Silver Elephant Mining Corp 6-K, filed Aug 30, 2021
Silver Elephant Mining Corp. (SILEF)
6-K
2021-08-30
For: 2021-08-30
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About this 6-K
Silver Elephant Mining Corp filed this 6-K on August 30, 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 August
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: August 30,
2021
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By:
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/s/
"Irina
Plavutska"
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Irina
Plavutska
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CFO
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INDEX TO EXHIBITS
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99.1
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News
release dated August 30, 2021.
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Exhibit
99.1
Silver Elephant: Gibellini Vanadium
Project’s PEA Shows 25.4% After Tax IRR At $10/lb
V2O5,
Capex $147 million
Vancouver, British Columbia, August 30, 2021 –Silver Elephant
Mining Corp. (“Silver
Elephant” or the “Company”) (TSX:ELEF, OTCQX:SILEF, Frankfurt:1P2N) is pleased to announce
the results of a preliminary economic assessment (the
“2021 PEA”)
for its Gibellini vanadium project (“Gibellini
project”) that demonstrates an after-tax internal rate of
return (“IRR”) of 25.4%, and after-tax cumulative cash
flow of $260.8 million, assuming an average vanadium pentoxide
(V2O5)
price of $10.00 per pound.
The Gibellini project is designed to be an open pit, heap leach
operation in Nevada’s Battle Mountain region (25 km south of
Eureka) with initial capital cost of $147 million, average annual
production is 10.2 million pounds of V2O5
, at
an all-in sustaining cost of $6.04 per pound with strip ratio of
0.18 to 1 (waste rock:leach material).
As of August 27, 2021, the European price of vanadium pentoxide
(98%) was $9.60 per pound according to
www.asianmetal.com.
The 2021 PEA was prepared by Wood Group USA, Inc (Wood) and Mine
Technical Services Ltd. (MTS). The technical report that summarizes
the 2021 PEA will be filed under the Company’s SEDAR profile
and available within 45 days.
All dollar values are expressed in US dollars unless otherwise
noted.
2021 PEA Highlights:
The 2021 PEA is preliminary in nature, and includes inferred
mineral resources that are considered too speculative geologically
to have the economic considerations applied to them that would
enable them to be categorized as mineral reserves, and there is no
certainty that the PEA will be realized. Mineral resources are not
mineral reserves and do not have demonstrated economic
viability.
Highlights of the 2021 PEA (after tax):
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Internal rate of return
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25.4%
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Payback period
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2.49 years
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Life of mine
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11.1 years
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Total V2O5
recovered
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114.6 million lbs
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Average V2O5
selling
price
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$10 per lb
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Cash operating cost
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$4.70 per lb V2O5
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All-in sustaining cost
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$6.04 per lb V2O5
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Initial capital cost including 25% contingency
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$147 million
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Average grade
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0.271% V2O5
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Strip ratio (waste:leach)
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0.18:1
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Mining operating rate
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9,700 tons per day
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Total material leached
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33.4 million tons
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Average V2O5
recovery
through direct heap leaching
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63.4%
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Mineral Resources
The PEA Mineral Resource is based on Measured, Indicated and
Inferred Mineral Resource estimates for the Gibellini deposit and
Inferred Mineral Resource estimates for the Louie Hill and Bisoni
McKay deposits, totaling131.34 million pounds of contained
V2O5 in the Measured and
Indicated categories, and 227.81 million pounds of contained
V2O5 in the Inferred
catetory.
Mineral Resource Statement, Gibellini
|
Confidence Category
|
Domain
|
Cut-offV2O5 (%)
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Tons(kton)
|
GradeV2O5 (%)
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ContainedV2O5
(klb)
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Measured
|
Oxide
|
0.101
|
3,960
|
0.251
|
19,870
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Transition
|
0.086
|
3,980
|
0.377
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29,980
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Indicated
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Oxide
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0.101
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7,830
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0.222
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34,760
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Transition
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0.086
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7,190
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0.325
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46,730
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Total Measured and Indicated
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22,950
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0.286
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131,340
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Inferred
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Oxide
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0.101
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160
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0.170
|
550
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Transition
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0.086
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10
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0.180
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30
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Reduced
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0.116
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14,800
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0.175
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51,720
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Total Inferred
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|
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14,970
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0.175
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52,300
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Notes:
1.
