Silver Elephant Mining Corp 6-K, filed Jul 6, 2021
Silver Elephant Mining Corp. (SILEF)
6-K
2021-07-06
For: 2021-07-06
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April 06, 2026
About this 6-K
Silver Elephant Mining Corp filed this 6-K on July 6, 2021.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16 UNDER
THE
SECURITIES EXCHANGE ACT OF 1934
For the
month of July
2021
Commission
File Number 000-55985
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SILVER ELEPHANT MINING CORP.
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(Translation
of registrant’s name into English)
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Suite 1610 – 409 Granville Street
Vancouver, British Columbia, Canada V6C 1T2
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(Address
of principal executive offices)
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Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F
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Form
20-F
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☒
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Form
40-F
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☐
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Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1):
☐
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Note: Regulation S-T Rule 101(b)(1) only permits
the submission in paper of a Form 6-K if submitted solely to
provide an attached annual report to security holders.
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Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule
101(b)(7): ☐
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Note: Regulation S-T Rule 101(b)(7) only permits
the submission in paper of a Form 6-K if submitted to furnish
a report or other document that the registrant foreign private
issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or
legally organized (the registrant’s “home
country”), or under the rules of the home country exchange on
which the registrant’s securities are traded, as long as the
report or other document is not a press release, is not required to
be and has not been distributed to the registrant’s security
holders, and, if discussing a material event, has already been the
subject of a Form 6-K submission or other Commission filing on
EDGAR.
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SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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SILVER
ELEPHANT MINING CORP.
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Date: July 6,
2021
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By:
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/s/
Brigitte
McArthur
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Brigitte
McArthur
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Corporate
Secretary
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INDEX TO EXHIBITS
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News
release dated July 6, 2021.
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Exhibit
99.1
Silver Elephant’s Minago Project Reports 722 Million Pounds
Measured and Indicated and 319 Million Pounds Inferred Nickel
Mineral Resource Estimate Grading 0.74% Nickel in Canada’s
Thompson Nickel Belt
Vancouver, British Columbia, July 6, 2021 – Silver
Elephant Mining Corp. (“Silver Elephant” or “the
Company”) (TSX: ELEF, OTCQX:SILEF,
Frankfurt:1P2N) announces
the results of a new mineral resource estimate (“MRE”)
for its 100% owned Minago Nickel Project (“Minago
Project”) in Manitoba’s Thompson Nickel Belt
(“TNB”) in Canada.
The mineral resource estimate (MRE) has an effective date of July
2, 2021 and includes a Measured and Indicated mineral resource of
722 million lbs of contained nickel and an Inferred mineral
resource of 319 million lbs of contained nickel. All resources
occur within a mineral lease that is surrounded by 94 mineral
claims plus a second mineral lease held by the Company, comprising
a total area of 197 km2.
The Minago Project has been the subject of over $40 million in
exploration, feasibility study and environmental permitting
expenditures by various previous interests since early 2000, the
most recent of these being by Victory Nickel
Inc.
The MRE was prepared by Mercator Geological Services Limited
(“Mercator”). AGP Mining Consultants
(“AGP”) provided pit optimization and associated
services. Stantec Ltd. (“Stantec”) provided site visit
and professional support on environmental permitting review. All
three firms are independent of Silver Elephant as defined under
National Instrument 43-101 (NI 43-101). The Minago Project MRE was prepared in
accordance with the CIM Definition Standards for Mineral Resources
and Mineral Reserves (2014) and is tabulated below in Table 1.
Separate reporting for the constituent Nose Zone and North Limb
Zone appears in Tables 2 and 3, respectively, and
notes that apply to all tables follow
Table 3. A technical report prepared in accordance with NI 43-101
Form F1 that documents the MRE will be filed on SEDAR by the
Company within 45 days.
