Coal Discovery - Saturn Minerals
Coal Discovery - Saturn Minerals
Coal Discovery - Saturn Minerals
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Developing a Saskatchewan <strong>Coal</strong> Field!<br />
Fall/Winter 2012!<br />
A New Canadian <strong>Coal</strong> Field!<br />
89 Metre Thick <strong>Coal</strong> Seams Near Rail!
2!<br />
Forward Looking Statements!<br />
This presentation includes forward-looking statements as well as historical information. Forward-looking statements<br />
include, but are not limited to, <strong>Saturn</strong> <strong>Minerals</strong> Inc.’s continued advancement of its minerals exploration, development and<br />
production programs. When used in this presentation, the words “potential”, “anticipate”, “forecast”, “believe”, “estimate”,<br />
“expect”, “may”, “project”, “plan” and similar expressions are intended to be among the statements that identify forwardlooking<br />
statements.!<br />
!<br />
<strong>Saturn</strong> <strong>Minerals</strong> Inc. expressly warns readers not to rely on the information herein for investment or other related purposes.<br />
Accordingly, any use of this information is at their own risk and without the liability to <strong>Saturn</strong> <strong>Minerals</strong> Inc. The information<br />
contained herein is not, and under no circumstances is to be construed as either a public or a private offer or solicitation to<br />
purchase securities in the capital stock of <strong>Saturn</strong> <strong>Minerals</strong> Inc. The reader is referred to his/her professional investment<br />
advisor regarding investing or related decisions respecting the securities of <strong>Saturn</strong> <strong>Minerals</strong> Inc.!
3!<br />
Intro – Western Canadian energy!<br />
The WCSB is contains some<br />
the world’s largest deposits<br />
of energy (coal, oil, gas)!<br />
!<br />
The WCSB is major driver of<br />
the Canadian economy !<br />
!<br />
Total value extracted from<br />
the WCSB since 1930 is<br />
over $1 Trillion!<br />
!<br />
Total value remaining within<br />
the WCSB is unknown!<br />
!<br />
Development of the WCSB<br />
has not occurred evenly…!<br />
Western Canadian Sedimentary Basin (“WCSB”)!
4!<br />
Intro – Alberta, a history of energy wealth!<br />
1950 – 2010!<br />
!<br />
The western part of the WCSB,<br />
mostly in Alberta, has seen 60<br />
years of development & wealth!<br />
Sources: Natural Resources Canada!<br />
<strong>Coal</strong> Mine!<br />
Natural Gas!<br />
Light Oil!<br />
Heavy Oil!<br />
Oil Sands / Shale!
5!<br />
Intro – Saskatchewan, a future of energy wealth!<br />
2010 – 2050!<br />
!<br />
The eastern part of the WCSB,<br />
mostly in Saskatchewan, is<br />
experiencing an exploration<br />
boom, which <strong>Saturn</strong> is a part of!<br />
Sources: Natural Resources Canada, Saskatchewan Energy & Resources, Canadian Association of Petroleum Producers!<br />
<strong>Coal</strong> Mine!<br />
Natural Gas!<br />
Light Oil!<br />
Heavy Oil!<br />
Oil Sands / Shale!
6!<br />
<strong>Saturn</strong> <strong>Minerals</strong> Inc.!<br />
Saskatchewan!<br />
<strong>Saturn</strong>’s focus area!<br />
Source: Bloomberg, Aug 16, 2012<br />
A Canadian energy asset play, newly discovered!<br />
oil & coal fields in eastern Saskatchewan!<br />
Oil!<br />
End Goal:!<br />
<strong>Coal</strong>!<br />
• new light oil exploration field!<br />
• conventional targets (no horizontal frac)!<br />
• shallow targets/wells!<br />
largest land owner in high risk/high reward oil field with<br />
multiple prospects for multiple farm ins!<br />
End Goal:!<br />
• 3 new coal discoveries!<br />
• near surface, low-cost open-pit concept!<br />
• railroad infrastructure in place!<br />
a developed coal project capable of supporting a 25<br />
year low-cost commercial operation!
