Frontier Lithium
Investor Presentation
A Canadian Made Lithium Company
v. April 26, 2017
Always Moving Forward
Trading as FL on the TSX:V
Forward Looking Statement
Certain statements in this presentation may contain
“forward looking” statements that involve known
and unknown risks, uncertainties and other factors
that may cause the actual results, performance or
achievements of the Company or industry to be
materially different from any future results,
performance or achievements expressed or
implied by such forward looking statements.
It is uncertain if further work will in fact lead to
production of a mineral resource and of
lithium compounds.
Frontier has filed on SEDAR a NI-43-101 compliant
mineral resource estimate as of May 13, 2016.
All technical information should be reviewed
according to this resource estimate.
Aerial view of PAK Lithium project site.
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About Frontier Lithium
Frontier Lithium is a wholly Canadian company with
a tight share structure with management ownership
exceeding over 30% of the company.
The Company has adopted a two-staged growth
approach to exploration and development
in order to avoid unnecessary share dilution a strategic imperative for the Company.
Company leadership has decades of commercial
and technical experience in mining, milling
and hydrometallurgy with significant expertise in
lithium and tantalum concentrates and chemicals.
The Company maintains the largest market
capitalization for any Ontario based
lithium deposit.
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Market Facts
850,000
† as of April 7, 2017 (share price of $0.41)
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Lithium Applications
Lithium has both technical and chemical
applications. It’s the lightest of all metals; has the
highest electrochemical potential of all metals and
does not occur as a pure element in nature.
Technical Applications
•Glass
•Ceramics
•Induction cooktops
•Cookware
Chemical Applications
•Batteries
•Lubricants
•Aluminum Smelting
•Air Treatment
•Pharmaceuticals
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Global Lithium Consumption
Largest single use:
•Lithium-ion batteries
•Focus by majors to produce
lithium compounds
(corbonate, hydroxide etc.)
WORLD: ESTIMATED LITHIUM CONSUMPTION BY END-USE
WORLD: ESTIMATED LITHIUM CONSUMPTION BY END-USE
Lithium-Ion Batteries - 22%
Other - 22%
Highlights
Aluminum - 2%
Glass & Ceramics:
Pharmaceuticals - 2%
•2nd largest market
for lithium use
Polymers - 3%
•Technical-grade spodumene
Metallurgic - 4%
concentrates (low-iron) preferred over
lithium chemicals (carbonate)
Air Treatment - 4%
•Most spodumene (iron-rich)
cannot be used
Glass - 6%
Batteries:
•With hard rock supply, Inferior
(high iron) spodumene concentrates
need to be upgraded/lithium
removal to produce compounds
in battery use.
Glass-Ceramics - 9%
Ceramics - 15%
Grease - 11%
Source: Roskill 2014, Lithium Industry Report, Stormcrow, May 29, 2015
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Sources of Lithium
There a limited number of sources where lithium can be economically extracted.
BRINES
Solars of S. America and S. US.
Hard Rock Pegmatites whereby
Spodumene is the only relevant
commercial source given it’s higher
inherent lithia content.
SPODUMENE
PETALITE
HECTORITE
Have not been commercialized
LEPIDOLITE
Comparative Analysis of Lithium Minerals
Mineral Formula Spodumene
LiAlSiO6
Petalite
LiAlSi4O10
Lithium Content
Up to 8% Li20
Up to 4.9% Li20
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Lithium Supply and Demand
We believe that entering in the concentrate market is an obvious path to pursue the compounds market as producing
a consistent, reliable rare low-iron spodumene concentrate could be the pre-cursor to feeding a hydrometalurgical
(chemical plant) to produce compounds. The ability to feed with a clean spodumene concentrate would result in a less
complex, lower cost chemical plant.
Our deposit is a low-iron spodumene.
The Manitoba Tanco (ceased lithium operation in 2009) and Australian Greenbushes deposit has dominated mineral
supply demand for the last 30 years. Recent supply history behavior predicts that low-risk entrants to the lithium market
should contain low-iron spodumene to have the greatest level of probability for success.
•Base-case demand is
forecast to grow by 8.5%
per year through 2025
•100,000t of new lithium
carbonate equivalent (LCE)
needed by 2021
Source: Roskill 2016
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Milestones and Outlook for 2017
•Pre-Feasibility scheduled for completion Spring 2017
»» Environmental baseline work has commenced
»» Geotechnical, geomechanical and hydro-geological drilling completed
»» Metallurgical work in-progress
•Exploration Agreements have been signed with Deer Lake First Nation
and Sandy Lake First Nation
•With a positive pre-feasibility, Feasibility will commence in 2017
and target delivery early 2018
Pre-Feas Spring 2017
Frontier Lithium
at NWOPA
Come and visit our booth.
