DNI Metals Inc. holds a 2,720 sq km (272,000 ha) land position in northeast Alberta, 120km north of Fort McMurray, over polymetallic black shales which are locally enriched in Molybdenum, Nickel, Uranium, Vanadium, Zinc, Copper, Cobalt, Silver, Gold, Lithium, Specialty Metals (eg:Sc,Th) and Rare Earth Elements (REE). The Alberta land position was assembled during 2007-2009 and has since been periodically modified to enhance coverage and
DNI’s focus is on exploring and developing bulk mineable mineralized zones which can be processed by heap leaching. DNI has identified six polymetallic 100-300 sq km systems or zones on the Property, which collectively represent six distinct sub-properties whose size is appropriate for hosting the type of flatlying near-surface bulk mineable polymetallic enrichment zones sought by DNI. The polymetallic zones are envisaged to extend over 50 sq km, or larger, areas each. The six polymetallic systems are contiguous and collectively comprise DNI's Alberta SBH Property package.
DNI has actively explored the Property since its acquisition, and has advanced one of the six mineralized zones, the Buckton Zone, through resource delineation to the scoping study stage. DNI commenced drill testing of a second Zone, the Buckton South Zone, in 2012 and delineated a maiden inferred resource therefrom in February 2013.
The Buckton Zone is the most advanced at the SBH Property with an inferred resource of approximately 3.5 billion short tons over a portion of the Zone, parts of which are exposed at surface. The resources contain
Mo-Ni-U-V-Zn-Cu-Co-Li as well as Specialty Metals Sc+Th and Rare Earth
Elements. DNI continues to expand this resource which is in the preliminary economic analysis stage (Scoping Study in progress). In addition, DNI delineated a 548 million short ton maiden inferred resource from the Buckton South Zone located seven km to the south of the Buckton Zone. The Buckton South maiden resource is of similar grade as that identified over the Buckton Zone and the two Zones may be connected.
Polymetallic black shale is a novel deposit type which has gained recognition over the past decade as a potential host to immense deposits as a long term source to metals. Milestone advances during the past decade in application of industrial scale bioleaching (bioheapleaching) to extraction of metals from polymetallic black shales significantly enhances prominence of this deposit type worldwide, especially when considering the demonstrated favourable capital and operating cost requirements, favourable environmental profile and lesser energy dependence of bioleaching techniques when compared to traditional smelting and refining processes. The Alberta black shales share many similarities with other well known metal bearing black shales from elsewhere in the
The Property’s location in a mature mining district, in a well organized regulatory, jurisdictional and permitting framework tailored to the development of laterally extensive deposits, provides significant logistical and infrastructural advantages rarely available elsewhere. The local availability of many processing reagents is an added benefit. The local availability of Sulphur, as a waste product from surrounding oil sands operations, is also an added benefit to any Sulphur consuming leaching methods which might ultimately be applied for the recovery of metals from the
General Overview - Alberta SBH Property Package
DNI's Alberta SBH Property package comprises 2,720 sq km (272,000 ha) land position, all of which area is underlain by the targeted black shale formations as shown by extensive regional oil/gas drilling public databases.
