Skillings Mining Review April 2021

2021 APRIL IN REVIEW

110/04

30

THE WESTERN UNITED STATES IS A NATIONAL TREASURE The Nevada Bureau of Mines and Geology has released Major Mines of Nevada

24

Flying the New Bar with Pumps: A New Level

38

Large Scale Potential and High Grade of Lake Throssell Sulphate of Potash Project

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AMERICAS

05 In Colombia, three miners were killed in an illegal operation

08 Cross-border M&A transactions worth $1.01 billion in Q4 2020 for the Asia-Pacific metals & mining industry

22 Imports of iron ore from China will set a new high in 2020

38 Important Preliminary Exploration Target Highlights Large Scale Potential and High Grade of Lake Throssell Sulphate of Potash Project

STATISTICS

46 Global crude steel output decreases by 0.9% in 2020

46 December 2020 crude steel production

11 Polymet's Air Permits Receives Mixed Opinion by Minnesota Supreme Court

20 Komatsu targets to be first in market with hydrogen-powered mining vehicles

30 The Western United States is a national treasure

EQUIPMENT

06 Heavy equipment demand is increasing in the Middle East and Africa - Bidder activity on Ritchie Bros

14 Laos' Xaysomboun Province will have a Chinese company exploring iron mining

24 Flying the New Bar with Pumps: A New Level

GLOBAL

18 Environmental Stewardship Distinguished Service Award Presented to R. David Williams www.skillings.net | 3

APRIL 2021 VOL.110. NO.04 2021 APRIL IN REVIEW

110/04

30

THE WESTERN UNITED STATES IS A NATIONAL TREASURE

The Nevada Bureau of Mines and Geology has released |Major Mines of Nevada

24

Flying the New Bar with Pumps: A New Level

38

Large Scale Potential and High Grade of Lake Throssell Sulphate of Potash Project

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AMERICAS

In Colombia, three miners were killed in an illegal operation Three people died and two were wounded after a blasting operation at an illegal gold mine in Colombia's Antioquia department went wrong, according to the Antioquia department's Administrative Office of Risk Management.

T

he accident happened on Saturday at the El Avance de Diómedes mine in northwestern Colombia, about half an hour from Buriticá. The miners, whose ages ranged from 18 to 37, inhaled poisonous gases and died, according to the Office of Risk Management. The

survivors were taken to the hospital and are now on their way home. There were no other people trapped beneath the debris.

According to local authorities, 38 people were found illegally mining gold at the same mine a few days ago but were not charged, so they returned over the weekend.

www.skillings.net | 5

EQUIPMENT

Heavy equipment demand is increasing in the Middle East and Africa BIDDER ACTIVITY ON RITCHIE BROS

transportation costs for the seller," Weston noted. "Detailed inspection reports and photos of inventory feature prominently… and are designed to create a higher degree of buyer confidence, which is especially important as inventory is sold ‘as is, where is'."

Excavators, crawler tractors, wheel loaders, backhoes, articulated dump trucks, mobile cranes, and other equipment are available for purchase on Marketplace-E. Interest in buses, pickup trucks, and passenger vehicles has increased recently.

Pre-sales, equipment maintenance and refurbishment, and full-service logistics are all part of Ritchie Bros' service offering.

Phillip Weston, key accounts manager at Ritchie Bros. Middle East.

Marketplace-E, the company's online auction podium for surplus heavy equipment, has increased year over year, especially from buyers in the Middle East and Africa.

C

ompanies in need of this equipment are gradually moving to online marketplaces, according to Phillip Weston, Middle East main accounts manager, because it is a more convenient asset disposal and buying solution despite the disruptions of COVID-19.

"This upsurge is predominantly due to factors such as country-wide lockdowns and global travel restrictions, which are making attendance at traditional, live auction events more difficult," he said.

6 | SKILLINGS MINING REVIEW April 2021

"Furthermore, a shift towards online auction solutions was already underway before the pandemic, which has exponentially sped up its popularity."

Mining and electricity, as well as gas and oil, manufacturing, transportation, and agriculture, are all included in Marketplace-E. Online offerings are available 24 hours a day, seven days a week, and run on a reserve basis.

"Marketplace-E sells the equipment from the consignor's location, eliminating

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AMERICAS

Cross-border M&A transactions worth $1.01 billion in Q4 2020 for the Asia-Pacific metals & mining industry

As per the GlobalData's deals database, total metals and mining industry cross border M&A deals worth $1.01 billion were revealed in Asia-Pacific Q4 2020, led by Nickel Mines' $490 million asset transaction.

T

he figure demonstrated a high of 110.8% over the previous quarter and a low of 33.6% when checked against the last four-quarter mean of $1.52bn. AsiaPacific retained a 13.12 percent share of the cross-border M&A transaction volume of the global metals & mining industry that totaled $7.7bn in the fourth quarter of 2020.

Indonesia was the top country in Asia-Pacific for cross-border M&A transaction value in the metals and mining industry, with an 8.52 percent share and deals worth $655.89 million.

In the purview of deal movement, Asia-Pacific had 27 cross border deals during the fourth quarter of 2020, down 12.90 percent from the previous quarter but up 12.50 percent from the previous four-quarter mean. During the quarter, Australia reported 17 deals.

8 | SKILLINGS MINING REVIEW April 2021

THE TOP FIVE CROSS-BORDER Q4 2020 METALS & MINING INDUSTRY DEALS TRACKED BY GLOBALDATA WERE:

The $490m asset exchange of Nickel Mines with Shanghai Respectable Investment Group PT Wasesa Indo Nusa's $163.4 million purchase of Indokal Elemental Royalties' $55 million asset sale to South32 The $45m purchase by Enaex of Downer Blasting Facilities The purchase of SBQ Steels for $36.69m by Liberty House Company.

CROSS-BORDER M&A TRANSACTIONS IN Q4 2020 FROM THE ASIA-PACIFIC METALS & MINING INDUSTRY: TOP DEALS

During quarter four of 2020, the top five cross-border M&A deals for the

metals & mining industry accounted for 78 percent of the overall volume. The total value of the top five cross-border M&A transactions was $790.09 million, compared to a total value of $1.01 billion for the quarter.

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AMERICAS

10 | SKILLINGS MINING REVIEW April 2021

Polymet's Air Permits Receives Mixed Opinion by Minnesota Supreme Court On the one side, on Wednesday, the Minnesota Supreme Court overturned the ruling of a lower court that would have sent the air permits from PolyMet back to state regulators for further review.

B

ut on the other hand, it ordered a lower court to investigate whether PolyMet, which is trying to open the first coppernickel mine in the state, misled the re-establishment.

the sum stated in permit applications by the company.

In Wednesday's Supreme Court opinion, written by Justice Margaret Chutich, both opponents and supporters of PolyMet claimed victory.

The air permits issued in December 2018 by the Minnesota Pollution Control Agency allow the company to release 250 tonnes of controlled pollutants per year, but opponents argue that if it were to recover more ore, the company would surpass that cap and call the permits an example of "sham permitting."

Central to the case is whether a PolyMet study published in March 2018, 10 days after the public comment period of the air permit ended, details the company's plans to recover 118,000 tonnes of ore per day instead of 32,000 tonnes per day,

In reversing the March 2020 decision of the Minnesota Court of Appeals, Chutich wrote that the MPCA did not need to go back and consider the scope for sham authorization as ordered by the lower court. During the permitting process,

Chutich wrote that the MPCA "was under no federal obligation to investigate sham permitting" and that when it sent the permits back to the MPCA in March, the lower court had "relied on an erroneous interpretation of federal law".

In separate statements, PolyMet President and CEO Jon Cherry said the reversal on Wednesday "is another big win and a major step forward in the defense of our air permit," while an MPCA spokesperson stated it "appreciates the court’s thorough review of the air permitting process for the PolyMet facility."

Meanwhile, environmental groups celebrated the court sending some of their www.skillings.net | 11

AMERICAS

claims back to Court of Appeals to review whether PolyMet's report for potential larger mine "undermined" the MPCA's conclusion that the company "will … comply with all conditions of the permit" and if the company "failed to disclose fully all facts relevant" and “knowingly submitted false or misleading information to the (MPCA).”

“Today’s ruling underscores that the entire process by which PolyMet obtained its permits in 2018 may have been deceptive and allows us to make this case to the Minnesota Court of Appeals,” said Kathryn Hoffman, CEO of the Minnesota Center for Environmental Advocacy, in a news

A rod mill is seen at the PolyMet processing plant near Hoyt Lakes, which will be used to crush metal-bearing rock from half-sized pieces to small pieces of gravel as part of the process of extracting copper, nickel and other metals from the mine. (Bob King / 2013 file / News Tribune)

In separate statements, PolyMet President and CEO Jon Cherry said the reversal on Wednesday "is another big win and a major step forward in the defense of our air permit," while an MPCA spokesperson stated it "appreciates the court’s thorough review of the air permitting process for the PolyMet facility."

release on Wednesday. Near Hoyt Lakes and Babbitt, PolyMet plans to develop Minnesota's first copper-nickel mine.

