The approximate market value of the Transaction including shares and cash is
The Transaction noted herein is subject to completion of due diligence, approval of the
We believe there is a lot of optionality and upside to Kenbridge as the exploration potential at depth is exciting. If the deposit's depth potential is realized, there could be a meaningful extension to the potential life-of-mine. Furthermore, the Kenbridge deposit could be positioned to quickly commence production once permitted, given its manageable initial capital cost of
'There are very few nickel development projects like Kenbridge that could potentially be brought into production over the next three to five years, so we are thrilled to get exposure to two critical metals - nickel and copper - through this acquisition.'
Kenbridge Project Highlights
Located in a politically stable and mining-friendly region (
The project has a 622-meter (m) three compartment shaft with two underground level workstations and has never been mined.
Mineral Resource estimate1 completed by
Inferred Mineral Resources of 1.014 million tonnes at 1.47% Ni, 0.67% Cu and 0.011% Co, containing 32.7 Mlb of Ni, 14.9 Mlb of Cu and 0.2 Mlb of Co.
Preliminary Economic Assessment2 ('PEA') forecasts the following:
Nine-year mine plan based on a 1,500-tonne-per-day underground mining and processing operation. The mine plan mines the potentially extractable tonnage of Measured, Indicated and Inferred Mineral Resources which assumes overall dilution of 47% (18% internal dilution from stope designs plus 29% external dilution) and a 94% mine recovery factor.
Life-of-mine revenues from net smelter returns of
Life-of-mine operating costs of
After-tax net present value using a 5% discount rate of
Tartisan is progressing environmental baseline studies as part of its permitting and mining approval process towards its plan to commence nickel-copper production in approximately three years3.
Tartisan continues to develop positive relationships with the surrounding First Nations communities through its First Nations consulting partner
The PEA is considered preliminary in nature, contains numerous assumptions, and includes Inferred Mineral Resources that are considered too speculative, geologically, to have the economic considerations applied that would enable them to be classified as Mineral Reserves. There is no certainty that the results of the PEA (or any update thereto) will be realized. No Mineral Reserves have been estimated for Kenbridge. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are that part of the Mineral Resource for which quantity and grade, or quality are estimated based on limited geologic evidence and sampling, which is sufficient to imply but not verify grade or quality continuity. Inferred Mineral Resources may not be converted to Mineral Reserves. It is reasonably expected, though not guaranteed, that most Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
Kenbridge Project Overview
As of
Geology
The Kenbridge Deposit is an Archean-aged deposit hosted in gabbro and gabbro breccia. Mineralization (pyrrhotite, pentlandite, chalcopyrite +/- pyrite) occurs within massive to net-textured and disseminated sulphide zones, primarily in gabbro breccia with smaller amounts in gabbro and talc schist. Nickel grades within the deposit are proportional to the total amount of sulphide, with rare massive sulphide zones exhibiting the highest grades. Mineralization undergoes rapid changes in thickness and grades. At least three sub-parallel mineralized zones were intersected in drilling and range in thickness from 2.6 to 17.1 m. Kenbridge is classified as a gabbro-related nickel sulphide deposit.
Exploration
The deposit has been explored by several major and junior mining companies since 1936. There have been numerous drill programs and metallurgical programs and, in 1952, a 622-m shaft was installed, and two levels developed at 107 m and 152 m below the surface.
Since 1937, 667 surface and underground holes totaling 99,741 m have been completed on the property. These holes defined a zone with surface dimensions of approximately 250 m by 60 m extending approximately 900 m to depth.
Deep drilling suggests further potential of the deposit at depth although this portion of the deposit is not well defined. The deepest holes to date are approximately 1100 meters. At least three sub-parallel mineralized zones were intersected in the 2021 Tartisan drill program and range in thickness from 2.6 m to 17.1 m. The deposit remains open at depth and along strike.
Besides the Kenbridge Deposit, there are several untested exploration targets on the property, such as the Kenbridge North target that has similar geophysical characteristics to the Kenbridge Deposit.
Mining and Processing
The PEA describes an underground development scenario and envisages a total of 4.52 million tonnes (Mt) of process plant feed over a nine-year mine life, with an average metal content of 0.81% Ni, 0.40% Cu and 0.01% Co. It is expected to operate at a daily rate of 1,500 tonnes per day, for a nominal production rate of approximately 528 thousand tonnes per annum.
The existing shaft extends to a depth of approximately 622 m from surface with 13 shaft stations cut approximately every 46 m. The plan would be to rehabilitate, expand, and refit the shaft with a new hoist and headframe to support mining in the upper areas above the shaft bottom, and later hoist material excavated from areas below the extent of the shaft.
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This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
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