it requires the right Management:

ExperiencedExceptional local knowledgeTrack record of making discoveries

Minfocus has the Management that is experienced, knowledgable and most importantly has a successful record of discoveries in Platinum and Palladium in North America

Page 13: Platinum & Palladium  Projects

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Management and Directors

Gerald Harper Ph.D., P.Eng.(Ont.), P.Geo.(Ont.) PRESIDENT & CEO, DIRECTOR | Geologist

Co-Discoverer of Current Lake PGE Deposit Ontario-Magma Metals

Kenneth De Graaf M.A.Sc. (Met. Eng.)SENIOR VP, DIRECTOR | Chemical/Metallurgical Engineer

Co-Discoverer of the Gatsuurt Gold Deposit-Centerra Gold, Mongolia

Gavin Cooper B. Comm, C.A.CHIEF FINANCIAL OFFICER

Graham Wilson Ph.D., P.Geo.(Ont.) DIRECTOR | Geologist

Co-Discoverer of Current Lake PGE Deposit Ontario-Magma Metals

Roger Walsh B. Bus.DIRECTOR | Former C.A. and Corporate Advisory

President, Rapier Gold; Recent VP Corporate Development, Aurizon Mines; Jinshan Gold Mines; Ivanhoe Mines

Mark Selby B. Comm (Honours)DIRECTOR | Strategic Analysis PGM/Base Metals

Senior VP, Royal Nickel Corp.; Assist. VP Inco, Strategic Planning & Corporate Development

Page 14: Platinum & Palladium  Projects

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Current Lake Mineralization Discovery:2001

Discovery boulder assayed up to 4.1 g/t Pt + 3.7 g/t Pd new type of PGE deposit in N.A. – PGE’s with Pt:Pd > 1.0

Discovery by Dr. Gerald Harper and Dr. Graham Wilson, principals and directors of Minfocus Exploration Corp.

Page 15: Platinum & Palladium  Projects

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Management Profiles

Gerald HarperPh.D., P.Eng.(Ont.), P.Geo.(Ont.)PRESIDENT & CEO, DIRECTOR

DiscoveriesCurrent Lake Cu Ni PGE, Mayville Cu Ni PGE, Gurvanbulag U

Dev. and OperationsGurvanbulag U, Windy Craggy Cu Co

Public companiesBRINCO, Falconbridge Nickel Mines, Geddes Resources, Khan Resources, Mustang Minerals, Northgate Exploration, NWM Mining Corp., Orofino Resources, Western Prospector Group

M&ACNNC – Western Prospector, ABM Mining, United Gold Corp.

Geologist

Page 16: Platinum & Palladium  Projects

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Management Profiles

Kenneth de GraafM.A.Sc. (Met Eng.)

SENIOR VP, DIRECTOR

DiscoveriesGurvanbulag U, Gatsuurt Au

Dev. and OperationsGurvanbulag U, Gatsuurt Au

Public companiesWestern Prospector Group, Khan Resources Ltd.

M&ACascadia Endeavours – BHP Billiton(PGM-Cu-Ni – Russia),Cascadia Endeavour – Barrick Gold(Fedorova PGM-Cu-Ni, Murmansk, Russia)Cascadia Mining Corp – Cameco Gold(Gatsuurt Gold – Mongolia)Western Prospector Group – CNNC and Khan Res

Chemical/Metallurgical Engineer

Page 17: Platinum & Palladium  Projects

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Management and Directors – Key Advantage

Depth of Exploration Experience and Multiple Discoveries

Multiple deposit discoveries worldwide

Key PGE discoveries by Minfocus management in Central Canada

– Current Lake Pt Deposit (Panoramic Resources)- First Platinum-Rich PGE Deposit discovered in Ontario

– Mayville Cu-Ni-PGE Deposit (Mustang Minerals)- Major Cu-Ni-PGE deposit with Palladium dominant

These two PGE discoveries are arguably two of the most important discoveries in the region that rapidly is becoming the most important exploration area for PGEs in the world.

Over 15 years depth of experience, plus discoveries exploring for PGE-rich resources in NW Ontario

Minfocus Management are proven Mine Finders!

Page 18: Platinum & Palladium  Projects

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Minfocus Exploration Corp.

Portfolio of 6 PGE projects and evaluating others

NW Ontario PGE deposits more economically attractive than South African deposits and more stable politically.

High Platinum-to-Palladium Ratios (Pt:Pd ~ 1.0)

Two Principal properties, both with recent discoveries by Minfocus:

– Nipigon Reefs Project - is less than 15km from Current Lake PGE deposit (+790,000 oz Pt-Eq), and has near surface PGE mineralization and at depth

– Chief Peter Property - has near surface mineralization with high Copper-PGE grades, which was confirmed by recent drilling, and appears to have strong similar to the former Inco Shabandowan Mine which was renowned for PGEs

First rate set of properties that offer historic PGE, plus PGEs with significant Cu and Ni grades that are underexplored.

