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MAGNA
Reigniting the past producing Shakespeare nickel-c
MINING | MAGNA MINING
MINING
copper-PGM mine in the world-class Sudbury Basin
The management team of Canadian base metals exploration and development company Magna Mining has deep roots in Ontario’s famed Sudbury Basin, which is historically one of the richest nickel producing districts in the world. Co-founder and current CEO Jason Jessup has lived and worked in this world-class minerals basin for the best part of two decades, as have several of his colleagues from their time together at FNX Mining (the hugely successful Sudbury-based nickel and copper producer which was eventually bought by Quadra in 2010). Together, the group behind Magna have made significant regional discoveries and have experience of successfully building and operating mines in the Sudbury area.
The Sudbury Basin – formed
They are now aiming to replicate that success by reawakening the Shakespeare nickel-copperplatinum group metals (PGM) mine, 70 km Southwest of Sudbury. “We wanted to leverage our experience in Sudbury, which includes knowledge of the local geology, mine development, and many of the local assets which could become available and potentially fit well with a junior like Magna.” In 2017, the TSXV company’s search for an appropriate asset in the region led to the acquisition of Ursa Major Minerals, which at the time was the owner of the past producing Shakespeare Mine. Today, Magna’s leadership has set two key objectives for the project: to grow the existing resource, and to make regional discoveries across the 180 km2 contiguous land package.
mills, two smelters and a nickel
by a comet colliding with the Earth around 1.8 billion years ago - has been an active mining camp for 120 years and hosts one of the largest known concentrations of nickel globally, with 40 billion pounds of nickel produced to date, as well as 36 billion pounds of copper.
No better place Extensive magmatic nickelcopper-PGM mineralisation in the basin, plus two large refinery within the broader mining camp, make Sudbury a bustling hive of activity. Majors such as Vale and Glencore operate large assets in the area alongside only a select few exploration firms combing the region for new discoveries. In fact, Magna is the only junior in the region to own an advanced stage project. Other factors coalesce to make Sudbury a genuine world-class mining district, including a highly supportive
MINING | MAGNA MINING
Ontario Government, relative
strategy, which is anchored
ease of permitting and local
around a broad commitment
communities – including First
to minimise environmental
Nations groups – that welcome
impacts, build local
new mining activity.
community relationships and govern with ethics and
“The people here understand how important mining is
transparency.
of expertise has grown in
Carbon neutrality
the Sudbury Basin,” Jessup
In May 2021, Magna
stresses. “Aside from the
announced a carbon offsetting
mining activities, service
deal for its greenhouse gas
providers and mining
emissions over the entire year,
contractors use Sudbury as
making it the first carbon
a hub and we think this is
neutral nickel exploration
great as it lowers costs during
company in the world. The
exploration as well as in
offsetting credits will support
development and production.”
the Niagara Escarpment
for the economy and a lot
Forest Carbon Project, which Another locational advantage
promotes and maintains the
for Magna is derived from the
function and diversity of
project’s close proximity to a
ecosystems along Ontario’s
hydroelectric power plant on
Niagara escarpment.
the Spanish River in Espanola. The company plans to power
“We fully believe that the
the future operations at
world is going to need more
Shakespeare via a direct line
nickel to feed this electric
to the hydro plant, which will
vehicle (EV) revolution that is
provide clean, 24/7 energy to
currently underway. We want
the project.
to be able to help provide that, but it has to be in a responsible
131
This is just one aspect of
way. Consumers will not
Magna’s long-term ESG
tolerate high carbon emitting
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1 32
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nickel going into EV batteries.
decades across the property
at an average grade of 0.33%
So with that in mind we
before flipping it to Ursa in
nickel, 0.38% copper and 0.9
wanted to take this first step.”
