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Silver Elephant Mining Corp
Symbol ELEF
Shares Issued 209,289,349
Close 2021-07-07 C$ 0.275
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Silver Elephant working on Minago permitting

2021-07-07 15:07 ET - News Release

Mr. John Lee reports


Silver Elephant Mining Corp. has provided the following update for its 100-per-cent-owned Minago nickel project at the Thompson's nickel belt in Manitoba, Canada.

Environment Act licence

In August, 2011, the Minago project achieved a major milestone when the Environment Act licence (EAL) was issued by the province of Manitoba. The prior operator of the project subsequently filed a notice of alteration (NOA) to the EAL, in December, 2013, related to relocation of the tailings management area to address first nation concerns. The NOA process was not completed by the prior operator and remains outstanding. Since acquiring the project in February, 2021, Silver Elephant has re-engaged the Manitoba government regarding the NOA status for the 10,000-tonne-per-day open-pit mining operation at Minago. The Agriculture and Resource Development Department (ARDD) has confirmed that the NOA can still be completed and the company is currently working with ARDD to finalize the NOA approval, leading to issuance of an updated Environment Act licence, which is expected by the end of 2021.

A socioeconomic assessment was conducted and the prior operator signed a memorandum of understanding (MOU) with each of the Pimichikamak Cree Nation (Cross lake), Mosakahiken First Nation (Moose Lake) and Misipawistik Cree Nation (Grand Rapids). The company is re-engaging the first nations with traditional territories that include the project site, including the Norway House Cree Nation, to work toward inclusion and renewal of the MOUs in 2021.

The ARDD has expressed support for the Minago project, which would supply much-needed Class 1 high-purity nickel to make nickel-lithium batteries used in electric vehicles.

Low-carbon operation

Several initiatives are being considered or taken to minimize the carbon footprint of potential future mining operation at Minago. For mining, the company will examine the use of a fully electric mine fleet and review the use of waste material to expose the serpentine component to air to absorb carbon dioxide through carbonation. For ore and waste processing, the crushing, milling and flotation processes would be powered by renewable hydroelectricity, which accounts for 97 per cent of all electricity generation in Manitoba.

About the Minago project

The Minago project is located in the southern part of the Thompson nickel belt (TNB) in Manitoba, which is the fifth-largest sulphide nickel belt in the world, based on contained nickel endowment, containing over 18 nickel deposits and over five billion pounds of nickel production since 1959. (A.J. Naldrett, 2004, Magmatic Sulfide Deposits; Geology, Geochemistry and Exploration: Springer-Verlag, Berlin, 725 pages).

On July 6, 2021, Silver Elephant announced mineral resource estimate for Minago, prepared by Mercator and AGP, with an effective date of July 2, 2021, that includes a measured and indicated mineral resource of 722 million pounds of nickel, and an inferred mineral resource of 319 million pounds of nickel, at an average grade of 0.74 per cent nickel (mineral resources are not mineral reserves and do not have demonstrated economic viability). The Minago project has received over $40-million in investment since early 2000.

Manitoba provincial Highway 6 and a high-voltage (230 kilovolts) transmission line both transect the Minago project. Minago has been demonstrated to produce a nickel concentrate of 22.3 per cent based on representative feed of 0.54 per cent nickel through extensive metallurgical testing by SGS. Vale currently produces nickel concentrates in Thompson at the heart of the TNB, 270 kilometres northeast of the Minago project. Its nickel concentrates are shipped to its Sudbury smelter for processing to refined nickel.

Qualified persons

The technical contents of this news release have been prepared under the supervision of Danniel Oosterman, vice-president of exploration. Mr. Oosterman is not independent of the company in that he is employed by it. Mr. Oosterman is a qualified person (QP) as defined by the guidelines in National Instrument 43-101.

About Silver Elephant Mining Corp.

Silver Elephant is a premier silver mining and exploration company.

We seek Safe Harbor.

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