December 7, 2022 – Vancouver, British Columbia – Major Precious Metals Corp. ("Major Precious Metals" or the "Company") (OTC:SIZYF | FRANKFURT:3EZ) is pleased to report the results of an updated Mineral Resource Estimate ("MRE") for its Skaergaard PGM and Gold Project ("Skaergaard") completed by SLR Consulting (Canada) Ltd. ("SLR"). The 2022 MRE is based on data from 93 diamond drill holes (DDH) and 30 channel sample lines (42,050 m of drilling and 1,409 m of channel sampling) completed at Skaergaard, including the results from channel sampling and 7,787 m (32 DDH) of drilling completed by Major Precious Metals in summer 2021.
- Indicated Mineral Resource estimate of 160 million tonnes (Mt) at 2.23 g/t palladium equivalent (PdEq) resulting in 11.4 million contained ounces PdEq, including 8.04 Moz palladium (Pd), 2.70 Moz gold (Au), and 0.63 Moz platinum (Pt) at a cut-off grade of 1.43 g/t PdEq.
- Inferred Mineral Resource estimate of 205 Mt at 2.14 g/t PdEq resulting in 14.1 Moz PdEq, including 9.11 Moz Pd, 4.13 Moz Au, and 0.74 Moz Pt at a cut-off grade of 1.43 g/t PdEq.
- The 2022 MRE includes updates in mineral horizon selection interpretation, horizon thickness statistics, glacial bathymetry, and a change to physical dyke modelling resulting in an approximate 22% increase in overall resource tonnage and approximate 28% increase in PdEq metal content compared to the 2021 MRE.
- Based on the 2022 MRE results, the Company will be commencing metallurgical test work to produce a conceptual PGE-Au flowsheet and determine potential extraction of secondary elements such as iron-magnetite, vanadium, and titanium. The results of this test work will be incorporated into a future Preliminary Economic Assessment ("PEA") for the Skaergaard Project.
Tony Williams, Chairman and CEO of Major Precious Metals commented, "We are very pleased by the updated MRE results for Skaergaard that not only indicate a substantial increase in overall resource tonnage and palladium and gold metal content, but a significant upgrade from the Inferred Resource to Indicated Resource category. In addition, recent SLR updates to the geological model based on our 2021 drilling and channel sampling program clearly indicate the consistency of grade in each mineralized horizon, and the potential to further upgrade and expand the existing MRE through additional diamond drilling. With these successful MRE results, we are now focused on completing a metallurgical testing program and advancing the Skaergaard Project to a Pre-feasibility Study".
A Technical Report disclosing the 2022 MRE results with an effective date of November 22, 2022 has been completed by SLR and is now available on the Company's SEDAR profile at www.sedar.com. The Technical Report is compliant with National Instrument 43-101 ("NI 43-101") Standards for Disclosure of Mineral Resources.
The Skaergaard Project is located in the central portion of the East Coast of Greenland, approximately 450 km west of Iceland. Major Precious Metals acquired Skaergaard from Platina Resources Ltd. ("Platina") in 2020 and owns a 100% interest in the two Mineral Exploration Licences ("MEL") that comprise the Skaergaard Project (MEL 2007-01 and MEL 2012-25). In January 2021, Major Precious Metals was granted a third MEL adjacent to Skaergaard (MEL 2021-10).
Skaergaard is a platinum group element-gold (PGE-Au) deposit hosted in the leucocratic gabbro layers (L0 to L3) of the Triple Group of the Skaergaard Intrusion, a layered mafic igneous complex in Southeast Greenland. The Project is situated in an area of extremely rugged mountainous terrain, glaciation, and frequently severe climatic conditions and is approximately 40% covered with glaciers, including the large Forbindelses Glacier. The mineralization is strongly layered, with seven mineralized horizons (H0 to H6) recognized to date. H5 and H6 are currently subeconomic horizons which are useful as markers for interpretation, but which may add value to potential surface bulk mining scenarios pending further study.