This contiguous Property, located approximately 120 kilometers north of Fort McMurray, is held 100% by DNI under Metallic and Industrial Mineral Permits. DNI commenced land assembly in late 2007, and expanded it in 2008 and 2009, and has since been periodically modified to enhance coverage and tenure to secure projected extensions of polymetallic zones identified on the
The SBH Property overlies
near-surface flatlying black shale Formations which are locally enriched in recoverable Base Metals, Uranium, Specialty Metals (eg:Li,Sc,Th) and Rare Earth Elements (REE). All of the foregoing are recoverable by bulk leaching as demonstrated by DNI’s extensive testwork. While none of the metals occur in the shales in sufficiently high concentrations to be a “pay” metal by itself, the metals collectively represent sufficient in-situ value on a combined basis to place the shales within reach of viability as a long term source of metals given that the metals can be collectively extracted/recovered from the shales, and especially when considering the low operating costs afforded to bulk mining and bulk treatment operations of similar unconsolidated material in the region (eg. nearby oil sands mining) and elsewhere in the world. It is significant that Specialty Metals and REEs are incidental co-products to leaching of base metals from the
Of the prospective black shale Formations, the Second White Speckled Shale Formation is nearer the surface and is the better enriched with metals. It is typically a 20m-40m thick “blanket” which extends under the entire Property, and which is exposed, or is under thin cover, throughout the eastern one third of the Property. This Formation has until recently dominated DNI’s exploration focus as its primary target although recognition of recoverable mineralization in the Labiche Formation black shale overlying this Formation and the Shaftesbury Formation black shale beneath it have compelled DNI to broaden its work to assess significance of delineating recoverable mineralization in the Formations enveloping the Speckled Shale. The recognition of recoverable mineralization of value in overburden cover rocks previously considered to be “waste” rocks overlying DNI’s principal prospective polymetallic targets is a significant milestone development from the Property since it adds considerable additional value and enables rapid expansion of bulk mineable resources.
DNI has to date reported a mineral resource hosted in the Second White Speckled Shale Formation from one of the six Zones on the SBH Property as well as a resource hosted in the overlying Labiche Formation shale. No resources have yet been identified from the Shaftesbury Formation black shale which lies beneath the Second White Speckled Shale.
The polymetallic mineralization of current interest to DNI at the Property consists of Molybdenum (Mo), Nickel (Ni), Uranium (U), Vanadium (V), Zinc (Zn), Copper (Cu) and Cobalt (Co), which are accompanied by Specialty Metals Lithium (Li), Scandium (Sc) and Thorium (Th) in addition to Rare Earth Elements (REE). While DNI had previously focused only on base metals and uranium, to the extent that its leaching testwork also reported incidental recovery of Specialty Metals, REE and Lithium as
co-products, DNI expanded the scope of its exploration in 2011 to evaluate the significance of these additional metals which represent additional recoverable value. Although historic work has reported multi-gram gold grades from some composite drill core bulk samples, the
data are nuggetty and DNI is provisionally treating gold grade as nil until its average bulk grade is clearly established.
Property NI-43-101 Technical Report (2008)
Details and summary of all historic work results and background information relating to the SBH Property can be found in the Technical Report for the Property dated October 28, 2008, entitled
“Technical Report On The Polymetallic Black Shale SBH Property, Birch Mountains, Athabasca Region, Alberta, Canada” (the SBH Technical Report"); prepared for the Company by S.F.Sabag MSc PGeo, of Toronto, Ontario, Canada, its President and Qualified Person. The foregoing report conforms to National Instrument NI-43-101 and was filed with Canadian regulatory authorities in November 2008 (available at www.sedar.com). Independent review and verification of the Technical Report was completed in 2009 by Mr.M.Dufresne PGeo of Apex Geoscience Ltd., Edmonton, and a confirmatory opinion letter corroborating the report, dated May 26, 2009, was filed with Canadian regulatory authorities in June 2009 as an addendum to the Technical Report (available at www.sedar.com). The Technical Report is being revised to harmonize its nomenclature with amendments of NI-43-101 which came into effect June 30, 2011. Unless otherwise specified, the Qualified Person in connection with the Company's projects is S.F.Sabag PGeo, the Company's
The SBH Technical Report (2008)
proposed that the SBH Property consists of six sub-properties centered over polymetallic enrichment domains reported by historic work. The six sub-properties range in size approximately 100-300 square kilometers each and their size is appropriate for hosting flatlying near-surface zones of polymetallic enrichment in black shales being sought by DNI which are envisaged to extend over 5kmx5km, or larger, areas. In addition to hosting confirmed, or suspected, polymetallic enrichment zones in black shale, three of the sub-properties also have potential for containing suspected source(s) to metals and volcanic debris accumulated in the shale, proposed to be nearby exhalative vents with yet untested potential for hosting sedimentary exhalative - SEDEX style -
The six sub-properties are at different stages of development, ranging from two areas with reconnaissance level anomalies
(McIvor West Property and
Property), through two drill-ready large target areas with considerable historic work
(Eaglenest Property and
Property) one of which DNI started drill testing in 2012 (the
Property), to two demonstrably continuous and partly drill tested Mineralized Zones which are targets for further exploration which are advancing through resource definition to preliminary economic analysis (the
Buckton Mineralized Zones* at the
Properties, respectively). Of the two Mineralized Zones*, the
Buckton Mineralized Zone* is the most advanced at the SBH Property with an inferred resource of approximately 3.5 billion short tons over a portion of the Zone and it is in the preliminary economic analysis stage (Scoping Study in
DNI regards the six sub-properties to be distinct geographic parcels, and intends to explore and develop them as six distinct Properties in their own right. DNI has prioritized the Asphalt and Buckton sub-properties which are the most advanced, with an initial inferred resource identified at the Buckton sub-property in 2011 which resource was expanded in 2012 and early 2013.
