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Rose Lithium-Tantalum Project Feasibility Study Ni 43 101 Technical Report

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Rose Lithium-Tantalum Project Feasibility Study Ni 43 101 Technical Report CRITICAL ELEMENTS CORPORATION ROSE LITHIUM-TANTALUM PROJECT FEASIBILITY STUDY NI 43 101 TECHNICAL REPORT NOVEMBER 29, 2017 ROSE LITHIUM-TANTALUM PROJECT FEASIBILITY STUDY NI 43 101 TECHNICAL REPORT CRITICAL ELEMENTS CORPORATION PROJECT NO.: 161-14801-00_RPT-01_R1 DATE: NOVEMBER 2017 WSP SUITE 300 93 CEDAR STREET SUDBURY, ON, CANADA P3E 1A7 T +1 705 674-0119 WSP.COM WSP Canada Inc. REVISIONS Revision # Date Description 0 October 20, 2017 First issue to Client 1 November 29, 2017 Revised with AMF comments SIGNATURES Original document signed and stamped by Pierre-Luc Richard, P.Geo. Pierre-Luc Richard, P.Geo. Director of Geology, InnovExplo Inc. Original document signed and stamped by Patrick Frenette, B.Ing., M.Sc.A Patrick Frenette, Eng., B.Ing., M.Sc.A Senior Engineer, InnovExplo Inc. Original document signed and stamped by Florent Baril, P.Eng. Florent Baril, P.Eng. Senior Metallurgical Engineer and President, Bumigeme Inc. Original document signed and stamped by Philippe Rio Roberge, Eng. Philippe Rio Roberge, Eng. Project Director, WSP Canada Inc. Original document signed and stamped by Éric Poirier,.Eng. Éric Poirier, Eng. Director Electricity and Control, WSP Canada Inc. Original document signed and stamped by Olivier Joyal, Geo. Olivier Joyal, Geo. Vice-President Environment, WSP Canada Inc. ROSE LITHIUM-TANTALUM PROJECT WSP Project No. 161-14801-00_RPT-01_R1 November 2017 CRITICAL ELEMENTS CORPORATION Page iii SIGNATURES Original document signed and stamped by Vincent Jourdain, Ph.D., Eng. Vincent Jourdain, Ph.D., Eng. General Manager, MRB & Associates Original document signed and stamped by Denis Vachon, Eng. Denis Vachon, Eng. Chief Engineer, Langlois Mine This report was prepared by WSP Canada Inc. for the account of CRITICAL ELEMENTS CORPORATION, in accordance with the professional services agreement. The disclosure of any information contained in this report is the sole responsibility of the intended recipient. The material in it reflects WSP Canada Inc.’s best judgement in light of the information available to it at the time of preparation. Any use which a third party makes of this report, or any reliance on or decisions to be made based on it, are the responsibility of such third parties. WSP Canada Inc. accepts no responsibility for damages, if any, suffered by any third party as a result of decisions made or actions based on this report. This limitations statement is considered part of this report. The original of the technology-based document sent herewith has been authenticated and will be retained by WSP for a minimum of ten years. Since the file transmitted is now out of WSP’s control and its integrity can no longer be ensured, no guarantee may be given with regards to any modifications made to this document. ROSE LITHIUM-TANTALUM PROJECT WSP Project No. 161-14801-00_RPT-01_R1 November 2017 CRITICAL ELEMENTS CORPORATION Page iv 7KLVSDJHZDVLQWHQWLRQDOO\OHIWEODQN TABLE OF CONTENTS 1 SUMMARY ................................................................................ 1 Geology Setting and Mineralization .......................................... 1 Mineral Resource Estimate ........................................................... 1 Mineral Processing and Metallurgical Testing ..................... 3 Mining ................................................................................................... 3 Recovery Method ............................................................................. 6 Project Infrastructure ..................................................................... 6 Environment ...................................................................................... 9 Economics ........................................................................................... 9 Risks ...................................................................................................... 11 2 INTRODUCTION .................................................................. 12 Purpose of the Technical Report and Preliminary Economic Assessment ................................................................. 12 Issuer of the Technical Report .................................................. 12 Qualified Persons ........................................................................... 13 Terms of Reference ........................................................................ 15 Sources of Information ................................................................ 15 3 RELIANCE ON OTHER EXPERTS ................................ 17 4 PROPERTY DESCRIPTION AND LOCATION ......... 18 Location .............................................................................................. 