19/03-2018 08:25:03: (NOM.OAX) Engebø Rutile and Garnet; update on feasibility study
Following from the successful completion of the prefeasibility study (PFS) for
the Engebø rutile and garnet project in October 2017, a comprehensive work
program related to the definitive feasibility study (DFS) is now progressing.
The work program includes i.a. geological and geotechnical assessments, process
optimisation and verification, mine design and detailed engineering and
preparations related to project execution.
The international engineering and consultancy company Hatch has been appointed
for technical advisory services and coordination of the DFS. Hatch was also the
technical advisor and coordinator of the PFS. An update of ongoing activities
and work program is summarised below.
Drilling program finalised

A limited drilling program was carried out at Engebø from mid-January to mid
-February 2018. The drilling went according to plan. In total, 1,581 meters was
drilled in 10 drill holes. The aim of the drilling was to increase the knowledge
of the ore body and the geotechnical conditions in the open pit.

Drill core logging is completed and drill cores are being chemically assayed.
The data will be basis for updating of the current block model and ore
classification. Qualified Person, Adam Wheeler is responsible for this work, and
will complete an updated resource estimate within April 2018.

The international mining consultancy company, SRK has been contracted for
geotechnical, hydrogeological and structural logging and modelling based on
drill hole data. SRK will make recommendations on slope angles and stability
conditions for the open pit and underground infrastructure.

The resource and pit stability assessments will form a basis for Hatch's final
open pit design and mine schedule, assessing ore and waste rock tonnages from
the open pit mining operation. Consideration of measures to optimise the mine
plan is ongoing.
Process optimisation and flowsheet design

The DFS process test work is divided in three stages 1) process optimisation, 2)
repeatability demonstrations, and 3) ore variability testing.

The process optimisation test work is well under way. Tests carried out at IHC
Robbins (IHC) in Australia have been successful in making cost saving changes to
the flowsheet and confirming some critical process parameters.

Ongoing work is carried out at IHC and Light Deep Earth (LDE) in South Africa to
investigate process solutions to recover additional coarse garnet. The coarse
garnet distribution in the deposit is complex. Optimal crushing and grinding, as
well as maximising recovery is important to secure stable output volumes of
coarse garnet from the process plant. After process optimisation, bulk samples
will be processed at IHC and LDE for repeatability and variability testing.

Process test work is currently on the critical path for the DFS. The assurance
of an optimised, cost efficient and robust flowsheet as the basis for
engineering and detailed design is crucial. The DFS timeline will be reviewed
based on the progress of critical path activities.

Strengthening of organisation and project execution planning
Recruitment processes have been initiated to strengthen the Engebø project team
both on project management as well as for various discipline areas.
The Norwegian engineering and architectural advisory company Asplan Viak has
been contracted to coordinate the planning of fresh water supply to the
processing plant, the re-direction of county road 611 and various detailing of
buildings and infrastructure at the process plant and mining operation areas.

In cooperation with the Directorate for Cultural Heritage and the University
Museum in Bergen, plans have been established for archeological investigations
at selected locations within the regulated industrial area. The purpose is to
register possible cultural heritage footprints in accordance with regulations
and prior to construction start-up. The investigations will be executed in the
second half of 2018.
Nordic Mining aims to secure structured and effective work programs on all
preparatory issues that are important for the overall progress plan for the
project. Dialogue meetings and good communication with Naustdal municipality and
other authorities, as well as the landowners and other stakeholders, are vital
for the implementation of the project.