7!<br />
Project Breakdown!<br />
Town of Hudson Bay!<br />
<strong>Coal</strong> Projects!<br />
Red Earth!<br />
Overflowing!<br />
Rat Creek!<br />
Armit!<br />
Oil & Gas!<br />
Bannock Creek!<br />
Little Swan!<br />
Partner: Jameson!<br />
Partner: Inowending!<br />
• 230 sq. km of coal rights!<br />
• 1,497 sq. km of oil rights!
8!<br />
Projects Ownership!<br />
Oil & Gas!<br />
Little Swan! 100%!<br />
Bannock Creek! 100%!<br />
<strong>Coal</strong>!<br />
Overflowing! 100%!<br />
Rat Creek! 100%!<br />
Muskeg! 100%!<br />
Armit! 87.5%!<br />
Red Earth! 80%!<br />
20%!<br />
Armit! 12.5%!
9!<br />
Experienced Team & Strong Partners!<br />
Stan Szary!<br />
Director, President/CEO!<br />
Vitaly Melnikov!<br />
Director, CFO!<br />
Krzys Mastalerz!<br />
Director, VP Exploration!<br />
Allan Danroth!<br />
Director!<br />
Stefan Szary!<br />
Director!<br />
Marlene Lumberjack!<br />
Sask. Operations!<br />
Graduate University of Saskatchewan, +30 years experience in venture capital with<br />
specific expertise in emerging markets & natural resource financing!<br />
CPA, MBA, +20 years experience in mergers & acquisitions in natural resource space,<br />
former VP Finance UrAsia Energy, Hurricane Hydrocarbons!<br />
P.Geo, PhD, +25 years experience in exploration, specialization in sedimentology,<br />
responsible for Leif, Karolina and Thunder coal discoveries, Armit oil discovery!<br />
Graduate Bishop’s University, 7 years experience in resource land rights acquisition<br />
and management, investor relations!<br />
LLB, +20 years experience in First Nations economic development and government<br />
relations!<br />
Exploration Partnerships! Professional Consultants!<br />
Jameson Resources Ltd.!<br />
Inowending EDC!<br />
MBA, +15 years experience in resource development & production, executive manager<br />
of Genesee coal mine in Alberta (5 million tonne-per-year open cast mine)!<br />
ASX – JAL!<br />
First Nations!<br />
Apaton Finance!<br />
Northrim Exploration Ltd.!<br />
Loring Laboratories!<br />
Gushor Labs!<br />
Eur Financial Markets!<br />
Logistics!<br />
<strong>Coal</strong> Assay!<br />
Fluid Analysis (Oil)!
10!<br />
Share Capital Structure!<br />
Description! <strong>Saturn</strong> is a coal & oil exploration<br />
company in eastern Saskatchewan<br />
with over 380,000 acres of land rights!<br />
Ticker! SMI – TSX.V!<br />
SMK – FSE!<br />
Market Cap! $16.4m!<br />
Shares in Issue! 82m!<br />
52 wk Price Range! $0.30 – $0.15!<br />
Share Performance!<br />
SMI – TSX.V! TSX Venture Index!<br />
Source: Bloomberg, Aug 16, 2012<br />
Ownership!<br />
11%!<br />
7%!<br />
51%!<br />
25%!<br />
6%!<br />
Management & Insiders!<br />
Institutional!<br />
Canadian Retail!<br />
German Retail!<br />
United States Retail!
COAL PROJECTS!<br />
11! *for oil, please see <strong>Saturn</strong>’s oil presentation!<br />
Red Earth!<br />
Bannock Creek (oil)!<br />
Town of Hudson Bay!<br />
Little Swan (oil)!<br />
Armit!<br />
Rat Creek!<br />
Overflowing!
12! Summary Introduction!<br />
<strong>Saturn</strong> began exploring for coal in eastern Saskatchewan in<br />
2009. Prior to exploration & subsequent discoveries, no<br />
known coal resources were known to exist in eastern<br />
Saskatchewan.!<br />
<strong>Coal</strong> discovered thus far is the highest quality coal known to<br />
exist in the province with seams among the thickest in<br />
Canada!<br />
Properties!<br />
Location: ! !east Saskatchewan / west Manitoba!<br />
Combined size: !237 sq. km!<br />
Distance to rail: !18 km!<br />
Largest Town: !Hudson Bay, pop. 2,500 (pictured)!<br />
Exploration!<br />
Start: ! !2009!<br />
Discoveries: !3!<br />
<strong>Coal</strong> seams: !3 m – 89 m (true vertical)!<br />
Depth: ! !12 m – 110 m!<br />
Quality: ! !10,300 BTU/lb (high)!<br />
! !8,000 BTU/lb (low)!<br />
Sulphur: ! !0.9 – 1.7%!<br />
Hudson Bay, SK!
