Search Minerals Announces Increased Deep Fox and Foxtrot Mineral Resource Estimates
SEARCH MINERALS INC.
# 108, 901 West Third Street, North Vancouver, B.C. V7P 3P9 T (604) 998-3432 . F (604) 608-5717
www.searchminerals.ca . E [email protected]
NEWS RELEASE
FOR IMMEDIATE RELEASE: April 11, 2022
SEARCH MINERALS ANNOUNCES INCREASED DEEP FOX AND FOXTROT MINERAL
RESOURCE ESTIMATES
Vancouver, B.C. April 11, 2022 – Search Minerals Inc. (TSXV: SMY | OTCQB: SHCMF) (“Search” or the
“Company”), is pleased to announce updated Mineral Resource Estimates by SLR Consulting (Canada)
Ltd. (SLR) for the DEEP FOX and FOXTROT Critical Rare Earth Element (“CREE”) properties in S outh-
East Labrador. The Mineral Resource estimate for DEEP FOX includes resul ts from the recently
completed Phase 3 drill program, new metallurgy recovery data, and updated rare earth price
forecasts. The updated FOXTROT resource estimate is based on the previous drill programs, new
metallurgy recovery data, and updated rare earth price forecasts. The resource estimates for both
properties are based on an open pit/underground (OP/UG) mining scenario and will form the basis of
the upcoming Preliminary Economic Assessment (“PEA”).
HIGHLIGHTS OF DEEP FOX MINERAL RESOURCE ESTIMATE (OP/UG):
• 3,906,000 tonnes OP Indicated Resource (≥C$260/t NSR cut-off);
• 1,028,000 tonnes OP Inferred Resource (≥C$260/t NSR cut-off);
• 1,148,000 tonnes UG Indicated Resource (≥C$335/t NSR cut-off);
• 2,269,000 tonnes UG Inferred Resource (≥C$ 335/t NSR cut-off);
• Mineralization is open at depth (below 200 m vertical depth) and along strike;
• Phase 4 drill program is required to explore below 200m vertical depth (UG) and to increase
indicated resources underground.
HIGHLIGHTS OF FOXTROT MINERAL RESOURCE ESTIMATE (OP/UG):
• 4,577,000 tonnes OP Indicated resource (≥C$260/t NSR cut-off);
• 413,000 tonnes OP Inferred resource (≥C$260/t NSR cut-off);
• 5,462,000 tonnes UG Indicated resource (≥C$335/t NSR cut-off);
• 2,593,000 tonnes UG Inferred resource (≥C$335/t NSR cut-off);
• Mineralization is open at depth – below 450m vertical depth;
• Phase 4 infill drill program is required to increase and improve UG resources.
Greg Andrews, President and CEO of the Company states: “We are very excited to provide the
updated and increased Mineral Resource estimates for both DEEPFOX and FOXTROT. The updated
Mineral Resource estimate provides the anticipation of an extended project mine life and increased
production of rare ear th elements for our upcoming PEA report. The recent federal budget has
addressed the need for funding and advancement of a Critical Minerals Strategy in Canada and we
believe, Search is well poised to benefit from these funding and initiatives. We believe the Company
SEARCH MINERALS INC.
# 108, 901 West Third Street, North Vancouver, B.C. V7P 3P9 T (604) 998-3432 . F (604) 608-5717
www.searchminerals.ca . E [email protected]
is well positioned to become a crucial player in the creation of a secure North American rare earth
element supply chain.”
Andrews added: “We are currently completing our 70t bulk sample at SGS Canada and will have
approximately 20t of REE concentrate for future processing using our Direct Extraction Technology.
Our goal is to produce a neodymium metal bar within a year.”
DEEP FOX RESOURCE ESTIMATE
SLR estimated the DEEP FOX Mineral Resources using drill hole and surface channel data available as
of December 31, 2021. Table 1 summarizes the pit constrained and underground constrained Mineral
Resource estimates by classification and Table 2 outlines the inputs used to calculate the NSR factors
used. Mineral Reserves have not yet been estimated for the project. The primary rare earth elements
listed are Praseodymium (Pr), Neodymium (Nd), Terbium (Tb) and Dysprosium (Dy).
TABLE 1 Estimated Mineral Resources for the DEEP FOX Project as of December 31, 2021
Search Minerals Inc. – DEEP FOX Project
Classification Tonnage Pr Nd Dy Tb
000s t ppm ppm ppm ppm
Open Pit
Indicated 3,906 399 1,482 201 34
Inferred 1,028 332 1,243 181 30
Underground
Indicated 1,148 378 1,426 203 34
Inferred 2,269 382 1,443 206 35
Total Indicated 5,054 394 1,469 202 34
Total Inferred 3,297 366 1,381 198 33
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Open Pit Mineral Resources were reported inside a resource shell at a pit discard NSR cut -off value of
C$260/t. Underground Mineral Resources were constrained with mineralization wireframes below the
resource shell and validated using underground mining s olids based on an NSR cut -off value of C$335/t.
