PolyMet Mining Corp. (TSX:POM)(NYSE Amex:PLM)(NYSE MKT:PLM)
("PolyMet" or the "Company") today reported that the British
Columbia Securities Commission (the "BCSC") has reviewed select
matters related to the Company's continuous disclosure record. As a
result of that review, the Company received comments from the BCSC
identifying certain technical disclosure issues, in particular in
the Company's National Instrument 43-101 ("NI 43-101") Technical
Report on the NorthMet Deposit, Minnesota, USA, dated September
2007.
In order to address these issues, PolyMet plans to file a new
Technical Report under NI 43-101, which will fully support the
information set out below. This new Technical Report will be filed
on SEDAR upon completion.
PolyMet controls 100% of the development-stage NorthMet
copper-nickel-precious metals ore-body and the nearby Erie Plant,
located near Hoyt Lakes in the established mining district of the
Mesabi Iron Range in northeastern Minnesota.
NorthMet Feasibility Study, Mineral Resources and Mineral
Reserves
With publication of the Definitive Feasibility Study ("DFS") in
September 2006, summarized in a Technical Report under NI 43-101,
PolyMet established SEC-standard mineral reserves. Proven and
probable mineral reserves were estimated at 181.7 million short
tons grading 0.31% copper, 0.09% nickel and 0.01 ounces per ton
("opt") of precious metals.
In September 2007, PolyMet reported an expansion in these proven
and probable mineral reserves to 274.7 million short tons grading
0.28% copper, 0.08% nickel and 0.01 opt of precious metals
(palladium, platinum and gold). The expanded reserves were not
described in a 43-101-compliant Technical Report.
The reserves lie within measured and indicated mineral resources
that were expanded to 638.2 million tons grading 0.27% copper,
0.08% nickel and 0.01 opt of precious metals (palladium, platinum
and gold). In addition, inferred mineral resources total 251.6
million tons grading 0.28% copper, 0.08% nickel and 0.01 opt of
precious metals. These measured and indicated mineral resources
were reported in a Technical Report in September 2007.
The reserves and mineral resources are based on copper at $1.25
per pound, nickel at $5.60 per pound, and precious metal prices of
$210, $800, and $400 per ounce respectively for palladium, platinum
and gold.
DFS Update
On May 20, 2008 PolyMet reported revised processing plans and
cost estimates for construction and operating costs that improve
the economics and reduce the operating risks. The mine reserves
were unaffected by these changes. The revised plans include:
-- the sale of concentrate during the construction and commissioning of new
metallurgical facilities resulting in a shorter pre-production
construction period (12-15 months) and reduced capital costs prior to
first revenues ($312 million versus $380 million) despite the inclusion
of an estimated $65 million of additional measures to protect the
environment;
-- the new metallurgical facilities to be constructed during initial
production and sales of concentrate. PolyMet anticipates that much of
the additional $290 million of capital costs (for total project capital
of $602 million) will be largely funded from cash flow from initial
operations;
-- mine plans (based on copper at $1.25 per pound) reflect the increase in
reserves and decrease in stripping ratio reported on September 26, 2007,
the use of 240-ton trucks, and owner versus contract mine operations,
and
-- $77 million of mining equipment, which was assumed to be provided by a
mining contractor in the DFS, has been incorporated as an operating
lease in updated operating costs.
Project Improvements
On February 2, 2011 the Company announced that it had further
simplified the proposed metallurgical process, again with no change
to the mine plan, and now plans to build the project in two
phases:
-- Phase I: produce and market concentrates containing copper, nickel,
cobalt and precious metals, and
-- Phase II: process the nickel concentrate through a single autoclave,
resulting in production and sale of high grade copper concentrate, value
added nickel-cobalt hydroxide, and precious metals precipitate products.
