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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Anglo Asian Mining Plc | LSE:AAZ | London | Ordinary Share | GB00B0C18177 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -3.10 | -4.80% | 61.50 | 60.00 | 63.00 | 64.50 | 61.50 | 64.50 | 93,081 | 16:02:17 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Miscellaneous Metal Ores,nec | 84.72M | 3.66M | 0.0320 | 19.22 | 70.26M |
From Apr 2019 to Apr 2024
TIDMAAZ
RNS Number : 8102S
Anglo Asian Mining PLC
14 March 2019
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
14 March 2019
Anglo Asian Mining plc
Maiden JORC Mineral Resources and Ore Reserves for the producing
Gadir Underground Mine
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer, is pleased to announce maiden Mineral Resources and Ore Reserves, estimated in accordance with the JORC (2012) code, for the producing Gadir Underground Mine ("Gadir") located at the Company's Gedabek Contract Area ("Gedabek") in Western Azerbaijan. The Mineral Resources and Ore Reserves are the same as those published as a Company estimate on 25 February 2019. The mineral resources estimate is based on a robust geological model, which benefits from information gathered during mining of the deposit since 2015, combined with ongoing geological work and exploration drilling.
Overview
-- Maiden JORC Mineral Resources:
o Measured plus Indicated Mineral Resources (at a cut-off grade of 0.5 grammes per tonne of gold) of 1,775,000 tonnes containing 145,200 ounces of gold, 736,100 ounces of silver, 3,295 tonnes of copper and 14,470 tonnes of zinc
o Inferred Mineral Resources (at a cut-off grade of 0.5 grammes per tonne of gold) of 571,000 tonnes containing 27,200 ounces of gold, 104,400 ounces of silver, 571 tonnes of copper and 2,972 tonnes of zinc
-- Maiden JORC Ore Reserves estimate:
o Proved and Probable Ore Reserves (at a cut-off grade of 1.2 grammes per tonne of gold) of 797,000 tonnes at a grade of 2.73 grammes per tonne gold containing about 70,000 ounces of gold, 11.86 grammes per tonne silver containing over 300,000 ounces of silver and 0.17 percent copper containing nearly 1,400 tonnes of copper
o At the current production rate, this gives over a mine life of over five-years
o These reserves are the economic part of the Measured plus Indicated Mineral Resources
-- A comprehensive three-dimensional geological model of Gadir has now been completed which will support future mining and further exploration
-- Geological exploration of additional areas of the deposit, which remains open at depth and along strike, is continuing and has the potential to further enhance this maiden resource and reserves estimate
-- Publication of these JORC mineral resources and ore reserves is in line with the Company's strategy to formalise its global resource inventory of producing assets (which also includes Gedabek Open Pit and the Ugur Open Pit). Resources and reserves estimates classified according to the JORC Code have now been prepared for all the Company's producing mines.
Gadir Background
-- The polymetallic sulphide deposit was discovered by surface exploration core drilling, and subsequently accessed via an adit tunnel in 2015. On reaching the mineralisation for further evaluation, mining of the deposit commenced.
-- Production mining has continued since 2015, on a simultaneous exploration-mining basis. However, as part of the recent strategy to formalise the resources classified in accordance with the JORC (2012) Code, the Gadir Mineral Resources report and Ore Reserves report have been prepared.
-- The mineral resource estimate was prepared utilising the extensive geological and mining information that comprised surface core drill holes (64 drill holes with a total length of 22,458 metres), underground core drill holes (338 drill holes with a total length of 15,512 metres), and 8,645 underground channel samples.
-- Total underground development as at end 2018 was over 10 kilometres, comprising nearly 7,000 metres of development tunnelling, 902 metres of decline drives, over 1,534 metres of spiral ramp and 844 metres tunnelling towards and under the northern part of the Gedabek open pit.
The Gadir JORC Mineral Resources Report can be accessed via the following link:
http://www.rns-pdf.londonstockexchange.com/rns/8102S_2-2019-3-13.pdf
The Gadir JORC Ore Reserves Report can be accessed via the following link:
http://www.rns-pdf.londonstockexchange.com/rns/8102S_1-2019-3-13.pdf
Anglo Asian CEO, Reza Vaziri, said "I am delighted to announce the maiden JORC Mineral
Resources and Ore Reserves estimate for the Gadir deposit, which, together with our JORC Resources and Reserves estimates for our Gedabek Open Pit and Ugur underground mines, provide investors with a tangible sense of the overall mineralised potential of our main Gedabek Contract Area where we have been producing gold and copper since 2009.
"To prepare JORC resource and ore reserves estimate for a complex underground mine is a technically very difficult exercise and this resource and the reserves estimate demonstrates the high expertise of the Company's geologists. This process of comprehensive geological exploration is continuing, and as additional geological data are obtained, this mineral resource and reserve estimate will be further updated. Supporting these activities is a detailed, three-dimensional geological model of Gadir which will assist in both mining the deposit and further exploration."
Anglo Asian Group Director of Geology & Mining, Stephen Westhead, said "This maiden resource and ore reserve estimate is for Gadir only and does not include any underground mining resource potential beneath the Gedabek open pit, which is located some 500 metres from the Gadir resource. The Gadir Mineral Resources and Ore Reserves estimates assess the total mineral inventory as known from exploration and development work to date, including material immediately adjacent to areas already mined that may be re-accessed pending an intensive geological and geotechnical risk assessment. The Gadir property continues to be an important asset of the Company and, with it remaining open at depth and along strike, may yield significant further upside to Anglo Asian in the future.
"The completion of this work provides a strong understanding of the combined production profile of all operating mines, that gives a mine life until end 2024 from the current reserves. Importantly, the resources adjacent to these mineral reserves provide the opportunity to be further upgraded for future production. Additionally, exceptional exploration potential exists at not only the Gedabek Contract Area, but also at the Ordubad and Gosha Contract Areas, which will be evaluated in due course to increase the Group resources with the aim of expanding current mines and constructing new mines."
JORC (2012) Mineral Resources Statement
The Mineral Resource estimate was prepared in accordance with JORC Code (2012), which is the current edition of the JORC Code. The resources stated below are in-situ and depleted for mining development and production to the end of August 2018.