The Qualified
Person for the estimate is Mr. Todd Wakefield, RM SME of Mine
Technical Services Ltd. The Mineral Resources have an effective
date of 5 June
2021. The resource model was prepared by Mr. E.J.C. Orbock III, RM
SME.
2.
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
3.
Mineral Resources
are reported at various cut-off grades for oxide, transition, and
reduced material.
4.
Mineral Resources
are reported within a conceptual pit shell that uses the following
assumptions: Mineral Resource V2O5 price of
$14.64/lb; mining cost: $2.21/st mined; process cost: $13.62/st
processed; general and administrative (G&A) cost: $0.99/st
processed; metallurgical recovery assumptions of 60% for oxide
material, 70% for transition material and 52% for reduced material;
tonnage factors of 16.86 ft3/st for oxide
material, 16.35 ft3/st for transition
material and 14.18 ft3/st for reduced
material; royalty: 2.5% net smelter return (NSR); shipping and
conversion costs: $0.37/lb. An overall 40° pit slope angle
assumption was used.
5.
Rounding as
required by reporting guidelines may result in apparent summation
differences between tons, grade and contained metal content.
Tonnage and grade measurements are in US units. Grades are reported
in percentages.
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Confidence Category
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Cut-offV2O5 (%)
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Tons(kton)
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GradeV2O5 (%)
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ContainedV2O5
(klb)
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Inferred
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0.101
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7,520
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0.276
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41,490
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Notes:
1.
The Qualified
Person for the estimate is Mr. Todd Wakefield, RM SME, of Mine
Technical Services Ltd. The Mineral Resources have an effective
date of 5 June 2021. The
resource model was prepared by Mr. Mark Hertel, RM
SME.
2.
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
3.
Oxidation state was
not modeled.
4.
Mineral Resources
are reported within a conceptual pit shell that uses the following
assumptions: Mineral Resource V2O5 price of
$14.64/lb; mining cost: $2.21/st mined; process cost: $13.62/st
processed; general and administrative (G&A) cost: $0.99/st
processed; metallurgical recovery assumptions of 60% for
mineralized material; tonnage factors of 16.86 ft3/st for mineralized
material; royalty: 2.5% net smelter return (NSR); shipping and
conversion costs: $0.37/lb. An overall 40° pit slope angle
assumption was used.
5.
Rounding as
required by reporting guidelines may result in apparent summation
differences between tons, grade and contained metal content.
Tonnage and grade measurements are in US units. Grades are reported
in percentages.
Mineral
Resource Statement, Bisoni–McKay
|
Area
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ConfidenceCategory
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Domain
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Cut-offV2O5 (%)
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Tons(kton)
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GradeV2O5 (%)
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ContainedV2O5
(klb)
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North
Area A
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Inferred
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Oxide
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0.107
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6,970
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0.29
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39,720
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Transition
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0.124
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1,500
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0.33
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9,900
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||
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Reduced
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0.139
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9,080
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0.39
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70,580
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||
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Total
North Area A
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Inferred
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All
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Variable
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17,540
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0.34
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120,210
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South Area B
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Inferred
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Oxide
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0.107
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1,470
|
0.28
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8,160
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Transition
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0.124
|
320
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0.40
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2,540
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||
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Reduced
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0.139
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510
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0.30
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3,100
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Total
South Area B
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Inferred
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All
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Variable
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2,300
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0.30
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13,810
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Total
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Inferred
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All
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Variable
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19,850
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0.34
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134,020
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Notes:
1.
The Qualified
Person for the estimate is Mr. Todd Wakefield, RM SME, of Mine
Technical Services Ltd. The Mineral Resources have an effective
date of 5 June 2021.
2.
Mineral Resources
are reported at various cut-off grades for oxide, transition, and
reduced material.
3.
Mineral Resources
are reported within a conceptual pit shell that uses the following
assumptions: Mineral Resource V2O5 price of
$11.50/lb; mining cost: $2.90/st mined; process cost: $13.75/st;
general and administrative (G&A) cost: $1.00/st processed;
metallurgical recovery assumptions of 65% for oxide material, 56%
for transition material and 50% for reduced material; tonnage
factors of 16.86 ft3/st for oxide
material, 16.35 ft3/st for transition
material and 14.18 ft3/st for reduced
material; royalty: 2.5% net smelter return (NSR); shipping and
conversion costs: $0.625/lb. An overall 40° pit slope angle
assumption was used.
