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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Savannah Resources Plc | AQSE:SAV.GB | Aquis Stock Exchange | Ordinary Share | GB00B647W791 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.35 | 3.20 | 3.50 | 3.35 | 3.35 | 3.35 | 0.00 | 06:56:49 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMSAV
RNS Number : 5296O
Savannah Resources PLC
08 November 2016
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
8 November 2016
Savannah Resources Plc
Initial 3.5 Billion Tonnes Heavy Mineral Sands Resource Defined
Mutamba Consortium, Mozambique
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), announces an initial resource estimation over two of the four deposits currently defined at the Mutamba project in Mozambique (the 'Project' or 'Mutamba') (Figures 1-4). Mutamba, which was previously operated solely by Rio Tinto, forms part of the larger Mutamba/Jangamo Project currently being developed under a Consortium Agreement between Savannah and Rio Tinto, as announced on 11 October 2016. Savannah holds a 10% interest in the joint project with the right to earn up to 51%, subject to key milestones being met. To view the press release with the illustrative maps, diagrams and JORC Table 1 please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/5296O_-2016-11-7.pdf
HIGHLIGHTS:
-- Initial Indicated and Inferred Mineral Resource Estimate of 3.5 billion tonnes at 3.8% Total Heavy Minerals (THM)
-- Mineral Resource Estimate contains 81 million tonnes ("Mt") of ilmenite, 2.2Mt rutile and 3.8Mt zircon
-- 52% of Mineral Resource in the Indicated Category, 48% in the Inferred Category
-- Initial resource calculation covers the Jangamo and Dongane deposits at Mutamba - note the Jangamo deposit includes both Rio Tinto's Jangamo deposit and Savannahs Jangamo deposit where an established resource of 65Mt at 4.2% THM was previously defined
-- Resource compares favourably against Mozambique mineral sands producer Kenmare Resources 31 December 2015 global resource of 6.5Bt at 2.9% THM and mining reserve of 1.6Bt at 3.3%THM
-- Resource estimation in respect of the Ravene and Chilubane deposits still to be completed
-- Mineral Resource Estimate of the Jangamo and Dongane deposits has defined large areas of >5%THM, which will form the focus of the upcoming scoping study
-- A scoping study which is expected to take 3-4 months will commence shortly
Savannah's CEO, David Archer said:
"The completion of our initial Mineral Resource Estimation of the Jangamo and Dongane deposits is a major milestone for Savannah and our consortium partner, Rio Tinto. The results underscore the fact that the Mutamba project is one of the largest ilmenite dominant, mineral sands accumulations on the east coast of Africa.
"While we are delighted with the outcome, what it really means is that we now have an exceptional foundation for our scoping study of the Project. The scoping study will focus on the areas of mineral occurrence which are most prospective in terms of size and grade, with little to no overburden factors, which should facilitate simple, low cost mining. Savannah believes that there is an excellent opportunity to potentially define an initial phase, low capex, long life, dry mining project of around a 200Mt well graded resource, associated with a series of reworked coastal dunes.
"The Project is well located with easy access to a power line, the EN1 highway, the Inhambane bay (which is naturally protected from the elements) and the Inhambane airport, providing significant advantages to any potential development. We believe that the Inhambane and Gaza Provinces, where the deposits are located, are an excellent investment destination within the country."
Figure 1. Mutamba Project Location Map - see PDF link
Jangamo and Dongane Mineral Resource Estimation
The Mutamba Project comprises four main deposits, namely Jangamo, Dongane, Ravene and Chilubane. The initial Mineral Resource Estimation covers the Jangamo and Dongane deposits only, with work now underway on defining the JORC resources for Ravene and Chilubane.
The resource being defined at the Mutamba includes the current established resource of 65Mt at 4.2% THM defined at Savannahs Jangamo Project. The two projects together form the unified Mutamba Project being developed by Savannah in conjunction with Rio Tinto.
Table 1. Mineral Resource Estimates for the Jangamo and Dongane deposits
Hot Features
Premium
Resources Category Sand % THM* % Ilmenite % Ilmenite % Rutile % Zircon THM Ilmenite Rutile Zircon
(Mt) in THM in sand in sand in sand (Mt) (Mt) (Mt) (Mt)
-------------- ---------- ----- ------ ---------- ---------- -------- -------- ----- -------- ------ ------
Jangamo
Indicated
1336L Indicated 1780 3.8 62 2.4 0.06 0.11 68 42 1.1 2.0
-------------- ---------- ----- ------ ---------- ---------- -------- -------- ----- -------- ------ ------
Jangamo
Inferred
1336L Inferred 200 3.5 63 2.2 0.03 0.11 7.1 4.5 0.1 0.2
-------------- ---------- ----- ------ ---------- ---------- -------- -------- ----- -------- ------ ------
Jangamo
Inferred
3617L Inferred 65 4.2 60 2.5 0.08 0.15 2.7 1.6 0.1 0.1
-------------- ---------- ----- ------ ---------- ---------- -------- -------- ----- -------- ------ ------
Dongane Inferred 1400 3.8 61 2.3 0.07 0.10 54 33 1.0 1.4
-------------- ---------- ----- ------ ---------- ---------- -------- -------- ----- -------- ------ ------
Total Jangamo & Dongane ** 3500 3.8 62 2.35 0.06 0.11 130 81 2.2 3.8
-------------------------- ----- ------ ---------- ---------- -------- -------- ----- -------- ------ ------
* THM is "Total Heavy Mineral", minerals with specific gravity greater than 2.85g/cm3.
** Tonnes and grades have been rounded and small differences appear in the totals.
The Mineral Resource Estimation was based on an assimilation of the data produced by Rio Tinto together with updated block models and by applying economic cut-offs to produce current estimates of the Jangamo and Dongane resources.
Variography conducted on the drilling samples of Jangamo and Dongane provided the necessary ranges to specify the following ellipsoids for the different geological units.
Unit Major Azimuth Major Diam Minor Diam Z Diam --------- -------------- ----------- ----------- ------- Dune 1 135 2600 2000 28 --------- -------------- ----------- ----------- ------- Dune 2 45 700 660 24 --------- -------------- ----------- ----------- ------- Dune 3 0 760 340 30 --------- -------------- ----------- ----------- ------- Fluvial 0 700 380 18 --------- -------------- ----------- ----------- -------
The wireframe shapes provided by Rio Tinto were imported and simplified. For the Jangamo model, this resulted in a 94% reduction in file size, while honouring the original shapes. For Dongane, a less manually intensive method was tried, and a 50% reduction in size was achieved using open-source software tools. This reduction was sufficient to allow subsequent block modelling.
New block models were created within the simplified wireframe models using the same block size and coordinate offset as the Rio Tinto models.
The Valuable Heavy Mineral ("VHM") values in the block models were used to calculate "Supported Grade" values. The same process was also applied to the models where Supported Grade values had previously only been calculated for THM.
Using a number of cost, recovery and revenue assumptions (partly based on other operations of similar scale), an economic cut-off of 1.7% VHM has been estimated, equating to about 2.6% THM, depending on the mineral assemblage. The 1.7% VHM supported grade surface was used to define the base of the resource. This resource was subsequently trimmed to exclude poorly drilled areas, or small isolated outliers.
Figure 2. Mutamba Project Deposit Location Map - see PDF link
Figure 3. Drill hole location map for the Jangamo and Dongane Deposits - see PDF link
Figure 4. Heavy Mineral grade distribution for the Jangamo and Dongane Deposits - see PDF link
Competent Person
The information in this document that relates to exploration results is based upon information compiled by Mr Dale Ferguson, Technical Director of Savannah Resources Limited. Mr Ferguson is a Member of the Australian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Ferguson consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.
The information in this document that relates to the resource estimation is based upon information compiled by Mr Colin Rothnie, an independent consultant. Mr Rothnie is a Member of the Australian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Rothnie consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
**S**
For further information please visit www.savannahresources.com or contact:
David Archer Savannah Resources plc Tel: +44 20 7117
2489
David Hignell / Gerry Beaney Northland Capital Partners Tel: +44 20 3861
(Nominated Adviser) Ltd 6625
Jon Belliss / Elliot Hance Beaufort Securities Tel: +44 20 7382
(Corporate Broker) Ltd 8300
Charlotte Page / St Brides Partners Ltd Tel: +44 20 7236
Lottie Brocklehurst 1177
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, development company.
Mozambique
Savannah operates combined projects with Rio Tinto, and can earn a 51% interest in heavy mineral sands projects in Mozambique, which have a combined exploration target of 7-12Bn tonnes at 3-4.5% THM (published in 2008). Under the terms of the agreement with Rio Tinto Savannah must deliver the following to earn corresponding interest in the combined projects: Scoping Study - 20%; pre-feasibility study - 35%; feasibility study - 51%. Additionally, the Consortium Agreement includes an offtake agreement on commercial terms for the sale of 100% of production to Rio Tinto (or an affiliate).
