Highlights potential for Minnesota’s first
copper-nickel-precious metals mine
Poly Met Mining Inc., a wholly-owned subsidiary of PolyMet
Mining Corp. (together “PolyMet” or the “company”) TSX: POM; NYSE
AMERICAN: PLM – reports it has filed an updated technical report
with Canadian and U.S. securities agencies that reaffirms the
economic and technical viability of the NorthMet
copper-nickel-precious metals project located near Hoyt Lakes,
Minnesota.
The updated NorthMet Technical Report, NI 43-101, dated March
26, 2018, (“2018 Technical Report”) contains plans and cost
estimates for construction and operation of the NorthMet Project.
It updates a Definitive Feasibility Study originally published in
2006 and last updated in 2012 and amended in 2013 that details the
economics for the mine and processing operation.
The report provides technical and economic details for
development of the mining operation in two distinct phases. Phase I
involves development of 225 million tons – nearly one-third of
NorthMet’s known resource – into an operating mine processing
32,000 tons per day over a 20-year mine life. It also includes
rehabilitating the former LTV Steel Mining Company processing
plant.
Capital costs for Phase I are estimated at $945 million and
include refurbishment of the existing primary crushing circuit and
replacing the existing rod and ball mill circuits with a new,
modern semi-autogenous grinding (SAG) mill, ball mill and flotation
circuit. It also includes rail upgrades, mining equipment and a
state-of-the-art wastewater treatment 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. While development of Phase II will be at the
company’s discretion, both phases are currently being permitted and
are included in the Final Environmental Impact Statement and draft
permits. Phase II would increase the project’s capital costs by
approximately $259 million.
“This report reaffirms the technical and financial viability of
the 32,000 tpd case for which the final EIS and draft permits have
been issued. Our focus remains on obtaining final permits under the
32,000 tpd permit case, meeting our environmental and financial
assurance obligations under the terms of those permits, and
obtaining the necessary financing to build the project,” said Jon
Cherry, president and CEO. “We are making significant progress on
all of those fronts.”
Technical Report Key Points
- Total Proven and Probable mineral
reserves for the project are estimated to be 255 million tons
within the pit footprint evaluated in the FEIS and draft permits,
with recovered copper equivalent grade of 0.584 percent (after
dilution and recoveries).
- Measured and Indicated resources total
649 million tons, with recovered copper equivalent grade of 0.496
percent.
- Inferred Resources are estimated at 509
million tons, with an estimated recovered copper equivalent grade
of 0.489 percent.
- After tax, net present value of future
cash flow discounted at 7 percent is $173 million for Phase I, and
$271 million inclusive of Phase II.
- After tax, internal rate of return is
9.6 percent for Phase I and 10.3 percent inclusive of Phase
II.
- Improvements in metal price assumptions
(based on market consensus pricing) has helped offset increases in
capital, operating and financial assurance expenses.
- Under Phase I, which only includes
revenues based on concentrate sales, payable metals in the
concentrate are estimated at 1.1 billion pounds of copper, 133
million pounds of nickel, a combined 1.1 million ounces of
platinum, palladium and gold, 1.0 million ounces of silver and 5.6
million pounds of cobalt.
- Under Phase II, payable metals in
enriched copper concentrates and products from the
hydrometallurgical plant are estimated at 1.2 billion pounds of
copper, 174 million pounds of nickel, 1.6 million combined ounces
of platinum, palladium and gold, 1.0 million ounces of silver and
6.2 million pounds of cobalt. Palladium is the predominant precious
metals group (PGM) product, totaling 1.2 million ounces.
A summary of PolyMet’s mineral reserves and mineral resources is
provided in the tables below. Please refer to the 2018 Technical
Report for important disclaimers on the viability or otherwise of
reported mineral resources.
Mineral Reserve Statement – January
2018
Class Tonnage
(x 1,000)
Grades (Diluted) Copper Nickel
Platinum Palladium Gold
Cobalt Silver NSR
Cu-Eq (%) (%)
(ppb) (ppb) (ppb)
(ppm) (ppm) $/ton
(%) Proven 121,849 0.308 0.087
82 282 41 74.81 1.11 19.87
0.612 Probable 132,820 0.281 0.081
78 256 37 74.06 1.02
18.02 0.559
Total 254,669
0.294 0.084 80 268
39 74.42 1.06
18.90 0.584
Notes:
(1)
Mineral reserve tonnage and contained
metal have been rounded to reflect the accuracy of the estimate,
and numbers may not add due to rounding.
(2)
All reserves are stated above a $7.98 NSR
cutoff and bound within the final pit design.
(3)
Tonnage and grade estimates are in
imperial units.