Both cut-off values account for all processing, G&A, refining, and transportation charges. Mining costs were
assumed at C$6.50/t ore mined and C$5.00/t waste mined for open pit and C$75.00/t for underground
3. NSR values were assigned to blocks using metal prices, metallurgical recoveries, payables (as shown in their
respective sections of this report) for each individual element.
4. A minimum mining width of 2.0 m was used for both open pit and underground.
5. Bulk density varies from 2.71 t/m3 to 2.92 t/m3.
6. Revenue attributable to Pr, Nd, Dy, and Tb represent approximately 92% of the total revenue.
SEARCH MINERALS INC.
# 108, 901 West Third Street, North Vancouver, B.C. V7P 3P9 T (604) 998-3432 . F (604) 608-5717
www.searchminerals.ca . E [email protected]
7. The estimate is of Mineral Resources only and because these do not constitute Mineral Reserves, they do
not have demonstrated economic viability.
8. Totals may not add or multiply accurately due to rounding.
TABLE 2 Inputs Used to Calculate the NSR Factors
Oxide Price
Element to Oxide
Conversion Factor Recoveries NSR Factor
Element (US$/kg) (%) (C$/ppm)
Praseodymium 108 1.17 88.6 0.137
Neodymium 110 1.17 86.2 0.135
Dysprosium 614 1.15 84.0 0.703
Terbium 1,535 1.15 84.0 1.763
Notes:
1. An exchange rate of 1.25 (C$:US$) was used to convert oxide prices.
2. Off-site treatment charges of US$5.00/kg for total rare earth oxides (TREO) plus US$20.00/kg for heavy rare
earth oxides (HREO) were assumed and are included in the operating costs.
3. Recoveries to a mixed REO concentrate are based on test -work and a further recovery loss for separation
has been assumed (2% for Neodymium and Praseodymium, and 5% for all HREO).
The DEEP FOX Mineral Resource estimation was based on 60 drill holes and 31 surface channels,
totalling 2,166.0 m of mineralized core and 573.8 m of mineralized channel samples. The wireframes
were modelled in Leapfrog Geo 2021.2.2 software with the interpretation constrained using a
minimum NSR value of C$260/t and a minimum mining width of 2.0 m. The DEEP FOX deposit
comprises two resource wireframes, Hanging Wall Zone (HW) and Footwall Zone (FW ). Narrow
intercepts were expanded to achieve a minimum thickness where required, and occasional assays
below the minimum NSR modelling value were included to maintain wireframe continuity. Evaluation
of raw assay grade values indicated that high -grade val ues did not require capping. Assays were
composited to fixed two -metre-long intervals within resource wireframes, adding intervals shorter
than half length to previous composite. (FIGURE 1 – DEEP FOX Resource Wireframes and Resource
Shell)
Block modelling and grade estimation were completed using the Leapfrog Geo EDGE module . The
grade was estimated using Ordinary Kriging (OK) with variable orientations in a single pass. For the
FW and HW zones, blocks were estimated using a maximum of eight samples, a single sample
minimum, and a limit of two samples per drill hole. The grad es were estimated into a whole block
model with 5 metre x 2.5 metre x 5 metre block size, using majority rules for resource domain
flagging. Resources were reported inside an optimized pit resource shell generated with Whittle
software. Mineral Resource cl assification is based on the sample spacing as well as the level of
confidence of the “qualified person” (as such term is defined in National Instrument 43 -101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”)) in the geological knowledge and in put
information.
SEARCH MINERALS INC.
# 108, 901 West Third Street, North Vancouver, B.C. V7P 3P9 T (604) 998-3432 . F (604) 608-5717
www.searchminerals.ca . E [email protected]
FIGURE 1 DEEP FOX Resource Wireframes and Resource Shell
FOXTROT RESOURCE ESTIMATE
SLR estimated the FOXTROT Mineral Resources using drill hole and surface channel data available as
of December 31, 2021. Table 3 summarizes the pit constrained and underground constrained Mineral
Resource estimates by classification and Table 2 outlines the inputs used to calculate the NSR factors
used. Mineral Reserves have not yet been estimated at the project. The primary rare earth elements
listed are Praseodymium (Pr), Neodymium (Nd), Terbium (Tb) and Dysprosium (Dy).
