cobalt projects presentation - lico energy metalscobalt projects presentation. cautionary notes...

TSX.V: LIC OTCQB: WCTXF FRA: 43W1

A Lithium and Cobalt Exploration Company

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COBALT PROJECTS PRESENTATION

CAUTIONARY NOTES

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The information contained in this presentation 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 LiCo Energy 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 reviewed this information and no representation or warranty is made by LiCo Energy Metals. To that effect, LiCo Energy Metals is not responsible for the content of sites that can be reached through links on this site. 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 LiCo Energy Metals 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.

LiCo Energy Metals does not make any representations, warranties or guarantees, express or implied, regarding the accuracy, completeness, timeliness, non-infringement, or merchantability or fitness for a particular purpose or use of any information contained in this presentation or of any information available on web sites that are accessible by links found on this site. 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 LiCo Energy Metals 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 available in this presentation, the links to other sites contained in this presentation nor any information available on such sites.

The Information in this presentation have been reviewed and approved by Joerg M. Kleinboeck, P. Geo, an independent qualified person in accordance with National Instrument 43-101.

http://licoenergymetals.com/

TELEDYNE COBALT PROPERTY SUMMARY

100% option, 2% net smelter royalty with Palisade Resources.

$25 million (inflation-adjusted) of completed work and infrastructure, including a modern adit to a depth of 500 feet.

Directly on-strike with Cobalt Camp’s most prolific past producing cobalt mine – the Agaunico Mine. Historically, the AgaunicoMine produced 4,350,000 lbs. of cobalt and 980,000 oz. of silver during the mining boom of the early 1900’s (Cunningham-Dunlop, 1979).

Substantial land package covering over approx. 607.1 ha.

Cobalt is an integral component in electric vehicle batteries – a fact that is largely unrealized by the market at present.



TELEDYNE COBALT PHASE ONE EXPLORATION PROGRAM


In early 2017, LiCo Energy Metals has commenced a Phase One surface

exploration program on the Teledyne Cobalt Property. Line cutting was

completed on patented claims 372 and 229 and a UTEM 5 geophysical

survey was completed. This work, along with the historical data, has been

compiled and evaluated in advance of a diamond drill program planned

to commence in Q4 of 2017.


GLENCORE BUCKE COBALT PROJECT SUMMARY

100% interest in Glencore plc mining rights on patented mining claim 585.

Purchase includes back-in provision, production royalty and an off-take agreement in favor of Glencore

Situated in Bucke Township, 6 km east-northeast of Cobalt, Ontario

Consists of 16.2 hectares; situated along west boundary of LiCo’s Teledyne Cobalt Project

1980’s drilling program outlined two vein systems hosting significant cobalt and silver values.



Tesla alone is forecasted to increase production from 25,000 vehicles to 500,000 by 2020

The US EV market is projected to grow from ~116,000 vehicles to 750,000+ by 2020

IEA Global EV forecasts that the number of EVs on the road will increase from 450,000 today to 6 million by 2020

Bloomberg New Energy Finance forecasts 35% of vehicles sold in 2040 will be EV

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THE CASE FOR COBALT

To date, lithium has garnered most of the attention in the sector; however, cobalt has virtually zero primary production and is an integral part of the

lithium battery and electric vehicle story

ELECTRIC VEHICLES (EV) ARE NOW ECONOMICALLY VIABLE



In 2015, only 123,000 tons were mined globally with total refined production at ~93,000 tons

96% of global production comes from copper and nickel by-product

• 50% of total production coming from the Democratic Republic of the Congo

• Over two-thirds of worldwide production originates in Africa, China, and Russia

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COBALT SUPPLY: SMALL, BY-PRODUCT, TIGHTLY-HELD

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The key takeaways to recognize are the lack of primary cobalt production globally and the reliance on geopolitically risky jurisdictions for supply

• Major copper and nickel producers have suspended operations at multiple copper/cobalt mines

• Glencore’s DRC mines removed 3,000 tons from the market upon their closure in Q4/15



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COBALT: JUST AN AFTERTHOUGHT



Cobalt supply is largely derived from copper and nickel production as a by-product

96% of the world’s cobalt is produced as by-product

Low copper and nickel prices have mothballed many mines, creating a major catalyst for new cobalt developments

• Glencore’s Katanga, now on care and maintenance, this provided enough cobalt to supply half the Gigafactory’s cobalt demand

Demand is driven most importantly by electric vehicle demand

• There are approximately 500,000 EVs on the road currently, with forecasts that that number will reach 5 million by 2020; this offers massive upside for the cobalt market.