Table 1: Minago Project Mineral Resource Estimate
– Effective July 2, 2021
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Type
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Ni % Cut-off
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Category
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Rounded Tonnes
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Ni %
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Ni lbs (millions)
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Open Pit
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0.25
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Measured
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11,490,000
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0.73
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184.92
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Indicated
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12,450,000
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0.69
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189.39
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Measured and Indicated
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23,940,000
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0.71
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374.30
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Inferred
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2,070,000
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0.57
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26.01
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Underground
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0.5
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Measured
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610,000
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0.81
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10.89
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Indicated
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19,680,000
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0.77
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334.08
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Measured and Indicated
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20,290,000
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0.77
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344.97
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Inferred
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17,480,000
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0.76
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292.88
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Combined
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0.25/0.50
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Measured
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12,100,000
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0.73
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194.73
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Indicated
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32,130,000
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0.74
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524.17
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Measured and Indicated
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44,230,000
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0.74
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721.58
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Inferred
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19,550,000
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0.74
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318.94
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See notes following Table 3
Table 2: Nose Zone Mineral Resource Estimate – Effective Date
July 2, 2021
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Type
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Ni % Cut-off
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Category
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Rounded Tonnes
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Ni %
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Ni lbs (millions)
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Open Pit
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0.25
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Measured
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11,490,000
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0.73
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184.92
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Indicated
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10,310,000
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0.70
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159.11
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Measured and Indicated
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21,800,000
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0.72
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344.02
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Inferred
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1,410,000
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0.51
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15.85
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Underground
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0.5
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Measured
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610,000
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0.81
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10.89
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Indicated
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13,870,000
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0.80
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244.62
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Measured and Indicated
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14,480,000
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0.80
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255.52
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Inferred
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10,610,000
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0.80
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187.13
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Combined
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0.25/0.50
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Measured
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12,100,000
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0.73
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194.73
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Indicated
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24,180,000
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0.76
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405.14
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Measured and Indicated
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36,280,000
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0.75
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599.88
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Inferred
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12,020,000
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0.77
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204.05
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See notes following Table 3
Table 3: North Limb Zone Mineral Resource Estimate –
Effective Date July 2, 2021
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Type
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Ni % Cut-off
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Category
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Rounded Tonnes
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Ni %
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Ni lbs (millions)
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Open Pit
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0.25
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Measured
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Indicated
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2,140,000
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0.65
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30.67
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Measured and Indicated
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2,140,000
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0.65
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30.67
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Inferred
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660,000
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0.70
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10.19
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Underground
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0.5
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Measured
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Indicated
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5,810,000
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0.68
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87.10
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Measured and Indicated
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5,810,000
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0.68
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87.10
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Inferred
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6,870,000
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0.68
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102.99
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Combined
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0.25/0.50
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Measured
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Indicated
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7,950,000
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0.67
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117.43
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Measured and Indicated
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7,950,000
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0.67
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117.43
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Inferred
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7,530,000
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0.68
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112.89
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Notes to accompany Tables 1, 2 and 3:
1.
Mineral resources
were prepared in accordance with the CIM Definition Standards for
Mineral Resources and Mineral Reserves (MRMR) (2014) and CIM MRMR
Best Practice Guidelines (2019).
2.
Open Pit mineral
resources are defined within an optimized pit shell with average
pit slope angles of 45⁰ and overall 13.3:1 strip ratio (waste
: mineralized material). The13.3:1 strip ratio is comprised of a
6.2:1 pre-strip component and a 7.1:1 deposit
component.
3.
Pit optimization
parameters include: metal pricing at US$7.80/lb Ni, mining at
US$1.77/t, processing at US$7.62/t processed, G&A at US$3.33/t
processed, and an average sulphide Ni (NiS) recovery above the
cut-off grade of 78% (ranging from 40% to 90%), based on previous
metallurgical test programs. An average Ni recovery of 56% can be
calculated using the average NiS recovery and the average ratio of
NiS to Ni (72%) reported above the cut-off grade. Concentrate
by-product credits were applied at metal prices of US$3.25/lb (Cu),
US$2,000/oz Pd and US$ 1,000/oz Pt. A potential frac-sand
overburden unit was assigned a value of US $20/t, a recovery factor
of 68.8 %, mining cost of US $1.77/t, and processing cost of US
$6.55/t processed.
4.
Open
Pit mineral resources are reported at a cut-off grade of 0.18 % NiS
within the optimized pit shell. The 0.18 % NiS cut-off grade
approximates a 0.25 % Ni grade when applying the average ratio of
total Ni to NiS for the mineral resource. The cut-off grade
reflects total operating costs used in pit optimization to define
reasonable prospects for eventual economic extraction by open pit
mining methods.
5.
