NI 43-101 PRELIMINARY ECONOMIC ASSESSMENT REPORT for the HOMBRE MUERTO NORTE PROJECT SALTA PROVINCE, ARGENTINA
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––––– NI 43-101 PRELIMINARY ECONOMIC ASSESSMENT REPORT for the HOMBRE MUERTO NORTE PROJECT SALTA PROVINCE, ARGENTINA Prepared by: Prepared for: Knight Piésold Ltd. NRG Metals Inc. 1400 - 750 W Pender St. 750 West Pender St., Suite 804 Vancouver, BC V6C 2T8 Vancouver, BC V6C 2T7 JDS Energy & Mining Inc.. Suite 900, 999 W Hastings St. Vancouver, BC V6C 2W2 Qualified Persons Company Richard Goodwin, P.Eng. JDS Energy and Mining Inc. Alex Mezei, P.Eng. Knight Piésold Ltd. Ken Embree, P.Eng. Knight Piésold Ltd. Effective Date: 3 June, 2019 Mike Rosko Montgomery and Associates Report Date: 7 August, 2019 NOTICE Knight Piésold Ltd. and JDS Energy & Mining, Inc. prepared this National Instrument 43-101 Technical Report, in accordance with Form 43-101F1, for NRG Metals Inc. The quality of information, conclusions and estimates contained herein is 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. NRG Metals Inc. filed this Technical Report with the Canadian Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the purposes legislated under provincial securities law, any other use of this report by any third party is at that party’s sole risk. Prepared by Knight Piésold Ltd. and JDS Energy & Mining Inc. Page 1-1 For NRG Metals Inc. Table of Contents: 1 Executive Summary .................................................................................................................... 1-1 1.1 Introduction ................................................................................................................................ 1-1 1.2 Location and Description ........................................................................................................... 1-1 1.3 Accessibility, Physiography, Climate, Local Resources and Infrastructure ............................... 1-1 1.4 History ........................................................................................................................................ 1-2 1.5 Geological Setting ...................................................................................................................... 1-2 1.6 Deposit Type .............................................................................................................................. 1-2 1.7 Exploration ................................................................................................................................. 1-2 1.8 Metallurgical Testing .................................................................................................................. 1-3 1.9 Mineral Resource Estimates ...................................................................................................... 1-4 1.10 Mining ........................................................................................................................................ 1-5 1.11 Processing ................................................................................................................................. 1-5 1.12 Infrastructure .............................................................................................................................. 1-6 1.12.1 Concentration Ponds ........................................................................................................... 1-7 1.12.2 Combined Heat and Power Unit .......................................................................................... 1-7 1.12.3 Natural Gas Pipeline ........................................................................................................... 1-8 1.12.4 Lithium Carbonate Plant ...................................................................................................... 1-8 1.12.5 Camp Facility ....................................................................................................................... 1-8 1.12.6 Fresh and Potable Water Supply ........................................................................................ 1-8 1.13 Environment and Permitting ...................................................................................................... 1-8 1.13.1 Environmental ..................................................................................................................... 1-8 1.13.2 Permitting ............................................................................................................................ 1-9 1.13.3 Social ................................................................................................................................... 1-9 1.13.4 Mine Closure ....................................................................................................................... 1-9 1.13.5 Summary Statement .......................................................................................................... 1-10 1.14 Economics ............................................................................................................................... 1-10 1.14.1 Capital Cost Estimate ........................................................................................................ 1-10 1.14.2 Operating Cost Estimate ................................................................................................... 1-12 1.14.3 Economic Model ................................................................................................................ 1-13 1.14.4 Sensitivities ....................................................................................................................... 1-13 1.15 Conclusions ............................................................................................................................. 1-14 1.16 Recommendations ................................................................................................................... 1-15 1.16.1 Process Testwork .............................................................................................................. 1-15 1.16.2 Numerical Groundwater Model ......................................................................................... 1-15 1.16.3 Fresh Water Supply ........................................................................................................... 1-15 1.16.4 Feasibility Study ................................................................................................................ 1-15 1.16.5 Geotechnical Drilling and Analysis .................................................................................... 1-15 Prepared by Knight Piésold Ltd. and JDS Energy & Mining Inc. Page i For NRG Metals Inc. 1.16.6 Permitting .......................................................................................................................... 1-16 1.16.7 Costs ................................................................................................................................. 1-16 2 Introduction ................................................................................................................................. 2-1 2.1 Qualifications and Responsibilities ............................................................................................ 2-1 2.2 Site Visits ................................................................................................................................... 2-1 2.3 Units, Currency and Abbreviations ............................................................................................ 2-1 2.4 Sources of Information ............................................................................................................... 2-2 3 Reliance on Other Experts ......................................................................................................... 3-1 4 Property Description and Location ........................................................................................... 4-1 4.1 Location ..................................................................................................................................... 4-1 4.2 Property Description and Ownership ......................................................................................... 4-1 4.3 Exploration and Mining Permitting ............................................................................................. 4-5 4.4 Provincial Jurisdiction ................................................................................................................ 4-6 4.5 Legal Title Opinion ..................................................................................................................... 4-6 4.6 Project Agreements ................................................................................................................... 4-7 4.7 Environmental Liabilities and Considerations ............................................................................ 4-7 4.8 Property Risks ............................................................................................................................ 4-7 5 Accessibility, Climate, Local Resources, Infrastructure, Physiography ............................... 5-1 5.1 Accessibility and Local Resources ............................................................................................ 5-1 5.2 Physiography ............................................................................................................................. 5-1 5.3 Climate ......................................................................................................................................