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

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Page 1: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

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

Platinum, Palladium, Copper, Nickel and Gold

October 2014

Page 2: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

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,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

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– $5.4M+ partner funded exploration in 2014– $5.5M partner funded exploration in 2015

• 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– 2011 Broken Hammer Bulk Sample generates net cash flow of US$2.9M– 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,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

CORE ASSETS

4

• Producing at Broken Hammer

• $5.4M Partner Funded

Exploration in 2014

• $5.5M Partner Funded

Exploration in 2015

• 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,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

RECENT EXPLORATION & DEVELOPMENT ACTIVITY

5

Page 6: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

2014/2015 EXPLORATION

6

JV Partner Funded 2014/2015 Exploration

– Drilling underway at Wisner

– Airborne EM Geophysics Worthington and Drury, Fall 2014

– Drilling at Windy Lake & North Range, January 2015

– Ground EM Geophysics at Windy Lake & North Range, January 2015

– Drilling at Parkin proposed for winter 2015

Forecast 2014 Drilling: 21,393 metres drilling

Forecast Q1, Q2, & Q3 2015 Drilling: ~22,500 metres drilling

Lonmin JVs follow October 1 to September 30 fiscal year.

2014 2014 2014 2015 2015 2015 2015 2015 2015 2015 2015 2015

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

NRJV

SCJV

Wisner

2015

Lonmin JVs

Drilling, BHEM

LIDAR

Fieldwork,

Fieldwork,

Fieldwork,

Fieldwork, stripping

Drilling, BHEM

Drilling, BHEM

Linecut EM

Fieldwork, stripping

Drilling, BHEM

Linecu EM

Fieldwork, stripping

HEM, LIDAR

LIDAR

Page 7: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

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

• Interim CEO & Director for Richmont Mines Inc.

• Director for Aurania Resources Ltd. and Williams

Creek Gold Limited.

7

ALAR SOEVERExecutive Chairman and Director

• Professional Geologist with +30 yrs. experience

• Chairman Miocene Metals, Director for Duluth Metals

MARZ KORDPresident and CEO

• Mining Engineer with +25 yrs. experience in mining

• Previously EVP for Genivar Consultants, Falconbridge

MARY MONTGOMERY, CPA, CACFO

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

JOSHUA BAILEYVice President Exploration

• Professional Geologist with +15 yrs. experience

• President of the Sudbury Prospectors and Developers Association

Page 8: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

WHY WE LIKE SUDBURY

8

• 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,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

9

19+ Million Ounces of PGEs

discovered since ~1990*– Includes over 15 deposits containing a

total of over 120 million tonnes with

average 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,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

BROKEN HAMMER OPEN PIT MINE PROJECT

10

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 RECOVERY

COPPER 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,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

BROKEN HAMMER OPEN PIT MINE SUMMARY

11

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

Ap

r-14

Ma

y-1

4

Ju

n-1

4

Ju

l-14

Au

g-1

4

Sep

-14

Oct-

14

No

v-1

4

De

c-1

4

Jan

-15

Fe

b-1

5

Ma

r-15

Ap

r-15

Ma

y-1

5

Ju

n-1

5

Ju

l-15

BROKEN HAMMER CUMULATIVE CASHFLOW

Page 12: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

WISNER PROPERTIES - LONMIN

12

• $2.4M Lonmin funding from January 1, 2014 to September 30, 2014.

• $2.5M Lonmin commitment from October 1, 2014 to September 30, 2015.

• 2014 drilling intersected high grade Cu-PGM’s at Twisted Wrench, Southwest Zone, and Broken Hammer Extension targets, all above 120 metres depth and open below

• Drilling & mechanical stripping underway following up Twisted Wrench zone discovered in 2014

• 10 kms strike length of Cu-PGE occurrences, anomalies, and favourable geology along strike of Wallbridge’s Broken Hammer Open Pit mine and adjacent to known deposits on adjacent Vale and Glencore properties