Oman
Savannah has interests in two copper blocks in the highly prospective Semail Ophiolite Belt in Oman. The projects, which have an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper and high grade intercepts of up to 56.35m at 6.21% Cu, with additional gold upside potential, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper and gold producer in a relatively short time frame. Together with its Omani partners, Savannah aims to outline further mineral resources to provide the critical mass for a central operating plant to develop the deposits, and in December 2015 outlined exploration targets of between 10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4% copper.
Finland
Savannah has Reservation Permits over two new lithium projects, Somero and Erajarvi, covering an area of 159km(2) in Finland. Savannah holds a 100% interest in these projects through its Finnish subsidiary Finkallio Oy. Geological mapping by the Finnish Government within the project areas has highlighted the presence of lithium minerals spodumene, lepidolite and petalite with the Government also identifying Somero and Erajarvi as one of the most prospective areas to discover lithium deposits in Finland. Savannah plans to initiate an exploration programme including data compilation, geological mapping and surface sampling with the aim of generating drill ready targets during 2016.
JORC Code, 2012 Edition - Table 1: Jangamo Deposit: Indicated & Inferred Resource
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling
techniques * Nature and quality of sampling (eg cut channels, * Four types of drilling used: hand auger, vibracore,
random chips, or specific specialised industry air core RC, and sonic drilling. 85% of the drilling
standard measurement tools appropriate to the is aircore RC.
minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad * Drill samples taken either at 1.5m or 3m intervals.
meaning of sampling.
* Total Heavy Mineral (THM), +1mm oversize and -0.045mm
* Include reference to measures taken to ensure sample "slimes" fractions determined on all drill samples.
representivity and the appropriate calibration of any
measurement tools or systems used.
* Mineralogy of the THM from selected drill composites
determined by QEMscan and XRF.
* Aspects of the determination of mineralisation that
are Material to the Public Report.
* In cases where 'industry standard' work has been done
this would be relatively simple (eg 'reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay'). In other cases more
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of detailed
information.
Drilling Drilling Drillholes Metres Percent
techniques * Drill type (eg core, reverse circulation, open-hole Statistics of Metres
hammer, rotary air blast, auger, Bangka, sonic, etc) For the Jangamo Drilled
and details (eg core diameter, triple or standard Resource
tube, depth of diamond tails, face-sampling bit or ------------------ ----------- ------- -----------
other type, whether core is oriented and if so, by Hand Auger 112 1 250 4%
what method, etc). ------------------ ----------- ------- -----------
RC-NQ 694 24 207 85%
------------------ ----------- ------- -----------
Sonic 27 1 352 5%
------------------ ----------- ------- -----------
Hand Auger Vibracore
BQ 166 1 621 6%
Reverse Circulation ------------------ ----------- ------- -----------
Total 999 28 430
------------------ ----------- ------- -----------
Vibracore
* All hand auger samples were collected over 1.5m
Sonic Drilling intervals with depths rarely exceeding 15m. After
retrieval, samples were placed in calico or canvas
bags and labelled with the hole number and sample
interval. An inherent problem with the hand auger
technique is over sampling, with the collected sample
interval presenting a larger volume than the
theoretical volume. Hand auger drilling is also
impossible in clays or wet sands below the water
table.
* Reconnaissance hand-auger drilling is mostly used to
locate the major anomalous mineralised areas. Sample
quality is low compared to other drilling methods and
hand-auger drillholes have been superceded with later
drilling of better quality. However the hand-auger
drillholes contain valuable mineralogy results, so
they have been retained for the final block model.
* 85% of the drilling consists of reverse circulation
air-core drilling with NQ hole diameter approx 75mm.
Four different RC rigs were used. The size and
capabilities of the different RC drill rigs change
with the air compressor capacities between 1000kPa
and 1600kPa. The RC rigs operate using compressed air
as the flushing medium which is sent down the
borehole between the outer and inner tubes. Although
water can be added to aid sample recovery no polymer
was used during drilling. Tungsten carbide tipped
bits are used to advance the face of the hole and all
holes were drilled vertically.
* Reverse circulation drill samples were collected over
3m intervals. A pocket PC was used with the
Fieldworker software, where all samples were
described and field estimates introduced. Sample logs
provide information such as description of sediments
(colour, grain size, sorting), field estimations for
THM, interval, depth and comments on variations of
the sedimentary and geomorphologic characteristics of
the terrain.
* Vibracore drilling was used on wetlands or areas
where the water table is shallow (6% of the total
metres drilled within the resource boundary). The
Vibracore unit comprises a 1m long sampler with OD
50mm and ID 44.4mm and 1.5m length rods. The
technique operates by applying a vibrating motion to
the surrounding sand through the application of an
oscillating motion to the drill string generated at
the drill head using a motor. The vibration
essentially liquefies the ground and the drill
penetrates under its own weight without the need of
rotation.
* Sonic drilling employs a resonance-vibratory
technique with high frequency mechanical vibration
and no flushing medium to take continuous samples and
to advance drilling rods into the ground.
* The Sonic rig employed in Mozambique used a '4 x 6'
system in which a 4 inch (100mm internal diameter)
core barrel is advanced 1.5, 3 or 6m followed by a 6
inch casing string which is advanced over the 4 inch
core barrel to the bottom of the hole. Commonly 6m or
6m runs were used with the choice of core barrel
advancement dependant on recovery i.e. 6m run used
when experiencing good recovery, and a 3m run used
when recovery was poor.
* Sample quality from Sonic drilling is excellent and
the objective of the sonic drilling programme was to
obtain samples that would test the validity of the RC,
Vibracore, and Hand Auger samples, in addition to
verifying the accuracy of the different drill rigs
and contractors that completed earlier drill
programmes.
Drill sample
recovery * Method of recording and assessing core and chip * Hand auger samples are commonly contaminated with
sample recoveries and results assessed. material falling down the hole as drilling proceeds.
Samples that were larger than expected were logged as
possibly contaminated.
* Measures taken to maximise sample recovery and ensure
representative nature of the samples.
* In Reverse Circulation drilling the sample is
retrieved by air flushing where the sample is blown
* Whether a relationship exists between sample recovery up the inner core barrel through a collection hose
and grade and whether sample bias may have occurred into a plastic sample bag. The samples were collected
due to preferential loss/gain of fine/coarse in heavy duty plastic bags held in a cyclone close to
material. the drill rig (different types of cyclones were
designed for different drilling programmes). The
whole sample was collected in the field.
* Dry sample weights were recorded at the laboratory
and are a measure of sample recovery. The theoretical
weight of a 1m NQ sample is about 7kg. With this
drilling method, there is normally lower than average
recovery at the top of the drillhole due to sample
losses into the surrounding soil (the air pressure of
the system, combined with the weight of the rods and
relatively low back-pressure of the surrounding sands
causes sand near the bit face to be pushed outwards
into the surrounding ground). Additionally, below the
water table sample recovery can be greater than 100%
as water flow causes the hole to have a greater
diameter than the drilling bit. Good drilling
techniques are used to minimise the effects of both
of these problems. During RC drilling, the best
samples are "moist lumps" where there has been no
possibility of fines segregation (blow-over) or
losses of THM due to separation in water.
* For the Vibracore drilling the drill string is
advanced in 1.5m runs with the sample retrieved from
each run using a hand pump. The hand pump has a
gravity valve which is designed to allow sample to be
pushed into the sampler and prevents it from being
lost. The sample retrieved by the sampler is placed
in buckets until the full depth of the interval is
reached and then transferred to sample bags. Samples
were dried and weighed at the laboratory, giving a
measure of sample recovery.
* Samples are retrieved from the Sonic drilling using a
core barrel. Samples are vibrated out of the core
barrel into a plastic sleeve, and present very much
like a core sample (see the picture to the left).
There is normally a small amount of sample
compression with the sonic technique (associated with
the wall thickness of the coring tubes), and the
length of core retrieved is sometimes slightly longer
than the penetration depth. Sonic drilling provides
the best sample recovery and sample quality of all of
the methods.
Logging
* Whether core and chip samples have been geologically * Hand auger samples were recorded on paper field logs
and geotechnically logged to a level of detail to or electronically with Pocket PC devices.
support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
* RC samples were logged on-site using either a paper
log or Pocket PC using the Fieldworker program.
* Whether logging is qualitative or quantitative in Sample logs provide information such as description
nature. Core (or costean, channel, etc) photography. of sediments (color, grain size, sorting), field
estimates of THM, interval depth and comments on
variations of the sedimentary and geomorphologic
* The total length and percentage of the relevant characteristics of the terrain.
intersections logged.
* Logging of the Vibracore samples was the same as for
the reverse circulation and hand auger holes, all
samples were logged on-site using a paper log or
Pocket PC.