Mineral Resources
Hot Features
Premium
CLASSIFICATION Tonnage Gold Silver Copper Zinc
(Cut-off grade
0.5 g/t Au)
---------------------- ------------- --------------
kt g/t koz g/t koz % t % t
---------------------- -------- ----- ------ ------ ------ ----- ------ ----- -------
Measured 540 3.70 64.2 17.49 303.6 0.29 1,566 1.01 5,454
-------- ----- ------ ------ ------ ----- ------ ----- -------
Indicated 1,235 2.04 81.0 10.89 432.4 0.14 1,729 0.73 9,016
-------- ----- ------ ------ ------ ----- ------ ----- -------
Measured + Indicated 1,775 2.54 145.2 12.90 736.1 0.21 3,295 0.84 14,470
-------- ----- ------ ------ ------ ----- ------ ----- -------
Inferred 571 1.48 27.2 5.68 104.4 0.10 571 0.52 2,972
-------- ----- ------ ------ ------ ----- ------ ----- -------
Total 2,347 2.29 172.4 11.14 840.4 0.19 3,866 0.78 17,442
-------- ----- ------ ------ ------ ----- ------ ----- -------
JORC (2012) Ore Reserves Statement
The ore reserves estimate was also prepared in accordance with JORC Code (2012). The Ore Reserves are derived from the Measured plus Indicated Mineral Resources and are presented below.
Ore Reserves
CLASSIFICATION Tonnage Gold Silver Copper
(Cut-off grade 1.2 g/t Au)
kt g/t koz g/t koz % t
-------- ----- ----- ------ ----- ----- ------
Proved 222 2.81 25 14.13 101 0.24 535
-------- ----- ----- ------ ----- ----- ------
Probable 575 2.41 45 10.99 203 0.15 852
-------- ----- ----- ------ ----- ----- ------
Total 797 2.73 70 11.86 304 0.17 1,387
-------- ----- ----- ------ ----- ----- ------
Mineral Resources and Ore Reserves Estimation Overview
Anglo Asian, together with the mining and geological consulting group Datamine International, prepared the resources and the reserve estimation for gold, silver and copper of the Gadir deposit. Zinc was not estimated as part of this reserve as is under study at resource level currently. Further information regarding the Mineral Resources estimation parameters per Table 1 of the JORC Code are set out in Appendix One (Section 3) and information regarding the Ore Reserves estimation parameters per Table 1 of the JORC code are set out in Appendix One (Section 4). A glossary of terminology related to the mineral resource and reserves estimate and other information is set out in Appendix Two.
Competent Person Statement
The information in the announcement that relates to exploration results, minerals resources and ore reserves is based on information compiled by Dr Stephen Westhead, who is a full-time employee of Anglo Asian Mining with the position of Director of Geology & Mining, who is a Fellow of The Geological Society of London, a Chartered Geologist, Fellow of the Society of Economic Geologists, Member of The Institute of Materials, Minerals and Mining and a Member of the Institute of Directors.
Stephen Westhead has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Stephen Westhead consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.
Stephen Westhead has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking, to qualify as a "competent person" as defined by the AIM rules. Stephen Westhead has reviewed the resources and reserves included in this announcement.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
**S**
For further information please visit or contact:
Reza Vaziri Anglo Asian Mining plc Tel: +994 12 596 3350
Bill Morgan Anglo Asian Mining plc Tel: +994 502 910 400
------------------------------ ----------------------
Stephen Westhead Anglo Asian Mining plc Tel: +994 502 916 894
------------------------------ ----------------------
Ewan Leggat SP Angel Corporate Finance Tel: +44 (0) 20 3470
LLP 0470
Nominated Adviser and Broker
------------------------------ ----------------------
Soltan Tagiev SP Angel Corporate Finance Tel + 44 (0) 20 3470
LLP 0470
------------------------------ ----------------------
Susie Geliher St Brides Partners Ltd Tel: +44 (0) 20 7236
1177
------------------------------ ----------------------
Gaby Jenner St Brides Partners Ltd Tel: +44 (0) 20 7236
1177
------------------------------ ----------------------
Notes:
Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company has a 1,962 square kilometre portfolio, assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement modelled on the Azeri oil industry.
The Company's main operating location is the Gedabek Contract Area ("Gedabek") which is a 300 square kilometre area in the Lesser Caucasus mountains in western Azerbaijan. The Company developed Azerbaijan's first modern operating gold/copper/silver mine at Gedabek which commenced gold production in May 2009. Mining at Gedabek was initially from its main open pit, which is an open cast mine with a series of interconnected pits.
The Company also operates the high grade Gadir underground mine, which is co-located at the Gedabek site. In September 2017, production commenced at the Ugur open pit mine, a recently discovered gold ore deposit at Gedabek. The Company has a second underground mine, Gosha, which is 50 kilometres from Gedabek. Ore mined at Gosha is processed at Anglo Asian's Gedabek plant.
The Company produced 83,736 gold equivalent ounces ('GEOs') for the year ended 31 December 2018. Gedabek is a polymetallic ore deposit that has gold together with significant concentrations of copper in the main open pit mine, and an oxide gold-rich zone at Ugur. The Company therefore employs a series of flexible processing routes to optimise metal recoveries and efficiencies. The Company produces gold doré through agitation and heap leaching operations, copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant and also a copper and precious metal concentrate from its flotation plant. A second dedicated crusher line has been commissioned and is now in operation for the flotation plant to enable it to operate independently of the agitation leaching plant.
The Company has forecast metal production for FY 2019 of between 82,000 to 86,000 gold equivalent ounces ("GEOs"). Of the forecast production for FY 2019, between 28,000 to 30,000 GEOs is in the form of copper and gold flotation concentrate.
Anglo Asian is also actively seeking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in order to fulfil its expansion ambitions and become a mid-tier gold and copper metal production company.
Appendix One: JORC Code, 2012 Edition - Table 1 report: Gadir Deposit (Anglo Asian Mining plc)
Mineral Resource statement date: Database as 20 August 2018
The following table provides a summary of assessment and reporting criteria used at the Gadir deposit for the reporting of exploration results, Mineral Resources and Ore Reserves in accordance with the JORC Table 1 checklist in The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2012 Edition).
Section 1 Sampling Techniques and Data
(Criteria in this section applies to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling
techniques * Nature and quality of sampling (eg cut channels, * The majority of the geological information for Gadir
random chips, or specific specialised industry was obtained from diamond core drilling (DD). Both
standard measurement tools appropriate to the surface (60 drillholes) and underground (342
minerals under investigation, such as down hole gamma drillholes) drilling has been completed, for a
sondes, or handheld XRF instruments, etc). These drilling total of 37,970 m.
examples should not be taken as limiting the broad
meaning of sampling.
