PolyMet Mining Corp. (TSX:POM)(NYSE MKT:PLM)(NYSE Amex:PLM)
("PolyMet" or the "Company") has filed an updated Technical Report
under National Instrument 43-101 ("NI 43-101") on its NorthMet
copper-nickel-precious metals project located in the established
Mesabi Iron Range mining district in northeastern Minnesota. The
43-101, dated October 12, 2012 has been filed on SEDAR and EDGAR
and is on the Company's website at www.polymetmining.com.
Pierre Desautels, P.Geo and Gordon Zurowski, P.Eng of AGP Mining
Consultants Inc. are Qualified Persons for the purposes of National
Instrument 43-101 and has reviewed and approved the information of
a scientific nature contained in this news release.
PolyMet News Release 2012-6 (June 14, 2012) reported that, in
response to a routine review by the British Columbia Securities
Commission ("BCSC") of the Company's continuous disclosure, PolyMet
would update the NI 43-101 to incorporate the Definitive
Feasibility Study ("DFS") prepared by Bateman Engineers in 2006,
subsequent expansion of mineral resources and mineral reserves,
modifications to the process flow sheet, and enhanced plans for
protecting the environment.
Project Development Overview
With publication of the DFS in September 2006, PolyMet
established SEC-standard mineral reserves. 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). These expanded reserves had not been described in a NI
43-101 compliant Technical Report, which has now been addressed in
the October 2012 Technical Report.
At a Net Metal Value (NMV) cut-off of US$7.42, the reserves lie
within measured and indicated mineral resources of 694 million tons
grading 0.27% copper, 0.08% nickel and 0.01 opt of precious metals.
In addition, inferred mineral resources total 230 million tons
grading 0.27% copper, 0.08% nickel and 0.01 opt of precious
metals.
The NMV is calculated using copper price at $1.25 per pound,
nickel at $5.60 per pound, and precious metal prices of $210, $800,
and $400 per ounce respectively for palladium, platinum and gold
with refining, insurance and transport cost, recovery ore to
concentrate and recovery concentrate to metal taken into
account.
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Refining,
Metal Insurance Recovery
Price and Transport Ore -
Metal in Model Unit ($) ($) Concentrate
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Copper (%) US$/lb 1.25 0.00 94.2%
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Nickel (%) US$/lb 5.60 1.40 72.5%
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Cobalt (ppm) US$/lb 15.25 6.10 42.0%
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Platinum (ppb) US$/troy oz 800.00 18.00 76.9%
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Palladium (ppb) US$/troy oz 210.00 17.00 79.6%
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Gold (ppb) US$/troy oz 400.00 9.50 75.7%
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2008 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.
Both the DFS Update and the 2011 Project Improvements are
described in the October 2012 Technical Report.
Future Technical Report Updates
PolyMet intends to complete a full project update, incorporating
the 2011 Project Improvements and final environmental engineering
design controls as well as capital and operating costs, once
detailed engineering design has been finalized. These environmental
engineering designs include modular reverse osmosis (RO) water
treatment facilities and other engineering controls that
demonstrate NorthMet meets state and federal standards, including
Minnesota's stringent water quality standards. PolyMet will
incorporate these changes into a new Technical Report under 43-101,
which it expects to publish in early 2013.
About PolyMet
PolyMet Mining Corp. (www.polymetmining.com) is a
publicly-traded mine development company that owns 100% of Poly Met
Mining, Inc., a Minnesota corporation that controls 100% of the
NorthMet copper-nickel-precious metals ore bodyrr 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. Poly Met Mining, Inc. 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 two million hours of
construction labor, creating approximately 360 long-term jobs, a
level of activity that will have a significant multiplier effect in
the local economy.
POLYMET MINING CORP.
Jon Cherry, 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 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.
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 three months ended July 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 (651) 389-4105dnewby@polymetmining.com PolyMet
Mining Corp. - Media LaTisha Gietzen VP Public, Gov't &
Environmental Affairs +1 (218) 225-4417lgietzen@polymetmining.com
PolyMet Mining Corp. - Investors Jenny Knudson VP - Investor
Relations +1 (651) 389-4110jknudson@polymetmining.com
www.polymetmining.com
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