Although DNI had previously intended to advance the Asphalt Zone toward resource delineation, it deferred additional work on the Asphalt Zone in 2012 to focus on the Buckton South Zone instead to delineate an initial resource therefrom in early 2013 to commence advancing a second mineral resource from the Property.
Details for the six sub-properties are individually described in separate sections on this
Highlights from the SBH Technical Report include recognition of potential for the existence of sedimentary exhalative - SEDEX style - sulfides at several locations on the SBH Property, and the proposed existence of two polymetallic Mineralized Zones* (under Section 2.3(2) of NI-43-101), hosted in the Second White Speckled Shale Formation, one of which, the Buckton Mineralized Zone*, holds potential for hosting 1.4-1.5 billion short tons of Mo-Ni-U-V-Zn-Cu-Co-Ag-Au mineralized material extending over 26 square kilometres at the Buckton Property, and the other, the Asphalt Mineralized Zone*, holds potential for hosting 125-151 million short tons of extending over 4.5 square kilometres at the Asphalt Property. Both Mineralized Zones* are partly exposed and open, and both have been DNI’s principal exploration targets on the Property since its acquisition. At the time of preparation of the SBH Technical Report (2008) DNI’s focus was solely on Mo-Ni-U-V-Zn-Cu-Co-Ag-Au mineralization relying on historic information. DNI has since expanded its exploration scope, guided by results from its leaching testwork completed since 2008, to include Specialty metals Li-Sc-Th and Rare Earth Elements, and revised it to omit Ag-Au. DNI has since also broadened scope of its work to also assess recoverable mineralization hosted in the Labiche Shale Formation which represents the bulk of overburden cover rocks overlying the Mineralized Zones* in the Second White Speckled
In January 2013, DNI announced a 3.5 billion short ton consolidated resource from a 14 square kilometre portion of the Buckton Zone which supercedes prior estimates made for this Zone* in the SBH Technical Report (2008). In February 2013 DNI announced a 548 million short ton initial maiden inferred resource from a 3.3 square kilometre portion of the Buckton South Zone. DNI has not conducted sufficient drilling over the Asphalt Mineralized Zone* to report a resource therefrom.
DNI's Exploration and Development Objectives
DNI has been actively implementing its exploration programs since 2008 pursuant to recommendations of the SBH Technical Report, and continues to make accelerated progress to advance the Property. DNI’s objectives are to advance exploration and development of the Buckton and Asphalt Mineralized Zones* toward delineating mineable and extractable resources for the production of base metals, uranium, specialty metals and rare earth elements.
The Buckton Zone and Buckton South Zone resource studies completed to date represent significant milestones in development of the Property, and their recommendations form the basis of DNI’s efforts to expand and upgrade the Buckton Zone inferred resources toward a Preliminary Economic Assessment Study (Scoping Study in progress) slated for completion in 2013. Work on the Asphalt Zone has been deferred to advance the Buckton South Zone instead to delineate an initial resource therefrom in early 2013 to commence advancing a second mineral resource from the Property.
