Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 159

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 159
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 drifts, and submitting a number of samples for proof-of-concept metallurgical testing. PREM has also initiated an
internal study into the feasibility of the open pit concept and is exploring conceptually with limited test information several different
processing options.

The
Selkirk MRE serves as a solid foundation for advancing the Selkirk deposit to an economic study. It was prepared using results from 232
surface and 10 underground historical drillholes drilled between 2003 and 2016, five 2016 drillholes sampled by PREM in 2021, and 17
historical drillholes resampled in 2024. Analytical results from PREM re-sampling showed higher PGE values compared to historic results
and additional resampling is expected to result in higher Pt and Pd grades and contained metal.

Further,
the Selkirk MRE was prepared under the conceptual processing scenario of producing two separate concentrates. Additional work on alternate
processing options may result in higher recoveries. Cobalt, a potentially valuable by-product, has not been included in the Selkirk MRE
as cobalt analyses are not consistently available throughout the deposit. Planned metallurgical studies will determine payability of
cobalt at the Selkirk Mine.

Exploration
programs have also been ongoing at the prospecting licences located adjacent to the Selkirk mining licence, with a DGPS of seven historical drillhole collars and two surface electromagnetics surveys completed in Q2 2024. The strongest
electromagnetic anomaly occurs over the Rooikoppie Prospect, a gossan that was targeted by BCL drill holes. These five holes were located,
DGPS coordinates collected, and two holes, DRKP001 and 002, were sampled in Q3 2024. Assays showed
no significant results in Ni, Cu, or PGEs.

Studies

PREM
intends to use flotation to produce a concentrate for commercial sale or for further refining. Concentrate options are being investigated
and include separate nickel and copper concentrates, and a bulk concentrate.

Metallurgical
study programs were carried out by SGS in Lakefield for separate copper and nickel concentrate production at a conceptual level. The
conceptual process flowsheet developed by SGS includes the key unit operations of crushing, grinding, and flotation. PREM analyzed select
SGS test results on key flotation parameters observed in the production of separate nickel and copper concentrates to simulate estimated
metal grades and recoveries for bulk concentrate.

The