Table 1: Mineral Resource Estimate Base Case
Classification | Tonnage | Strip Ratio | Contained Copper Metal* | |||
Total (%)* | Sulfide (%) | Pounds | Metric Tonnes | |||
Inferred | 0.351 | 0.310 | 1.98 | 3,113,000,000 | 1,412,000 |
- The Independent QP for this Mineral Resource Estimate statement is
Yann Camus ,P.Eng ., Geological Services ofSGS Canada Inc. - The effective date is
April 12, 2022 . - CIM (2014) definitions were followed for Mineral Resource Estimate.
- No economic evaluation of the Mineral Resource Estimate has been produced.
- SGS is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issues that could materially affect the Mineral Resource Estimate.
- All reported figures are rounded to reflect the relative accuracy of the estimate. Totals may not add up due to rounding.
- *Total copper includes acid-soluble oxidized copper plus sulfide copper. Contained copper includes sulfide copper only.
Highlights:
- At 1.41 million tonnes (3.1 billion pounds) of contained copper, the
Mount Copper Expansion Project hosts the largest untapped copper resource inEastern North America , strategically located near existing infrastructure in the mining-friendly province ofQuebec . - The mineralization geometry surrounds the former open pit mine with a strip ratio that is currently estimated at 1.98.
- The Whittle pit-constrained Mineral Resource Estimate is limited to the sulfide copper mineralization only that surrounds the Mount Copper historical open pit. All oxide mineralization is being treated as zero value waste at the present time.
- The current 30,000 metre drill program may reduce strip ratio, reduce the oxide/sulfide ratio in the resource model and hence improve the sulfide grade. Additionally, potential for by-product silver and molybdenum exists and will be defined with the current drill program.
Mineral Resource Sensitivity
The following table shows the resources reported at various reasonable cut-off grades, the base case cut-off grade is 0.16% copper and shown in bold:
Table 2: Mineral Resource Estimate at Variable Cut-Off Grades
Classification | Sulfide Copper Cut-Off (%) | Tonnage (Mt) | Copper Tonnage | |||
Total (%) | Sulfide (%) | Pounds | Tonnes | |||
Inferred | 0.12 | 533 | 0.326 | 0.285 | 3,353,000,000 | 1,521,000 |
0.14 | 498 | 0.337 | 0.296 | 3,253,000,000 | 1,475,000 | |
0.16 | 456 | 0.351 | 0.310 | 3,113,000,000 | 1,412,000 | |
0.18 | 414 | 0.366 | 0.324 | 2,957,000,000 | 1,341,000 | |
0.20 | 374 | 0.381 | 0.338 | 2,788,000,000 | 1,265,000 | |
0.30 | 193 | 0.473 | 0.422 | 1,799,000,000 | 816,000 | |
0.40 | 90 | 0.572 | 0.514 | 1,016,000,000 | 461,000 | |
0.50 | 43 | 0.656 | 0.590 | 555,000,000 | 252,000 |
Same footnotes as Table 1 apply to this table.
Potential for Additional Mineral Resources at Gaspé Copper
End-of-mine, existing historical mineral resources at Gaspé Copper that are not NI43-101 compliant are reported in Noranda/Falconbridge Annual Reports 1998-2000,
Deep bulk-tonnage target at
The deep-seated
Table 3: Significant historical drill intersections,
Vertical Drill Hole | From- To (m) | Length (m) | Cu % | Mo % |
30-891 | 1144.8--1737.4 | 592.6 | 0.71 | 0.036 |
30-899 | 1120.7--1834.9 | 714.2 | 0.61 | 0.034 |
30-900 | 1269.0--1728.8 | 459.8 | 0.66 | 0.026 |
30-901 | 1207.0--1534.7 | 327.7 | 0.90 | 0.053 |
30-903 | 1264.0--1581.6 | 317.6 | 0.89 | 0.047 |
30-907 | 1488.0--1590.4 | 102.4 | 0.68 | 0.042 |
30-912 | 1471.6--1833.4 | 361.8 | 0.35 | 0.016 |
30-915 | 1362.5--2096.0 | 733.5 | 0.76 | 0.029 |
30-916 | 1211.6--1710.5 | 498.9 | 0.78 | 0.035 |
30-920B | 1294.5--1817.2 | 522.7 | 0.67 | 0.071 |
30-923 | 1454.8--1757.5 | 302.7 | 0.58 | 0.033 |
30-927 | 1178.1--1563.6 | 385.5 | 0.84 | 0.053 |
30-928 | 1222.9--1719.7 | 496.8 | 0.69 | 0.073 |
30-943 | 1028.0--1850.0 | 822.0 | 0.94 | 0.071 |
Oxide stockpiles
Previous mining at the Mount Copper open pit resulted in the stockpiling of oxidized copper mineralization approximately 1100 metres to the NW of the center of the open pit. The stockpiles cover an area measuring 470,000 square metres with an average height of 25 metres. This material is potentially amenable to heap leaching and SX-EW recovery techniques and could eventually represent a low-cost opportunity for additional copper production if a heap leach operation can be successfully permitted.