(4)
Total tonnage within the pit is 628,499
ktons; average waste: ore ratio = 1.47.
(5)
Cu-Eq values are based on the metal prices
in Table 15-2 and total mill recoveries in Table 15-3 of the 2018
Technical Report and diluted mill feed.
(6)
Copper equivalent (CuEq) = ((Cu head grade
x recovery x Cu Price) + (Ni head grade x recovery x Ni Price) +
(Pt head grade x recovery x Pt Price) + (Pd head grade x recovery x
Pd Price) + (Au head grade x recovery x Au Price) + (Co head grade
x recovery x Co Price) + (Ag head grade x recovery x Ag Price)) /
(Cu head grade x recovery x Cu Price).
(8)
NSR values include post property
concentrate transportation, smelting and refining costs and payable
metal calculations.
Summary Mineral Resource Statement for
the NorthMet Project Inclusive of Mineral Reserves
Class Tonnage
(Mt)
Grades (Undiluted) Copper Nickel
Platinum Palladium Gold
Cobalt Silver NSR
Cu-EQ (%) (%)
(ppb) (ppb) (ppb)
(ppm) (ppm) $/ton
(%) Measured 237.2 0.270 0.080
69 241 35 72 0.97 19.67
0.541 Indicated 412.2 0.230 0.070 63
210 32 70 0.87 16.95
0.470 M&I 649.3 0.245 0.074 65
221 33 71 0.91 17.94
0.496 Inferred 508.9 0.240 0.070 72
234 37 66 0.93 17.66
0.489 Source: Hard Rock Consulting, LLC, January 2018
Notes:
(1)
Mineral resources are not mineral reserves
and do not have demonstrated economic viability.
(2)
All resources are stated above a $7.35 NSR
cut-off. Cut-off is based on estimated mining, processing and
G&A costs. Metal Prices and metallurgical recoveries used for
the development of cut-off grade are presented in Table 14-33 of
the 2018 Technical Report.
(3)
Mineral resource tonnage and contained
metal have been rounded to reflect the accuracy of the estimate,
and numbers may not add due to rounding.
(4)
Cu-Eq (copper equivalent grade) is based
on the mill recovery to concentrates and metal prices presented in
Table 14-33 of the 2018 Technical Report.
(5)
The Measured and Indicated mineral
resources are inclusive of the mineral reserves.
In addition to updating the economics of the 225 million ton,
32,000 tpd case for which draft permits have been released, the
report evaluates preliminary economic assessments of mining an
intermediate case of 290 million tons of classified resources (96.5
percent Measured and Indicated and 3.5 percent Inferred) at a rate
of 59,000 tpd, and a full-scale case that would mine 730 million
tons (65.4 percent M&I and 34.6 percent Inferred) at a
production rate of 118,000 tpd.
The 59,000 tpd and 118,000 tpd upside cases suggest potential
valuations that range from $750 million to more than $2 billion
(NPV) and IRRs that range from 18 percent to 24 percent (including
both Phase I and II). The 59,000 tpd and 118,000 tpd upside cases,
however, would be subject to additional engineering and
environmental review and permitting. Any such opportunities would
be subject to various regulatory requirements and would require
additional capital investment. The included Inferred Resources
would have to be successfully converted to Measured and Indicated
before any prefeasibility studies could commence.
“We felt it important to quantify at a preliminary level what
the potential economics of the entire NorthMet resource could be as
we move forward with plans for the 32,000 tpd case,” Cherry
said.
“We have already invested 13 years and more than $300 million in
this project – most of that spent in Minnesota – and we are now
poised to bring nearly $1 billion in new investment, hundreds of
new jobs, and generate hundreds of millions of dollars in annual
economic benefits for the region,” Cherry said. “We know how
important this project is to the Iron Range and we have to do it
right.”
For greater certainty, the preliminary economic assessments for
the two upside cases referred to herein are preliminary in nature,
include inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves, and there is no certainty that the results of these
preliminary economic assessments will be realized. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability and there is no certainty that mineral resources
will become mineral reserves.
The NorthMet Technical Report, NI 43-101, dated March 26, 2018,
was produced by Tucson, Arizona-based M3 Engineering &
Technology Corporation. The report is based on detailed engineering
studies as well as the Final Environmental Impact Statement and
recently released draft environmental permits for NorthMet. PolyMet
also retained Independent Mining Consultants, SENET, Hard Rock
Consulting and Barr Engineering to contribute to the study. The
report has been filed on SEDAR and EDGAR and is on the company’s
website at www.polymetmining.com.
