NICKEL-COPPER-PGM STUDY: Eagle’s Nest PEA based on underground mining, milling

ONTARIO - Toronto-based Noront Resources says its Eagle's Nest nickel-copper-platinum group metals project, Eagle's Nest at McFauld's Lake in the James Bay Lowlands, might have development costs of between $600 million and $625 million. The preliminary economic assessment outlined an underground mine with a life of 11 years producing 1.0 million tonnes of ore annually.

Numbers in the PEA indicate that Eagle's Nest could generate an after-tax NPV at a 6% discount of $540 million. The after-tax IRR would be greater than 20%. Operating costs are estimated to be between $120 and $130 per tonne or $3.00/lb nickel equivalent.

Wes Hanson, CEO of Noront said, "The PEA demonstrates a robust return on investment and mitigates the perceived risks of a stand-alone nickel, copper sulphide mine and mill complex in the Ring of Fire by reducing the environmental footprint of the proposed development and utilizing proven technology to address the challenging environment. The project offers a number of business opportunities for the First Nation communities of Marten Falls and Webequie, the two communities closest to the project."

To mitigate the environmental impact of the project, the PEA proposes locating the mill and all major facilities underground. No tailings pond would be created; rather the tails would remain underground as cemented fill. A slurry pipeline will transport concentrates from the site to a filter plant located near Webequie. Initial mine development will be by ramp, followed by a winze to access the lower levels of the deposit.

Follow the Eagle's Nest project as it moves forward at www.NorontResources.com.