The McWatters nickel deposit is located approximately 29 kilometers southeast of the city of Timmins, Ontario, Canada in Langmuir Township and about 9.5 km east of the Redstone Mine.
Reserves and Resources
Nickel sulphide mineralization at the McWatters Mine occurs in two zones: the upper lower grade disseminated sulphide zone and the lower high grade massive sulphide zone.
A National Instrument 43-101 compliant resource calculation was released in October 2005. After additional definition drilling was completed in the fall of 2007, an updated NI 43-101 compliant resource was subsequently released on December 18, 2008. The technical report stated an indicated resource of 665,308 tonnes of mineralization grading 0.72% Ni in the upper zone and 49,562 tonnes grading 3.93% Ni in the lower zone with an inferred resource of 13,829 tonnes grading 3.39% Ni in the lower zone. The feasibility study of December 18, 2009 estimated the Probable Mineral Reserves at 872,000 tonnes with an average grade of 0.70% Ni using a nickel price of US$15,430 per tonne (US$7.00 per pound) and an exchange rate of $1.00 CDN = $0.90 US. The life of mine for the McWatters project is two years at an average production rate of 1800 tonnes per day.
Production
Ramp development was completed to the 155m level in early January 2010. Cut and fill mining on the 155m level commenced firstly and commercial production was declared in January 2010. An open pit allows removal of the crown pillar with the balance of the mine exploited with sublevel caving to the 140m level.
During the two months of 2011, McWatters Mine broke 123,643 tonnes and hauled 38,412 tonnes with mine geologists grading the ore at 0.45% nickel. The McWatters Mine was placed on care and maintenance in late March of 2011 due to issues at the Redstone Mill complex. Since that time, the Mine has been maintained in a ready state and production is scheduled to restart in Q1 of 2012 from here. Production will proceed at 1,500 tonnes per day in order to maximize the feed to the Redstone Mill. Currently there is approximately 175,000 tonnes of broken ore sitting underground at McWatters and another 28,000 tonnes of ore sitting on surface at the Mill ready to be processed.