Deposit Geology and Mineralization


Overview

The Eagle’s Nest Ni-Cu-PGE deposit was discovered in the fall of 2007 by Noront Resources. It will be Noront’s first mine in the ROF and is expected to produce 3,000 tonnes of ore per day, to be mined by underground methods and processed to deliver 150,000 to 250,000 tonnes of nickel-bearing concentrate per year. The mine is expected to reach commercial production 3 years after permits are received with an anticipated mine life of 11 years with the potential for 9 additional years.

Deposit Geology and Mineralization

Figure 1: Regional Geology of the southern ROF

Figure 1: Regional Geology of the southern ROF

Regionally the Eagle’s Nest deposit is associated with an ultramafic sill complex situated at the contact between a large tonalite body to the northwest, and an overlying volcanic sequence to the southeast (figure 1). At over 16km in strike length and up to 1.5km in thickness, this sill complex is believed to consist of at least two individual sills known as the Double Eagle Intrusive Complex and the Black Thor Intrusive Complex. Both contain an ultramafic keel and/or feeder dyke with attendant Ni-Cu-PGE mineralization, overlain by crudely layered accumulations of dunite, peridotite and chromitite and capped by pyroxenite and leucogabbro.

Figure 3: 3D rendering of the Eagle’s Nest host intrusion (grey) and sulfide mineralization (coloured grade shells). View to the northwest.

Figure 3: 3D rendering of the Eagle’s Nest host intrusion (grey) and sulfide mineralization (coloured grade shells). View to the northwest.

The Double Eagle Complex hosts the Eagle’s Nest Ni-Cu-PGE deposit, the Blackbird chromite deposit, the Eagle Two nickel occurrence and the Triple-J gold zone.

The Eagle’s Nest deposit is a magmatic Ni-Cu-PGE sulfide deposit hosted within a sub-vertically plunging peridotite body believed to have originally been the sub-horizontal feeder conduit or keel to the overlying ultramafic sill. The deposit lies along the northwest margin of the host intrusion (figure 2), at the inferred paleo base of the conduit, and varies between 40-150m in strike length, several 10’s of meters in thickness and is continuous down-dip for over 1200m (figure 3). Mineralization consists of massive to net-textured and disseminated sulfide composed of pyrrhotite-pentlandite-chalcopyrite. Current reserves and resources are presented in the Table below.

Figure 2: Eagle’s Nest geology map

Figure 2: Eagle’s Nest geology map

Eagle’s Nest Mineral Reserves & Resources
 gpt = grams per tonne Tonnes (000) Nickel (%) Copper (%) Platinum (gpt) Palladium (gpt) Gold (gpt)
Reserves
Proven 5,264 2.02 1.04 1.01 3.45 0.19
Probable 5,867 1.38 0.72 0.78 2.76 0.18
Total Proven and Probable 11,131 1.68 0.87 0.89 3.09 0.18
Resources
Inferred 8,966 1.10 1.14 1.16 3.49  0.3
Please see the report titled “NI 43-101 Technical Report Feasibility Study McFaulds Lake Property Eagle’s Nest Project James Bay Lowlands Ontario, Canada,” dated October 19th, 2012 (with an effective date of September 4, 2012) (the “Technical Report”) for details regarding the mineral reserve estimate above (section 15.1) and the mineral resource estimate above (14.2).  Sections 14.2 and 15.1 of the Technical Report include a descirption of the key assumptions, parameters, and methods used to estimate the mineral resources and mineral reserves respectively.  A copy of the Technical Report may be accessed under Noront’s company profile on SEDAR at www.sedar.com. 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, socio-political, marketing or other relevant issues.
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