* In addition, 8,786 channel samples (CH) have been
analysed, with a total length of 8,645 m. Channel
* Include reference to measures taken to ensure sample sample length is typically 1 m, with a width of 10 cm
representivity and the appropriate calibration of any and a depth of 5 cm. Samples are obtained with use of
measurement tools or systems used. a grinding machine.
* Aspects of the determination of mineralisation that * Chip sampling is undertaken for grade control
are Material to the Public Report. purposes but is not captured in the drillhole
database nor databases planned for resource
estimation.
* 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 * Full core was split (HQ and NQ only) longitudinally
from which 3 kg was pulverised to produce a 30 g 50% using a rock diamond saw and half-core samples
charge for fire assay'). In other cases more were taken at typically 1 metre intervals or to rock
explanation may be required, such as where there is contacts if present in the core run for both
coarse gold that has inherent sampling problems. mineralisation and wall rock. The drill core was
Unusual commodities or mineralisation types (eg rotated prior to cutting to maximise structure to
submarine nodules) may warrant disclosure of detailed core axis of the cut core. BQ material is whole-core
information. sampled.
* To ensure representative sampling, diamond drill core
was marked considering mineralisation and alteration
intensity, after ensuring correct core run marking
with regards to recovery.
* Sampling of DD and CH material was systematic and
unbiased.
* Diamond drill sample target weight is 2-3.5 kg prior
to laboratory processing. Fire Assay (FA) analysis is
carried out at the onsite laboratory by Atomic
Absorption Spectroscopy (AAS) - 25 g charges are used
for Au analysis whilst 10 g charges are used for Ag,
Cu and Zn analysis for underground core. Exploration
(i.e. surface) DD core used 50 g charges.
* Channel samples typically weigh between 10-20 kg
prior to laboratory processing. Charges for Au
assaying weigh 25 g whilst 10 g charges are used for
Ag, Cu and Zn analysis.
* Handheld XRF (model THERMO Niton XL3t) was used to
assist with mineral identification during field
mapping and core logging procedures.
------------------------------------------------------------ ------------------------------------------------------------------------------
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * DD accounts for 80% of the material drilling used
hammer, rotary air blast, auger, Bangka, sonic, etc) within the Gadir resource and comprises of HQ, NQ and
and details (eg core diameter, triple or standard BQ core. During the exploration and development
tube, depth of diamond tails, face-sampling bit or phases, DD was completed from both surface and
other type, whether core is oriented and if so, by underground. Infill DD was then completed from
what method, etc). underground locations.
* The majority of the core drilled from the surface was
either HQ (63.5 mm) or NQ (47.6 mm) in diameter.
Underground drilling was completed using NQ or BQ
(36.5 mm diameter) standard tubes.
* Drillcore was not orientated due to technological
limitations in-country.
------------------------------------------------------------ ------------------------------------------------------------------------------
Drill sample
recovery * Method of recording and assessing core and chip * Core recovery was recorded at site, verified at the
sample recoveries and results assessed. core yard and subsequently entered into the database.
Recovery for mineralised sections was generally very
good (in excess of 95%) and over the length of the
* Measures taken to maximise sample recovery and ensure hole was typically > 90%. Recovery measurements were
representative nature of the samples. poorer in fractured and faulted rocks, weathered
zones or dyke contacts - in these zones average
recovery was 85%.
* Whether a relationship exists between sample recovery
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse * From visual inspection of the data, the consultant
material. deemed the core recovery to be good and not have
introduced bias into the subsequent sampling.
* Work to date has not identified a relationship
between grade and sample or core recovery. However,
in core drilling, losses of fines is believed to
result in lower gold grades due to washout in
fracture zones. This is likely to result in an
underestimation of grade, which will be checked
during production.
------------------------------------------------------------ ------------------------------------------------------------------------------
Logging
* Whether core and chip samples have been geologically * All historic and current drill core was logged in
and geotechnically logged to a level of detail to detail for lithology, alteration, mineralisation,
support appropriate Mineral Resource estimation, geological structure and oxidation state by AIMC
mining studies and metallurgical studies. geologists, utilising logging codes and data sheets
as supervised by the Competent Person ("CP"). Data
was captured on paper and manually entered into the
* Whether logging is qualitative or quantitative in database.
nature. Core (or costean, channel, etc) photography.
* Logging was considered sufficient to support Mineral
* The total length and percentage of the relevant Resource estimation, mining studies and metallurgical
intersections logged. studies.
* Rock Quality Designation (RQD) data was recorded for
all core drilling for geotechnical purposes. Fracture
intensity, style, fracture-fill and fragmentation
proportion data was also collected for geotechnical
analysis.
* An independent geotechnical assessment was completed
by the environmental engineering company CQA
International Limited to support operations and to
provide supplementary information for this resource
evaluation.
* DD and CH logging was both quantitative and
qualitative in nature.
* All core was photographed in the core boxes to show
the core box number, core run markers and a scale.
All channel samples/faces were sketched prior to
cutting.
* The entire length of each drillhole (DD & CH) was
logged in full, so 100% of the relevant intersections
were logged.
------------------------------------------------------------ ------------------------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * HQ and NQ full core was split longitudinally in half
and sample half or all core taken. by using a diamond-blade core saw. The core saw is a
preparation 'CM501' manufactured by Norton Clipper and the blades
from the 'GSW' series manufactured by Lissmac.
* If non-core, whether riffled, tube sampled, rotary
split, etc and whether sampled wet or dry.
* Full core of BQ size was sampled and as such, only
coarse reject and pulp rejects were retained.
* For all sample types, the nature, quality and
appropriateness of the sample preparation technique.
* Samples of one half of the HQ/NQ core were taken,
typically at 1 metre intervals, whilst the other half
* Quality control procedures adopted for all was retained as reference core in the tray prior to
sub-sampling stages to maximise representivity of storage. If geological features or contacts warranted
samples. adjustment of the interval, then the intersection
sampled was reduced to confine these features. The
drill core was rotated prior to cutting to maximise
* Measures taken to ensure that the sampling is structure to axis of the cut core - cut lines were
representative of the in situ material collected, drawn on during metre-marking.
including for instance results for field
duplicate/second-half sampling.
* All underground faces are marked-up by the
supervising underground geologist, constrained within
* Whether sample sizes are appropriate to the grain geological and mineralised boundaries. Subsequent CH
size of the material being sampled. sample acquisition was carried out with a rock hammer
(either hand-held or Bosch power tool) and grinding
machines. Samples are collected in calico bags as per
AIMC's face sampling procedure. Typical sample masses
range between 10-20 kg.