13! <strong>Coal</strong> Exploration Timeline To-date!<br />
2008!<br />
! 789 sq. km of Saskatchewan coal rights<br />
acquired!<br />
2009!<br />
! 67 line-km ground gravity survey completed!<br />
! 3,178 line-km magnetic & electromagnetic fixed<br />
wing airborne survey completed!<br />
! Base structural model interpreted!<br />
! Broad-scale geological model completed and<br />
released in long form report!<br />
! 9 drill holes completed in Saskatchewan!<br />
! Leif coal discovery is made in Saskatchewan !<br />
2010!<br />
! Leif coal quality tested at 9,000 BTU/lb!<br />
! 1,351 line-km gravity fixed wing airborne survey<br />
completed!<br />
! Base structural model expanded to include<br />
gravity!<br />
! 32 sq. km of Manitoba coal rights acquired!<br />
2011!<br />
! 7 drill holes completed in Manitoba!<br />
! Karolina coal discovery is made in Manitoba!<br />
! Karolina coal quality tests at 10,300 BTU/lb!<br />
! 4,389 line-km gravity helicopter survey<br />
completed!<br />
! 8 drill holes completed in Saskatchewan!<br />
! Leif coal discovery is extended!<br />
! Inowending Exploration & Development partner<br />
for Saskatchewan coal exploration!<br />
! Jameson Resources Ltd. partner for coal<br />
exploration!<br />
2011!<br />
! 8 drill holes completed in Manitoba!<br />
! Thunder coal discovery is made in Manitoba!<br />
! Thunder coal quality tests at 9,500 BTU/lb!
14! <strong>Coal</strong> Exploration Model!<br />
The coal deposits of eastern Saskatchewan & western Manitoba are relatively shallow, localized and have<br />
coal seam thicknesses of up to 100 m (including partings) and are a result of karsting & faulting.!<br />
!<br />
There is no surface exposure or coal outcrop. <strong>Saturn</strong> has established an exploration model based on<br />
gravity geophysical survey which has produced three major coal discoveries to date.!<br />
!<br />
The shallowest of these coal deposits lend themselves favourably to surface mining methods with stripping<br />
ratios potentially as low as 1:1.!<br />
Image is for visualization purposes!<br />
4 km!<br />
<strong>Coal</strong> thickness up to 89 metres<br />
(continuous, no partings)!<br />
Shallow karstic depressions<br />
containing anomalously thick<br />
coal seams!<br />
!<br />
!<br />
Identified via proprietary<br />
interpretation of gravity<br />
geophysical data!
15! <strong>Coal</strong> Discoveries To Date!<br />
Hudson Bay!<br />
= <strong>Coal</strong> <strong>Discovery</strong>!<br />
Thunder <strong>Coal</strong> <strong>Discovery</strong>!<br />
<strong>Coal</strong> Thickness: !25 m (composite)!<br />
<strong>Coal</strong> Depth: !15 m!<br />
Strike: ! !Unknown!<br />
! !Open all directions!<br />
Karolina <strong>Coal</strong> <strong>Discovery</strong>!<br />
<strong>Coal</strong> Thickness: !3 to 89 m !<br />
! !(continuous)!<br />
<strong>Coal</strong> Depth: !10 to 45 m!<br />
Strike: ! !1,100 m!<br />
! !Open to N, S!<br />
Leif <strong>Coal</strong> <strong>Discovery</strong>!<br />
<strong>Coal</strong> Thickness: !1 to 10 m !<br />
! !(continuous)!<br />
<strong>Coal</strong> Depth: !98 to 111 m!<br />
Strike: ! !4,000 m!<br />
! !Open to NE, SW!
