Name of the Project
Sisson tungsten/molybdenum project.

Location
New Brunswick, Canada.

Client
The Sisson Partnership, comprising Northcliff (a Hunter Dickenson affiliate) and New Zealand-based Todd Minerals.

Project Description
A feasibility study completed on the Sisson project has confirmed the long-life openpit tungsten and molybdenum development as a technically and economically robust project.

The project hosts a 334-million-ton proven and probable reserve, containing 22.2-million-ton units of tungsten trioxide and 154.8-million pounds of molybdenum.

The mine will be developed as an efficient bulk tonnage operation with mine facilities, including an openpit, ore processing plants, a tailings storage facility and ancillary buildings.

An ammonium paratungstate (APT) plant will also be built at the project site.

Potential Job Creation
The project is expected to create 500 jobs during the construction phase and another 300 permanent jobs over the 27-year life of the mine.

Net Present Value/Internal Rate of Return
The January 2013 feasibility study estimated a pretax net present value, at an 8% discount rate, of C$714-million and an internal rate of return of 20.4% with a 4.1-year payback.

Value
Initial capital expenditures to construct the mine, processing facilities and primary and secondary infrastructure are estimated at C$579-million.

Duration
Not stated.

Latest Developments
The project has received Canadian federal approval following an environmental-impact assessment under the Canadian Environmental Assessment Act.

The federal Minister of Fisheries, Oceans and the Canadian Coast Guard Dominic LeBlanc has said that the Sisson project “will bring about significant new economic opportunities to the people of New Brunswick”.

LeBlanc has determined that, during construction and operations, the mine will create jobs and generate business opportunities for Indigenous peoples and nearby communities, adding that the project will also help rejuvenate New Brunswick's mining industry and add a source of tungsten to Canada's mineral production.

The provincial government has welcomed the decision.

In October 2013, Northcliff announced Todd as a financing partner for Sisson. Todd completed a staged investment in 2014, and now has an 11.5% interest, with Northcliff holding the balance of 88.5% in the Sisson Partnership, which owns the Sisson project.

The provincial government estimates the project will result in C$280-million in mineral royalties to New Brunswick, as well as C$245-million in tax revenue over the life of the project.

In February, the province and six Maliseet First Nations reached an accommodation agreement to share a projected 9.8% of provincial royalty revenue that will be generated by the Sisson mine project under the Metallic Minerals Tax Act.

"The decision reinforces the thoroughness of the environmental assessment submitted by the Sisson partnership, reflecting our commitment to create a project that will bring economic benefits to New Brunswick while protecting the environment. Our focus now will be on securing offtake and financing to advance the project,” Northcliff president and CEO Chris Zahovskis has stated.

Sisson will be developed as an efficient bulk-tonnage operation and Northcliff has said it intends to undertake value‐added processing of tungsten concentrates by constructing and operating Canada’s first APT plant at the project site, which will add significant economic value to the project.

After deducting tax, Sisson has a C$418-million NPV, which is equal to $5.40 per Northcliff share, based on 77.39-million outstanding shares, a 16.3% IRR and a 4.5-year payback on the initial capital expense.

Key Contracts and Suppliers
Samuel Engineering (feasibility study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Northcliff Resources, tel +1 604 684 6365,fax +1 604 684 8092 or email info@hdimining.com.