Supply deficit in Cobalt in 2007-2008 led to a price spike from $15/lb to over $50/lb

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SUPPLY/DEMAND DYNAMICS



One of the most prolific silver mining areas in the world

Deposits in the area occur along the northern and eastern margins of the Southern Province, called the Cobalt Embayment

Three major regional scale fault trends occur within the area

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Source: David K. Joyce Minerals

101010

THE COBALT-GOWGANDA SILVER MINING AREA



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COBALT MINING CAMP

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Historic Mining Camp dating back to 1903

One of the world’s largest silver camps in the early 20th century

Estimated 18,000,000 kg of silver and 14,000,000 kg of cobalt produced there historically

425 km north of Toronto, along the Trans-Canada Highway and Ontario Northland Railway’s main line

Mining friendly community with a skilled workforce; mining and exploration services available locally




COBALT PROJECT MAPS


Claims cover an area of 607.1 ha in Bucke and Lorrain Townships, located in the Larder Lake Mining Division, Northeastern Ontario.

Accessible by highway and well maintained secondary road; 6 km from downtown Cobalt.

Cobalt ore custom milling within 2 km of the Teledyne Ramp.

Teledyne Mine is at an advanced stage of exploration and development; production can be reached at an accelerated pace.

Entrance to the Shaft

TELEDYNE COBALT PROPERTY

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In 1979, Teledyne Canada Ltd., completed a surface diamond drilling program consisting of 6 drill holes that extended the Agaunico 15 Vein onto the Property for a strike length of 195 m.

In 1980, Teledyne Canada Ltd. completed a 2,300 ft decline to completed an underground diamond drilling program (22 diamond drill holes totalling 1879.7 m). The present face of the decline is approximately 70 ft west of the mineralized zone.

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Teledyne Ramp Entrance

TELEDYNE COBALT PROPERTY


Based on the surface and underground diamond drill programs completed between 1979 and 1980, a historical resource of 100,000 tons at an average grade of 0.45% Co, 0.6 oz/t Ag was estimated (Linn, 1983). The resource estimate is a historical estimate as defined by National Instrument 43-101. There has been no review of the methods and results of this historical resource estimate by a Qualified Person. No attempt was made to reconcile the historical resource calculations as reported by Teledyne Tungsten. LiCo is not treating the historical resource estimate as a current mineral resource or mineral reserve.


6 surface drill holes (1979) and 22 underground diamond drill holes (1980)

4 of the 6 surface drill holes intersected ore grade cobalt (>0.10% Co); Individual Co grades to 10.6% and Ag to 2.36 oz/ton

Additionally, 18 of the 22 underground drill holes intersected ore grade cobalt (>0.10% Co); Individual Co grades to 10.2% and Ag to 4.21 oz/ton

Drill program has confirmed the continuation of the high grade cobalt Agaunico15 Vein onto the Teledyne Cobalt Property with a strike length of approximately 195 metres.

There is potential for the extension of the known veins, and for the discovery of undiscovered veins on the Teledyne Cobalt and Glencore Bucke Cobalt Properties.

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TELEDYNE DIAMOND DRILLING (1979-80)



The Property consists of 16.2 hectares and sits along the west boundary of LiCo’sTeledyne Cobalt Project. The Property covers the southern extension of the #3 vein from the Cobalt Contact Mine located immediately to the north of the Glencore BuckeProperty (Bresee, 1982).

GLENCORE BUCKE COBALT PROPERTY


Historical Pit


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GLENCORE BUCKE HISTORICAL DRILLING


In the early 80’s the Glencore Bucke Property was explored by 36 surface diamond drill holes totaling 3,323 m.

The drilling program outlined two separate vein systems hosting significant cobalt and silver values. The two zones are known as the Main Zone, measuring 152.4m in length, and the Northwest Zone, measuring 70.0 m in length.

Additional work was recommended but never completed due to a downturn in cobalt prices at the time.

Based on the surface diamond drill program completed in 1981, a historical resource of 75,000 tons at an average grade of 0.45% Co, 3.0 oz/t Ag was estimated (Linn, 1983). The resource estimate is a historical estimate as defined by National Instrument 43-101. There has been no review of the methods and results of this historical resource estimate by a Qualified Person. No attempt was made to reconcile the historical resource calculations as reported by Teledyne Tungsten. LiCo is not treating the historical resource estimate as a current mineral resource or mineral reserve.



Arrival of diamond drill onto the Glencore BuckeProperty – September, 2017.


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