International Lithium (subsidiary of TNR Gold Corp TNR:TSXV) presents at VEVA June 2010. Includes an overview of the lithium industry, Lithium 101 (what it's about), and great background information on how Lithium is produced.
3. What is Lithium?
• Lithium is a soft, silver-white metal
that belongs to the alkali metal
group of chemical elements. It is
represented by the symbol Li, and it
has the atomic number 3
• Highly Reactive
• Lightest of all Metals
• Least Dense Solid Element
• Highest Specific Heat Capacity
• High Electrochemical Potential
“The Miracle Element”
4. Applications of Lithium
Improves Melting Behaviour
of Aluminum Oxide
Air Aluminum
Conditioning Production 5% High Charge- and
6%
Power-to-Weight Ratio
Pharmaceutical
7%
Batteries
Higher 25%
Performance & Lubricating
Grease
Temperature 6%
Tolerance Wide Variety
Glass & of Other Uses
Ceramics 27%
Decreases Melting 18%
Point, Viscosity and 75% of Lithium
Energy Costs while Produced is for
Increasing Thermal Stability
Industrial Usage
5. World Demand for Lithium
Conversion of Lithium to Lithium Carbonate is 5:1 approximately
* Historic Demand sourced from Roskills 2009 Report
6. Lithium Demand Focus
Introduction of Electric Vehicles is Main Demand Driver
• 700 Million Cars Today
3 Billion Vehicles by 2050
(International Monetary Fund)
• 25 Models of Li-powered
cars by 2012
• 9.6 Million Electric
Vehicles by 2018
(JP Morgan)
Electric Vehicle Demand for Lithium
~70,000 Tonnes By 2020 (FMC)
ADDS UP TO A SUBSTANTIAL GROWTH RATE
* 0.6 kilos of Lithium Carbonate Per kWh (Industry Standard)
7. Electric / Hybrid Vehicle Technology
• Automobile makers are transitioning to high
performance hybrid / lithium-battery driven cars!
• BYD + Chinese Manufacturers
• Aptera
• Mitsubishi
• Nissan
• Opel
• Toyota
• Hyundai
• GM, BMW, Benz
8. China‟s Largest Car Market – EV Sales to Soar
• China is now world‟s largest car market at 13.6 million vehicles
sold in 2009, up nearly 45% 2008 data (US at 10.4M)
• Export brand sales 70%, Domestic brands increasing in numbers
• BYD (10% owned by Warren Buffet)
first hybrid in China travels 330km on one charge
• Projected 5% penetration by 2011+
which translates to nearly 750,000 EV
using about 15-30 lbs each
http://www.reuters.com/article/idUSTRE60722O20100108
http://news.yahoo.com/s/ap/20100510/ap_on_bi_ge/as_china_auto_sales
9. Asia‟s Phenomenal Electric Bike Growth
Growth of Electric Bikes 1998-2010
From Novelty to
10% penetration of
market, 120 million
bikes on road today
from few thousands
From $0 to $11
billion dollar industry,
selling at $1300-
3000 USD/each
Limitations of energy
costs and pollution
restrictions expected
to assist introduction
of EV cars into China http://www.nytimes.com/2010/02/
01/business/global/01ebike.html
10. Europe is Moving Ahead with EV Concept
• Europe is building EV support infrastructure
– Denmark adding $100 million on charging-ports, power grids,
battery-swap stations
– Better Place is running these grids based on power from wind
power, already supporting 20% of Denmarks‟ energy supply
– France spending $2 billion in Paris for grids and charge ports
• Nissan Leaf and Renault‟s hybrid/EV factories are in UK
http://www.thetruthaboutcars.com/denmark-ev-incentive-40k-and-a-parking-spot/
http://www.evworld.com/news.cfm?newsid=22979
11. Global Lithium ProductionDevelopment
Sources and Potential Sources for Lithium
1. Lithium Brines 2. Pegmatites
3. Clay Hectorite 4. Oilfield & Geothermal Brine
12. Lithium Carbonate Production (Annual)
Company Country Deposit Type Li2CO2 Eqvt
Talison Australia Spodumene 10,000 tonnes
SQM Chile Brine 32,600
Chemetall Chile Brine 13,000
Chemetall US Brine 3,000
FMC Chemical Argentina Brine 16,600
Qinghai CITIC China Brine 10,000
Various Others China Spodumene 15,000
TOTAL 100,200
tonnes per year
* 2014 projected demand at 163,000 (Reference: Byron Capital Markets)
13. Sources of Lithium - Brines
1. Lithium Brines
Predominantly Found in Salt Lakes
In the Form of Dissolved Salts
Ranging from 200-1500 mg/l Lithium
14. Lithium Brines Cont‟d
Accessed By Water Well
Pumped to Surface
Typically Concentrated By Solar Evaporation Ponds
Generally accompanied in Solution with other
compounds: boron, sodium chloride, sulfate, etc.
