3-RSC_Power Point

TSX: RSC
Frankfurt: RF9
MATOUSH EXCEPTIONAL
URANIUM PROJECT
Chibougamau, May 31, 2011
TSX: RSC
Frankfurt: RF9
Forward Looking Statements
This presentation contains certain “Forward Looking Statements”, including but not
limited to statements regarding the Company’s overall objectives and strategic
plans, work programs, exploration budgets and targets and mineral resources
estimates. Forward Looking Statements express, at the date of this presentation, the
Company’s plans, expectations, estimates and beliefs as to future events or results.
Forward Looking Statements involve a number of risks, many of which are beyond
the Company’s control, and there can be no assurance that such statements will
prove to be accurate. Therefore, actual results and future events could differ
materially from those anticipated in such statements. Risks and uncertainties that
could cause results or future events to differ materially from current expectations
expressed or implied by the Forward Looking Statements include, but are not
limited to, factors associated with fluctuations in the market price of precious
metals, mining industry risks and hazards, uncertainty as to estimation of mining
resources and other risks related to the activities of the mining industry. The reader
is cautioned not to place undue reliance on these forward looking statements.
2
TSX: RSC
Frankfurt: RF9
Highlights
1.
QUALIFIED MANAGEMENT
•
One of the 4 companies in Canada which have been qualified by the CNSC
2.
MATOUSH HAS ONE OF THE HIGHEST URANIUM GRADES
OUTSIDE ATHABASCA
•
Grade is King in mining
EXPLORATION POTENTIAL – OBJECTIVE TO REACH + 60M POUNDS
•
Major drilling program – 120,000 meters
3.
3
TSX: RSC
Frankfurt: RF9
Corporate Overview
Recent Share Price
$0. 60
Market Capitalization
$84 million
Options
4.8 million
Warrants
14.8 million
Management Ownership
5%
Shares Outstanding
140 million
Convertible notes:
Unsecured and bearing no interest
15.7 million
52 Weeks High / Low
$1.34 / 0.39
Working Capital
$11 million
(price $1.00 - $1.05)
4
TSX: RSC
Frankfurt: RF9
ORGANIZATIONAL CHART
Guy HÉBERT
President
Paul EINARSON
Vice President Finances
Pierre H. TERREAULT
Operations & Engineering Vice President
Simon BERCIER
Translator
Éliane CHOQUETTE
Administrative Assistant
Mélanie GÉLINAS
Purchasing clerk
Donald JOANISSE
Logistics Coordinator
Jérôme VEILLEUX
Mining Technician –
Computer Graphic Designer
Nathalie JODOIN
Administrative Assistant
Receptionist
Maude HÉBERT
Public Affairs Analyst
Mélanie SWEENEY
Accountant
Patrick LACHANCE
Technical Buyer
Patrick RIVARD
Mining Technician - Drafter
Lisette LECOURTOIS BÉRUBÉ
Chief Accountant
Maria ABARZUA
Senior Accounting Clerk
Environnement Technician
Gabriel R. MAURICE
Human Resources, Health and
Safety Director
Executive & Exploration Vice President
Operations and Engineering
Caroline HARDY
Environment Department Director
Magaly Harvey
Anne HÉBERT
Legal Advisor
Jean-Pierre LACHANCE
Jonathan LAFONTAINE
Mona BAKER
Chief Geologist
Assistant Chief Geologist
Jean-Michel BELLEY
Junior Geologist
Martin AUCOIN
Project Geologist
Crystal MAHER
Junior Geologist
Pascal SIMARD
Junior Geologist
Francis GAUDREAU
Technician
Patrick LANDRY
Senior Technician
Luc LAPOINTE
Occupational Health
Coordinator
Marc TREMBLAY
Technician
Daniel BERGERON
Community Relations
Manager
Mining Engineer - Project
Éric GAGNON
Supervisor
Infrastructure Construction
Julie BOLDUC
Occupational Health
Coordinator
Bruno Junior TREMBLAY
Supervisor
Infrastructure Construction
Paulin SAVARD
Logistics Coordinator
Maxime CHARTIER
Intern – Civil Engineering
Patrick SIMARD
Information Technology
Coordinator
Sébastien D’AMBOISE
Computer and Electronic
Equipment Technician
5
TSX: RSC
Frankfurt: RF9
URANIUM MARKET DEVELOPMENT
• There are now over 440 commercial
nuclear power reactors operating in
30 countries.
