Crystalline flake graphite mineralization has been the focus of exploration by NMG on its Matawinie Property, including the Tony Block.

Crystalline flake graphite mineralization was first discovered on the Tony Block in mid2014. Prospecting work, performed as a follow-up to the late 2013 airborne survey (Dubé, 2014, GM 69067), resulted in the collection of nine (9) grab samples that returned values in excess of 5 % C(g) (Cloutier, 2015, GM 69069). Subsequent to this discovery, a short ground TDEM survey was conducted over four (4) areas where the 2013 airborne survey displayed strong conductors. Trenching was then performed in each of these areas, resulting in the discovery of graphitic paragneiss horizons displaying thicknesses of over 20 metres. The best intersections were provided by trenches TO-14-TR-2 and TO-14-TR4, which returned 5.7 % C(g) over 22 m and 5.1 % C(g) over 25.8 m, respectively.

The drilling and trenching of all the mineralized zones located on the Tony Block, including the West Zone, revealed that the mineralized graphitic paragneiss units vary from a few centimetres to tens of metres in thickness. Overall, a stacking of these beds, or horizons, has shown to provide fairly homogeneous and continuous mineralization. Overall, the dip of the other mineralized horizons varies from 30 degrees to sub vertical. The main graphitic horizons pinch and swell from four (4) m to around 80 m in width along strike, and drilling suggests that they are mostly open at depths greater than 200 m from surface.

The graphitic horizons are interbedded with garnet paragneiss units displaying low graphite content and ranging from a few centimetres to tens of metres in width. Both the graphitic and the garnet
paragneiss horizons can contain very little to high percentages of leucocratic mobilizate, thought to be the product of partial melting. The paragneiss is given the name of metatexite when the mobilizate layers of varying thickness are common, and are distributed in a lit-par-lit manner parallel to the foliation. These units are usually sub-parallel to the main foliation and often border the mineralized zones. All mineralized zones, with the exception of the West Zone, are limited by unmineralized to poorly mineralized paragneiss and sometimes metatexite. The Mineralization of the West Zone is usually bounded to the West by metatexite or charnockite and to the East by unmineralized paragneiss and further outside of the mineralization (usually less than 100 m), by charnockite.

The crystalline graphite flakes are mostly aligned parallel to the main foliation and they are disseminated fairly homogeneously within the mineralized horizons. Graphite mineralization is often found in the presence of sulphides, or in the case of the Tony Block, mainly pyrrhotite. This is made further evident by the correlation between the mineralized intersections and a strong magnetic field measured using a magnetic susceptibility meter (MPP probe by Instrumentation GDD Inc.) over the drill core.

The mining method selected for the Matawine Project will consist of an open pit truck and shovel operation considering an all-electric mining fleet. In addition, an in-pit crushing and conveying system will supply crushed ore to the concentrator.

The use of electric equipment for drilling, loading and hauling operations will minimize carbon emissions over the duration of the mine life. This incentive aligns directly with NMG’s low environmental impact initiative. The design and implementation of an allelectric mining project is an opportunity to reduce the environmental impact on the community of Saint- Michel-des-Saints.

The haulage fleet will consist of 36.3-tonne battery powered haul trucks which will need to be recharged at dedicated fast charging stations every cycle between 0.3-7 minutes depending on haulage demands (distance and grade of haulage profile). The impact on truck productivity associated with charging the haulers will potentially result in productivity losses between 7.8 and 20 % in comparison to diesel equipment of the same payload capacity.

This loss in productivity is due to the limitation in autonomy of these vehicles. The battery chosen has to be smaller than required to operate a full shift so that payload capacity is not affected. In order to make up for this, the trucks require a charge as part of the haulage cycle which results in the productivity loss. The battery technology employed has a high cycle life combined with the ability for fast charging (3C charge rate depending on State of Charge (“SOC”)). This combination allows for an optimized run time vs charge time ratio of the equipment where charging can occur over breaks, lunch and shift change as much as feasible.

Material movement will be managed by a loading fleet consisting of fully electric hydraulic shovels (connected by cable reel) and battery powered loaders. Electric cable powered dozers will also be used to build and manage the co-disposal dump.

Both the crushing, conveying of ore to the plant as well as the operation of the pit itself will consider different operating schedules to reduce dust and noise pollution to the surrounding community of Saint-Michel-des-Saints.

Vegetation, topsoil, and overburden will be stripped and stockpiled separately for future reclamation use. The ore and waste rock will be mined considering five (5) m high benches, drilled, blasted and loaded into fully electric haul trucks by excavators and wheel loaders.

For a smooth-running operation, it is planned to blast the ore and waste rock approximately twice a week at 18,322 m3 per blast. This equates to an approximate 55 m×55 m square pattern, twice a week considering a 4.25 m burden and spacing and a bore hole diameter of 140 mm (5.5 inch).

The concentrator is located near the open pit mine and is designed to produce a nominal 100,000 tonnes of high-grade graphite concentrate per year.

The mineral processing facility has seven (7) distinct areas: in-pit crushing, grinding and flotation, polishing and cleaning, graphite concentrate dewatering, screening and packaging, graphite tailings dewatering, and tailings processing.

The ROM mineralized material will be crushed by the in-pit crushers prior to being transported from the pit to the covered stockpile by conveyor. The crushed material is reclaimed from the stockpile and ground in a SAG mill. The SAG mill discharge is screened and the screen oversize is returned back to the SAG mill. The SAG screen undersize is pumped to the ball mill circuit. The ball mill is in closed circuit with rougher flotation and the cyclones. This allows for the removal of larger graphite flakes as soon as they are liberated from the ore and helps maintain graphite flake integrity. The cyclone overflow flows to scavenger flotation. The scavenger tailings are pumped to the final tailings treatment plant via the concentrator tailings thickener.

The combined rougher and scavenger concentrates are dewatered to obtain the proper pulp density and polished in a polishing mill using ceramic media. The polishing mill scrubs the surface of the graphite flakes and thus removes the gangue minerals that are attached to the flakes. The polished concentrate is refloated in the primary column.

The primary cleaner concentrate is screened to separate fine and coarse flakes. The screen oversize is the final product and is transported to the graphite concentrate thickener. The screen undersize undergoes the same process with slightly harsher polishing and column flotation. The fine cleaner concentrate combines with the coarser concentrate and both are pumped to the graphite concentrate thickener. Both cleaner tailings go to the tailings thickener.

The final graphite concentrate is thickened, filtered and dried. After drying the product is dry screened into four (4) products and bagged in super sacks for transport.

The graphite flotation reagents are fuel oil and Methyl Isobutyl Carbinol (“MIBC”). Almost all the flotation reagents will be adsorbed by the graphite.

The concentrator tailings are initially thickened for process water recovery and then pumped to the de-sulphurization plant. The concentrator tailings are de-sulphurized by sulphide flotation and magnetic separation to produce clean Non-Acid Generating (“NAG”) tailings. The NAG tailings and the sulphide concentrate (“PAG” tailings) are filtered and stockpiled before being trucked to the co-disposition site.