16. Brine Production Process & Costs Breakdown
Process Step Chemical / Driver Cost ($/tonne
Cost Li2CO3)
Remove Magnesium Slaked lime (Ca(OH)2) 180 (per unit Mg:Li)
pH adjustment Hydrochloric acid 20
(HCl)
Remove B/Sulphates Calcium Chloride 240
(CaCl2)
Convert to carbonate Soda ash (Na2CO3) 760
Plant Amortization N/A 1,067
Total 2,267 (at Mg:Li of 1:1)
Variable cost per 1,200 (at Mg:Li of 1:1)
tonne
Reference: Byron Capital Markets
17. Sources of Lithium - Pegmatites
2. Pegmatite Wall Rock
Coarse-Grained Granite
Intermediate
Occurs as Intrusive Dike
Can Be Strongly Zoned Core
Associated with Other Crystal Growth
Rare Elements
Intermediate
Layered
Wall Rock
Spodumene Pegmatite
18. Pegmatite Source Cont‟d
Deposit Grade Ranges 1-2% Lithium with Economics
Assisted with Other Rare Metals Present such as Cesium,
Tantalum, Rubidium, Niobium, etc.
Mined by Traditional Hard Rock Methods (Open Pit)
To process: Heat to 1,000 celsius, pulverize & dissolve with
sulfate and series of acid – finally mixed with soda ash
Giant Spodumene Crystal Greenbushes Open Pit Mine
19. Spodumene Production Cost Breakdown
Process Step Chemical / Driver Cost Cost ($/tonne Li2CO3)
Extract ore N/A <1,200
Spodumene N/A 500
Calcining Oil 230
Pulverizing N/A 100
Concentrate
Leaching Sulfuric Acid (H2SO4) 585
Washing Water 0
Convert to Carbonate Soda Ash (Na2CO3) 505
Plant Amortization N/A 3,333
Total <$6,453
Variable Cost/Tonne <$3,120
Reference: Byron Capital Markets
20. Estimated Cost of Lithium Production
Type Brine Spodumene
Variable cost
(tonne Lithium
Carbonate)
$1,200 $3,120
Includes all reagent
costs at Mg:Li of 1:1
Total
amortized cost $2,267 $6,453
(tonne LCE) before any
other credits. This
accounts for fixed costs
of plants and
operations
Reference: Byron Capital Markets
22. Demand vs. Supply
• Roskill and Byron expects 40% increase in demand by 2014
• Electric cars and automotive industry all reporting switch to
lithium-ion batteries – new standard emerging
• Majority of Production from Brines
• Brines Sources are not Static – Increase of Production has
the Possibility to Damage Aquifer
• Brines Cannot Quickly & Easily Respond to Demand Increase
• Hard Rock Mining still relatively expensive & time to start up
is years from resource identification
• Hectorite Clays – unproven but promising future source
24. Corporate Structure
TNR Gold Corp. Project
Unlocking TNR:TSXV Generator
The Value 3 Subsidiaries
Planned
Minera Solitario Bristol Exploration
Spin-off Target
of Lithium Argentina Projects Alaskan Projects
Completion
Subsidiary Cu-Au Au
Q2 2010
TNR Shareholders proposed dividend
International Lithium Corp up to 1 unit in ILC for every 4 shares of TNR
Li + REE TNR to maintain a minimum of 25% interest
in ILC
Opportunity to participate at early stage in tightly controlled company
Exposure to „Lithium and Rare Earth Elements‟ growth sector
Warrant provides potential future benefit at no additional cost
Continued investment in TNR a Lead Project Generator
25. Projected Structure - International Lithium Corp.
Corporate Data*
June 8, 2010 established Shares issued: 60 M
Fully diluted: 123 M
as the meeting date for
Cash: $ 2.5 M
shareholder approval of the Market Cap**: $ 15 M
spin-out of ILC TNR Ownership: 30%
Insider Ownership: 26%
Management and Directors
Gary Schellenberg, B.Sc. (Geol.) - Executive Chairman, CEO
Kirill Klip, MBA - Non-Executive Chairman
Mike Sieb, MBA , B.Sc (Geol.) – President and Director
Wayne Spilsbury, B.Sc, M.Sc - Director
Bernard Dewonk, B.Sc, P.Geo - Director
Jerry Bella, CGA – CFO * Subject to any increase resulting from
John Harrop, P.Geo - Chief Geologist further possible share issuances by
Dr. Frederick Breaks, P.Geo - Special Adviser TNR prior to the record date and
Thomas Currin – Special Adviser including the potential exercise of the
Jerry Huang, B.BA – VP Corporate Development Mariana property option.
