MAKWA
Four styles of mineralization on the Makwa Property are summarized in Ferreira et al., 1999 and some smaller mineralized showings are discussed in Juhas, 1973:
1. Magmatic nickel-copper mineralization,
2. Sulphide iron formation nickel-copper mineralization,
3. Sulphide iron formation copper mineralization,
4. Chromite mineralization.

The Makwa deposit consists of disseminated pyrrhotite, pentlandite, chalcopyrite, and pyrite in an ultramafic peridotite layer at the base of the BRS (Ferreira et al., 1999; Harper, 2004). The higher grade mineralization near the footwall contact contains approximately 15% disseminated sulphide minerals. About 12% of the sulphides contains nickel.

The Makwa deposit strikes at approximately N60°E to N70°E and dips at -60ºS to -90º. The overall average strike is approximately N68°E, however, shorter segments appear to strike at approximately N62°E. The western part of the deposit, west of section 7+00W (original grid), strikes approximately 280° at surface and the strike progressively changes down to approximately the 500 ft elevation, where the overall deposit strike becomes more linear. The deposit dips at approximately -70°S or less at the northeast and southwest extremities and dips at -80°S or steeper from approximately section 3+00W to section 8+00W (original grid). The deposit is approximately 500 m long by 10 m wide and extends to at least 500 m below surface. The deposit appears to have a moderate plunge to the southwest. Based on surface mapping and diamond drill hole interpolation, several fault offsets have been interpreted in the model.

The chromite occurs as stratigraphic layers up to about three metres thick at the transition from ultramafic to anorthositic gabbro at Makwa. In 1943, Bird River Chromite drilled nine holes totalling 894 m over approximately three kilometres of strike length and intersected grades up to 27% Cr2O3 over one metre. The chromite layers may also have potential for nickel, platinum, and palladium.

MAYVILLE
Nickel-copper sulphide mineralization at the M2 Deposit is hosted at the base of the heterolithic breccia zone, just below the structural hanging wall mafic volcanic rocks of the Lamprey Falls Formation. As noted in the Property Geology section, the sequence is overturned and, therefore, the hanging wall rocks represent the lower contact of the Mayville Intrusion.

RPA interpreted five main mineralized lenses, the Main Zone, Footwall Zone, and East Zone A, B, and C, each with a fairly consistent strike direction of N67°E and variable dips from -60ºN to -90ºN (Figure 7-6). The true thickness of mineralization ranges from slightly less than two metres to more than 100 m. The average true thickness is in the order of 20 m. Mineralization is continuous along strike, down dip, and has been traced by drilling from surface to a depth of at least 550 m. The deepest intersection is 550 m below surface.

A conventional truck and shovel open pit mining method was chosen for Makwa and Mayville. Vegetation and topsoil will be cleared by dozers and graders preceding the mining operation. Suitable growth media material will be stockpiled for future reclamation use. For estimation purposes, it was assumed that a two metre thick layer of growth media is present on the Makwa and Mayville resource areas. When stripping activities are started, the actual thickness of the growth media will be determined, and the appropriate amount set aside. If any overburden needs to be stripped, then front end loaders will load off highway rigid-frame mining trucks, which will haul the overburden to the stockpile. The mineralized material and waste rock will be drilled and blasted, loaded with front end loaders and hauled with the same fleet of rigid frame mining trucks to either a crusher or waste rock pile. Ancillary activities managed by Mustang will include, but not be limited to road maintenance, road dust control, site dewatering, dump and stockpile maintenance, grade control at Makwa and Mayville, and tailings facility heavy equipment support in Mayville (as needed).

Based on metallurgical testwork and the prospect of mining Makwa, followed by Mayville, the Makwa Mayville concentrator is designed to process mineralized material from both projects in sequence or batching. Further testwork should be completed to determine if the Makwa and Mayville mineralized material can be blended. The concentrator location is proposed to be at the Mayville site, with associated tailings management facilities (TMF) located there. Mineralized material will be trucked from Makwa to the Mayville concentrator.

The proposed design throughput is 8,600 tpd based on 96% availability. This equates to three million tonnes mineralized material per calendar year throughput.

Makwa mineralized material will produce a single concentrate comprising mainly nickel (10% Ni) containing also copper, gold, and PGMs.

Mayville mineralized material will produce two concentrates, nickel and copper.

The concentrator will be designed to provide additional required space for regrind, cleaner flotation, copper concentrate thickening, filtering, and copper concentrate storage required for Mayville ore. As well, valving will be added to provide for easier piping rerouting of flotation circuits when required.

Construction will be in two phases, with the modifications required for Phase 2 (modifications for Mayville processing) installed as much as possible during operation in year 1. Transfer to Mayville mineralized material processing is assumed to be achieved fairly quickly, in under a month.