Grid Metals Reports Positive Metallurgical Test Results With Significant Increase in Nickel Recovery from the Mayville Deposit Located in
For Immediate Release
Exchange: TSX Venture
Toronto, Ontario
Symbol:GRDM
Shares Outstanding: 42,416,610
Grid Metals Reports Positive Metallurgical Test Results
With Significant Increase in Nickel Recovery from the Mayville Deposit Located in
Manitoba, Canada
Saleable Nickel and Copper Concentrates Achieved
Toronto, ON –August 8, 2019 – Grid Metals Corp. (TSX.V: GRDM | USOTC: MSMGF)
(“Grid” or “the Company”) is pleased to announce the successful results of its bench
scale metallurgical testwork program for its Mayville Deposit located in southeastern
Manitoba, Canada.
The program was designed to demonstrate copper and nickel separation from a bulk
concentrate in order to produce quality nickel and copper concentrates. The latest
testwork achieved successful nickel copper separation and significantly higher nickel
recovery than in previous work. (nickel recovery was over 65% , vs 45% maximum
recovery used in the Project’s 2014 PEA – an increase of 44%) . The testwork was
completed by XPS Expert Process Solutions, a Glencore Company, which is a Sudbury-
based technical consultancy and testing firm with extensive experience in flow sheet
development and nickel-copper cobalt ores.
Summary of Latest Metallurgical Results
• Open cycle flotation testing on a new composite sample produced a bulk
concentrate followed by separation into:
o A nickel concentrate grading 10.7% nickel with 65.1% nickel recovery.
o A copper concentrate grading 30.0% with 82.1% copper recovery.
• Both concentrates w ere deemed to exceed the quality requirements to be
saleable to smelters.
• Cobalt reported to the nickel concentrate with a recovery of 62.5% and a grade of
0.66%.
• Platinum group metals (PGM ) and silver recovered to both concentrates also
may provide potential added value
• Closed circuit simulation completed by XPS concluded that further improvements
in nickel recovery and concentrate grade and copper recovery may be
achievable. Modelling suggested nickel recovery of 68% at 11% concentrate
grade and copper recovery of 90% at a 25% concentrate grade may be achieved
based on the composite sample tested.
Grid President & CEO Robin Dunbar commented , “The latest metallurgical testwork
provides significant new encouragement for the potential project economics of the
Mayville Deposit , as these results significantly surpass prior metallurgical results
achieved and incorporated in the 2014 PEA . Substantially improved nickel recoveries
and confirmation of the quality of the nickel and copper concentrates that can be
produced are a positive ou tcome. In addition, the cobalt recoveries of over 62% may
provide added benefit to the project economics, as cobalt was not included in the 2014
resource model. The positive metallurgical results provide a catalyst towards continuing
to advance the Maryville project by reworking the project economics with a view toward
completing an updated economic study. The Company has retained Roscoe Postle
Associates Inc. to commence initial work in this regard.
Discussion
Results indicate a potential significant improvement in nickel recovery from the levels in
the 2014 Preliminary Economic Analysis (“PEA”)* for the Makwa Mayville Project . The
average nickel recovery used in the PEA financial model for the Mayville Deposit was
41% with the highest recovery used in the PEA financial model of 45%. Therefore, the
achievement of over 65% in bench scale testwork is highly significant given that the
Mayville Deposit resource model contains approximately 48 ,000 tonnes of nickel
(Indicated) and 9,000 tonnes of nickel (Inferred) see resource table below for tonnes
and grade.
The improvement was achieved by utilizing a new bulk metals recovery flowsheet
developed by XPS based on its experience with similar ores followed by copper/nickel
separation.
In addition to the improved nickel recoveries a significant amount of cobalt was
recovered to the nickel concentrate . Mineralogical work has shown the cobalt is
associated with pe ntlandite, which is the predominant recoverable mineral containing
nickel. Cobalt recovery was not assessed or valued in the PEA since cobalt had not
been included in the Mayville resource model. The mineralogy and testwork completed
by XPS has indicated that in the sample tested. cobalt occurs with pentlandite bearing
nickel at a ratio of approximately 1:16 (cobalt/nickel)
Test Work Summary
A 55 kg composite sample wa s prepared from four drill hole intervals from the Mayville
Deposit. The sample graded 0.26% nickel, 0.55% copper and 0.02% cobalt.
