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Highbank Resources – Near-term Aggregate Gravel Production in Canada

Highbank Resources Ltd.

Overview

Highbank Resources (TSXV:HBK) is a Canadian mineral exploration and development company. The company has a significant NI 43-101 compliant 72,000,000 ton measured and indicated aggregate deposit. The deposit lies on tide water, on the Portland Canal, 78 miles from the Port of Prince Rupert, B.C.,Canada. The Port of Prince Rupert is undergoing a massive infrastructure expansion, which now stands at $40 billion. Highbank’s Swamp Point North deposit is the largest, nearest and has the distinct economic advantage over other aggregate producers due to the close access to barges and a world class port.

The company has filed the necessary permits and has already received the licenses of occupation. The company has completed the third tranche of an oversubscribed financing yielding $575,600.00.

Investment Highlights

  • The Swamp Point aggregate deposit is 100% owned and is an advanced stage project with customer orders in place, and NI-43-101 compliant reserve estimate
  • Swamp Point project well advanced in the permitting process
  • Highly skilled management team with a proven track record of success
  • Recent financing places the Company in strong cash position

Click here to read Highbank Resource’s Latest Presentation

Key Projects

Swamp Point North Project

Highbank Resources’ 100 % Swamp Point North property is unique for a mineral exploration company, as it is neither a base nor precious metal property, but rather a large aggregate rock deposit. Aggregates are fragments of rock measuring 0.08 to 80 millimeters in diameter, that when extracted from quarries, crushed, and calibrated, appear in a wide range of products, including gravel, broken gravel, and sand which are crucial for use in concrete and asphalt.

The Swamp Point North deposit is a NI 43-101 compliant multi-million ton sand and gravel deposit resource (measured: 33 million tons, 72 million tons measured & indicated). With a minor royalty payment to the Province of British Columbia (.35/ton dry), and minimal processing, screening, crushing and wash to meet specifications of the client, the major cost lies in shipping. The company’s deposit lies on tidewater with 30 meters ocean depth. The property’s proximity to the Portland Canal however, mitigates much of this delivery cost. Using barges to ship the material directly from the property, a short distance to a docked bulk freighter at the Port of Prince Rupert, British Columbia, gives the company a distinct economic advantage over its competition.

The company’s business model includes contracting out all major mining operations, and delivering a minimally processed bulk product that can be further processed by the end-user. Its aggressive two year development strategy to achieve full production of 1,500,000 tons per year for the life of the deposit (20 years).

Highbank Resources Prince Rupert Port

Port of Prince Rupert

Highbank-Resources-Grassy-Point

With a sustainable business model, and underserved Pac-Rim countries, Highbank Resources Swamp Point North project has the potential to become an important source of revenue to finance exploration for potentially more lucrative base metal properties. Becoming a self-financing exploration company without need of diluting the stock through public offerings would be of obvious benefit to shareholders.

The Company has received its first commitment from West Fraser Concrete Ltd. to purchase 100,000 tonnes of aggregate from its Portland Canal Swamp Point North deposit. West Fraser Concrete operates the only cement plant in Prince Rupert, B.C.

With the recently announced $25 Billion “Pacific Gateway Transportation Strategy” and compounded by the $1.3 Billion expansion to the Port of Prince Rupert and the $3.3 Billion Rio Tinto expansion of the Alcan Smelter at Kitamat, BC, the market for Highbank’s aggregates is growing substantially.

The Company  recently received acceptance of the License of Occupation (“LoO”) renewals for both the sand and gravel quarry area, and the barge loading foreshore tenures. The LoO includes acceptance of the Tenure over Crown Land and the Management Plan. The next step is acceptance of the Notice of Work which will allow the Company to commence development and move toward production of the Swamp Point North aggregate deposit.

Regional Market Overview 

With the recently announced $25 Billion “Pacific Gateway Transportation Strategy” and compounded by the $1.3 Billion (Government of Canada) expansion to the Port of Prince Rupert with the addition of (2) LNG Terminals (Petronas) as well as a second Coal terminal and new Potash Terminal. In nearby Kitamat, B.C., Canada,  $3.3 Billion Rio Tinto expansion of the Alcan Smelter at Kitamat, B.C., Canada and the recent David Blacks, $25 Billion Refinery proposed for 25 milese north of Kitamat makes the market for Highbank’s aggregates very promising.

