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Thompson Nickel Belt,
Manitoba, Canada
Minago Nickel Project ReviewThompson Nickel Belt,
Manitoba, Canada
Minago Nickel Project ReviewThompson Nickel Belt,
Manitoba, Canada TSX: ELEF OTCQX: SILEF
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Per News Release January 22, 2021
Silver Elephant entered in binding definitive agreement to acquire Minago Nickel Project from Victory Nickel for US$11,675,000, which consists of US$6,675,000 at closing and US$5,000,000 worth of Silver Elephant shares over a one-year period.
Additionally, Silver Elephant will make a one-time payment to Victory Nickel of C$2,000,000 worth of Silver Elephant’s shares, upon the nickel price exceeding US$10 a pound for 30 consecutive business days, occurring before December 31, 2023.
At closing (by February 7), Silver Elephant will subscribe C$1 million worth of Victory Nickel common shares at $0.025 per share.
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Company Structure, 180M sh o/s, 217M sh f/d ELEF SILEF
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Minago History: CAD$35M, 68,000m drilling, FS, EIS
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Project Location: Manitoba, Canada
• 19,661 hectares (~197 square km’s)
• 94 mineral claims, 2 mineral leases
• 225km Southwest of Thompson
• Located immediately adjacent to Provincial Highway 6 (paved road)
• 230kV line runs along highway 6 right next to property
• Thompson Nickel Belt has produced over 5Blbs of nickel since 1959
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Nose Deposit: a Thompson-style body
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2009 Minago Historic Resource by Wardrop EngineeringResource Classification Cutoff Tonnes (x 1,000) Ni (%) klbs Ni
Measured >0.25% 11,051 0.56 136,396Indicated >0.25% 43,063 0.51 484,045Inferred >0.25% 14,585 0.53 170,370
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MinagoProjectNickel Potential1B lbs Ni
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DDH No Int (m) Ni (%)
V‐10‐02 60.4 0.45
V‐10‐03 28.4 0.42
V‐10‐03 10.9 0.7
V‐10‐04 52.0 0.63
V‐10‐04 29.0 0.56
V‐10‐05 17.7 0.73
V‐10‐13 133.9 0.5
V-10-21 52.2 0.57
V-10-21 18.3 0.54
V-11-07 14.4 0.44
V-11-08 26.3 0.51
V-11-08 20.3 0.91
V-11-09 95.5 0.72
V-11-10 120.5 0.52
V‐11‐11 17.1 0.58
V‐11‐11 49.0 0.56
V‐11‐13 61.0 0.46
V‐11‐14 36.3 0.68
DDH No. Int (m) Grade (%Ni)
V-11-21 4.12 0.77
6.46 0.39
V-11-23 10.5 0.65
9.15 1.17
32.5 0.73
incl... 11.4 1.11
V-11-24 3.51 0.45
3.86 0.64
DDH No Width (m) Ni%
VX-08-03 66.0 0.52
MN96-141
20.1 0.61
MN96-142
5.2 1.44
MXB-71-86
12.3 0.86
DDH No Width (m) Ni%
A60 12.2 0.49
23.2 0.4736.6 0.6
A37 36.6 0.51
A23 9.1 0.45
A34 16.2 0.71
A36 12.2 0.46
24.4 0.38
ExplorationUpside
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Minago: TNB-style mineralization
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• Nickel-sulphidesremobilized into low-stress regimes during folding (e.g. fold noses, pressure shadows along fold limbs)
• Nose deposit akin to T1 deposit in Thompson
• T3 deposit occurs along fold limb
• Minago North Limb = exploration target
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Minago Metallurgy
Minago Concentrate Analysis from Flotation
TestsComponent Analysis
Ni (%) 22.3
Cu (%) 1.4
Co (%) 0.46
Zn (%) 0.18
Pb (%) 0.10
Al (%) 0.11
S (%) 24.4
Fe (%) 17.0
MgO (%) 10.4
SiO2 (%) 12.7
Pt (g/t) 2.47
Pd (g/t) 6.31
Au (g/t) 0.63
Ag (g/t) 4.3
Rh (g/t) 0.59
Cr (g/t) 410
As (g/t) 61
Se (g/t) <40
Sn (g/t) <20