Page 13: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

TWISTED WRENCH TARGET - WISNER PROPERTIES - LONMIN

13

Twisted Wrench Zone:• Discovered 2014

• 8.12 g/t Pt+Pd+Au and 0.96% Cu over 2.43 metre channel

• Drill intersections

• Open to the northwest & to depth

• Follow-up mechanical stripping & drilling underway

Page 14: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

SOUTHWEST ZONE TARGET - WISNER PROPERTIES - LONMIN

14

Southwest Zone Highlights:• High grade Cu-PGE occurrences over

+600 metre long trend above 120

metres depth

• Includes 26.60 g/t Pt+Pd+Au, 2.35 %

Cu over 0.50 metres in WIS-078

• 2014 drilling 7.24 g/t Pt+Pd+Au, 1.55

% Cu over 1.99m in WIS-168

• Trend is open to the west, to the

north, and to depth

• Follow-up drilling planned in 2015

Page 15: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

NEAR-PIT BROKEN HAMMER EXTENSIONS -WISNER PROPERTIES - LONMIN

15

Near-Pit Broken Hammer

Highlights:• Open Cu-PGE structures extending

west, northwest, northeast and

east from Broken Hammer ore

zone and open to depth

• 2014 drilling traced narrow high

grade structure extending east and

open to depth

• 10.79 g/t Pt+Pd+Au and 5.46 % Cu

over 0.48 metres in a broader

mineralized zone in WIS-136

• Follow-up drilling planned in 2015

Page 16: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

WINDY LAKE PROPERTY –SUDBURY CAMP JOINT VENTURE - LONMIN

16

• $1.8M Lonmin Funding from October 2013 to September 2014

• $2.0M Lonmin Commitment for October 2014 to September 2015

• Focus: Windy Lake Embayment Contact Style Massive Sulfide Ni-Cu-PGE Targets

• Surface EM Geophysics and Drilling Planned for January 2015

Page 17: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

NORTH RANGE PROPERTIES - LONMIN

17

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

• $1.0 Lonmin Commitment for October 2014 to September 2015.

• 13 Early Stage Projects

• 50+ kms favourable structures, 28 short drill holes to date

• Fieldwork Underway

• Geophysics and Drilling Planned for January 2015

2014 Drilling on the Lonmin Joint Ventures

Page 18: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

18

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)

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.

PARKIN PROPERTY

Page 19: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

19

WALLBRIDGE 2005 - SPIN-OUT7.4% EQUITY INTEREST- DULUTH METALS

• Owns 60% of Twin Metals Joint Venture in Minnesota with Chilean copper producer

Antofagasta plc. owning 40%

• Large copper-nickel-PGE resource

• Recently completed Pre-Feasibility Study on a 30-year underground mine plan with an

average production rate of 50,000 short tons (st) per day, producing copper and nickel

concentrates

• Over planned 30 years of operation, the PFS Technical Report estimates the mine will

produce approximately 5.8 billion pounds of copper, 1.2 billion pounds of nickel, 1.5

million ounces of platinum, 4.0 million ounces of palladium, 1.0 million ounces of gold,

and 25.2 million ounces of silver.

• Low C1 cu cash cost of $0.31/lb (net of byproduct credits) over the first 10 years of

production and 30 year Copper (C1) cash cost of $0.76/lb (net of byproduct credits).

• Strong 30 year Onsite Operating Margin of $36.54/short ton.

• Pre-tax base case, shows a net present value ("NPV") of CDN $1.5billion @8% discount

factor, CDN $0.9 billion @8% discount factor after tax.

Page 20: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

20

WALLBRIDGE 2010 SPIN-OUT40.5% EQUITY INTEREST- MIOCENE METALS

Porphyry Cu-Au-Mo projects in SW BC

Rogers Creek and MacKenzie: Cu, Au

Salal: Moly

Early stage exploration has defined large copper-gold systems on Rogers Creek and MacKenzie and confirmed 15km trend of molybdenum occurrences on Salal

MIOCENE-CARUBE RESOURCES RTO

Wallbridge will own 13% of merged company Carube Copper Corp., a TSXV listed company

Six copper-gold exploration licences in Jamaica

Joint Venture in place with OZ Minerals (OZL:ASX) (OZ),

• OZ invested $960 K of equity capital into Carube

• JV terms provide for up to $28.9M of staged joint venture funding on Carube’s Jamaican properties over 5 to 6 years , assuming OZ exercises all of its options.

Exploration underway on Bellas Gate Joint Venture

• Initial 3 holes have all intersected mineralization– 260.0 metres of 0.44% copper (“Cu”) and 0.19 grams gold per tonne (“g

Au/t”) in hole CON14-001, including 107.0 metres of 0.59% Cu and 0.34 g Au/t;

– 112.0 metres of 0.48% Cu and 0.33 g Au/t in hole CON14-002, including 59.0 metres of 0.55% Cu and 0.49gAu/t; and,

– 297.0 metres of 0.40% copper (“Cu”) and 0.24 grams gold per tonne (“g Au/t”) in hole CON14-003, including 55 metres of 0.67% Cu and 0.59 g Au/t or 1.01% CuEq from 86 to 141 metres;

Shareholder approval received for RTO

Financing required for RTO nearing completion

Page 21: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

21

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 22: Producing and Exploring in Sudbury,€¦ · CORE ASSETS 4 • Producing at Broken Hammer • $5.4M Partner Funded Exploration in 2014 • $5.5M Partner Funded Exploration in 2015

FOR FURTHER INFORMATION

Linda Zubal, VP, Corporate Communications705-682-9297, ext. [email protected]

SHARE STRUCTURE

Issued & Outstanding 167.2 M

Options 19.1 M

Warrants & Compensation Options 7.5 M

RSU’s & DSU’s 2.5 M

Fully Diluted 196.3 M