Nuinsco Resources Ltd C.NWI

Interesting update

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Nuinsco Evaluates Starter Pit MRE Sensitivity at Prairie Lake Critical Minerals Project with Significant Tonnage and Substantially Higher Grade P₂O₅ and REE 

Highlights:

• High-grade phosphate mineralization identified and quantified, as announced June 25, 2024.
• 5% P₂O₅ cut-off grade leads to 74% higher phosphate (“P₂O₅“) grade and corresponding increase in grade of high-value neodymium (“Nd”) and praseodymium (“Pr”) rare earth elements (“REE”) than previously reported.
• P₂O₅ cut-off of 5% selected as a potential starter pit option for future engineering study.

Toronto, August 13, 2024 – Nuinsco Resources Limited (“Nuinsco” or the “Company”) (CSE: NWI, FRA: NJX) today announced that recent review and sensitivity analysis of high grade P₂O₅ and REE mineralization at the Prairie Lake Critical Minerals Project (“Prairie Lake” or the “Project”) has established substantially higher P₂O₅ and REE grades than previously reported, which may have great significance to the development of the Project.
 
“The ongoing evaluation of Critical Minerals mineralization at Prairie Lake, using a 5% P₂O₅ cut-off grade, has led to a 65 million tonne Inferred Mineral Resource sensitivity grading 5.9% P₂O₅ and a 1.2 million tonne Indicated Mineral Resource sensitivity grading 5.8% P₂O₅ within the existing, nearly 900 million tonne Mineral Resource Estimate (“MRE”),” said Paul Jones, Nuinsco’s CEO. “This represents a near 74% increase in P₂O₅grade, 41% increase in neodymium grade and a 6% increase in Praseodymium grade over the 2022 MRE, all other parameters remaining equal. The delineation of these higher-grade phosphate and REE mineralization will allow greater leeway in planning and development – for instance development of a starter pit. The higher-grade Mineral Resource sensitivity is defined by existing drill hole configuration and, while already substantial, we are confident that additional work can expand the size of the MRE further. The Prairie Lake Project is a large and vitally significant Critical Minerals asset located in the heart of North America, readily accessible to existing transportation and logistics networks making it strategically significant to a secure supply chain.” 
 
The P₂O₅ % cut-off in the 2022 MRE was 2% for Indicated and Inferred Mineral Resources; the 5% P₂O₅ cut-off sensitivity was chosen as a potential starter pit option for a future engineering study.
 
The Identification of high-grade apatite/phosphate mineralization in diamond drill holes (news release - June 25, 2024), with intersections tens of metres wide in a mineralized domain at least 1,200m long, has resulted in an MRE sensitivity, using a 5% P₂O₅ cut-off grade, of an Inferred Mineral Resource sensitivity of 65 million tonnes grading 5.9% P₂O₅ and an Indicated Mineral Resource sensitivity of 1.2 million tonnes grading 5.8% P₂O₅.  Ample room exists to expand the mineralization to other parts of the Project with similar geology.

*TREO = Total Rare Earth Oxides: neodymium, Nd₂O₃ ; praseodymium, Pr₆O₁₁; scandium, Sc₂O₃; Cerium, CeO₂; lanthanum, La₂O₃; samarium, Sm₂O₃; tantalum, Ta₂O₅; yttrium, Y₂O_3.
A full description of methodology used to estimate the Prairie Lake project Mineral Resource Estimate is contained in the NI 43-101 compliant Technical Report, effective date 31 May 2022 prepared by P&E Mining Consultants Inc. that is filed on SEDAR. 
 
1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
3. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could potentially be upgraded to an Indicated Mineral Resource with continued exploration.
4. The Mineral Resources were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
5. US$ Metal prices used were $80/Kg Nd₂O₃, $80/Kg Pr₆O₁₁, $1,500/Kg Sc₂O₃, $50/Kg Nb₂O₅, $250/t P₂O₅, $1.35/Kg CeO₂, $1.35/Kg La₂O₃, $3.50/Kg Sm₂O₃, Nil$/t Ta₂O₅ and $13/kg Y₂O₃, 0.78 FX all with combined process recoveries and payables of 50%,  except P₂O₅ at 75%. 
6. The constraining pit optimization parameters were C$2.50/t mining cost for all material, C$25/t process cost, C$5/t G&A cost and 45-degree pit slopes.