Bulk concentrate tests were conducted to confirm performance relative to a previous
bulk concentrate (see Grid press release dated May 8, 2019).
Following the bulk concentrate confirmation testwork , copper/nickel separation was
completed to evaluate the performance of the separation circuit.
The final test produced a bulk concentrate grading 21.6% Cu + Ni with a recovery of
67.8% Ni and 92.4% Cu. The three stage Cu/Ni separation produce d a final Cu
concentrate at 30% Cu and 0.5% Ni. Cu recovery to Cu concentrate was 82.1%.
Final Ni concentrate had a grade of 10.7% Ni and 3.3% Cu. Recoveries to Ni
concentrate were 65.1% Ni, 10.3% Cu, and 62.5% Co. This concentrate includes all
three Cu c leaner tailings as well as the third bulk cleaner tailings. In practice, the
second and third Cu cleaner tailings will recirculate internally to improve the split of Ni
and Cu units to their respective concentrate. The initial result is showing very good
separation even without any recirculation.
Table 1 Results of Final Float Test
\
Makwa Mayville Resource (RPA – November 2013)
Category and
Deposit
Tonnes Ni Cu Pt Pd Au Co
( Mt) (%) (%) (g/t) (g/t) (g/t) (%)
Indicated
Makwa 7.2 0.61 0.13 0.1 0.36 N/A 0.01
Mayville 26.6 0.18 0.44 0.05 0.14 0.05 N/A
Total Indicated 33.8 0.27 0.37 0.06 0.19 N/A N/A
Inferred
Makwa 0.7 0.27 0.08 0.05 0.14 N/A 0.02
Mayville 5.2 0.19 0.48 0.06 0.15 0.04 N/A
Total Inferred 5.8 0.19 0.43 0.06 0.15 N/A N/A
Note: Resources which are not reserves do not have demonstrated economic viability.
* The PEA (RPA April 2014) completed by the Company is preliminary in nature and
includes inferred mineral resources considered too speculative geologically to have the
economic considerations applied to them that would enable them to be categorized as
mineral reserves and there is no certainty that the PEA will be realized.
Ian Ward P.Eng is overseeing the metallurgical program as a consultant to the
Company and is a Qua lified Person for NI 43 -101 purposes and has approved the
scientific and technical information in this release. The test program is being conducted
under contract with XPS Expert Process Solutions , a Glencore Company , a Sudbury-
based technical consultancy and testing firm. XPS has extensive experience in
flowsheet development and nickel-copper-cobalt ores.
About Grid Metals Corp.
Grid is focused on its Makwa Mayville Project a sulphide nickel copper cobalt PGE
project located in southeastern Manitoba. The Company is positioned to benefit from
the growing demand for metals used in batteries used to power electric vehicles. In
particular demand for nickel is ex pected to grow strongly in the next five years. Grid
also has exposure to lithium through its Mayville Lithium property which has a historical
resource and to palladium through its exploration stage East Bull Lake Property near
Sudbury Ontario.
To find out more about Grid Metals, please visit our website at www.gridmetalscorp.com.
On Behalf of the Board of Grid Metals Corp.
Robin Dunbar – President, CEO & Director
Telephone: 416-955-4773 David Black Investor Relations
Email: [email protected] Email: [email protected]
We seek safe harbour.
This news release contains forward -looking statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and forward -looking information within the meaning of the Securities Act (Ontario)
(together, “forward-looking statements”). Such forward -looking statements may include the Company’s plans for its
properties, the overall economic potential of its properties, the availability of adequate financing and involve known
and unknown risks, uncertainties and other factors w hich may cause the actual results, performance or
achievements expressed or implied by such forward -looking statements to be materially different. Such factors
include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital
costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations,
metallurgical risk, currency fluctuations, fluctuations in the price of nickel, cobalt, copper and other metals,
completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or
failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in
the Company’s Managem ent Discussion and Analysis for the most recent financial period and Material Change
Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
Neither the TSX Venture Exchange nor it Regulations Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.