Olivut Resources Ltd. · TSXV:OLV
Olivut Resources — Investor Presentation (February 2017)
28 slides from Olivut Resources's investor presentation, February 2017
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Slide 2: Disclaimer
Disclaimer The information contained in this presentation is confidential and for internal use only. The contents are not to be reproduced or distributed to any third party, including the public or press. The information contained herein, while obtained from sources which we believe are reliable, is
Slide 3: Why Invest in Diamonds?
Why Invest in Diamonds? “The long term outlook for the diamond market remains positive.” Source: Bain & Co 2016 • Commodity with a superior supply demand profile over the next 10 years • Why? • Lack of recent discoveries • Long decline in production going forward • Growing consumption 3
Slide 4: Decreasing Production
Decreasing Production Supply in 2020 will not equal pre-financial crisis supply in 2005 Source: De Beers, Bain and Co 4
Slide 5: Limited New Mines Coming Online
Limited New Mines Coming Online Forecasted rough-diamond production of new mines, millions of carats, base scenario Forecast 25 Luaxe (Endiama/ALROSA) Star-Orion South (Shore Gold) 20 Renard (Stornoway) Gahcho Kué (Mountain Province/De Beers) Karpinsky-1 (ALROSA) 15 Ghaghoo (Gem Diamonds) Lace (Diam
Slide 6: Annual Global Diamond Production
Annual Global Diamond Production Rough-diamond supply, millions of carats, 2008-2030, base scenario Forecast 180 150 120 New Mines 90 Other Mines Smaller Players 60 Rio Tinto De Beers 30 ALROSA 0 2009 2011 2013 2015 2017F 2019F 2021F 2023F 2025F 2027F 2029F 2030F Note: Smaller players are Dominion D
Slide 7: Diamond Demand – Growth of the Middle Class
Diamond Demand – Growth of the Middle Class Source: Oxford Economics 7
Slide 8: Middle Class Households in China and India
Middle Class Households in China and India Chinese households by income, millions Indian households by income, millions CAGR CAGR (2015–2030) (2015–2030) Forecast 400 600 546 335 520 315 488 292 452 267 414 239 129 171 377 52 87 91 164 224 286 348 211 33 400 29 5% 8% 18 200 348 194 206 205 200 323 2
Slide 9: Diamond Engagement Ring Demand
Diamond Engagement Ring Demand Do you think that an engagement ring has to have a diamond? US China India 29% 30% 36% 25% No 33% 24% Yes 71% 67% 70% 64% 76% 75% Millennials Non-millennials Millennials Non-millennials Millennials Non-millennials “Millennials express strong desire for diamonds when th
Slide 10: Severe Supply Demand Gap
Severe Supply Demand Gap • Global rough-diamond demand to 2030 to grow at average annual rate of 2-5% • Global rough-diamond supply to 2030 to decline in value terms by 1-2% annually • Supply-demand balance tight in medium term, widening in 2019 Source: Bain & Co 10
Slide 11: Invest in the Diamond Sector
Invest in the Diamond Sector • Portfolio Diversification – prices do not correlate with performance of other investments • Liquid Markets • Market underpinned by solid core of stable, large cap, well known companies (e.g. De Beers, RTZ, Dominion Diamond) • Excellent supply/demand dynamics mid - long
Slide 12: Why Invest in Olivut?
Why Invest in Olivut? • Proven Management: • 29 new kimberlite discoveries in a new province • Numerous additional untested targets • High level of fiscal management • Excellent results for dollars spent • Expanding exploration opportunities in multiple focus areas • Excellent potential for Economic
Slide 13: HOAM Project Location
HOAM Project Location Region of Interest • ~ 40,000 ha 100% owned within Region of Interest • 450 km x 200 km region • 29 kimberlite discoveries to date • Excellent KIM chemistry indicative of diamond stability field sources 13
Slide 14: Land Mass Comparison With Slave Craton Mines
Land Mass Comparison With Slave Craton Mines 14
Slide 15: Producing and Advanced Canadian Properties
Producing and Advanced Canadian Properties Ekati – 7 producing pipes ( <1 - 11 ha) Deposit ~ # Pipes Mine Plan In Cluster Diavik – 3 producing pipes (<~2.5 ha) Ekati 156 7 Gahcho Kue - 3 pipes in mine plan (<2 ha) Diavik 70 3 Victor Pipe – 1 body (15 ha) Gahcho Kue 10 3 Renard – 3 pipes in mine plan
Slide 16: Excellent Geophysical Targets
Excellent Geophysical Targets • Numerous new priority targets • Many subtle anomalies correlate with magnetics of many producing pipes • Distinct, isolated, positive and negative magnetic features • Potential for large, high volume kimberlites • Near surface intrusives ~150 x125 m e.g.,<30m depth 16
Slide 17: Exceptional Geochemistry
Exceptional Geochemistry Olivut Regional Pyrope Chemistry • Very high percentage of diamond stability field indicator minerals, as well as some microdiamonds recovered • Diamond field indicator mineral source remains to be discovered 17
Slide 18: Recent Exploration Results
Recent Exploration Results • Detailed Helimag Program • 23 helimag blocks flown • 50m line spacing • 17 new confirmed moderate – high priority targets • Several additional very discreet, high interest drill targets • Completed the geophysical analysis of regional airborne database • Numerous new tar
Slide 19: Other Recent Work
Other Recent Work • Evaluation of new geophysical technology to ascertain target priority • Geophysical modelling • On-going evaluations of other exploration opportunities 19
Slide 20: Proposed Exploration Program
Proposed Exploration Program • Detailed helimag survey over recently identified regional targets • Finalize drill priority list • Drill priority targets 20
Slide 21: Purpose of Detailed Magnetic Surveys
Purpose of Detailed Magnetic Surveys • To upgrade or downgrade all targets selected from regional widely spaced surveys: • Additional detail confirms if a target is drill worthy or not • Reduces costs associated with drilling questionable targets 21
Slide 22: Helimag Results – downgraded target
Helimag Results – downgraded target Regional Detailed Airborne Helimag 22
Slide 23: Helimag Results – confirmed target
Helimag Results – confirmed target Regional Detailed Airborne Helimag 23
Slide 24: HOAM – Excellent Logistics
HOAM – Excellent Logistics • communities nearby – Ft. Simpson, Tulita, Wrigley, Deline • all weather roads - Mackenzie and Liard Highways • major pipeline cuts through or close to claims/permits • river transportation • favourable terrain • airport infrastructure • land based targets 24
Slide 25: HOAM Project
HOAM Project • Discovered 29 new kimberlites • Drill ready targets • Extremely encouraging results • Work is ongoing to advance Company 25
Slide 26: Capital Structure
Capital Structure MARKET CAP (Jan. 31, 2017 @ $0.15 /share) $6,142,000 CAPITAL STOCK: (as of Jan. 31, 2017) a) Issued – 40,946,672 common shares b) Stock Options – 3,462,500 from $0.11 - $1.40 LARGE SHAREHOLDERS: Pierre Lassonde approx. 17% Management/BOD approx. 7% 26
Slide 27: The People
The People Leni Keough P.Geo. President & CEO, Director & Founder Geologist, 25+ yrs experience Sharon Dowdall Chairman 35+ yrs legal experience in mining Ian Shaw CFO 35+ yrs financial experience in exploration sector Craig Reith CA, Director 35+ yrs financial experience in public sector Dr. Mal Mc
Slide 28: Summary
Summary • Developing a new kimberlite province • Exploring new region with extremely positive indications for diamond potential • Excellent, discrete targets – drill ready • Experienced management 28
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