Sherritt International Corporation (“Sherritt”) (TSX:S), a world leader in the mining and refining of nickel and cobalt from lateritic ores, today filed on SEDAR an updated National Instrument 43-101 Technical Report (the “2019 Technical Report”) for the Moa Joint Venture (“Moa JV”) that confirms the Moa JV’s current Mineral Reserve estimates and outlines increased Mineral Resource estimates with the potential to increase Moa’s mine life.
“Backed by updated technical and economic data, the 2019 Technical Report confirms that Moa is a low-cost, long-life asset with the potential to significantly increase the mine life,” said David Pathe, President and CEO of Sherritt International. “With a minimum 15-year mine life, Moa favorably positions Sherritt to capitalize on the growing demand for electric vehicle batteries as a supplier of high quality, ethically-sourced Class 1 nickel and cobalt.”
The 2019 Technical Report, which was prepared in compliance with National Instrument 43-101 – Standards for Disclosure for Mineral Projects (“NI 43-101”), was prepared for Sherritt by CSA Global with an effective date of December 31, 2018. The 2019 Technical Report updates technical and economic data referenced in Sherritt’s 2018 Annual Information Form (“AIF”) dated February 13, 2019.
Highlights of Mineral Reserve and Resource Estimates
A comparison of the mineral reserve estimates in the 2018 AIF and 2019 Technical Report is summarized in the following table:
| Reserve Type | Million of Tonnes | % of Nickel | ‘000 tonnes Nickel | % of Cobalt | ‘000 tonnes Cobalt |
|---|---|---|---|---|---|
| AIF 2018 Proven | 52.7 | 1.15 | 605.7 | 0.12 | 64.0 |
| AIF 2018 Probable | 2.2 | 1.13 | 25.1 | 0.11 | 2.4 |
| AIF 2018 Total | 54.9 | 1.15 | 630.7 | 0.12 | 66.4 |
| 2019 Technical Report Proven | 43.6 | 1.17 | 510.0 | 0.13 | 56.9 |
| 2019 Technical Report Probable | 9.8 | 1.14 | 111.7 | 0.12 | 11.8 |
| 2019 Technical Report Total | 53.4 | 1.16 | 621.7 | 0.13 | 68.6 |
The 2019 Technical Report introduced several changes to the methodology used previously to determine the Moa JV’s Mineral Reserves estimates but arrived at no material changes to either the total Mineral Reserve estimates’ tonnage or grade.
A comparison of the Mineral Resource estimates in the 2018 AIF and 2019 Technical Report is summarized in the following table:
| Resource classification (includes Reserves) | Million of Tonnes | % of Nickel | ‘000 tonnes Nickel | % of Cobalt | ‘000 tonnes Cobalt |
|---|---|---|---|---|---|
| AIF 2018 Measured + Indicated | 76.1 | 1.17 | 890 | 0.13 | 99 |
| AIF 2018 Inferred | 10 | 1.39 | 139 | 0.12 | 12 |
| 2019 Technical Report Measured + Indicated | 157.96 | 1.00 | 1,579 | 0.13 | 205 |
| 2019 Technical Inferred | 32.60 | 0.89 | 290 | 0.13 | 42.38 |
The 77% increase in Measured and Indicated Resources estimates determined by the 2019 Technical Report was primarily driven by the use of an economic cut-off grade that was marginally lower than the fixed cut-off grade used previously.
With the increase in Measured and Indicated Resource estimates, Moa’s mine life has the potential for significant extension if the estimates are upgraded to Proven and Probable Mineral Reserves categories. The Moa JV currently has an estimated mine life of 15 years through 2033 based on Mineral Reserves estimates.
The Moa JV explores, develops, mines and processes nickel laterite deposits in Cuba for refining into finished nickel and cobalt from a refinery in Fort Saskatchewan, Alberta and marketed to customers internationally. In 2019, Sherritt and the General Nickel Company S.A. will celebrate the 25-year anniversary of the formation of the Moa JV.
The 2019 Report, which is available from Sherritt’s profile page on www.sedar.com, was prepared for Sherritt by CSA Global with Michael Elias, FAusIMM, Paul O’Callaghan, FAusiMM, Adrian Martinez Vargas, P.Geo serving as co-authors and qualified persons. Kelvin Buban, P.Eng., of Sherritt International Corporation, also served as a co-author and Qualified Person on the 2019 Report.
The technical information contained in this news release has been reviewed and approved by Kelvin Buban, P.Eng, who is a Qualified Person with respect to the Moa JV as defined under NI 43-101. Information related to the NI 43-101 technical report contained in this news release has been reviewed and approved by the report co-author, Dr. Adrian Martinez Vargas, P. Geo., a Senior Geologist with CSA Global and independent Qualified Person as defined by NI 43-101, with the ability and authority to verify the authenticity and validity of the information.
About Sherritt
Sherritt is a world leader in the mining and refining of nickel and cobalt from lateritic ores with projects and operations in Canada, Cuba and Madagascar. The Corporation is the largest independent energy producer in Cuba, with extensive oil and power operations across the island. Sherritt licenses its proprietary technologies and provides metallurgical services to mining and refining operations worldwide. The Corporation’s common shares are listed on the Toronto Stock Exchange under the symbol “S”.
SOURCE: SHERRITT INTERNATIONAL CORPORATION
DATE: JUNE 26, 2019