While proponents claim that it will work safely and bring much-needed jobs to the area, critics, including environmental organisations and Lake Superior Chippewa's Fond du Lac Band, say that the project will risk sending toxic waste into the Watershed St. Louis River, which empties into Lake Superior.

The MPCA has defended the air permit, stating it claims that at the 32,000-tonper-day limit, the company will function viably. It also said the study from PolyMet was "entirely speculative."

A PolyMet attorney said in oral arguments in November that the publication of the study shortly after the comment period ended was "just a coincidence”.

The announcement on Wednesday meant the air permits were no longer on hold.

After the Court of Appeals decision in March 2020, the permits have been on hold, or have remained, or paused. Amid pending court proceedings, a variety of other PolyMet permits remain on hold.

12 | SKILLINGS MINING REVIEW April 2021

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EQUIPMENT

Laos' Xaysomboun Province will have a Chinese company exploring iron mining soon According to RFA, a Chinese company has signed an agreement with the Xaysomboun province in central Laos to begin preliminary studies for iron mining operations, raising concerns among villagers and environmentalists about contaminated rivers and fields.

A

n official from the provincial Energy and Mines Department told RFA's Lao Service Tuesday that the province and the Tai Xan Meng Sino-Lao Minerals Corporation signed a Memorandum of Understanding (MoU) on Feb. 11 that enables the 14 | SKILLINGS MINING REVIEW April 2021

company to conduct feasibility studies in Xaysomboun's Anouvong district.

Over the last two years, the province of Xaysomboun, founded in 2013, has been a common target for foreign mining companies. Around a dozen, such com-

panies have been granted permission by provincial authorities and the Lao central government to investigate the possibility of mining operations during that period.

“Xaysomboun is a new province and it is poor, but rich in natural resources,

an international environmental advocacy organization, who requested both individual and organizational anonymity to speak freely, told RFA.

ratory problems. A resident of Nam Yon village in Anouvong district, the province's most heavily mined town, told RFA that life near the mines was smelly and noisy.

“For example, blasting activity kills or displaces wildlife in its vicinity. Additionally, the noise and dust created by exploration are detrimental to the health of local residents, especially when we consider particulate matter created by explosions.

It will have a silent, but gravely harmful effect,” the environmental advocate said.

“The smell of chemicals is so bad, it smells like sewage, and it is so pervasive in the evening,” the resident said.

Despite the fact that developers typically sign agreements to protect livelihoods and the environment, the environmental advocate claims that the impacted communities suffer in reality.

According to the source, provincial authorities never assess particulate matter levels, and residents living near the mining activity often suffer from respi-

“We hear very loud explosions every day. It’s so loud and strong that it shatters the glass in our windows and shakes up metal gates and our homes,” the resident said.

Another Nam Yon villager told RFA that river pollution was a problem for her.

“They use chemicals that eventually flow into the river. We are now too afraid to eat the fish, shrimp or crabs from the river.

Most of us here don’t have jobs, so we live off the forest and the river as our only food sources,” she said.

especially from mining. It is in need of development,” an official of the Xaysomboun Administration Office told RFA on Jan. 28.

“At least 10 proposed projects have been granted the right to perform feasibility studies since 2019. That’s just for the feasibility study, not for exploitation yet. If any project is found to be infeasible, it will be abandoned,” the official said.

Although companies applaud the province's desire to attract international investment, local citizens are concerned about how mining has impacted their lives over time and have taken a stand against new iron mining projects.

“The exploration and exploitation will destroy nature, especially in the forest, the habitat of a lot of species,” a worker from www.skillings.net | 15

EQUIPMENT

“My home was once damaged by an explosion. The project developer came to see the damage but did nothing to fix it. I had to make repairs myself,” she added.

Since September, Vietnam's Look Yao Company has been pursuing gold mining possibilities in Xaysomboun as part of a separate mining project. The mine will be in the Longchaen district, near Namxan village.

The hopeful miners, according to a village resident, have compromised village life.

“Their trucks run through the village, damaging roads, hitting cows and creating dust. They never repair the damage,” the Namxan villager said.

According to a representative from the province's Energy and Mines Department, the Tai Xan Meng project would have minimal environmental effects.

“They signed the initial contract to explore the iron mine, not to exploit it yet. This is just the first phase. Anyway, the iron ore is far away from the villages and not near the river. If it were close, we would not give permission,” the orifical said.

Despite the fact that developers typically sign agreements to protect livelihoods and the environment, the environmental advocate claims that the impacted communities suffer in reality.

16 | SKILLINGS MINING REVIEW April 2021

Xaysomboun has committed to exploration rights for four separate projects since 2019, according to the department's report to the provincial people's council late last year.

According to the most recent MoU, Tai Xan Meng will explore 102 square kilometers (40 square miles) in the Anouvong district. The Lao Kalongdepo Company is exploring a 177-square-kilometer region as part of the second project.

The third project is a 234-square-kilometer exploration project in Longhaeng district, a joint venture among the Lao Defense Ministry and Joe Bounmy Minerals Corporation. ZY Mineral Processing

Corporation is pursuing a fourth project in an unspecified field. Aside from the Vietnamese gold mining initiative, Phu Bia Mining, backed by Australia, has been running gold mines in Xaysomboun since 2006.

The remaining schemes are on a smaller scale and are funded by Chinese firms.

According to a representative from the Xaysomboun Agriculture and Forestry Department, the developers must all protect the environment. “During these explorations, the project owners must

protect the environment. For example, if they cut down trees to clear the forest for an access road, they must pay for replanting and reforestation,” the official told RFA. At a parliament meeting in November, Souanesavanh Viyaket, the Lao National Assembly secretary, said that companies with concessions should strictly follow their contracts and local law to protect the environment, biodiversity, and livelihoods.

and oil have fueled Laos' recent economic development. However, the policies have ignited controversy over land taken without adequate compensation and environmental pollution.

In Laos, land grabs and the exploitation of public property for the benefit of foreign and domestic corporations are normal, and villagers affected by them are always afraid of retaliation if they speak out publicly.

Land concessions to China, Thailand, and Vietnam for natural resources such as timber, agricultural products, minerals,

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GLOBAL

Environmental Stewardship Distinguished Service Award Presented to R. David Williams

18 | SKILLINGS MINING REVIEW April 2021

The Society has awarded R. David Williams the Environmental Stewardship Distinguished Service Award for Mining, Metallurgy, and Exploration (SME).

T

he award, which was founded in 1970 and is sponsored by the American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME), honours significant contributions to environmental protection through research, the design or invention of useful equipment or procedures, or outstanding service to governmental or private organisations devoted to environmental conservation in any region. This award was renamed SME by AIME in 2011.

David Williams is known for his contributions to creating the Acid Rock Drainage Technical Initiative (ADTI) guidebooks on Metal Mining-Induced Water Mitigation. During the Society's annual meeting, March 1-5, 2021, he was recognised on SME's virtual award videos.

charge of overseeing several AML ventures in Western Montana. The Society for Mining, Metallurgy, and Exploration (SME) brings together the best and brightest minds in the mining and mineral industries.

SME's world-class technological infrastructure, training services, networking opportunities, and professional development tools help over 13,000 global members advance their careers.

Our members are committed to sharing best practices in mining protection, environmental stewardship, and progress.

Federal mineral rules, general reclamation concerns, and mineral and metal discovery are among David's areas of expertise.

Via the Acid Drainage Technology Initiative and the Global Alliance, he has been actively interested in acid rock drainage issues. Williams has written, discussed, and co-chaired conference sessions on climate change issues for many years as a mountaineer and skier.

Williams is recognized for contributing substantially to the development of acid rock drainage technical initiative guidebooks on mitigation of metal mining influenced water “I was surprised....during my career as a geologist with the Department of Interior, Bureau of Land Management, I'd always taken ‘Environmental Stewardship' as simply a part of my job, so it was rewarding to be recognised for maybe even going above and beyond,” David said when asked what his first thought was when he learned he was the recipient of the Environmental Stewardship Distinguished Service Award. Thank you very much to all of my colleagues at the DOI and beyond for their support; without it, this award would not have been possible!”

David graduated from Bates College in Maine with a B.S. in Geology and Montana's University with an M.S. in Igneous and Metamorphic Petrology. He worked for the Bureau of Land Management for over 40 years, and was stationed in Denver, Coeur d'Alene, and Butte, Montana, for most of his career. In the Butte Field Office, Williams and his colleague Joan Gabelman were enforcing federal mineral laws. He was also in

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AMERICAS

Komatsu targets to be first in market with hydrogen-powered mining vehicles In a first for the industry, Komatsu, Japan's top construction equipment manufacturer, aims to establish hydrogen power as a diesel replacement for heavy-duty mining dump trucks, according to Nikkei.

A Komatsu 980E dump truck: The Japanese manufacturer aims to add hydrogen-powered mining trucks to its lineup, which already includes electrics.

20 | SKILLINGS MINING REVIEW April 2021

T

he company plans to begin developing hydrogen trucks in 2021, to have them ready for use by 2030. This drive to add hydrogen power to mining coincides with Komatsu customers' efforts to reduce carbon dioxide emissions as much as possible.

Overhead power lines power few mining trucks, but the majority are diesel-powered. The use of hydrogen as a fuel has the advantage of allowing zero-emission trucks to drive on roads where power lines are not available.