DNI’s Work Programs - Past and Current
DNI has been actively implementing its exploration programs since 2008 pursuant to recommendations of the SBH Technical Report, and has made considerable progress to advance the Property since its initial acquisition. Work completed includes: completion of the Technical Report for the Property, ongoing consolidation of historic and current data, launch of several iterative metallurgical and leaching testwork programs, field sampling, a variety of other integrated mineralogical, geological stratigraphic and analytical work programs, drilling programs over the Buckton, Asphalt and Buckton South Zones, and several resource studies relating to delineation of an inferred resource over a portion of the Buckton Mineralized
Considering that ultimate viability of the polymetallic shale targets, and the known mineralized volumes, on the SBH Property is dependant on whether metals can be effectively recovered from the shales, DNI prioritized leaching and metals recovery testwork during 2008-2010 and completed a series of initial leaching testwork studies with particular emphasis on bioleaching metals recovery techniques which have become available in the past decade as alternatives to traditional methods. DNI proceeded to additional drilling and resource estimation in 201-2012 relying on favourable results from its leaching
While some of the leaching testwork was conducted under DNI’s direction at commercial analytical facilities, bioleaching and related R&D work were carried out by Alberta Innovates Technology Futures (formerly the Alberta Research Council - “ARC”) and by the Bureau de Recherches Géologiques et Miničres (“BRGM”), France's leading Earth Sciences public institution which is recognized worldwide for its expertise in biohydrometallurgy and the development of innovative processes applied to industrial scale bioleaching of metals. The foregoing R&D work comprises iterative studies whose initial stages were concluded in late 2010 with very favourable results, collectively demonstrating that metals can be recovered from the shales via leaching and that bioleaching is a viable option for their ultimate collective recovery. Expanded leaching testwork is ongoing including testwork launched in 2012 in collaboration with CANMET Mining and Minerals Science Laboratories, Ottawa, toward the commercialization of a heap leaching process for recovery of metals from the polymetallic black shale zones at the Property with specific focus on identifying, testing and formulating refining procedures for separation of Rare Earth Elements (REE) from the leaching solution into saleable
In December 2011, DNI announced consolidated results from initial bioleaching testwork completed during
2009-2010 on surface samples of the Second White Speckled Shale. The tests were conducted by Alberta Innovates Technology Futures (AITF, formerly the Alberta Research Council) to specifications formulated by DNI, and concluded DNI’s initial testwork from the Property. Comparative results for other leaching work previously conducted by the Bureau de Recherches Géologiques et Miničres (BRGM), France, (press Apr28/2010), and simple sulfuric acid leaching tests conducted under DNI’s direction at Canadian analytical facilities were also announced (press Mar4/2010). Results from tests carried out by the three facilities are consistent within acceptable parameters, providing results which DNI is relying on for planning purposes, and as a benchmark of interim recoveries which future work will endeavour to enhance. The best metals extractions (recoveries) achieved from the collective of all leaching work conducted to date are:
Mo-51%, Ni-89%, U-100%, V-51%, Zn-100%, Cu-66%, Co-91%, Cd-100%. To the extent that all of the leaching testwork completed to date represent initial tests, the foregoing recoveries represent minimum recoveries achievable and are initial results to be optimized during future additional
The above testwork, also reported successful recoveries of additional metals of value which are incidentally extracted from the Second White Speckled Shale as
co-products during leaching. These co-products consist of specialty metals (eg: Li, Sc, Th) and Rare Earth Elements (REE). To the extent that the leaching tests reported good recoveries of most of the foregoing metals, they add considerable previously unrecognized value to the mineralized zones identified by DNI at the Property. Average recoveries for the foregoing metals and elements, based on leaching of surface trenching samples at the AITF, are as follows: Ce:72.5%, Dy:92%, Er:90%, Eu:84.5%, Gd:89%, La:68%, Nd:72%, Pr:67%, Sm:87%, Tb:94.5%, Y:91%, Yb:77%, Th:87%, Sc:54%, Li:23.5%. DNI has expanded its focus to incorporate the foregoing recoverables into its resource
