Proposed Mining Operations and Processing
The PFS proposes initial production from the Blue Beach North mine which will provide the first 6 1/2 years of production followed by an additional 7 1/2 years of production from the Tarefare No. 2 mine. The run of mine (ROM) production over the mine life is anticipated to average approximately 386,000 TPA of ore (412,000 at Blue Beach and 365,000 at Tarefare) providing an average concentrate production of 131,000 TPA, with a maximum of 136,000 TPA. The Alimak mining method was selected as the most suitable for the ore body geometry because it is expected to provide safe, efficient and cost effective extraction. Processing will consist of initial upgrading of the mill feed via a dense media separation (DMS plant), followed by grinding and flotation, to produce a high quality concentrate grading 97.5% CaF2 and less than 1% SiO2. The close proximity to tide water, (within two kilometres of the mill site), provides a significant cost advantage for the project.
Mineral Resource Estimate
The PFS was based on the mineral resource estimate completed by RPA in April, 2009 (See Technical Report on the St. Lawrence Fluorspar Project, St. Lawrence, Newfoundland & Labrador filed under the companies profile on SEDAR on May 21, 2009) is set out in the following table:
Fluorspar Mineral Resources Estimate (April, 2009)--------------------------------------------------------------------------------------------------------------------------------------------------------Property Category Tonnes (000) Grade (%CaF2)--------------------------------------------------------------------------------------------------------------------------------------------------------Blue Beach North Indicated 4,390 39.0Tarefare No. 2 Indicated 4,700 44.8TOTAL Indicated 9,090 42.0Blue Beach North Inferred 355 30.0Blowout Veins Inferred 595 31.8TOTAL Inferred 950 31.1--------------------------------------------------------------------------------------------------------------------------------------------------------Notes: 1. CIM definitions were followed for the resource estimate. 2. Mineral Resources are estimated at a cut-off grade of 20% CaF2 and a minimum horizontal width of 2.0 m. 3. Average density of mineralized rock is 2.9 t/m3. 4. Tonnage and average grade numbers are rounded. 5. Mineral Resources exclude mined out areas from historical mining.
The PFS was based on the mineral reserve estimate completed by RPA in April, 2011 (See Technical Report on the St. Lawrence Fluorspar Project, St. Lawrence, Newfoundland & Labrador filed under the companies profile on SEDAR on May 11, 2011) is set out in the following table:
Probable Mineral Reserves Estimate (April, 2011)----------------------------------------------------------------------------DESCRIPTION Tarefare Blue Beach Total-------------------------------------------------------------------------------------------------------------------------------------------------------- Tonnes Grade Tonnes Grade Tonnes Grade----------------------====================================================== ('000 t) (% CaF2) ('000 t) (% CaF2) ('000 t) (% CaF2)----------------------======================================================Main Vein at 30% CaF2(i) 3,788 52.05 3,319 44.70 7,107 48.62----------------------------------------------------------------------------Undiluted Stoping Quantity (Excluding Pillar Recovery) 2,400 48.55 2,164 42.45 4,564 45.66----------------------------------------------------------------------------In Pillars 2,207 44.25 1,837 39.10 4,044 41.91----------------------------------------------------------------------------Dilution % 17% 20% 18%----------------------------------------------------------------------------Extraction 90% 90% 90%----------------------------------------------------------------------------Total Reserves 2,742 43.05 2,641 36.54 5,383 39.86--------------------------------------------------------------------------------------------------------------------------------------------------------Notes: 1. CIM definitions were followed for the reserve estimate. 2. Mineral Reserves are estimated at a cut-off grade of 30% CaF2. 3. Tonnage and average grade numbers may not total due to rounding. 4. Mineral reserves are part of mineral resources.