TABLE 3 Estimated Mineral Resources for the FOXTROT Proje ct as of
December 31, 2021
Search Minerals Inc. – FOXTROT Project
Classification Tonnage Pr Nd Dy Tb
000s ppm ppm ppm ppm
Open Pit
Indicated 4,577 366 1,372 175 30
Inferred 413 322 1,202 173 29
Underground
SEARCH MINERALS INC.
# 108, 901 West Third Street, North Vancouver, B.C. V7P 3P9 T (604) 998-3432 . F (604) 608-5717
www.searchminerals.ca . E [email protected]
Indicated 5,462 365 1,366 177 30
Inferred 2,593 379 1,413 177 31
Total Indicated 10,040 366 1,368 176 30
Total Inferred 3,006 371 1,384 177 30
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Open Pit Mineral Resources were reported inside a resource shell at pit discard NSR cut -off value of
C$260/t. Underground Mineral Resources were constrained with mineralization wireframes below the
resource shell and validated using underground mining solids based on an NSR cut -off value of C$335/t.
Both cut-off values account for all processing, G&A, refining, and transportation charges. Mining costs were
assumed at C$6.50/t ore mined and C$5.00/t waste mined for open pit and C$75.00/t for underground
3. NSR values were assigned to blocks using metal prices, metallurgical recoveries, payables (as shown in their
respective sections of this report) for each individual element.
4. A minimum mining width of 2.0 m was used for both open pit and underground.
5. Bulk density varies from 2.71 t/m3 to 2.92 t/m3.
6. Revenue attributable to Pr, Nd, Dy, and Tb represent approximately 92% of the total revenue.
7. The estimate is of Mineral Resources only and because these do not constitute Mineral Reserves, they do
not have demonstrated economic viability.
8. Totals may not add or multiply accurately due to rounding.
The FOXTROT Mineral Resource estimation was based on 57 drill holes and 18 surface channels,
totalling 1,675.6 m of mineralized core and 274.4 m of mineralized channel sampling. The wireframes
were modelled in GEMS 6.8.1 software with the interpretation constrained u sing a minimum NSR
value of C$260/t and a minimum mining width of 2.0 m. The FOXTROT deposit comprises three
resource wireframes: Hanging Wall Zone (HW), Footwall Zone (FW), and Core Zone (C). Narrow
intercepts were expanded to achieve a minimum thickness where required, and occasional assays
below the minimum NSR modelling value were included to maintain wireframe continuity. Evaluation
of raw assay grade values indicated that high -grade values did not require capping. Assays were
composited to fixed two -metre-long intervals within resource wireframes, discarding composites
shorter then 0.5 m. (FIGURE 2 – Foxtrot Resource Wireframes and Resource Shell)
Block modelling and grade estimation were completed using Geovia Gems 6.8.3. The grade was
estimated using Ordinary Kriging (OK) in two passes. Block grades were estimated using a maximum
of five samples, minimum a single sample, and a limit of two samples per drill hole in the first pass,
and maximum of six samples, minimum a single sample, and no restriction per drill hole in the second
pass. The grades were estimated into a percent block model with 5 metre x 2.5 metre x 5 metre block-
size. Resources were reported inside an optimized pit resource shell generated with Whittle software.
Mineral Resource classi fication is based on the sample spacing. Mineral Resource classification is
based on the sample spacing as well as the Qualified Person’s level of confidence in the geological
knowledge and input information.
SEARCH MINERALS INC.
# 108, 901 West Third Street, North Vancouver, B.C. V7P 3P9 T (604) 998-3432 . F (604) 608-5717
www.searchminerals.ca . E [email protected]
FIGURE 2 Foxtrot Resource Wireframes and Resource Shell
DEEP FOX AND FOXTROT DEPOSITS
The DEEP FOX Mineral Resource, including Phase 1 to Phase 3 drill data, has increased by
approximately 25% from the 2019 estimate that was based on the Phase 1 and Phase 2 drill programs
(see Technical Report of the Deep Fox Project, Newfoundland and Labrador, Canada.NI 43-101 Report
Katherine M. Masun November 12, 2019). A phase 4 drill program at DEEP FOX anticipates exploring
for mineralization below the 200m level (underground) and upgrading inferred underground
resources to indicated resources.
The FOXTROT Mineral Resource, including Phase 1 to Phase 3 drill data, has increased by
approximately 60% from the 2016 estimate using updated metallurgical recoveries and rare earth
prices (see Technical Report of the Foxtrot Project, Newfoundland and Labrado r, Canada.NI 43 -101
Report Katherine M. Masun Ian C. Weir John R. Goode April 28, 2016 ). The mineralization is open
below 450m depth. A phase 4 drill program at FOXTROT would explore for additional mineralization
below the 450m level (underground) and hel p to upgrade inferred underground resources to
indicated resources.
