Blue River Project
Overview
Tantalum and Niobium deposit in British Columbia
- Historically (2013) largest cash positive production scenario for tantalum globally
Attractive Location
- Mining-friendly south-eastern BC
- 250 km north of the city of Kamloops
- 23 km north of the town of Blue River
- Positive relationship with Simpcw First Nations
100% Ownership
- No royalties or back-in rights
- Land package of over 1,000 km2
- 249 mineral titles in good standing within the Kamloops Mining Division
Excellent Infrastructure
- Road accessible
- Railway and airport
- Major paved highway
- Power grid nearby
- Watersupply
- Property contains three known deposits of tantalum and niobium and an additional 20+ known exploration targets
- Upper Fir deposit has a significant indicated resource of 9.6M kg contained tantalum and 77.8M kg contained niobium plus inferred resource of 1.0M kg contained tantalum and 9.6M kg contained niobium
- CAD$34M+ spent to date, including 271 drill holes, a historical Preliminary Economic Assessment (“PEA”), community consultations, and preliminary metallurgical and environmental work.
- PEA completed on the Upper Fir deposit, defining a low capital expenditure project that could produce 700,000 lbs. Ta2O5 annually, outlining its potential to be the world’s largest tantalum producer.
- Expansion potential to Upper Fir, Fir and additional deposits provides further production upside
- Minimal infrastructure needs – rail, paved road, water and power adjacent to project site
- Government has committed to building 8 new mines by 2015 and expediting permitting
- Management and directors have extensive experience in tantalum markets
Project History
Accessibility
- Site is easily accessible by road and rail and has adjacent power
- Road accessible from a major highway via a 4 km well-groomed gravel road
- BC Hydro electric power transmission lines from Revelstoke Dam on property
- Community of Blue River has a municipal airport
- Main line of Canadian National Railway passes through the western part of property
- Water supply locally available – potential usage of underground wells
- Exploration activities currently supplied out of Kamloops, Valemount and Clearwater
Access to site via bridge across the North Thompson River, immediately east of major highway
Canadian National Railway rail line
Geology & Drilling
- Occurs along the eastern portion of the Omineca Crystalline Belt, a large scale zone with associated uplift
- Age of mineralization is approximately 330Ma
- Hosted in carbonatites, igneous rock bodies composed of more than 50% carbonate minerals
- Carbonatites occur as sills and dikes
- Tantalum and niobium form within carbonatite bodies by primary magmatic concentration
- Primary economic minerals are ferrocolumbite and pyrochlore
- Mountain Pass, California (REE, barium)
- Niobec and Oka, Quebec (niobium, REE)
- Cargill, Ontario (phosphate)
- Araxa & Calalao, Brazil (niobium, phosphate, REE
- Exploration and development focus on Upper Fir
-
- Total of 271 core drill holes for 59,110 m within the Upper
- Fir, Bone Creek and Lower Fir carbonatites
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- Also completed surface mapping, trenching, soil, stream sediment, rock chip, grab and channel sampling, metallurgical testing, bulk sampling, engineering and environmental baseline studies
Advanced Stage
PEA defines Blue River as a potential largescale, low-cost producer of conflict-free tantalum, as well as significant niobium.
- PEA prepared by AMEC and released in 2011
- PEA is for tantalum and niobium within the Upper Fir Carbonatite only
- Based on an underground mine, mill and concentrator, and on-site processing facility to produce technical grade tantalum and niobium oxides
| PEA Summary Information | |
|---|---|
| Mine Type | Underground |
| Mining Method | Sub-level open stop |
| Average grade in mine plan | 185 ppm Ta205 1,591 ppm Nb205 |
| Mining processing rate | 7,500 t/d 2.7 Mt/a |
| Annual Production | 700,000 lbs Ta205 6,300,000 lbs Nb205 |
| Mine life | > 10 years |
| Capital cost | $379M |
| Operating cost | $38.44/t milled |
| Product | Technical-grade tantalum and niobium oxides |
- Prepared by AMEC, effective June 21, 2013
- Represents a 33% increase in Indicated resources and a 18% increase in Inferred resources fromthe PEA
- Upper Fir Carbonatite only and does not incorporate the Fir or Bone Creek deposits
- Resource update is based on 271 drill holes
| Category | Tonnes | Ta205 (ppm) | Nb205 (ppm) | Contained (000’s kg) | Contained (000’s kg) |
|---|---|---|---|---|---|
| Indicated | 48,410,000 | 197 | 1,610 | 9,560 | 77,810 |
| Inferred | 5,400,000 | 191 | 1,760 | 1,000 | 9,600 |
- Estimated overall final recovery rates increased to 77.2% for tantalum and 75.1% for niobium (March 27, 2013) – over PEA base case of 65-70%
- 77% recovery for Ta and 75% recovery for Nb, using same methods in PEA NPV would increase to $97M and IRR to 14%
- Within the tantalum and niobium rougher and cleaner flotation circuit only recoveries achieved in open circuit (no closed loop processing) exceeded 96% for tantalum and 92% for niobium
- Tantalum value – $85.00 – $90.00 USD per pound
- Production scenario – 2,500 tonnes per day from one portal
- Mine Life >30 years with current resource
- Adjoining Fir and Bone Creek deposits provide near-term expansion potential during the initial mining of Upper Fir. Fir Deposit
- Located 1.3 km west of Upper Fir
- 2,240,000 kg contained tantalum per historical resource Additional 20+ Known Carbonatite Targets on Property
- Geochemical anomaliesfound at Bone Creek and along strike of Upper Fir
- Other targets include Mt. Cheadle, Mud Lake, and Paradise
| Resource Tonnage | Ta205 (ppm) | Nb205 (ppm) | Contained (000’s kg) | Contained (000’s kg) | |
|---|---|---|---|---|---|
| Fir | 5,200,000 | 195 | 897 | 2,240 | 10,370 |
Community Relations
- Ahead of the game” in First Nations and community engagement
- Discussions with the Simpcw First Nation in 2006 and signing of a Memorandum-of-Understanding in 2010
- Company has spent considerable time engaging with the Simpcw and the local communities
- Simpcw are considered “business-minded” and operate numerous commercial joint ventures
- Simpcw currently engaged with Yellowhead Mining, owners of a proposed large-scale Cu-Au-Ag mine, as well as several exploration projects
- British Columbia is becoming a leading jurisdiction in mine development permitting
- BC Government has a re-energized approach to mine development, including a commitment by the Premier to expedite the permitting process and open 8 new mines.
Recent successes include:
- January 2012: Notice of Work Application backlog reduced from 229 to 85
- January 2012: Quinsam Mine expansion permitted (Vancouver Island)
- January 2012: Huckleberry Mine expansion permitted (Smithers)
- December 2011: Bonanza Gold Mine permitted (Wells)
- September 2009: Mount Milligan Mine permitted (northern BC)
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