Pursuant to the JORC Resources Estimate at a 0.3% Ni lower cut-off grade as at 30 November 2011 prepared by Philip A. Jones, a competent person as defined in the Listing Rules of the GEM of the Stock Exchange, the reserve estimates were summarized below:
After six years' development and mining, the resource estimates of Baishiquan Nickel-Copper Mine as at 31 March 2018 were confirmed by the Group’s internal experts as follows:
The development of the Baishiquan Nickel-copper Mine has been completed. The full commercial production has been carried out in late 2015 and has become the main source of income of the Group since then. In the years ahead, we foresee the shortage in high-grade nickel content due to the increased demand of electric vehicle battery. Such shortage will gradually be reflected in the nickel market prices. However, the impact of Russian high-grade ores will become a new norm. It is expected that we shall be able to continue to sell high-grade nickel ores in 2018 but the Company will focus on the production of concentrates to avoid direct competition with Russian supply. Despite such change, the Company will still be benefited from the rising market demand for the electric vehicle battery.