Mining trucks, which can weigh up to 600 tonnes when fully loaded, dwarf buses. They present a different degree of technological challenges in terms of hydrogen power than regular fuel cell vehicles.

Another stumbling block is the cost.

Komatsu intends to buy fuel cells from outside vendors for its hydrogen-powered trucks. The price of fuel cell stacks for electricity generation is high. However, if used in a broader range of applications, mass manufacturing is likely to lower their costs. Komatsu's mining equipment sales account for approximately 40% of the company's total revenue. Sany, a Chinese competitor to Caterpillar, has taken

measures to improve its competitiveness in this area, including the acquisition of American mining machinery manufacturer Joy Global in 2017.

Komatsu must adjust to the industry's move away from fossil fuels, given its significance.

By eliminating fossil fuel use during extraction and producing energy from renewable sources, industry players hope to reduce CO2 emissions through their operations. This is in line with a global trend toward reducing carbon emissions over the life cycle of a commodity, from

This drive to add hydrogen power to mining coincides with Komatsu customers' efforts to reduce carbon dioxide emissions as much as possible. resource production to disposal. Some mining companies have revealed their intentions to construct their own hydrogen infrastructure. Anglo American will build

a solar power plant with a capacity of 320 megawatts near a platinum mine in South Africa. This production will produce up to 1 tonne of hydrogen per day.

Komatsu has set a goal to reduce CO2 emissions from its construction and mining equipment by half by fiscal 2030 compared to fiscal 2010.

In one project, the company has partnered with a commercial electric vehicle manufacturer in the United States to develop electrified heavy machinery, with plans to begin mass production as early as 2023.

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GLOBAL

Imports of iron ore from China will set a new high in 2020 China's iron ore imports reached a new high of 1.17 billion metric tonnes in 2020, with an average import price of $101.7 per tonne, up 7.3 percent year on year, according to analysts, reflecting strong demand in the downstream steel industry and the Chinese economy's continued and steady recovery.

A

ccording to the General Administration of Customs, the volume surpassed the previous record of 1.08 billion tonnes set in 2017. Last year, the corresponding value of imported iron ore reached a new high of 822.87 billion yuan ($127 billion), up 17.4 percent year on year.

In the first 11 months of this year, China exported 48.83 million tonnes of steel, down 18.1 percent year on year, while imports increased 74.3 percent every 22 | SKILLINGS MINING REVIEW April 2021

year to 18.86 million tonnes. According to the Ministry of Industry and Information Technology, the country's iron ore imports grew 10.9 percent every year to 1.07 billion tonnes in January-November, surpassing the total volume imported in 2019.

According to Zhu Yi, China's demand for iron ore could remain strong this year, a senior analyst for metals and mining at Bloomberg Intelligence, due to higher crude steel production, boosted by

increasing demand from downstream sectors such as infrastructure construction and vehicle manufacturing.

“The supply of iron ore from overseas miners will pick up in 2021, as production and shipments were disrupted by COVID19 and the global iron ore market was in short supply previously,” Zhu said.

Iron ore is necessary for the manufacture of steel, which is needed for a large industrial base's continued existence. 80% of China's iron ore demand is imported, mainly from Australia and Brazil.

Imports of iron ore from these two countries account for 60% and 20% of the country's total product imports, respectively. “The price of iron ore may stay high in the first quarter this year due to potential production losses from

weather issues, and then start to decline later in the year,” she added. This is despite China's economy growing by 2.3 percent in 2020, with critical economic goals exceeding expectations and industrial production rising by 2.8 percent year-on-year in 2020 and 7.3 percent in December.

According to the National Bureau of Statistics, China's economy is projected to be the world's only major economy to expand in 2020, with GDP reaching 101.59 trillion yuan ($15.68 trillion), surpassing the 100 trillion yuan mark.

According to the Ministry of Industry and Information Technology, China's steel

ning and Research Institute, China's steel product consumption is projected to rise 9.6% year on year to 981 million tonnes in 2020 and 1% to 991 million tonnes in 2021, demonstrating the Chinese economy's high resilience amid the COVID-19 effect and the global economic downturn.

Iron ore is necessary for the manufacture of steel, which is needed for a large industrial base's continued existence. 80% of China's iron ore demand is imported, mainly from Australia & Brazil.

Due to the massive potential for future growth, Qu Xiuli, vice chairwoman of the China Iron and Steel Association, believes that the country's steel sector should further tap the possibility of new and high-end products to pursue high-quality production.

firms posted a third consecutive monthly rise in exports in November, owing to competitive advantages in the foreign market and a pickup in overseas demand.

According to Li Xinchuang, chief engineer of the China Metallurgical Industry Plan-

She also recommends that the industry focuses on innovation and low-carbon growth.

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Flying the New Bar with Pumps: A New Level KSB, A LEADING PUMP MANUFACTURER, DESCRIBES HOW ITS MDX SLURRY PUMP FOR MILL CIRCUITS IMPROVES EFFICIENCY AND WEAR LIFE.

Within the pump industry, it is generally acknowledged that the extraction of minerals from rock places the highest demands on fluid handling equipment.

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umps must not only deal with violent slurries and constantly changing working environments that cause unnecessary wear, but they must also provide the highest standards of reliability.

As a result, manufacturers have responded by developing highly advanced, heavy-duty slurry pumps

capable of lowering total cost of ownership, increasing performance, and minimising downtime.

Mining is not a sector in which pump companies can dabble on the side; they must be completely committed. This dedication starts with research and development, which drives constant improvements in pump and material www.skillings.net | 25

EQUIPMENT

technology, implements new technology such as artificial intelligence, machine learning, and remote sensing, and enhances complex parts' manufacturability.

Pumps for SAG and ball mill circuits, mill discharge, cyclone feed and screen pumping, hydro-transport, and tailings booster stations are available from reputable pump companies.

To have the best and most efficient products for transporting slurry, the pump manufacturer must have experience in hydraulic design, mechanical design, wear technology, and materials technology. They should also be willing and able to work with their customers during the pumps' lifecycle to provide the best results and value for money.

“While no two slurries are the same, all slurries place extreme demands on pumps,” says Jonathan Samuel, vice-president, sales and marketing, for KSB in hard rock mining.

HEAVY-DUTY SLURRY PUMPS ARE NEEDED FOR AGGRESSIVE SLURRIES

“While no two slurries are the same, all slurries place extreme demands on pumps,” says Jonathan Samuel, vicepresident, sales and marketing, for KSB in hard rock mining. “Slurry pumps used for solids transport have to move a variable composition of rocks, sands and chemicals.

Under such abrasive and corrosive conditions, pump parts can wear out very quickly. When pump parts wear out before planned outages, the entire production process comes to a grinding 26 | SKILLINGS MINING REVIEW April 2021

halt, resulting in exorbitant costs and production losses.

That means reliability is essential in any slurry transport system.”

For more than 130 years, the KSB Group has been serving the mining industry, and it is now engaged in mining operations all over the world. The mining operation's headquarters are at the GIW Industries plant in Grovetown, Georgia, where some of the world's largest centrifugal slurry pumps for hard rock mining, dredging, and the oilsands industry have been constructed, tested, and manufactured for many years. For any application in mining, GIW manufactures a wide range of slurry pumps in various materials.

In addition to slurry pumps, the KSB Group offers a wide range of process pumps that can be used in various non-slurry applications in mines and minerals processing plants. Submersible bore well pumps, vertical turbine pumps, horizontal split case pumps, multi-stage high-pressure pumps, single-stage horizontal pumps, and other types of pumps are available.

PUMP PRODUCTION MDX

Even under varying flow conditions, a large diameter impeller allows for slower pump operation, which increases the wear life of wet-end components. By reducing particle recirculation between the impeller and the liner, a slurry diverter greatly extends the life of the suction liner.

“The diverter is based on the theory that if particles can be excluded from the nose gap, wear life is enhanced,” explains Jonathan Samuel. “Research has shown that internal velocity and pressure gradients between the impeller shroud and the suction liner can allow particles to migrate toward the suction eye.

These solids contribute to the wear-induced degradation of the gap between the suction liner and the impeller. As this gap grows, wear rates increase and pump efficiency is reduced.” The particle flow was confirmed in laboratory tests at the GIW plant, which

EXPERIENCE OF HARD ROCK

The mill circuit, to a large degree, is where the most extreme duty conditions in hard rock mining can be found, and this places significant demands on pumps. The abrasive nature and density of the slurry being pumped can cause early component wear, resulting in component failure and costly mill downtime.

This means that the pump's architecture and materials must be able to handle solids-laden slurries while still providing stability and long wear life. The slurry must move through the pump with as little wear as possible on the tubing, liners, impeller, and shaft sealing mechanism. They must also be able to deliver high flow rates and endure harsh operating conditions.