Previous plans included a second autoclave and a copper solvent
extraction/electro-winning ("SX-EW") circuit to produce copper
metal along with value added nickel-cobalt hydroxide and precious
metals precipitate products. The changes reflect continued
metallurgical process and other project improvements as well as
improved environmental controls that are being incorporated into
the environmental review process. The advantages, compared with the
earlier plan, include a better return on capital investment,
reduced financial risk, lower energy consumption, and reduced waste
disposal and emissions at site. Approximately $127 million of the
total $602 million capital costs estimated in the May 2008 DFS
Update will not be incurred in this revised plan.
Throughout these changes in 2008 and 2011, there has been no
material change in the mine plan.
About PolyMet
PolyMet Mining Corp. (www.polymetmining.com) is a
publicly-traded mine development company that controls 100% of the
NorthMet copper-nickel-precious metals ore body through a long-term
lease and owns 100% of the Erie Plant, a large processing facility
located approximately six miles from the ore body in the
established mining district of the Mesabi Range in northeastern
Minnesota. PolyMet Mining Corp. has completed its Definitive
Feasibility Study and is seeking environmental and operating
permits to enable it to commence production. The NorthMet project
is expected to require approximately one-and-a-quarter million
hours of construction labor and create approximately 360 long-term
jobs, a level of activity that will have a significant multiplier
effect in the local economy.
POLYMET MINING CORP.
Joe Scipioni, CEO
This news release contains certain forward-looking statements
concerning anticipated developments in PolyMet's operations in the
future. Forward-looking statements are frequently, but not always,
identified by words such as "expects", "anticipates", "believes",
"intends", "estimates", "potential", "possible", "projects",
"plans", and similar expressions, or statements that events,
conditions or results "will", "may", "could", or "should" occur or
be achieved or their negatives or other comparable words. These
forward-looking statements may include statements regarding our
beliefs related to the ability and timing for filing a new
Technical Report, exploration results and budgets, reserve
estimates, mineral resource estimates, work programs, capital
expenditures, actions by government authorities, including changes
in government regulation, the market price of natural resources,
costs, ability to receive environmental and operating permits, job
creation, or other statements that are not a statement of fact.
Forward-looking statements address future events and conditions and
therefore involve inherent known and unknown risks and
uncertainties. Actual results may differ materially from those in
the forward-looking statements due to risks facing PolyMet or due
to actual facts differing from the assumptions underlying its
predictions.
In connection with the forward-looking information contained in
this news release, PolyMet has made numerous assumptions,
regarding, among other things: the geological, metallurgical,
engineering, financial and economic advice that PolyMet has
received is reliable, and is based upon practices and methodologies
which are consistent with industry standards. While PolyMet
considers these assumptions to be reasonable, these assumptions are
inherently subject to significant uncertainties and
contingencies.
PolyMet's forward-looking statements are based on the beliefs,
expectations and opinions of management on the date the statements
are made, and PolyMet does not assume any obligation to update
forward-looking statements if circumstances or management's
beliefs, expectations and opinions should change.
Specific reference is made to PolyMet's most recent Annual
Report on Form 20-F for the fiscal year ended January 31, 2012 and
in our other filings with Canadian securities authorities and the
U.S. Securities and Exchange Commission, including our Report on
Form 6-K providing information with respect to our operations for
the year ended January 31, 2012 for a discussion of some of the
risk factors and other considerations underlying forward-looking
statements.
The TSX has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
Contacts: PolyMet Mining Corp. - Corporate Douglas Newby Chief
Financial Officer +1 (212) 867-1834dnewby@polymetmining.com PolyMet
Mining Corp. - Media LaTisha Gietzen VP Public, Gov't &
Environmental Affairs +1 (218) 225-4417lgietzen@polymetmining.com
PolyMet Mining Corp. - Investors Crystal Agresti +1 (845)
742-8153cagresti@polymetmining.com PolyMet Mining Corp. Alex
Macdougall +1 (226) 663-3000amacdougall@polymetmining.com
www.polymetmining.com
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