Please disable any adblockers if the video is not showing below.

Alaska Energy Metals

View Company Profile

September 18, 2024 at 11:10 AM (MDT)|Broadmoor Hotel & Resort

Gregory Beischer

CEO & President

Mr Beischer is a seasoned explorationist with a solid track record of success, previously with Inco Ltd., and the Bristol Bay Native Corporation. He is a geologist and mining engineering technologist having graduated from Laurentian University (1987), Sudbury, Ontario, and the Haileybury School of Mines (1981), Haileybury, Ontario. Mr Beischer is a certified professional geologist (#10505) with the American Institute of Professional Geologists. Mr. Beischer is the past President of the Alaska Miner's Association and serves on the Alaska Minerals Commission.

This is an automatically generated transcript. Denver Gold Group cannot accept responsibility for mistakes, errors, omissions, or any action taken in reliance thereon. Use of this transcript is governed by Denver Gold Group’s Terms of Use.

Story that's certainly developing well in a great jurisdiction, Greg, welcome. Thanks very much, Tim. Right. Thanks everybody. And we've got a nice picture here, a picture of the, the tundra in Alaska. And e even though our company is quite young, I have a long history o on that piece of ground. I was originally in my early career, a geologist with Inco, the biggest nickel mining company in the world at the time and they sent me to Alaska to look at this exact spot for nickel. And the reason they wanted me to go there was that from a high level. The geology here in Alaska is very similar to the geology of the Norilsk area of rock, which is a place that has the largest accumulation of nickel anywhere on earth, even bigger than the fantastic nickel mining camp in Sudbury, Ontario where Inco came from. So in 1995 as a young man, I went here and we did all the right geophysical and geochemical surveys and we drilled and while darned if we didn't find nickel, but it wasn't really rich. but I drilled hundreds of meters of disseminated nickel sulfide. It seemed like everywhere we drilled, we get the smoke, but we didn't get the fire but are a lot different now than in the 19 nineties. Nickel is going to come into huge demand. It already is and it is going to be worth a lot more. And so this disseminated nickel sulfide that I discovered way back in the 19 nineties, late nineties is now potentially a valuable ore deposit. So there's we're just getting started. The company is a year and a half old. But there's a lot of things that can make the share price go up. We could discover the high grade we've been looking for, but we've made a deposit that contains over 8 billion pounds of nickel already and it can get much, much bigger. So there's a lot of things that can make our share price increase. The demand for nickel really is going to increase. Nickel's main use has always been for stainless steel. There's lots of aerospace and defense applications, but now a whole new use in electric vehicle batteries, they call them lithium ion batteries. But the reality is there's five times more nickel in that battery than there is lithium by weight. And as a geologist, I can tell you that nickel is a lot more difficult to find than, than lithium. So I think the nickel will be the choke point in electric vehicle adoption. So the demand is projected to be huge over the coming decades. And you would think that in the face of that demand, that the price of nickel would be rising rapidly, but it's not, it's actually down low. And what's happened is Indonesia Ha with help from China has really ramped up production of laterate nickel depressing the price. They can't keep that up forever. And so I'm confident that the price of nickel will come back in the coming years. But that's what's happening now. And the unfortunate part is that the nickel being produced, there is really tough on the environment. It takes a lot of power to separate the nickel from the rock and they generate the power by burning coal. So it's really counterproductive to the idea of all of us driving electric vehicles to prevent carbon from going in the atmosphere. But the projections for nickel demand really are intense. And I think that the US government is starting to realize how vulnerable the country is. All those metals shown on the red dots are ones where supply could get cut off really rather easily and it would really hurt the country. But they are metals that are very important to expansion into electric energy. And so you'll see nickel and lithium right at the the upper portion of that graph. And so having a large nickel deposit with other critical and strategic battles on us. Soil, secure domestic supply. I think it is a very good thing to have. I've got a great team. Most of us are Alaskans. We know the lay of the land. We've been together for quite a while and we know how to execute a great exploration program efficiently. And I've got a great group behind me for finance. but also we'll be very ready to go into the permitting process. Corey Fhe was the mine permit for the state of Alaska. She was the Commissioner of Natural Resources Mark Begich, who I first met 20 years ago was the mayor of Anchorage. He went on to become one of our senators representing Alaska in Washington DC and he knows public policy