McCreedy West Mine
| Location: | Sudbury, Ontario, Canada |
| Ownership: | 100% |
| Type of Mine: | Underground |
| Type of Ore body: | Footwall/Contact (all contact mining currently suspended) |
| Primary Metal: | Copper |
| Secondary Metal: | Nickel, platinum, palladium and gold |
| Processing | Custom processed |
| End Product | Ore sent to third party processor |
| Infrastructure | Accessible by road and rail |
| Employees | 92 |
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The 100% owned McCreedy West Mine has the potential to produce from within the same underground infrastructure both copper-precious metal Footwall ore and nickel-copper Contact ore.
Profile and Production History:
The McCreedy West Mine produces both nickel ore and copper-precious metal ore.
Current Activity and Outlook:
Following the waiver by Vale of its right to the magnesium oxide ("MgO") Contact Nickel ores Quadra FNX delivered approximately 54,000 tonnes of contact nickel ore from McCreedy West to Xstrata which was milled in August on a trial basis. Discussions with Xstrata for the treatment of additional ore are ongoing.
Mining of Contact Nickel ore has continued in parallel with discussions with Xstrata. Subject to nickel price and the outcome of these negotiations, the 2012 business plan includes mining of McCreedy West contact nickel ores.
In 2011 payable copper production expectations remain in the 5 to 6 million pound range, while annual nickel production volumes increases to 3 to 4 million pound range with the contact nickel re-start.
Reserves & Resources
The Mineral Reserve and Mineral Resource estimates are prepared in accordance with the CIM Definition Standards On Mineral Resources and Mineral Reserves, adopted by CIM Council on November 14, 2004, and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on November 23, 2003, using geostatistical and/or classical methods, plus economic and mining parameters appropriate to each operation. Definitions and guidelines can be found at www.cim.org.
McCreedy Reserves (as of December 31, 2010)
| Footwall Reserves |
Ore (Mt) | Cu Grade (%) |
Ni Grade (%) |
PGM Grade (g/t) |
Au Grade (g/t) |
Contained Cu Grade (M lbs) |
Contained Ni (M lbs) |
Contained TPMs (M oz) |
|---|---|---|---|---|---|---|---|---|
| Proven | - | - | - | - | - | - | - | - |
| Probable | 0.3 | 1.92 | 0.32 | 7.0 | 1.0 | 13 | 2 | 0.08 |
| Total | 0.3 | 1.92 | 0.32 | 7.0 | 1.0 | 13 | 2 | 0.08 |
| Contact Ni Reserves |
Ore (Mt) |
Cu Grade (%) |
Ni Grade (%) |
Contained Cu Grade (M lbs) |
Contained Ni (M lbs) |
|---|---|---|---|---|---|
| Proven | - | - | - | - | - |
| Probable | 0.2 | 0.24 | 1.89 | 1 | 10 |
| Total | 0.2 | 0.24 | 1.89 | 1 | 10 |
McCreedy West Resources (as of December 31, 2010)
| Footwall Resources |
Ore (Mt) |
Cu Grade (%) |
Ni Grade (%) |
PGM Grade (g/t) |
Au Grade (g/t) |
Contained Cu Grade (M lbs) |
Contained Ni (M lbs) |
Contained TPMs (M oz) |
|---|---|---|---|---|---|---|---|---|
| Measured | - | - | - | - | - | - | - | - |
| Indicated | 0.9 | 1.42 | 0.26 | 5.51 | 0.88 | 29 | 5 | 0.19 |
| M & I | 0.9 | 1.42 | 0.26 | 5.51 | 0.88 | 29 | 5 | 0.19 |
| Inferred | - | - | - | - | - | - | - | - |
| Contact Ni Resources |
Ore (Mt) |
Cu Grade (%) |
Ni Grade (%) |
Contained Cu Grade (M lbs) |
Contained Ni (M lbs) |
|---|---|---|---|---|---|
| Measured | 0.5 | 0.32 | 2.05 | 3 | 21 |
| Indicated | 0.8 | 0.27 | 1.58 | 5 | 29 |
| M & I | 1.3 | 0.29 | 1.75 | 8 | 47 |
| Inferred | 1.6 | 0.28 | 1.56 | 10 | 55 |
Mineral Resource are inclusive of Mineral Reserve.
TPM = Pt +Pd + Au
The Mineral Resource cut-off is based on the direct cost of mining and varies between mining sources within the McCreedy West Mine. The Mineral Reserve cut-off is based on the direct cost, indirect cost, the sustaining capital costs and the impact of the Gold Wheaton agreement and varies between mining sources within the McCreedy West Mine. The long term metal prices used for the Mineral Resource were; Cu at US$2.50/lb, Ni at US$7.00/lb, Pt at US$1500/oz, Pd at US$400/oz and Au at US$1,000/oz with a Canadian dollar exchange rate at US$1.00. The metal prices used for the Mineral Reserve were the same except for Cu at $4.00/lb and Ni at $10,00 to reflect short term pricing. Mineral Resource for all operations are inclusive of Mineral Reserve and all estimates are prepared as of December 31, 2010. Estimates for all operations are prepared by or under the supervision of a Qualified Person as defined in NI 43-101. The Qualified Persons responsible for the 2010 Mineral Resource and Mineral Reserve estimate are Dave King, P.Geo., Manager Geoscience Data & Services; Stu Gibbins, P.Geo., Superintendent Geological Services and Mark Frayne, P.Eng,, Manager Engineering, who are all Quadra FNX employees.