PolyMet Mining Corp.: NorthMet Drilling Reports 5.1% Grade Increase, Scope of Definitive Feasibility Study Expanded
Thursday March 9, 12:50 pm ET
VANCOUVER, British Columbia--(BUSINESS WIRE)--March 9, 2006--PolyMet Mining Corp. ("PolyMet") (TSX VENTURE:POM - News; OTCBB:POMGF - News) is pleased to report that it has evaluated and compiled all assay results from its 2005 diamond drilling program on the NorthMet deposit in northeastern Minnesota. The data have been integrated into the resource model that will contribute to the Definitive Feasibility Study (DFS) being completed by Bateman Engineering Pty Ltd. (Australia) ("Bateman"). Bateman is responsible for the completion of the DFS on behalf of PolyMet. Combined with other operational factors, PolyMet has expanded the scope of the DFS to cover:
- an 18% increase in the production rate to 32,000 short tons of ore per day from 27,500 short tons per day;
- production of separate nickel and cobalt concentrates that enjoy significantly better processing terms than the combined concentrate previously contemplated, and
- more flexible layout of the metallurgical plant.
The samples taken in 2005 have an average Net Metal Value (after deduction of third-party processing and refining costs) of $17.37 per ton, which is a 5.1% increase on the average Net Metal Value of previous samples. The Net Metal Value was calculated using the metal prices and recoveries set out below.
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Copper Nickel Cobalt Palladium Platinum Gold
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Assumed
Price $1.05/lb $5.40/lb $15.00/lb $250/oz $750/oz $400/oz
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Assumed
Recovery 91.4% 73.2% 46.3% 71.4% 72.2% 72.4%
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Recent
price $2.29/lb $6.88/lb $12.88/lb $300/oz $1,049/oz $566/oz
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As a result of these expansions to the scope of the program, PolyMet now expects to receive all of the data supporting the DFS in the middle of 2006 with final sign-off by Bateman during the third quarter of 2006.
Upon receipt of DFS data in mid-2006, the final stages of the permitting process that commenced in early 2004 will kick into high gear with commercial production still anticipated for mid-2008.
Final Exploration Program
The 2005 drill program focused on the areas that are expected to be mined in the first 20 years. All of the goals for the program have been met, including:
- providing a 40-ton bulk sample for metallurgical pilot plant test work. The bulk sample representing the 20-year mining envelope was successfully processed at SGS Lakefield Laboratories in Ontario during the latter part of 2005 (see news release dated February 16, 2006);
- gathering geotechnical information for pit slope design - pit slope stability studies by Golder Associates are nearing completion;
- enhancing the comprehensive geological model through in-fill drilling - a new, detailed geological and assay model incorporating all work from 2005 has been completed and is contributing to ongoing resource evaluation and pit design work by PolyMet staff, resource consultants Hellman & Schofield and Australian Mine Development and Design (AMDAD);
- confirming continuity of metal grades;
- collecting data to support environmental permitting, and
- Improvement in the confidence of resource estimate categorization resulting from reduced drill hole and sample spacing.
During the 2005 program, 109 holes totaling 77,166 feet were drilled taking the cumulative drilling at the project to 310 diamond and reverse circulation holes totaling 261,227 feet. In addition to the latest drill program, PolyMet has meticulously recompiled all of the prior work started by US Steel in 1969, increasing the number of samples from nearly 12,000 to 17,194. The latest program added a further 12,806 samples, taking the total to 30,000.
In addition, drill spacing in the area to be mined in the first five years has been reduced to an average of 311 feet (from 427 feet) while the 20-year mine plan spacing has been reduced to an average of 360 feet - in its 2005 report, Hellman & Schofield used spacing of 360 feet to define material in the "Measured" category.
PolyMet is advised by Dr. Phillip Hellman of Hellman & Schofield of Sydney, Australia for resource evaluation work and Lynda Bloom of Analytical Solutions Ltd. of Toronto for geochemical quality control. PolyMet has retained Australian Mine Design & Development of Sydney, Australia for mine design, planning and production scheduling.
Information contained in this news release was prepared by Richard Patelke, Senior Project Geologist and a Qualified Person under NI 43-101 |
