Project Update: NI 43-101 Cogburn Technical Report dated December 15, 2004 . - pdf format Leader Mining International: Project summary for feasibility study for Cogburn magnesium plant . - pdf format The potential to be a world-class, long-life producer of high-quality magnesium metal. - pdf format Cogburn Magnesium Project - Pre-Application to BC Environmental Assessment Office, Open House Report. - pdf format Project Description Project: Leader has optioned key mineral claims within a magnesium rich ellipsoid shaped body of ultramafic rocks. The rock unit strikes NW-SE for approximately 10 km, and has an average width of about 2 km. Geological mapping, surface sampling, and diamond drilling has confirmed that rocks consistently contain more than 25% magnesium, accompanied by only trace amounts of impurities. Such a large, potentially surface mineable, resource could provide many centuries of feedstock for a magnesium metal refinery. (British Columbia, Canada) Click here for a larger version Click here for a larger version Click here for a larger version Location: The project is centered at the junction of Talc Creek and Daioff Creek, in an active timber logging area, approximately 8 km east of Harrison Lake which is located about 20 km northwest of Hope, and about 100 km east of Vancouver, British Columbia. Scoping Study (2001): Under the direction of HATCH Associates Ltd., of Montreal, Quebec, bench-scale leaching tests and an engineering scoping study were performed. "The test work has demonstrated that the Cogburn magnesium silicate mineral can be efficiently leached to a pure magnesium chloride brine suitable for subsequent dehydration and fused salt electrolysis to magnesium metal." Using readily available commercially proven technologies, HATCH provided order of magnitude capital and operating cost estimates for conceptual projects producing 60,000 mt, 90,000 mt, and 120,000 mt of magnesium metal annually. The capital cost estimate ranged from US$616 million to US$1,017 million; and the operating cost ranged from US$0.67 / lb. to US$0.61 / lb. of magnesium, by using the current power and gas rates. The company is negotiating for lower energy rates to make the Project among the lowest cost producers in the world. Feasibility Study (2003): Mr. Roger C. Urquhart, Director - Light Metals, Hatch, states in the cover letter to the April 30, 2003 Feasibility Study, "in February 2002, Leader Mining International awarded Hatch the mandate to complete a Production Feasibility Study on the Cogburn Magnesium Project. The Cogburn Magnesium Deposit is a large ultramafic intrusive body containing consistently high-grade magnesium silicate (+24% magnesium). The discovery is located 120 kilometres east of Vancouver, British Columbia, Canada near the town of Hope. The location has a significant infrastructure advantage in that electric power, natural gas, mainline rail, provincial highways and barge access to nearby deep-sea ports are all adjacent to the property. In addition, the project is located in a mining and forest products extraction region with extensive supporting skilled labour and a broad spectrum of service industries. The enriched Emory Zone has been subjected to an intensive drilling and sampling program. Under the direction of HATCH, Process Research ORTECH has pilot tested a composite sample, for hydrochloric leach extraction of magnesium. In addition, leach solution was tested at Messo in Germany to define evaporation and crystallization parameters for the preparation of cell feed for the STI/VAMI magnesium electrolysis technology. In April 2002 Leader signed an option with STINAMI for the use of the magnesium electrolysis technology for the Cog burn Project. Successful testing has resulted in preliminary design parameters for development of the Cogburn Project flowsheet. The Cog burn deposit because of its large size, high magnesium grade, low impurity levels, favourable metallurgy, and proximity to infrastructure has the potential to be developed into a world-class, environmentally friendly, long-Iife magnesium operation. Process information generated during the Study was used to develop capital and operating costs for the project at the selected site location. Following discussions with BC Hydro and Duke Energy, energy costs have been established for the Cogburn Project. A market evaluation has been completed by Hatch and Leader Mining International proposes an aggressive entrance into the magnesium market. Total plant capacity is 131,000-mt/a magnesium metal and alloys. The choice of proven technology will minimize risk for the implementation of the Cogburn project. Hatch has determined cost objectives of US$1.24 billion for the construction of the plant facilities and a magnesium cash cost of US$0.70/lb magnesium, providing an internal rate of return in the range of 6.5 to 18.1% based on sensitivity analysis. The test-work and the engineering completed to-date indicate that the Cogburn Project is technically feasible and economically viable. Hatch looks forward to the opportunity of assisting Leader Mining International in the development of this Project and we thank you for your forthright assistance in this study." Magnesium Market: The average selling price for magnesium metal over the past 10 years has been US$1.55 / lb. The current world consumption of magnesium is approximately 400,000 mt per year, which is in balance with the current production levels. The consumption is projected to double within the next decade, which dictates the need for new production capacity in a politically stable and sound fiscal environment that can support long-term, un-interrupted, high-quality magnesium supply. The main force driving the demand is the need to produce lightweight automobiles which reconcile consumer preferences for larger vehicles with government moderated fuel economy standards. Auto manufacturers are seeking long-term stable suppliers for the next 15-20 years. The production target for the Cogburn Project is slated at 131,000 mt per annum for a minimum of a 25 year mine-life. Such production levels from the large ultramafic body are sustainable for several hundred years. Infrastructure: The nearby Fraser River Valley provides a major infrastructure corridor containing road, rail, natural gas pipelines, and three high-voltage power transmission lines. The CPR and CNR mainline are adjacent to Highway 7 and Highway 1 respectively; all of which run through Hope. Vancouver is an international port that provides easy access to the North American and Asian Markets. A large, highly skilled workforce is available from the Greater Vancouver-Abbotsford-Chilliwack-Hope population centres. Environmental Studies: Baseline environmental studies are advanced since they were necessary for logging operations, natural gas pipeline, 500KV grid power transmission lines (3), Highway 7 and CP Rail which utilize the Fraser River corridor. LMN filed a Preliminary Project Environmental Application with the British Columbia Environmental Assessment Office in mid 2002. Comments on the application from provincial and federal government agencies facilitated scoping of the environmental and socio-economic aspects of the 2003 Feasibility Study to accommodate the necessary activities and to address the defined parameters. In 2005 further field work on flora/fauna studies (Keystone Wildlife Research Ltd.) and dispersion modeling of potential emissions to the atmosphere have been ongoing (Levelton Consultants Ltd.). On October 18, 2005, NPAL filed its Draft Terms of Reference for the Cogburn Magnesium Project to the BC Environmental Assessment Office. Lorax Environmental Services Ltd. is the lead consultant on all of the environmental and permitting aspects of the Cogburn Project.