NWI.CN · 2022-06-15 12:00:00

Nuinsco Provides Update to Initial Mineral Resource Estimate on the Prairie Lake Critical Minerals & Phosphate Project

Resource Estimates

Nuinsco Provides Update to Initial Mineral Resource Estimate on the

Prairie Lake Critical Minerals & Phosphate Project

HIGHLIGHTS:

 Very large Mineral Resource located in the heart of North America:

o 871.8 million tonne Inferred Mineral Resource including 2.01 kg /t total rare earth oxides

(“TREO”), plus niobium and phosphate.

o 15.6 million tonne Indicated Mineral Resource including 1.67 kg /t TREO, plus niobium and

phosphate.

 Located in the heart of North America in Ontario, Canada, a stable, mining friendly, jurisdiction

 Near to transport and power infrastructure – ready access to markets, both domestic and international.

 P o s i t i o n e d t o b e a k e y N o r t h A m e r i c a n s o u r c e o f C r i t i c a l M i n e r als as identified by the Canadian

government (rare earth elements (“REEs”) and niobium) to meet a n anticipated enormous expansion in

demand for such products.

Toronto, June 15, 2022 – Nuinsco Resources Limited (“ Nuinsco” or the “ Company”) (CSE: NWI) today provided

supplemental information, highlighting the development potentia l of the recently announced initial Mineral

Resource Estimate (“ MRE”) on its Prairie Lake Critical Minerals and Phosphate Project located near Terrace Bay,

Ontario, Canada (“Prairie Lake” or the “Project”).

The significance of the size of the Prairie Lake MRE and the implications of this for a large, secure, domestic supply

of Critical Minerals is readily apparent. Reports of expanding demand for such minerals, in a myriad of applications

in transportation, power distrib ution, green technologies and a host of others (including agriculture) are

innumerable. In fact demand has already begun to expand and is projected to increase rapidly in the coming years.

A large, well located, source of Critical Minerals in North America is of immense added value to the security of the

supply chain; an issue identified by both the Canadian and US governments both of which are attempting to address

with incentives and programs to encourage development of the Critical Minerals sector. The Project is located near

the north shore of Lake Superior, putting it in close or easily accessible reach of:

 The towns of Terrace Bay and Marathon and other smaller villages, able to supply a local workforce

and equipment.

 Highway 17 and Highway 11.

 Canadian Pacific Railway and Canadian National Railway networks.

 High‐capacity (500kV) electrical power transmission line.

 Deep‐water ports at Thunder Bay and Sault Ste. Marie, able to handle ocean going ships.

“With the recent announcement of the initial Prairie Lake MRE, it is important to reiterate some of the factors that

add to the significance of the mineral endowment,” said Paul Jo nes, Nuinsco’s CEO. "First off, the size of the MRE

is remarkable, and the deposit remains open for potential future increase. The Project is very well located in

northwestern Ontario in a stable, mining‐friendly jurisdiction able to provide secure supply for the projected rapid

expansion in demand for Critical Minerals by North American, an d global, industry. Infrastructure is well

established and located nearby, which will positively impact ca pital costs. The Critical Minerals are required to

meet the demands of globally expanding electrification and impl ementation of “green” technologies to combat

climate change, and the phosphate to sustain and improve agricu ltural productivity. We are obviously extremely

pleased with the recent developments on the Project and the impl i c at i o n s f o r d e v e l o p i n g s u c h a l a r g e M i n e r a l

Resource in such a geographically and logistically favourable location. The Company is aggressively moving forward

with other aspects of technical and economic evaluation on the Project.

As tabulated below, the pit‐constrained MRE consists of a 15.6 million tonne Indicated Mineral Resource and a very

large 871.8 million tonne Inferred Mineral Resource. The MRE also includes niobium and phosphate in oxides which,

along with the TREO, are expected to be key drivers of a Preliminary Economic Assessment on the Project that will

commence shortly.

Prairie Lake Project Pit‐Constrained Mineral Resource Estimate(1‐6)

Rare Earth Oxides Niobium Phosp

hate

Class Cut‐Off Tonnes Nd 2O3 P r 6O11 S c 2O3 C e O 2 L a 2O3 S m 2O3 T a 2O5 Y 2O3 T R E O N b 2O5 P 2O5

NSR C$/t M g/t g/t g/t g/t g/t g/t g/t g/t kg/t % %

Indicated 30 15.6 344 96 15 754 300 58 28 100 1.67 0.16 3.71

Inferred 30 871.8 409 82 18 905 388 79 17 127 2.01 0.10 3.39

*TREO = Total Rare Earth Oxides: neodymium, Nd2O3 ; praseodymium, Pr6O11; scandium, Sc2O3; Cerium, CeO2; lanthanum, La2O3; samarium,

Sm2O3; yttrium, Y2O3.

