NI 43-101 Preliminary Economic Assessment Report
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N.I. 43-101 TECHNICAL REPORT & PRELIMINARY ECONOMIC ASSESSMENT FOR THE TURNAGAIN PROJECT – Amended British Columbia, Canada Report date: November 18, 2020 Amended report date: February 3, 2021 Effective date: October 28, 2020 Prepared for: Suite 203 – 700 West Pender St., Vancouver, BC, V6C 1G8 www.gigametals.com Prepared by: 1066 W. Hastings St., Vancouver, BC, V6E 3X2 Project Number: H-361523 Qualified Persons Ian Thompson, P.Eng., Persio Rosario, P.Eng., Evan Jones, P.Eng., & Gerald Schwab, P.Eng. – Hatch Ltd. • Garth Kirkham, P.Geo – Kirkham Geosystems • Daniel Friedman, P.Eng. – Knight Piésold • Ron Monk, P.Eng. – Kerr Wood Leidal • Chris Martin, C.Eng. MIMMM – Blue Coast Metallurgy • Andrew Mitchell, PhD, C.Eng – Wood Mackenzie Kirkham Geosystems Ltd. February 3, 2021 REPORT AMENDMENTS The attached report entitled “N.I. 43-101 Technical Report & Preliminary Economic Assessment For The Turnagain Project” (the “Technical Report”) prepared for Giga Metals Corporation and dated November 18, 2020 has been updated and refiled to provide the following additional detail and clarifying language: 1. In Section 1.12, the following wording was included “The preliminary economic assessment is preliminary in nature. It includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorised as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.” 2. The fourth paragraph of Section 1.13, the final paragraph of Section 25.1, and the first paragraph of Section 26.1 were edited to the following “This PEA indicates the Turnagain property generates an internal rate of return below the applied discount rate on the estimated N.I. 43-101 compliant resource at base case scenario modelling parameters. The project economics could improve with the opportunities noted in Section 25.8. It is recommended that Giga Metals carry the project forward to the pre-feasibility stage in accordance with the budget in Table 1.8. Recommendations by study area for the next phase are summarised in Section 26.” 3. In Tables 1.2 and 16.1, a split between confidence classifications was added and the tables were retitled to “Scheduled In-pit Material”. 4. In Section 3.0, all commentary was removed. 5. In Sections 1, 14, 17, 18, 22, and 25, the term “ore” was replaced with the term “mineralized material” or “mill processing material” or “mill feed”. 6. In Figures 18-1, 18-3, 18-4 and 18-5, the graphic indication of a potential future Hatzl Open Pit was removed. 7. In Section 5.2, 5.3, 18.3.2 and 20.1.2, reference was added to the Turnagain Project Preliminary Economic Assessment, prepared by AMC Mining Consultants in 2011 (AMC 2011). 8. In Section 18.5.4, additional clarification language regarding the water balance modelling was provided. 9. In Section 20.1, additional clarification language regarding the environmental baseline programs was included. 10. In Section 6.3, detailed information on the 2018 drilling program was moved to Section 10. 11. In Section 8, an expanded description of the deposit was provided. 12. In Section 9, additional figures were provided to support the described exploration programs; past exploration programs that are not relevant to the current resource model were removed; and drilling information was moved to Section 10. 13. In Section 10, the description of the drill holes in the deposit area used for resource definition was improved, the drill hole map was replaced with an expanded view of the deposit, and tables of significant assay results and information on recent drill holes in the mineralization zones beyond the modeled deposit were added. 14. In Section 11, information on the 2018 QA/QC program was added. 15. In Table 13.5, the nickel grade on SGS 08-264 LCT 4 concentrate was corrected from 21.4% to 21.8% and the identification of test SGS 10-265 LCT3 was corrected to SGS 10-265 LCT2. 16. In Section 14 and 1.5, rationale around the inclusion of the Hatzl zone in the resource model, but exclusion from the current mine plan was added, further definition of the drill holes used in the resource model, and further information on the update of the resource model from 2011 were added. 17. In Section 23, improved compliance of discussion of adjacent properties with NI 43-101 requirements was provided. 18. Ian Thompson P.Eng. was re-designated as the QP for Sections 1.12, 22 and 25.7; Table 2.1 was updated accordingly. 19. In Sections 1.12 and 22, all references to the Wood Mackenzie ESG incentive price were removed. The ‘PEA case’ or ‘Case 1’ were relabelled as the ‘PEA Base Case’. Other than as noted above, the Technical Report remains the same in all respects. IMPORTANT NOTICE TO READER This report was prepared by the qualified persons (QPs) listed in Table 2.1. Each QP assumes responsibility for those sections or areas of this report that are referenced opposite their name in Table 2.1. None of the QPs, however, accepts any responsibility or liability for the sections or areas of this report that were prepared by other QPs. This report was prepared to allow Giga Metals Corporation (the “Owner”) to reach informed decisions respecting the development of the Turnagain Project. Except for the purposes legislated under provincial securities law and without limiting any statutory right afforded thereunder, any use of this report by any third party is at that party's sole risk, and none of the contributors shall have any liability to any third party for any such use for any reason whatsoever, including negligence. This report is intended to be read as a whole, and sections should not be read or relied upon out of context. This report contains estimates, projections and conclusions that are forward-looking information within the meaning of applicable securities laws. Forward-looking statements are based upon the responsible QP’s opinion at the time that they are made but in most cases involve significant risk and uncertainty. Although each of the responsible QPs has attempted to identify factors that could cause actual events or results to differ materially from those described in this report, there may be other factors that cause events or results to not be as anticipated, estimated or projected. None of the QPs undertake any obligation to update any information contained in this report, including, without limitation, any forward-looking information. N.I. 43-101 Technical Report & Preliminary Economic Assessment for the Turnagain Project Report Contents 1.0 Summary ......................................................................................................................... 13 1.1 Introduction ...................................................................................................................... 13 1.2 Project Location ............................................................................................................... 13 1.3 History .............................................................................................................................. 13 1.4 Geology & Mineralisation ................................................................................................. 14 1.5 Resource Estimate ........................................................................................................... 14 1.6 Metallurgical Testing ........................................................................................................ 16 1.7 Recovery Methods ........................................................................................................... 18 1.8 Mining Methods ................................................................................................................ 18 1.9 Infrastructure .................................................................................................................... 21 1.9.1 Power Supply....................................................................................................... 21 1.9.2 Waste / Tailings Management ............................................................................. 21 1.10 Environmental Considerations ......................................................................................... 21 1.11 Capital & Operating Costs ............................................................................................... 23 1.12 Economic Evaluation ....................................................................................................... 24 1.13 Conclusions & Recommendations ................................................................................... 26 2.0 Introduction .................................................................................................................... 27 3.0 Reliance on Other Experts ............................................................................................ 29 4.0 Property Description & Location .................................................................................. 30 4.1 Location ............................................................................................................................ 30 4.2 Mineral Claims ................................................................................................................. 32 4.3 Permits & Environmental Liabilities ................................................................................. 36 4.4 Royalties..........................................................................................................................