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Reserves & Resources

Mineral Reserves

The life of mine Mineral Reserves are defined using a long-term nickel price of $7.50/lb which is supported by consensus pricing forecasts. For 2017 and 2018 the Mineral Reserves associated with the current Halleys mine remain valid at near term consensus nickel pricing which ranges from $5.00/lb to $5.60/lb.

Mineral Reserves for RNO inclusive of stockpiles, as at December 31, 2016, are presented in the table below.

In addition to the stockpiles there is also an intermediate beneficiated product that is held within the processing surge (buffer) ponds. At the end of December 2016, the quantity of this material (considered as Proven Reserve) was 190,000 tonnes @ 1.7% Ni.

Mineral Reserves as at December 31, 2016 - reported based on $7.50/lb long-term nickel price

Classification Ore (Mt) Ni (%) Co (%) Ca (%) CO3 (%) Mg (%)
Limonite Ore
Total Proven 45.8 0.65 0.03 0.69 4.15 2.15
Total Probable 80.8 0.60 0.03 0.81 4.66 2.52
Subtotal Prov. plus Prob. 126.7 0.61 0.03 0.77 4.48 2.38
Saprolite Ore
Total Proven 25.7 0.56 0.02 2.44 16.09 10.66
Total Probable 36.2 0.53 0.02 2.42 14.20 11.09
Subtotal Prov. plus Prob. 61.9 0.54 0.02 2.43 14.99 10.91
Total Ore in Pits
Total Proven 71.6 0.62 0.03 1.32 8.44 5.21
Total Probable 117.0 0.58 0.03 1.31 7.61 5.17
Subtotal Prov. plus Prob. 188.6 0.59 0.03 1.31 7.93 5.18
Stockpile
Total Proven 10.8 0.68 0.02 0.80 11.90 11.30
Total Probable - - - - - -
Subtotal Prov. plus Prob. 10.8 0.68 0.02 0.80 11.90 11.30
Total Reserve Including Stockpile
Total Proven 82.4 0.62 0.03 1.25 8.90 6.01
Total Probable 117.0 0.58 0.03 1.31 7.61 5.17
Total Prov. plus Prob. 199.4 0.60 0.03 1.29 8.14 5.51

This Mineral Reserve estimate as at December 31, 2016, has been prepared and verified by independent consulting Mining Engineer, Anthony Cameron of Cameron Mining Consulting Ltd. Anthony Cameron is a qualified person and holds the following valid qualifications: BE (Mining), Grad Dip Bus, M Comm. Law, FAusIMM.

Mineral Resources

For the purposes of reporting the status of the Mineral Resources and Reserves as at December 31, 2016, the 2015 estimates have been depleted to reflect actual mining activities that occurred during 2016.

Mineral Resource inclusive of stockpiles as at December 31, 2016 - cut-off grade 0.3% Ni

Deposit Classification Tonnes (Mt) Ni
(%)
Co
(%)
Fe
(%)
Al
(%)
Mg
(%)
Ca
(%)
CO
(%)
Cu
(g/t)
Zn
(g/t)
Halleys Measured 13.6 0.62 0.02 8.20 0.94 11.80 2.00 20.00 19.00 56.00
Indicated 4.0 0.54 0.02 9.50 1.50 10.90 0.80 7.00 20.00 63.00
Total Meas. plus Ind. 17.6 0.60 0.02 8.50 1.08 11.60 1.80 17.00 19.00 57.00
Inferred 5.6 0.37 0.01 6.35 0.43 15.76 1.07 12.00 14.00 46.50
Hale-Bopp Measured - - - - - - - - - -
Indicated 25.7 0.62 0.03 10.79 1.68 8.15 0.80 14.45 24.13 61.10
Total Meas. plus Ind. 25.7 0.62 0.03 10.79 1.68 8.15 0.80 14.45 24.13 61.10
Inferred 37.4 0.55 0.03 9.49 1.48 10.75 0.40 8.02 22.07 56.09
Shoemaker-Levy Measured 63.1 0.62 0.03 13.90 1.90 4.60 1.20 10.50 33.00 93.00
Indicated 113.8 0.57 0.03 11.30 1.40 5.30 1.60 13.10 35.00 84.00
Total Meas. plus Ind. 176.9 0.59 0.03 12.23 1.58 5.05 1.46 12.17 34.29 87.21
Inferred 15.0 0.44 0.02 7.80 1.50 11.30 1.70 11.00 24.00 59.00
Nindilbillup Inferred 31.4 0.55 0.02 11.30 2.20 4.70 0.80 8.60 74.00 109.00
Shoemaker-Levy North Inferred 25.3 0.53 0.02 11.70 2.20 7.60 0.40 7.00 36.00 70.00
Total Resources Total Measured 76.7 0.62 0.03 12.89 1.73 5.88 1.34 12.18 30.52 86.44
Total Indicated 143.5 0.58 0.03 11.16 1.45 5.97 1.43 13.17 32.64 79.32
Total Meas. plus Ind. 220.2 0.59 0.03 11.76 1.55 5.94 1.41 12.82 31.88 81.75
Total Inferred 114.7 0.52 0.02 10.10 1.79 8.72 0.71 8.54 39.22 73.56
Stockpiled Resources Measured 10.8 0.68 0.02 9.60 1.00 11.30 0.80 11.90 - -

This December 31, 2016 Mineral Resource estimate has been prepared and verified by independent consultant and qualified person, Felicity Hughes (FJ Hughes & Associates) MAIG, MAusIMM.