* The procedure involves cutting a linear channel
across the vein or orebody in order to obtain the
most representative sample possible for the
designated interval. CH samples are collected from
the floors of the underground workings. When chip
channel sampling is conducted along a rock face, of
plastic sheeting is laid out for the material to fall
on so as to avoid contamination. Sample intervals are
1-1.5 m, 10 cm in width and 5 cm deep. A face sheet
with sketch, sample width, sample number(s) and
locality are generated for each sampled face.
* Samples are bagged with pre-numbered sample tickets
and submitted with a sample submission form to the
onsite laboratory. Underground CH samples have been
used in the Mineral Resource estimate. Chip samples
have not been used in the Mineral Resource estimate
and are primarily used to provide guidance for
mine-mill reconciliations
* No sub-sampling of CH material needs to be carried
out as the samples are deemed 'laboratory-ready' at
the channel face. Samples were sent to the on-site
laboratory for preparation and pulverised ready for
routine AAS and check FA.
* Both DD and CH samples were prepared according best
practice, with initial geological control of the half
core or CH samples, followed by crushing and grinding
at the laboratory sample preparation facility that is
routinely managed for contamination and cleanliness
control.
* Sampling practice is considered as appropriate for
Mineral Resource Estimation.
* Sample preparation at the laboratory is subject to
the following procedure.
o After receiving samples at the laboratory from the
geology department, all samples are cross referenced
with the sample order list. Any errors/omissions are
to be followed-up and rectified.
o All samples are dried in an oven at 105-110degC to
drive off moisture and volatiles. Samples then head
to crushing.
o Crushing - first stage - to -25mm size
o Crushing - second stage - to -10mm size
o Crushing - third stage - to -3mm size
o After crushing the samples are split and 150-250
g of material is taken for assay preparation (depending
upon the drillhole type). The remainder is retained
for reference.
o The material to be assayed is first pulverised to
-75 um prior to delivery to the assaying facility.
o The performance of the laboratory is monitored daily
and at the end of the month when grade control samples
are reconciled with mill production.
o Overall, the sampling practice was deemed by Datamine
to be appropriate for Mineral Resource estimation purposes.
* Quality control procedures were used for all
sub-sampling preparation. This included geological
control over the core cutting, and sampling to ensure
representativeness of the geological interval.
* Petrographic studies have identified the average Au
particle size as being in the order of 5 um. Sample
sizes are therefore deemed appropriate.
------------------------------------------------------------ ------------------------------------------------------------------------------
Quality of
assay data * The nature, quality and appropriateness of the * Laboratory procedures, QA/QC assaying and analysis
and assaying and laboratory procedures used and whether methods employed are industry standard. They are
laboratory the technique is considered partial or total. enforced and supervised by a dedicated laboratory
tests team. AAS and FA techniques were utilised and as such,
both partial and total analytical techniques were
* For geophysical tools, spectrometers, handheld XRF conducted.
instruments, etc, the parameters used in determining
the analysis including instrument make and model,
reading times, calibrations factors applied and their * Handheld XRF (model THERMO Niton XL3t) was used to
derivation, etc. assist with mineral identified during field mapping
and core logging procedures.
* Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory * The onsite laboratory has QA/QC protocols in place
checks) and whether acceptable levels of accuracy (ie and uses an external control laboratory. Calibration
lack of bias) and precision have been established. of the analytical equipment in the laboratory is
considered to represent best practice.
* Comparing the grade control results and mill
performance is a qualitative index of performance -
there was good overall quarterly reconciliation
between grade control results and the mill for Gadir
material.
* All data related to these drillings are located in
the relevant drillhole database. Material drillholes
include only those completed by DD or CH methods as
these impacted on the interpretation of the overall
geometry of the resource. Chip samples were not
considered material as these were predominantly used
for mine-mill reconciliation purposes. The quality of
the QA/QC carried out for Gadir was considered to be
appropriate for resource and reserve estimation
purposes by Datamine.
* QA/QC procedures included the use of field duplicates
of RC samples, blanks, certified standards or
certified reference material ("CRMs") from OREAS
("Ore Research & Exploration Pty Ltd Assay Standards",
Australia), in addition to the laboratory control
that comprised pulp duplicates, coarse duplicates,
and replicate samples. This QA/QC system allowed for
the monitoring of precision and accuracy of assaying
for the Gadir deposit.
* A total of 101 pulp duplicates were assayed at
varying grade ranges. Fifteen pulp duplicates were
assayed for CH samples and 86 for DD samples.