It becomes possible to establish a head/quantity and efficiency curve essential for efficient mill operation by adding features that resolve them. Since the pump is matched to operating cycle times with mill outages, efficiency is maximised and operating costs are reduced. A lower specific speed design, a slurry diverter, a variety of high chrome white irons, and multiple suction liner configurations are just a few of the important features that KSB offers in its MDX slurry pump for mill circuits.

www.skillings.net | 27

EQUIPMENT

Photo by Duane Daws

A lower specific speed design, a slurry diverter, a variety of high chrome white irons, and multiple suction liner configurations are just a few of the important features that KSB offers in its MDX slurry pump for mill circuits. led to the creation of various methods to combat it. The flow path of particles can be reversed by ‘diverting' them away from the suction liner of the pump.

The result is the KSB-patented slurry diverter, which greatly increases the MDX pump's average service life when processing the same number of ore.

by adding a clearing action between the impeller and the suction liner, reducing recirculation and wear. The adjustable suction liner allows the user to maintain a close nose distance, improving wear life and increasing efficiency.

Slower speeds and the development of the slurry diverter aren't the only features that give the MDX pump wear resistance.

The impeller inlet's proprietary architecture enables both liquid and solid phases to exist in the slurry.

This is extremely beneficial to the plant operator because it reduces costs by aligning operating cycle times with mill outages. The MDX pumps have thicker cross-sections in the wet end components, which allows for a long and stable pump life. To combat wear caused by velocity problems, GIW also offers multiple configurations of Suction Liner nature.

By giving the pump a deep base circle, you can reduce abrasion by minimising violent particle impingement. Oversized shrouds improve vane efficiency

GIW's dedication to materials research and development has resulted in the creation of a range of high chrome white irons that provide consumers with a

28 | SKILLINGS MINING REVIEW April 2021

variety of choices based on their ore characteristics, operating philosophy, and production objectives.

“The MDX has an established and successful position globally for mill discharge pumps, e.g., in SAG mill, ball mill discharge, cyclone feed and screen feed application,” Samuel says. “It is more than capable of delivering flows of up to 14,000 m³/h, heads of 45m at slurry densities in excess of 1.65.”

Customers in the hard rock mining industry want a pump that can handle a wide range of duty conditions while still providing full throughput at the lowest possible cost. Now that the MDX has a large foreign installation base, KSB is working hard to meet and surpass these high standards.

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www.skillings.net | 29

AMERICAS

The Western United States is a national treasure THE NEVADA BUREAU OF MINES AND GEOLOGY HAS RELEASED MAJOR MINES OF NEVADA, AN OFFICIAL STUDY ON THE SILVER STATE'S MINING OPERATIONS. ACCORDING TO THE PUBLICATION, THE TOTAL VALUE OF ALL COMMODITIES GENERATED BY NEVADA'S MINING INDUSTRY WAS APPROXIMATELY US$8.1 BILLION IN 2019,

30 | SKILLINGS MINING REVIEW April 2021

There have been massive metal finds and staking rushes west of the Mississippi in the past, like the Comstock Lode and the 1849 California Gold Rush. More recently, at Glamis Gold's prosperous Picacho Gold Mine in southeastern California, Vancouver's Chester Millar pioneered the heap leach gold recovery process, which is now widely used.

B

ecause of its prospectively, stable mineral tenure, and ease of access, the Western United States remains one of the world's major mineral producers and a popular investment destination for Canadians.

We are going to take up on a few highlights because there are far too many businesses to cover.

The popular Coeur d'Alene District of northern Idaho has produced enormous

amounts of silver, lead, and zinc – and continues to do so at Hecla Mining's Lucky Friday Mine, which has been in operation for nearly 80 years.

The true star of the Western United States, however, is Nevada, which is the country's largest gold producer. The Nevada Bureau of Mines and Geology has released Major Mines of Nevada, an official study on the Silver State's mining operations. According to the publication,

the total value of all commodities generated by Nevada's mining industry was approximately US$8.1 billion in 2019, down 3.8 percent from the US$8.42 billion reported in 2018. According to the actual gross proceeds registered to the Nevada Department of Taxation, gold and silver accounted for nearly 85% of all value, contributing over US$7.1 billion.

According to the United States Geological Survey, Nevada continues to be the nation's top gold producer, accounting for around 87 percent (173 tones) of the country's total (200 tones) and ranking fifth in the world behind China (420), Australia (330), Russia (310), and Canada (180).

Nevada is also home to a slew of gold, silver, and copper mining projects. Eros Resources Corp.'s flagship project in western Nevada is the Bell Mountain www.skillings.net | 31

AMERICAS

Gold Project, which received a favorable preliminary economic assessment (PEA) in 2017. Heap leaching is an option for the gold deposits – see the profile below.

Gold79 Mines Ltd. [AUU-TSXV] is investigating three gold ventures: the Jefferson Canyon and Tip Top gold projects in Nevada, and the Gold Chain Project in Arizona (see profile below).

Ely Gold Royalties Inc. [ELY-TSXV; ELYGFOTCQB] has a 100% option agreement with Goldcliff Resource Corp. [GCN-TSXV; GCFFF-OTCBB] to purchase the Aurora West property in Mineral County.

Nevada Copper Corp. [NCU-TSX] operates the Pumpkin Hollow Mine, which is located 100 miles southeast of Reno and has both an underground and open pit plant.

Hard rock mining produces $4.29 billion in Arizona, including $482 million in business and employee taxes on a total payroll of $1.23 billion. Arizona generated 66

percent of all copper in the United States in 2018. Arizona, if it were a nation, would be the world's seventh largest copper producer.

Every month, the state produces between 70,000 and 80,000 tons of copper. Arizona, on the other side, has been a major gold producer. Arizona has produced higher than 16 million troy ounces (498 tonnes) of gold as a by-product of copper mining through the end of 2019.

The Moss Mine in the Oatman District, northwest Arizona, produced 12,401 gold equivalent ounces in Q4 2020, according to Northern Vertex Mining Corp. [NEETSXV; NHVCF-OTC]. The in-situ Florence Copper Project, 65 miles southeast of Phoenix, is in the permitting stage for Taseko Mines Ltd. [TKO-TSX, LSE; TGBNYSE American].

Equinox Gold Corp. [EQX-TSX; NYSE American] delivered 141,300 ounces of gold in 2020 from its 100%-owned Mesquite Mine in Imperial County in southeast California. After announcing commercial production in late November 2020, the company's Castle Mountain Mine on the Nevada border delivered 5,300 ounces. The mine is estimated to produce 200,000 ounces of gold per year.

Southern Empire Resources Corp.

[SMP-TSXV] is also exploring the past-producing Oro Cruz mine and the adjacent 100%-owned American Girl mine property in southeast California, where substantial historical gold resources remain from previous operations – see profile below.

Providence Gold Mines Inc. [PHD-TSXV] is considering the optioned Tuolumne The Pumpkin Hollow copper mine in Nevada. Credit: Nevada Copper Corp.

32 | SKILLINGS MINING REVIEW April 2021

Blue Diamond Gypsum Mine - Las Vegas.

Photo: Rachel Micander

100 percent-owned American Girl mine property (collectively the "Oro Cruz Gold Project"). The Oro Cruz Gold Project is located 22.5 kilometres (14 miles) southeast of Equinox Gold Corp.'s Mesquite gold mine and 25 kilometers north of Yuma, Arizona.

property in Motherlode nation, which once housed a gold mine.

Viscount Mining Corp. [VML-TSXV; VLMGF-OTCQB] recently drilled 702.7 g/t silver over 14.9 meters at its Silver Cliff Project in Custer County, Colorado, including 1,259 g/t silver over 7.6 meters.

Adamera Minerals Corp. [ADZ-TSXV; DDNFF-OTC] established a joint venture with senior mining company Hochschild Mining LLC in northeast Washington State to fund discovery on its Cooke Mountain gold project.

Renowned geologist Ron Netolitzky and Dale Wallster, Chairman and CEO, respectively, lead Southern Empire. Both have long careers that have included important mineral deposit discoveries and subsequent acquisitions by major mining companies.

At Cargo Muchacho Mountains of southeastern California, SMP is considering the past-producing 2,160-hectare (5,338acre) Oro Cruz mine and the adjacent

The Oro Cruz Gold Project, which has expanded historical large-scale open-pit and underground mining of the American Girl, Padre y Madre, Queen, and Cross oxide gold deposits occurred between 1987 and 1996, is where Southern Empire's management believes they can find substantial gold mineralization. Until 1996, when falling gold prices curtailed mining activities, gold was recovered by both heap leaching of lower-grade material and milling of higher-grade material.

Southern Empire claims it will add substantially to the current historical inferred reserve, speculated at 341,800 ounces of gold based on 4,386,000 tones averaging 2.2 g/t gold at a cut-off grade of 0.68

Paramount Gold Nevada Corp. [PZGNYSE American] recently filed a Feasibility Study for its Grassy Mountain gold project, located 22 miles southwest of Vale in eastern Oregon, for a potential high-grade, underground mining operation. In the Western US, there is a lot of exploration and mining going on, and despite some setbacks caused by the COVID-19 virus, several ventures are moving forward.

The acquisition, exploration, and production of gold deposits in North America is the priority of Southern Empire Resources Corp. [SMP-TSXV; SMPEF-OTC; 5RE-FSE].

The Oro Cruz Gold Project.

