The NorthMet Deposit Resources & Reserves

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:
  1. Mineral Resources tonnage and grades are rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
  2. 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
  3. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
  4. 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)
  5. Tonnage and grade estimates are in Imperial units. Estimation methodology has not changed since the 2018 NorthMet Technical Report.
  6. 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:
  1. Mineral Reserves tonnage and contained metal are rounded to reflect the accuracy of the estimate; numbers may not add due to rounding.
  2. 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.
  3. All reserves are stated above a $7.98 Net Smelter Return (NSR) cutoff and bound within the final pit design.
  4. January 2018 pit; average waste: ore ratio = 1.47. September 2019 pit; average waste: ore ratio = 1.43
  5. Tonnage and grade estimates are in Imperial units. Estimation methodology has not changed from the NorthMet Technical Report.
  6. 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.