1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio‐

political, marketing, or other relevant issues.

3. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral

Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred

Mineral Resource could potentially be upgraded to an Indicated Mineral Resource with continued exploration.

4. The Mineral Resources were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum

(CIM), CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019)

prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.

5. US$ Metal prices used were $80/Kg Nd 2O3, $80/Kg Pr6O11, $1,500/Kg Sc2O3, $50/Kg Nb2O5, $250/t P2O5, $1.35/Kg CeO2,

$1.35/Kg La2O3, $3.50/Kg Sm2O3, Nil$/t Ta2O5 and $13.00/kg Y 2O3, 0.78 FX all with combine d process recoveries and

payables of 50%, except P2O5 at 75%.

6. The constraining pit optimization parameters were C$2.50/t m ining cost for all material, C$25/t process cost, C$5/t

G&A cost and 45‐degree pit slopes with a C$30/t NSR cut‐off.

The Government of Canada has identified 31 Critical Minerals, including the REEs and niobium identified at Prairie

Lake, that are considered essential for the sustainable economic success of Canada and its allies under its Canadian

Minerals and Metals Plan (“ CMMP”). As part of its commitment under the CMMP, the Government is identifying

initiatives designed to bolster Canadian Critical Minerals proj ects and supply chain development to help advance

the competitiveness of the country’s minerals and metals sector.

The Prairie Lake MRE was conducted in accordance with National Instrument 43‐101 (" NI 43‐101") standards of

disclosure and the CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014). The Project

consists of 46 mineral claims covering an area of ~630 ha and i s superbly located in a politically stable jurisdiction;

is exceptionally well located near available rail, road, shippi ng, and power infrastructure; and is ideally placed in

North America with respect to current supply chain concerns for critical minerals. The mineralization of economic

interest contained within the Prairie Lake complex occurs at su rface and extends to unknown depths below the

deepest drilling yet conducted (circa 525 metres vertically). T here is no indication that mineralization diminishes

with depth and is known to occur at surface throughout the extents of the complex.

Eugene Puritch, P.Eng., FEC, CET acts as Nuinsco's independent Qualified Person under National I nstrument 43‐

101. Mr. Puritch has reviewed and approved the technical contents of this news release. A technical report, which

is being prepared in accordance with National Instrument 43‐101 , will be available on SEDAR ( www.sedar.com)

under the Company's issuer profile within 45 days of the May 31, 2022 announcement of the MRE.

About Nuinsco Resources Limited

Nuinsco Resources has over 50 years of exploration success and is a growth‐oriented, multi‐commodity mineral

exploration company focused on prospective opportunities in Can ada and internationally. Currently the Company

has four properties in Ontario – the high‐grade Sunbeam Gold Property near Atikokan, the Dash Lake Gold Property

near Terrace Bay, the large multi‐commodity (rare‐earths, niobium, tantalum, phosphate) Prairie Lake Project near

Terrace Bay, and the Zig Zag Lake Property (lithium, tantalum) near Armstrong. In addition, Nuinsco has an

agreement for gold exploitation at the El Sid Project in the Eastern Desert of Egypt.

Cautionary Note Regarding Forward‐Looking Information

This press release contains forward‐looking statements or infor mation (collectively, “FLI”) within the meaning of

applicable Canadian securities legislation. FLI is based on exp ectations, estimates, projections and interpretations

as at the date of this press release.

All statements, other than statements of historical fact, inclu d e d h e r e i n a r e F L I t h a t i n v o l v e v a r i o u s r i s k s ,

assumptions, estimates and uncertainties. Generally, FLI can be id e n ti f i e d b y th e us e o f s tat e me n ts t ha t i n c l u de

words such as “seeks”, “believes” , “anticipates”, “plans”, “con tinues”, “budget”, “scheduled”, “estimates”,

“expects”, “forecasts”, “intends”, “projects”, “predicts”, “pro poses”, "potential", “targets” and variations of such

words and phrases, or by statements that certain actions, events or results “may”, “will”, “could”, “would”, “should”

or “might”, “be taken”, “occur” or “be achieved.”

FLI herein includes, but is not limited to: future drill results; the Company’s ability to convert Inferred Mineral

Resources into Measured and Indicated Mineral Resources; enviro nmental matters; stakeholder engagement and

relationships; parameters and methods used to estimate the Mineral Resources (each an “MRE”) at the Fenelon and

Martiniere properties (collectively the “Deposits”); the prospects, if any, of the Deposits; future drilling at the

Deposits; and the significance of historical exploration activities and results.