The updated 2022 MRE builds on the work that was undertaken for the 2021 MRE and includes the assay results from the summer 2021 DDH and channel sampling programs completed by the Company at Skaergaard. The 2022 MRE is built on interpreted mineralized horizons modelled in Leapfrog software, correlated in context of interpretation of the four (L0 through to L3) leucocratic gabbro horizons of the Triple Group, and developed using new PhotoSat topography and image data, palladium to gold (Pd:Au) ratios, platinum (Pt) concentration, and the new simplified geological model. Mineral Resources are estimated for two deposit areas: the main area, located south of the northern edge of the Forbindelses Glacier and under the glacier, and the area north of the Forbindelses Glacier (Figure 1).
The drilled grade and thickness results from the drilling in the 2021 field season agree with those interpreted and interpolated into previously undrilled areas in the 2021 MRE, which supports the interpreted consistency of grade in each horizon and underpins the validity of the ranges set for Mineral Resource classification in the 2022 MRE.
In view of the increases in precious metal prices in recent years, and importance of PGEs, which represent approximately 70% of the Skaergaard deposit's value, the 2022 MRE continues to be expressed in terms of PdEq ounces as opposed to AuEq ounces as in the past.
The 2022 MRE was completed in accordance with CIM Definition Standards on Mineral Resources and Mineral Reserves (CIM Definition Standards – May 2014) incorporated by reference into NI 43-101.
The Qualified Person ("QP") is not aware of any environmental, permitting, legal, title, taxation, socio- economic, marketing, political, or other relevant factors that could materially affect the 2022 MRE.
A summary of the 2022 MRE at a cut-off grade of 1.43 g/t PdEq is presented below in Table 1.
Table 1: Summary of Mineral Resources – Effective Date of November 22, 2022 – Skaergaard Project
|Indicated||H5||N of Glacier||0.13||3.00||0.29||2.47||0.04||0.01||0.00||0.01||0.00|
|H3||N of Glacier||3.36||2.05||0.48||1.40||0.05||0.22||0.05||0.15||0.01|
|H0||N of Glacier||19.41||2.37||2.08||0.18||0.15||1.48||1.30||0.11||0.09|
|Inferred||H5||N of Glacier||13.86||2.34||1.21||0.97||0.11||1.04||0.54||0.43||0.05|
|H3_L1||N of Glacier||0.04||2.40||0.53||1.70||0.04||0.00||0.00||0.00||0.00|
|H0||N of Glacier||15.38||2.20||1.91||0.18||0.14||1.09||0.95||0.09||0.07|
- CIM (2014) definitions were followed for Mineral Resources.
- PdEq grades were calculated using the formula PdEq (g/t) = g/t Pd + (1.09 * g/t Au) + (0.672 * g/t Pt), which assumes metal prices of US$1,725/oz Pd, US$1,800/oz Au, and US$1,250/oz Pt, metallurgical recoveries of 86% Pd, 89% Au, and 80% for Pt, and standard commercial terms for a precious metals concentrate.
- Mineral Resources are estimated at a cut-off grade of 1.43 g/t PdEq, which assumes underground mining costs of US$35/t, processing costs of US$20/t, and general and administration (G&A) costs of US$5/t.
- Reasonable prospects for eventual economic extraction were satisfied by constructing polygons using blocks above a grade-thickness field expressed as minimum mining thickness of two metres multiplied by the cut-off grade (1.43 g/t PdEq), including a visual check on the geometry and spatial continuity of the mineralization.
- Bulk density is 3.12 t/m3.
- Numbers may not add due to rounding.
- The Main area includes material south of the northern edge of the Forbindelses Glacier and under the glacier, and the N of Glacier area includes material to the north of the Forbindelses Glacier.
Figure 1: Mineralized Layer Models and 2022 Mineral Resource Estimate Classification
Updated material classification based on the 2021 DDH and channel sampling results using the same 1.43 g/t PdEq cut-off and 2.0 m minimum thickness criteria from the 2021 MRE, results in large scale conversion of Inferred Mineral Resources to Indicated Mineral Resources for the 2022 MRE. Conversion of Inferred Mineral Resources has led to a 95% increase in Indicated Mineral Resource tonnage and a net 6% decrease in Inferred Mineral Resource tonnage. Figure 2 indicates the differences between the updated 2022 MRE and the 2021 MRE for the Skaergaard Project.
The QP notes that exploration potential could extend to the limits of the mineralized Triple Group horizons inside the boundaries of the Skaergaard Intrusion, which is likely also constrained by the Marginal Border Series rock. Further drilling could increase the Inferred Mineral Resources, upgrade current Inferred Mineral Resources to Indicated or Measured Mineral Resources , further define high- and low-grade areas of mineralization, and delineate barren dyke material more accurately.