4.
Rounding as
required by reporting guidelines may result in apparent summation
differences between tons, grade and contained metal content.
Tonnage and grade measurements are in US units. Grades are reported
in percentages.
Mining & Processing
A
subset of the Gibellini and Louie Hill Mineral Resource estimates
were adopted in the 2021 PEA mine plan. Bisoni McKay Mineral
Resource estimate was not included in the mine plan in the 2021 PEA
to better reflect the Company’s already submitted plan of
operation in its permitting efforts.
Subset of the Gibellini Mineral Resource Estimate within the 2021
PEA Mine Plan
|
Leach Material
|
Domain
|
Cutoff V2O5
(%)
|
Tons ('000)
|
V2O5
Grade (%)
|
Contained V2O5
Lbs ('000)
|
|
Measured
|
Oxide
|
0.135
|
3,890
|
0.253
|
19,684
|
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Transition
|
0.135
|
3,944
|
0.378
|
29,824
|
|
|
Reduced
|
0.135
|
-
|
0.000
|
-
|
|
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Indicated
|
Oxide
|
0.135
|
6,246
|
0.240
|
30,024
|
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Transition
|
0.135
|
7,056
|
0.316
|
44,624
|
|
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Reduced
|
0.135
|
-
|
0.000
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-
|
|
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Total Measured and Indicated
|
|
|
21,136
|
0.294
|
124,156
|
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Inferred
|
Oxide
|
0.135
|
116
|
0.174
|
403
|
|
Transition
|
0.135
|
-
|
0.000
|
-
|
|
|
Reduced
|
0.135
|
5,183
|
0.163
|
16,919
|
|
|
Total Inferred
|
|
|
5,299
|
0.163
|
17,323
|
Subset of the Louie Hill Mineral Resource Estimate within the 2021
PEA Mine Plan
|
Leach Material
|
Domain
|
Cut-off(%)
|
Tonnage(kton)
|
V2O5(%)
|
V2O5(klb)
|
|
Inferred
|
Oxide
|
0.155
|
6,963
|
0.282
|
39,315
|
|
Transition
|
0.155
|
—
|
0.000
|
-
|
|
|
Reduced
|
0.155
|
—
|
0.000
|
-
|
|
|
Total Inferred
|
|
|
6,963
|
0.282
|
39,315
|
Capital
and operating costs for the 2021 PEA are based on supplying 3 Mt of
crushed and agglomerated leach material annually from two open pits
at Gibellini and Louie Hill. Initial mine development will be
focused on Gibellini, with Louie Hill following nine years
later.
Mining at the Gibellini and Louie Hill deposits is planned to be a
conventional open pit mine using a truck and loader fleet
consisting of 100-ton trucks and front-end loaders. A power line
would be constructed from an existing transmission line and water
will be leased from a private ranch. Both water and power sources
are within five miles of the planned mining
operations.
The average annual mine production during the 11.1 year mine life
will be 3.56 million tons of leach material (3 Mst) and waste (0.56
Mst) at a strip ratio of 0.18 (w:l).
