Increase of the resource base for the Engebø rutile project
New resource estimations for the Engebø rutile deposit have been made based on a recent core-drilling program of more than 6,300 meters. The revised estimates show a significant increase of the qualified resources, higher titanium dioxide grades and substantial quantities of garnet. Estimated operating parameters indicate a reduction of the TiO2 cut-off grade.
Main results
The total estimated resources in the Measured and Indicated categories are 93 million tonnes. This is an increase of 61 million tonnes compared with previous estimates. The average TiO2 grade has increased confirming the deposit’s high rutile content. The garnet grade is approximately 44%, documenting that a substantial amount of garnet is hosted in the deposit.
The table below summarises the 2016 resource estimations compared to the 2008 scoping study figures.
The resource estimations have been carried out by Competent Person Adam Wheeler. A technical report will be published on the company’s webpage www.nordicmining.com. The technical information in this stock market release has been approved by Mr. Wheeler.
Comments from management
Exploration Manager Mona Schanche: ”The large amount of data gathered from the drilling program and the updated resource model provides valuable new knowledge about the deposit. We are pleased with the documented increase of the resource base and the high rutile and garnet grades.”
Managing Director of Nordic Rutile AS, Thomas B. Addison: “The information from the drilling program lays an important foundation for the Pre-Feasibility Study. It provides a solid geological basis for the extraction planning and the further process optimisation.”
Drilling program and analytical methods
The aim of the 2016 drilling program was to update the resource model that was based on historical drilling as published by Nordic Mining in 2008. The historical drilling (approximately 15,000 meters) was carried out by DuPont/Conoco in 1996/1997 and was concentrated in the western part of the deposit. The 2016 drilling focused on the central deposit related to the first production stage of open pit mining. In addition, two holes were drilled in the eastern part of the deposit to investigate the eastern continuation of the ore body.
The drilling campaign included recovery of 6,348 meters of drill cores, collection of 77 surface samples and outcrop mapping. The cores were logged and sampled at the company’s core storage facility in Naustdal. 1,517 whole rock chemical analyses (XRF) and 336 rutile specific analyses (ME-ICP41) were carried out by ALS Minerals in Sweden. QEMSCAN (Scanning electron microscope analysis) was done by SGS Canada for 68 samples to investigate mineralogical, textural and petro-graphical variations within the deposit. Garnet was successfully quantified by correlating QEMSCAN data with iron content from chemical assays.
As part of the drilling program, historical datasets have been re-assessed and old drill cores were re-logged and re-analysed. The results show a good correlation between new and historical data and thereby fully validate the historical datasets.
Conceptual pit optimisation
A pit optimisation run has been made within the limits of the regulated area permitted for open pit mining. The pit optimisation shows that approximately 40 million tonnes of mineralised material can be mined in the open pit, of which approximately 38 million tonnes are in the Measured and Indicated resource categories. The currently estimated economic and operating parameters indicate a breakeven cut-off grade of 1.91% TiO2. The parameters used for the optimisation work are at a conceptual level and will be studied in greater detail as part of the Pre-Feasibility Study.
Resource potential at lower cut-off grade
The resource at Engebø can be divided in roughly 3 categories: high grade Ferro eclogite (> 3% TiO2), medium grade Transitional eclogite (3-2% TiO2) and low grade Leuco eclogite (<2% TiO2). The open pit breakeven cut-off supports the use of lower cut-offs for resource evaluation, and this will include more material of the Transitional eclogite category. The estimations below show the overall in-situ resources at a cut-off grade of 2% TiO2.
Resource illustrations - attachment
The enclosed illustrations show the models for the resource categories as modelled in 2016 and 2008. There is an increase in the classified resources in the eastern part of the deposit where additional Inferred resources (potential ore) have been classified. The central part of the deposit (open pit area) previously contained mostly Inferred resources, and now this area has predominantly Measured and Indicated resources. The western part of the deposit has also been enhanced with higher resource categories.
Additional information
All results from the drilling campaign, modelling and resource estimations are further described in the technical report that will be available on the webpage: www.nordicmining.com.
For questions please contact Exploration Manager Mona Schanche, telephone +47 922 81 253.
Oslo, 12 September 2016
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.
Through the subsidiary Nordic Rutile AS Nordic Mining is undertaking a large-scale project development at Engebøfjellet in Sogn and Fjordane 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. Nordic Mining has rights for exploration and production of high-purity quartz in Kvinnherad in Hordaland and develops the project through its subsidiary Nordic Quartz AS. Nordic Mining’s associated company Keliber Oy in Finland plans to start mining of lithium bearing spodumene and production of lithium carbonate. Nordic Mining holds exploration rights on the Øksfjord Peninsula in Troms and Finnmark, where the Company has discovered a prospective area of sulphide mineralisation. Through the subsidiary Nordic Ocean Resources AS, Nordic Mining is exploring opportunities related to seabed mineral resources.
Nordic Mining is listed on Oslo Axess (OAX: NOM).