Further, in April 2012, British Columbia’s Energy Minister Rich Coleman announced that the provincial government has received four “new major international LNG project proposals”, all in the Prince Rupert area. The construction of these massive LNG plants will require vast amounts of construction aggregates throughout their build.

Corporate Responsibility

In an exciting new development Highbank Resources Ltd. initiated and has agreed to sponsor the Northern Aboriginal Machinery School (“NAMS”), a heavy duty machinery training school for First Nations students throughout Canada to prepare them for full-time employment with mining, oil and gas, and construction companies. The program will consist of on-site training at Highbank’s Portland Canal, B.C. aggregates operation at Swamp Point North, followed by a work experience placement. NAMS will assist students with finding meaningful employment, accessing additional training programs as necessary, and building employable skills. On the business side, NAMS will develop partnerships with employers to understand their business and labour needs and adapt the structured program to suit their specific needs.

Highbank and NAMS will be partnering with High Velocity Equipment Training Ltd. and Northern Lights College, Dawson Creek, BC in order to supply the curriculum and deliver the heavy equipment training. High Velocity Equipment Training Ltd. (“HVET”) and Northern Lights College (“NLC”) are licensed vocational training colleges that have been successfully delivering training projects in Alberta and B.C. at both of their campuses and within remote Aboriginal communities.

Summary

Highbank Resources Ltd. is a Vancouver, BC headquartered mineral exploration company with an advanced stage aggregate deposit near the Port of Prince Rupert, British Columbia. Because of the huge transportation costs involved in the aggregate business, the Company’s property is strategically located on tidewater, and can use barges to deliver material directly to bulk freighters docked at the Port of Prince Rupert, Canada’s northern most ice-free port.

The Company already has a large multi-million dollar aggregate order in place, and is well into the permitting stages, having recently received a License of Occupation (“LoO”) renewals for both the sand and gravel quarry area, and the barge loading foreshore tenures. The projects proximity to Asian markets is also a substantial competitive advantage.

Management

Victor N. Bryant – CEO, President & Director
Over 40 years in the mining industry in various capacities such as operations and project engineer, plant manager, senior process metallurgist, and mil/concentrator superintendent. A Metallurgical Consultant,  recently Vice President & Senior Metallurgist for Micon International Limited (June 2005 and 2011), and prior ten years with Flour Daniel consulting on projects for PT Newmont in Indonesia; Phelps Dodge and Asarco in South Peru; BHP in Santiago, Chile; Cyprus Corp in Arizona and Peru, and numerous other worldwide projects.  Prior to Flour Daniel he worked for Billiton International Metals Ltd., Granges Exploration, Sherritt Gordon, Placer Development Ltd., Noranda Mines Ltd. and Angle American Corporation.

Gary Musil – Secretary, CFO, and Director
Gary Musil has more than 30 years of management and financial consulting experience and has served as an officer and director on numerous public companies since 1988. This experience has resulted in his overseeing the financial aspects and expenditures on exploration projects in Peru, Chile, Eastern Europe (Slovak Republic), and British Columbia, Ontario, Quebec and New Brunswick (Canada). Prior to this, he was employed for 15 years with Dickenson Mines Ltd. and Kam-Kotia Mines Ltd. as a Controller for the producing silver/lead/zinc mine in the interior of British Columbia Canada.

Luard J. Manning, P.Eng. – Director
Life Member B.C. Professional Engineers and CIMM. Over 50 years mining experience, and a mining consultant practicing out of Vancouver, B.C. as President of L.J. Manning and Associates since 1967, He has extensive personal expertise in operating underground mines, and has operated small open pit operations. Mr. Manning has supervised and critiqued engineering designs for both surface and underground deposits with emphasis on the effects of design on operating economics. Most notably, completed feasibility studies for Brandywine operation of Northair Mines; the Ruth Vermont project for Columbia River Mines; and the Rabbit Lake open pit project for Gulf Minerals Canada Ltd. He has work experience in Canada, Latin America, and the U.S.A., and has reviewed properties in England and Australia.  He has been a director and officer of several public companies.

Stan Spletzer – Vice President of Aggregate Operations
Mr. Spletzer brings to the Company 30 years of contracting experience working with enterprises such as Canfor and Houston Forest Products, and the B.C. Ministry of Forests. The basis of these contracts (durations up to 13 years) range from logging, aggregate and road building, silviculture (mechanical site preparation), and various other levels of construction and forestry related jobs. These contracts involved managing as many as 90 employees. He has worked with First Nations in Northern B.C. employing up to 20 band members for 9 years.