** Estimate at listing
26. Expertise – Specialised Team
Ike Osmani, P. Geo, Chief Geologist John Harrop, P. Geo, Senior Geologist 26
27. Project Selection
9
Projects
Worldwide
Geographic
and
Commodity
Diverse
Actively Sourcing Additional Opportunities
And Strategic Partnerships 27
29. Mariana Project – Brine Sampling
Potential Low-Cost Source of Lithium
• 120 km2 covering entire salar
• 100% Option
• 2km sample grid – shallow pits
• Results Range 250-650 mg/L lithium
throughout main salar
• Current producers range from 150-1500
mg/L of Lithium
• Ability to rapidly advance project through
drill stage
29
30. Mariana Project – Geological Model
Geothermal
Conduits
Generate
Convection
Currents
Sourcing and
Concentrating Identification of a Drop- Down Block
Lithium Presents Ideal Brine Trap
31. Mariana Project - Proposed Drill Holes
Initial Drill Program
Consists of 3 Holes
100 metres Depth
Testing Different Regimes
Within Salar
32. Exploration Program – Mariana Project
Subsequent 12
2010
Months
Decision Process
Decision Process
Drilling Drilling Pre-Feasibility
Re-sampling (10-20 Holes)
(3 Holes) to Feasibility
Geophysics
32
33. Nevada Lithium Brine Projects - ILC
Silver Peak
Chemetall-Foote‟s
Clayton Valley
lithium brine operation has
been producing since 1967
ILC currently has
3 active
lithium brine
projects totaling
5,300 hectares
in this highly
prospective area
33
34. Clayton Valley Brine Occurrence
A
A’
Bouger Gravity Contour Map
Clayton Valley, Esmeralda County
35. Nevada Brine Model – Clayton Valley
A A’
General cross section of Clayton Valley with its fault planes and possible groundwater flow
(modified from Davis et al., 1986)
36. Mud Lake Project, Nevada
Typical Nevada Valley
Target Geology
2,900 hectares
Probable
Fault Escarpment
Mud Lake
Looking W
37. Mud Lake– Exploration Approach
Compile and
Interpret
Historic Data
Model Built on
Proximity Work
by USGS and
Third Party
Gravity Survey
Interpretation
Indicates
Faulting and Gravity Interpreted
Low Structure
Drop Blocks
MUD LAKE PROJECT AREA
38. Mud Lake– Interpreted Model
MUD LAKE PROJECT AREA
Claims
Selected
Over Postulated
Basement Lows
Reflecting High Potential Brine Traps
39. Exploration Program - Nevada
2010 2011
Geophysics Drilling
Properties (Gravity) (2-3 holes)
1
2 Feasibility?
3
Mud Lake Geophysics Commencing April 2010
Followed by Systematic Exploration Approach
For All Nevada Projects
39
41. Proven Business Model
“Lead Project Generator”
• Early Identification and Acquisition of Opportunities
• Advancement Provides Maximum Value Increase
Over Minimum Period for Minimum Cost
• Utilize Strategic Joint Venture Partnerships to
Facilitate Rapid Multi-Project Development,
Mitigate Risk and Add Strength
• Continued Evaluation and Incorporation of
New Properties into Project Pipeline
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42. Contact Information
Address Investor Relations
P.O. Box 11604
620 - 650 West Georgia St. Jerry Huang
Vancouver, British Columbia
TNR Goldcorp
V6B 4N9, Canada
Phone: (604) 687-7551
Phone: (604) 687-7551 Fax: (604) 687-4670
Fax: (604) 687-4670 Toll Free: 1-800-667-4470
Toll Free: 1-800-667-4470
E-mail:
E-mail: info@tnrgoldcorp.com
jerryhuang@tnrgoldcorp.com
45
43. Disclaimer
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this presentation.
Statements in this presentation other than purely historical
information, historical estimates should not be relied upon, including
statements relating to the Company‟s future plans and objectives or
expected results, are forward-looking statements. This presentation
contains certain "Forward-Looking Statements" within the meaning of
Section 21E of the United States Securities Exchange Act of 1934, as
amended. Forward-looking statements are based on numerous
assumptions and are subject to all of the risks and uncertainties
inherent in the Company‟s business, including risks inherent in
resource exploration and development. As a result, actual results
might vary materially from those described in this presentation.
Readers should verify any & all claims and do their due diligence
before investing in any securities mentioned. Investing in securities is
speculative and carries a high degree of risk.
