Manganese X Energy Corp. (TSXV: MN) (FSE: 9SC) (OTCQB: MNXXF) ("Manganese X", "MN", or the "Company") is very pleased to announce positive results from the independent Preliminary Economic Assessment ("PEA") for its wholly owned Battery Hill project (the "Project") located near Woodstock, New Brunswick. The PEA was prepared by Wood Canada Ltd. ("Wood"), an independent engineering services group with extensive experience in mining and mineral processing.
All dollar values are in US dollars unless otherwise stated.
PEA Highlights:
Sensitivity Analysis:
Table 1 - Selected Financial Metrics Sensitivity to Price
Metrics | HPMSM Price ($/t) | |||||||
$1,400 | $1,900 | $2,400 | $2,9001 - Base Case | $3,400 | $3,900 | $4,400 | $4,2002 | |
Before-Tax Metrics | ||||||||
Undiscounted Cashflow ($M) | 1,483 | 2,945 | 4,407 | 5,869 | 7,331 | 8,793 | 10,255 | 9,670 |
NPV8 ($M) | 168 | 527 | 886 | 1,245 | 1,604 | 1,963 | 2,322 | 2,178 |
NPV10 ($M)3 | 77 | 363 | 648 | 933 | 1,218 | 1,503 | 1,789 | 1,675 |
NPV12 ($M) | 14 | 248 | 481 | 715 | 948 | 1,181 | 1,415 | 1,321 |
IRR (%) | 13% | 21% | 28% | 35% | 41% | 47% | 52% | 50% |
Payback Period (years) | 6.2 | 3.7 | 2.7 | 2.1 | 1.7 | 1.5 | 1.3 | 1.4 |
After-Tax Metrics | ||||||||
Undiscounted Cashflow ($M) | 849 | 1,702 | 2,552 | 3,403 | 4,254 | 5,104 | 5,955 | 5,614 |
NPV8 ($M) | 45 | 257 | 465 | 673 | 880 | 1,088 | 1,296 | 1,212 |
NPV10 ($M)3 | (13) | 156 | 321 | 486 | 651 | 815 | 980 | 914 |
NPV12 ($M) | (54) | 85 | 220 | 355 | 489 | 624 | 759 | 705 |
IRR (%) | 10% | 16% | 21% | 25% | 30% | 34% | 37% | 36% |
Payback Period (years) | 7.2 | 4.5 | 3.4 | 2.8 | 2.4 | 2.1 | 1.9 | 1.9 |
Note: 1Base case $2,900/t HPMSM price is a risk managed price used for the PEA study. 2$4,200/t HPMSM represents long-term market price estimate from CPM Group. 3NPV10 is the base case.
Martin Kepman, CEO of Manganese X, states, "We are extremely pleased with the positive economics demonstrated by our PEA. Our Battery Hill Mineral Resource has the potential to be the most impressive manganese properties in North America and has several attributes that make it attractive for development and commercialization. Battery Hill has robust economics, strong value metrics and a short payback period for a relatively low capital investment. The PEA represents the most significant milestone to date for Manganese X and makes us the forerunner of becoming the first publicly traded company in Canada and the US to commercialize high-purity electric vehicle (EV) quality compliant manganese. Thanks to our proprietary extraction process, we can develop a superior quality manganese product by eliminating selenium, considered a toxic pollutant and yet utilized by some of the HPMSM producers worldwide to reduce their costs of production. Given selenium is a highly toxic element, its use negatively impacts the environment and is known to affect the quality of downstream products, particularly for high-end applications such as lithium-ion-battery production. Our final product should be able to justify a premium to the market price."
Martin Kepman continues, "The Company has been working diligently on corporate development beyond the PEA and is currently in discussion with a number of interested parties. This is a very exciting time in history for manganese as it relates to battery chemistry and the EV revolution, making it an equally exciting time for Manganese X. We intend to be at the forefront of a domestic supply as well as meeting the expectations of North American battery manufacturers."