April 4, 5 and 6, 2017
Valhalla Inn, Thunder Bay
Further collaboration agreements
with neighboring First Nations
Feasibility commences (based on
positive pre-feasibility)
With a positive pre-feasibility,
Feasibility will commence in 2017
and target delivery early 2018
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Lithium Experts
Mike Tamlin, Metallurgist, Director
Former General Manager, Marketing for Sons of Gwalia (Talison Minerals),
former General Manager and Director of Galaxy China Ltd. Responsible for
establishing WFOE in China to produce 17,000t lithium carbonate capacity.
Lithium concentrate, lithium brine and compound experience.
Peter Vanstone, P.Geo, Independent Qualified Person (QP)
Over 30 years experience in the rare-metal field as an exploration and mine
geologist for the Tantalum Mining Corporation of Canada Ltd. (Tanco),
specializing in lithium, cesium, and tantalum exploration and production.
In 2008, he retired as Tanco’s Chief Geologist.
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Board of Directors
Rick Walker, Chairman
Ernie Marcotte, P.Eng. Director
John Kelly, P.Eng. , Director
Mike Koziol, P.Geo, P.Eng.,
Director
Owner of Consbec Inc. since 1975.
Consbec is the largest drilling and
blasting contractor in North America.
The Walker family has maintained
a 20% share of Frontier Lithium’s
outstanding shares.
Professional Engineer and a member
of the Canadian Institute of Mining
and Metallurgy. President of JGK
Mining Services since 1998. Vice
President of Mining, Ontario Division,
Inco Ltd. from 1991 to 1998.
Bob McLean, Director
Mr. McLean brings 35 years of mining
experience as a development &
production superintendent and
mine manager as well as 15 years of
experience in labour relations, safety
human resources management
and administration.
Professional Engineer with over 40
years of metallurgical and mining
experience. Former VP of North American
Palladium Ltd. and instrumental in initial
commissioning of mine and mill.
Mr. Koziol is a member of the Association of
Professional Geoscientists of Ontario (P. Geo.),
and the Association of Professional Engineers
of Ontario (P. Eng.) and is a member of the
Prospectors and Developers Association of
Canada. He currently serves as President of
Alto Ventures Ltd.
Bruce Barker, LLB, Director
Mr. Barker is a partner of Bennett Jones LLP, a
leading Canadian law firm. Mr. Barker practices
corporate law, with an emphasis on mergers
and acquisitions, banking and corporate
finance, and recently co-chaired the firm’s
Corporate Department.
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Executive Leadership Team
Trevor R. Walker, President & CEO
Formerly Vice President of the Consbec Group of Companies. 15 years of
open pit mining experience working with companiessuch as Rio Tinto,
Agrium, Unimin,Goldcorpand various others. The Walker family has
maintained a 20% share of Frontier Lithium’s outstanding shares.
Garth Drever, P.Eng, P.Geo, Vice President (Exploration)
Over 35 years of mineral exploration experience. A uranium exploration
expert who has worked on many uranium deposits worldwide specializing in
innovative technologies for detecting buried deposits. Former Senior Geologist
for Cameco Corporation.
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About the Deposit
•Located in premier mining jurisdiction of Ontario,
175 km north of Red Lake mining camp
•A rare, low-iron (<0.1% Fe2O3), high-purity technical
grade spodumene deposit, which is the mineral
that has monopolized global hard rock mineral
supply for the past 20 years
•8.2 million tonnes of what is the known highestgrade lithium deposit in North America that is
also one of the world’s few occurrences to
contain low iron and is outcropped at surface
•The deposit is analogous to recent world-class
deposits that have recently supplied over 90% of
the world’s mineral supply
(i.e. Greenbushes, Tanco)
•Currently 150km of adequate seasonal winter road
access to excellent infrastructure and skilled labour
•Strong relations with First Nation communities,
local and provincial governments
The Port of Thunder Bay is located at the head
of the Great Lakes/St. Lawrence Seaway System.
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2016 Resource Estimate Highlights
•Measured and Indicated mineral resource of 7.89 million
tonnes grading at 1.73% Li2O equivalent (eq)., including
6.87 million tonnes grading 1.96% Li2O eq. in high quality
technical grade lithium zones with a low inherent
iron spodumene
•Inferred mineral resource of 295,600 tonnes grading at 1.35%
Li2O (eq.), including 228,700 tonnes grading 1.69% Li2O eq.
in technical grade lithium zones with a low inherent
iron spodumene
BULK PEGMATITE
UIZ ZONE
•The Pakeagama Lake pegmatite has a 500m strike length with
an estimated true width varying from 10 to 125m with a
sub-vertical orientation of the pegmatite
•Resource remains open to depth and along strike to the
northwest and southeast
•Based on exploration costs, the PAK deposit exhibits a low
Measured and Indicated lithium acquisition cost
at $21.66/contained Li2O eq. tonne for exploration
The deposit hosts a UIZ zone at surface of 640,000 tonnes of 3.67% LiEq.