Underground
mineral resources are reported at a cut-off grade of 0.36 % NiS.
The 0.36 % NiS cut-off grade approximates a 0.50 % Ni grade when
applying the average ratio of total Ni to NiS for the mineral
resource. The cut-off grade reflects total operating costs of
US$41.72/t processed to define reasonable prospects for eventual
economic extraction by underground mining methods.
6.
Ni
% deposit grade was estimated using Ordinary Kriging methods
applied to 2 m downhole assay composites. No grade capping was
applied. NiS % block values were calculated from Ni % block values
using a regression curve based on Ni and NiS drilling database
assay values. Model block size is 6 m (x) by 6 m (y) by 6 m
(z).
7.
Bulk
density was applied on a lithological model basis and reflects
averaging of bulk density determinations for each
lithology.
8.
Mineral
resources may be materially affected by environmental, permitting,
legal, title, taxation, sociopolitical, marketing, or other
relevant issues.
9.
Mineral
resources are not mineral reserves and do not have demonstrated
economic viability.
10.
Mineral
resource tonnages are rounded to the nearest 10,000.
Project Setting
The Minago Project is located in the southern extent of
Manitoba’s TNB. Manitoba Provincial Highway 6 and a
high-voltage (230 kV) transmission line both transect the Minago
project area. Vale currently mines and produces nickel concentrates
in Thompson at the heart of the TNB, 270 km northeast of the Minago
project. Its nickel concentrates are shipped by rail to its Sudbury
smelter for processing to refined nickel.
There are no known legal, political, environmental, or other risks
identified by the Company at the July 2, 2021 effective date that
would materially affect potential future development of the Minago
Project.
Historical Metallurgical Program Results
The
2010 feasibility study completed on behalf of Victory Nickel Inc.
for the Minago Project is now historical in nature and no longer
applies. However, that study includes results of a metallurgical
test program that developed a sulphidic nickel head grade-recovery
curve for use in pit optimization and economic assessment of the
project. Flotation development tests and locked cycle tests (LCT)
were conducted on a master composite of open pit mineralization
samples having grades of 0.54% total Ni and 0.36% sulphidic Ni.
Results of this work indicated that a nickel concentrate containing
22.27% Ni and 10.43% MgO can be produced with an equivalent
sulphidic nickel recovery of 77.2% and a total nickel recovery of
52.3% (Feasibility Study, Minago Nickel Mine, dated March 4, 2010,
prepared by Wardrop Engineering Inc. for Victory Nickel Inc. and
filed on SEDAR by Victory Nickel Inc.).
These
historical metallurgical results are relevant to ongoing evaluation
of the Minago Project and the Company intends to thoroughly
evaluate them through a new metallurgical program that will support
its plan to move the Minago Project forward through feasibility
assessment leading to production.
Exploration Potential
The TNB is the fifth largest sulphide nickel belt in the world
based on contained nickel endowment. It contains over 18 defined
nickel deposits and has supported over 5 billion lbs of nickel
production since 1959 (Source: Naldrett, A.J., 2004, Magmatic
Sulfide Deposits; Geology, Geochemistry and Exploration:
Springer-Verlag, Berlin, 725 p.). Several producing and past-producing mines are
located along the same fold-structure at Thompson, known as the
Thompson Dome, and occur within a few kilometers of each other. The
Thompson, Birchtree and Pipe mines have collectively produced 150
million tonnes grading 2.32% nickel since 1958 (Naldrett, 2004).
Vale’s Thompson operations produced 23Mlbs of Ni in 2020
(Vale Annual Report, 2020, dated March 23,
2021).
The Minago Project is hosted by the Opswagan Group, which is the
same geological sequence in which the Thompson nickel deposits
occur. The orebodies that comprise the currently operating Thompson
Mine occur in the Opswagan Group’s Pipe Formation,
particularly within the P2 Schist Member. Thompson-style nickel
mineralization consists of magmatic nickel sulphide originally
associated with mafic and ultramafic intrusions that commonly has
been remobilization by regional metamorphism and deformation into
favourable structural settings such as fold noses and limbs in host
sequences. Nickel sulphides of economic importance also occur as
disseminated to massive phases within and adjacent to the mafic and
ultramafic intrusions themselves, with this setting best
characterizing the Minago deposits.