|
Period
|
Total
|
Rock Waste
|
Oxide Leach
|
Transition Leach
|
Reduced Leach
|
Leach Total
|
V2O5
|
Contained
V2O5
|
ProducedV2O5
|
|
|
(kt)
|
(kt)
|
(kt)
|
(kt)
|
(kt)
|
(kt)
|
(% V2O5)
|
(mbls)
|
(mbls)
|
|
YR1
|
3,002
|
2
|
2,573
|
424
|
2
|
3,000
|
0.298
|
17,877
|
10,915
|
|
YR2
|
3,072
|
72
|
2,025
|
974
|
1
|
3,000
|
0.320
|
19,221
|
12,297
|
|
YR3
|
3,117
|
117
|
766
|
2,185
|
50
|
3,000
|
0.401
|
24,059
|
16,293
|
|
YR4
|
3,096
|
96
|
2,423
|
577
|
0
|
3,000
|
0.227
|
13,602
|
8,638
|
|
YR5
|
3,081
|
81
|
1,096
|
1,862
|
42
|
3,000
|
0.281
|
16,881
|
11,252
|
|
YR6
|
3,011
|
11
|
395
|
2,158
|
447
|
3,000
|
0.292
|
17,519
|
11,824
|
|
YR7
|
5,943
|
2,943
|
641
|
1,817
|
542
|
3,000
|
0.224
|
13,447
|
8,926
|
|
YR8
|
4,232
|
1,232
|
308
|
960
|
1,732
|
3,000
|
0.178
|
10,657
|
6,409
|
|
YR9
|
3,203
|
203
|
591
|
44
|
2,365
|
3,000
|
0.187
|
11,214
|
6,121
|
|
YR10
|
3,067
|
67
|
3,000
|
0
|
0
|
3,000
|
0.364
|
21,857
|
12,999
|
|
YR11
|
4,191
|
1,191
|
3,000
|
0
|
0
|
3,000
|
0.218
|
13,057
|
7,922
|
|
YR12
|
518
|
121
|
397
|
0
|
0
|
397
|
0.177
|
1,405
|
870
|
|
YR13
|
|
|
|
|
|
|
|
|
101
|
|
Total
|
39,533
|
6,136
|
17,215
|
11,000
|
5,183
|
33,397
|
0.271
|
180,794
|
114,568
|
Mining will be completed using contract mining, with Silver
Elephant’s mining staff overseeing the contracted mining
operation and performing the mine engineering and survey
work.
The processing method envisioned will be to feed leach material
from the mine via loader to a hopper that will feed a crushing
plant. The leach material will be fed to the agglomerator where
sulfuric acid, flocculent and water will be added to achieve
adequate agglomeration. The agglomerated leach material will be
transported to a stacker on the leach pad, which will stack the
material to a height of 15 feet. Once the material is stacked,
solution will be added to the leach heap at a rate of 0.0025
gallons per minute per square foot. The solution will be collected
in a pond and this pregnant leach solution (“PLS”) will
be sent to the process building for metal recovery. In the process
building, the PLS will go through solvent extraction
(“SX”) and stripping processes to produce vanadium
pentoxide.
Capital and Operating Costs
During
the capital period, an initial leach pad having a capacity of 16.7
Mst will be constructed, and will be followed by one expansion of
approximately 16.7 Mst. The total initial capital cost is estimated
at approximately $147 million.
Project Capital Cost Estimate
|
Cost Description
|
Total ($000s)
|
|
Open
Pit Mine
|
|
|
Mobile
equipment
|
122
|
|
On Site
Infrastructure
|
|
|
Site
preparation
|
2,740
|
|
Roads
|
1,577
|
|
Water
supply
|
2,263
|
|
Sanitary
system
|
69
|
|
On-site
electrical
|
2,325
|
|
Communications
|
187
|
|
Contact
water ponds
|
186
|
|
Non-process
facilities - buildings
|
8,594
|
|
Process
Facilities
|
|
|
Material
handling
|
21,730
|
|
Heap
leach system
|
22,033
|
|
Process
plant
|
24,167
|
|
Off-Site
Infrastructure
|
|
|
Water
system
|
5,095
|
|
Electrical
supply system
|
3,657
|
|
First
fills
|
975
|
|
Total Direct Cost
|
95,720
|
|
Construction
indirect costs
|
5,355
|
|
Sales
Tax/OH&P
|
5,333
|
|
EPCM
|
11,178
|
|
Contingency
|
29,396
|
|
Total Project Cost
|
146,982
|
Note: OH&P = overhead and profit, EPCM = engineering,
procurement and construction management
Sustaining
capital is estimated at $25.2 million.