* At the Sonic drilling sites, only small pinch was
taken from the bottom of the core for description of
the sample, estimation of THM% and deciding if the
hole should be terminated. For each 3m or 6m interval
of sample, this information was transcribed to a
paper log for quick reference prior to the completion
of the logging at camp.
* Detailed sample logging was then completed at camp.
The samples collected were logged in 3m intervals.
For 6m runs, the measured length of the run was split
in half producing two separate 3m samples. Each
sample was logged using a paper log sheet which was
later entered into the field database.
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * Hand auger samples were homogenised and then reduced
and sample half or all core taken. using "cone and quartering" splitting technique in
preparation the field.
* If non-core, whether riffled, tube sampled, rotary
split, etc and whether sampled wet or dry. * For the RC, Vibracore and Sonic drilling methods, the
whole drill samples were delivered to the laboratory.
* For all sample types, the nature, quality and
appropriateness of the sample preparation technique. * After delivery to the Inhambane laboratory, samples
were checked, dried and then riffle split down to a
nominal size of 350g.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of
samples. * This split size is high (ie more conservative)
relative to other operators globally, where heavy
mineral sand sample splits of 100 to 200g are more
* Measures taken to ensure that the sampling is common.
representative of the in situ material collected,
including for instance results for field
duplicate/second-half sampling. * Sample duplicates were inserted at rate of 1:15 to
check laboratory accuracy, with good results.
* Whether sample sizes are appropriate to the grain
size of the material being sampled. * Sonic drillholes were used to "twin" earlier drilling
as a check of in-situ values. The results showed good
repeatability for the RC drilling, but only fair
results for the hand-auger drilling. This is expected
given the limitations of the method.
Quality
of assay * The nature, quality and appropriateness of the * Sieving to determine +2mm (oversize) and -45micron
data and assaying and laboratory procedures used and whether (slimes).
laboratory the technique is considered partial or total.
tests
* Heavy mineral separation using heavy liquid to
* For geophysical tools, spectrometers, handheld XRF separate THM from other minerals (predominantly
instruments, etc, the parameters used in determining quartz).
the analysis including instrument make and model,
reading times, calibrations factors applied and their
derivation, etc. * Control procedures include laboratory duplicates,
blind duplicates and standard samples.
* Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory * In Rio Tinto labs, LST was used and density is
checks) and whether acceptable levels of accuracy (ie monitored and kept above 2.85 Samples prepared at SGS
lack of bias) and precision have been established. were separated in TBE diluted with acetone to
maintain a 2.85 density.
Verification
of sampling * The verification of significant intersections by * 64 twinned holes completed. Sonic drillholes used to
and assaying either independent or alternative company personnel. check other types of drilling show good correlation
with RC and Vibracore drilling, but lower correlation
with hand-auger results (this may reflect the lower
* The use of twinned holes. survey accuracy of the hand auger holes than problems
with the drilling technique itself). Twin holes of
RC/RC and Vibracore/Vibracore types show good
* Documentation of primary data, data entry procedures, correlation.
data verification, data storage (physical and
electronic) protocols.
* Most of the field data is entered into computers in
the field. In places where paper logs are used, the
* Discuss any adjustment to assay data. information has been transcribed and entered into
databases.
* Samples are delivered to the laboratory with a sample
submission form.
* At the laboratory, samples are checked against the
submission document and entered into the laboratory
systems.
* Different laboratories were used. Those with the best
practices used barcode control and scales linked to
the computer systems (laboratory information
management systems - LIMS). Other laboratories
recorded results by hand and transcribed them into
the database systems. These systems are inherently
less reliable due to typographical and hand-writing
errors, however at the time of the analyses, this was
the method used at many major commercial
laboratories.
* Assays and other drilling data are recorded in the
Acquire data management system, which includes many
integrity checks.
* No adjustments have been made to the laboratory data.
Location
of data * Accuracy and quality of surveys used to locate drill * The majority of holes used in the model were surveyed
points holes (collar and down-hole surveys), trenches, mine using differential GPS. Hand-held GPS was used to
workings and other locations used in Mineral Resource locate drillholes in the early phases of
estimation. reconnaissance and exploration. Levels for drillholes
not accurately surveyed were determined using LIDAR.
* Specification of the grid system used.
* Drillholes are positioned using UTM zone 36S, WGS84
datum.
* Quality and adequacy of topographic control.
* Despite the highly variable dune topography across
much of the region, excellent control has been
established using the LIDAR survey.
Data spacing
and * Data spacing for reporting of Exploration Results. * Drill spacing for much of the resource is 250 x 250m,
distribution although zones along the eastern side of the resource
are at 350 x 350m drill spacing and a small area in
* Whether the data spacing and distribution is the north-eastern section of the resource is drilled
sufficient to establish the degree of geological and at 500 x 500m. Variography shows that the bulk of the
grade continuity appropriate for the Mineral Resource resource lies within the variogram range of at least
and Ore Reserve estimation procedure(s) and one drill sample. Areas that required a larger
classifications applied. ellipsoid are found along the very edge of the
resource, and in the 500 x 500m drilled zone in the
north-east.
* Whether sample compositing has been applied.
* Sample composites were used to determine mineralogy
of the THM.
Orientation
of data * Whether the orientation of sampling achieves unbiased * Three geological units host the bulk of
in relation sampling of possible structures and the extent to mineralisation: Dune 2, Dune 3 and Fluvial Unit.
to which this is known, considering the deposit type.
geological
structure * Dune 2 shows no preferred horizontal direction in
* If the relationship between the drilling orientation mineralisation trend.
and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material. * Dune 3 and the Fluvial unit show a north-south trend.
The drilling pattern does not preferentially sample
the mineralisation in any unit.
Sample
security * The measures taken to ensure sample security. * The largest risks to the samples are weathering of
the containing bags and damage or loss to the bags
during transport.
* Large resistant plastic bags were used for the
vibracore and reverse circulation samples. They were
locally supplied and the quality was not always the
same. On several occasions they were doubled to avoid
mass loss during sampling. The sample identification
number was written on aluminium tags placed inside
the bags, in plastic tags with cable ties closing the
bags and on the external part of the plastic bag.
Samples collected at drill site were transported in
the same day to camp sites, and within just few weeks
transported to the laboratory warehouse. In camp site
they were exposed to sunlight and rain, but were
protected from the weather in the laboratory
warehouse. During transport, a chain of custody was
followed with sample dispatch forms, and samples
received were reconciled with samples shipped.
Nevertheless, handling and loading/unloading sample
bags onto open trucks and pick ups sometimes caused
damage to the bags. This damage resulted in loss of
material and sample refusal by the laboratory.
Improvements of the transportation were only achieved
with constant monitoring by the supervisors and
foremen.
Audits or * None for this project.
reviews * The results of any audits or reviews of sampling
techniques and data.
============= ============================================================ ===============================================================
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC code explanation Commentary
Mineral
tenement * Type, reference name/number, location and ownership * Exploration Licence 1336L, of area 118.8 km2, lies
and land including agreements or material issues with third approximately 25km south of the regional capital
tenure status parties such as joint ventures, partnerships, Inhambane and approximately 340km north east of the
overriding royalties, native title interests, national capital Maputo. The lease is held by Rio
historical sites, wilderness or national park and Tinto Mining and Exploration Ltd, and subject to the
environmental settings. joint venture agreement with Savannah Resources. The
lease is due to expire on the 21 January 2018.
* The security of the tenure held at the time of
reporting along with any known impediments to * There are no known impediments to mining development,
obtaining a licence to operate in the area. other than the normal social issues regarding
relocation - if necessary.
Exploration
done by * Acknowledgment and appraisal of exploration by other * Rio Tinto have conducted multiple phases of
other parties parties. exploration on the area since 2000. The area was
previously known to be mineralised.
Geology The Inhambane region contains
* Deposit type, geological setting and style of vast quantities of reworked coastal
mineralisation. sands that were deposited by
the Limpopo River further south.
Mineralisation at Jangamo is
hosted in dune sands 6 to 10
km inland from the current coastline.
Within the Jangamo area, four
major units are recognised: Dune
1, Dune 2, Dune 3 and a Fluvial
Unit. Most of the mineralisation
at Jangamo is hosted by Dune
3 and the Fluvial Unit.
