2022 UPDATED MRE – MAJOR RESOURCE UPGRADE
In February 2022, following completion of the RC drilling program over the K.Hill Extension in 2021 and mineralogical analysis of samples from the B Horizon, the Company announced an updated MRE prepared by SRK in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Code (“CIM Code”) and NI 43-101. The updated MRE encompassed results from all zones of the K.Hill Project, including the B Horizon and the new K.Hill Extension area.
K.Hill Project SRK MRE Statement, reported within an optimized pit shell and at a cut-off grade of 7.3% MnO, as of February 2022.
|Classification||Tonnage (Mt)||Grade MnO (%)||Contained MnO (Mt)|
|Indicated mineral resources||2.1||19.3||0.41|
|Inferred mineral resources||3.1||16.9||0.53|
(2) All tonnages are reported as dry
(3) The MRE is constrained within estimation domains based on geological modelling and grade and within a Lerchs-Grossman optimized pit shell based on an HPMSM price of USD1,588 /t and the following technical-economic parameters:
- Mining Cost – USD3.46 /t rock
- Processing Cost – USD213 /t ore
- Selling cost – 3% and a freight cost of USD60 /t HPMSM
- G&A – USD20 /t ore
- Discount Rate – 10%
- Processing Recovery – 90.7%
- Mining Recovery – 98%
- Mining Dilution – 3%
- Geotechnical Slope Angle - 41°
(5) All figures are rounded to reflect the relative accuracy of the estimates.
(6) It is uncertain if further exploration will convert Inferred Mineral Resources to higher confidence categories.
(7) The northern domains have a higher average density than the southern extension domains. Limited density measurements are part of the reason for Inferred classification of the majority of the south extension. Infill drilling and additional density measurements may result in an increase or decrease of calculated tonnage for this area.
The Qualified Person in accordance with the CIM Code, with responsibility for the reporting of the MRE presented is Mr Peter Gleeson, AIGS, MIMMM (CP), a Corporate Consultant (Resource Geology) with SRK. Mr Gleeson has the relevant experience in reporting Mineral Resources on various base, precious and ferrous metal assets globally.
Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. SRK is not aware of any factors (environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors) that have materially affected the MRE. It is uncertain if further exploration will convert Inferred and Indicated Mineral Resources to higher confidence categories.
The Company filed the supporting Technical Report on SEDAR at www.sedar.com on March 30, 2022. A full summary of the 2022 Technical Report can be found in the Company’s annual information form (“AIF”) for the year ended December 31, 2021 and filed on SEDAR on March 30, 2022.