* Au grade ranges as assigned to the Gadir deposit:
Ore Grade Designation Au (from) Au (to)
g/t g/t
---------- --------
Very Low (VL) 0.00 0.30
---------- --------
Low 0.30 1.00
---------- --------
Medium (MED) 1.00 2.00
---------- --------
High 2.00 5.00
---------- --------
Very High (V 5.00 +
HIGH)
---------- --------
* Summary results from the pulp duplicates are
presented in the accompanying Gadir Resource Report
* The following CRMs were used for QA/QC control
purposes as part of this resource run:
Ore Grade CRM Description and target grade(s)
Designation
Name Au Ag Cu Zn
----------------- --------- ---------- -------- --------
g/t g/t % %
----------------- --------- ---------- -------- --------
CRM 22_OREAS
Very Low 501 0.21 0.44 0.28 0.01
----------------- --------- ---------- -------- --------
CRM 30_OREAS
600 0.19 24.31 0.05 0.06
-------------------------------- --------- ---------- -------- --------
CRM 32_OREAS
Low 905 0.40 0.52 0.16 0.01
-------------- ----------------- --------- ---------- -------- --------
CRM 23_OREAS
502c 0.48 0.80 0.78 0.01
-------------------------------- --------- ---------- -------- --------
CRM 17_OREAS
502b 0.49 2.01 0.76 0.01
-------------------------------- --------- ---------- -------- --------
CRM 20_OREAS
620 0.67 38.40 0.18 3.12
-------------------------------- --------- ---------- -------- --------
CRM 2_OREAS
503b 0.69 1.46 0.52 0.01
-------------------------------- --------- ---------- -------- --------
CRM 31_OREAS
601 0.77 49.41 0.10 0.13
-------------------------------- --------- ---------- -------- --------
CRM 16_OREAS
623 0.80 20.40 1.72 1.01
-------------------------------- --------- ---------- -------- --------
CRM 12_OREAS
59d 0.80 - 1.47 -
-------------------------------- --------- ---------- -------- --------
CRM 15_OREAS
Medium 701 1.07 1.11 0.48 0.03
----------------- --------- ---------- -------- --------
CRM 27_OREAS
253 1.22 0.25 0.01 -
-------------------------------- --------- ---------- -------- --------
CRM 19_OREAS
621 1.23 68.00 0.37 5.17
-------------------------------- --------- ---------- -------- --------
CRM 13_OREAS
604 1.43 492.00 2.16 0.25
-------------------------------- --------- ---------- -------- --------
CRM 7_OREAS
504b 1.56 2.98 1.10 0.01
-------------------------------- --------- ---------- -------- --------
CRM 3_OREAS 1.81 - - -
16a
----------------- --------- ---------- -------- --------
CRM 11_OREAS
602 1.95 114.88 0.52 0.41
-------------------------------- --------- ---------- -------- --------
CRM 24_OREAS
High 60d 2.43 4.45 0.01 0.00
----------------- --------- ---------- -------- --------
CRM 4_OREAS
60c 2.45 4.81 0.01 0.01
-------------------------------- --------- ---------- -------- --------
CRM 28_OREAS
254 2.50 0.40 0.01 -
-------------------------------- --------- ---------- -------- --------
CRM 9_OREAS 2.92 - - -
214
----------------- --------- ---------- -------- --------
CRM 10_OREAS 3.04 - - -
17c
----------------- --------- ---------- -------- --------
CRM 6_OREAS
61e 4.51 5.37 0.01 0.00
-------------------------------- --------- ---------- -------- --------
CRM 25_OREAS
61f 4.53 3.61 0.00 -
-------------------------------- --------- ---------- -------- --------
CRM 14_OREAS
Very High 603 5.08 292.92 1.01 0.91
----------------- --------- ---------- -------- --------
CRM 5_OREAS
62c 9.37 9.86 - -
-------------------------------- --------- ---------- -------- --------
CRM 29_OREAS
257 13.96 2.17 0.01 -
-------------------------------- --------- ---------- -------- --------
* Comparison of average Au grades between the onsite
laboratory and the OREAS CRMs (see Report) showed a
general bias towards the onsite laboratory
underestimating the grade, notably for 'Very High'
material; however, overall the bias fell just outside
of 0.1 g/t and so is reasonable.
* The same exercise was also conducted for Ag, Cu and
Zn CRM assays and the results can be viewed in the
Resource Report.
* Production reconciliations between mined grades and
assays correlate well and have been used as an
additional resource to validate metal content.
* The quality of the QA/QC was considered adequate for
resource estimation purposes.
------------------------------------------------------------ ------------------------------------------------------------------------------
Verification
of sampling * The verification of significant intersections by * Significant intersections were verified internally by
and assaying either independent or alternative company personnel. a number of company personnel within the management
structure of the Exploration and Underground Mining
Departments of AIMC. Intersections were defined by
* The use of twinned holes. the geologists and subsequently reviewed and verified
by the Exploration Manager. Further independent
verification was carried out as part of the due
* Documentation of primary data, data entry procedures, diligence for resource estimation by Datamine
data verification, data storage (physical and personnel. Assay intersections were cross-validated
electronic) protocols. with visual drillcore intersections (i.e.
photographs).
* Discuss any adjustment to assay data.
* No twinning of drillholes was carried out at Gadir
however extensive underground development has
confirmed the overall grade and geological
interpretation based on the drillholes.
* Data entry is supervised by a data manager.
Verification and checking procedures are in place.
The format of the data is appropriate for direct
import into Datamine(R) software. All data is stored
in electronic databases within the geology department
and backed up to the secure company electronic server
that has restricted access.
* Four main files are created per hole, relating to its
'collar' details, 'survey' data, 'assay' results and
logged 'geology'. Laboratory data is loaded
electronically by the laboratory department and
validated by the geology department. Any outliers or
anomalous assays are resubmitted.
* Prior to commencement of mining at Gadir, all samples
from the surface exploration campaign that
intersected mineralisation was sent for external
assay at ALS-OMAC in Ireland. This laboratory is
currently the preferred company to carry out external
assaying for AIMC.
* Independent validation of the database was carried
out as part of the resource model generation process
where all data was checked for errors, missing data,
misspelling, interval validation and management of
zero versus 'no data' entries.
* All databases were considered accurate for the
Mineral Resource Estimate.
* No adjustments were made to the assay data. The
quality of the QA/QC is considered adequate for
resource estimation purposes.
------------------------------------------------------------ ------------------------------------------------------------------------------
Location of
data points * Accuracy and quality of surveys used to locate drill * The surface mine area was recently (2017) surveyed by
holes (collar and down-hole surveys), trenches, mine a high-resolution drone survey. Five topographic base
workings and other locations used in Mineral Resource stations were installed and accurately surveyed using
estimation. high precision GPS that was subsequently tied into
the local mine grid using ground-based total station
surveying (utilising the LEICA TS02) equipment. All
* Specification of the grid system used. drillhole collars were then surveyed using the Leica
apparatus.
* Quality and adequacy of topographic control.
* In 2018, new survey equipment was purchased to be
used for precision surveying of drill holes, trenches
and workings. This apparatus comprises two Trimble
R10s, Model 60 and accessories.
* Equipment used for underground surveying comprises a
Leica TCR407 7" Total Station and a GeoSLAM
GS-610090.
* Downhole surveying was carried out on HQ and NQ
drillholes utilising a Reflex EZ-TRAC magnetic and
gravimetric multi-shot instrument, at a downhole
interval of 9 m (after an initial collar shot at 3
m). Downhole surveying was not carried out on BQ
holes.
* The grid system used for the site is Universal
Transverse Mercator 84 WGS Zone 38T (Azerbaijan)
* The level of topographic and survey control was
deemed adequate for the purposes of resource
modelling by Datamine.
------------------------------------------------------------ ------------------------------------------------------------------------------
Data spacing
and * Data spacing for reporting of Exploration Results. * On surface and underground, collar spacing averaged
distribution 20 m over the main mineralised zone and 50 m on the
periphery of the resource. Fan-drilling was also
* Whether the data spacing and distribution is carried out around some underground collar sites to
sufficient to establish the degree of geological and test mineralisation at depth.