Minfocus Targeting Platinum-Rich PGE’s in NW Ontario

Page 19: Platinum & Palladium  Projects

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Chief Peter

Max Lake

Weese-Luella WitchwoodSim Lake

Nipigon Reefs

Timmins

Ottawa

Sudbury

Toronto

Chicago

Thunder Bay

RailwaysHighways

Minfocus’ PGE-Cu-Ni Projects

100 km

Page 20: Platinum & Palladium  Projects

Nipigon Reefs PGE Project

20km to Thunder Bay50 km

North American PalladiumLac des Iles Mine/Mill

Palladium (+3.4 million oz Pd) MINFOCUS EXPLORATIONNIPIGON REEFS PROJECT

Panoramic Resources Current Lake Deposit

Platinum (+790,000 oz Pt)

527

11

Thunder Bay

Lake Nipigon

50 km

Nipigon Reefs

Page 21: Platinum & Palladium  Projects

Nipigon Reefs PGE Project

527

Panoramic Resources Current Lake Deposit

Platinum (+790,000 oz Pt)CURRENT LAKE INTRUSIVE COMPLEX

CURRENT LAKE RESOURCE

5 km

MINFOCUS EXPLORATIONNIPIGON REEFS PROJECT

Page 22: Platinum & Palladium  Projects

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Nipigon Reefs PGE Project

Drilling confirms the existence of multiple significant PGE mineralized layers with wide interval lengths up to 5.0 metres thick and grades greater than 0.5 g/t 3E and up to 2.47 g/t 3E

Surface sampling from pits in and around historic trenches confirmed significant grades up to 1.92 g/t 3E

Confirmed high Platinum-to-Palladium Ratios (Pt:Pd ~ 1.0)

Potential new PGE zone discovered at surface, not previously identified in drilling by prior workers, which is exposed at surface over a substantial strike length

Potential for a large multi-layered mineralized PGE system within a circular structure up to 10km – 15km diameter covering Nipigon Reefs

Key Conclusions from Exploration Work to Date

Page 23: Platinum & Palladium  Projects

Chief Peter PGE Project

Lac des Mille Lacs

Thunder Bay

11

11

17

Quetico Provincial

Park

527

MINFOCUS EXPLORATIONCHIEF PETER PROJECT

Former Nickel Mineat Shebandowan

50 km

Page 24: Platinum & Palladium  Projects

Chief Peter PGE Project – 2006 Aeromagnetic Work

5 km

WEST GRID

EAST GRID

West Zone old trenches & DHs

Central Zone (2011 trench channel sampling)

East Zone (2011soil geochem grid)

Magnetic high

Magnetic Low

Page 25: Platinum & Palladium  Projects

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Chief Peter PGE Project

Significant Historic PGE-Cu-Ni Grades - Surface and DrillingHistoric Drill Intercepts

DH Length Cu% Ni% Pt+Pd Grid Company Date

57-3 239 ft 0.53% 0.23% 1.4 g/t E Nashua 1957

57-6 15 ft 1.26% Cu+Ni E Nashua 1957

57-8 15 ft 1.02% Cu+Ni E Nashua 1957

57-9 14 ft 1.50% Cu+Ni E Nashua 1957

? 5 ft 1.99% 0.08% 1.6 g/t W Fort Knox 2000

Historic Rock Samples

Sample Cu% Pt (g/t) Pd (g/t) Pt:Pd Ratio Company Date

B-16 1.78 4.78 3.15 1.52 Nashua 1957

B-19 1.29 2.09 1.12 1.87 Nashua 1957

B-20 2.44 5.31 1.35 3.93 Nashua 1957

? 0.81 1.02 1.36 0.75 Irvine 1963

? 1.78 4.80 3.10 1.55 Coventry 1986

Page 26: Platinum & Palladium  Projects

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Chief Peter PGE Project

Significant Near Surface Discovery – 2013 Drill Hole Assay Results

Hole# From (m)

To (m)

Length (m)

3E (g/t)

Pt (g/t)

Pd (g/t)

Au (g/t)

Cu % Ni %

CP13-01 41.1 45.1 4.0 2.39 1.06 1.27 0.06 0.54 0.22

CP13-02 49.0 54.0 5.0 2.34 1.20 1.08 0.06 0.61 0.14

Page 27: Platinum & Palladium  Projects

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Chief Peter PGE Project

Demonstrated Significant PGE Grades at Surface and in Drilling

Recent drilling >2.0 g/t PGE over 4.0-5.0 meter intervals near surface down to 50 meters.

Drilling nearby the surface zone has reported lengthy drill intercepts of up to 75 metres (239 feet) with 0.53% Cu and 0.23% Ni

A sizeable surface zones with historic PGE grades up to 2.15 g/t Pt+Pd, confirmed by Minfocus 2011 trench samples.

The potential for a significant PGE open pit deposit of mineralized Cu-Ni-PGE system (+5.0 km), which has strong similarities to the former Inco Shebandowan mine, where 8.7 million tonnes of ore were recovered at an average grade of 2% Ni, 1%Cu and 3.0 g/t Pt + Pd

Page 28: Platinum & Palladium  Projects

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Minfocus Exploration Corp.

Focused on continued growth of a portfolio of Platinum Group Element (“PGE”) rich resources by exploration, acquisition and JV’s in NW Ontario, Canada

NW Ontario is one of Most Stable Mining Districts in the world with Global Class PGE deposits

Distinguished Management Group with multiple discoveries of deposits worldwide and +15 years experience and success exploring for PGE-rich resources in NW Ontario

Our Corporate Vision and Strategy

Minfocus has identified other PGE opportunities for both Discoveries and Acquisitions in NW Ontario

Page 29: Platinum & Palladium  Projects

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Thank You for Your Attention

Contact:Minfocus Exploration Corp. Tel: 416.232.0025Fax: [email protected]

www.minfocus.com