On March 1, 2012, DNI announced initial results from its bioleaching testwork on drill core samples from the Labiche Formation black shale cover rocks overlying its Buckton inferred maiden resource hosted in the underlying Second White Speckled Shale. The tests were conducted by Alberta Innovates Technology Futures. The cover rocks, consisting mostly of the Labiche Formation black shale, are also mineralized with Li-Sc-Th and REE along with lesser base metals and U. The best metal recoveries achieved during the above bioleaching tests, as reported by AITF, are Mo-57%, Ni-82%, U-78%, V-10%, Zn-76%, Cu-65%, Co-80%, Li-41%; and recoveries for Specialty Metals and REE, as calculated by DNI, based on the difference of metal content between head sample feed material and final tail residues per analytical results from AITF’s testwork, range as follows: La-13%-20%, Ce-21%-28%, Pr-28%-34%, Nd-35%-41%, Sm-49%-53%, Eu-55%-59%, Gd-61%-64%, Tb-60%-63%, Dy-61%-65%, Ho-58%-62%, Er-51%-55%, Tm-53%-57%, Yb-42%-47%, Lu-53%-57%, Y-56%-59%, Sc-28%-37%, Th-32%-34%. Recoverability of Metals and REE from the Labiche Formation black shale overlying the Buckton resource hosted in the Second White Speckled Shale represents a material development considering that these cover rocks were previously considered to be “waste” rocks which would have to be removed to extract any mineralization in the underlying Second White Speckled Shale Formation. Recoverability of Metals and REE from the Labiche Formation black shale represents a significant recent milestone development from the Buckton Zone and the Property since it serves to enable expansion of the Buckton resource hosted in the Second White Speckled Shale under thicker cover than previously thought, and to incorporate considerable additional mineralization into mineral
DNI has to date completed two drill programs on the Property to collect the necessary information to upgrade portions of the Asphalt and Buckton Mineralized Zones* to
NI-43-101 compliant resources to advance them toward a preliminary economic assessment and scoping study as soon as possible and to obtain drill core samples to enable preparation and testing of a representative composite sample from at least one of the two Mineralized Zones. The drilling consisted of a Winter 2010-2011 and a Summer 2012
DNI’s Winter 2010-2011 drilling program completed a total of eight vertical HQ diameter holes which were cored during January 2011 (aggregate of approximately 650m) to test portions of the Asphalt and Buckton polymetallic Mineralized Zones* which are exposed or are near surface under thin cover. A number of other planned holes were necessarily deferred due to extreme scheduling constraints and wet field conditions. All, except one, of the holes completed successfully cored intercepts across the Second White Speckled Shale Formation, consistent with downhole logs from 591 oil/gas wells across the SBH Property compiled in 2009 by DNI indicating that this Formation extends under the entire 2,720 square kilometer Property.
DNI’s Summer 2012 drilling programs were carried out during August-October 2012 to expand the Buckton initial inferred resource (previously delineated based on 2010-2011 and historic drilling only) and to commence drilling of the Buckton South Zone which had previously been sampled only in surface trenching. The drilling achieved its principal objectives of drill testing and confirming the Buckton South Zone with a view to delineating a new initial resource therefrom, and of exploring and expanding the Buckton Zone northward by approximately 3 kilometers with a view to expanding the Buckton initial inferred resource. Two strategically located in-fill holes were completed within the northern portion of the current Buckton inferred resource to enhance the drilling database over that portion in preparation for the Preliminary Economic Assessment Study (Scoping Study in
Relying on drill results from its winter 2010-2011 drilling over the Buckton Zone, together with historic drilling information, DNI has to date completed four resource studies delineating incrementally expanding mineral resources at the Buckton Zone. All of the resource studies were prepared by Apex Geoscience Ltd , Edmonton, under the supervision of Mr.Michael Dufresne PGeol, Mr.Roy Eccles PGeol. and Mr.Steven Nicholls MAIG, who are the Qualified Persons in connection with their preparation and are independent of DNI. All of the studies consisted of modeling and tonnage estimation using a 3-dimensional block model based on geostatistical applications using commercial mine planning software MICROMINE, and were based on capturing tonnages which are beneath less than 75m of overburden cover, and for which the aggregate recoverable value of contained metals exceeds a base cut-off of US$7.5/tonne or US$10/tonne.