16! Thunder <strong>Coal</strong> <strong>Discovery</strong> (Overflowing Property)!<br />
9 km!<br />
Overflowing Property!<br />
26m coal @ 15m depth<br />
‘Thunder’ <strong>Coal</strong> <strong>Discovery</strong><br />
<strong>Saturn</strong> <strong>Minerals</strong> Inc.<br />
For illustrative purposes only,<br />
does not illustrate overburden!
17! Thunder <strong>Coal</strong> Target, Interpreted Gravity Data!<br />
9 km!<br />
Overflowing Property!<br />
1,000 m!<br />
(undrilled area)!<br />
QP227-09!<br />
(Drill Hole)!<br />
1,000 m!<br />
(undrilled area)!<br />
(undrilled area)!<br />
(undrilled area)!<br />
Gravity data!
18! Karolina <strong>Coal</strong> <strong>Discovery</strong> (Overflowing Property)!<br />
9 km!<br />
Overflowing Property!<br />
89m coal @ 45m depth<br />
‘Karolina’ <strong>Coal</strong> <strong>Discovery</strong><br />
<strong>Saturn</strong> <strong>Minerals</strong> Inc.<br />
For illustrative purposes only,<br />
does not illustrate overburden!
19! Karolina <strong>Coal</strong> Target, Interpreted Gravity Data!<br />
9 km!<br />
Overflowing Property!<br />
1,000 m!<br />
(undrilled area)!<br />
QP227-07!<br />
QP227-06!<br />
1,000 m!<br />
(undrilled area)!<br />
QP227-03!<br />
QP227-04!<br />
QP227-01!<br />
QP227-05!<br />
Gravity data!
20! Undrilled <strong>Coal</strong> Targets, Interpreted Gravity Data!<br />
9 km!<br />
Overflowing Property!<br />
1,000 m!<br />
(undrilled area)!<br />
1,000 m!<br />
(undrilled area)!<br />
Gravity data!
21! Undrilled <strong>Coal</strong> Targets, Interpreted Gravity Data!<br />
9 km!<br />
Overflowing Property!<br />
250 m!<br />
300 m!<br />
250 m!<br />
250 m!<br />
Gravity data!<br />
Gravity data!<br />
No Data!<br />
!<br />
A new system?!<br />
!<br />
Acquiring <strong>Coal</strong> Rights!<br />
No Data!<br />
!<br />
A new system?!<br />
!<br />
Negotiating <strong>Coal</strong> Rights!
22! Overflowing Property – Total Results to Date!<br />
Overflowing <strong>Coal</strong> <strong>Discovery</strong> Holes To Date!<br />
Drill Hole!<br />
<strong>Discovery</strong><br />
Area!<br />
From<br />
(m)!<br />
To!<br />
(m)!<br />
Total Partings!<br />
(m)!<br />
<strong>Coal</strong>!<br />
(m)!<br />
QP227-07! Karolina! 13.1! 25.4! -! 12.3!<br />
QP227-03! Karolina! 10.2! 13.2! -! 3.0!<br />
QP227-04! Karolina! 44.6! 133.5! -! 88.9!<br />
QP227-01! Karolina! 45.4! 85.2! -! 39.8!<br />
QP227-05! Karolina! 21.0! 33.3! -! 12.3!<br />
QP227-06! Karolina! 14.8! 25.1! -! 10.3!<br />
QP227-09! Thunder! 15.8! 45.0! 3.4! 25.8!<br />
Overflowing <strong>Coal</strong> Quality To Date!<br />
<strong>Discovery</strong>!<br />
Sample<br />
Thickness!<br />
Calorific Value!<br />
(KJ/kg)!<br />
Calorific Value!<br />
(BTU/lb)!<br />
Ash %! Sulfur %!<br />
Name! Meters! AR! AD! AR! AD! AR! AD! AR! AD!<br />
Karolina Center! 32.0! -! 24,120! -! 10,368! 8.8%! 15.5%! -! -!<br />
Karolina Avg.! n/a! -! 21,092! -! 9,067! -! 15.2%! -! 1.9%!<br />
Upper Thunder Avg.! 9.0! -! 19,043! -! 8,185! -! 21.9%! -! 1.0%!<br />
Lower Thunder A! 2.6! -! 22,127! -! 9,512! -! 13.9%! -! 0.9%!<br />
Lower Thunder B! 3.1! -! 22,502! -! 9,674! -! 15.6%! -! 2.4%!<br />
Lower Thunder Avg.! 16.3! -! 19,534! -! 8,398! -! 20.2%! -! 2.0%!
