Company Profiles

Minnova Corp.


High Grade, Low CAPEX, Near-term Gold Production in Manitoba

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Minnova Corp. (TSXV:MCI) is working diligently to fast-track toward production at its wholly-owned PL Gold Mine located in Manitoba, Canada. Manitoba is a world class mining jurisdiction and hosts the Flin Flon – Snow Lake greenstone belt, one of the most prolific greenstone belts in Canada. The Flin Flon – Snow Lake greenstone belt has a long mining history of exploration and discovery success and boasts 30 past and currently producing mines.

The past-producing PL property includes the PL Gold Deposit, is fully-permitted for underground mining operations, and the satellite Nokomis Gold Deposit represents a future development opportunity to deliver additional production growth. The PL deposit has an underground mineral resource estimate of 206,800 ounces of gold in the Measured and Indicated categories plus an Inferred Resource of 412,500 ounces of gold grading approximately 6.2g/t. Key existing infrastructure includes a 1,000 tpd mill and 7,000 meters of underground workings.

Minnova’s goal is to begin small-scale production in the near-term with a view toward generating cash to fund further expansion of the project and build more value for all stakeholders. “What makes us unique and separates us from our peers is our level of existing infrastructure which drives our very low capex,” said Gorden Glenn, President and CEO of Minnova. “Both the mill and the mining permit place us on a fast track to production with a very low CAPEX and no need to negotiate a toll milling agreement. In addition, the permit can be amended for future open pit operations and the current mill has sufficient enough capacity for an organic growth story at a very low cost.”

The 2014 Preliminary Economic Assessment (PEA) for the PL Gold Mine project outlines a 43,000 ounce per year operation over a ten-year mine life with an ultra-low estimated capital cost of C$25 million.

Minnova is planning a state-of-the-art commercial mining operation that benefits from the orebody’s shallow depth, with gold mineralization starting at surface and drill tested down dip to just over 300 meters (still open). The company is working with leading equipment manufactures specializing in designing equipment for narrow-vein mining, and specifically, the use of small, ultra-low / extra-low (ULP/XLP) electric and battery operated equipment which will allow Minnova to minimize mine dilution in stopes and reduce underground development requirements.

Upcoming catalysts for the property are in-fill drilling results at the existing PL deposit which is targeting an increase in the Measured & Indicated resources. “This current drill campaign is about further increasing the confidence level in the gold resource of the deposit,” said Glenn. The updated resource will support a Pre-Feasibility Study (PFS) which is targeted for completion in the spring of 2017. That study will be the catalyst for securing additional financing for the planned test mining and bulk sampling program as well as executing on the mill refurbishment. All of this growth is coming about in a compressed timeline of 12 to 18 months with commercial production projected to begin as early as the first half of 2018.

Company Highlights

  • 100-percent owned past producing, permitted PL Gold Mine and satellite Nokomis gold deposit.
  • Measured & Indicated Resource at PL deposit of 206,800 ounces gold and an Inferred Resource of 412,500 ounces still open to expansion.
  • Near-term gold production, with excellent exploration upside.
  • Key mining infrastructure in place including 1,000 tpd mill, access ramp to 7,000 meters of underground workings.
  • Permitted to re-start underground mining operations.
  • Targeting ~43,000 ounces of annual production with a low Capex of C$25 million and IRR of >40 percent.
  • Working with global leaders in equipment manufacturing and innovation for the use of small, mechanized (ULP/XLP) equipment to develop minimal mine openings with narrow stope heights.
  • Well structured, significant insider ownership with management and directors holding 9 percent of basic shares and 14 percent fully diluted; gold-focused institutional fund Gold 2000 holds 9.9 percent.
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