Northcliff Resources Ltd. announced completion of a positive feasibility study for its 100%-owned Sisson Project located in New Brunswick, Canada, confirming the long-life open pit tungsten and molybdenum development as a technically and economically robust project. Undertaken by Samuel Engineering Inc. of Denver, Colorado, the Sisson Project feasibility study reports a pre-tax net present value of $714 million at an 8% discount rate, an internal rate of return of 20.4% and a 4.1-year payback on initial capital expenditures of $579 million at long term metal prices of $350/mtu for ammonium paratungstate and $15/lb for molybdenum. On a post-tax basis, Sisson has a $418 million NPV (equal to $5.40 per outstanding Northcliff share based on 77,399,245 current issued and outstanding shares), a 16.3% IRR and a 4.5 year payback on initial capital.

Feasibility study highlights: located 100 km by road northwest of Fredericton, NB, the Sisson property hosts a 334 million tonne proven and probable mineral reserve containing 22.2 million metric tonne units ('mtu') of tungsten trioxide ('WO3') and 154.8 million pounds of molybdenum ('Mo') at an $8.83/t Net Smelter Return ('NSR') cut-off. The life-of-mine ('LOM') plan, based on this mineral reserve, has an average NSR value of $26.24/t and an average NSR value over the first five years of production of $30.75/t processed. Sisson will be developed as an efficient bulk tonnage operation with mine-site facilities to include: an open pit; ore processing plants; tailings storage facility; and ancillary buildings including offices, shops and warehouses.

Northcliff will undertake value-added processing of tungsten concentrates produced at Sisson by constructing and operating an APT plant at the project site which adds significant economic value to the Sisson Project. Access to the Sisson Project site will be facilitated via existing highways and roads. Power will be provided by provincial power utility NB Power via a new 138 kiloVolt transmission line alongside an existing 345 kV line at an expected cost of $0.066 per kilowatt-hour ('kWh').

The Sisson Project will directly employ 300 people in New Brunswick and up to 500 during the construction phase. The project workforce will be drawn from surrounding towns and cities; no permanent work camp will be required. Initial capital expenditures to construct the Sisson mine, processing facilities, primary and secondary infrastructure are estimated at $579 million (including a 15% contingency).

Construction of the Sisson Project facilities is expected to take 24 months to complete. Mill throughput at Sisson is expected to average 30,000 tonnes per day (or 10.5 Mt per year) for a total of 281 Mt of ore processed over 27 years of operation. Average effective strip ratio is low at 1:1. The average LOM head grade is estimated to be 0.073% WO3 and 220 ppm Mo.

Average LOM recoveries are estimated to be 77% for tungsten and 82% for molybdenum. Average head grade over the first five years of production is estimated to be 0.093% WO3 and 240 ppm Mo. Concentrator recoveries for this five year period are estimated to be 81% for tungsten and 82% for molybdenum after ramp-up of the facility.

Based on the Feasibility Study mine plan, Sisson will produce an estimated annual average of 557,000 mtu WO3 contained in APT and 4.1 million pounds Mo contained in concentrates or a total of 15.0 million mtu WO3 and 111.3 million pounds Mo over 27 years of operation. Average annual production in the first five years is forecast at 689,000 mtu WO3 and 4.4 million pounds Mo.