The Makwa Mayville Project is located in the Bird River Greenstone Belt approximately 145 km from Winnipeg Manitoba. The project consists of two open pit NI 43-101 resources containing nickel copper platinum group metals and cobalt mineralization. A preliminary economic assessment (“PEA”) was completed in April 2014 and authorized by Roscoe Postle Associates Inc. Based on the PEA the project is designed as a blast and haul open pit operation with ore hauled to a mill at the Mayville site. A flotation circuit producing separate copper and nickel concentrates would be produced.
The resource calculation associated with the PEA is presented in Table 1.
Table 1- Makwa Mayville Resource Calculation
MINERAL RESOURCE SUMMARY AS OF NOVEMBER 27, 2013
Mustang Minerals Corp. – Makwa-Mayville Project
Class and Deposit
- CIM Definition Standards have been followed for classification of Mineral Resources
- Mineral Resources are reported at a net smelter return (NSR) cut-off value of C$15/tonne at Mayville and C$20.64/tonne at Makwa
- At Mayville, NSR values are calculated in C$ using factors of $51 per % Cu and $41 per % Ni. These factors are based on metal prices of US$3.40/lb Cu and US$8.50/lb Ni, estimated recoveries and smelter terms, and a US$/C$ exchange rate of 0.97.
- The Makwa Mineral Resources are estimated using metal prices of US$3.40/lb Cu and US$8.50/lb Ni, estimated recoveries and smelter terms, and a US$/C$ exchange rate of 0.97. The NSR factors used are: $87.33 per % Ni, $29.65 per % Cu, $38.25 per % Co, $0.14 per g/t Pt and 0.08 per g/t Pd.
- Totals may not add correctly due to rounding.
- Mineral Resource that are not Mineral Reserves do not have demonstrated economic viability.
The results of the PEA are summarized in Table 2.
Nickel US$ (lb)
Copper US$ ( lb)
Palladium US$ (oz)
C$/US$ Exchange Rate
Operating Cashflow ( millions )
Capex ( millions )
Pre-tax NPV at 7.5% ( millions )
Pre-tax IRR at 7.5%
After tax NPV at 7.5% ( millions )
After tax IRR at 7.5%
Recent Work Program and Future Plans
- A deep penetrating electromagnetic survey at Makwa identified a number of conductive plates located in close proximity to the open pit resource shell.
- Metallurgical testwork on samples from Mayville showed improved nickel recoveries and cobalt recovery from the samples tested. The testwork concluded market nickel and copper concentrates could be produced from the Mayville samples.
- The Company plans to update the economic parameters, operating and capital costs and other parameter to incorporate into an updated PEA for the Makwa Mayville Project.