Drill hole
Information * A summary of all information material to the * See Appendix 1 - drillhole intercept listing from the
understanding of the exploration results including a resource zone.
tabulation of the following information for all
Material drill holes:
o easting and northing of the
drill hole collar
o elevation or RL (Reduced
Level - elevation above sea
level in metres) of the drill
hole collar
o dip and azimuth of the hole
o down hole length and interception
depth
o hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
Data
aggregation * In reporting Exploration Results, weighting averaging * The grades of the drillhole intercepts listed in
methods techniques, maximum and/or minimum grade truncations Appendix 1 are the average grades for the drillhole
(eg cutting of high grades) and cut-off grades are intercept of the resource. The resource is defined
usually Material and should be stated. using the JANC block model with a boundary determined
by maximising revenue from the model, assuming a set
of costs, recoveries and revenues for the contained
* Where aggregate intercepts incorporate short lengths ilmenite, rutile and zircon (assumptions are listed
of high grade results and longer lengths of low grade below). The boundary generally matches the 1.7% VHM
results, the procedure used for such aggregation supported grade boundary. VHM is the sum of in-situ
should be stated and some typical examples of such ilmenite percent, zircon percent and rutile percent.
aggregations should be shown in detail.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
Relationship
between * These relationships are particularly important in the * The drillholes are vertical and the mineralisation is
mineralisation reporting of Exploration Results. generally sub-horizontal.
widths and
intercept
lengths * If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (eg 'down hole length, true width not known').
Diagrams
* Appropriate maps and sections (with scales) and * See Figure 1, Plan view Figure 2 Drillhole Plan and
tabulations of intercepts should be included for any Figure 3, Jangamo THM Grade Figures 4 - 10
significant discovery being reported These should representative sections.
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
Balanced
reporting * Where comprehensive reporting of all Exploration * All drillhole intercepts are listed in Appendix 1.
Results is not practicable, representative reporting
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
Other
substantive * Other exploration data, if meaningful and material, * Airborne geophysics was used to help target drilling.
exploration should be reported including (but not limited to): Magnetic and radiometric data are useful to detect
data geological observations; geophysical survey results; mineralised areas. Detailed SRTM elevation data and
geochemical survey results; bulk samples - size and LIDAR elevation data are also used to help interpret
method of treatment; metallurgical test results; bulk paleo-landforms.
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances. * Mineralogy was determined using QEMScan scanning
electron microscopy on composite samples from the
mineralised areas.
* Slimes in the resource (the "fines" fraction, of less
than 0.045 mm size) averages 7%. Smectites are only
present in the basement.
* No significant hard layers have been intersected in
the drilling within the resource. Some paleosols
between the dune units have elevated slimes.
* Groundwater has been measured around the resource and
a groundwater model created. In some areas the level
of groundwater would need to be managed if it were
being dry mined.
* No "potentially acid forming" soils have been
documented in the main mineralised zone. There is
potential for some acid-forming materials to be
present in the basement or small pockets of the
fluvial unit.
* Monazite levels are low.
Further
work * The nature and scale of planned further work (eg * The boundaries of the resource are moderately well
tests for lateral extensions or depth extensions or defined, and are strongly dependant on the mineral
large-scale step-out drilling). pricing. Further drilling on the north-eastern area
of the resource would probably allow this area to be
upgraded.
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided * Work is planned to complete a Scoping Study and then
this information is not commercially sensitive. Pre-Feasibility and Feasibility Studies.
=============== =============================================================== ===============================================================
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Criteria JORC Code explanation Commentary
Database
integrity * Measures taken to ensure that data has not been * Samples are panned in the field and the field
corrupted by, for example, transcription or keying estimate is the first check on the final reported
errors, between its initial collection and its use result. Most of the drillholes are logged in the
for Mineral Resource estimation purposes. field and many of the laboratory analyses were
completed without using manually typed results.
* Data validation procedures used.
* The drilling data is loaded and held in an AcQuire
database, where data integrity is checked in many
ways.
* Drilling results are checked on cross-section, where
grade anomalies are easily spotted.
Site visits
* Comment on any site visits undertaken by the * The Competent Person visited the resource site during
Competent Person and the outcome of those visits. 2014 to assess regional geology and drilling work on
the adjoining mineralisation on Savannah lease 3617L.
* If no site visits have been undertaken indicate why
this is the case.
Geological
interpretation * Confidence in (or conversely, the uncertainty of ) * The mineralised sands are windblown dune sands and
the geological interpretation of the mineral deposit. reworked fluvial sands probably originally derived
from beach strandline sediments where the heavy
minerals were originally concentrated. At Jangamo the
* Nature of the data used and of any assumptions made. recent dunes are arcuate and many have long inverted
U shapes. They climb up and also incorporate reworked
sand from older dunes that form a prominent ridge in
* The effect, if any, of alternative interpretations on the area.
Mineral Resource estimation.
* The heavy mineral content of the sand is one of its
* The use of geology in guiding and controlling Mineral main distinguishing geological characteristics,
Resource estimation. indicating that natural concentrating mechanisms have
been active at some stage during its past.
Additionally, the slimes and oversize contents of the
* The factors affecting continuity both of grade and sand are indicators of previous geological
geology. environments.
* Block model grades are estimated using samples only
from within the same geological unit.
Dimensions
* The extent and variability of the Mineral Resource * Mineralisation extends for 20km north-south and is of
expressed as length (along strike or otherwise), plan variable width, up to 6km wide in the centre. At the
width, and depth below surface to the upper and lower northern end, mineralisation is a linear zone of
limits of the Mineral Resource. about 7.5km long and 1.5km wide. At the southern end
mineralisation divides into an eastern and western
portion, each approximately 2km wide. The dune
topography is variable, but mineralisation averages
18m thickness, and has a maximum thickness of 54m.
Mineralisation generally extends up to the surface.
* Mineralisation is highest grade in the centre of the
deposit (see Figure 3).
Estimation
and modelling * The nature and appropriateness of the estimation * The estimate is based on a block model that extends
techniques technique(s) applied and key assumptions, including beyond the resource boundaries and was created using
treatment of extreme grade values, domaining, all of the available data. The block model uses
interpolation parameters and maximum distance of anisotropic search ellipsoids based on semi-variogram
extrapolation from data points. If a computer ranges for each of the different geology units. Where
assisted estimation method was chosen include a the search ellipsoid fails to find a sample within
description of computer software and parameters used. the range, it is expanded by a factor of three. For
THM, slimes and oversize assays, all blocks were
allocated values. The available mineral assemblage
* The availability of check estimates, previous data was used to estimate the percentage of ilmenite,
estimates and/or mine production records and whether zircon and rutile in the THM.
the Mineral Resource estimate takes appropriate
account of such data.
JANC Ellipsoid Details Unit Major Major Minor Z Diam
Azimuth Diam Diam
* The assumptions made regarding recovery of --------- --------- ------ ------ -------
by-products. Dune
1 135 2600 2000 28
--------- --------- ------ ------ -------
* Estimation of deleterious elements or other non-grade Dune
variables of economic significance (eg sulphur for 2 45 700 660 24
acid mine drainage characterisation). --------- --------- ------ ------ -------
Dune
3 0 760 340 30
* In the case of block model interpolation, the block --------- --------- ------ ------ -------
size in relation to the average Fluvial 0 700 380 18
--------- --------- ------ ------ -------
* sample spacing and the search employed.
* The model is based on a detailed geological
interpretation which divides the resource area into
* Any assumptions behind modelling of selective mining four major units Dune 1, Dune 2, Dune 3 and a Fluvial
units. unit. The highest grade mineralisation is found
within the Dune 3 unit and the Fluvial unit, but the
other two units are also mineralised.
* Any assumptions about correlation between variables.
* The blocks used are 200 x 200 x 3m in size. Block
* Description of how the geological interpretation was averages were estimated using inverse distance cubed
used to control the resource estimates. algorithm. Earlier estimates (which gave similar
overall results) used inverse distance squared
algorithm.
* Discussion of basis for using or not using grade
cutting or capping.
* Estimates only used drill assays from within the same
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and geological unit.
use of reconciliation data if available. * The drilling contains a mixture of 3m and 1.5m
samples, so all samples were digitally "re-sampled"
at 1.5m intervals to ensure equal weighting.
* Grades were not cut, as there are no obvious high
grade outliers in the data set.
* Verification: Previous block models have been created
in the same area as drilling progressed. The results
are similar to the current model.
* The model was checked visually to ensure the average
drillhole grades were modelled correctly in the block
model.
* The average THM grade of the assayed drill
intersections is 4.0%, compared to block model
average of 3.9% THM. The small difference may be
attributed to the lower drilling density in some of
the lower grade peripheral zones.
Moisture * Tonnages are estimated dry.
* Whether the tonnages are estimated on a dry basis or
with natural moisture, and the method of
determination of the moisture content.
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * The percentage of valuable minerals (VHM) in the
parameters applied. heavy mineral assemblage varies across the deposit
from 50% to 89%, averaging 65%. The resource boundary
has been determined using economic and processing
factors described below. The boundary is generally
close to 1.7% VHM, which equates roughly to 2.6% THM,
although it varies from 1.9% THM to 3.4% THM.
* The resource boundary is determined using the
following major assumptions: overall wet concentrator
THM recovery 75%, ilmenite, zircon and rutile spiral
recoveries 92%, 90% and 80% respectively. MSP
recoveries: ilmenite 85%, zircon 75%, rutile 30%.
