Magna Mining Announces the Signing of a Toll Milling Agreement for the 109 Footwall Surface Bulk Sample at the Crean Hill Project

Rhea-AI Summary

Magna Mining announced a Toll Milling Agreement with Glencore Canada for processing a 20,000-tonne surface bulk sample from the 109 Footwall Zone at the Crean Hill Project in Sudbury, Ontario. This agreement aims to advance the Crean Hill Project by evaluating metallurgical performance and corroborating resource estimates. This processing will occur at Glencore's Strathcona Mill and is expected to conclude in Q3 2024. Recent drilling results have shown promising mineralization, including 2.9% Cu, 0.9% Ni, and 9.5 g/t Pt+Pd+Au over 6.3 meters. This initiative follows a Definitive Offtake Agreement with Vale Canada, excluding the 109 FW Zone. The surface work will commence in June and will be funded from cash reserves.

Positive

• Signed Toll Milling Agreement with Glencore Canada for 109 FW Zone surface bulk sample.
• Processing 20,000 tonnes of mineralized rock at Glencore's Strathcona Mill.
• Recent drilling results show significant mineralization: 2.9% Cu, 0.9% Ni, and 9.5 g/t Pt+Pd+Au over 6.3 meters.
• Surface work and toll milling to be funded from existing cash reserves.
• Agreement enables further evaluation of metallurgical performance and resource estimates.
• Project advances in a capital-efficient and environmentally responsible manner.

Negative

• The agreement only covers the surface bulk sample, not full-scale production.
• Potential delays in the project schedule if unexpected issues arise during surface work or processing.
• Uncertainty regarding the assay results of additional pending drill holes.
• Dependence on third-party facilities (Glencore's Strathcona Mill) could introduce operational risks.

Sudbury, Ontario--(Newsfile Corp. - June 4, 2024) - Magna Mining Inc. (TSXV: NICU) (OTCQB: MGMNF) (FSE: 8YD) ("Magna" or the "Company") is pleased to announce the signing of a Toll Milling Agreement (the "Agreement") with Glencore Canada Corporation ("Glencore") for the surface bulk sample of the 109 Footwall ("FW") Zone at the Crean Hill Project.

Jason Jessup, CEO of Magna Mining stated, "The signing of a toll milling agreement with Glencore to process a surface bulk sample from the 109 FW Zone at Crean Hill is the next step in advancing our Crean Hill Project. Magna has the advantage of having two permitted projects in the Sudbury region and this is yet another example of how we can work with the local major mining companies to advance our projects. This bulk sample will allow us to evaluate the metallurgical performance and reconcile against our resource estimate, further de-risking our project as we move towards underground advanced exploration at Crean Hill."

The current agreement with Glencore is for the 109 FW Zone surface bulk sample only. Magna intends to ship approximately 20,000 tonnes of mineralized rock from the near surface portion of the 109 FW Zone. The material will be processed separately through Glencore's Strathcona Mill and produce a bulk concentrate. This will provide important information on base and precious metal recoveries, allowing Magna to better plan underground advanced exploration and future commercial production. Recently, a series of short diamond drill holes were completed in the area of the surface bulk sample, and on May 8, 2024, Magna reported assay results from the first eight holes of this program. These results included hole MCB-24-029 which intersected 2.9% Cu, 0.9% Ni and 9.5 g/t Pt+Pd+Au over 6.3 metres starting at surface (see news release). This drilling will be incorporated into the surface bulk sample design, as well as additional drilling for which assays are pending.

On March 27, 2024, Magna announced the signing of a Definitive Offtake Agreement for advanced exploration at Crean Hill with Vale Canada ("Vale") (see news release). The Vale agreement excluded the 109 FW Zone as Magna wanted to explore other processing options to improve recoveries for the copper-PGM rich mineralization in this zone. The signing of the agreement with Glencore demonstrates the options for Magna to grow their mining business in the Sudbury region, in a capital efficient and environmentally responsible manner.

Magna plans on awarding the contract for the surface bulk sample work in the coming days and intends to have contractors mobilize to site in June. It is estimated that the surface work will take 4-6 weeks and the toll milling will be completed in Q3 2024. The work will be funded from cash in the treasury.

Qualified Person
The technical information in this press release has been reviewed and approved by David King, M.Sc., P.Geo. Mr. King is the Senior Vice President, Technical Services for Magna Mining Inc. and is a qualified person under Canadian National Instrument 43-101.

About Magna Mining Inc.
Magna Mining is an exploration and development company focused on nickel, copper and Platinum Group Metals (PGM) projects in the Sudbury Region of Ontario, Canada. The Company's flagship assets are the past producing Shakespeare and Crean Hill Mines. The Shakespeare Mine is a feasibility stage project which has major permits for the construction of a 4,500 tonne per day open pit mine, processing plant and tailings storage facility and is surrounded by a contiguous 180km² prospective land package. Crean Hill is a past producing nickel, copper and PGM mine with a technical report dated July 2023. Additional information about the Company is available on SEDAR (www.sedarplus.ca) and on the Company's website (www.magnamining.com).

For further information, please contact:

Jason Jessup
Chief Executive Officer

or

Paul Fowler, CFA
Senior Vice President
Email: info@magnamining.com

Cautionary Statement
This press release contains certain forward-looking information, or forward-looking statements as defined in applicable securities laws. Forward-looking statements are not historical facts and are subject to several risks and uncertainties beyond the Company's control, including statements regarding the production at the Shakespeare and Crean Hill Mines, the economic and operational potential of the Shakespeare and Crean Hill Mines, potential acquisitions, plans to complete exploration programs, potential mineralization, exploration results and statements regarding beliefs, plans, expectations, or intentions of the Company. Resource exploration and development is highly speculative, characterized by several significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this press release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/211561

FAQ

What is the recent agreement between Magna Mining and Glencore Canada?

Magna Mining signed a Toll Milling Agreement with Glencore Canada to process a 20,000-tonne surface bulk sample from the 109 Footwall Zone at the Crean Hill Project.

What will Magna Mining process at Glencore's Strathcona Mill?

Magna Mining will process approximately 20,000 tonnes of mineralized rock from the 109 Footwall Zone to produce a bulk concentrate.

When is the toll milling of the surface bulk sample expected to be completed?

The toll milling is expected to be completed in Q3 2024.

What are the recent drill results from the 109 Footwall Zone?

Recent drill results include 2.9% Cu, 0.9% Ni, and 9.5 g/t Pt+Pd+Au over 6.3 meters.

How will the surface work and toll milling be funded?

The surface work and toll milling will be funded from Magna Mining's cash reserves.

What is the significance of the Toll Milling Agreement for Magna Mining?

The agreement allows Magna Mining to evaluate the metallurgical performance of the 109 Footwall Zone and corroborate resource estimates, advancing the Crean Hill Project.

What was the previous agreement Magna Mining signed related to the Crean Hill Project?

Magna Mining previously signed a Definitive Offtake Agreement with Vale Canada for advanced exploration at Crean Hill, excluding the 109 Footwall Zone.