FLI is designed to help you understand management’s current vie ws of its near‐ and longer‐term prospects, and it

may not be appropriate for other purposes. FLI by their nature are based on assumptions and involve known and

unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of

the Company to be materially different from any future results, performance or achievements expressed or implied

by such FLI. Although the FLI contained in this press release i s based upon what management believes, or believed

at the time, to be reasonable assumptions, the Company cannot assure shareholders and prospective purchasers of

securities of the Company that actual results will be consisten t with such FLI, as there may be other factors that

cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person

assumes responsibility for the accuracy and completeness of any such FLI. Except as required by law, the Company

does not undertake, and assumes no obligation, to update or rev ise any such FLI contained herein to reflect new

events or circumstances, except as may be required by law. Unle ss otherwise noted, this press release has been

prepared based on information available as of the date of this press release. Accordingly, you should not place undue

reliance on the FLI or information contained herein.

Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying

assumptions prove incorrect, actual results may vary materially from those described in FLI.

Assumptions upon which FLI is based, without limitation, includ e: the ability of exploration activities to accurately

predict mineralization; the accuracy of geological modelling; the ability of the Company to complete further

exploration activities; the legitimacy of title and property interests in the Deposits; the accuracy of key assumptions,

parameters or methods used to estimate the MREs; the ability of the Company to obtain required approvals; the

results of exploration activities; the evolution of the global economic climate; metal prices; environmental

expectations; community and non‐governmental actions; and any i m p a c t s o f C O V I D ‐ 1 9 o n t h e D e p o s i t s , t h e

Company’s financial position, the Company’s ability to secure r equired funding, or operations. Risks and

uncertainties about the Company’s business are more fully discussed in the disclosure materials filed with the

securities regulatory authorities in Canada, which are available at www.sedar.com.

Information Concerning Estimates of Mineral Resources

The disclosure in this press release and referred to herein was prepared in accordance with NI 43‐101 which differs

significantly from the requirements of the U.S. Securities and Exchange Commission (the "SEC"). The terms

"Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" used in this press

release are in reference to the mining terms defined in the Canadian Institute of Mining, Metallurgy and Petroleum

Standards (the "CIM Definition Standards"), which definitions have been adopted by NI 43‐101. Accordingly,

information contained in this press release providing descriptions of our mineral deposits in accordance with NI 43‐

101 may not be comparable to similar information made public by other U.S. companies subject to the United States

federal securities laws and the rules and regulations thereunder.

Investors are cautioned not to assume that any part or all of Mineral Resources will ever be converted into Mineral

Reserves. Pursuant to CIM Definition Standards, "Inferred Miner al Resources" are that part of a Mineral Resource

for which quantity and grade or quality are estimated on the ba sis of limited geological evidence and sampling.

Such geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred

Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not

b e c o n v e r t e d t o a M i n e r a l R e s e r v e . H o w e v e r , i t i s r e a s o n a b l y e xpected that the majority of Inferred Mineral

Resources could be upgraded to Indicated Mineral Resources with continued exploration. Under Canadian rules,

estimates of Inferred Mineral Resources may not form the basis of Feasibility or Pre‐Feasibility studies, except in

rare cases. Investors are cautioned not to assume that all or any part of an Inferred Mineral Resource is economically

or legally mineable. Disclosure of "contained ounces" in a Mineral Resource is permitted disclosure under Canadian

regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute

"Mineral Reserves" by SEC standards as in place tonnage and grade without reference to unit measures.

Canadian standards, including the CIM Definition Standards and NI 43‐101, differ significantly from standards in the

SEC Industry Guide 7. Effective February 25, 2019, the SEC adopted new mining disclosure rules under subpart 1300

of Regulation S‐K of the United States Securities Act of 1933, as amended (the "SEC Modernization Rules"), with

compliance required for the first fiscal year beginning on or a fter January 1, 2021. The SEC Modernization Rules

replace the historical property disclosure requirements included in SEC Industry Guide 7. As a result of the adoption

of the SEC Modernization Rules, the SEC now recognizes estimate s of "Measured Mineral Resources", "Indicated

Mineral Resources" and "Inferred Mineral Resources". Information regarding Mineral Resources contained or

referenced in this press release may not be comparable to similar information made public by companies that report

according to U.S. standards. While the SEC Modernization Rules are purported to be "substantially similar" to the

CIM Definition Standards, readers are cautioned that there are differences between the SEC Modernization Rules

and the CIM Definitions Standards. Accordingly, there is no assurance any Mineral Resources that the Company may

report as "Measured Mineral Resources", "Indicated Mineral Resources" and "Inferred Mineral Resources" under NI

43‐101 would be the same had the Company prepared the Mineral Resource Estimates under the standards adopted

under the SEC Modernization Rules.

To learn more, please visit www.nuinsco.ca or contact:

Paul Jones, CEO Sean Stokes, Executive VP Cathy Hume, Consultant Instagram:

@nuinscoresources

[email protected] [email protected] [email protected]

Twitter:

@NWIResources

← Back to feed