Mmg : a newcomer in Canada: Zinc Strategy Project History

• MMG : a newcomer in Canada: Zinc Strategy

• Project History

• Major decisions made in 2010 and 2011

• 2012 Major Tasks

• Overview of the Izok Corridor Project

• High Lake
• Izok
• All season Road
• Port and Shipping

• Zinc and Copper Concentrate from both Izok and High Lake as the base business case: both needed for an economic project

• One plant only for both mines: Mine and Mill at Izok, tailings at Izok

• Satellite Mine at High Lake, crusher only no plant

• Port at Grays Bays, storage shed, fuel storage and camp

• All-weather Road – from Grays Bay to High Lake and Izok sites : 350 km

• Transport concentrate by truck from Izok to Grays Bay. Concentrate from both High Lake and Izok ore

• Trucks pick up crushed High Lake Ore on the way back south and bring to Izok for processing

• Ships at the port from early to mid August to October only

• NO year round shipping

• Assessed all assets-sale of Ulu and Lupin to Elgin Mining in July 2011

• Commitment to continue exploration in other Nunavut properties

• Transportation Options Review

• PFS Completed

• MMG Kugluktuk Office and Sponsorship Programs

• Built a Core Team in Canada: engineering, consultation, environmental, H&S in addition to the geology team.

• Re-Engagement with NIRB

• 2012 Programs: baseline, geotech, metallurgy, FS

• Potential construction start Q3 2015

• Potential first ore processed Q1 2018

• Potential first concentrate shipped August 2018

• Mine Life (Izok) 12 years

• Metal Production

• Zn 2,038 kt (approx. 180 kt pa)
• Cu 554 kt (approx. 50 kt pa)
• Pb 135 kt (approx. 12 kt pa)
• Ag 33.3 Moz (approx 2.8 Moz pa)
• Au 201 koz (approx 17 koz pa)

HIGH LAKE MINE

• HIGH LAKE MINE

• Two Open Pits
• 3 Mt ore mined over 6 years
• Moderate grade sulphide ore, rich in zinc, with low copper and neglible lead grades
• One Underground Mine
• 4 Mt ore mined over 9 years
• Lower grade than open pit, moderate zinc and copper grades and negligible lead

Primary and possibly secondary crushing

• Primary and possibly secondary crushing
• Maintenance facilities
• Warehouse and Laydown Areas
• Fuel storage
• Explosives storage
• Ventilation fans
• Dewatering infrastructure
• Electric power distribution infrastructure

8

• 8

Izok Mine

• Izok Mine

• 1 Open Pit, mined in 3 main phases
• 13 Mt ore mined over 10 years
• High grade sulphide ore, rich in zinc, with moderate copper and lead grades
• 1 Underground Mine
• 1 Mt ore mined over 4 years
• Lower grade than open pit, moderate zinc and copper grades and negligible lead

ROAD TRAFFIC- PFS

• ROAD TRAFFIC- PFS

• Assumed 330 days per year operation (weather, caribou)
• Concentrate and Ore Movement (120 tonne capacity)
• 11 truck-trips per day at 18 hours each round trip
• Diesel -tankers (60 tonnes capacity)
• 3 truck-trips per day
• Containers and Equipment-3 container tractor-trailers
• 3 truck-trips per day

• Convoys of two to five trucks being studied

• -PFS