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and
classifications applied. * The data spacing and distribution (20 x 20 metre
grid) over the mineralised zones was deemed to be
sufficient to establish the degree of geological and
* Whether sample compositing has been applied. grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedures and
classifications applied. The depth and spacing was
considered appropriate for defining geological and
grade continuity as required for a JORC Mineral
Resource estimate.
* Extensive underground development has tested and
confirmed the existing drillhole data and spacing was
sufficient to establish grade and geological
continuity. The available drill data spacing
represents industry best-practice.
* Compositing to 1 metre intervals was applied.
Residual intervals (
------------------------------------------------------------ ------------------------------------------------------------------------------
Orientation
of data in * Whether the orientation of sampling achieves unbiased * Detailed surface mapping, subsequent drilling and
relation to sampling of possible structures and the extent to underground development enabled the deposit
geological which this is known, considering the deposit type. characteristics to be understood.
structure
* If the relationship between the drilling orientation * CH samples were obtained where mineralisation was
and the orientation of key mineralised structures is intersected. Orientation of the channels was
considered to have introduced a sampling bias, this dependent upon the orientation of the drive and face
should be assessed and reported if material. being sampled.
* Overall, orientation of drilling and sampling was as
perpendicular to mineralisation as was practicable.
* Given the geological understanding and the
application of the drilling grid orientation, grid
spacing and vertical drilling, no orientation-based
sample bias was identified in the data that resulted
in unbiased sampling of structures considering the
deposit type.
------------------------------------------------------------ ------------------------------------------------------------------------------
Sample
security * The measures taken to ensure sample security. * Regarding drill core: each drill site was supervised
by an experienced geologist. The drill core was
placed into wooden or plastic core boxes (sized
specifically for the core diameter) at the drill
site. Once a box was filled, a wooden/plastic lid was
fixed to the box to ensure there was no spillage.
Core box number, drillhole I.D. and from/to metres
were written on both the box and the lid. The core
was then transported to the core storage area and
logging facility, where it was received and logged
into a data sheet. Core logging, cutting and sampling
took place at the secure core management area. The
core samples were bagged with labels both in and on
the bag, and data recorded on a sample sheet. The
samples were transferred to the laboratory, where
they were registered as received, for laboratory
sample preparation works and assaying. Hence, a chain
of custody procedure was followed from core
collection to assaying and storage of reference
material.
* All samples received at the core facility were logged
in and registered with the completion of an "act".
The act was signed by the drilling team supervisor
and core facility supervisor (responsible person).
All core is photographed, subjected to geotechnical
logging, geological logging, samples interval
determinations, bulk density, core cutting, and
sample preparation (each size of fragments 3-5 cm).
* CH and DD samples were weighed, and a Laboratory
Order prepared after cutting was complete (CH samples
were prepared underground at the face). This was
signed by the core facility supervisor prior to
release to the laboratory. On receipt at the
laboratory, the responsible person countersigned the
order acknowledging full delivery of the samples.
* After assaying all reject duplicate samples were
received from laboratory to core facility (again
recorded on the act). All reject samples were placed
into boxes referencing the sample identities and
stored in the core facility.
* In the event of external assaying, AIMC utilised
ALS-OMAC in Ireland. Samples selected for external
assay were recorded on a data sheet and sealed in
appropriate boxes for shipping by air freight.
Communication between the geological department of
AIMC and ALS occurs to monitor the shipment from
despatch, through customs clearance, and upon receipt
of samples. Results were sent electronically by ALS
and loaded to the Company database for study.
------------------------------------------------------------ ------------------------------------------------------------------------------
Audits or
reviews * The results of any audits or reviews of sampling * Reviews on sampling and assaying techniques were
techniques and data. conducted for all data internally and externally (by
Datamine) as part of the resource and reserve
estimation validation procedure. No concerns were
raised as to the procedures or the data results. All
procedures were considered industry standard and well
conducted. Datamine identified no material issues
that would prevent Gadir from reporting Measured,
Indicated and Inferred Mineral Resources.
------------------------------------------------------------ ------------------------------------------------------------------------------
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 * The Gedabek open pit project is located within a
and land including agreements or material issues with third licence area ("Contract Area") that is governed under
tenure parties such as joint ventures, partnerships, a Production Sharing Agreement ("PSA"), as managed by
status overriding royalties, native title interests, the Azerbaijan Ministry of Ecology and Natural
historical sites, wilderness or national park and Resources ("MENR").
environmental settings.
* The PSA grants the Company a number of 'time periods'
* The security of the tenure held at the time of to exploit defined Contract Areas, as agreed upon
reporting along with any known impediments to during the initial signing. The period of time
obtaining a licence to operate in the area. allowed for early-stage exploration of the Contract
Areas to assess prospectivity can be extended if
required.
* A 'development and production period' commences on
the date that the Company issues a notice of
discovery, which runs for 15 years with two
extensions of five years each at the option of the
Company. Full management control of mining in the
Contract Areas rests with AIMC.
* The Gedabek Contract Area, incorporating the Gadir
underground mine, currently operates under this
title.
* Under the PSA, AAM is not subject to currency
exchange restrictions and all imports and exports are
free of tax or other restriction. In addition, MENR
is to use its best endeavours to make available all
necessary land, its own facilities and equipment and
to assist with infrastructure.
* The deposit is not located in any national park.
* At the time of reporting no known impediments to
obtaining a licence to operate in the area exist and
the Contract Area agreement is in good standing.
--------------------------------------------------------------- --------------------------------------------------------------------
Exploration
done by other * Acknowledgment and appraisal of exploration by other * The Gadir deposit was discovered in 2012 by AIMC
parties parties. geologists. As such, previous exploration has not
been carried out by other parties specific to this
deposit.
* During 2012, exploration carried out by AIMC
uncovered an outcrop of rhyolite displaying intense
silica and potassic alteration on the northwestern
flank of the Gedabek operation (about 400 m from the
Gedabek open pit). Samples were assayed and returned
grade and so they were followed-up with an
exploration drillhole.
* A downhole intersection grading 24m at 2.9 g/t Au was
returned for this hole, justifying further
exploration and project development.
* The following work was further completed to define
Gadir:
o Detailed geological and structural mapping (1:5,000
and 1:1,000 scale; 2012-2015)
o Rock chip sampling (650 samples)
o Trenching (5 trenches totalling 200 m length and
160 samples)
o Soil geochemistry study (1,473 samples; 2014)
o Various HQ & NQ surface drill campaigns (2013 - present
day)
o Underground NQ & BQ drill campaigns (2015 - present
day)
--------------------------------------------------------------- --------------------------------------------------------------------
Geology
* Deposit type, geological setting and style of * The Gadir Au-Ag-Cu-Zn deposit is located in the
mineralisation. Gedabek Ore District of the Lesser Caucasus in NW
Azerbaijan, adjacent to the city of Gedabay and 48 km
west of the city of Ganja. Gadir is characterised as
a low-sulphidation (LS) epithermal system.
