17.4.9 Production Rate (pp86=87)

McWatters Mine production rate as determined by SRK varies over the Life of

mine (“LoM”) depending where the production is sourced.

The upper portion of the mine from surface to the 45m level is to be mined by

open pit and is scheduled to produce at an average rate of 1,400 tonnes per day

starting in March 2010 with completion in October 2010. Total mine

production scheduled from the pit is 245,000 tonnes at an average of 0.33%

Ni.

The sublevel cave/blasthole production rate averages 1,800 tonnes per day.

Total ore production scheduled from sublevel cave/blasthole is 546,000 tonnes

at 0.68% Ni.

In cut and fill stopes with a single face the production rate is 280 tonnes per

cycle while in a double face it is 560 tonnes per cycle. Total production

scheduled from cut and fill is 81,000 tonnes at 1.91% Ni.

Total planned mine production from McWatters is 872,000 tonnes at 0.70% Ni

mined at an average production rate of 1,500 tonnes per day from December

2009 through July 2011. Refer to Table 25.

Table 25. Production Rates by Mining Method