Engebø Rutile and Garnet; update on feasibility study

Following from the successful completion of the prefeasibility study (PFS) for the Engebø rutile and garnet project in October 2017, a comprehensive work program related to the definitive feasibility study (DFS) is now progressing. The work program includes i.a. geological and geotechnical assessments, process optimisation and verification, mine design and detailed engineering and preparations related to project execution.

The international engineering and consultancy company Hatch has been appointed for technical advisory services and coordination of the DFS. Hatch was also the technical advisor and coordinator of the PFS. An update of ongoing activities and work program is summarised below.

Drilling program finalised

A limited drilling program was carried out at Engebø from mid-January to mid-February 2018. The drilling went according to plan. In total, 1,581 meters was drilled in 10 drill holes. The aim of the drilling was to increase the knowledge of the ore body and the geotechnical conditions in the open pit. 

Drill core logging is completed and drill cores are being chemically assayed. The data will be basis for updating of the current block model and ore classification. Qualified Person, Adam Wheeler is responsible for this work, and will complete an updated resource estimate within April 2018. 

The international mining consultancy company, SRK has been contracted for geotechnical, hydrogeological and structural logging and modelling based on drill hole data. SRK will make recommendations on slope angles and stability conditions for the open pit and underground infrastructure.

The resource and pit stability assessments will form a basis for Hatch’s final open pit design and mine schedule, assessing ore and waste rock tonnages from the open pit mining operation. Consideration of measures to optimise the mine plan is ongoing.

Process optimisation and flowsheet design

The DFS process test work is divided in three stages 1) process optimisation, 2) repeatability demonstrations, and 3) ore variability testing.

The process optimisation test work is well under way. Tests carried out at IHC Robbins (IHC) in Australia have been successful in making cost saving changes to the flowsheet and confirming some critical process parameters.

Ongoing work is carried out at IHC and Light Deep Earth (LDE) in South Africa to investigate process solutions to recover additional coarse garnet. The coarse garnet distribution in the deposit is complex. Optimal crushing and grinding, as well as maximising recovery is important to secure stable output volumes of coarse garnet from the process plant. After process optimisation, bulk samples will be processed at IHC and LDE for repeatability and variability testing.

Process test work is currently on the critical path for the DFS. The assurance of an optimised, cost efficient and robust flowsheet as the basis for engineering and detailed design is crucial. The DFS timeline will be reviewed based on the progress of critical path activities.

Strengthening of organisation and project execution planning

Recruitment processes have been initiated to strengthen the Engebø project team both on project management as well as for various discipline areas.

The Norwegian engineering and architectural advisory company Asplan Viak has been contracted to coordinate the planning of fresh water supply to the processing plant, the re-direction of county road 611 and various detailing of buildings and infrastructure at the process plant and mining operation areas.

In cooperation with the Directorate for Cultural Heritage and the University Museum in Bergen, plans have been established for archeological investigations at selected locations within the regulated industrial area. The purpose is to register possible cultural heritage footprints in accordance with regulations and prior to construction start-up. The investigations will be executed in the second half of 2018.

Nordic Mining aims to secure structured and effective work programs on all preparatory issues that are important for the overall progress plan for the project. Dialogue meetings and good communication with Naustdal municipality and other authorities, as well as the landowners and other stakeholders, are vital for the implementation of the project.

For further information please contact CEO Ivar S. Fossum, telephone +47 93096850.

Oslo, 19 March 2018
Nordic Mining ASA

Nordic Mining ASA (www.nordicmining.com) 

Nordic Mining ASA ("Nordic Mining" or "the Company") is a resource company with focus on high-end industrial minerals and metals in Norway and internationally. The Company's project portfolio is of high international standard and holds a significant economic potential. The Company's assets are in the Nordic region.

Nordic Mining is undertaking a large-scale project development at Engebø on the west coast of Norway where the Company has rights and permits to a substantial eclogite deposit with rutile and garnet. Permits for the project have been granted by the Norwegian government, and a prefeasibility study was completed in October 2017. Nordic Mining's associated company Keliber in Finland is in the process of completing its definitive feasibility study and preparing for production of lithium carbonate. Nordic Mining has rights for exploration and production of high-purity quartz in Kvinnherad in Norway. Further, the Company holds exploration rights at Reinfjord in northern Norway where a prospective area of sulphide mineralisation has been discovered. Nordic Mining is also exploring opportunities related to seabed mineral resources.

Nordic Mining is listed on Oslo Axess with ticker symbol "NOM".


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