Mineral prices ilmenite $185, zircon $1200, rutile
$800*. Area disturbance costs (including rehab) are
assumed at $1.90 per square metre, and an expansion
factor of 1.4 is applied to allow for off-orebody
disturbance. Mining costs and wet concentration $1.32
per ton of ore mined, MSP treatment $25/t of HMC
(Heavy Mineral Concentrate), mine & MSP fixed costs
$30/t HMC, HMC and product transport costs $15/t HMC.
Slimes treatment is estimated at $3/t of slimes in
the ore that exceeds 5% (which is assumed to be fixed
in the sand tailings).
* Using these assumptions, mining 50 tonnes of ore at
2.5% THM (1.63% VHM) costs $72. After processing,
transport and fixed costs are subtracted, the value
of the ilmenite, zircon and rutile in that 1 tonne of
HMC is also $72.
* * The mineral prices used in the resource estimation
are entirely based on price trend evaluations by the
Competent Person. More detailed costs and revenues
will be estimated during feasibility studies.
Mining factors
or assumptions * Assumptions made regarding possible mining methods, * Dredge mining is assumed to be the most likely mining
minimum mining dimensions and internal (or, if method - especially where the ore grades are
applicable, external) mining dilution. It is always marginal. High grade zones within the resource would
necessary as part of the process of determining probably support dry mining.
reasonable prospects for eventual economic extraction
to consider potential mining methods, but the
assumptions made regarding mining methods and
parameters when estimating Mineral Resources may not
always be rigorous. Where this is the case, this
should be reported with an explanation of the basis
of the mining assumptions made.
Metallurgical
factors * The basis for assumptions or predictions regarding * Metallurgical assumptions are listed above in
or assumptions metallurgical amenability. It is always necessary as determination of economic cut-off. Basic mineralogy
part of the process of determining reasonable has been determined by QEMscan, with XRF quantitative
prospects for eventual economic extraction to support. Several bulk samples have been tested with
consider potential metallurgical methods, but the small scall mineral processing and laboratory scale
assumptions regarding metallurgical treatment benchtop tests. The results show good recoveries of
processes and parameters made when reporting Mineral good quality product. Further bulk sampling work is
Resources may not always be rigorous. Where this is planned as part of on-going studies.
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
Environmen-tal
factors * Assumptions made regarding possible waste and process * Mining tailings will be initially stored in a
or assumptions residue disposal options. It is always necessary as dedicated tails storage facility until sufficient
part of the process of determining reasonable mining void has been opened up to allow in-pit
prospects for eventual economic extraction to tailings disposal. Slimes will probably be disposed
consider the potential environmental impacts of the of with the sand tails, or in slimes paddocks built
mining and processing operation. While at this stage in the original tails disposal facility.
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early * Tailings from the MSP would be disposed of in the
consideration of these potential environmental mining void near the MSP. These are benign and will
impacts should be reported. Where these aspects have be covered with sand and soil prior to hand-back to
not been considered this should be reported with an the community.
explanation of the environmental assumptions made.
* The mine will require a certain amount of ground
disturbance, but this will be rehabilitated
progressively as the mine advances.
* Several watercourses pass near the resource and small
excisions are likely when detailed drilling is
completed.
* Several villages lie on or near the resource and
eventually a decision will be needed whether to
resettle or excise these parts of the resource.
Bulk density
* Whether assumed or determined. If assumed, the basis * Density has been measured across the resource with
for the assumptions. If determined, the method used, Sonic drilling. The results showed that the
whether wet or dry, the frequency of the measurements previously used density equation was too low (dry
, density = 1.57 + THM%/100). The current Jangamo model
the nature, size and representativeness of the (JANC) uses a density calculation of 1.62 + THM%/100.
samples. The formula retains the slope of the previously used
model, but lifts the trend line into the data field.
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within
the deposit.
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
Classification
* The basis for the classification of the Mineral * Areas of the resource drilled at 250 x 250m spacings
Resources into varying confidence categories. or 350 x 350m spacings are classified as Indicated.
Areas drilled at 500 x 500 are classified as
Inferred.
* Whether appropriate account has been taken of all
relevant factors (ie relative confidence in
tonnage/grade estimations, reliability of input data, * The current classification was prepared by and
confidence in continuity of geology and metal values, reflects the view of the Competent Person.
quality, quantity and distribution of the data).
* Whether the result appropriately reflects the
Competent Person's view of the deposit.
Audits or
reviews * The results of any audits or reviews of Mineral * Previous reviews recommended further in-fill drilling,
Resource estimates. and development of a cut-off grade and mining
scenario that can be supported by a marketing
strategy and business development scenario.
Discussion
of relative * Where appropriate a statement of the relative * In the view of the Competent Person the accuracy and
accuracy/ accuracy and confidence level in the Mineral Resource confidence in the THM grades and mineralogy are such
confidence estimate using an approach or procedure deemed that with further in-fill work, the final ore grade
appropriate by the Competent Person. For example, the and mineral characteristics are unlikely to be
application of statistical or geostatistical different to the current estimate than by more than
procedures to quantify the relative accuracy of the 15%. The resource boundaries are more affected by
resource within stated confidence limits, or, if such mineral economics than by small scale in-ground
an approach is not deemed appropriate, a qualitative mineral variation.
discussion of the factors that could affect the
relative accuracy and confidence of the estimate.
* At the time of writing, the mineral prices used in
the modelling are higher than the current market
* The statement should specify whether it relates to rates. However, current market prices are widely
global or local estimates, and, if local, state the regarded as being unsustainable in the long term as
relevant tonnages, which should be relevant to many mineral producers are not currently profitable.
technical and economic evaluation. Documentation In the view of the Competent Person, the assumed
should include assumptions made and the procedures mineral prices are slightly conservative long-term
used. mineral prices.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
=============== ============================================================ ========================================================================
JORC Code, 2012 Edition - Table 1
Dongane Deposit - Inferred Resource Estimate 2015
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling
techniques * Nature and quality of sampling (eg cut channels, * Three types of drilling used: hand auger, reverse
random chips, or specific specialised industry circulation (RC) and sonic drilling. 88% of the
standard measurement tools appropriate to the drilling is RC.
minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad * Drill samples taken either at 1.5m or 3m intervals.
meaning of sampling.
* Total Heavy Mineral (THM), +1mm oversize and -0.045mm
* Include reference to measures taken to ensure sample "slimes" fractions determined on all drill samples.
representivity and the appropriate calibration of any
measurement tools or systems used.
* Mineralogy of the THM from selected drill composites
determined by QEMscan and XRF.
* Aspects of the determination of mineralisation that
are Material to the Public Report.
* In cases where 'industry standard' work has been done
this would be relatively simple (eg 'reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay'). In other cases more
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of detailed
information.
Drilling Drilling Drillholes Metres Percent
techniques * Drill type (eg core, reverse circulation, open-hole Statistics of Metres
hammer, rotary air blast, auger, Bangka, sonic, etc) For the Dongane Drilled
and details (eg core diameter, triple or standard Resource
tube, depth of diamond tails, face-sampling bit or ------------------ ----------- ------- -----------
other type, whether core is oriented and if so, by Hand Auger 33 360 6%
what method, etc). ------------------ ----------- ------- -----------
RC-AQ 59 2662 42%
------------------ ----------- ------- -----------
RC-NQ 66 2852 45%
------------------ ----------- ------- -----------
Hand Auger Sonic 7 426 7%
------------------ ----------- ------- -----------
Reverse Circulation Total 165 6300
------------------ ----------- ------- -----------
* All hand auger samples were collected over 1.5m
Sonic Drilling intervals with depths rarely exceeding 15m. After
retrieval, samples were placed in calico or canvas
bags and labelled with the hole number and sample
interval. An inherent problem with the hand auger
technique is over sampling, with the collected sample
interval presenting a larger volume than the
theoretical volume. Hand auger drilling is also
impossible in clays or wet sands below the water
table.
* Reconnaissance hand-auger drilling is mostly used to
locate the major anomalous mineralised areas. Sample
quality is low compared to other drilling methods and
hand-auger drillholes have been superceded with later
drilling of better quality. However the hand-auger
drillholes contain valuable mineralogy results, so
they have been retained for the final block model.
* 87% of the drilling consists of reverse circulation
drilling. Two RC systems used with different diameter
drill strings, NQ (45%) and AQ (42%). The NQ system
has a hole diameter of approx 75mm and the AQ system
has a hole diameter of 47.6mm. The RC rigs operate
using compressed air as the flushing medium which is
sent down the borehole between the outer and inner
tubes. Although water can be added to aid sample
recovery no polymer was used during drilling.
Tungsten carbide tipped bits are used to advance the
face of the hole and all holes were drilled
vertically.
* Reverse circulation drill samples were collected over
3m intervals. A pocket PC was used with the
Fieldworker software, where all samples were
described and field estimates introduced. Sample logs
provide information such as description of sediments
(colour, grain size, sorting), field estimations for
THM, interval, depth and comments on variations of
the sedimentary and geomorphologic characteristics of
the terrain.
