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Grid Metals Expands Resource by One-Third at Manitoba Copper-Nickel Project
Grid Metals Expands Resource by One-Third at Manitoba Copper-Nickel Project

Grid Metals Expands Resource by One-Third at Manitoba Copper-Nickel Project

  • 07-May-2024 6:26 PM
  • Journalist: Kim Chul Son

Grid Metals (TSXV: GRDM) has significantly increased the indicated tonnage at its MM copper-nickel project in southeast Manitoba, surpassing the previous estimate by more than a third. The company revealed on Monday that the combined indicated open pit resources have surged by 12.4 million tonnes, reaching a total of 46.2 million tonnes, marking a remarkable 37% increase compared to the 2014 estimate of 33.8 million tonnes. Situated approximately 180 km northeast of Winnipeg, the project, previously known as Makwa Mayville, hosts a substantial amount of metal reserves, including 317 million lb. copper, 263 million lb. nickel, and 452,000 oz. of combined palladium-platinum-gold, as confirmed by Grid's release.

This significant increase in resources can be attributed to various factors, including recent infill drilling activities at Makwa, enhanced metallurgical recoveries from tests, and a more favorable exchange rate between the United States and Canadian dollar.

"The resource estimate announced today provides impetus for further exploration and continued expansion of the MM copper/nickel project," remarked Grid CEO Robin Dunbar. " The MM project boasts a conventional copper-nickel sulphide resource, situated near the surface, and with clear potential for further growth."

Both the Mayville and Makwa deposits, known for their copper-rich and nickel-rich compositions respectively, are suitable for open pit mining, with considerable underground potential as well. The indicated resource at Mayville stands at 32.0 million tonnes grading 0.16% nickel, 0.4% copper, 0.01% cobalt, 0.13 gram palladium per tonne, 0.05 gram platinum, and 0.05 gram gold. Meanwhile, the indicated resource at Makwa is 14.2 million tonnes grading 0.48% nickel, 0.11% copper, 0.02% cobalt, 0.37 gram palladium, and 0.1 gram platinum (or 0.75% nickel equivalent). Additionally, an inferred resource of 18,000 tonnes grading 0.23% nickel, 0.04% copper, 0.01% cobalt, 0.11 gram palladium, and 0.04 gram platinum was reported at Makwa. Grid Metals' shares closed at C$0.01 higher apiece on Monday, reaching C$0.08, resulting in a company valuation of C$16.3 million. The stock has traded within a 52-week range of C$0.06 to C$0.18.

In addition to the MM copper-nickel project, Grid also holds the adjacent Donner Lake lithium project, for which it plans to submit a mining permit application later this year and complete a preliminary economic assessment. The company has secured a lease agreement on the True North mill held by 1911 Gold (TSXV: AUMB) to process the lithium, and is also in discussions with Sinomine to utilize the closer Tanco mill.

Furthermore, about 100 km south of Donner Lake lies the Falcon West lithium project, where Grid recently reported its first drill results. Drill hole ADL24-21 at the ArtDon target intersected 3.7 meters grading 2.83% lithium oxide (Li2O) from a depth of 4.4 meters, according to the company.

"We recognize significant synergies between our copper/nickel and lithium project development strategies," Dunbar remarked. "Our ongoing efforts aim to establish the mineral resources essential for creating a significant hub for critical metals production and processing in a top-tier mining region."

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