The DEEP FOX (formerly Deepwater Fox) property (see Search Minerals news releases Jan. 27th 2015
and Oct. 15th 2015) occurs about 2 km NE from the port of St. Lewis on the SE Labrador coast and
SEARCH MINERALS INC.
# 108, 901 West Third Street, North Vancouver, B.C. V7P 3P9 T (604) 998-3432 . F (604) 608-5717
www.searchminerals.ca . E [email protected]
within 12 km of the FOXTROT Deposit (10 km west of St. Lewis). Both resources can be accessed by
all-weather gravel and paved roads and by water through the port of St. Lewis.
TABLE 4 Estimated Mineral Resources for the FOXTROT and DEEP FOX Projects as of
December 31, 2021
Search Minerals Inc. – FOXTROT and DEEP FOX Projects
Classification Tonnage Pr Nd Dy Tb
000s ppm ppm ppm ppm
Open Pit
Indicated 8,483 381 1,422 187 32
Inferred 1,441 329 1,231 179 30
Underground
Indicated 6,611 368 1,376 182 31
Inferred 4,862 380 1,427 191 33
Total Indicated 15,094 375 1,402 185 32
Total Inferred 6,303 369 1,382 188 32
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Open Pit Mineral Resources were reported inside a resource shell at pit discard NSR cut -off value of
C$260/t. Underground Mineral Resources were constrained with mineralization wireframes below t he
resource shell and validated using underground mining solids based on an NSR cut -off value of C$335/t.
Both cut-off values account for all processing, G&A, refining, and transportation charges. Mining costs were
assumed at C$6.50/t ore mined and C$5.00/t waste mined for open pit and C$75.00/t for underground
3. NSR values were assigned to blocks using metal prices, metallurgical recoveries, payables (as shown in their
respective sections of this report) for each individual element.
4. A minimum mining width of 2.0 m was used for both open pit and underground.
5. Bulk density varies from 2.71 t/m3 to 2.92 t/m3.
6. Revenue attributable to Pr, Nd, Dy, and Tb represent approximately 92% of the total revenue.
7. The estimate is of Mineral Resources only and because these do not constitute Mineral Reserves, they do
not have demonstrated economic viability.
8. Totals may not add or multiply accurately due to rounding.
SEARCH MINERALS INC.
# 108, 901 West Third Street, North Vancouver, B.C. V7P 3P9 T (604) 998-3432 . F (604) 608-5717
www.searchminerals.ca . E [email protected]
Qualified Persons:
Katharine M. Masun, P.Geo . Consultant Geologist, SLR Consulting (Canada), Qualified Person (as
defined by NI 43-101), and Tudorel Ciuculescu, P.Geo., Consultant Geologist, SLR Consulting (Canada),
Qualified Person (as defined by NI 43 -101) have prepared and take responsibility for the Deep Fox
and Foxtrot Mineral Resource estimates.
Randy Miller, Ph.D., P.Geo, is the Company’s Vice President, Exploration, and is a “qualified person”
(as defined by NI 43 -101) and has supervised the preparation of and approved all scientific and
technical information herein and has conducted appropriate verification on the underlying data. The
Company will endeavor to meet high standards of integrity, transparency, and consistency in
reporting technical content, including geological and assay (e.g., REE) data.
About Search Minerals Inc.
Led by a proven management team and board of directors, Search is focused on finding and
developing Critical Rare Earths Elements (CREE), Zirconium (Zr) and Hafnium (Hf) resources within the
emerging Port Hope Simpson – St. Lewis CREE District of South East Labrador. The Company controls
a belt 63 km long and 2 km wide and is road accessible, on tidewater, and located within 3 local
communities. Search has completed a preliminary economic assessment report for FOXTROT, and a
resource estimate for DEEP FOX. Search is also working on three exploration prospects along the belt
which include: FOX MEADOW, SILVER FOX and AWESOME FOX.
Search has continued to optimize our patented Direct Extraction Process technology with the support
from the Department of Industry, Energy a nd Technology , Government of Newfoundland and
Labrador, and from the Atlantic Canada Opportunity Agency. We have completed two pilot plant
operations and produced highly purified mixed rare earth carbonate concentrate and mixed REO
concentrate for separation and refining. We also recognize the continued support by the Government
of Newfoundland and Labrador for its Junior Exploration Program.
Search Minerals was selected to participate in the Government of Canada Accelerated Growth Service
(“AGS”) initiative, which supports high growth companies. AGS, as a ‘one-stop shop’ model, provides
Search with coordinated access to Government of Canada resources as Search continues to move
quickly to production and contribute to the establishment of a stable and secure rare earth element
North American and European supply chain.
For further information, please contact:
Greg Andrews
President and CEO
Tel: 604-998-3432