This release has been reviewed and approved by: Zachary Black,
SME-RM, Hard Rock Consulting, Jennifer Brown, P.G., Hard Rock
Consulting; Nicholas Dempers, Pr.Eng., SAIMM, SENET; Thomas
Drielick, P.E., M3 Engineering; Art Ibrado, P.E., M3 Engineering;
Erin Patterson, P.E., M3 Engineering; Thomas Radue, P.E., Barr
Engineering Co.; and, Herbert Welhener, SME registered member,
Independent Mining Consultants; who are all Independent Qualified
Persons within the meaning of NI 43-101.
Investor call
PolyMet will host an investor call and webcast to discuss the
updated feasibility study at 10 a.m. Central on Wednesday, March
28, 2018.
To join the call, please dial 1.877.705.6003 (U.S.) or
1.201.493.6725 (international) approximately 15 minutes prior to
start time. The earnings call and slide presentation also will be
broadcast live over the internet and can be accessed on the
Investor Relations page of the company’s website at
www.polymetmining.com.
At the time of the call, click on this link to view the
presentation: http://public.viavid.com/index.php?id=128967.
About PolyMet
PolyMet Mining Corp. (www.polymetmining.com) is a publicly
traded mine development company that owns 100 percent of Poly Met
Mining, Inc., a Minnesota corporation that controls 100 percent of
the NorthMet copper-nickel-precious metals ore body through a
long-term lease and owns 100 percent of the former LTV Steel Mining
Company site, a large processing facility located approximately six
miles from the ore body in the established mining district of the
Mesabi Iron Range in northeastern Minnesota. The NorthMet Final
Environmental Impact Statement was published in November 2015,
preparing the way for decisions on permit applications. NorthMet is
expected to require approximately two million hours of construction
labor, create approximately 360 long-term jobs directly, and
generate a level of activity that will have a significant
multiplier effect in the local economy.
PolyMet Disclosures
This news release contains certain forward-looking statements
and forward-looking information concerning anticipated developments
in the operations of PolyMet in the future, including, without
limitation, the statements regarding the ongoing development of
PolyMet’s NorthMet Project and the results of the feasibility study
on the permitted base case for the NorthMet Project as well as
results of the preliminary economic assessments (PEA) on two
expansion cases for the NorthMet Project. 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 PolyMet’s beliefs
related to the expected project development timelines, exploration
results and budgets, reserve estimates, mineral resource estimates,
continued relationships with current strategic partners, work
programs, estimated capital and operating costs and expenditures,
actions by government authorities, including changes in government
regulation, the market price of natural resources, estimated
production rates, ability to receive and timing of environmental
and operating permits, estimated construction costs, job creation
and other economic benefits, or other statements that are not a
statement of fact. In addition, and for greater certainty, the
results of (i) the feasibility study on the permitted base case of
the NorthMet Project, and (ii) the PEAs on the two expansion cases
for the NorthMet Project constitute forward-looking information,
and include future estimates of internal rates of return, net
present value, future production, estimates of cash cost, proposed
mining plans and methods, mine life estimates, cash flow forecasts,
metal recoveries, and estimates of capital and operating costs.
Forward-looking statements and forward-looking information
address future events and conditions and therefore involve inherent
known and unknown risks and uncertainties. These risks,
uncertainties and other factors include, but are not limited to,
adverse general economic conditions, operating hazards, inherent
uncertainties in interpreting engineering and geologic data,
fluctuations in commodity prices and prices for operational
services, government regulation and foreign political risks,
fluctuations in the exchange rate between Canadian and US dollars
and other currencies, as well as other risks commonly associated
with the mining industry. Actual results may differ materially from
those in the forward-looking statements and forward-looking
information 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, that 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, that PolyMet will be
able to obtain additional financing on satisfactory terms to fund
the development and construction of the NorthMet Project and that
the market prices for relevant commodities remain at levels that
justify construction and/or operation of the NorthMet Project.
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 risk factors and other
considerations underlying forward-looking statements discussed in
PolyMet’s most recent Annual Report on Form 40-F for the
fiscal year ended January 31, 2017, 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 and nine
months ended October 31, 2017.
The Annual Report on Form 40-F also contains the company’s
mineral resource and other data as required under National
Instrument 43-101.
The TSX has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180327005751/en/
PolyMet Mining Corp.MediaBruce Richardson, +1
651-389-4111Corporate
Communicationspolymetcommunications@polymetmining.comorInvestor
RelationsTony Gikas, +1 651-389-4110Investor
Relationsinvestorrelations@polymetmining.com
Polymet Mining (TSX:POM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Polymet Mining (TSX:POM)
Historical Stock Chart
From Jul 2023 to Jul 2024