• Over 60 further nuclear power
reactors are under construction.
• Over 150 are firmly planned.
Source: World Nuclear Association, 2011.
6
TSX: RSC
Frankfurt: RF9
STOCK AND URANIUM PRICE CHARTS
7
TSX: RSC
Frankfurt: RF9
8
TSX: RSC
Frankfurt: RF9
Access Road
9
TSX: RSC
Frankfurt: RF9
The Matoush Project: Overview
Advanced exploration project
Originally discovered in 1980’s by Uranerz
Drilling (1 to 4 rigs) active and turning since early 2006
• Major Drilling, operates one of the largest drilling fleets in the world
Over 200,000m drilled, logged, and stored on site
• Core storage area expanded in successive steps
Over 475 DDH completed on the property
• Including over 65 exploration holes completed on adjacent properties
Over 40,000 man-days completed on the project
• Including Strateco’s staff and contractors
Current camp site constructed in 2007 to replace 2006 prospector
style camp.
• 2006 camp remains the core logging and storage facility
• Camp expansion completed in winter 2010
• New office to be opened this year 2011
Access to project limited
• Airstrip located approx. 6km south inaugurated Fall 2010
• Winter road pushed onto the site since 2007
10
TSX: RSC
Frankfurt: RF9
Located in the Western Otish
Basin
Project over relatively undisturbed
archean crust
• Sub-horizontal sedimentary
contacts (minor S to SE dip)
• Crust composed of felsic
batholith and greenstone belts
Located between Beaver Lake and
Camie River uranium showings
Drill-tested Matoush Fault extends
approx 14km
• Consistent strike and dip ± 10°
11
TSX: RSC
Frankfurt: RF9
Deposit-Scale Geology: Stratigraphy
Repetitive stacking sequence alternating two
relatively homogenous, laterally extensive facies:
Channel-Bar Facies (CBF)
ACF1
– Subarkosic sandstone, fine-to-medium grained,
significant silt and clay content and rare pebbles
– CBF1 to 3
CBF1
ACF2
CBF2
Active Channel Facies (ACF)
– Arkosic to subarkosic, medium-to-coarse grained,
locally conglomeritic, very high pebble (φ>2 cm) content
with rarely noted sedimentary beds
– ACF1 to 4
– ACF4 is thickest (approx. 400m)
•
•
subdivided into ACF4A through ACF4E
Subdivisions based mostly based on proportion of fine-grained
beds intercalated between coarse-grained benches
ACF4
ACF3
CBF3
a
b
c
d
e
12
TSX: RSC
Frankfurt: RF9
Deposit-Scale Geology: Faults & Intrusions
Matoush Fault is the main controlling
structure
–
Brittle strike slip fault
•
•
•
•
–
North-trending strike
•
–
N007 ° in the main mineralized area
Sub-vertical dip
•
–
A priori senestral offset
Local normal offset
Local ductile deformation
Local tectonic Breccia
85° to the E in main mineralized area
Drilled over approx. length of 14 km
Injected Mafic Intrusive unit localized in
the open feature
–
Variably altered
Nature of the intrusive under debate
–
Generally gabbroic in nature with local
lamprophyric characteristics
•
•
–
Xenocrysts
Geochemical values
Altered portions of the intrusive spatially
associated with mineralized lenses
Local micro-shearing can be associated
with mineralization
13
TSX: RSC
Frankfurt: RF9
Summary Geological Characteristics
Mineralization
Relatively clean hydrothermal uranium deposit
• Abence of notable arsenides and sulphides
• Pitchblende (UO2) as major U-bearing phase
• No added value commodities
Three main identifyable alteration assemblages
Fuchsite-Chlorite-Muscovite assemblage
Iron Oxide and Iron Hydroxide Assemblage
Tourmaline and Cr-bearing tourmaline
Structurally-controlled by the Matoush Fault
Strong empirical relationship to mafic dyke
intruded in the Matoush Fault
Specifically related to alteration of the mafic
dyke
High grade zones are present where the Matoush
Fault intercepts ACF sedimentary units
Sedimentary units represent likely fluid flow
channels
Presence of S-plunging high-grade ore shoots in
the main lenses. Other lenses do not appear to have
the same structural control and are significantly less
interesting.