* The portal to Gadir was independently located on
Google Earth at latitude 40deg58'59.21"N and
longitude 45deg79'03.54"E and tunnelled into the
flanks of Yogundag Mountain.
* The Gadir ore deposit is located within the large
Gedabek-Garadag volcanic-plutonic system. This system
is characterised by a complex internal structure
indicative of repeated tectonic movement and
multi-cyclic activity. Yogundag Mountain is a
porphyry-epithermal zone, with known deposits in the
area (e.g. Gadir, Gedabek, Umid and Zefer) believed
to represent the upper portion of the mineralising
system.
* The Gadir orebody has a complicated geological
structure and hosts intrusive rocks of different ages
and compositions. Three sets of regional fault zones
controlling mineralisation have been identified and
are characterised on the basis of strike direction
and morphological characteristics:
* NW-SE striking faults (e.g. Gedabek-Bittibulag Deep
Fault, Misdag Fault)
* NE-trending faults (e.g. Gedabek-Ertepe Fault,
Gerger-Arykhdam Fault, Gadir ore-controlling faults)
* Local transverse faults
* The drilling identified a series of vertically
stacked, shallow-dipping mineralised lenses within an
area of approximately 50 x 100 metres over about 150
m height.
* Various forms of hydrothermal alteration are found to
occur at Gadir. Propylitic alteration (+
chlorite/epidote) is observed in the andesitic tuff
formation. Argillic alteration (+ clay minerals) is
found in the wall rocks and silicification is common
in the volcanic units as well as the central part of
the deposit.
* Mineralisation primarily exploited at Gadir is Au-Ag
from a polymetallic ore, also containing base metals
of Cu and Zn. The main ore minerals are sulphides,
including pyrite, chalcopyrite, sphalerite and trace
galena.
--------------------------------------------------------------- --------------------------------------------------------------------
Drill hole
Information * A summary of all information material to the * A summary of the type and metres of drilling
understanding of the exploration results including a completed is shown below. Material drill hole
tabulation of the following information for all information provided in Appendix B in the Resource
Material drill holes: Report.
Purpose Drillhole Number of Total Length
o easting and northing of the Type Holes (m)
drill hole collar Surface DD 60 22,458
o elevation or RL (Reduced ----------- ---------- -------------
Level - elevation above sea Underground DD 342 15,512
level in metres) of the drill ----------- ---------- -------------
hole collar CH - 8,645
o dip and azimuth of the hole ---------------------------- ---------- -------------
o down hole length and interception TOTAL DRILLING 402 46,615
depth ---------- -------------
o hole length.
* If the exclusion of this information is justified on * Chip samples are primarily used to provide guidance
the basis that the information is not Material and for mine-mill reconciliation purposes and have not
this exclusion does not detract from the been included as part of this Mineral Resource
understanding of the report, the Competent Person estimation.
should clearly explain why this is the case.
* The database contains information related to
geological work up until 20(th) August 2018.
--------------------------------------------------------------- --------------------------------------------------------------------
Data
aggregation * In reporting Exploration Results, weighting averaging * Drilling results were reported using intersection
methods techniques, maximum and/or minimum grade truncations intervals based on an Au grade > 0.3 g/t and internal
(eg cutting of high grades) and cut-off grades are waste >= 1 m thickness. Grades of both Au and Ag
usually Material and should be stated. within the intersections were stated and the results
presented to 2 decimal places.
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade * No data aggregation methods have been applied to the
results, the procedure used for such aggregation drillhole data for reporting of exploration results.
should be stated and some typical examples of such
aggregations should be shown in detail.
* No metal equivalent values have been reported.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
--------------------------------------------------------------- --------------------------------------------------------------------
Relationship
between * These relationships are particularly important in the * Overall orientation of drilling and sampling is as
mineralisation reporting of Exploration Results. perpendicular to the orebody as is practicable. The
widths and geometry of the Gadir orebody has been deemed to be
intercept suitably tested and confirmed with surface and
lengths * If the geometry of the mineralisation with respect to underground drilling, as well as underground
the drill hole angle is known, its nature should be development.
reported.
* A good correlation exists between the mineralisation
* If it is not known and only the down hole lengths are widths, intercept lengths and orebody modelling and
reported, there should be a clear statement to this this has been tested and proven through development
effect (eg 'down hole length, true width not known'). intersections
* Given the geological understanding and the
application of the drilling grid orientation and grid
spacing, along with underground development, no
orientation-based sample bias has been identified in
the data that resulted in unbiased sampling of
structures considering the deposit type.
* All intercepts are reported as down-hole lengths.
* Grade control drilling is balanced with exploratory
and target-testing programmes.
--------------------------------------------------------------- --------------------------------------------------------------------
Diagrams
* Appropriate maps and sections (with scales) and * Appropriate diagrams and sections have been included
tabulations of intercepts should be included for any in the Mineral Resources report.
significant discovery being reported. These should
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional * Plans and sections are updated regularly onsite to
views. reflect the latest information (e.g. underground
development, geological interpretations). The AIMC
Survey Department update working headings on a
monthly basis in Surpac(R).
--------------------------------------------------------------- --------------------------------------------------------------------
Balanced
reporting * Where comprehensive reporting of all Exploration * Representative reporting of mineralisation styles and
Results is not practicable, representative reporting intervals has been previously reported by AAM via
of both low and high grades and/or widths should be regulated news service (RNS) announcements on the
practiced to avoid misleading reporting of London Stock Exchange (AIM), on the Company website
Exploration Results. or at conferences and roadshows.
* The report has been deemed balanced and reflects the
views of both Datamine and the CP.
--------------------------------------------------------------- --------------------------------------------------------------------
Other
substantive * Other exploration data, if meaningful and material, * Additional information including photographs of the
exploration should be reported including (but not limited to): Gadir area can be viewed on the Anglo Asian Mining
data geological observations; geophysical survey results; website: www.angloasianmining.com
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock * An independent geotechnical assessment was completed
characteristics; potential deleterious or by CQA to support operations and to provide
contaminating substances. supplementary information for this resource
evaluation. This assessment of Gadir involved
carrying out a desk study, completion of fieldwork
(e.g. assessing tunnel morphology and existing ground
support, estimating water inflows) and then
interpretation of the data. The results of this study
and a copy of the report can be found in the Gadir
Ore Reserves report.