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• 77% Recovery• 22.3% Nickel Concentrate• 0.43% feed on met test
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Mineralization Style and Occurrence
Thompson ore in P2 Schist. Nickel in pentlandite-bearing sulphides
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Interstitial Ni-bearing sulphidesin ultramafic rock; typical of proximal facies Thompson ore
Photoplate of Minagomineralization showing presence of violarite (vio) = enhanced Ni recovery
Photoplate of Minagomineralization as millerite (mil) and violarite (vio) = enhanced Ni recovery
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Nickel Sulphide Peer Comp
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Company Name Mcap C$ Ticker Project Location Resource M&I Ni Contain Recovery Ni Conc% Power-Road
Talon Metals $327M TLO.T Tamarack Minnesota 3.6Mt @ 1.83% UG 145M lbs 83% 13% Yes-Yes
Silver Elephant $70M ELEF.T Minago Manitoba 54Mt @ 0.52% In Pit 620M lbs 77% 22% Yes-Yes
Canada Nickel $180M CNC.V Crawford Ontario 281Mt @ 0.31%* 1.9B lbs 46% 13-28% Yes-Yes
Nickel Creek $53M NCP.T Wellgreen Yukon 323Mt @ 0.26% 1.7B lbs 55% 6.7% ?-Yes
Giga Metals $40M GIGA.V Turnagain BC 1Bt @ 0.22% 5.2B lbs 57% 19% ?-Yes
FPX Nickel $136M FPX.V Decar BC 2Bt @ 0.11% 5.3B lbs 85% 63% ?-Yes $1.7B
Nickel Iron Mention*High grade zone only
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Plans for Minago Project
• Update Mineral Resource Estimate to a current NI43-101 compliant status
• Commence district exploration on area targets• Assess resource potential of the North Limb• Updated FS and EIS• Open discussions with strategic investors• Potential future spin-off
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Long Range, High Intensity, Faster Recharge = More Nickel
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Nickel Break out of multi-year consolidation
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Each EV Requires 30kg of Nickel (66 lbs)
20 million EV requires = 1.2 Billion Pounds nickel by 2030 year
Global nickel Supply = 5 billion pounds, Class 1 = 2.5 billion pounds
Where will 1 billion pounds of Class 1 nickel Supply Come from?
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Smelter Options
• Vale currently ships Thompson ore through port of Churchill, MB to Voisey’s Bay
• Rail to Sudbury’s Vale smelter
• Rail to Sudbury’s Glencore Smelter
• Container shipping (Churchill, MB) to Finland (Outukompu)
• Container shipping to China
• Container shipping to Russia
• Container shipping to Australia
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MgO at Minago
Project/Camp Ni Feed % Ni Con % MgO% Source
Thompson (Vale) 1.78 12.3 4Pandher & Utigard 2010, Vale
20F, 2020
Thompson (low grade tests) 0.67 5.24 9.75 Uddin et al., 2011
Sudbury (Vale) 1.68 12.6 3.3Pandher & Utigard 2010, Vale
20F, 2020
Tamarack (Talon) 1.6 10.7 4.7 Press release, August 31, 2020
Minago 0.53 22.3 10.4 SGS Lakefield, 2008
Turnagain (Giga) 0.26 19.2 8.4 PEA, October 28, 2020
Nickel Shaw (Nickel Creek) 0.33 6.7 6.1 Press release, July 10, 2018
Crawford (Canada Nickel) 0.44 1.8 ?6.8kg core composite; Nov 1
NI43-101
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A common problem with Ni-sulphide ores is the fibrous nature of some MgO minerals (which can be surpressed) thicken the slurry during flotation and float with Ni. MgO-bearing concentrates cause furnace operation problems (higher and thicker slag melting temps) leading to shortened furnace life and higher operating cost