DNI completed the first resource study (the “Buckton Resource Study”) for the Buckton Zone and reported a 250 million short ton initial Base Metals, Uranium and Lithium inferred resource therefrom in October 2011 hosted entirely within the Second White Speckled Shale Formation. the Buckton Resource Study was expanded in late December 2011 to prepare an estimate of REE and Specialty Metals contained within the Buckton initial inferred resource hosted in the Second White Speckled Shale Formation.
After demonstrating successful recovery of Base Metals, Specialty Metals and REE by from the Labiche Shale Formation which represent the cover rocks overlying the Buckton inferred resource (announced March 1, 2012), DNI launched a NI-43-101 compliant resource study in April 2012 (the “Buckton Labiche Resource Study”) to determine the potential of Specialty Metals and REEs contained within the Labiche Shale Formation cover material overlying the Buckton initial inferred resource. The Buckton Labiche Resource Study was completed in September 2012 (announced September 12, 2012), reporting a 2.7 billion short ton initial inferred resource (the “Buckton Labiche Resource”) from the Labiche Shale Formation cover rocks above the Second White Speckled mineralized black shale at the Buckton Zone. The recognition of recoverable metals in the Labiche Formation Shale is a significant development from the Property as it demonstrate that much of the overburden cover material above the Buckton initial resource hosted in the Second White Speckled Shale Formation is not be “waste” and represents potential value given that contained metals and REE are
DNI launched a resource study during late 2012 to consolidate, update and expand the inferred mineral resource at the Buckton Zone. The Consolidated and Updated Buckton Mineral Resource Study (announced January 6, 2013) successfully expanded the inferred resource at the Buckton Zone to 3.49 billion short tons, extending over approximately 14 square kilometres, hosted in two near-surface stacked black shale horizons which are mineralized with recoverable Mo-Ni-U-V-Zn-Co-Cu-Li-REEs-Y-Th-Sc and are partly exposed on surface. The inferred resource is based on a US$10/tonne base cut-off and represents all mineralized tonnages that are under less than 75m of overburden cover, consisting of an upper, lower-grade, horizon hosted in Labiche Formation, which directly overlies a higher-grading horizon hosted in Second White Speckled Shale Formation. The two Formations together comprise a wedge of mineralized black shale, ranging approximately 13m-140m thick, extending westward from the point where they are exposed on surface along the eastern erosional edge of the Birch Mountains to a point where overburden cover above the uppermost resource blocks in the Labiche shale thickens to more than
The Consolidated and Updated Buckton Mineral Resource Study consolidates all previous resource estimates from the Buckton Zone using more current metal prices and a higher base cut-off per recommendations of previous studies. It, accordingly, combines supersedes and replaces all prior resource estimates announced in 2011-2012 from the Zone. This Study will be revised again in early 2013 to incorporate results from DNI’s 2012 drilling to further expand the resource in preparation for a Preliminary Economic Analysis (Scoping Study) of the
Relying on drill results from its summer 2012 drilling over the Buckton South Zone, DNI delineated a 548 million short ton maiden inferred mineral resource from a 3.3 square kilomtre portion of the Buckton South Zone. This represents the second mineral resource identified at the Property. The resource studiy was prepared by Apex Geoscience Ltd , Edmonton, under the supervision of Mr.Roy Eccles PGeol. Mr.Michael Dufresne PGeol and Mr.Steven Nicholls MAIG, who are the Qualified Persons in connection with their preparation and are independent of DNI. The Buckton South maiden resource study consisted of modeling and tonnage estimation using a 3-dimensional block model based on geostatistical applications using commercial mine planning software MICROMINE, and was based on capturing tonnages which are beneath less than 75m of overburden cover, and for which the aggregate recoverable value of contained metals exceeds a base cut-off of US$10/tonne.