Image courtesy: www.smp.gold/

www.skillings.net | 33

AMERICAS

The true star of the Western United States, however, is Nevada, which is the country's largest gold producer. The total value of all commodities generated by Nevada's mining industry was approximately US$8.1 billion in 2019, down 3.8 percent from the US$8.42 billion reported in 2018. g/t gold (4,835,000 tones at 0.07 oz/ ton gold), which is estimated at 341,800 ounces of gold based on 4,386,000 tones averaging 2.2 g/t gold at a cut-off grade of 0.68 Company geologists believe there is still a lot of gold to be found in the untested down-dip extensions of the historical inferred deposits and elsewhere on the land, based on impressive historical drill results such as 10.7 meters of 20.9 g/t gold and 12.2 meters of 13.4 g/t gold.

flown over the entire land, and Oro Cruz recently completed surface and underground LiDAR surveys.

compliant with federal surface management regulations and meeting the necessary content specifications.

Southern Empire has a leg up on the competition since it was previously a manufacturer. There is already infrastructure in place, such as paved road access, a high-voltage power transmission line, historical heap leach pads, 3 km of underground construction, and a skilled local workforce.

Before the BLM decides on a final approval decision on Southern Empire's planned exploration, this critical BLM decision provides for the start of the environmental review process and a public comment period.

There is still gold left in the old heap leach pads and waste rock dumps, which could provide immediate cash flow. Southern Empire has shipped samples from its first phase sonic drilling program, which consisted of 20 holes drilled on the two ancient heap leach pads.

Southern Empire got a positive decision letter from the Bureau of Land Management (BLM) of the United States Department of the Interior in January 2021 for its Oro Cruz exploration Plan of Operations.

Besides, airborne magnetic and radiometric geophysical surveys have been

Southern Empire's exploration plan was reviewed by the BLM and found to be

34 | SKILLINGS MINING REVIEW April 2021

Southern Empire's 2021 exploration plans include the construction of 65 drill pads for Reverse Circulation (RC) and/or core drilling in seven target areas, as well as related temporary access road construction, once final permitting is in hand.

Geochemical and geophysical surveys, geological mapping of the open pits and underground workings to find further drill target areas, and identifying a compliant

reserve for the unrecovered gold hosted in the old heap leach pads are among the other objectives of SMP's 2021 exploration. Metallurgical research is also in the works.

A large shareholding in Augusta Gold Corp.

[G-CSE; formerly Bullfrog Gold] of 1,625,000 Augusta shares and 1,125,000 warrants, worth approximately $5 million, is another primary asset of Southern Empire. Augusta Gold, which has an advanced gold project in Nevada, is a major shareholder (15.3 percent) of Barrick Gold, and Richard Warke's holding company recently completed a $22 million financing in Augusta.

Southern Empire is lucky to have acquired the highly prospective, past-producing Oro Cruz and American Girl assets in the Caborca Orogenic Gold Belt, which hosts prosperous gold mining operations, including Fresnillo Plc's Herradura mine (2019 gold output of 482,722 oz) and Equinox Gold's Mesquite mine (2020 gold production of 141,300 oz).

As of February 16, 2021, Southern Empire Resources had 50,906,800 shares issued and outstanding, with a working capital of approximately $9.65 million (approximately $0.29 per share); genuinely a "Value Proposition."

[ERC-TSXV; BPUZF-OTC] Eros Resources Corp. is a junior gold-focused company founded

by Ron Netolitzky, a well-known Canadian geologist.

He was personally involved in three major gold discoveries in North America, including Snip and Eskay Creek, two of Canada's most prolific high-grade precious metal mines. Both are found in British Columbia's Golden Triangle area. The Brewery Creek mine, located near Dawson City, Yukon, is the seventh.

In 2015, he was inducted into the Canadian Mining Hall of Fame for his exceptional lifetime achievements. Eros was founded by Netolitzky with the help of Chief Financial Officer Andrew Davidson, as well as directors Tom MacNeill and Ross McElroy. Each has a successful track www.skillings.net | 35

AMERICAS

Mountain Project's capital and operational costs (+20 percent). In the meantime, Eros announced in an October 2020 update that it had begun a soil geochemical survey to find drill targets in order to extend the current resource model. A 200 x 200-foot sample grid was used to collect 1,000 soil samples, according to the company. Rock-chip samples were taken where bedrock was found.

The samples will be used to determine drill targets based on anomalous gold in soil and favorable geology (silicification) where present, according to Eros. As required, reverse-circulation exploration drilling will be used to test targets.

After Eros announced that it had submitted a Water Pollution Control Permit Application to the Nevada Bureau of Mining Regulation and Reclamation, the company received an update (BMRR).

The application was part of a longer permit process that included an authorized mine plan of operations, an environmental review that found no significant effects, and a decision record authorizing the project's progress. record of bringing greenfield projects to fruition. Eros' two-pronged corporate strategy entails moving forward with its own gold project in Nevada while also making strategic investments in other well-positioned gold ventures. The Bell Mountain Gold Mine, near Fallon, Nevada, is the company's flagship project.

excluding by-product silver and royalty payments of US$2.56 million. Using a US$1,300/oz gold price and US$17.50/oz silver price, the PEA calculated the pretax present value (NPV @ 5% and internal rate of return at US$17.6 million and 41.4 percent, respectively, with a payback period of 1.7 years.

A preliminary economic assessment (PEA) conducted in 2017 (and not revised to take into account current gold and silver prices) predicts a four-year mine life with cumulative output of 60,056 ounces of gold and 408,498 ounces of silver before expansion based on renewed exploration.

The Bell Mountain Property's deposits (Spurr, Varga, Sphinx, and East Ridge) are typically amenable to heap leaching processing. They have 58,785 equivalent gold ounces in measured and indicated resources. On top of that, there are 31,103 ounces of gold equivalent ounces inferred.

The PEA predicts a cash cost of US$759/ oz generated over the life of the mine,

The company recently hired McClelland Laboratories in Reno to estimate the Bell

36 | SKILLINGS MINING REVIEW April 2021

In a letter, the US Navy's Principal Deputy stated that the US Navy is committed to working with Bell Mountain to accommodate mine construction near the Fallon Naval Air Station.

“We strongly believe that further exploration work on the property in the near term will further increase the size of the Bell Mountain, and that is exactly what we intend to do,” Netolitzky said.

The company has stated that it expects to announce a production decision within the next 12 months. Aside from Bell Mountain, Eros has an actively managed equity portfolio that includes handpicked opportunities where management

assumes significant value can be realized. Skeena Resources Ltd. [SKE-TSXV; SKREF-OTCQX; RXFB-FSE], Southern Empire Resources Corp. [SMP-TSXV], and MAS Gold Corp. [MAS-TSXV] are among the companies in which the breadth of management expertise offers useful guidance in choosing opportunities.

Eros recently increased its holdings in MAS Gold to 11.8 percent through a private placement of 7.1 million MAS flow-through units at $0.07 per share.

In northern Saskatchewan, MAS Gold is advancing a number of advanced gold exploration properties.

Southern Empire is a gold-focused corporation that owns the American Girl Mine property in southeast California as well as the neighboring Oro Cruz property, which is 100 percent optioned and situated approximately 22.5 kilometers southeast of Equinox Gold Corp.'s [EQX-TSXV; EQXGF-OTC] Mesquite gold mine in southern California.

Arizona generated 66 percent of all copper in the United States in 2018. Arizona, if it were a nation, would be the world's seventh largest copper producer.

The Eskay Creek and Snip mines are being redeveloped by Skeena Resources.

Eros claims it could be a good investment opportunity due to the strength of its Bell Mountain gold mining project and successful investment portfolio. Eros shares were valued at $0.095 on February 16, 2021, with a 52-week range of 16.5 cents and $0.055.

Gold79 Mines Ltd. [AUU-TSXV] is a TSX Venture-listed business that provides low-risk exposure to early-stage precious metals exploration in Nevada, a U.S. state that was named by the Fraser Institute as the most desirable mining jurisdiction in the world in 2019.

Gold79 is managed by a highly experienced team, including director James Franklin, a geoscientist and member of the Canadian Mining Hall of Fame who has spent most of his long career documenting the complex evolution of the Canadian Shield and its connection to its phenomenal mineral resources.

Gary Thompson, CEO of Brixton Metals Corp. [BBB-TSXV], was a co-founder of the company and previously worked with EnCana Corp. (now rebranded as Ovintiv Inc.), Newmont Alaska Ltd., and NOVAGOLD Resources Inc. [NG-TSX].

The company's officers and directors own 15.3 percent of the company's 91.4 million (121.1 million completely diluted) common stock, which traded at $0.09 on February 1, 2021, with a 52-week range of 14 cents and $0.02.

On three gold ventures, Gold79 has a 100 percent earn-in incentive and/or purchase agreement. Both of the priority projects are in Nevada. The gold ventures are Jefferson Canyon and Tip Top. The Gold Chain Project, which is located in Arizona, is the third.

www.skillings.net | 37

GLOBAL

Important Preliminary Exploration Target Highlights Large Scale Potential and High Grade of Lake Throssell Sulphate of Potash Project Sulphate of Potash Project at Lake Throssell a Recent High-Grade Find D For the emerging Lake Throssell SOP discovery, an initial JORC compliant Exploration Target has been identified.

