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Building …on a Proven Track Record
Preliminary results from a second round of metallurgical work are confirming
that the primary objective of the testing program is achievable - to produce
a concentrate that meets the requirements of the fertilizer industry, namely
phosphorus (P
2
O
5
) content of >30%, and magnesium oxide (MgO) content
<1%, with a calcium oxide ratio of (CaO)/P
2
O
5
<1.6
1
.
“Achieving these thresholds is a significant milestone for the project,”
said Paul Jones, President. “Prairie Lake is one of the largest deposits of its
type in the world. Not only does it have tremendous scale, but its location near
existing infrastructure and transportation networks, the relative ease with
which it could be exploited from surface using quarry methods, the continuing
potential for expansion of the known mineralization and now favourable
phosphorus metallurgy all point to Prairie Lake being a very valuable asset
within Nuinsco’s property portfolio.”
The NI-43-101-compliant Exploration Target Mineralization Inventory
2
(ETMI) is 515 - 630 million tonnes grading between 0.09-0.11% niobium
(Nb
2
O
5
) (0.9 to 1.1 kg/tonne) and 3.0-4.0% P
2
O
5
- making Prairie Lake
one of the world’s ten largest carbonatite-hosted niobium deposits (and
in North America second only to the Iron Hill Project in Colorado, USA, in
contained tonnes - the grade at Prairie Lake is however greater). The current
metallurgical work establishes the project as a substantial, recoverable,
phosphorus inventory. The suite of minerals of potentially economic
significance also includes tantalum (Ta), uranium (U) and rare earth
elements (REE) (including lanthanum (La), cerium (Ce), samarium (Sm),
neodymium (Nd) and yttrium (Y)).
Located about 45 kilometres northwest of Marathon, Ontario, Prairie
Lake covers the entire 2.8 km
2
(at surface) Prairie Lake Carbonatite Complex.
The buyback of a 2% production royalty by Nuinsco In January 2012, made
the property royalty free.
1
Sis, H. and S. Chander, 2003. Reagents used in the flotation of phosphorus ores; A critical review.
In Minerals Engineering, v.16, pp577-585.
2
The potential quantity and grade of the ETMI is conceptual in nature and there has been insufficient
exploration to define a mineral resource. It is uncertain if further exploration will result in the discovery
of a mineral resource. The ETMI was undertaken by Eugene Puritch, P.Eng. and Antoine Yassa, P.Geo
of P&E Mining Consultants Inc. of Brampton, Ontario.
•
Phosphorus/Rare Metals
•
Prairie Lake
A Project Whose Time Has Come
Marathon, Ontario
- Nuinsco’s Prairie Lake phosphorus/rare metals
property has all the attributes you look for in a project - large scale, good
location, excellent proximity to infrastructure, year-round access and robust
mineralization. A further piece of the puzzle - confirmation that desirable and
marketable concentrates can be produced, is expected to fall into place shortly
and the Company is readying for increased interest in this valuable property.
Location
Ontario, Canada
Ownership
100%
Commodity
Multiple commodities:
U, Ta, Nb, P, REEs
Project Status
Exploration
World Mine Production and Phosphate Reserves
(USGS, 2012)
MINE PRODUCTION
2010
2011
(est.)
RESERVES
COUNTRY
(x1000 tons)
(x1000 tons)
(x1000 tons)
United States
25,800
28,400
1,400,000
Algeria
1,800
1,800
2,200,000
Australia
2,600
2,700
82,000
Brazil
5,700
6,200
340,000
Canada
700
1,000
2,000
China
68,000
72,000
3,700,000
Egypt
6,000
6,000
100,000
Iraq
–
–
5,800,000
Israel
3,140
3,200
180,000
Jordan
6,000
6,000
1,500,000
Mexico
1,510
1,620
30,000
Morocco and Western Sahara
25,800
27,000
50,000,000
Peru
791
2,400
240,000
Russia
11,000
11,000
1,300,000
Senegal
950
950
180,000
South Africa
2,500
2,500
1,500,000
Syria
3,000
3,100
1,800,000
Togo
850
800
60,000
Tunisia
7,600
5,000
100,000
Other countries
6,400
7,400
500,000
World total (rounded)
181,000
191,000
71,000,000
Prairie Lake Property - aerial schematic
NWI
Did You Know
Did you know
the vast majority of
phosphorus compounds are consumed
as fertilizers? Other applications include
detergents, pesticides and matches.
Did you know
Rare Earth Elements
(“REEs”) are a group of chemical elements
that take their name from the fact that
concentrated deposits of the elements are
rare, even though the elements themselves
are widely dispersed in the Earth’s crust?
Did you know
REEs are used in
manufacturing and are components of
many common electronics such as cell
phones and laptops? Many rechargeable
batteries are made with rare earth
compounds.
Why Phosphate?
Phosphate (PO
4
) is a “vital non-renewable resource” that is essential for
sustaining the life of plants and animals. Phosphate plays a key role in the
formation and strengthening of bones and teeth, forms part of the backbone
of the structure of DNA molecules and also plays a vital role in the biochemical
reactions in cells that provide energy to living matter.
Phosphate is one of the primary nutrients that is essential for plant growth and crop
production, but it is also happens to be one of the most immobile of major plant
nutrients. It must therefore be applied in a soluble form such as in fertilizer in order
to be absorbed by plants. As the continuous farming of land depletes the quality of
the soil, fertilizers must be applied to maintain or increase crop yields. As the world
population increases, so does the demand for arable land and fertilizers. The world
consumption of fertilizers is projected to grow at a rate of 2.5% per year during the
next five years, with the largest increases in Asia and South America.
Phosphate cannot be recycled and can therefore only be obtained through mining.
For this reason Canada, Australia, the United States and several other countries have
classified it as a ‘strategic mineral resource’. Canada is currently responsible for only
about 0.5% of the world’s phosphate production. Agrium’s Kapuskasing Mine is the
only producing phosphate mine in Canada, producing 645,000 metric tonnes in 2011.
But with reserves at the Kapuskasing Mine expected to be depleted by the second
half of 2013, there is a need to identify new economic sources of phosphate within
Canada.
Phosphates are mined from both sedimentary and igneous deposits. Sedimentary
deposits, the ancient remains of sea life, account for more than 80% of phosphate
mining. Sedimentary deposits are typically higher grade but less amenable to
concentration and may contain some contaminants. The largest sedimentary deposits
are found in North Africa, China, the Middle East and the USA. The most significant
igneous deposits, intrusions of molten rock, are found in Brazil, Canada, Russia and
South Africa. Nuinsco’s Prairie Lake Carbonatite and Agrium’s Kapuskasing Mine
are both examples of igneous-type deposits. They are typically lower grade than
sedimentary deposits but are often more amenable to concentration than sedimentary
deposits, producing a product that contains fewer contaminants that can often be
sold at a premium price.
6 NWI
:TSX
Nuinsco Resources Limited