High-grade Residual Mineralization Near Past Underground Operations
Residual underground skarn mineralization still remains in the form of pillars in the mined portion of the
Table 4: Significant historical drill intersections,
Vertical Drill Hole | From- To (m) | Length (m) | Cu % | Vertical Drill Hole | From- To (m) | Length (m) | Cu % |
30-787 | 836.7-839.7 | 3.0 | 2.08 | 30-892 | 855.8-859.6 | 3.8 | 3.87 |
30-832 | 1010.1-1031.7 | 21.6 | 2.04 | 30-901 | 1302.1-1313.7 | 11.6 | 3.13 |
30-844 | 1115.6-1126.3 | 10.7 | 4.01 | 30-922 | 1043.9-1053.8 | 9.9 | 4.96 |
30-886 | 1314.7-1329.6 | 14.9 | 3.08 | 30-927 | 1332.6-1350.3 | 17.7 | 1.24 |
Parameters and criteria used for the Mineral Resource Estimate
- General Whittle Pit Parameters Used for the Mineral Resource Estimate include:
Parameter | Value | Unit |
Copper Price | US$ per pound | |
Sell Cost | US$ per pound | |
In- | US$ per tonne mined | |
Processing Cost + Smelter and Transport | US$ per tonne milled | |
General and Administrative | US$ per tonne milled | |
Overall Pit Slope - Rock | 50 | Degrees |
Copper Recovery | 85 | Percent (%) |
Mining loss / Dilution (open pit) | 5 / 3 | Percent (%) / Percent (%) |
Waste Avg. Specific Gravity | 2.73 | Tonnes/cubic metre |
Mineralization Specific Gravity (variable) | Avg. 2.73 | Tonnes/cubic metre |
20 x 20 x 15 | Length, Width, Height (m) |
- The database used in the estimate (in the vicinity of Mount Copper) contains approximately 3,353 drill holes; 283 were deemed unreliable and were rejected. A subset of 641 drill holes were used for the Mineral Resource Estimate with associated composites generated in them. Drill hole data included Noranda (1998 and earlier),
Xstrata (2011-2012) andGlencore Canada (2019). Verification of the data has been possible mostly by verifying the coherence of the information but not its correctness; original logs and laboratory certificates were only available for 2011, 2012 and 2019 drill holes. - Composites of 4 metres were created inside the mineralization volume. A total of 27,895 composites were generated with an average grade of 0.34 %Cu; the composites were capped at 1.80 % total Cu (the copper contained in both sulfides and oxides).
- Cut-off grades are based on a long-term copper price of
US$3.80 per pound and a copper recovery of 85%. - Pit constrained Mineral Resources are reported at a cut-off grade of 0.16 %Cu in sulfide within a conceptual pit shell for the base case.
- Specific gravity values were estimated using data available in the historical drill holes; the average value is 2.73 tonnes/cubic metre.
- The deepest in-pit Mineral Resources reported are at a depth of approximately 600 metres.
- Drilling data was obtained from
Osisko Metals andGlencore Canada Corporation . SGS modelled the mineralization on benches and then meshed it as a volume. The maximum distance between drillholes in the pit volume is approximately 350 metres. - A block model was created with blocks of 20x20x15 m under the current topographic surface and inside the modeled mineralization. Both ordinary kriging (OK) and inverse square distance (ID2) interpolation methods were tested, resulting in no material difference in the Mineral Resource Estimates. Kriging was retained for this estimation.
- The whole database reports total copper, and soluble copper data that are only available for 32 drill holes drilled between 2011 and 2019. It was estimated for the purposes of this report that only the copper contained in sulfides could have economical potential. Therefore, the soluble copper as oxides was removed and significant oxidized zones are all located in the south-west portion of the deposit. The proportion of the copper contained in oxides relative to sulfides is highly correlated to the depth of the mineralization. Therefore, depth from original topographic surface was modeled and used to estimate the percentage of copper contained in oxides for the whole resource estimation.
As recent (post-2011) drilling is almost entirely located in one area of the pit-constrained resource, it is SGS’ recommendation that additional infill drilling be completed across the entire pit volume to 1) improve the oxide model and 2) allow for conversion from the Inferred category to the Measured and Indicated categories.
Cautionary Statement Regarding Mineral Resources
The mineral resources disclosed in this press release conform to NI43-101 standards and guidelines and were prepared by independent qualified persons. The above-mentioned mineral resources are not mineral reserves as they do not have demonstrated economic viability. The quantity and grade of the reported Inferred Mineral Resources are conceptual in nature and are estimated based on limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological grade and/or quality of continuity. An Inferred Mineral Resource has a lower level of confidence relative to a Measured or Indicated Mineral Resource and constitutes an insufficient level of confidence to allow conversion to a Mineral Reserve. It is reasonably expected, but not guaranteed, that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resources with additional drilling. The National Instrument 43-101 Technical Report, including the mineral resources for the Gaspé
Qualified Person
The Mineral Resource Estimate and technical information in this news release has been prepared and approved by
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