23!<br />
Leif <strong>Coal</strong> <strong>Discovery</strong> (Armit Property)!<br />
Armit Property!<br />
21 km!<br />
9.5m coal @ 110m depth<br />
‘Leif’ <strong>Coal</strong> <strong>Discovery</strong><br />
<strong>Saturn</strong> <strong>Minerals</strong> Inc.<br />
For illustrative purposes only,<br />
does not illustrate overburden!
24! Armit – A Different <strong>Coal</strong> Model?!<br />
The Armit property is further west and covers a deeper part of the basin. Interpretation of gravity<br />
geophysical data is similar to that of Manitoba (further east where the basin is shallower) but suggests a<br />
different exploration model, a fluvial paleo-valley/graben.!<br />
!<br />
The longer strike (4,500 m) of the Leif discovery supports a fluvial paleo-valley/graben exploration model.!<br />
!<br />
The exploration implication of a fluvial paleo-valley vs. a karstic depression is that the Armit property may<br />
contain coal seams of significant thickness but of much longer extent (over several km).!<br />
Armit Property!<br />
21 km!<br />
AR-C-3!<br />
Armit-11!<br />
AR-C-1!<br />
A1-003!<br />
AR-B-1!<br />
15,000 m!<br />
(undrilled area)!<br />
(undrilled area)!<br />
6,000 m!<br />
Gravity data!<br />
(undrilled area)!
25!<br />
Armit – A Different <strong>Coal</strong> Model?!<br />
Moving east as the basin gets shallower, the interpreted gravity data begins to resemble Manitoba karstic<br />
coal targets, as are found on the Overflowing property.!<br />
Armit Property!<br />
21 km!<br />
3,000 m!<br />
(undrilled area)!<br />
4,000 m!<br />
1,000 m!<br />
(undrilled area)!<br />
Gravity data!
26! Armit – A Different <strong>Coal</strong> Model?!<br />
The implications of a fluvial paleo-valley/graben model are significant. Most of the largest coal deposits in<br />
the world are a result of this type of depositional environment.!<br />
Bełchatów <strong>Coal</strong> Mine, Poland: 1.9 billion tonnes!<br />
Fluvial paleo-valley graben model!
27! Armit Property – Total Results to Date!<br />
Armit <strong>Coal</strong> <strong>Discovery</strong> Holes To Date!<br />
Drill Hole!<br />
<strong>Discovery</strong><br />
Area!<br />
From<br />
(m)!<br />
To!<br />
(m)!<br />
Total Partings!<br />
(m)!<br />
<strong>Coal</strong>!<br />
(m)!<br />
A1-003! Leif! 102.7! 103.9! -! 1.2!<br />
Leif! 112.3! 121.9! -! 9.7!<br />
AR-B-1! Leif! 103.9! 105! -! 1.1!<br />
Leif! 111.6! 113.9! -! 2.3!<br />
AR-C-1! Leif! 99.8! 101.0! -! 1.2!<br />
Leif! 109.1! 118.5! -! 9.4!<br />
AR-C-3! Leif! 98.1! 100.2! -! 2.1!<br />
AR-X-1! Leif! 104.0! 107.7! -! 3.7!<br />
Armit-11! Leif! 107.0! 114.5! -! 7.5!<br />
Armit <strong>Coal</strong> Quality To Date!<br />
<strong>Discovery</strong>!<br />
Sample<br />
Thickness!<br />
Calorific Value!<br />
(KJ/kg)!<br />
Calorific Value!<br />
(BTU/lb)!<br />
Ash %! Sulfur %!<br />
Name! Meters! AR! AD! AR! AD! AR! AD! AR! AD!<br />
Leif Center! 9.5! 14,877! 18,6536! 6,395! 8,019! 22.1%! -! 1.6%! -!