Sustaining Capital Costs
|
Description
|
Total ($000s)
|
|
Leach
pad expansions
|
23,069
|
|
Haul
road to Louie Hill
|
814
|
|
Storm
water controls Louie Hill pit/waste rock
facility/roads
|
386
|
|
Equipment
annual allowance
|
971
|
|
Total Sustaining Capital
|
25,240
|
Operating
costs are estimated to average $16.12 per ton leached, or $4.7/lb
V2O5 recovered
Operating Costs
|
Total Cash Operating Cost
|
$ per Ton Leached
|
$ per lb of V2O5
Recovered
|
|
G&A
|
0.97
|
0.28
|
|
Mining
Cost
|
3.36
|
0.98
|
|
Total Processing
Cost
|
11.79
|
3.44
|
|
Total
|
16.12
|
4.70
|
The cash operating costs in the first half of the Gibellini project
covering years 1–7 is $4.20 per lb of V2O5
produced
and for years 8–12 is $5.87 per lb of V2O5
produced,
resulting in a weighted average cash cost of $4.70 per lb of
V2O5
produced
and all-in sustaining cost of $6.04/lb. The cash operating cost is
lower in the first half of the Gibellini project due to processing
of higher-grade material.
Vanadium Recoveries and Metallurgical Testing
Approximately 114.6 million pounds of V2O5
is expected
to be produced from the Gibellini and Louie Hill leaching
operations at an average recovery of 63.4% (oxide: 60%, transition:
70% and reduced: 52%). The heap leaching will be performed at
ambient temperature and atmospheric pressure without pre-roasting
or other beneficiation process. The PLS will be continuously
collected with leach material undergoing, on average, a 150 day
heap-leaching cycle.
The direct heap leach vanadium recovery estimates used in the 2021
PEA were based on extensive metallurgical test work performed by
SGS Lakefield Research Laboratories, Dawson Minerals Laboratories,
and McClelland Laboratories. Samples were selected from a range of
depths within the Gibellini deposit, and are considered to be
representative of the various types and styles of mineralization
within that deposit. Samples were obtained to ensure that tests
were performed on sufficient sample mass. The end results
demonstrated low acid consumption (less than 100 lb acid
consumption per ton leached) and high recovery through direct
leaching.
Solvent extraction processing was conducted to recover vanadium
from sulfuric acid PLS generated during pilot column testing on
bulk leach samples from the Gibellini project. Laboratory-scale
testing was conducted on select solutions generated during the
pilot SX processing, to optimize the SX processing conditions.
Additional laboratory scale testing was successfully conducted on
the loaded strip solution to purify, precipitate and extract final
marketable vanadium-bearing products.
Sensitivity Analysis
The tables below show the sensitivity analysis to the vanadium
pentoxide price, grade, and to the PEA capital cost and operating
costs. A sensitivity analysis to vanadium price indicates strong
project economics even in very challenging conditions, and that the
Gibellini project is well positioned to benefit from the current
rising vanadium price environment. A 30% increase in the vanadium
price to $13/lb V2O5 relative
to the base case translates to a 42% IRR and $295.4 million
after-tax net present value at a 7% discount
rate.
Sensitivity Analysis to Changes Vanadium Price
|
V2O5
Price Change
|
V2O5
Price
|
After-tax IRR
|
After-tax NPV
|
After-tax Cashflow
|
|
(%)
|
(US$/lb)
|
(%)
|
(US$ M @ 7%)
|
(US$ M)
|
|
45
|
14.50
|
49%
|
377.0
|
671.5
|
|
30
|
13.00
|
42%
|
295.4
|
536.8
|
|
15
|
11.50
|
34%
|
212.3
|
399.7
|
|
Base Case
|
10.00
|
25%
|
127.9
|
260.8
|
|
-15
|
8.50
|
14%
|
42.1
|
122.3
|
|
-30
|
7.00
|
0%
|
(55.8)
|
(38.9)
|
|
-45
|
5.50
|
0
|
(155.1)
|
(202.0)
|
