Magna Mining Awards the Contract for Advanced Exploration at the Crean Hill Project

Rhea-AI Summary

Magna Mining has awarded Aki-eh Dibinwewziwin Partnership (ADLP) the contract for advanced exploration at the Crean Hill Project. ADLP is a joint venture between Atikameksheng Anishnawbek, Wahnapitae First Nation, and Technica Mining. CEO Jason Jessup emphasized the importance of local partnerships for minimizing costs and fostering strong community relations.

The exploration will start with a 20,000-tonne bulk sample from the 109 Footwall Zone in June 2024, followed by drilling in July and processing at Glencore's Strathcona facility. Dewatering is set to begin in Q3 2024. Magna Mining is also updating its Mineral Resource Estimate and Preliminary Economic Assessment, expected by Q3/Q4 2024. These updates aim to enhance the project's economic viability by focusing on a higher-grade, lower-production underground mining operation.

Positive

• Awarded exploration contract to ADLP, a local joint venture, fostering community relations and minimizing costs.
• Initial bulk sample program to begin in June 2024, potentially accelerating project timelines.
• Dewatering of historic underground workings planned for Q3 2024, facilitating further development.
• Updating Mineral Resource Estimate and Preliminary Economic Assessment by Q3/Q4 2024, focusing on higher-grade, lower-production underground mining.
• Existing cash balance to fund initial capital required for the bulk sample program, reducing immediate financial pressure.

Negative

• Potential delays in dewatering or drilling could impact project timelines.
• Reliance on existing water treatment systems may pose environmental risks if not managed properly.
• Updating MRE and PEA may not significantly improve project economics, posing risks of investor dissatisfaction.
• High upfront capital costs for further development may stress financial resources if additional funding is required.

Sudbury, Ontario--(Newsfile Corp. - June 11, 2024) - Magna Mining Inc. (TSXV: NICU) (OTCQB: MGMNF) (FSE: 8YD) ("Magna" or the "Company") is pleased to announce the award of the Advanced Exploration ("ADEX") contract at the Crean Hill Project ("Crean Hill") to Aki-eh Dibinwewziwin Limited Partnership ("ADLP"). ADLP is a partnership between Atikameksheng Anishnawbek, Wahnapitae First Nation, and Technica Mining.

Jason Jessup, CEO of Magna Mining, stated, "We are confident in our decision to award the ADEX mining at Crean Hill to ADLP. We have been in discussions with ADLP for several months and they have demonstrated the culture and expertise that meets our expectations. Additionally, working with a local mining contracting company on our project will help to minimize costs and re-enforces our conviction to build strong relationships with our local stakeholders while contributing to the economic growth in the Sudbury region."

Gimaa Nootchtai of Atikameksheng Anishnawbek commented, "Magna Mining has shown its commitment to respect and promote First Nations involvement in its mining operations in the Sudbury Basin. They have provided economic reconciliation to our Nation initially by awarding a contract to our drilling company Bagonea'an - JS Drilling Inc., and we are ecstatic that Magna Mining has now awarded us this contract on the Crean Hill Project in conjunction with our partners Wahnapitae First Nation and Technica Mining. We appreciate Magna Mining's commitment to working with Atikameksheng Anishnawbek and we look forward to working with them on this exciting project as it will provide additional financial benefits, employment, and business opportunities for our Nation."

Chief Roque of Wahnapitae First Nation stated, "This contract with Magna Mining will have a tremendous impact on the growth and prosperity of ADLP and its partners. Once again, local First Nations will have direct input on the work being done on our traditional territories and we will finally benefit as equals from that work. We are grateful to Magna Mining for this opportunity, the acknowledgement it provides, and the financial benefits it will provide for many generations to come."

"As we continue to cultivate our partnership with Atikameksheng Anishnawbek and Wahnapitae First Nation under our recently formed Limited Partnership Aki-eh Dibinwewziwin (ADLP), I am truly excited that Magna Mining has selected ADLP as its contractor of choice for their Advanced Exploration," added Mario Grossi, CEO of Technica Mining. "From the very beginning, there was a true alignment in our core values and everyone shared the same vision, both technically and spiritually, which will undoubtedly guide us through successful Advanced Exploration and ultimately, commercial production. We look forward to sharing the positive impact this project will have for the Indigenous Communities actively involved in the project and the community at large as we work together to extract the critical minerals Canada needs to become leaders in the energy transition."

The initial phase of the ADEX mining program will consist of a surface bulk sample of approximately 20,000 tonnes from the 109 Footwall Zone. The mobilization and site preparation are scheduled to begin in June, with drilling and blasting commencing in July, followed by processing at Glencore's Strathcona facility (See news release dated June 4, 2024). Dewatering of the historic underground workings via the main shaft is planned to commence in Q3, allowing for the start of the portal on surface and underground ramp development later in 2024. Dewatering will be ongoing throughout the ADEX program and water will be treated through an existing water treatment system located off the Crean Hill property. The initial capital required to commence the surface bulk sample program at Crean Hill is expected to be funded from Magna's existing cash balance.

Mineral Resource Estimate and Updated PEA

Magna is currently in the process of updating the current National Instrument 43-101 compliant Mineral Resource Estimate ("MRE") for Crean Hill, which is expected to be completed in Q3 2024. The new MRE will include the more than 23,000 metres of diamond drilling that has been completed since Magna acquired Crean Hill in November 2022. The new MRE will also be used to publish an updated Preliminary Economic Assessment ("PEA") for Crean Hill, which is expected to be completed in Q3/Q4 2024. The updated PEA will use a higher cut-off grade compared to the current PEA (published by Stantec, July 2023) and will focus on evaluating the potential economics of a higher-grade, lower production rate, underground only mining operation. Ore selling/toll milling agreements for Crean Hill are already in place with Vale Base Metals and Glencore Canada Corporation, providing better assumptions on which to evaluate the potential economics in the PEA. The PEA will aim to maximise early mining revenues to help fund the mine development in the initial years of development and reduce the upfront capital that is required.

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 ADLP

Aki-eh Dibinwewziwin Limited Partnership (ADLP) is an Indigenous and Canadian-owned underground mine contracting limited partnership based in Sudbury. Atikameksheng Anishnawbek and Wahnapitae First Nation share a 51% ownership of ADLP and Technica Mining is the minority shareholder and operating partner. The name, Aki-eh Dibinwewziwin, was given jointly by elders and language keepers and means "to be owned by the earth". The limited partnership aims to make a real difference for Indigenous communities, ensuring they finally benefit from the mining activity taking place on their traditional territories.

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/212401

FAQ

What is Magna Mining's new contract for the Crean Hill Project?

Magna Mining awarded the advanced exploration contract to Aki-eh Dibinwewziwin Partnership for the Crean Hill Project.

When will the exploration at Crean Hill Project start?

The exploration will commence with site preparation in June 2024, followed by drilling in July.

What is the initial focus of the exploration at Crean Hill?

The initial phase includes a surface bulk sample of approximately 20,000 tonnes from the 109 Footwall Zone.

What are the updates on Magna Mining's Mineral Resource Estimate?

Magna Mining is updating its Mineral Resource Estimate, expected to be completed in Q3 2024.

What will the updated Preliminary Economic Assessment focus on?

The updated PEA will focus on a higher-grade, lower-production underground mining operation.

How will the initial capital for the exploration be funded?

The initial capital required will be funded from Magna's existing cash balance.

What partnerships are involved in the Crean Hill Project?

The project involves partnerships with Atikameksheng Anishnawbek, Wahnapitae First Nation, and Technica Mining under ADLP.