and knows how he's been a champion for resource projects and he knows how to get them across the finish line. One thing we've done too is applied for a rather large grant through the US Department of Defense. We've got consultants helping us with that effort and I think we have an excellent chance. We've proposed a $56 million project. It would be a 5050 cost share. It would get us all the way through to the point where we have we're ready to apply for permits with a full blown feasibility study. So I think we have an excellent chance of getting that grant and it would of course be transformative for the company. We've got 100 and 53 million shares outstanding right now. It's been a year and a half. We're trading presently around 20 cents. We're well, well capitalized at the moment, The share price has gone down as you can see. despite the great success we've had building the, the resource and it's really just the, the nickel narrative and the fact that nickel price has gone down. So if you're a contrarian, this is a great time to buy shares in our company. Mm The projects in a great location just south of the city of Fairbanks very close to paved highways. Power is not far away nor is rail. and the port of Valdez is off to the south of the project. Two claim blocks comprise the project. You can see the village of Delta Junction at the north end of the slide. The claim blocks are are about 80 kilometers to the south. The Eureka block is where we've established this very large Nickel deposit and Canwell where we have prospects of exceptionally high grade nickel sulfide mineralization zooming in a bit further. You can see that the Canwell block is right beside the paved highway. There's trails that access the land, there's a road almost to the Eureka Deposit. We just need to extend it a little way and build a bridge across the river and that'll come in in the next couple of years. So here's a picture that shows our first resource calculation. And it was a pretty remarkable achievement for just one year of work. The black outline represents a conceptual pit. The resource was calculated by independent company Consultancy, STECH. The colors within the pit represent the concentration of mineralization and the pink and purples and reds are the higher grade mineralization. And so you can see that there's a core of higher grade mineralization. Now, this is not overall a high grade deposit. The average grade is around 0.27 to 0.29% nickel equivalent. That's the value of the nickel plus the value of the copper, Cobalt platinum and palladium combined. But between indicated resource and inferred, I'm not supposed to add those two categories together. So you'll have to do it yourself, but it's 3.9 billion pounds of nickel in the indicated category and 4.2 billion pounds in the inferred category. And so if you add it up, it's over 8 billion pounds of nickel documented in the ground in this resource. So it's quite large with this pit that's shown it would take probably in excess of 30 years to excavate that much material. So it's already quite a large deposit and therefore should be of interest to some of the bigger mining companies in the world. I'm gonna show you a cross section right through the middle of the deposit a to a prime. You can see the surface of the earth. You can see the sort of triangular conceptual pit outlined in black and notice that the deposit is dipping perfectly at 45 degrees. That means we would have a very low strip ratio. You can see that after all that materials excavated in that black triangle, the white material is waste rock that would have to be removed. That would mean after 30 or so years of mining, the ratio of waste to ore would be 1.5 to 1. But you can imagine that in the early decade of mining, it would be a 200 m deep pit situated fully in ore and therefore a zero strip ratio. So it's a a very nicely configured pit and that's a thick deposit that colored area, there is 300 m true width with a higher grade core represented by the pink and purple and red. And it's just a very simple deposit. It it's just like a layer cake, higher grade core, lower grade on the outside, just a layer cake that's easily traceable for kilometers across our our property. It's quite simple to drill, simple to model. We only have to drill every 300 m in order to get a an inferred category resource so we can build tonnage very, very quickly. However, I don't think that we will try too hard to build the deposit much bigger. What we're gonna do is to really focus on the higher grade portion of the deposit to come up with a higher grade resource before we go into economic calculations. And also very importantly to feed into those economics are the metal recovery rates. This is what the deposit looks like in drill core. It's a dark fine grained ultra mafic rock with dissemination of nickel and copper sulfide, lightly sprinkled throughout the core. Mm mm. But what we do know and we're starting all that bench scale metal recovery testing right now. But what we do know is that most of the nickel is in the form of the common nickel sulfide mineral Pentland and therefore readily recoverable by standard flotation methods. So our recovery should be pretty good. We'll know better by the end of this year, what they are and that will be very important information to