Work to follow and in progress
Work to follow and in progress consists of (i) planned revision during early 2013 of the Consolidated and Updated Buckton Mineral Resource to incorporate analytical results from the Summer 2012 drilling program to further expand the Buckton Zone inferred resource; and (ii) the Scoping Study which is in progress for the Buckton Zone resource. Ongoing work includes miscellaneous analytical work relating to the Summer 2012 drilling program, conclusion of leaching testwork which commenced in mid-2012 to continue testing of samples from the Labiche Shale as well as black shales beneath the Buckton resource, and ongoing work related to the collaborative research and testwork being carried out at CANMET Mining and Minerals Science Laboratories.
DNI envisages that any mineral deposits identified on the SBH Property will ultimately be developed via consortium of end-users of the metals of interest.
Sustainable Development Opportunities - Sulphur and CO2 Sinks
DNI’s envisaged mining operations to extract metals from its black shales hold potential to consume considerable waste Sulphur produced from neighbouring oil sands mining operations and to provide CO2 sinks and
DNI considers the Sulphur consumption capacity of its envisaged mining operations a welcome tangible benefit to mitigating the fast growing cache of waste Sulphur which is accumulating in the region from neighbouring oil sands mining operations.
The envisaged operations also offer previously untested incidental opportunities to sequester CO2 in “spent” shale mine waste. DNI has been exploring the foregoing opportunities through a series of studies, including R&D testwork being carried out by Alberta Innovates Technology Futures (formerly the Alberta Research Council - "ARC"), focusing on assessment of the potential of the polymetallic black shales as geologic hosts for sequestration of CO2 by its conversion into, and permanent sequestration in, stable mineral matter. The studies have so far concerned themselves primarily with conducting the necessary laboratory testwork to collect baseline information intended to characterize physical and chemical properties of the shales to evaluate their capacity to “capture” and sequester CO2 via mineral
DNI regards the Sulphur consumption and CO2 mitigation potential of its polymetallic black shale projects to be integral to the ultimate value represented by the
*Section 2.3(2) of National Instrument 43-101 (“NI-43-101”), as
enacted December 30, 2005, provides for written disclosure of the
potential quantity and grade, expressed as ranges, of a
"potential mineral deposit that is to be the target of further
exploration", provided the disclosure includes a statement that
the potential quantity and grade is conceptual in nature, that there
has been insufficient exploration to define a mineral resource and
that it is uncertain if further exploration will result in the
target being delineated as a mineral resource; and provided the
disclosure also states the basis on which the disclosed potential
quantity and grade has been determined. The Asphalt and Buckton
Potential Mineral Deposits* described herein are consistent with the
foregoing Section, and the reader is referred to the SBH Technical
Report for considerable related details. On June 30, 2011,
NI-43-101 was amended, including portions of Section 2.3(2) which
were amended to omit reference to "potential mineral
deposit". Instead, NI-43-101 as amended provides for written
disclosure of the potential quantity and grade, expressed as ranges,
of a "target of further exploration", provided the
disclosure includes a statement that the potential quantity and
grade is conceptual in nature, that there has been insufficient
exploration to define a mineral resource and that it is uncertain if
further exploration will result in the target being delineated as a
mineral resource; and provided the disclosure also states, with
equal prominence, the basis on which the disclosed potential
quantity and grade has been determined. The SBH Technical Report
predates the foregoing amendment and, as such, describes the
metallic mineralization blocked out over the Asphalt and Buckton
zones at the SBH Property in terms which were consistent with
NI-43-101 prior to its June 30, 2011, amendment, and per technical
specifications consistent with the Instrument as amended, but the
Report makes reference to the foregoing mineralization as
"Potential Mineral Deposits" which terminology is not
consistent with NI-43-101 as amended. The SBH Technical Report is being updated to incorporate and consolidate exploration
results accumulated by the Company since 2008, some of which results
suggest that tonnages outlined in the SBH Technical Report for the Asphalt and
Buckton Potential Mineral Deposits relying on historic information,
may have been understated by 10%-20%.