Nordic Mining’s interim report per 30 June 2016
Enclosed please find Nordic Mining’s interim report for the second quarter 2016. The interim report and company updates will be presented tomorrow, Friday 19 August 2016 at 10.00 in the company’s office at Vika Atrium, Munkedamsveien 45 (Entrance A, 5th floor), N-0250 Oslo.
Important events in the second quarter 2016 and year-to-date:
Nordic Rutile (100%) - Engebø project
- Revised resource model and estimates are in process
A core drilling program was completed at Engebø in April 2016. Approximately 6,400 meters were drilled, mainly in the open pit part of the deposit. Core logging and sampling has been completed, and most of the mineral analyses have been carried out and reported. The remaining analytical results are expected shortly. The Competent Person, Mr. Adam Wheeler is working on a revised resource model with updated resource estimates and classifications in accordance with the JORC Code. The results will be ready and reported in September 2016.
- GAP analysis completed for the Engebø pre-feasibility study (“PFS”)
The international engineering and consultancy company Hatch has carried out a GAP analysis as a pre-study for the Engebø PFS. No gaps have been identified which would delay the kick-off of the PFS. The scope of work and budget for the PFS is being considered. Appointment of a technical advisor and coordinator for the PFS process is expected in August 2016. The target is to complete the PFS in Q1 2017.
- Zoning plan and discharge permit are final
In February 2016, the King in Council dismissed an appeal related to the discharge permit. Consequently, the discharge permit is final and without further possibility for appeal. The zoning plan was final and without possibility for appeal directly following the government’s approval in 2015.
- In compliance with European regulations
In a letter to complainants, the EFTA Surveillance Authority (“ESA”) has stated that the Norwegian authorities’ handling of the Engebø permitting process is in compliance with European regulations, including the “Water Framework Directive”. ESA’s final conclusion in the matter is awaited.
Nordic Quartz (100%) - Kvinnherad project
- Independent quartz resource estimates completed
In February 2016, an independent assessment of the Kvinnherad hydrothermal quartz was completed based on information from the drilling program which was executed in the fall 2015. The Competent Persons have estimated significant quartz-containing mineral resources in the inferred and indicated categories. The quartz content varies in the deposit with a substantial part in the massive zone category (>95% quartz content).
Nordic Ocean Resources (80%) – Seabed minerals
- The MarMine exploration cruise has started
On 17 August 2016, MarMine’s exploration vessel “Polar King” departed from Bergen to commence an exploration cruise on the Norwegian part of the Mid-Atlantic Ridge (“MAR”). The expedition team consisting of 25 researchers and around 20 support crew will carry out mineral sampling on the MAR, analytical assessments and subsequent process test work.
Keliber (25%) - Lithium project
- Positive market sentiment for lithium
Over the last months, lithium prices have developed positively and the investor interest for lithium companies has strengthened. The demand for lithium in various applications, in particular related to batteries for electric/hybrid vehicles and energy storage, is expected to grow substantially in the coming years. A tight market balance for battery grade lithium carbonate is expected to continue.
- Definitive feasibility study (“DFS”) has started
Keliber completed a positive PFS for the lithium project in March 2016. The global engineering and consultancy company Hatch has been assigned for the coordination of the DFS which was started in June 2016. The DFS is targeted for completion in Q2 2017.
- Strengthened management team
In June 2016, Pertti Lamberg took up the position as CEO in Keliber. The previous CEO, Olle Sirén continues in the company as Chief Operating Officer. Lamberg has a strong industrial background, latest as a director at Outotec Oyj (Plant Products) and Professor in Geometallurgy at the Luleå University of Technology.
Corporate matters
- Rights issue completed
In June 2016, Nordic Mining completed a rights issue with gross proceeds of approximately NOK 65.9 million. The proceeds were transferred to the Company’s bank account early July 2016.
For further information please contact CFO Lars K. Grøndahl, telephone +47 901 60 941.
Oslo, 18 August 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.