28! Area – Exploration Summary!<br />
70 km!<br />
Hudson Bay!<br />
50 km!<br />
Rat Creek!<br />
New properties!<br />
Early exploration!<br />
More coal potential?!<br />
Overflowing!<br />
Advanced exploration!<br />
Expand coal rights!<br />
Determine Resource!<br />
(?) 000,000 tonnes!<br />
Muskeg!<br />
Armit!<br />
New properties!<br />
Early exploration!<br />
More coal potential?!<br />
Advanced exploration!<br />
Determine Resource!<br />
(?) 000,000 tonnes!
29! <strong>Coal</strong> Markets!<br />
<strong>Coal</strong> is fastest growing energy source worldwide since 2007, outpacing oil, natural gas!<br />
!<br />
+ 3.5 billion tonnes of global coal demand growth by 2030!<br />
!<br />
Supply side problems developing in seaborne market!<br />
!China – insufficient domestic production, net importer since 2009!<br />
!India – insufficient domestic production, wide-scale blackouts, net importer!<br />
!Australia – increase in mining royalty squeezing margins of coal producers!<br />
!Indonesia – coal quality decreasing, protectionist legislation to limit coal exports!<br />
!Columbia – rising labour tensions, wide-scale protests and production halts!<br />
!<br />
Shanghai, 1990! Shanghai, 2012!<br />
Sources: BP Statistical Review, 2011, Peabody, McCloskey, JP Morgan Cazenove Equity Research, BMO Capital Markets!
30! Canadian <strong>Coal</strong> – Seaborne Markets!<br />
“<strong>Coal</strong> demand to rival oil demand by 2030”!<br />
BP Statistical Review, 2011!
31! Existing Rail to Port!<br />
Port of Vancouver!<br />
Rail Car Capacity (raw coal): !107 tonnes!<br />
Terminal Capacity: ! !Capesize!<br />
Pacific!<br />
Port of Vancouver!<br />
(coal terminal available)!<br />
<strong>Coal</strong> Project Area!<br />
(crossed by CN Rail)!<br />
Transport costs are subject to change, rates stated here are CN Rail quotes as of September 5, 2012!<br />
Port of Thunder Bay!<br />
Rail Car Capacity (raw coal): !107 tonnes!<br />
Terminal Capacity: ! !Handymax!<br />
Atlantic!<br />
Port of Thunder Bay!<br />
(coal terminal available)!
32! Conclusion – Developing a New <strong>Coal</strong> Field!<br />
The coal fields of eastern Saskatchewan did not exist before 2008!<br />
4 years of exploration has yielded three major discoveries!<br />
77% of lands remain unexplored!<br />
A new low cost coal production area near rail!<br />
Rail Access:! Exists!<br />
<strong>Coal</strong> Quality:! Thermal!<br />
8,000 – 10,300 BTU/lb!<br />
Low to moderate sulphur!<br />
<strong>Coal</strong> Seams:!<br />
<strong>Coal</strong> Depths:! 10 m – 111 m!<br />
<strong>Coal</strong> Rights:! 230 sq. km!<br />
Area explored:! 23%!<br />
Area unexplored:! 77%!<br />
3 m – 89 m!
33!<br />
<strong>Saturn</strong> Oil – For More Info, See Oil Presentation!<br />
A New Saskatchewan Oil Play!<br />
<strong>Saturn</strong> is also engaged in early<br />
stage oil & gas exploration!<br />
During coal exploration, <strong>Saturn</strong> has<br />
encountered both oil and source<br />
rock in explored regions of the<br />
basin!<br />
In 2011, <strong>Saturn</strong> acquired 150,000<br />
hectares of oil & gas rights and has<br />
begun first phases of oil exploration!<br />
For more oil info!<br />
Please see <strong>Saturn</strong>’s oil<br />
presentation!<br />
Oil encountered during coal drilling!
34! Inowending Exploration & Development Corp.!<br />
A First Nations Owned Exploration<br />
& Development Company!<br />
<strong>Saturn</strong> is also a founding partner and<br />
20% owner of a majority First Nations<br />
owned exploration & development<br />
company!<br />
Inowending is a unique Canadian<br />
company designed to allow First<br />
Nations direct equity participation in<br />
natural resource projects !<br />
For more coal info!<br />
Please see the Inowending<br />
Presentation!
Thank You!
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