D The Exploration Goal encompasses a strike length of 70 kilometers of the interpreted palaeovalley, which is part of a total strike length of 112 kilometers under tenure, which includes neighbouring tenements under application.

D In the profile, high grades and numerous potential aquifers are encountered, indicating that trenching and deep development bores are feasible.

D Additional tenements under application to the north and south of the Exploration Goal provide excellent potential to increase it.

The Exploration Target shows that Lake Throssell has the potential to become a major, multi-decade SOP production centre, with significant competitive advantages such as proximity to infrastructure and services.

T

rigg Mining Limited (ASX: TMG) (Trigg or the Company) is pleased to announce that for its 100 percent-owned Lake Throssell Sulphate of Potash (SOP) Project, located 170 kilometers east of Laverton in Western Australia, it has established an initial Exploration Target of approximately 7.5 to 27 million tons at a grade ranging between 9,000 and 10,000 mg/L SOP equivalent.

The Exploration Target's future quantity and grade are purely hypothetical. There hasn't been enough research to come up with a Mineral Resource estimate. Further 38 | SKILLINGS MINING REVIEW April 2021

exploration may or may not result in the estimation of a Mineral Resource.

The Exploration Goal is focused on the results of exploration activities completed to date on granted tenement E38/3065, which covers a 36-kilometer strike length of the interpreted palaeovalley.

Extrapolating an additional 34 kilometers of strike length into tenement applications E38/3544, E38/3483, E38/3458, and E38/3537, which are thought to have similar geology and brine characteristics.

“Defining the Exploration Target is a very significant first step towards assessing the

value of the enormous opportunity we have in front of us at the Lake Throssell SOP Project,” said Keren Paterson, Trigg Mining's Managing Director.

These preliminary findings are promising and reinforce our belief that Lake Throssell has the potential to host a long-term, low-cost source of primary sulphate of potash for global food security.

There is still room to build on this Exploration Goal, which covers the first 70 kilometers of the 112-kilometer-long interpreted palaeovalley. We will continue to extend our awareness of the potential

of this vast high-grade SOP system with the latest air-core drilling program and planned field work.

Lake Throssell is well placed for potential growth, with rail access at Leonora, an airport and commercial mining support at Laverton, and a gas pipeline at Yamarna, which is 20 kilometers to the south of our tenure. The Great Central Road is being upgraded to become the Outback Highway, and we hope that it will hit the mine gate before development begins.

The new air-core drilling program has been extended to approximately 50 holes and is progressing well as a result of these very encouraging results.

Weather permitting, the program is on schedule to be completed by the end of February, and we expect to receive the assay results four weeks later. These findings would pave the way for our first Inferred Mineral Resource estimate for Lake Throssell, which will be the Company's second since listing.”

EXPLORATION GOAL OVERVIEW

The following pages of this announcement contain the initial Exploration Target for the Lake Throssell SOP Project, as well as supporting details and data for the Exploration Target: Range

Lower Estimate

Upper Estimate

Sediment Volume (106 m3)

19,363

36,397

Drainable Brine Volume (106 m3)

819

2,727

Potassium (K) (mg/L)

3,993

4,394

3.4

12.1

8,900

9,800

7.5

27.0

K Mass (Mt) Equivalent SOP Grade (K2SO4) (mg/L) Tonnes Equivalent SOP/ (K2SO4) (mg/L)

Figure 1: Lake Throssell Investigation Locations

The Exploration Target's future quantity and grade are purely hypothetical. There hasn't been enough research to come up with a Mineral Resource estimate.

Further exploration may or may not result in the estimation of a Mineral Resource.

SUMMARY OF EXPLORATION PROGRAMS AT LAKE THROSSELL SO FAR, THE FOLLOWING PROGRAMS HAVE BEEN IMPLEMENTED:

Drilling with a Lake Surface Hand Auger – 16 holes (December 2019); Gravity Survey – 200 km of survey (May & August 2020); Heli-Rotary Auger Drilling – 26 holes (August 2020); and 50-hole air-core drilling – on-going (due to be completed in late February 2021).

DRILLING AND SAMPLING WITH A HAND AUGER

In December 2019, a preliminary lake surface auger program was completed to determine the brine grade in shallow lake sediments. A total of 16 auger holes with a depth of up to 1.2m is completed.

The holes found a typical lake surface sequence of gypsum, silt, and clay, with brine at around 0.3 meters below ground level (bgl). About 0.3m and the end-of-hole, brine samples were taken from each hole.

The highest result was 6,660mg/L potassium (14,800mg/L SOP equivalent) in the brine study, suggesting the presence of high-grade SOP in the lake surface. www.skillings.net | 39

GLOBAL

DRILLING AND SAMPLING WITH A ROTARY AUGER

The program was completed in July 2020 with the use of a heli-rotary auger rig that targeted the top sequence of potentially trench-able lake surface sediments to a maximum depth of 10 meters.

The software used 26 drill holes to collect deeper brine samples and core samples for porosity testing around the entire playa-lake floor.

Figure 1 shows the positions of the drill holes. In the top 5 meters, the program encountered gypsum-dominated sandy silt and clay. The gypsum layers were up to 0.2m thick, and they were often correlated with strong to excellent brine in-flow rates, implying that these zones were more permeable.

Three holes had minor sand and gravel layers, with one (LTAG19) containing a clay/silt backed sand interval of at least 1.3m with rounded pebbles. Below 5m, a clay-dominated series with less gypsum and rising density is present.

Figure 2: Gravity Survey Anomaly

Figure 1 depicts the collar sites, while Appendix 1 contains the brine assays and related geological details.

GEOPHYSICAL GRAVITY SURVEY

In May 2020, a preliminary ground gravity survey was completed, followed by an infill survey in August 2020, with the aim of identifying drilling targets within the palaeovalley system as a first step toward identifying a palaeochannel basal aquifer to target with potential output bores.

The surveys included 1040 stations spaced approximately 200 meters apart on traverses perpendicular to the palae40 | SKILLINGS MINING REVIEW April 2021

ovalley's assumed alignment. Gridding the Bouguer anomaly and regional separation from the Bouguer anomaly were used to create a residual gravity anomaly that is thought to reflect the large palaeovalley geometry.

The gravity highs are well associated with mapped outcropping Paterson as compared to established geology.

Within the Throssell palaeovalley system, formation and gravity lows are found within areas of low-lying regolith cover, providing trust in the regional model and a general understanding of comparative palaeovalley in the region.

Two holes were planned as part of the program to measure the characteristics of the surficial series within the islands (LTAG04 and LTAG05). Drilling and brine analysis have confirmed a lack of brine flow, implying that these areas have lower permeability and lower grade brine.

Throughout the drilling process, core samples were collected in Lexan tubes for laboratory sampling and analysis of porosity and permeability.

During the program, brine samples were collected by bailing the hollow stem of the auger at a known interval to provide a representative sample.

From the end-of-hole to around 0.3m below ground level, brine was commonly found. The rotary auger program's brine

analysis yielded grades of up to 6,520 mg/L potassium (14,500 mg/L SOP equivalent), with an average of 5,070 mg/L potassium (11,300 mg/L SOP equivalent), which are comparable to the hand auger brine analysis. Appendix 1 contains a summary of collar positions, hole depths, encountered geology, and brine analysis.

DRILLING WITH AN AIR CORE

The air-core drilling program began in late November to test aquifer targets identified by the gravity survey at the base of the palaeovalley series. The palaeovalley's deepest sections are thought to be the most promising for sand and gravel aquifer sequences deposited in a palaeochannel climate.

The drill program was delayed due to rainy weather, with 16 holes drilled prior to a weather break on December 21st for a total of 1,806m to a maximum depth of 130m, according to an ASX announcement dated December 21st, 2021.

The completed holes are in the northern portion of the central tenement E38/3065, and they have confirmed the existence of a large palaeovalley system about 100 meters deep with a range of deep aquifer targets of varying thickness.

SUMMARY OF GEOLOGICAL INFORMATION

Table 1 gives a rundown of the geology encountered so far on the project.

Other lakes and palaeovalley sequences in the area have similar geology. A gypsum-dominated evaporite surface is

overlain by clayey-dominated sequences with occasional thin granular and concrete zones. These are on top of a thick sequence of stiff lacustrine clay, which serves as a regionally confining aquitard with very low vertical hydraulic

TABLE 1: CURRENT INTERPRETED GEOLOGICAL STRATIGRAPHY AT LAKE THROSSELL Stratigraphic Layer

Assumed Age

Lithological Description

Range in Thickness

Aquifer Potential

Lake Surface

Recent

Saturated Evaporitic sand and gravel in a silty matrix, Evaporites up to 20mm in size

2-5m

High

Alluvial Clay

Quaternary

Soft sandy brown clay with minor fine to medium grained sand, occasional evaporites

5-20m

Low

Lacustrine Clay

Neogene/ Palaeogene

Stiff lacustrine clay with minor interbeds of fine sand and calcrete

11-80m

Non-aquifer, Aquiclude

Fluvial Sediments

Eocene

Yellow to green fine to medium grained sand with intermixed clay and silt

2-17m

Moderate

Glacial fluvial Sediments

Permian

Sub-rounded to sub-angular mixed lithic gravel at base of palaeovalley fill sequence common throughout the area

1-11m

Low to Major

Saprolite

Permian / Very fine to fine grained sandstoneProterozoic mudstone within saturated silt matrix

3-22m

Low to Moderate

The program's brine analysis revealed that the basal sediments contain brine with a similar composition and grade to the surficial sediments, with an average brine grade of 4,386 mg/L potassium (9,780 mg/L SOP equivalent) to date, according to an ASX announcement dated January 22, 2021.

