MINERAL RESOURCES AND RESERVES

The notions of mineral resources and reserves used by Inco and Vale Inco Nouvelle-Calédonie are the same as those defined and adopted by the Canadian Institute of Mining, Metallurgy and Petroleum in 2003, which are used as a reference for Canadian regulatory requirements.

Mineral resources

Mineral resources correspond to a concentration or presence of a natural, solid, organic or inorganic fossilised material, in or on the earth’s crust, in sufficient quantity or of sufficient quality for profitable extraction to be reasonably considered.

The geographical situation, the quality, the content, the geological characteristics and the continuity of the mineral resource are known, estimated and interpreted using specific geological tests and knowledge.

Mineral resources are subdivided into three categories according to the quantity and quality of data available on the section of the deposit under consideration. Therefore, a distinction is made, from least certain to most certain:

• Inferred resources
• Indicated resources
• Measured resources

Reserves

Ore reserves are the economically exploitable element of the indicated mineral resources measured by, at least, a preliminary feasibility study. The study should include adequate information on the mining method, the process, metallurgy, the economic parameters and any other relevant factor demonstrating that economic extraction may be justified. Mineral reserves are subdivided into:

• Likely mineral reserves (corresponding to indicated resources)
• Proven mineral reserves (corresponding to measured resources)

Resources and reserves of the Goro Plateau

Proven and likely reserves in the initial mining area of the Goro Plateau total 120 million tonnes, with an average nickel content of 1.48% and a cobalt content of 0.11%.

As well as reserves, there are around the initial mining area indicated and measured resources estimated at 75 million tonnes, giving a nickel content of 1.49% and a cobalt content of 0.12%.

These estimations come from studies carried out at the end of 2005.