Sensitivity Analysis to Changes in Vanadium Grades
|
Grade Change
|
After-tax IRR
|
After-tax NPV
|
After-tax Cashflow
|
|
(%)
|
(%)
|
(US$ M @ 7%)
|
(US$ M)
|
|
45
|
48%
|
363.8
|
649.7
|
|
30
|
41%
|
286.6
|
522.2
|
|
15
|
34%
|
207.7
|
392.2
|
|
Base Case
|
25%
|
127.9
|
260.8
|
|
-15
|
15%
|
46.9
|
130.0
|
|
-30
|
0%
|
(45.2)
|
(21.4)
|
|
-45
|
0
|
(139.0)
|
(175.5)
|
Sensitivity Analysis to Changes in Capital Cost Estimates
|
CAPX Change
|
After-tax IRR
|
After-tax NPV
|
After-tax Cashflow
|
|
(%)
|
(%)
|
(US$ M @ 7%)
|
(US$ M)
|
|
45
|
14%
|
69.2
|
197.5
|
|
30
|
17%
|
89.2
|
218.6
|
|
15
|
21%
|
108.6
|
239.7
|
|
Base Case
|
25%
|
127.9
|
260.8
|
|
-15
|
31%
|
146.9
|
281.9
|
|
-30
|
38%
|
165.8
|
303.0
|
|
-45
|
0
|
184.7
|
324.1
|
Sensitivity Analysis to
Changes in Operating Cost Estimates OPEX
|
Change
|
After-tax IRR
|
After-tax NPV
|
After-tax Cashflow
|
|
(%)
|
(%)
|
(US$ M @ 7%)
|
(US$ M)
|
|
45
|
8%
|
3.6
|
50.6
|
|
30
|
15%
|
49.2
|
128.5
|
|
15
|
21%
|
89.2
|
195.3
|
|
Base Case
|
25%
|
127.9
|
260.8
|
|
-15
|
29%
|
166.4
|
326.7
|
|
-30
|
33%
|
203.7
|
390.7
|
|
-45
|
0
|
239.9
|
452.6
|
Permitting
A Notice of Intent (“NOI”) to prepare an Environmental
Impact Statement (“EIS”) for the Gibellini project was
published on July 14, 2020 in the Federal Register. The NOI
commences the National Environmental Policy Act
(“NEPA”) review by the Bureau of Land Management
(“BLM”). The Gibellini project conforms to the current
U.S. administrations green energy initiatives and the EIS Record Of
Decision (“ROD”) is expected in early 2022. Operating
permits from the State of Nevada are on track to be received on the
same timeline as the ROD. The renewable energy alternative in the
EIS includes 6 MW of solar panels and a 10 MW vanadium flow battery
to provide 100% of the Gibellini project’s electrical power
demand. If selected by the BLM, the Gibellini project would be the
first mine in the US completely powered by renewable energy. The
Gibellini project would also be the first primary vanadium mine in
the U.S.
Vanadium as a Critical Metal
Vanadium was designated a critical material by the U.S. government
in 2018 due to its importance to the defense and energy storage
sectors and there being no domestic production with all supply
through imports, mostly from Russia, China, and South
Africa.
Vanadium alloy steel is 30% lighter than non-alloyed steel, with
double the tensile strength. It is used extensively in the
aerospace and defense sectors, as well as in skyscraper
construction. A structural vanadium deficit is expected to occur by
2025 with the rising popularity of the vanadium redox flow battery
which is a mature technology featuring up to an eight-hour duration
discharge and is scalable to hundreds of megawatt hours. Battery
life is projected to be a minimum of 20 years with no expected
degradation of the vanadium or the charge density.
Expansion Potential
Opportunity exists to upgrade the Gibellini, Louie Hill and Bisoni
Mckay Inferred Mineral Resources to higher confidence categories
through drilling, and to incorporate Bisoni McKay Mineral Resources
in future economic studies.
The acquisition of the Bisoni McKay deposit in September of 2020
significantly expanded the Company’s land position from
approximately 7 km of Woodruff Formation strike to 21 km . The
Woodruff Formation is the host of the vanadium mineralization in
the three deposits. Numerous vanadium-bearing surface rocks were
identified by the Company in its 2019 reconnssance program of
surface exposures of the Woodruff Formation. These may warrant
drill programs upon further investigation (see Company’s
press release dated May 26, 2019).
