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Reserves & Resources
Shakespeare Nickel Copper Deposit
Reserve and Resource Estimate
| Resource Category
|
Tonnes
|
%Ni |
%Cu |
%Co |
g/t Au |
g/t Pt |
g/t Pd |
| Probable
Reserve |
11,828,000 |
0.33 |
0.35 |
0.02 |
0.18 |
0.33 |
0.36 |
Additional Shakespeare Nickel Copper
Deposit Resources outside of pit shell
| Resource Category
|
Tonnes
|
%Ni |
%Cu |
%Co |
g/t Au |
g/t Pt |
g/t Pd |
| Indicated
|
|
|
|
|
|
|
|
| East |
1,763,000 |
0.37 |
0.41 |
0.03 |
0.219 |
0.363 |
0.388 |
| West |
69,000 |
0.35 |
0.43 |
0.02 |
0.176 |
0.327 |
0.361 |
| Total |
1,832,000 |
0.37 |
0.41 |
0.03 |
0.218 |
0.361 |
0.387 |
| Inferred |
|
|
|
|
|
|
|
| East |
716,000 |
0.38 |
0.39 |
0.03 |
0.181 |
0.317 |
0.334 |
| West |
20,000 |
0.31 |
0.35 |
0.02 |
0.157 |
0.283 |
0.317 |
| Total |
736,000 |
0.37 |
0.39 |
0.03 |
0.180 |
0.316 |
0.333 |
The reserve is based on an Indicated
Resource (undiluted) of 12,430,000 tonnes grading 0.35% nickel, 0.37%
copper, 0.02% cobalt, 0.35 g/t platinum and 0.39 g/t palladium and 0.20
g/t gold contained within an optimized pit shell with an NSR cut off
above C$24.23. The Probable Reserve, which is diluted for mining, is to
a maximum depth of 250 metres below surface and was determined by
applying a C$12.84/tonne NSR internal cut-off value which is the sum of
the mill processing and G&A costs. The feasibility economic analysis
which defines the reserve makes the conservative assumption of a
reversion of metal prices to their 10-year historical median Canadian
dollar prices, expressed in 2007 terms. Current price levels are
assumed to regress exponentially toward the median, with a ‘decay’
half-life of three years. The resulting average prices over the life of
the project, expressed in 2007 dollars, are nickel US$9.37/lb, copper
US$2.11/lb, cobalt US$27.57/lb, platinum US$995.52/ounce, palladium
US$342.49/ounce, gold US$563.27/ounce. The base exchange rate for the
economic analysis is taken from the average of over 9 months of 2007,
for a US$/Cdn$ rate of 0.9052. The NSR model uses smelting and refining
costs in URSA Major’s agreement with Xstrata Nickel. Mr. T. Hennessey,
P.Geo, of Micon and Mr. E. Puritch of P&E Engineering are the qualified
persons for the resource and reserve estimates and Mr. Ian Ward, P.Eng.
of Micon is the qualified person under National Instrument 43-101 for
the feasibility study. Shining Tree Nickel-Copper Deposit, Mineral Resource Estimate
| Resource Category
|
Tonnes
|
% Ni
|
% Cu |
% Co |
| Indicated
|
1,020,000 |
0.71 |
0.36 |
0.02 |
| Inferred
|
1,490,000 |
0.67 |
0.36 |
0.03 |
The resource estimate was performed by Wardrop
Engineering Inc. (Wardrop) and is based on eight NQ holes (total length
of 976m) that were drilled by URSA Major and 16 holes by previous
operators. In estimating the mineral resource, a mineralization envelope
of greater than 0.30% nickel equivalent (NIEQ, where NIEQ = Ni% + Cu%/4)
was interpreted. Capping was required for 5 assays at a value of 2.50%
for nickel and 1.56% copper and 4 assays of cobalt at 0.08%. The
Indicated resource was classified based on ranges defined by variography
using a minimum of two drill holes. The remaining mineralization was
classified as Inferred. Mr. Rob Carter, P.Eng., of Wardrop supervised
the resource estimate, is the Qualified Person under National Instrument
43-101. |
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