14
TSX: RSC
Frankfurt: RF9
MATOUSH MINERAL RESOURCES
Tonnes (x 1,000)
INDICATED
Grade (% U3O8)
Pounds U3O8 (x 1,000)
AM-15
262
0.70
4,039
MT-34
174
0.89
3,420
436
0.78
7,458
AM-15
33
0.34
249
MT-22
822
0.53
9,526
MT-34
302
0.45
3,003
TOTAL INFERRED
1,157
0.50
12,777
TOTAL INDICATED
INFERRED
Notes :
September 2009.
Scott Wilson RPA
1.CIM Definition Standards have been followed for classification of Mineral Resources.
2.The cut-off grade of 0.1% U3O8 was estimated using a U3O8 price of US$75/lb and assumed operating costs.
3.High U3O8 grades were cut to 9%.
4.The Mineral Resource estimate uses drill hole data available as of September 1, 2009.
5.Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
6.Totals may not sum correctly due to rounding.
15
TSX: RSC
Frankfurt: RF9
MATOUSH LONGITUDINAL SECTION
16
TSX: RSC
Frankfurt: RF9
Schematic Longitudinal View
17
SCOPING STUDY
TSX: RSC
Frankfurt: RF9
Year 7
Year 6
Year 5
Year 4
FEBRUARY 2010
Mill Feed (x 1,000) Tonnes
Grade % U3O8
Recovered Metal 97.6% (x 1,000 pounds) U3O8
1,648.6
0.501
17,775
TOTAL
2.
Year 3
( 4,00
x
3,00
1
, 2,00
0 1,00
0
0,00
0
Year 2
ORE PRODUCTION AND RECOVERED METAL
Year 1
1.
REVENUE
The price scenario was established by SD Energy with a
long term price from US $60.00 to US $90.00 per pound
U3O8 over the life of the project with an evaluation price
of US $75.00 per pound U3O8.
The exchange rate US$/CAN$ is 0.85.
Transport to smelter in North America is $0.10 per pound.
(X 1,000) CAN$
Gross Revenue
Transport to smelter
Royalty
NSR Gross Revenue after the Royalty
1,568,363
1,777
31,332
1,535,253
Royalty 2%.
18
SCOPING STUDY
TSX: RSC
Frankfurt: RF9
3.
OPERATING COSTS
Mining
$91.64/T milled
Maintenance
$24.86/T milled
Process
$92.74/T milled
Site services
$32.68/T milled
Power (generators)
$35.77/T milled
G&A
$22.43/T milled
Average Operating Cost: $300.12/T milled
CAN$27.84/pound
4.
US$23.66/pound
OPERATING PROFIT
Year 7
Year 6
Year 5
Year 4
Year 3
Year 2
(X1, 150,00
000 100,00
)
50,00
CA
0,00
N$
Year 1
200,00
Total Operating Profit: CAN$ 1,040,484,000
• The scoping study is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will
be realized.
• *Mineral resources that are not mineral reserves do not have demonstrated economic viability.
19
SCOPING STUDY
TSX: RSC
Frankfurt: RF9
5.
CAPITAL COSTS
(x 1,000 CAN$)
(x 1,000 CAN$)
Direct Capital Costs
191,009
Mine
32,466
Process
143,146
Infrastructure
15,398
Indirect Capital Costs
48,568
Contingency
52,273
Capital Spare
980
Before Start Up
292,830
Sustaining Capital (6 years)
19,126
Closure
30,000
Mine Life Capital Costs
341,955
NET PRESENT VALUE (NPV) Before Tax
6.
