Eight years since starting its Swamp Point North Aggregate Project, Highbank Resources Ltd. [TSX.V: HBK] is in the right place at the right time. Poised to complete the journey from junior explorer to a producer with positive cash flow, the company is pleased to report that with the filing of its Notice of Work Application, it is on track to directly benefit from the development at the nearby Port of Prince Rupert, B.C., Canada, which is set for giant infrastructure upgrades.

1. Financial Press: Rocks to Riches: Highbank
Resources Steps Away... from Cash Flow with
Construction Aggregate Project
[ACCESSWIRE]
(Financial Press - Oct 30, 2013) - Eight years since starting its Swamp Point
North Aggregate Project, Highbank Resources Ltd. [TSX.V: HBK] is in the right
place at the right time. Poised to complete the journey from junior explorer to a
producer with positive cash flow, the company is pleased to report that with the
filing of its Notice of Work Application, it is on track to directly benefit from the
development at the nearby Port of Prince Rupert, B.C., Canada, which is set for
giant infrastructure upgrades.
Recent announcements regarding investment for the LNG facility at the Port of
Prince Rupert, only 72 miles away from the company’s tidewater deposit, have
ramped up interest in the region. Malaysian petroleum titan Petronas, recently
declared a commitment to inject $36 billion into British Columbia LNG. The
construction of Petronas’ LNG facility upgrades at the port is estimated at $18
billion. Overall, the “announced” projects stand at a staggering $60 billion in
total in North West British Columbia.
Highbank’s timing is near perfect to derive direct benefit. As billions of dollars
will be pouring into the port’s upgrades, it appears that it’ll be Highbank’s
valuable concrete-making aggregates that will be poured into the facility’s
foundation.
“The filing of this Notice of Work application is a major milestone for us and the
approval of the application will mean we have overcome a major hurdle towards
the development of this project,” says Victor N. Bryant, President and CEO of
Highbank Resources Ltd. To this point, Highbank has already incurred over $2.5
million in developing its Swamp Point North project. Now that their intentions to
develop for production have been officially submitted with regulators, an
additional $3 million will be required to bring the project into production.
But the key to the deal is in the conservative cash flow calculations that are set
to ensue once production commences.
“We have a NI 43-101 compliant resource indicating we have 72 million tonnes
of aggregate. With initial off-take commitments at $22.50 per tonne, many
investors have commented to me the significant value of our deposit,” says
Bryant.
Firstly, gravel is endemic to society. Each high rise is essentially built from
gravel. When you add cement to it, you get concrete, which is all around us. In
fact, the average Canadian uses the equivalent of 17 tonnes worth of aggregate

2. per year.
The importance of aggregates in the construction of the society we live in is
often overlooked. In the Province of British Columbia alone, production of
aggregates was 38 million tonnes in 2010, valued at $322 million. A study in
2012 by the USGS (United States Geological Survey) of all mining industries in
the US indicated that the value of all of the gold mined in the US is 40% less
than the value of all aggregates mined. However, aggregate mining is becoming
rarer, thanks to urban sprawl and a lack of acceptance for having a quarry near
one’s backyard.
The decline of available area for aggregate mining has led to a price increase
over recent years. Prices currently range for the commodity between $20$32.50 per tonne. Highbank already has an early sales commitment for 100,000
tones at $22.50 per tonne, and have expressions of interest for further
significant tonnage at rates exceeding $25.00 per tonne.
Unlike many other mineral resources, aggregates require little in terms of
preparation before market. Other than washing, screening and loading, the
commodity is relatively simple and cost effective to produce.
Highbank already has 100,000 tonnes in sales commitments, and believes that
there are plenty more to come with the ramping up of construction in the Port
of Prince Rupert and at the proposed Grassy Point LNG site (Exxon, CNOOC),
which lies approximately 38 miles from the company’s deposit.
Initial production is expected to be around 235,000 tonnes per year in stage
one. Stage two (between months 12-24) the company will work toward
completion of an Environmental Assessment Report to enable filing of an
application for full scale production and will see the company bring production
up to 1.5 million annual tonnes by year four. Years 3-20 are expected to see
the projects largest scale of mining and export sales.
The difference between the 1 million and 3.3 million production allotments
means a lot for the company’s cash flow projections. Taken with the
conservative price points of the first sales commitments, Highbank expects to
generate $12.150 million per year in revenue for years 3 and 4, with $1.6
million per year in operating profit.
Once in full-scale production (expected for 2017), the company projects to
produce 1.5 million tonnes per annum with $33.75 million per year in revenue
and $4.425 million per year in operating profit.
The massive construction plans for Port of Prince Rupert’s and LNG facilities will
be ongoing as Highbank builds towards increased production. The latest
announcements of the company’s NoW application moves Highbank to its
closest point since starting the project in 2005. Now all that’s required is laststage financing and pre-production start-up to bring the Swamp Point North into

3. cash flow, and the reward to investors that have helped build the operation up
to this point.
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