Table 2 - Key Financial Outcomes
NPV10 | $486 million |
IRR | 25% |
LOM | 40 years mine production 7 years stockpile reclaim |
OPEX | $122/tonne processed |
CAPEX | $350 million |
Average Annual Production HPMSM | 68,000 tonnes |
Average Daily Mine Production Rate | 1,000 tpd |
LOM Production | Measured and Indicated Mineral Resource: 12.2 million tonnes @ 7.45% Mn |
Inferred Mineral Resource: 4.7 million tonnes @ 8.26% Mn | |
HPMSM Market Price used in PEA Study | $2,900/tonne |
Average Strip Ratio (Waste:Mill feed) | 1.35 |
Pay Back Period | 2.8 years |
Average LOM Annual Gross Revenue | $177 million |
Note: Numbers may not sum due to rounding
The PEA is preliminary in nature; it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
PEA Summary
Mineral Resource Estimate Update:
The Mineral Resource estimate has been reported in accordance with NI 43-101 and was prepared by Mercator Geological Services Ltd. ("Mercator") with an effective date of 12 May 2022. The 2021 Mineral Resource statement has been renewed to reflect updated costs and an HPMSM price as per a market analysis report recently obtained. The Mineral Resource estimate is tabulated in Table 3.
Table 3: Battery Hill Deposit Mineral Resource Estimate - Effective Date May 12, 2022
Cut-off (Mn %) | Category | Tonnes (Million) | Mn (%) | Fe (%) |
1.5 | Measured | 11.32 | 6.72 | 10.94 |
Indicated | 23.82 | 6.24 | 10.50 | |
Measured Plus Indicated | 35.14 | 6.39 | 10.64 | |
Inferred | 27.72 | 6.46 | 10.73 |
Notes:
Infrastructure:
The Project is located approximately 6 km northwest of the town of Woodstock and is accessible to the east via a new two-lane road that connects with Highway 560. Key site infrastructure includes security and administration, crushing facility, process plant and ancillaries, sulphuric acid plant, mining facilities (truck shop and maintenance), waste rock storage facilities, run of mine mill feed stockpile and filtered residue storage area, sedimentation ponds, power, water and fuel supply and distribution. Filtered residue from the process plant will be trucked to the filtered residue storage area for the first 24 years of mine production after which residue will be trucked to the Moody Hill Pit 2 and backfilled.
Metallurgical Test Work:
Phase three of preliminary metallurgical test work completed by Kemetco Research Inc. ("Kemetco") has resulted in the refinement of a conceptual flowsheet and estimated mass balance to support the PEA. Test work focused on defining key process steps to establish major equipment requirements, reagent consumption and manganese recovery. The following main conclusions highlight the results drawn from this test program:
Metallurgical Test Work Recommendations:
Process Method:
The proposed process for treating Battery Hill manganese resources is a whole ore sulphuric acid slurry leach performed under conditions which result in formation of a filterable residue. Leach solution is neutralized with a calcium base, concentrated by evaporation and purified through a proprietary selective cation removal process. The purified liquor is then further evaporated to produce a crystalline manganese sulphate monohydrate product meeting all specifications for sale as a battery grade product.
Mining Method:
The PEA mine plan assumes conventional open pit mining using a contract mining equipment fleet at a total mining rate of 1.0 million tonnes per year to provide a mill feed of 365,000 tonnes per year, or 1,000 tonnes per day. The ultimate pits and mine plan use an elevated cut-off grade strategy to help drive the project economics. The use of a stockpile for mineralized material allows higher-grade material to be processed early in the mine life to enhance project economics and to sustain mill operations 24-hours per day, seven-days per week at a single, central processing facility. The mining operations will have a 40-year mine production life, with a two-year pre-production period, and seven years of stockpile reclaim feed.
Independent Qualified Persons Statements:
The PEA was prepared for Manganese X by independent Qualified Persons (QPs) as defined under NI 43-101 from Wood and Mercator and are listed below. The independent QPs have prepared and approved the scientific and technical information disclosed in this press release derived from their respective sections of the technical report:
Data Verification:
QP Harrington performed standard validation checks on the Mineral Resource model.
QP Drake visited the Kemetco testing facilities and had discussions with those who performed the test work, identified the drill holes and the intervals in which the metallurgical test samples were taken.
QP Gosson discussed with the marketing expert from CPM Group regarding the basis of their market analysis and price forecast.
QP Ténière visited the Project site and compared select core intervals with original drill logs and sampled intervals, collected independent witness samples, reviewed quality assurance and quality control procedures, and completed a field inspection.