FINANCIAL
Internal Rate of Return
Before Tax: 41.5%
Discount Rate %
(x 1,000 CAN$)
5
475,550
8
377,640
10
323,530
15
218,070
20
TSX: RSC
Frankfurt: RF9
SENSITIVITY 10% Discount Rate
Grade
% U3O8
NPV
Opex
Millions
NPV
$
494,800 $
323,530
0.80
$
395,800 $
380,480
235,990
0.90
$
445,300 $
352,000
0.501% $
323,530
1.00
$
494,800 $
323,530
1.10
0.551% $
411,060
1.10
$
544,200 $
295,050
1.20
0.601% $
498,600
1.20
$
593,700 $
266,580
0.501 % $
323,530
0.80
0.401% $
148,460
0.90
0.451% $
1.00
Price
US$/lb
NPV
Capex
Millions
NPV
$
342,000 $
323,530
0.80
$
273,600 $
376,950
148,260
0.90
$
307,800 $
350,240
$
323,530
1.00
$
342,000 $
323,530
80.00
$
381,890
1.10
$
376,200 $
296,820
85.50
$
446,220
1.20
$
410,300 $
270,110
75.00
$
323,530
0.67
50.00
$
31,700
O.80
60.00
$
1.00
75.00
1.07
1.14
21
TSX: RSC
Frankfurt: RF9
PROPOSED RAMP DESIGN
22
TSX: RSC
Frankfurt: RF9
SURFACE FACILITIES
23
TSX: RSC
Frankfurt: RF9
PROJECT
SCHEDULE
Strateco Resources Inc.
2009 — 2015 Project Schedule
Description
Exploration/Geology
Management &
Studies
Activities
Matoush Project
2009
2010
2011
2012
2013
2014
2015
H1 H2 H1 H2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Surface Drilling
Geological Modeling &
Resource Estimation
Underground Drilling
Rev.
Rev.
Rev.
Rev.
Rev.
Project Description
Exploration Ramp Design
Scoping Study
Permitting
Rev.
Exploration Ramp
Construction & Production
Feasability Study
Exploration Ramp
Infrastructure
Access Road
Surface Installations
Development &
Construction
Portal and Exploration Ramp
Lateral Development
Production Ramp
Infrastructure Construction
Process Mill Construction
Production
Commissioning & Start-Up
Q: Quarter
H: Half
24
TSX: RSC
Frankfurt: RF9
LIST OF ENVIRONMENTAL
STUDIES & PROGRAMS
LIST OF HEALTH & SAFETY
DOCUMENTS
25
TSX: RSC
Frankfurt: RF9
Matoush Project
Interesting Economic Benefits
The Matoush project will generate major
economic benefits for the region as well as on a
provincial and national scale. An investment in the
range of $60M is planned for the underground
exploration phase, and of $300M in the event of an
exploitation phase. These funds will generate
important economic benefits that will be felt over a
long period of time.
As previously stated, funding for the realization
of the Matoush project will enable the hiring of 180
persons for the underground exploration phase
and around 300 persons for an eventual
exploitation phase. People coming from the region
will hold several stations because of their
competence and proximity.
26
TSX: RSC
Frankfurt: RF9
TO BE SUCCESSFUL IN ANY INVESTMENT
1. STRONG MANAGEMENT
2. EXCELLENT PROJECT
3. AGGRESSIVE INVESTOR
RELATIONS PROGRAM
THIS IS STRATECO RESOURCES (RSC)
27
TSX: RSC
Frankfurt: RF9
Website:
E-Mail:
www.stratecoinc.com
[email protected]
Toll Free: 1-866-774-7722
Telephone: 1-450-641-0775
Fax:
1-450-641-1601
Address:
1225 Gay-Lussac Street
Boucherville, Quebec J4B 7K1
CANADA