* Sonic drilling employs a resonance-vibratory
technique with high frequency mechanical vibration
and no flushing medium to take continuous samples and
to advance drilling rods into the ground.
* The Sonic rig employed in Mozambique used a '4 x 6'
system in which a 4 inch (100mm internal diameter)
core barrel is advanced 1.5, 3 or 6m followed by a 6
inch casing string which is advanced over the 4 inch
core barrel to the bottom of the hole. Commonly 6m or
6m runs were used with the choice of core barrel
advancement dependant on recovery i.e. 6m run used
when experiencing good recovery, and a 3m run used
when recovery was poor.
* Sample quality from Sonic drilling is excellent and
the objective of the sonic drilling programme was to
obtain samples that would test the validity of the RC
and Hand Auger samples, in addition to verifying the
accuracy of the different drill rigs and contractors
that completed earlier drill programmes.
Drill sample
recovery * Method of recording and assessing core and chip * Hand auger samples are commonly contaminated with
sample recoveries and results assessed. material falling down the hole as drilling proceeds.
Samples that were larger than expected were logged as
possibly contaminated.
* Measures taken to maximise sample recovery and ensure
representative nature of the samples.
* In Reverse Circulation drilling the sample is
retrieved by air flushing where the sample is blown
* Whether a relationship exists between sample recovery up the inner core barrel through a collection hose
and grade and whether sample bias may have occurred into a plastic sample bag. The samples were collected
due to preferential loss/gain of fine/coarse in heavy duty plastic bags held in a cyclone close to
material. the drill rig (different types of cyclones were
designed for different drilling programmes). The
whole sample was collected in the field.
* Dry sample weights were recorded at the laboratory
and are a measure of sample recovery. The theoretical
weight of a 1m NQ sample is about 7kg. With this
drilling method, there is normally lower than average
recovery at the top of the drillhole due to sample
losses into the surrounding soil (the air pressure of
the system, combined with the weight of the rods and
relatively low back-pressure of the surrounding sands
causes sand near the bit face to be pushed outwards
into the surrounding ground). Additionally, below the
water table sample recovery can be greater than 100%
as water flow causes the hole to have a greater
diameter than the drilling bit. Good drilling
techniques are used to minimise the effects of both
of these problems. During RC drilling, the best
samples are "moist lumps" where there has been no
possibility of fines segregation (blow-over) or
losses of THM due to separation in water.
* Samples are retrieved from the Sonic drilling using a
core barrel. Samples are vibrated out of the core
barrel into a plastic sleeve, and present very much
like a core sample (see the picture to the left).
There is normally a small amount of sample
compression with the sonic technique (associated with
the wall thickness of the coring tubes), and the
length of core retrieved is sometimes slightly longer
than the penetration depth. Sonic drilling provides
the best sample recovery and sample quality of all of
the methods.
Logging
* Whether core and chip samples have been geologically * Hand auger samples were recorded on paper field logs
and geotechnically logged to a level of detail to or electronically with Pocket PC devices.
support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
* RC samples were logged on-site using either a paper
log or Pocket PC using the Fieldworker program.
* Whether logging is qualitative or quantitative in Sample logs provide information such as description
nature. Core (or costean, channel, etc) photography. of sediments (color, grain size, sorting), field
estimates of THM, interval depth and comments on
variations of the sedimentary and geomorphologic
* The total length and percentage of the relevant characteristics of the terrain.
intersections logged.
* At the Sonic drilling sites, only small pinch was
taken from the bottom of the core for description of
the sample, estimation of THM% and deciding if the
hole should be terminated. For each 3m or 6m interval
of sample, this information was transcribed to a
paper log for quick reference prior to the completion
of the logging at camp.
* Detailed sample logging was then completed at camp.
The samples collected were logged in 3m intervals.
For 6m runs, the measured length of the run was split
in half producing two separate 3m samples. Each
sample was logged using a paper log sheet which was
later entered into the field database.
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * Hand auger samples were homogenised and then reduced
and sample half or all core taken. using "cone and quartering" splitting technique in
preparation the field.
* If non-core, whether riffled, tube sampled, rotary
split, etc and whether sampled wet or dry. * For the RC and Sonic drilling methods, the whole
drill samples were delivered to the laboratory.
* For all sample types, the nature, quality and
appropriateness of the sample preparation technique. * After delivery to the Inhambane laboratory, samples
were checked, dried and then riffle split down to a
nominal size of 350g.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of
samples. * This split size is high (ie more conservative)
relative to other operators globally, where heavy
mineral sand sample splits of 100 to 200g are more
* Measures taken to ensure that the sampling is common.
representative of the in situ material collected,
including for instance results for field
duplicate/second-half sampling. * Sample duplicates were inserted at rate of 1:15 to
check laboratory accuracy, with good results.
* Whether sample sizes are appropriate to the grain
size of the material being sampled. * Sonic drillholes were used to "twin" earlier drilling
as a check of in-situ values. The results showed good
repeatability for the RC drilling, but only fair
results for the hand-auger drilling. This is expected
given the limitations of the method.
Quality
of assay * The nature, quality and appropriateness of the * Sieving to determine +2mm (oversize) and -45micron
data and assaying and laboratory procedures used and whether (slimes).
laboratory the technique is considered partial or total.
tests
* Heavy mineral separation using heavy liquid to
* For geophysical tools, spectrometers, handheld XRF separate THM from other minerals (predominantly
instruments, etc, the parameters used in determining quartz).
the analysis including instrument make and model,
reading times, calibrations factors applied and their
derivation, etc. * Control procedures include laboratory duplicates,
blind duplicates and standard samples.
* Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory * In Rio Tinto labs, LST was used and density is
checks) and whether acceptable levels of accuracy (ie monitored and kept above 2.85 Samples prepared at SGS
lack of bias) and precision have been established. were separated in TBE diluted with acetone to
maintain a 2.85 density.
Verification
of sampling * The verification of significant intersections by * 64 twinned holes were completed in Dongane and
and assaying either independent or alternative company personnel. surrounding Mutamba area. Sonic drillholes used to
check other types of drilling show good correlation
with RC drilling, but lower correlation with
* The use of twinned holes. hand-auger results (this may reflect the lower survey
accuracy of the hand auger holes than problems with
the drilling technique itself). Twin holes of RC/RC
* Documentation of primary data, data entry procedures, types also show good correlation.
data verification, data storage (physical and
electronic) protocols.
* Most of the field data is entered into computers in
the field. In places where paper logs are used, the
* Discuss any adjustment to assay data. information has been transcribed and entered into
databases.
* Samples are delivered to the laboratory with a sample
submission form.
* At the laboratory, samples are checked against the
submission document and entered into the laboratory
systems.
* Different laboratories were used. Those with the best
practices used barcode control and scales linked to
the computer systems (laboratory information
management systems - LIMS). Other laboratories
recorded results by hand and transcribed them into
the database systems. These systems are inherently
less reliable due to typographical and hand-writing
errors, however at the time of the analyses, this was
the method used at many major commercial
laboratories.
* Assays and other drilling data are recorded in the
Acquire data management system, which includes many
integrity checks.
* No adjustments have been made to the laboratory data.
Location
of data * Accuracy and quality of surveys used to locate drill * The majority of holes used in the model were surveyed
points holes (collar and down-hole surveys), trenches, mine using differential GPS. Hand-held GPS was used to
workings and other locations used in Mineral Resource locate drillholes in the early phases of
estimation. reconnaissance and exploration. Elevations of all
Dongane collars have been determined using LIDAR.
* Specification of the grid system used.
* Drillholes are positioned using UTM zone 36S, WGS84
datum.
* Quality and adequacy of topographic control.
* Despite the highly variable dune topography across
much of the region, excellent control has been
established using the LIDAR survey.
Data spacing
and * Data spacing for reporting of Exploration Results. * Drill spacing for the resource is 500 x 500m.
distribution
* Whether the data spacing and distribution is * Sample composites were used to determine mineralogy
sufficient to establish the degree of geological and of the THM.
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and
classifications applied.
* Whether sample compositing has been applied.
Orientation
of data * Whether the orientation of sampling achieves unbiased * Two geological units host the bulk of mineralisation
in relation sampling of possible structures and the extent to at Dongane: Dune 2 and Dune 3. The resource model is
to which this is known, considering the deposit type. limited to these two units.
geological
structure
* If the relationship between the drilling orientation * The drill spacing of 500 x 500m is too sparse to
and the orientation of key mineralised structures is determine small scale mineralisation trends.
considered to have introduced a sampling bias, this
should be assessed and reported if material.
* More closely spaced drilling on the adjacent Jangamo
deposit demonstrated that Dune 2 shows no preferred
horizontal direction in mineralisation trend and Dune
3 shows a north-south trend.