know. Of course. So our plan right now is pretty simple. You can see two black dots there with arrows on them. These are drill holes that we've just completed. We're drilling two more just a bit further to the southeast and you, we're, we're almost positive that we'll be able to very substantially expand that higher grade portion of the deposit, the pinks and purples and reds will extend off to the southeast. And I can say that very, very confidently because we've got two historical holes that you can see plotted there that went part way into the zone of mineralization. And we have surface samples of higher grade mineralization. And so we'll finish drilling by the end of this month. that will allow us to add three or four new holes with the two prior existing historic holes. And I suspect when we're recalculate our resource by next January, it will be a bigger deposit, but it also will have a higher grade. And where does that put us in? the array of companies that are exploring similar deposits. These seven companies all have deposits in North America that are similar to ours in that they are large volume bulk tonnage deposits of disseminated nickel. The taller bars represent the total contained metal nick and stated as nickel equivalent. the lighter shorter light blue bars are just the nickel component of each deposit. And the red dot indicates the concentration of metals in the ground. So you can see our eureka deposit third from your right is growing pretty fast for one year of work, but I suspect that by the end of this year, we'll move all the way over to the left right beside Canada Nichols Crawford deposit that's a very good pure comparison for us. They've got, a large disseminated nickel deposit. There's several years ahead of us. A full blown feasibility study completed at this 0.100 and $80 million market cap. Ours is a $32 million market cap. I think we're gonna catch up in terms,, and, and exceed Canada Nickel in terms of size of deposit. We're already in the top tier with grade. And I think after this summer's drilling, we will be the highest grade amongst the peers. And I think then that our market cap will start to catch up. Canada Nichol has done a fantastic job of attracting investment from strategic partners, Anglo American jumped in early on that project. And then more recently, Agnico Eagle and Samsung. So Samsung came in because they wanted offtake Ge, they're building battery plants in North America. They want to be sure that they can get the raw materials. And so we will look forward to potentially getting strategic investments sometime in the, in the next 12 to 18 months on our Nikolai project Eureka deposit. I think these companies like Anglo and and Agnico have realized that the nickel industry is going to have to mine large tonnage bulk nickel deposits just like 60 years ago when we moved to mining porphyry copper deposits. Prior to that, it was just high grade veins and volcano genic rich deposits, but high grade nickel deposits are very difficult to find the last truly significant massive sulfide nickel deposit discovery was Boise's Bay. That's 30 years ago. So if the sudden there's a sudden surge in demand for nickel, we geologists can't just run out and find a whole bunch of high grade deposits to meet that demand. And so the industry will be forced to mine these bulk tonnage deposits. But I think like with poor free coppers, we're gonna find, we can actually make a lot of money with bulk tonnage, nickel deposits. And I think that the major mining companies have realized this too. And so they're starting to invest in relatively early stage exploration projects to give us support. But having said that grade is always king and there is still potential for us to find high grade mineralization on the Nikolai project on the Canwell block, which is situated right beside the Richardson Highway here in Alaska. There's quite a number of prospects at surface with exceptional grade that have seen very little drilling last year. We didn't drill, we took our time to do all the geophysical surveys. One would want to drill intelligently and some really compelling targets came out of that. This is a cross section. You can see the surface of the earth on the hillside there. The pink dots represent places where there's high grade nickel sulfide mineralization bright at surface and the bright pink and red colors represent electromagnetic conductors. Nickel sulfide conducts very, very well and, and shows up nicely on geophysical surveys. And Pentland is magnetic. We've got a coincident magnetic high on an electromagnetic conductor and nickel sulfide at surface. So that's a compelling target. We've drilled it, keep your eyes out for assays this fall. So everything's on schedule. We, we announced our first resource in March of this year, we're doing the mineralogical and metallurgical studies. Now, we've drilled again to expand the deposit and to test for high grade. We'll announce a new resource calculation in in January of this year which will catapult our project to being amongst the largest, amongst our peer group and the highest grade I mentioned that we have applied for government grants. We should know by the first quarter of 2025 whether we're making over, over the first hurdle and invited to submit a more detailed proposal. And that of