NorthMet comprises 290 million tons of proven and probable reserves grading 0.288% copper and 0.083% nickel. It has Measured and Indicated mineral resources of 795 million tons grading 0.234% copper and 0.07% nickel and 457.7 million tons of Inferred material at 0.236% copper and 0.067% nickel.
For assumptions and explanations, see “Cautionary note to U.S. investors” regarding disclosure on Measured and Indicated Mineral Resources here.
Northmet Resource
Grades (Undiluted)
CLASS
Tonnage (x 1,000)
Copper (%)
Nickel (%)
Platinum (ppb)
Palladium (ppb)
Gold (ppb)
Cobalt (ppm)
Silver (ppm)
MEASURED
351.5
0.240
0.073
64
222
33
71
0.88
INDICATED
443.7
0.230
0.069
61
207
30
68
0.87
M + I
795.2
0.234
0.071
62
214
31
69
0.87
INFERRED
457.7
0.236
0.067
63
225
32
56
0.87
Notes:
Mineral Resources tonnage and grades are rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
The 2019 Mineral Resources estimate is effective as of July 2019. The QP for the estimate is Zachary J. Black, RM-SME, of Hard Rock Consulting, LLC. The mineral resources statement for 2018 is extracted from the NorthMet Technical Report
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Mineral Resources are reported inclusive of Mineral Reserves at $6.34 Net Smelter Return (NSR) cut-off. The Mineral Resources are considered amenable to open pit mining and are reported within an optimized pit shell. Pit optimization is based on total ore costs of $5.49/ton processed, mining costs of $1.15/ton at surface and increasing $0.02/ton for every 50 feet of depth, and pit slope angles of 48 degrees. Tonnages are reported in short tons (2000lbs)
Tonnage and grade estimates are in Imperial units. Estimation methodology has not changed since the 2018 NorthMet Technical Report.
The risks that could materially affect the development of the NorthMet asset are set out under the heading “Risk Factors” in the company’s Annual Information Form dated March 28, 2019.
Northmet Reserves
Grades (Undiluted)
CLASS
Tonnage (Mt)
Copper (%)
Nickel (%)
Platinum (ppb)
Palladium (ppb)
Gold (ppb)
Cobalt (ppm)
Silver (ppm)
PROVEN
173,495
0.288
0.083
75
270
39
74.21
1.05
PROBABLE
116,904
0.288
0.081
76
256
37
73.56
1.08
TOTAL
290,399
0.288
0.083
75
264
39
73.95
1.06
Notes:
Mineral Reserves tonnage and contained metal are rounded to reflect the accuracy of the estimate; numbers may not add due to rounding.
The 2019 Mineral Reserves estimate is effective as of September 2019. The QP for the estimate is Herb Welhener, RM-SME, of Independent Mining Consultants, Inc.
All reserves are stated above a $7.98 Net Smelter Return (NSR) cutoff and bound within the final pit design.
January 2018 pit; average waste: ore ratio = 1.47. September 2019 pit; average waste: ore ratio = 1.43
Tonnage and grade estimates are in Imperial units. Estimation methodology has not changed from the NorthMet Technical Report.
The risks that could materially affect the development of the NorthMet asset are set out under the heading “Risk Factors” in the company’s Annual Information Form dated March 28, 2019.
Northmet Production
Life of mine average annual production
UOM
Phase I*
Phase I & II*
COPPER
000 lbs
54,792
57,754
NICKEL
000 lbs
6,646
8,711
COBALT
000 lbs
281
311
PLATINUM
koz
8
14
PALLADIUM
koz
42
59
GOLD
koz
2
4
SILVER
koz
48
48
Average annual production (First 5 full years)
UOM
Phase I*
Phase I & II*
COPPER
000 lbs
66,748
69,384
NICKEL
000 lbs
7,867
9,647
COBALT
000 lbs
333
352
PLATINUM
koz
12
19
PALLADIUM
koz
58
73
GOLD
koz
3
6
SILVER
koz
68
68
*Phase I involves development of an operating mine processing 32,000 tons of ore per day and rehabilitating the former LTV Steel Mining Company processing plant. Phase II involves construction and operation of a hydrometallurgical plant to treat nickel sulfide concentrates into upgraded nickel-cobalt hydroxide and recover additional copper and platinum-group metals.