Prairie Lake is located near Terrace Bay, Ontario. It is a very substantial Mineral Resource of phosphate mineralization, has amongst the world’s highest known light rare earth element content in apatite and contains a host of other REE bearing minerals, as well as niobium-bearing pyrochlore. Metallurgical studies to date demonstrate that a clean phosphate concentrate, grading 26% P₂O₅ at 76% process recovery with ample room for improvement, and with valuable rare earth element co-concentrate, can be reliably produced from Prairie Lake feed.
 
Prairie Lake contains a large, well-located Mineral Resource of Critical Minerals in North America.  It is a potential source of elements needed for applications in transportation, power distribution, green technologies and a host of other applications, including agriculture. It is of immense value to a secure Critical Minerals supply chain; a strategic concern identified by numerous governments in the recent past and addressed with incentives and programs to encourage development of the Critical Minerals sector. The Project is located near the north shore of Lake Superior, putting it in close or easily accessible reach of:

• The Towns of Marathon, Terrace Bay and other affected communities - all able to supply a local, skilled workforce.
• All weather forest access road crossing the project and deposit.
• Paved Highways 17 and 11 to the south and north.
• Canadian Pacific Railway and Canadian National Railway networks.
• High capacity (230kV) electrical power transmission line.
• 50km from the Marathon deep water port project. Deep-water ports are also located at Thunder Bay and Sault Ste. Marie, able to handle ocean going ships.
• The Marathon airport.

Laura Giroux, P.Geo, Chief Geologist, acts as Nuinsco's Qualified Person under National Instrument 43-101. Ms. Giroux has reviewed and approved the technical content of this news release. Eugene Puritch, P.Eng., FEC, CET, president of P&E Mining Consultants Inc. and an independent Qualified Person has reviewed and approved the technical content of his news release.
 
About Nuinsco Resources Limited

Nuinsco Resources has over 50 years of exploration suc­cess and is a growth-oriented, multi-commodity mineral explora­tion and development company focused on prospective oppor­tunities in Canada and internationally. Currently the Company has   the large multi-commodity (phosphate, rare earth element, niobi­um, tantalum) Prairie Lake Project near Marathon-Terrace Bay, the Zig Zag Lake Property (lithium, tantalum) near Armstrong optioned to First Class Metals PLC and retains a NSR royalty on the Sunbeam Gold Property near Atikokan.  
 
Prairie Lake Project 2022 Pit-Constrained MRE^(1-6)

*TREO = Total Rare Earth Oxides: neodymium, Nd₂O₃ ; praseodymium, Pr₆O₁₁; scandium, Sc₂O₃; Cerium, CeO₂; lanthanum, La₂O₃; samarium, Sm₂O₃; yttrium, Y₂O_{3.
A full description of methodology used to estimate the Prairie Lake project Mineral Resource Estimate is contained in the NI 43-101 compliant Technical Report, effective date 31 May 2022 prepared by P&E Mining Consultants Inc. that is filed on SEDAR.}
 
1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
3. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could potentially be upgraded to an Indicated Mineral Resource with continued exploration.
4.The Mineral Resources were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
5. US$ Metal prices used were $80/Kg Nd₂O₃, $80/Kg Pr₆O₁₁, $1,500/Kg Sc₂O₃, $50/Kg Nb₂O₅, $250/t P₂O₅, $1.35/Kg CeO₂, $1.35/Kg La₂O₃, $3.50/Kg Sm₂O₃, Nil$/t Ta₂O₅ and $13.00/kg Y₂O₃, 0.78 FX all with combined process recoveries and payables of 50%, except P₂O₅ at 75%.
6.The constraining pit optimization parameters were C$2.50/t mining cost for all material, C$25/t process cost, C$5/t G&A cost and 45-degree pit slopes with a C$30/t NSR cut-off.
 

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