QP Violette visited the Project site during which he viewed drill core, completed field inspections of the Moody Hill target and surrounding areas, and assessed local infrastructure.
A description of the data verification methods for the Mineral Resource estimate is contained within the technical report previously filed on Manganese X's SEDAR profile (NI 43-101 Technical Report Battery Hill Project Mineral Resource Estimate, Woodstock Area, New Brunswick, Canada with effective date 18 June 2021).
Project Risks:
About Manganese X Energy Corp.
Manganese X's mission is to advance its Battery Hill project into production, with the intent of supplying value-added materials to the lithium-ion battery and other alternative energy industries. The Company is also striving to achieve new environment-friendly more efficient methodologies, while processing manganese at a lower competitive cost. The company is the only publicly traded manganese company in North America moving rapidly toward commercialization of a manganese deposit.
Subsidiary Disruptive Battery Corp.'s mission is to develop an HVAC (heating, ventilation and air conditioning) air purification delivery system for cleaner and healthier air, aiming to mitigate COVID-19 and other contaminants on surfaces and in the air. For more information visit the website at www.manganesexenergycorp.com.
On behalf of the Board of Directors of
MANGANESE X ENERGY CORP.
Martin Kepman
CEO and Director
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel: 1-514-802-1814
Cautionary Note Regarding Forward-Looking Information:
This press release contains certain information that may constitute "forward-looking information" under applicable Canadian provincial securities legislation. Forward-looking information includes, but is not limited to, the results of the PEA, including statements relating to net present value, future production, future development and commercialization, estimates of cash cost, proposed mining plans and methods, cash flow forecasts, HPMSM recoveries, timing for permitting and environmental assessments, ability to acquire surface rights at a reasonable cost, realization of Mineral Resource estimates, capital and operating cost estimates, project and life of mine estimates, ability to obtain permitting by the time targeted, the timing and amount of estimated future production , exploration expenditures and potential upside and alternatives, the viability and efficacy of Manganese X's proprietary extraction process, including its ability to produce a superior manganese product, and its suitability for use in battery manufacturing. Readers should not place undue reliance on forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Manganese X to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The PEA results are estimates only and are based on a number of assumptions, any of which, if incorrect, could materially change the projected outcome. There are no assurances that the Project will be placed into production. Factors that could affect the outcome include, among others: the actual results of development activities; project delays; inability to raise the funds necessary to complete development; general business, economic, competitive, political and social uncertainties; future prices of HPMSM or project costs could differ substantially and make any commercialization uneconomic; availability of alternative manganese sources or substitutes; actual manganese recovery; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; accidents, labour disputes, the availability and productivity of skilled labour and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities; Mineral Resource estimates relating to the Project could prove to be inaccurate for any reason whatsoever; additional but currently unforeseen work may be required to advance to the feasibility stage; even if the Project goes into production, there is no assurance that operations will be profitable; and risks related to the interpretation of the gross metal royalty ("GMR") set forth in the Company's option agreement dated April 22 2016 with Globex Mining Enterprises Inc. (the "Option Agreement", including with respect to: (i) the brevity and potential challenges the Company and other parties may face in regard to interpreting the terms of the GMR; (ii) determination of the reference prices that are to be used to value the metals and products that are produced from the Project; and (iii) the stage of production in the processing and value chain of deliverable metals within a production facility whereby the GMR becomes payable, all of which could have a significant impact on the determination of the GMR payable by the Company. The Option Agreement has not been the subject of any litigation to date and accordingly no findings or decisions have been made by any court or arbitrator regarding the specific interpretation of the Option Agreement.
Although Manganese X has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and Manganese X disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined by the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
Last Trade: | US$0.07 |
Daily Volume: | 0 |
Market Cap: | US$10.040M |
January 10, 2024 October 05, 2023 September 28, 2023 |
Sienna Resources is at the forefront of the battery metals revolution. The company is one of the largest landholders in the prolific Clayton Valley district, which is the only lithium producing region in the United States and located just miles...
CLICK TO LEARN MOREHillcrest Energy Technologies is a clean technology company developing high value, high performance power conversion technologies and digital control systems for next-generation powertrains and grid-connected renewable...
CLICK TO LEARN MORECOPYRIGHT ©2022 GREEN STOCK NEWS