18 Property Ownership and Agreement .................................... 21 Tenure Rights .................................................................................. 23 Royalties and Related Information ........................................ 23 Environmental Liabilities .......................................................... 23 ROSE LITHIUM-TANTALUM PROJECT WSP Project No. 161-14801-00_RPT-01_R1 November 2017 CRITICAL ELEMENTS CORPORATION Page vi Permits .............................................................................................. 25 Other Relevant Factors ............................................................... 25 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ......... 26 Accessibility .................................................................................... 26 Physiography .................................................................................. 28 Fauna and Flora .............................................................................. 34 Climate and Operating Season ................................................ 36 Local Resources and Infrastructures ..................................... 37 6 HISTORY ................................................................................. 39 Historical Mineral Resources Estimates ............................... 41 7 GEOLOGICAL SETTING AND MINERALIZATION42 Regional Geological Setting (Archean Superior Province)43 Local Geological Setting (Middle and Lower Eastmain Greenstone Belt) ............................................................................ 43 Property Geology ........................................................................... 47 8 DEPOSIT TYPES ................................................................. 54 General Model for Rare Element LCT-Type Pegmatites 55 Rare-Element Pegmatites from the Superior Province 59 9 EXPLORATION .................................................................... 62 10 DRILLING................................................................................ 63 Drilling on the Pivert Showing ................................................. 63 Drilling on the Rose Deposit ..................................................... 65 Driling on Other Showings ........................................................ 73 Condemnation Drilling ............................................................... 75 ROSE LITHIUM-TANTALUM PROJECT WSP Project No. 161-14801-00_RPT-01_R1 November 2017 CRITICAL ELEMENTS CORPORATION Page vii 11 SAMPLE PREPARATION, ANALYSES, AND SECURITY .............................................................................. 76 Sampling Method and Approach ........................................... 76 Analytical Methods ....................................................................... 77 Critical Elements Quality Control ........................................... 78 12 DATA VERIFICATION ........................................................ 81 Historical Work ............................................................................... 81 Critical Elements Database ........................................................ 81 Critical Elements Diamond Drilling ....................................... 82 Critical Elements Outcrop Sampling .................................... 84 Critical Elements Sampling and Assaying Procedures . 85 InnovExplo’s Grab Sampling .................................................... 89 13 MINERAL PROCESSSING AND METALLURGICAL TESTING ................................................................................ 90 Metallurgical Test Work Summary ........................................ 90 Historical Test Work Summary ............................................... 90 Bench Scale Test Work – SGS Canada Inc. Lakefield ........ 91 Spodumene Concentrate Production Tests – SGS Canada Inc. Lakefield ................................................................................. 104 Solid-Liquid Separation Test Work – SGS Canada Inc. Lakefield ............................................................................................ 111 Pilot Plant Flotation Test Work – SGS Canada Inc. Lakefield ............................................................................................ 113 Tantalite Concentrate Upgrading Tests ............................. 118 Lithium Variability Tests ........................................................... 118 14 MINERAL RESOURCE ESTIMATE............................ 123 Drillhole Database ....................................................................... 123 ROSE LITHIUM-TANTALUM PROJECT WSP Project No. 161-14801-00_RPT-01_R1 November 2017 CRITICAL ELEMENTS CORPORATION Page viii Interpretation of Mineralized Zones .................................... 125 Voids
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