Magna Mining awards contract for advanced exploration at Crean Hill

Magna Mining Inc. has announced 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.

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