Sample
security * The measures taken to ensure sample security. * The largest risks to the samples are weathering of
the containing bags and damage or loss to the bags
during transport.
* Large resistant plastic bags were used for the
vibracore and reverse circulation samples. They were
locally supplied and the quality was not always the
same. On several occasions they were doubled to avoid
mass loss during sampling. The sample identification
number was written on aluminium tags placed inside
the bags, in plastic tags with cable ties closing the
bags and on the external part of the plastic bag.
Samples collected at drill site were transported in
the same day to camp sites, and within just few weeks
transported to the laboratory warehouse. In camp site
they were exposed to sunlight and rain, but were
protected from the weather in the laboratory
warehouse. During transport, a chain of custody was
followed with sample dispatch forms, and samples
received were reconciled with samples shipped.
Nevertheless, handling and loading/unloading sample
bags onto open trucks and pick ups sometimes caused
damage to the bags. This damage resulted in loss of
material and sample refusal by the laboratory.
Improvements of the transportation were only achieved
with constant monitoring by the supervisors and
foremen.
Audits or
reviews * The results of any audits or reviews of sampling * An internal Competent Person review was conducted on
techniques and data. the Mutamba Project. No recommendations were made to
change sampling procedures.
============= ============================================================ ===============================================================
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral
tenement * Type, reference name/number, location and ownership * Exploration Licence 566L, of area 163.6 km(2) , lies
and land including agreements or material issues with third approximately 25km south of the regional capital
tenure status parties such as joint ventures, partnerships, Inhambane and approximately 340km north east of the
overriding royalties, native title interests, national capital Maputo. The area of the Dongane
historical sites, wilderness or national park and deposit lies approximately 50km south of Inhambane.
environmental settings. The lease is held by Rio Tinto Mining and Exploration
Ltd, and subject to the joint venture agreement with
Savannah Resources. The lease is due to expire on the
* The security of the tenure held at the time of 21 January 2018.
reporting along with any known impediments to
obtaining a licence to operate in the area.
* There are no known impediments to mining development,
other than the normal social issues regarding
resettlement - if necessary.
Exploration
done by * Acknowledgment and appraisal of exploration by other * Rio Tinto have conducted multiple phases of
other parties parties. exploration on the area since 2000. The area was
previously known to be mineralised.
Geology The Inhambane region contains
* Deposit type, geological setting and style of vast quantities of reworked coastal
mineralisation. sands that were deposited by
the Limpopo River further south.
Mineralisation at Dongane is
hosted in dune sands 5 to 8 km
inland from the current coastline.
Within the Dongane area, three
major units are recognised: Dune
1, Dune 2, Dune 3. Most of the
mineralisation at Dongane is
hosted by Dune 2 and Dune 3,
and the higher slimes values
for Dune 1 also make it unattractive.
The resource model for Dongane
is restricted to Dune 2 and Dune
3 units.
Drill hole
Information * A summary of all information material to the * See Appendix 1 - drillhole intercept listing from the
understanding of the exploration results including a resource zone.
tabulation of the following information for all
Material drill holes:
o easting and northing of the
drill hole collar
o elevation or RL (Reduced
Level - elevation above sea
level in metres) of the drill
hole collar
o dip and azimuth of the hole
o down hole length and interception
depth
o hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
Data
aggregation * In reporting Exploration Results, weighting averaging * The grades of the drillhole intercepts listed in
methods techniques, maximum and/or minimum grade truncations Appendix 1 are the average grades for the drillhole
(eg cutting of high grades) and cut-off grades are intercept of the resource. The resource is defined
usually Material and should be stated. using the DONR block model with a boundary determined
by maximising revenue from the model, assuming a set
of costs, recoveries and revenues for the contained
* Where aggregate intercepts incorporate short lengths ilmenite, rutile and zircon (assumptions are listed
of high grade results and longer lengths of low grade below). The boundary generally matches the 1.7% VHM
results, the procedure used for such aggregation supported grade boundary. VHM (Valuable Heavy
should be stated and some typical examples of such Mineral) is the sum of in-situ ilmenite percent,
aggregations should be shown in detail. zircon percent and rutile percent.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
Relationship
between * These relationships are particularly important in the * The drillholes are vertical and the mineralisation is
mineralisation reporting of Exploration Results. generally sub-horizontal.
widths and
intercept
lengths * If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (eg 'down hole length, true width not known').
Diagrams
* Appropriate maps and sections (with scales) and * See Figure 1, Plan view Figure 2 Drillhole Plan and
tabulations of intercepts should be included for any Figure 3, Dongane THM Grade Figures 4 - 8
significant discovery being reported These should representative sections.
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
Balanced
reporting * Where comprehensive reporting of all Exploration * All drillhole intercepts are listed in Appendix 1.
Results is not practicable, representative reporting
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
Other
substantive * Other exploration data, if meaningful and material, * Airborne geophysics was used to help target drilling.
exploration should be reported including (but not limited to): Magnetic and radiometric data are useful to detect
data geological observations; geophysical survey results; mineralised areas. Detailed SRTM elevation data and
geochemical survey results; bulk samples - size and LIDAR elevation data are also used to help interpret
method of treatment; metallurgical test results; bulk paleo-landforms.
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances. * Mineralogy was determined using QEMScan scanning
electron microscopy on composite samples from the
mineralised areas.
* Slimes in the resource (the "fines" fraction, of less
than 0.045 mm size) averages 7%. Smectites are only
present in the basement.
* No significant hard layers have been intersected in
the drilling within the resource. Some paleosols
between the dune units have elevated slimes.
* Groundwater has been measured around the resource and
a groundwater model created. Dongane mineralisation
mostly lies above the water table.
* No "potentially acid forming" soils have been
documented in the main mineralised zone. There is
potential for some acid-forming materials to be
present in the basement or small pockets of the
fluvial unit.
* Monazite levels are low.
Further
work * The nature and scale of planned further work (eg * Several areas near the main deposit were modelled as
tests for lateral extensions or depth extensions or good mineralisation in the block model, but were
large-scale step-out drilling). excluded from the resource because of a lack of
drilling (See Figure 3). These areas should be tested
with further infill drilling.
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided * Work is planned to complete a Scoping Study and then
this information is not commercially sensitive. Pre-Feasibility and Feasibility Studies.
=============== =============================================================== ===============================================================
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Criteria JORC Code explanation Commentary
Database
integrity * Measures taken to ensure that data has not been * Samples are panned in the field and the field
corrupted by, for example, transcription or keying estimate is the first check on the final reported
errors, between its initial collection and its use result. Most of the drillholes are logged in the
for Mineral Resource estimation purposes. field and many of the laboratory analyses were
completed without using manually typed results.
* Data validation procedures used.
* The drilling data is loaded and held in an "Acquire"
database, where data integrity is checked.
* Drilling results are checked on cross-section, where
grade anomalies are easily spotted.
Site visits
* Comment on any site visits undertaken by the * The Competent Person visited the resource site during
Competent Person and the outcome of those visits. 2014 to assess regional geology and drilling work on
the adjoining mineralisation on Savannah lease 3617L.
* If no site visits have been undertaken indicate why
this is the case.
Geological
interpretation * Confidence in (or conversely, the uncertainty of ) * The mineralised sands are windblown dune sands
the geological interpretation of the mineral deposit. probably originally derived from beach strandline
sediments where the heavy minerals were originally
concentrated. At Dongane the recent dunes are arcuate
* Nature of the data used and of any assumptions made. and many have long inverted U shapes. They climb up
and also incorporate reworked sand from older dunes
(Dune 1 unit) that form a prominent ridge in the
* The effect, if any, of alternative interpretations on area.
Mineral Resource estimation.
* The heavy mineral content of the sand is one of its
* The use of geology in guiding and controlling Mineral main distinguishing geological characteristics,
Resource estimation. indicating that natural concentrating mechanisms have
been active at some stage during its past.
Additionally, the slimes and oversize contents of the
* The factors affecting continuity both of grade and sand are indicators of previous geological
geology. environments.
* Grades are relatively similar in the different
geological units that host mineralisation, meaning
that alternative geological interpretations will have
little effect on the interpreted grades.
Dimensions
* The extent and variability of the Mineral Resource * The currently defined resource boundary is shaped
expressed as length (along strike or otherwise), plan like an inverted boot with the length of the boot
width, and depth below surface to the upper and lower oriented NE-SW and the toe of the boot pointing
limits of the Mineral Resource. towards the NW. The length of mineralisation is 9 km.
The narrow part of the boot is 3km wide, but
toe-to-heel it is 6.5km wide. The highest grade
mineralisation is found in the arch of the heel and
along the front "shin" section of the boot. (see
Figure 3).
* The dune topography is variable, but mineralisation
averages 27m thickness, and has a maximum thickness
of 93m. Mineralisation generally extends up to the
surface. Several zones within the resource boundary
are poorly mineralised and the resource boundary has
been brought up to the surface in these areas.
