Technical Assessment Report for the Tent Mountain Mine Re-Start Project, British Columbia, Canada
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Technical Assessment Report for the Tent Mountain Mine Re-start Project, British Columbia, Canada Prepared for Montem Resources Ltd. Prepared by SRK Consulting (Canada) Inc. April 2020 Technical Assessment Report for the Tent Mountain Mine Re-start Project, British Columbia, Canada Prepared for Prepared by Montem Resources Ltd. SRK Consulting (Canada) Inc. Level 4, 100 Albert Road 2200–1066 West Hastings Street South Melbourne, VIC 3205 Vancouver, BC V6E 3X2 Australia Canada Tel: +61 3 9692 7222 Tel: +1 604 681 4196 Web: www.montem-resources.com Web: www.srk.com Effective Date: 1 April 2020 Report Date: 29 April 2020 Authored By: Paul Dagenais, MBA, MASc Principal Consultant (Mining) Robert McCarthy, PEng. (APEGA) Principal Consultant (Mining) File Name: Tent_Mtn_Technical_Assessment_Report Copyright © SRK Consulting (Canada) Inc., 2020 SRK Consulting Montem Resources Ltd. Technical Assessment Report - Tent Mountain Mine Important Notice This report was prepared as a Technical Report for Montem Resources Ltd. by SRK Consulting (Canada) Inc. as part of a team of consultants contracted by Montem (“the Team”). The quality of information, conclusions and estimates contained herein is consistent with the level of effort involved in the Team’s services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by Montem subject to the terms and conditions of its contracts with SRK and the Team and to the relevant securities legislation. The contracts permit Montem to include this report in the Prospectus as a technical report and lodge it with relevant securities regulatory authorities. Except for the purposes legislated under relelvant securities law, any other uses of this report by any third party are at that party’s sole risk. The responsibility for this disclosure remains with Montem. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new technical report has been issued. Currency is expressed in Canadian dollars and metric units are used, unless otherwise stated. The Report uses Australian English. © 2020 SRK Consulting (Canada) Inc. This document, as a collective work of content and the coordination, arrangement and any enhancement of said content, is protected by copyright vested in SRK Consulting (Canada) Inc. Outside the purposes legislated under provincial securities laws or as otherwise stipulated in SRK’s client contract, this document shall not be reproduced in full or in any edited, abridged or otherwise amended form unless expressly agreed in writing by SRK. Tent_Mtn_Technical_Assessment_Report_2CM044.003_20200819_updated_revised_final_for_Montem.docx April 2020 SRK Consulting Montem Resources Ltd. Technical Assessment Report - Tent Mountain Mine Competent Persons Statements The information contained in this report that relates to JORC reserves statements for the Tent Mountain Mine are derived from a feasibility study completed in April 2020. This report is based on, and fairly and accurately reflects in the form and context in which it appears, the information in the supporting documentation relating to Exploration Targets, Exploration Results, Mineral Resources and Ore Reserves compiled or reviewed by Mr. Robert McCarthy, who is an employee of SRK Consulting (Canada) Inc. Mr. Robert McCarthy is a Professional Engineer registered with the Association of Professional Engineers and Geoscientists of Alberta and a Competent Person as defined in the JORC Code (2012 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”) having sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken. Mr. Robert McCarthy consents to the inclusion of the matters based on his information in the form and context in which it appears in the Prospectus and has not withdrawn his consent before lodgement of this Prospectus with ASIC. The coal reserves at Tent Mountain, presented in this report, have been classified and reported in accordance with the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (December 2012), prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia. The coal reserves are based on the coal resources as stated by Dahrouge Geological Consulting Ltd., represented by Mr. Bradley Ulry, a Professional Geoscientist registered with the Association of Professional Engineers and Geoscientists of Alberta and a Competent Person as defined in the JORC Code (2012 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”) having sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken. Signed and sealed: Bob McCarthy, PEng. (APEGA) Dated: April 29, 2020 Tent_Mtn_Technical_Assessment_Report_2CM044.003_20200819_updated_revised_final_for_Montem.docx April 2020 SRK Consulting Montem Resources Ltd. Technical Assessment Report - Tent Mountain Mine Acronyms and Abbreviations Distance Other µm micron (micrometre) °C degree Celsius mm millimetre adb air dried basis cm centimetre cfm cubic feet per minute m metre elev elevation km kilometre hp horsepower in inch hr hour ft foot kW kilowatt kWh kilowatt hour M million or mega Area mamsl metres above mean sea level m2 square metre mph miles per hour km2 square km ppb parts per billion ac acre ppm parts per million ha hectare s second V volt Volume kV W L litre kV kilovolt m3 cubic metre $k thousand dollars ft3 cubic foot $M million dollars BCM banked cubic metres tpa tonnes per annum LCM loose cubic metres tph tonnes per hour Mass tpd tonnes per day kg kilogram mtpa million tonnes per annum g gram Ø diameter t metric tonne kt kilotonne Acronyms lb pound SRK SRK Consulting (Canada) Inc. Mt megatonne CIM Canadian Institute of Mining oz troy ounce NI 43-101 National Instrument 43-101 Joint Ore Reserves Committee of wmt wet metric tonne JORC the Australian Institute of Mining and Metallurgy dmt dry metric tonne ABA acid- base accounting AP acid potential Pressure NP neutralisation potential psi pounds per square inch ML/ARD metal leaching/ acid rock drainage Pa pascal PAG potentially acid generating kPa kilopascal NAG non-acid generating MPa megapascal RC reverse circulation IP induced polarisation Elements and Compounds ROM run-of-mine Au gold LOM life-of-mine Ag silver HCC hard coking coal As arsenic NPV net present value Cu copper IRR internal rate of return S sulphur Conversion Factors CN cyanide 1 tonne 2,204.62 lb NaCN sodium cyanide Tent_Mtn_Technical_Assessment_Report_2CM044.003_20200819_updated_revised_final_for_Montem.docx April 2020 SRK Consulting Montem Resources Ltd. Technical Assessment Report - Tent Mountain Mine i Table of Contents 1 Introduction .......................................................................................................................... 6 1.1 Overview ....................................................................................................................................... 6 1.2 Purpose of Report ......................................................................................................................... 7 1.3 Scope of Work .............................................................................................................................. 7 1.4 SRK Capability and Independence ............................................................................................... 9 1.5 Limitations and Exclusions ......................................................................................................... 10 1.6 Materiality .................................................................................................................................... 11 1.7 Indemnity and Sign-Off ............................................................................................................... 11 1.8 Site Inspection ............................................................................................................................ 12 1.9 Inherent Mining Risks ................................................................................................................. 12 2 Overview ............................................................................................................................. 13 2.1 Property Location and Description .............................................................................................. 13 2.2 History ......................................................................................................................................... 13 2.3 Ownership ................................................................................................................................... 15 3 Coal Resources and Reserves ......................................................................................... 17 3.1 Coal Resources .......................................................................................................................... 17 3.2 Coal Reserves ............................................................................................................................ 17