Magna Mining has successfully concluded a definitive offtake agreement with Vale Canada, a subsidiary of Vale Base Metals, concerning the advanced exploration segment of the Crean Hill Project. This collaboration underscores months of joint efforts and marks a significant milestone for Magna Mining's development path.
Under this agreement, the initial material produced will be sent to Vale's Clarabelle mill facility in Sudbury for processing. The scope includes material from several zones within the Crean Hill Project, with the 109 Footwall zone designated for processing elsewhere to optimize precious metal recoveries during the advanced exploration phase.
In preparation for this agreement, Magna undertook comprehensive testing of ore samples from Crean Hill at an independent metallurgical facility. These tests informed recovery projections and concentrate grades compatible with the Clarabelle mill's operations. Predicted recoveries for nickel, copper, cobalt, platinum, palladium, and gold were derived from Magna's internal estimates of mineable grades, providing a basis for the smelting and refining terms negotiated with Vale.
Additionally, Magna has advanced its environmental compliance efforts by applying for a Permit to Take Water, a crucial step towards dewatering Crean Hill's underground workings to commence exploration and trial mining. The company anticipates permit approval by the end of the second quarter of 2024.
Magna Mining also revealed plans to update the Mineral Resource Estimate in the second quarter of 2024, reflecting the potential for better grades in some areas based on recent diamond drilling activities. This update will guide the final design of the underground mining operations.
To support its exploration ambitions, Magna is exploring various non-equity capital sources, including potential government grants and by-product metal streams. The company is well-funded for a 25,000-meter drilling program in 2024 aimed at uncovering new discoveries at the Crean Hill and Shakespeare projects, with ongoing drilling activities expected to yield monthly assay results throughout the year.