Data Verification
Data verification performed in support of the Mineral Resource
estimates included in the technical report that supports the 2021
PEA included site visits; review of QA/QC data, sampling analytical
data and drill campaigns; database verification; review of
metallurgical data and metallurgical recovery assumptions including
projected leach pad performance; review of mine and recovery plan
assumptions; and review of commodity price, capital and operating
cost assumptions
Qualified Persons
The following Qualified Persons (QPs) as defined in National
Instrument 43-101, Standards
of Disclosure for Mineral Projects (“NI
43-101”)
reviewed the information in this news release that is summarized
from the 2021 PEA in their areas of expertise:
Mr. Kirk Hanson, P.E., Wood, Technical Director, Open Pit
Mining;
Mr. Todd Wakefield, RM SME, MTS, Managing Partner and Principal
Geologist;
Mr. Piers Wendlandt, P.E., Wood, Principal Mining Engineer;
and
Mr. Alan Drake, P.L.Eng., Wood, Manager Process
Engineering.
Other technical contents of this news release not pertaining
directly to the 2021 PEA were prepared under the supervision of
Danniel Oosterman P.Geo, VP, Exploration with Silver Elephant. Mr.
Oosterman is not independent of the Company in that he is employed
as a consultant to the Company and most of his income is derived
from the Company. Mr. Oosterman is a Qualified Person as defined in
NI 43-101.
About Wood
Wood is a part of the Wood Group, a global leader in the delivery
of project, engineering and technical services to energy and
industrial markets. The Wood Group operates in more than 60
countries, employing around 55,000 people, with revenues of over
$10 billion.
About Silver Elephant
Silver Elephant Mining Corp. is a premier mining and exploration
company in nickel, silver, and vanadium.
Further information on Silver Elephant can be found at
www.silverelef.com.
Silver
Elephant Mining Corp
ON
BEHALF OF THE BOARD
“JOHN
LEE”
CEO and
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
Forward-looking
statements in this news release relate to future events or future
performance and reflect current estimates, predictions,
expectations or beliefs regarding future events and include, but
are not limited to, statements with respect to: (i) the 2021 PEA
representing a viable development option for the Gibellini project;
(ii) construction of minprojecting operations and related actions;
(iii) estimates of the capital costs of constructing mine
facilities and bringing a mine into production, of sustaining
capital and the duration of financing payback periods; (iv) the
estimated amount of future production, both produced and metal
recovered; and (vi) life of mine estimates and estimates of
operating costs and total costs, cash flow, net present value and
economic returns including internal rate of return estimates from
an operating mine constructed at the Gibellini project. All
forward-looking statements are based on Silver Elephant’s or
its consultants' current beliefs as well as various assumptions
made by them and information currently available to them. The
most significant assumptions are set forth above, but generally
these assumptions include: (i) the presence of and continuity
of vanadium mineralization at the Gibellini project at
estimated tonnages and grades; (ii) the geotechnical and
metallurgical characteristics of rock conforming to sampled
results; (iii) infrastructure construction costs and schedule; (iv)
the availability of personnel, machinery and equipment at estimated
prices and within the estimated delivery times; (v) currency
exchange rates; (vi) vanadium sale prices; (vii)
appropriate discount rates applied to the cash flows in the
economic analysis; (viii) tax rates applicable to the proposed
mining operation; (ix) the availability of acceptable financing on
reasonable terms; (x) projected recovery rates and use of a process
method, that although well-known and proven on other commodity
types such as copper, has not been previously brought into
production for a vanadium project; (xi) reasonable contingency
requirements; (xii) success in realizing proposed operations; and
(xiii) assumptions that project environmental approval and
permitting will be forthcoming from county, state and federal
authorities. The economic analysis is partly based on
Inferred Mineral Resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as Mineral Reserves, and
there is no certainty that the2021 PEA based on these Mineral
Resources will be realized. Currently there are no Mineral
Reserves on the Gibellini property. Although the
Company’s management and its consultants consider these
assumptions to be reasonable based on information currently
available to them, such assumptions may prove to be
incorrect. Many forward-looking statements are made assuming
the correctness of other forward-looking statements, such as
statements of net present value and internal rates of return, which
are based on most of the other forward-looking statements and
assumptions herein. The cost estimate and economic analysis
information was prepared using current values, but the time for
incurring the costs will be in the future and it is assumed costs
will remain stable over the relevant period.
These
factors should be considered carefully, and readers should not
place undue reliance on Silver Elephant’s or its
consultants’ forward-looking statements. Silver
Elephant and its consultants believe 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 Silver
Elephant and its consultants have 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.
Silver Elephant and its consultants undertake no obligation to
release publicly 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.