The latest and extended drill program, consisting of 50 holes, is scheduled to be completed by the end of February, providing further evidence of the geology and brine grade distribution on the E38/3065 tenement's western and central ends.

Figure 3: Schematic cross section of the palaeochannel sequence at Lake Throssell

www.skillings.net | 41

GLOBAL

CHARACTERISTICS OF BRINE

The popular hand auger and heli-rotary auger drill programs yielded enough samples to map brine potassium concentration across the lake surface.

The average potassium concentration in the surficial sediments is approximately 5,118 mg/L (11,410 mg/L equivalent SOP), with the lowest concentration at LGA26 of 2,810 mg/L (6,270 mg/L equivalent SOP) and the maximum concentration at LT016 of 6,660 mg/L (14,850 mg/L equivalent SOP).

the unconsolidated fluvial glacial deposits.

Figure 3 depicts a schematic cross-section of Lake Throssell.

conductivity, separating the palaeovalley's upper and lower sediments hydraulically.

A low-energy fluvial system of silty fine sand with clay bands, with occasional layers of less silty sand, lies underneath the lacustrine clay series.

Table 1 shows the aquifer potential of each stratigraphic layer to provide an indication of brine abstraction potential; however, test pumping of each of the aquifer zones is needed to validate their potential.

Trenching can be used to target the lake's surface in the future, while development bore goals include Eocene fluvial sediments, Permian glacial fluvial sediments, and saprolite.

The Paterson Formation, of Permian age, is present in the base of the palaeovalley as unconsolidated glacial fluvial sediments of mixed gravel, sometimes with a silty matrix, at the base of this low energy fluvial system of Eocene age. A saprolite zone of weathered bedrock, including Permian and Proterozoic sandstone, quartzite, and mudstone, lies underneath

Table 1: Current Interpreted Geological Stratigraphy at Lake Throssell

The deep air-core brine analysis software is currently restricted to Lake Throssell's northern reaches. Importantly, the potassium concentration and brine characteristics found so far are similar to those found at the lake's surface, suggesting a continuous brine pool with slight dilution at depth. With a low Na:Mg ratio and a high SO4 concentration, the brine chemistry is favorable for solar evaporative concentration and lower waste salts. The findings also indicate that the down-hole potassium grade profile inside individual drill holes is fairly stable, with some slight potassium reduction and magnesium increase.

Table 2 shows the main average characteristics of the brine based on the sampling done so far at Lake Throssell.

Table 2: Key Average Brine Characteristics of Lake Throssell Note – all concentrations based on average of all samples obtained to date and not spatially weighted. SOP is calculated from k x 2.23.

TABLE 2: KEY AVERAGE BRINE CHARACTERISTICS OF LAKE THROSSELL K (mg/L)

SOP Equiv.

(K2SO4) (mg/L)

Mg (mg/L)

Na (mg/L)

SO4 (mg/L)

Total Dissolved solids (mg/L)

K:Mg

Na:Mg

Surficial Sediments

5,118

11,410

7,504

79,951

21,500

254,602

0.7

10.9

Deep Palaeovalley Sediments

4,386

9,780

8,240

76,755

21,450

255,365

0.5

9.3

Stratigraphy

42 | SKILLINGS MINING REVIEW April 2021

SPECIFIC YIELD AND POROSITY

Total porosity determines the total amount of brine in a deposit, while porosity is made up of particular retention (also known as retained porosity) and specific yield (also known as effective porosity). The percentage amount of water that can be drained by gravity from a saturated volume of sediment is known as specific yield.

available, but additional modifying factors around lake recharge effects must be calculated before quantification. Core plugs collected from the Lexan tubes during the heli-rotary auger program were used to calculate total porosity and precise yield in the laboratory.

The percentage volume retained under gravity drainage is known as precise retention. The basic yield is a ratio that is used to determine how much of a brine deposit can be drained.

The saturated centrifuge method was used to analyze core plugs of lake surface sediments taken at Corelabs in Perth.

With an average total porosity of 38.1 percent and an average individual yield of 17.2 percent, the findings show that the sequence is relatively consistent in the profile. Table 3 summarizes the findings.

In addition to the specific yield, portions of specific retention in the lake surface are

Table 3: Total Porosity and Specific Yield Estimates

TABLE 3: TOTAL POROSITY AND SPECIFIC YIELD ESTIMATES

Sample depth (m)

Total Porosity (%)

Specific Yield (%)

LTAG01

1.8

33.9

23.7

LTAG01

3.3

36.0

19.4

LTAG06

2.5

34.6

16.8

LTAG06

4.0

36.2

17.2

LTAG06

4.8

36.4

17.0

LTAG14

2.5

36.4

16.0

LTAG14

1.8

26.4

9.7

LTAG14

3.3

30.0

10.8

LTAG14

6.3

34.6

23.2

LTAG20

2.5

48.8

21.8

LTAG20

1.8

39.4

16.2

LTAG20

4.0

35.7

16.7

LTAG20

5.5

39.9

18.7

LTAG24

5.5

30.6

16.0

LTAG26

2.5

49.3

19.6

LTAG26

1.8

45.3

13.3

LTAG26

4.0

47.3

17.6

LTAG26

5.5

45.6

16.7

Minimum

26.4

9.7

Maximum

49.3

23.7

Average

38.1

17.2

Hole Id

THE EXPLORATION TARGET'S FOUNDATION

Figure 4: Potassium concentration at the lake surface

The Exploration Goal is a prediction of a mineral deposit's exploration potential.

The Exploration Target calculates a lower and upper estimate for a brine-hosted deposit by varying the geological extent, www.skillings.net | 43

GLOBAL

TABLE 4: LAKE THROSSELL EXPLORATION TARGET

Stratigraphic Unit

Thickness (m)

Area (Km2)

Sediment Volume (106 m3)

Specific Yield (Sy)

Drainable Brine (106 m3)

K Grade (mg/L)

K Mass (Mt)

Grade Equivalent SOP/ K2SO4 (mg/L)

Mass Equivalent SOP/ K2SO4 (Mt)

Lower Estimate Lake Surface

4

184

736

0.14

103

4,692

0.5

10,460

1.1

Alluvial Clay

10

184

1,863

0.08

147

4,596

0.7

10,250

1.5

Lacustrine Clay

60

263

15,750

0.03

473

3,912

1.8

8,720

4.1

Fluvial Sediments

5

53

264

0.10

26

3,755

0.1

8,370

0.2

Glacial Fluvial

5

62

310

0.15

47

3,780

0.2

8,430

0.4

Saprolite

2

234

468

0.05

23

3,993

0.1

8,610

0.2

86

979

19,363

0.55

819

3,993

3.4

8.90

7.5

Total Lower Estimate

Upper Estimate Lake Surface

6

193

1,161

0.17

197

5,045

1.0

11.25

2.2

Alluvial Clay

15

193

2,902

0.10

290

5,045

1.5

11.25

3.3

Lacustrine Clay

70

365

25,515

0.05

1276

4,324

5.5

9.64

12.3

Fluvial Sediments

10

68

680

0.15

102

4,209

0.4

9.39

1.0

Glacial Fluvial

10

248

2,480

0.20

496

4,268

2.1

9.52

4.7

Saprolite

10

366

3,660

0.10

366

4,279

1.6

9.54

3.5

121

1,433

36,397

0.77

2,727

4,394

12.1

9.80

27.0

Total Upper Estimate

drainable porosity, and brine grade within acceptable bounds using the information provided in this study. A combination of the geological description in Table 1, the gravity model, the mapped outcropping geology, and the conceptual model of regionally defined palaeovalley systems is used to assess the geological extent (area and thickness).

The lake surface has been cleared of islands, and the amount of alluvial clay sediment has been calculated. The brine grade range has been factored for the pending tenements where no data is currently available and is based on the 44 | SKILLINGS MINING REVIEW April 2021

average brine grades as shown in Table 2 for the upper and lower estimates.

Drainable porosity was derived from the core analysis in Table 4 from unique yield for the surface sediments, while appropriate estimates based on the lithological descriptions encountered during deep air-core drilling were given for all other stratigraphic units (as recommended by the AMEC Brine Guideline).

The Exploration Goal includes the granted tenement E38/3065 as well as the nearby pending tenements that are currently being applied for. Since no work on the

pending tenements has been done, all figures are focused on extrapolation from the work completed on E38/3065. Trigg sees no reason why these tenements will not be issued in the future at the time of publishing.

Due to the relatively unknown existence of the geology, brine grade, and precise yield in the pending tenements, the Exploration Goal has a wide range. In contrast, the granted tenement, especially the lake surface on the granted tenement, is relatively well constrained.

