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Twin Metals Copper-Nickel-Platinum Group Metals project, Minnesota, USA

Project:

Twin Metals Copper-Nickel-Platinum Group Metals project

Status:

Development

Location:

Minnesota, USA

Ownership:

100% owned by Antofagasta plc (LSE: ANTO)

Royalty:

2.4%(1) NSR on copper and nickel that covers approximately 18% of the resources in Maturi and Maturi Southwest Deposits

As of November 30, 2020, Antofagasta reported the following reserves and resources at Twin Metals:

Maturi – Reserves (100% basis)

Category Tonnes (millions) Copper Grade (%) Contained Copper (bn lbs) Nickel Grade (%) Contained Nickel
(bn lbs)
 
Proven 130 0.65 1.7 0.21 0.5  
Probable 354 0.59 4.2 0.19 1.3  
Proven + Probable 484 0.60 5.8 0.19 1.9  
             
Maturi Southwest – Reserves (100% basis)          
             
Category Tonnes (millions) Copper Grade (%) Contained Copper (bn lbs) Nickel Grade (%) Contained Nickel
(bn lbs)
 
Proven - - - - -  
Probable 43 0.48 0.4 0.17 0.1  
Proven + Probable 43 0.48 0.4 0.17 0.1  

Maturi – Resources (100% basis)

Category Tonnes (millions) Copper Grade (%) Contained Copper (bn lbs) Nickel Grade (%) Contained Nickel
(bn lbs)
Measured 308 0.63 3.9 0.20 1.2
Indicated 822 0.58 9.5 0.19 3.0
Inferred 531 0.49 5.2 0.16 1.7
           
Maturi Southwest – Resources (100% basis)      
           
Category Tonnes (millions) Copper Grade (%) Contained Copper (bn lbs) Nickel Grade (%) Contained Nickel
(bn lbs)
Measured - - - - -
Indicated 103 0.48 1.0 0.17 0.3
Inferred 32 0.43 0.3 0.15 0.1

(1)The total royalty payable is ½ of the U.S. Government royalty, which was most recently quoted at 4.8%. The U.S. government royalty is subject to change, which would change the royalty payable to Nova. The royalty currently payable to Nova is calculated in the following formula: 4.8% * ½ * 1/3 * ore mined * grade mined * applicable prices of copper and nickel. The royalty is calculated on the basis of contained metal in ore by multiplying ore mined by the grade of the material – and does not subtract the usual deductions due to recoveries, payabilities, TC/RCs, and other applicable operating costs. The 1/3 multiplier in the royalty calculation formula is the mechanism by which those usual costs are captured. In the Technical Report, copper reserves are calculated using recoveries of 94.0% and payabilities of 76.4% and nickel reserves are calculated using recoveries of 60.8% and payabilities of 70.8%.