Magna Mining signs off-take agreement with Vale Canada

Magna Mining Inc. has announced the signing of a Definitive…

Magna Mining Inc. has announced the signing of a Definitive Off-Take Agreement with Vale Base Metals’ wholly-owned subsidiary Vale Canada for the advanced exploration portion of the Crean Hill Project in Ontario.

Jason Jessup, CEO of Magna Mining stated, “We are extremely pleased to be able to announce the signing of the Definitive Off-Take Agreement with Vale. This Agreement is the culmination of several months of work with Vale and we are quite pleased with the outcome. Additionally, the recent announcement of the filed Amended Closure Plan has Magna on track to have all the permits in place to develop the ramp from surface, which will allow for underground test mining and set up for a future commercial production decision.”

Under the Agreement, initial production would be shipped to Vale’s Clarabelle Mill in Sudbury for processing. This includes material from the Main, Intermediate, 9400, 9400 Footwall and 101 Footwall zones. The 109 Footwall zone is excluded from the Agreement and is planned to be processed through an alternative mill with potentially increased precious metal recovery during the advanced exploration period. In advance of negotiating the Agreement, Magna completed an extensive test programme at a third-party metallurgical facility using representative ore samples from the Crean Hill deposit. The results were used to develop recovery predictions at varying ore feed grades and producing a high concentrate grade consistent with the Clarabelle Mill flowsheet. The predicted mill recovery from the test work was calculated at 80.5% Ni, 93.6% Cu and approximately 70% for Co, Pt, Pd, Au. These recoveries were established using Magna’s internal (non NI 43-101 compliant) estimates of potentially minable grades for advanced exploration. These results were used to determine nickel and copper concentrate smelting and refining treatment terms, which were negotiated and resulted in the Agreement between Magna and Vale.

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