The Exploration Target's future quantity and grade are purely hypothetical. There

ADVERTISING INDEX hasn't been enough research to come up with a Mineral Resource estimate. Further exploration may or may not result in the estimation of a Mineral Resource.

Table 4: Lake Throssell Exploration Target Note: Errors may be present due to rounding, approximately 1.8 Mt in the lower estimate and 8.2 Mt in the upper estimate of equivalent SOP is present in Exploration License Applications E38/3544, E38/3483, E38/3458 and E38/3537. SOP is calculated by multiplying potassium by 2.23.

WORK IN THE FUTURE

The air-core drilling program is expected to be completed in February 2021, with additional brine analysis and soil laboratory sample analysis to follow, with the aim of estimating a maiden Inferred Mineral Resource for the deposit.

Subject to permitting, a lake surface test pitting and trenching program is planned for Q2 2021, followed by a water well drilling and testing program for H2 2021

to validate aquifer properties of each of the stratigraphic units.

Azcon ............................................ 45

These are the next steps in advancing the mineral resource estimate's confidence level toward an Indicated Mineral Resource, and they will guide future economic studies.

CR Meyer....................................... 23

Exploration activities will be extended into these areas until the tenements under application have been granted, in order to measure the extents of the Exploration Goal.

Barr Engineering............................ 28 FloLevel Technologies.................. 13 Fryberger........................................ 28 General Equipment Supplies........ 05 Global Minerals Engineering........ 45 Golder Associates......................... 45 Halcor............................................ 09 Lake Superior Chapter ISEE.......... 45 Malton Electric Company............. 45 ME Elecmetal................................ 07 Minnesota Power.......................... 17 Mielke Electric Works................... 27 Naylor Pipe.................................... 48 Neo Solutions................................ 15 Northern Engine & Supply............. 45 Optiro............................................. 02 SEH................................................ 19 TDS6.............................................. 17

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STATISTICS

GLOBAL CRUDE STEEL OUTPUT DECREASES BY 0.9% IN 2020

G

lobal crude steel production reached 1,864.0 million tonnes (Mt) for the year 2020, down by 0.9% compared to 2019. Asia produced 1,374.9 Mt of of crude steel in 2020, an increase of 1.5% compared to 2019. China’s crude steel production in 2020 reached 1,053.0 Mt, up by 5.2% on 2019. China’s share of global crude steel production increased from 53.3% in 2019 to 56.5% in 2020.

India’s crude steel production for 2020 was 99.6 Mt, down by 10.6% on 2019.

Japan produced 83.2 Mt in 2020, down 16.2% on 2019. South Korea produced 67.1 Mt, down 6.0% on 2019.

The EU produced 138.8 Mt of crude steel in 2020, a decrease of 11.8% compared to 2019. Germany produced 35.7 Mt of crude steel in 2020, down 10.0% on 2019.

In the CIS, production was 102.0 Mt in 2020, up by 1.5% on 2019. Russia is estimated to have produced 73.4 Mt in 2020, up 2.6% on 2019. Ukraine produced 20.6 Mt in 2020, down 1.1% on 2019. Crude

steel production in North America was 101.1 Mt in 2020, down 15.5% on 2019. The United States produced 72.7 Mt in 2020, down 17.2% on 2019. The Middle East produced 45.4 Mt of crude steel in 2020, an increase of 2.5% on 2019. Iran is estimated to have produced 29.0 Mt in 2020,

up 13.4% on 2019. Annual crude steel production for South America was 38.2 Mt in 2020, a decrease of 8.4% on 2019.

Brazil produced 31.0 Mt in 2020, down by 4.9% compared to 2019.

Turkey’s crude steel production for 2020 was 35.8 Mt, up by 6.0% on 2019. Africa produced 17.2 Mt of crude steel in 2020, the same as the 2019 production figure.

Oceania produced 6.1 Mt of crude steel in 2020, down 1.4% on 2019.

The World Steel Association (worldsteel) is one of the largest and most dynamic industry associations in the world, with members in every major steel-producing country. worldsteel represents steel producers, national and regional steel industry associations, and steel research institutes. Members represent around 85% of global steel production.

The 2020 figures in this press release are preliminary and are subject to change.

For antitrust reasons worldsteel no longer produces a monthly global capacity utilisation ratio. Information on capacity can be found on the OECD website.

46 | SKILLINGS MINING REVIEW April 2021

CRUDE STEEL PRODUCTION DECEMBER 2020. Source – World Steel Association COUNTRY

DEC 2020

DEC 2019

%CHANGE DEC-20/19

2020

% CHANGE

COUNTRY

DEC 2020

DEC 2019

%CHANGE DEC-20/19

2020

% CHANGE

Austria

530 e

521

1.7

6 665

-10.2

Mexico

1 550 e

1 361

13.9

16 854

-8.3

Belgium

359

505

-28.9

6 119

-21.1

United States

6 434

7 292

-11.8

72 690

-17.2

Bulgaria

40 e

43

-6.3

485

-14.3

Croatia

15 e

7

101.9

47

-32.0

North America

9 107

9 801

-7.1

101 119

-15.5

388

326

19.0

3 651

-21.4

2 886

2 462

17.2

30 971

-4.9

Argentina

Czech Republic

408

359

13.7

4 465

0.6

Finland

339

186

81.8

3 500

0.8

France

1 155

918

25.7

11 596

-19.8

Chile

105 e

109

-3.5

1 165

2.8

Germany

3 137

2 835

10.6

35 658

-10.0

Colombia

110 e

97

13.5

1 126

-15.5

94

17.0

1 430

5.9

Ecuador

50 e

50

0.5

477

-21.5

164

-44.8

1 513

-14.5

Paraguay

3 e

3

-4.4

22

-17.5

1 404

6.9

20 200

-12.9

Peru

105 e

91

15.8

671

-45.4

Uruguay

5 e

5

-7.2

47

-24.6

Venezuela

2 e

0

315.8

29

-43.6

3 654

3 143

16.3

38 158

-8.4

Egypt

994

574

73.0

8 229

13.4

Libya

73

63

16.2

495

-18.4

297

-1.5

3 877

-37.0

934

45.5

12 600

-10.1

2 224

19.6

29 030

13.4

85

186

-54.3

1 218

-52.4

Saudi Arabia

440

664

-33.8

7 775

-5.1

United Arab Emirates

280

297

-5.8

2 722

-18.2

3 465

3 371

2.8

40 745

2.7

China

91 252

84 692

7.7 1 052 999

5.2

India

9 796

9 383

4.4

99 570

-10.6

Japan

7 526

7 785

-3.3

83 194

-16.2

South Korea

5 952

5 880

1.2

67 121

-6.0

380 e

261

45.6

3 743

13.3

1 700 e

1 693

0.4

20 570

-6.3

Thailand

410 e

357

14.8

4 420

4.1

Vietnam

1 600 e

1 876

…

19 500

11.6

118 616

111927

6.0

1 351 117

1.6

473

449

5.4

5 490

0.0

59

57

3.8

586

-12.2

533

506

5.2

6 076

-1.4

Greece Hungary Italy

110 e 90 1 500 e

Luxembourg

113

97

17.3

1 886

-11.0

Netherlands

540

521

3.6

6 054

-9.1

Poland

680 e

642

5.9

7 890

-11.9

Slovenia

50 e

34

45.0

570

-8.5

Spain

891

765

16.4

10 934

-19.5

Sweden

410

376

8.9

4 409

-6.6

United Kingdom

710 e

550

29.0

7 185

-0.5

Other E.U. (28) (e)

680 e

642

6.0

8180

-12.1

10 665

10.2

138 786

-11.8

European Union (28) 11 757 Bosnia-Herzegovina

75

70

6.5

759

-5.2

Macedonia

33

24

35.9

180

-24.8

Norway

41

40

3.2

624

0.5

Serbia

119

158

-24.8

1 456

-24.6

Turkey

3 403

2 893

17.7

35 763

6.0

Other Europe

3 671

3 185

15.3

38 782

3.9

Byelorussia

200 e

225

-11.2

2 490

-5.0

Kazakhstan

355 e

374

-5.0

3 835

-7.2

45 e

35

28.2

465

18.7

Russia

6 110 e

6 159

-0.8

73 400

2.6

Ukraine

1 906

1 561

22.1

20 616

-1.1

84

-4.8

950

42.6

Moldova

Uzbekistan

80 e

C.I.S. (6)

8 696

8 438

3.1

101 756

1.5

Canada

1 070 e

1 092

-2.0

11 078

-14.1

20 e

22

-8.5

181

-21.4

El Salvador

8 e

8

-5.7

79

-22.5

Guatemala

25 e

26

-3.9

237

-22.6

Cuba

Brazil

South America

South Africa

292 e

Africa

1 359

Iran

2 660 e

Qatar

Middle East

Pakistan Taiwan, China

Asia Australia New Zealand Oceania

Total 64 countries (1) 160 858

151 969

5.8 1 829 140

-0.9

(1) - HADEED only. (2) - the 64 countries included in this table accounted for approximately 99% of total world crude steel production in 2019. e - estimated

www.skillings.net | 47