course, would be transformative for the company. It would allow us to really accelerate our, our operations, get roads right into the deposit and do all the development drilling that we'd have to do. Mhm We do have a secondary project Nickel project in Quebec earlier stage a similar story and then it's an area I studied with Inco when I was stationed there 30 more than 30 years ago, now, early stage but some good targets are coming out and we'll be able to drill it next year. So, there really is a good chance that our share price will increase in the coming months as these various catalysts unfold. And so the nickel narrative is not good right now, but contrarian investor knows that's the time to buy stocks and that in the years to come, our share price should be much higher. That wraps it up. Thanks Tim Open for questions. Thank you very much, Greg. Yes, we do have some time for questions. Do we have one? Yes, microphone is on its way. Thank you. Greg, I agree with you. The bulk mineralization there is is quite low. I'm just wondering your idea of going in and picking out the high grade sections of it is, is the geology amenable to that, you know, are there domains of high grade in there that you can, you can eyeball, right? You'll recall my slide the colors representing the the grade and the the pinks and purplish colors and red are the higher grade portion. And so I think one next year when we begin to do our economic analysis, we will probably drop away the lower grade portions and base our economic studies just on the higher grade portions, which I believe we will also extend off to the southeast. So we'll have quite a large deposit of higher grade mineralization, but there's not in this deposit so far, discovered any exceptionally high grade pods that we could mine specifically on a small scale. First, it's an amazingly homogeneous deposit. We get almost the same result. Every time we drill through it, we move, move over 300 m. We still have a 300 m thick deposit and we still have the higher grade core and the the lower grade peripheries. So in some ways, it's good because it's so predictable and homogeneous and therefore should be attractive to major companies. But it would be nice to have some, some high grade pods there that could help with more rapid payback of capital because as you know, for large bulk tonnage projects like this, they are high Capex and the need to pay back that quick capital as quickly as possible is very important. Greg, one final question from me, where would the nearest refining capacity be for you? Yeah, there there is no nickel refining capacity in Alaska. And so we would, well no matter what we would build a mill to make a nickel concentrate and perhaps a secondary concentrate, we do have chromium and iron in the deposit of. Well, that's not even factored in yet, but I do know that for Canada nickel, the ferrochrome product ends up being quite valuable to them and helps the, the economics of that project. So we form a concentrate, but we'll be looking at what we do with that concentrate from then more typically, it would be spent sent to a smelter to make to purify pure nickel. But we will look at alternative methods such as hydro metallurgy. other more things that would allow us to produce actual nickel metal on site for use in America. Those are high Capex refineries too. And so we would have to have the deposit that would bear that kind of capital cost. But we will as things unfold, be looking at alternatives to shipping a concentrate away to an existing smelter. Super. Thank you. That's all we have time for Greg. Thank you very much and


NOTICE

The Denver Gold Group does not make any express or implied condition, representation, warranty or other term as to the accuracy, validity, reliability, timeliness or completeness of any information or materials in general or in connection with any particular use or purpose presented at the Gold Forum. Denver Gold Group cannot accept responsibility for sourcing variances, mistakes, errors or omissions or for any action taken in reliance thereon. Use of this data is governed by Denver Gold Group's Terms of Use.

The Denver Gold Group does not represent or endorse the accuracy or reliability of any third party advice, opinion, statement, information or materials received during the Gold Forum.

INVESTMENT ADVICE - NO OFFER OR RECOMMENDATION

The Gold Forum and the information and materials presented at the Gold Forum do not, and shall not be construed as, making any recommendation or providing any investment or other advice with respect to the purchase, sale or other disposition of any regulated gold related products or any other regulated products, securities or investments, including, without limitation, any advice to the effect that any gold related transaction is appropriate or suitable for any investment objective or financial situation of a prospective investor. A decision to invest in any regulated gold related products or any other regulated products, securities or investments should not be made in reliance on any of the information or materials presented or obtained during the Gold Forum. Before making any investment decision, prospective investors should seek advice from their financial, legal, tax and accounting advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.