The Nose Zone and North Limb Zone at Minago have generally similar
structural, geological and mineralogical characteristics as
deposits located on the Thompson Dome to the north. Nickel
mineralization defining the new MRE in both zones of the Minago
Project remains open at depth and along strike, based on current
drilling results, and the Company has identified good opportunities
to expand current mineral resources through future exploration in
these areas.
Substantial volumes of nickel mineralization that are presently
defined by drilling in the Nose Zone and North Limb Zone were
excluded from the current MRE by the cut-off grades applied. The
Company believes that some of this mineralization could be included
in future open pit and underground resource categories if higher
nickel prices develop. The current optimized pit shell has a
maximum depth of approximately 350 meters below
surface.
Results of inversion modelling of existing ground and airborne
magnetic survey data are interpreted by the Company as providing a
good indication of mineralized zone continuity between the Nose
Zone and the North Limb Zone and for extensions of these zones to
depth and along strike. If proven to be correct, this could provide
potential for definition of a district-sized deposit.
Regionally, historical drilling
completed 5 km to the south of the Nose Zone (“South
Target”), and 3 km to the northwest of the North Limb Zone
(“O Limb Target”) by Amax Exploration from 1969 to 1971
encountered nickel mineralization similar in style to that at
Minago. The Company believes that these two specific areas
represent high priority targets for further exploration and
potential resource expansion.
In addition to exploration noted above within the Minago Project,
the Company recently tasked a professional team with significant
expertise in the Thompson Nickel Belt with identifying additional
prospective areas for staking.
Company Remarks
The
Company believes Minago has potential to support future production
of Class 1, high-purity nickel for application in nickel-lithium
batteries used in electric vehicles.
The
Minago MRE demonstrates that the Minago Project is one of Canada's largest undeveloped
sulphide nickel deposits. In the next 12 months, the Company
intends to carry out core drilling programs at Minago to expand
existing mineral resources, address updating of environmental
permitting established in 2011 to operate the project, and initiate
economic evaluation of the MRE by means of a Pre-feasibility or
Feasibility study.
Minago Project maps are available at www.silverelef.com.
Qualified Persons
Matthew Harrington, P. Geo., of Mercator Geological Services
Limited is responsible for technical disclosure regarding the
Minago MRE contained in this press release. Both he and Mercator
are independent of Silver Elephant, as this term is defined under
NI 43-101.
The technical contents of this news release have been prepared
under the supervision of Danniel Oosterman, VP Exploration for
Silver Elephant. Mr. Oosterman is not independent of the Company as
this term is defined under NI 43-101.
About Silver Elephant
Silver Elephant Mining Corp. is a premier silver mining and
exploration company.
Further information on Silver Elephant can be found at
www.silverelef.com.
SILVER ELEPHANT MINING CORP.
ON
BEHALF OF THE BOARD
“John Lee”
Executive Chairman
For more information about Silver Elephant, please contact Investor
Relations:
+1.604.569.3661 ext. 101
ir@silverelef.com www.silverelef.com
Neither the Toronto Stock Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Toronto
Stock Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, including
statements which may contain words such as “expects”,
“anticipates”, “intends”,
“plans”, “believes”,
“estimates”, or similar expressions, and statements
related to matters which are not historical facts are
forward-looking information within the meaning of applicable
securities laws. Such forward-looking statements, which reflect
management’s expectations regarding the Company’s
future growth, results of operations, performance, and business
prospects and opportunities, are based on certain factors and
assumptions and involve known and unknown risks and uncertainties
which may cause the actual results, performance, or achievements to
be materially different from future results, performance, or
achievements expressed or implied by such forward-looking
statements.
These factors should be considered carefully, and readers should
not place undue reliance on the Company’s forward-looking
statements. The Company believes that the expectations reflected in
the forward-looking statements contained in this news release and
the documents incorporated by reference herein are reasonable, but
no assurance can be given that these expectations will prove to be
correct. In addition, although the Company has attempted to
identify important factors that could cause actual actions, events,
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events, or results not to be as anticipated, estimated, or
intended. The Company undertakes no obligation to publicly release
any future revisions to forward-looking statements to reflect
events or circumstances after the date of this news or to reflect
the occurrence of unanticipated events, except as expressly
required by law.