M3 Metals Reduces Cap-Ex BY 85% ON Iron ORE Project and Seeks Partner
Suite 2310 – 1177 West Hastings St
Vancouver, BC Canada V6E 2K3
T: 604-669-2279 / F: 604-602-1606
January 24, 2020
M3 METALS REDUCES CAP-EX BY 85% ON IRON ORE PROJECT AND SEEKS PARTNER
M3 Metals Corp. (TSX-V: MT; FSE: XOVP.F) (“M3 Metals” or the “Company”) is pleased to announce that
it has completed a re-scoping study (the “Study”) on it’s 100 percent owned Block 103 Iron Ore Project
(the “Project”) located in Newfoundland and Labrador, Canada. The Study was successful in reducing the
projected capital costs on the Project from approximately 6 Billion dollars to 840 million dollars CAD. This
was achieved by implementing a phased capacity approach beginning with the “base case” 4 million tonne
per year projected production of high -grade premium iron ore fines concentrat e from the previously
proposed 16 million tonnes per year and by modifying processing methods and introducing new
efficiencies.
The Study also presents a projected operating cost per tonne (Op-Ex) for the base case 4 million tonne
per year high grade ( projected average 67.6 percent total iron based on 2013 PEA ) concentrate at 51
dollars C AD per tonne Freight on Board (“FOB”) cost, excluding shipping costs. These numbers are
calculated in Canadian dollars (“CAD”) and should be converted accordingly when considering pricing of
the commonly referenced 62 percent benchmark and premium price s that are com monly reported in
United States dollars (“USD”).
Previously, the Company has spent over $38 million advancing the project to the PEA stage (Preliminary
Economic Assessment). As a result, the Company defined a total of 7.2 billion tonnes at 29.2% total iron
with metallurgical test results showing a projected 69.5% iron concentrate, and low 0.4:1 strip ratio. The
historic 2013 43 -101 Technical Report defining the Block 103 resource is available on Sedar and on the
Company’s website.
The new re-scoping study completed by Hatch Ltd. was mandated to consider alternative rescaled
schemes that could make the Block 103 Project economically viable and more attractive for potential
investment. The Study was completed in accordance with AACE International Class 5 cost estimate
classification level and focuses on the costs associated with equipment and processing methods required
to develop the Block 103 Iron Ore deposit. The Study focused on the reduction of capital required to start
a lower-tonnage base case production scenario from the historic resource, as such the opportunity exists
to re-model and define a higher grade pocket (or “starter pit”) within the 7.2 billion tonne resource that
could further improve the initial economics on the Project.
The Study integrates a conceptual dry stacked tailings facility to provide less environmental risk and
simpler rehabilitation and closure, smaller footprint and reduction of water consumption.
Adrian Smith, President of M3 Metals Corp. comments “We are extremely pleased with the outcome of
the report as we have shown that the capital costs can be significantly reduced making the Project more
attractive for potential investment. The report compartmentalizes the production outlining a “base case”
at 4 million tonnes of concentrate per year, while still allowing the project to be scaled for greater
production and reserves the potential to produce the high-quality iron pellets that are growing in demand
Suite 2310 – 1177 West Hastings St
Vancouver, BC Canada V6E 2K3
T: 604-669-2279 / F: 604-602-1606
especially in China. When you consider the current and growing demand for the premium iron ore product
that could be produced from our Project, adjust based on currency and the premium value gained for the
high-grade material, the economics look very promising.”
M3 Metals is currently seeking a partner to move the Project through feasibility and towards production.
The Study will not be publicly posted, however can be made available to interested parties by signing a
waiver and indemnification form dictated by Hatch Ltd. Additional information is available on the Block
103 Project page at www.m3metalscorp.com.
Disclaimer
Adrian Smith, P.Geo., is Qualified Person as defined by National Instrument 43 -101 for the above -
mentioned project. The QP is a member in good standing of the Association of Professional Engineers and
Geoscientists of British Columbia (APEGBC) and the Professional Engineers & Geoscientists Newfoundland
& Labrador (PEGNL) as a registered Professional Geoscientist (P.Geo.). M r. Smith has reviewed and
approved the technical information disclosed above.
The Mineral Resource estimate for the Block 103 Property is based on results from 81 diamond drill holes
totaling 23,735 metres and is effective as of February 4, 2013. Mr. Michael Kociumbas, P.Geo., and Mr.
Rick Risto, P.Geo., both with independent firm WGM, are Qualified Persons as defined by NI 43 -101. Mr.
Risto has reviewed and approved the underlying sampling, analytical and test data used for the estimate
and Mr. Kociumbas is responsible for auditing the in-house Mineral Resource estimate as supplied by the
Company and has approved the technical data contained above.
WGM is of the opinion that the iron mineralization delineated on the property will be amenable to open
pit mining. The estimate is classified as an Inferred Mineral Resource, consistent with the CIM definitions
referred to in NI 43 -101. Mineral resources, which are not mineral reserves, do not have demonstrated
economic viability. The Company is not aware of any environmental, permitting, legal, title, taxation,
socio-political, marketing or other issues which may materially affect its estimate of Mineral Resources.
The re-scoping study (the “Study”) preformed by Hatch Ltd. is a Scoping study and, accordingly, all
estimates and projections are based on limited and incomplete data. Therefore, while the conclusions,
estimates and projections may be considered to be generally indicative of the nature and quality of the
Project, they are not definitive. No represent ations or predictions are intended as to the results of future
work, nor can there be any promises that the conclusions, estimates and projections contained in the Study
will be sustained in future work associated to the Project.
ABOUT M3 METALS CORP.
M3 Metals Corp. is a Canadian listed Company, focused on creating shareholder value through discoveries
and strategic development of mineral properties in North America. For additional information please visit
Suite 2310 – 1177 West Hastings St
Vancouver, BC Canada V6E 2K3
T: 604-669-2279 / F: 604-602-1606
the Company’s website at www.m3metalscorp.com. You may also email [email protected] or call
investor relations at (604) 669-2279.
M3 METALS CORP.
“Adrian Smith”
Adrian Smith
President
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES
OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release may contain certain “Forward- Looking Statements” within the meaning of the United States P rivate Securities
Litigation Reform Act of 1995 and applicable Canadian securities laws. When or if used in this news release, the words
“anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions
identify forward-looking statements or information. These forward-looking statements or information may relate to future prices
of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government
requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure,
currency risks including the exchange rate of US$ for CDN$, changes in exploration costs and government royalties or taxes in
Canada, the United States or other jurisdictions and other factors or information. Such statements represent the Company’s
current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while
considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social
risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements
to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-
looking statements. The Company does not intend, and does not assume any obligation, to update these forward -looking
statements or inf ormation to reflect changes in assumptions or changes in circumstances or any other events affections such
statements and information other than as required by applicable laws, rules and regulations.