Estimation
and modelling * The nature and appropriateness of the estimation * The estimate is based on a block model that extends
techniques technique(s) applied and key assumptions, including beyond the resource boundaries and was created using
treatment of extreme grade values, domaining, all of the available data. The block model uses
interpolation parameters and maximum distance of anisotropic search ellipsoids based on semi-variogram
extrapolation from data points. If a computer ranges for each of the different geology units. Where
assisted estimation method was chosen include a the search ellipsoid fails to find a sample within
description of computer software and parameters used. the range, it is expanded by a factor of three. For
THM, slimes and oversize assays, all blocks were
allocated values. The available mineral assemblage
* The availability of check estimates, previous data was used to estimate the percentage of ilmenite,
estimates and/or mine production records and whether zircon and rutile in the THM.
the Mineral Resource estimate takes appropriate
account of such data.
JANC Ellipsoid Details Unit Major Major Minor Z Diam
Azimuth Diam Diam
* The assumptions made regarding recovery of -------- --------- ------ ------ -------
by-products. Dune 2 45 700 660 24
-------- --------- ------ ------ -------
Dune 3 0 760 340 30
* Estimation of deleterious elements or other non-grade -------- --------- ------ ------ -------
variables of economic significance (eg sulphur for
acid mine drainage characterisation).
* The model is based on a detailed geological
interpretation which divides the resource area into
* In the case of block model interpolation, the block three major units Dune 1, Dune 2 and Dune 3.
size in relation to the average
* The blocks used are 200 x 200 x 3m in size. Block
* sample spacing and the search employed. averages were estimated using inverse distance cubed
algorithm. Earlier estimates (which gave similar
overall results) used inverse distance squared
* Any assumptions behind modelling of selective mining algorithm.
units.
* Estimates only used drill assays from within the same
* Any assumptions about correlation between variables.
geological unit.
* Description of how the geological interpretation was * The drilling contains a mixture of 3m and 1.5m
used to control the resource estimates. samples, so all samples were digitally "resampled" at
1.5m intervals to ensure equal weighting.
* Discussion of basis for using or not using grade
cutting or capping. * Grades were not cut, as there are no obvious high
grade outliers in the data set.
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and * Verification: Previous block models have been created
use of reconciliation data if available. in the same area. The previous results are similar to
the current model.
* The model was checked visually to ensure the average
drillhole grades were modelled correctly in the block
model.
* The average THM grade of the assayed drill
intersections is 4.1%, compared to block model
average of 3.8% THM. The difference is due to the
inclusion of surrounding low-grade samples when
estimating the block averages, which are excluded
after the resource boundary is defined.
Moisture * Tonnages are estimated dry.
* Whether the tonnages are estimated on a dry basis or
with natural moisture, and the method of
determination of the moisture content.
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * The percentage of valuable minerals (VHM) in the
parameters applied. heavy mineral assemblage varies across the deposit
from 46% to 74%, averaging 66%. The resource boundary
has been determined using 1.7% VHM, which equates
roughly to 2.6% THM, although it varies from 2.3% THM
to 3.4% THM depending on the VHM content of the area.
* The resource boundary is determined using the
following major assumptions: overall wet concentrator
THM recovery 75%, ilmenite, zircon and rutile spiral
recoveries 92%, 90% and 80% respectively. MSP
recoveries: ilmenite 85%, zircon 75%, rutile 30%.
Mineral prices ilmenite $185, zircon $1200, rutile
$800. Area disturbance costs (including rehab) are
assumed at $1.90 per square metre, and an expansion
factor of 1.4 is applied to allow for off-orebody
disturbance. Mining costs and wet concentration $1.32
per ton of ore mined, MSP treatment $25/t of HMC
(Heavy Mineral Concentrate), mine & MSP fixed costs
$30/t HMC, HMC and product transport costs $15/t HMC.
Slimes treatment is estimated at $3/t of slimes in
the ore that exceeds 5% (which is assumed to be fixed
in the sand tailings).
* Using these assumptions, mining 50 tonnes of ore at
2.5% THM (1.63% VHM) costs $72. After processing,
transport and fixed costs are subtracted, the value
of the ilmenite, zircon and rutile in that 1 tonne of
HMC is also $72.
* * The mineral prices used in the resource estimation
are entirely based on price trend evaluations by the
Competent Person. More detailed costs and revenues
will be estimated during feasibility studies.
Mining factors
or assumptions * Assumptions made regarding possible mining methods, * Dredge mining is assumed to be the most likely mining
minimum mining dimensions and internal (or, if method - especially where the ore grades are
applicable, external) mining dilution. It is always marginal. High grade zones within the resource would
necessary as part of the process of determining probably support dry mining.
reasonable prospects for eventual economic extraction
to consider potential mining methods, but the
assumptions made regarding mining methods and
parameters when estimating Mineral Resources may not
always be rigorous. Where this is the case, this
should be reported with an explanation of the basis
of the mining assumptions made.
Metallurgical
factors * The basis for assumptions or predictions regarding * Metallurgical assumptions are listed above in
or assumptions metallurgical amenability. It is always necessary as determination of economic cut-off. Basic mineralogy
part of the process of determining reasonable has been determined by QEMscan, with XRF quantitative
prospects for eventual economic extraction to support. Several bulk samples have been tested with
consider potential metallurgical methods, but the small scall mineral processing and laboratory scale
assumptions regarding metallurgical treatment benchtop tests. The results show good recoveries of
processes and parameters made when reporting Mineral good quality product. Further bulk sampling work is
Resources may not always be rigorous. Where this is planned as part of on-going studies.
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
Environmen-tal
factors * Assumptions made regarding possible waste and process * Mining tailings will be initially stored in a
or assumptions residue disposal options. It is always necessary as dedicated tails storage facility until sufficient
part of the process of determining reasonable mining void has been opened up to allow in-pit
prospects for eventual economic extraction to tailings disposal. Slimes will probably be disposed
consider the potential environmental impacts of the of with the sand tails, or in slimes paddocks built
mining and processing operation. While at this stage in the original tails disposal facility.
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early * Tailings from the MSP would be disposed of in the
consideration of these potential environmental mining void near the MSP. These are benign and will
impacts should be reported. Where these aspects have be covered with sand and soil prior to hand-back to
not been considered this should be reported with an the community.
explanation of the environmental assumptions made.
* The mine will require a certain amount of ground
disturbance, but this will be rehabilitated
progressively as the mine advances.
Bulk density
* Whether assumed or determined. If assumed, the basis * Density has been measured across the resource with
for the assumptions. If determined, the method used, Sonic drilling. The results showed that the
whether wet or dry, the frequency of the measurements previously used density equation was too low (dry
, density = 1.57 + THM%/100). The current Dongane model
the nature, size and representativeness of the (DONR) uses a density calculation of 1.62 + THM%/100.
samples. The formula retains the slope of the previously used
model, but lifts the trend line into the data field.
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within
the deposit.
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
Classification
* The basis for the classification of the Mineral * The drilling density of 500 x 500m is too sparse to
Resources into varying confidence categories. assure continuity and the resource estimate is
therefore classified as Inferred.
* Whether appropriate account has been taken of all
relevant factors (ie relative confidence in * The current classification was prepared by and
tonnage/grade estimations, reliability of input data, reflects the view of the Competent Person.
confidence in continuity of geology and metal values,
quality, quantity and distribution of the data).
* Whether the result appropriately reflects the
Competent Person's view of the deposit.
Audits or
reviews * The results of any audits or reviews of Mineral * Previous reviews recommended further in-fill drilling,
Resource estimates. and development of a cut-off grade and mining
scenario that can be supported by a marketing
strategy and business development scenario.
Discussion
of relative * Where appropriate a statement of the relative * In the view of the Competent Person the accuracy and
accuracy/ accuracy and confidence level in the Mineral Resource confidence in the THM grades and mineralogy are such
confidence estimate using an approach or procedure deemed that with further in-fill work, the final ore grade
appropriate by the Competent Person. For example, the and mineral characteristics are unlikely to be
application of statistical or geostatistical different to the current estimate than by more than
procedures to quantify the relative accuracy of the 30%. Several zones near the defined resource were
resource within stated confidence limits, or, if such excluded due to the lack of supporting drilling.
an approach is not deemed appropriate, a qualitative Further drilling may increase the confidence in these
discussion of the factors that could affect the zones and allow them to be included in the resource.
relative accuracy and confidence of the estimate.
* At the time of writing, the mineral prices used in
* The statement should specify whether it relates to the modelling are higher than the current market
global or local estimates, and, if local, state the rates. However, current market prices are widely
relevant tonnages, which should be relevant to regarded as being unsustainable in the long term as
technical and economic evaluation. Documentation many mineral producers are not currently profitable.
should include assumptions made and the procedures In the view of the Competent Person, the prices used
used. are slightly conservative long-term mineral prices.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
=============== ============================================================ =======================================================================
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