Black Point Project

Nova Scotia, Canada

Project Status

On April 26, 2016, the Black Point project received positive environmental assessment decisions from both federal and provincial authorities. The full decisions and related documents can be viewed at the Canadian Environmental Assessment Agency website and the Nova Scotia Environment website. On May 5, 2016, the Corporation received a $400,000 milestone payment from Vulcan following receipt of the positive provincial and federal environmental approvals. Morien is due to receive an additional $400,000 milestone payment from Vulcan upon the completion of related and pending permitting agreements for Black Point. Morien has an industry competitive royalty for the life-of-mine which is expected to continue for over 50 years.

In April 2018, Vulcan was granted a two-year extension by the Nova Scotia provincial government for the BP Project.

In March 2020, Vulcan applied for a second two-year extension for the BP Project and was subsequently granted approval in April 2020 by the Nova Scotia provincial government.

Vulcan has indicated the target market conditions for crushed stone from the Black Point location are still short of their original expectations.

While conditions are not yet ready for Black Point Aggregates to break ground, we maintain our strong interest in the Project,” said Frank Lieth, Vulcan’s Vice President of Black Point Aggregates Inc., a wholly owned subsidiary of Vulcan. “Although the time is not quite right to move forward, we will continue to invest in the project and work to meet the requirements outlined in the April 26, 2016, environmental approval. We are not going anywhere – we remain very much committed to the community, stakeholders, and agreements made.

According to the conditions of the extension, Vulcan must within two years of the approval of the date of the extension (April 2020), commence work on the BP Project unless granted a further written extension by the Minister of Environment.

Morien is receiving an advanced quarterly minimum royalty payment from Vulcan of $25,000 per quarter (“Minimum Royalty”), which began in Q3 2017. All Minimum Royalty payments will be credited against future production royalties from Black Point. The Minimum Royalty is subject to annual inflationary adjustments.

Project Description

Vulcan Materials Company (“Vulcan”), the United State’s largest producer of construction aggregates, purchased Morien’s rights to the Black Point Aggregate Project in Q2 2014 (click here for press release).

The proposed Black Point Project (“Project”) consists of the development and operation of a construction aggregate quarry and marine terminal in Guysborough County, Nova Scotia. The Project consists of quarry development and aggregate production on an undeveloped, 354 hectare property, along with the construction and operation of a marine terminal adjacent to the quarry in Chedabucto Bay. Processed aggregate will be off-loaded into Panamax size bulk carriers and transported to ports along the eastern and Gulf coast of the United States and potentially to markets in Canada and the Caribbean.

Black Point’s positive attributes include:

  • Sizeable resource of approximately 400 million tonnes according to Vulcan’s internal estimates;
  • Mine life of 50+ years;
  • Project is adjacent to deep water (>14 metres), which is sheltered and ice-free, enabling constructionof a deepwater marine terminal for aggregate shipment to the United States *;
  • Very high quality, “Class-A” construction aggregate well suited for the concrete and asphalt market; and
  • Black Point has received environmental permits and has strong community support.

* In the United States market, the majority (80% or more) of aggregates are transported by truck from the quarry to the consumer. This form of transport is expensive and limits the typical aggregate operation to a market radius of about 80 kilometres from the quarry. The south eastern United States aggregate market is a prime target for bulk vessel transported aggregate due in part to the geologic absence of suitable aggregate resources in coastal areas.

 

For more information on the Black Point Project, please visit the Black Point Quarry website by clicking here – www.blackpointquarry.com.

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