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The Malmbjerg deposit is located in eastern Greenland and is one of the highest grade molybdenum projects amenable to open pit mining that is currently being considered for development. The rights to the project are held by International Molybdenum plc ("Intermoly") Quadra's 98% owned subsidiary. Prior to the acquisition, Intermoly had identified an NI 43-101 Technical Resource and proposed a conventional open pit operation with a production rate of approximately 25 million pounds per year of molybdenum -- approximately 4.5% of current global demand. Planned molybdenum production would be shipped from a port facility to be developed about 65 km south of the project, to customers in Europe and North America. Location and Climate: The project is approximately 200 kilometers northwest of Scoresbysund, the nearest settlement. The nearest city with international port and air connections is Reykjavik in Iceland, located about 700 kilometres to the south-east of Malmbjerg. Greenland is the world's largest island and is approximately 80% ice-capped. The climate is sub-arctic with cool summers and cold winters and there is continuous permafrost over the northern two-thirds of the island. The Malmbjerg deposit is located within a mountain range in an alpine region near the coast, and while the project is remote, both the mining and the processing operations are technically straightforward. Development is expected to be typical of that required for high arctic mines, such as those in Canada and Alaska. Recent History and Developments: On May 16th, 2008 the Company acquired an aggregate of 21,467,502 common shares in the capital of InterMoly from two minority shareholders who retained their shares following the acquisition by the Company of 82.5% of the outstanding share capital of InterMoly in 2007. As a result of this acquisition, Quadra has increased its ownership of InterMoly from 82.5% to 98.2%. During 2005, Intermoly undertook an extensive infill and confirmation drill program that validated historical work by AMAX Mining Co. (now part of Freeport McMoran) and others. As a result of this program, a NI 43-101 compliant Measured and Indicated Resource of 560 million pounds of contained molybdenum was produced. Further studies were completed of alternative mining methods, the location of facilities, metallurgical parameters and infrastructure considerations. Internmoly commissioned a pre-feasibility study to incorporate the results of the various studies completed to date and to provide a concept upon which to base the bankable feasibility study. The pre-feasibility studies were deferred so as to allow Quadra to carry out a strategic review of the underlying assumptions. Following the acquisition by Quadra of its stake in Intermoly, feasibility level studies commenced in order to generate the information required to make a development decision. The budget through to the end of the study period is US$15 million with a completion target for the first half of 2008. Health and Saftey There have been no Lost Time Accidents or Reportable Incidents at the Malmbjerg project since the Company acquired the majority interest in 2007. Estimated Operating Parameters: It is envisioned that the project would be developed as a conventional open pit mine, starting from the western side of the deposit where it outcrops to surface. Processing of the ore would be by conventional grinding and flotation, producing a concentrate for shipment to roasting or other conversion facilities. The tailings would be placed in a tailings pond to be located just downhill from the process plant.
Malmbjerg Outlook: The immediate objective going forward is to confirm the economics of the project, explore funding opportunities and to establish a development strategy. Ongoing feasibilities level studies include in-fill and geotechnical drilling designed to add drill density and convert some material previously categorized as waste to ore. Other work includes pilot plant testing of a bulk sample, environmental permitting applications, basic engineering and cost studies. Based on preliminar estimates, the capital cost of the project could be approximately $1 billion (including contingency). An updated NI 43-101 compliant Technical Report will follow this exercise and will allow the company to firm up design criteria and optimise development and execution concepts. Discussions with the Bureau of Minerals and Petroleum (the "BMP") continue in connection with an application for an exploitation licence. While the application is still pending a modified program will continue for 2008. Considering the size and scope of the project, Quadra may seek a partner or partners to advance the project through to production. Mineral Resource and Mineral Reserve Estimates: The Malmbjerg resource, which adheres to the 2000 Classification of Mineral Resources and Mineral Reserves of the Canadian Institute of Mining, Metallurgy and Petroleum, and in accordance with the standards set out in NI 43-101, is classified as Measured, Indicated or Inferred. The qualified person responsible for the report is David. W. Rennie, P. Eng of Roscoe Postle Associates (RPA.) Malmbjerg Deposit – Measured and Indicated Mineral Resources
Malmbjerg Deposit – Inferred Resources
This resource compares well with other projects that are under consideration for development and amenable to open pit mining.
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