Scoping and Preliminary Economic Assessment Studies

Patterson Lake South Project, Saskatchewan

Fission Uranium Corp.

Lead Consultant on a Preliminary Economic Assessment (PEA) and NI 43-101 Technical Report for the Patterson Lake South Project, located in northern Saskatchewan, Canada.  RPA had previously completed an initial Mineral Resource estimate and NI 43-101 Technical Report on the Project.

The major asset associated with the Patterson Lake South Project is the high grade Triple R uranium deposit.

The PEA is based on a combination of open pit and underground mining, and processing of 1,000 tonnes per day via acid leaching, solvent extraction, and precipitation.  The Project has the potential to produce up to 15 million lb U3O8 per year in the form of yellowcake. 

RPA estimated Mineral Resources for the Triple R deposit using drill hole data available as of July 28, 2015.  At cut-off grades of 0.20% U3O8 for open pit and 0.25% U3O8 for underground, Indicated Mineral Resources are estimated to total 2,011,000 tonnes at an average grade of 1.83% U3O8 containing 81 million pounds of U3O8.  Inferred Mineral Resources are estimated to total 785,000 tonnes at an average grade of 1.57% U3O8 containing 27 million pounds of U3O8.  Gold grades were also estimated and average 0.59 g/t for the Indicated Resources and 0.66 g/t for the Inferred Resources.  Mineral Reserves have not yet been estimated for the Triple R deposit.

As part of the PEA, RPA conducted an Open Pit vs. Underground trade-off study to determine the optimum mining method for developing the deposit. A hybrid option was selected, consisting of open pit mining of the smallest possible footprint that covers the high-grade resources (>4% U3O8), in parallel with underground mining of the remainder of the deposit.

RPA's economic analysis shows a post-tax internal rate of return (IRR) of 34.2%, and post-tax net present value (NPV) (at a discount rate of 10%) of C$1,019 million at a long term price of US$65 per lb U3O8.

Ntaka Hill Nickel-Copper Project, Tanzania

Continental Nickel Limited

Lead consultant on a Preliminary Economic Assessment (PEA) and updated mineral resource estimate on the Ntaka Hill Nickel Project, located in southeast Tanzania.

The Ntaka Hill Project contains numerous geophysical anomalies and seven zones of mineralization. RPA estimated mineral resources for nickel, copper, cobalt, platinum, palladium, and gold.

The PEA considers open pit mining and conventional flotation processing, producing a bulk nickel-copper concentrate. The mine life includes four years of mining small high grade zones, followed by eight years of mining larger zones. RPA performed an economic analysis including capital, operating cost, and production plan estimates, and a cash flow and sensitivity analysis.

In addition to the base case mentioned above, RPA also investigated the economic viability of three alternate scenarios. This included an underground/open pit scenario to determine if deeper mineralization will be more economical if mined by underground methods.

The second scenario considered a lower economic cut-off grade in which low-grade material in the open pit is included in the production plan. The last scenario considered the addition of a free carry interest in the Project by the Government of Tanzania.

RPA concluded that positive economic results can be obtained for the Ntaka Hill Project. As a result of the PEA, RPA recommended that further drilling, data collection, metallurgical test work, and additional studies should be carried out to allow for the estimation of mineral reserves.

In April 2012, RPA completed an updated mineral resource estimate and NI 43-101 technical report for the Project based on additional drilling and test work. The measured and indicated mineral resources increased by 7.8 million tonnes and the inferred mineral resources increased by 27.7 million tonnes, for a total of 12.8 million tonnes of measured and indicated mineral resources and 45.0 million tonnes of inferred resources.

In September 2012, Continental Nickel Limited was acquired by IMX Resources Limited. In October 2012, RPA contributed to the update of the Preliminary Economic Assessment to reflect the impact of the updated Mineral Resource estimate. 

As of 2015, IMX Resources Limited is conducting geotechnical studies of the Ntaka Hill Nickel Project area.

Hammond Reef Gold Project

Brett Resources Inc.

To prepare a National Instrument 43-101 compliant Preliminary Assessment Report for the Hammond Reef Gold Project.

The Hammond Reef Gold Project is an exploration property located 170 km west of Thunder Bay, Ontario. Gold mineralization occurs in association with quartz veins, stockworks, and fractures which occupy a branch of a broad regional-scale brittle-ductile shear zone. RPA completed an audit of the Mineral Resource estimate and conceptual mine plan, including a preliminary economic review.

The conceptual mine plan consisted of an optimized open pit mine design, generation of a production schedule, and specification of necessary equipment. The economic review included an economic summary, discounted cash flow analysis, as well as capital and operating cost estimates.

RPA’s recommendations for further development of the project were primarily concerned with confirming the existing data and the acquisition of additional data to expand resources and eventually support Pre-feasibility or Feasibility level studies. A drilling program was recommended to upgrade the Resource estimate and to determine the extents of the deposit and possibly expand the resource into prospective areas.

Subsequent to RPA’s recommendations, Brett Resources Inc. initiated an in-fill drilling campaign in the winter of 2009-2010. They were also able to raise capital through a bought deal financing and a private placement financing. In March 2010 it was announced that Brett Resources Inc. was to be acquired via a friendly takeover from Osisko Mining Corporation. 

Agnico-Eagle and Yamana Gold acquired Osisko in 2014, and the Hammond Reef Gold Project is now owned by Agnico-Eagle (50%) and Yamana Gold (50%). Currently, work is being completed on the Hammond Reef Environmental Assessment so that construction activities may commence in the future.