Prescient presentation - Petmin

NAIC
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Metallurgy
• Ore dressing studies continue to be carried out by Dr Jayson Ripke and
Glenn Hoffman of Cardero Resources.
• During the period a Wet High Intensity Magnetic Separator (WHIMS) was
purchased and further testwork has begun using this unit.
• Metallurgical testing has indicated that an adequate concentrate can be
produced using just magnetic separation but this requires further
optimisation.
• Some optimisation has been achieved via the screening of the
concentrate post magnetic separation but further work is required for
production plant optimisation.
• Tenova has been engaged to carry out a conceptual study on the pig iron
production plant – proposal has been received.
Environmental / Community
• Some delays were experienced due to tree cutting on some of the claims
and due to the environmental registration process that was triggered for
the bulk sample.
• Stantec have been engaged to run the permitting process for the bulk
sample as well as to carry out a scoping study for the whole project.
• The Innu Nation hold a land claim to our property and own 5% of Grand
River shares.
Pilot Plant
• Objective of the pilot plant is to produce 200t of concentrate for a
continuous melt test.
• All equipment has been detailed (Process flowsheet engineering,
equipment sizing and specifications).
• An RFQ was sent out, on the basis of responses the ordering has begun.
• Expectations are to operate the pilot plant during February 2012 and
March 2012.
• Negotiations are underway for access to furnace facilities to conduct the
melt test.
• Current cost estimates for the pilot plant are $650 000 – higher than the
budget of $400 000. NAIC has applied for 50% of the costs to be paid by
the Atlantic Canada Opportunity Agency (ACOA). Awaiting feedback.
Location
• Location remains a big advantage of the project.
• Close proximity to a port has given the project options to produce a
concentrate in Goose Bay but locate the smelter in other regions.
• Erie, Pennsylvania, Quebec & Louisiana have all shown a significant
interest in locating the project in
their jurisdictions.
• Each of these have indicated the
potential for low electricity rates,
soft loans and tax holidays for the
project.
• Potential loan financing of up to
50% of the smelter CAPEX on soft
repayment terms.
…Committed …A PLATFORM to growth, FOR dedicated GROWTH to value