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Mineral Resource Estimate
PAK Lithium Project (Pakeagama Lake pegmatite deposit)
Source: http://www.frontierlithium.com/articles/2016/march-4-2016.php
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Staged-Approach
to Growth
The rare features of the deposit allow the Company
to undertake a staged approach to get us into
the global lithium market quicker while also
minimizing risk.
Our planned path into the global lithium market
realizes the best return on investment and involves
scaleable operations enabling Frontier to first
become a lithium producer, while allowing battery
market supply/demand fundamentals to become
more certain. Walk before you run approach.
Frontier’s “First path” leads to a “Long Term path,”
believing that mines build chemical plants and not
the other way around. Our development strategy is
based on the foundation of simple open pit surface
mining utilizing proven processing technologies
from similar world-class lithium operations.
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First Path:
Sell to industrial use market with option to sell to chemical plants.
This first path satisfies the demands of the ceramics/glass market representing 1/3 of the entire lithium market.
Ceramic/glass customers prefer to source technical-grade (low-iron) spodumene
concentrate in excess of 7% lithium oxide (Li2O), if available, to avoid inferior lower
grade petalite concentrates, or paying much higher prices for battery grade lithium
compounds that require capital intensive chemical plants for production.
Sell to Industrial Use Market
(Ceramic Glass)
Begin to supply rare, low-iron premium spodumene
concentrate for ceramic glass market. This means selling
it immediately for industrial uses by targeting US and
European industrial users of Lithium concentrate.
AND OPTION TO
Sell premium low iron
spodumene to chemical plant
Lithium Deposit
Mine
Mill to Produce
Concentrate
Possibly selling it to a chemical plant for further upgrading
to produce lithium compounds such as carbonate or
hydroxide required for lithium batteries.
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Long Term Path:
Sell to industrial use market. Become a global producer
of compounds in Ontario.
Invest in a chemical plant in Ontario that releases lithium from spodumene
concentrates and Ontario becomes a global supplier of compounds for the
lithium ion battery market.
Lithium Deposit
Mine
Mill to Produce
Concentrate
Sell to Industrial Use Market
(Ceramic Glass)
AND/OR
Sell to Chemical Plants
Invest in a chemical
(hydrometallurgical)
plant in Ontario
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Frontier’s approach addresses the
problem in the global supply chain
The global ceramic glass producers mineral concentrate supply
is under threat. A Chinese lithium grade battery compound
manufacturer controls Greenbushes mine where output of
spodumene concentrate has been transitioning from low-iron
technical grade to higher impurity chemical grade to support its
own increased manufacturing of compounds for the
battery market.
Our approach targets a niche market opportunity by
establishing a new supply of a low-iron spodumene product
for the production of rare technical grade lithium concentrates
for the ceramic glass market. Frontier could also sell to existing
lithium compound producers, with the added future possibility
to produce premium lithium compounds such as hydroxide
directly to the battery market.
Frontier believes that mines build chemical plants and not
the other way around. Entering in the concentrate market is
an obvious path to pursue the compounds market as producing
a consistent, reliable concentrate is the precursor to feeding
a hydrometallurgical (chemical plant) to produce lithium
compounds.
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Conclusion
2017 is the year of significant advancements for
Frontier Lithium and global markets are watching.
Frontier’s PAK Deposit is a rare, low-iron, high-purity
technical grade spodumene deposit. Ideal for low risk
entry into lithium market.
In contrast to fossil fuels, our Ontario lithium will be
used for sustainable energy applications - in ceramic
glass for electric stove tops, compounds required to
manufacture lithium ion batteries, and more.
It’s a green and clean deposit.
Our mission moving forward is to position the underutilized Thunder Bay port and power generation to
handle exporting concentrates; then, be the future
home of a chemical plant to supply the world with
clean, first-grade compounds for energy markets.
Undertaking a staged approach to get us into the
global lithium market quicker - we are a viable
lithium development in Canada given the
world-class composition of our deposit.
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Stay Informed
FrontierLithium.com
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Trevor R. Walker, m.b.a.
President & CEO
[email protected]
Joseph Mansourian
Manager, Communications + Investor Relations
[email protected]
General Office
2736 Belisle Drive
Val Caron, ON, Canada P3N 1B3
Tel. 705.897.7622
Fax. 705.897.7618