With respect to further study, the QP notes that the 2021 assay results on the northeastern plateau and the northern edge of the glacier, along with two historical holes and historical channel samples, will be used to assess the open-pit potential in these areas and to choose a starting point for potential underground mining as part of a future PEA. Additional drill holes may be needed to define the pit areas. This northern area will also be investigated for site infrastructure in the PEA. Further study into the potential for underground bulk mining will also investigate increasing H0 thicknesses using a lower cut-off grade.
Mineral Resource Estimate Approach and Parameters
The 2022 MRE incorporates updated geological interpretation and grade estimation criteria, providing a more refined resource model in known areas as well as expanding the resource base further into the Skaergaard intrusion and below the Forbindelses Glacier to the north.
The 2022 MRE is based on remodeling of the Skaergaard mineralization and lithology in Leapfrog Geo (6.0.4) software, which incorporates updated database work, Platina core resampling in 2020, the 2021 DDH and channel sampling program results, and updated topography and satellite photography.
The QP updated the geological model for the 2022 MRE using updated mineralized horizons and a semi- quantitative mafic dyke model. The rest of the geological model remains relatively unchanged from that constructed for the 2021 MRE. Given that drill holes are spaced approximately 250 m to 700 m apart and mineralized horizons are two metres to four metres thick, the QP used full length composites for each of the mineralized horizons, so that each mineralized horizon intercept on each hole is represented by one composite. Grade interpolation for each mineralized horizon was performed by a spherical search using inverse distance cubed (ID3) in three separate passes at 600 m, 1,200 m, and 3,300 m. A sub-blocked model was built in Leapfrog which split 20 m x 20 m blocks by the height of each model horizon, dipping directly south at the average 20° dip of the mineralized horizons. The QP chose the block size and dip to maximize the continuity of the blocks on each mineralized horizon. Block validation was carried out by generating a series of plan views of block grades and composite grades for Pd, Au, and Pt, for each mineralized horizon. The QP also ran a nearest neighbour (NN) estimate concurrent to the ID³ estimate, and generated swath plots and statistical comparisons for each horizon.
Figure 2: 2022 MRE vs. 2021 MRE Classification Changes
Mineral Resources were estimated at a 1.43 g/t PdEq cut-off grade based on an assumed underground mining scenario to meet reasonable prospects for eventual economic extraction criteria. Mineral Resources have been classified as Indicated Resources and Inferred Resources, with all mineral resources north of the Forbindelses Glacier assigned to the Inferred category.
Full technical details on the 2022 MRE are included in the NI 43-101 technical report for the Skaergaard Project available under the Company's SEDAR profile at www.sedar.com.
Qualified Person Statements
The 2022 MRE was prepared by Philip Geusebroek, M.Sc., P.Geo., Consultant Geologist at SLR Consulting Ltd., based in Toronto, Ontario, Canada. Mr. Geusebroek is an Independent QP as defined in NI 43-101. Mr. Geusebroek has read and approved the contents of this news release, as it relates to the disclosed 2022 MRE results.
Gustavo Delendatti, Ph.D., MAIG, Vice President Exploration of Major Precious Metals, a non-independent QP as defined in NI 43-101 has prepared and approved the scientific and technical information in this news release.
On behalf of the Board of Directors
MAJOR PRECIOUS METALS CORP.
Chairman and CEO
Suite 810 - 789 West Pender Street
Vancouver, BC V6C 1H2
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About Major Precious Metals Corp.
Major Precious Metals Corp. is a Canadian junior mining company focused on its Skaergaard Project in eastern Greenland, which contains one of the largest palladium and gold deposits outside the major PGM producing areas of Russia and South Africa. The Company is currently focused on accelerating the progress of the Skaergaard Project along the Mine Development Cycle and has recently initiated metallurgical test work, and economic evaluation following the results of the 2021 drill program.
Additional information relating to Major Precious Metals is available at www.majorprecious.com and SEDAR at www.sedar.com.
Forward-looking Information Statement
This news release may contain certain "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian and United States securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the development of a mineral resource estimate for the Skaergaard Project, 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 information 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.