2000.
g/t PGM through an existing mill in Sudbury between 2010-
It is somewhat unusual for a
Ursa soon made a significant
mining company to achieve
discovery on the Shakespeare
carbon neutrality this early in
property at what is now called
“This gave us a lot of
the project development cycle,
the East Deposit and developed
confidence in the metallurgy,
however Jessup talks about
a significant NI 43-101
knowing the recoveries
wanting to build a culture
resource following sustained
that can be produced
based around sustainability
drilling between 2002-05. At
through a mill, as well as the
from the scoping stages
this point, Ursa decided to stop
concentrates that could be
through to mine closure.
exploration and move into
produced,” Jessup says. “As
feasibility studies in order to
well, it allowed us to have a
“It helps us to start measuring
take advantage of the climbing
positive reconciliation against
what our impact is as an
nickel price.
the block model. Those things
exploration company so we
gave us a lot of de-risking of
can start making decisions
By 2007, the company had
going forward that are going
received all major permits for
to be positive towards carbon
the construction of a 4,500
neutrality and ESG in general,”
tonnes per day (tpd) open
the CEO proclaims. Magna will
pit mine, mill and tailings
also produce an ESG scorecard
storage facility. However, the
at the end of the year to track
global financial crisis of 2008
its short-term performance.
prevented project lift-off until
A distinct past life
12.
2010, when it was only able to commence through toll milling.
The Shakespeare land package was formerly owned by the
Despite not being able to build
well-known base metals miner
the mill as planned, Ursa
Falconbridge, who undertook
started mining ore and ended
four drill campaigns over four
up processing 490,000 tonnes
the project.”
“We fully believe that the world is going to need more nickel to feed the EV revolution. We want to be able to help provide that, but it has to be in a responsible way. Consumers will not tolerate high carbon polluting nickel going into EV batteries.” Jason Jessup, Magna Mining CEO
But the project soon fell into care and maintenance after the toll milling agreement wasn’t extended at the end of 2011. Subsequently, Ursa was acquired by another junior, but Shakespeare remained a non-core, idle project until 2017 when Magna acquired it. However, the major permits for a 4,500 tpd mining operation remain in place, with just a few minor permits and approvals remaining for Magna to obtain.
MA G N A MIN I N G
AT A G L A N C E
STOCK TICKER: TSXV:NICU MARKET CAPITALISATION: US$19.3 million (as of September 15, 2021) aj
MINING | MAGNA MINING
Restarting exploration After more than 15 years of inaction on the exploration front across the Shakespeare land package, Magna commenced a 9,000 metre near-mine drilling campaign earlier this year, with the aim of adding additional resources between the East and West deposit in an area called the Gap Zone. At the time of writing, Magna has completed around 5,500 metres of the campaign and is awaiting assays for the majority of the holes drilled, aside from two holes which have returned significant results, including a 33 metre intersection relatively close to surface within the open pit resource shell. The other portion of Magna’s exploration strategy is focused on testing some of the regional targets identified across the 180 km2 land package, most of which remains unexplored.
“We used airborne geophysical
into a future hub and spoke
surveys to identify 12
type model and we believe
A multi-mine hub?
electromagnetic anomalies
Shakespeare can be the hub,”
Even one additional
throughout the property
Jessup asserts.
economic deposit discovery –
that have never been drill
particularly of a higher grade
tested. Because of all the
One of the areas that
than the current Shakespeare
focus previously on getting
Magna has prioritised is the
resource – would make a
Shakespeare into production,
‘Shakespeare-like’ P4 target,
material impact on the future
the regional package has seen
located just 5 km East of the
mine plan, according to
very little exploration.
main deposit. From the limited
Jessup.
drilling that has taken place “We’re trying to prove up
along this magnetic trend to
“We believe there is definitely
the potential for additional
date, Magna has identified
potential for those types of
deposits to be discovered on
similar lithologies to what
deposits in this area. What
this property. These can feed
hosts Shakespeare, which
it could become is a real
bodes well for the target.
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extension of the Sudbury
leverage a growing battery
The company’s ESG first
Basin as a mining district.
metals supply chain geared
approach is also set to win
We’ve done a great job of
towards the production of high
over the growing number of
consolidating the area into a
performance, nickel-intensive
climate-conscious investors
regional package. With that,
EV batteries.
across today’s capital markets.
it opens up the door for us to become a multi-mine producer
And with President Biden
within the next five years.”
attempting to reduce US reliance on Asian battery
There are only a handful of
producers in favour of North
nickel projects as advanced
American battery plants,
as the Shakespeare project
Magna could not be better
in the Western hemisphere,
located to take advantage of
which presents a unique
this tsunami of investment.
opportunity for Magna to
Published by Anderson Murray Media Ltd
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