--------------------------------------------------------------- --------------------------------------------------------------------
Further work
* The nature and scale of planned further work (eg * Further exploration and grade control drilling is
tests for lateral extensions or depth extensions or planned at the Gadir deposit. The targets for this
large-scale step-out drilling). drilling include:
* Diagrams clearly highlighting the areas of possible o Down-dip extension of the mineralisation
extensions, including the main geological o Additional drilling chasing mineralisation along-strike
interpretations and future drilling areas, provided o Exploration drilling between Gadir and Gedabek
this information is not commercially sensitive. * No diagrams to show future planned works are
presented in this report as the information is
commercially sensitive.
--------------------------------------------------------------- --------------------------------------------------------------------
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 * The Gadir database is stored in Access(R) software.
corrupted by, for example, transcription or keying The data used for the Gadir resource was compiled
errors, between its initial collection and its use from two different databases:
for Mineral Resource estimation purposes.
o the 'Exploration Database' - surface DD holes
* Data validation procedures used. o the 'UG database' - underground CH samples and DD
holes
* A dedicated database manager has been assigned to
monitor all databases. Tasks include checking the
data entered against the laboratory report and survey
data.
* Geological data is entered by a geologist to ensure
there is no confusion over terminology whilst
laboratory assay data is entered by the data entry
staff.
* A variety of manual and data checks are in place to
check against human error of data entry.
* All original geological logs, survey data and
laboratory results sheets are retained in a secure
location in hard and soft copy format.
* It was noted by Datamine that the supplied Gadir
database was not subjected to a full independent
database audit prior to estimation as it was
understood that the data were audited during upload.
* All data were imported to Datamine Studio RM(R)
software and further validation processes completed.
At this stage, any errors found were corrected.
* The validation procedures used include:
o Drillhole depths for the geology, survey and assay
logs do not exceed the recorded drilled depth
o Dates are in the correct format and are correct
o Set limits (e.g. for northing, easting, assay values)
are not exceeded
o Valid geology codes (e.g. lithology, alteration etc.)
have been used
o Sampling intervals are checked for gaps and overlaps
* After the data has been loaded into the database, the
following checks are carried out:
o Visual checks that collar locations are correct and
compared with existing information (e.g. development
wireframes)
o Visual checks of drillhole traces for unusual traces
and comparing the actual drillhole strings against
the planned strings
* Hence there are several levels of control. This final
point was also checked by Datamine prior to
modelling.
-------------------------------------------------------------- --------------------------------------------------------------------
Site visits
* Comment on any site visits undertaken by the * Datamine consultants developed and audited the Gadir
Competent Person and the outcome of those visits. Mineral Resource Block Model for the Gadir
underground mine. Two Datamine engineers worked on
the resources and reserves (one assigned to each
* If no site visits have been undertaken indicate why project) and were able to verify work practice and
this is the case. procedures.
* Yerzhan Uzakbayev (Senior Resource Geologist;
Datamine) visited Gadir for 9 days in August 2018 and
worked on the Mineral Resources estimation.
* Aidar Kairbekov (Senior Mining Consultant; Datamine)
visited Gadir for 5 days in October 2018 and worked
on the Ore Reserves calculation.
* The CP is an employee of the company and as such has
been actively in a position to be fully aware of all
stages of the exploration and project development.
The CP has worked very closely with the independent
resource and reserve estimation staff of Datamine,
both on site and remotely, to ensure knowledge
transfer of the geological situation, to allow
geological "credibility" to the modelling process.
-------------------------------------------------------------- --------------------------------------------------------------------
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the * There is confidence in the overall interpretation of
geological interpretation of the mineral deposit. the Gadir mineral deposit. There is some geology and
grade distribution uncertainty on the local scale
however this is mitigated by close-spaced fan
* Nature of the data used and of any assumptions made. drilling at 15 m collar spacing as well as
underground development information.
* The effect, if any, of alternative interpretations on
Mineral Resource estimation. * The geological interpretation is considered robust.
Geological data collection has included surface
mapping, outcrop sampling, core drilling (surface and
* The use of geology in guiding and controlling Mineral underground) and geotechnical assessment. This has
Resource estimation. amassed a significant amount of information for the
deposit. Various software has been used to model the
deposit, including Leapfrog(R), Surpac(R) and
* The factors affecting continuity both of grade and Datamine(R) packages.
geology.
* The geological team have worked in the licence area
for many years and the understanding and confidence
of the geological interpretation is considered high.
Vitaly Khorst (Senior Underground Geologist; AIMC)
was involved with geological interpretation and
modelling of Gadir with Yerzhan Uzakbayev (Senior
Resource Geologist; Datamine).
* No alternative geological interpretation of the
mineral deposit exists at this time and so the
Mineral Resources estimate is unaffected.
* The geology has guided the resource estimation,
especially the structural control where, for example,
faulting has defined "hard" boundaries to
mineralisation. This deposit-scale structural
orientation was used to control the drilling grid and
resource estimation search ellipse orientations.
* Grade and geological continuity have been established
by the extensive 3D data collection. Gadir has
dimensions of about 500 metres by 400 metres and the
continuity is well understood, especially in relation
to structural effects.
* A geological interpretation of the Gadir orebody was
completed utilising geological sections typically at
spacing of about 5-10 metres. These interpretations
were used to form a wireframe solid in Datamine
Studio RM(R) that was subsequently used as the main
domain/mineralised zone for resource estimation.
-------------------------------------------------------------- --------------------------------------------------------------------
Dimensions
* The extent and variability of the Mineral Resource * The footprint of the whole mineralisation zone is
expressed as length (along strike or otherwise), plan about 500 metres by 400 metres, with about 200 m
width, and depth below surface to the upper and lower overall thickness.
limits of the Mineral Resource.
* The average surface elevation around Gadir is 1717.39
m RL. The maximum local RL is 1799.24 m and the
minimum local RL is 1654.24 m.
* The elevation of the centre of the block model
(within mineralisation) is 1436.89 m RL. The upper
elevation of the block model (within mineralisation)
is 1537.25 m RL and the lowest elevation is 1316.50 m
RL. All measurements taken from the centre of the
block.
* The elevation of the centre of the block model
(including waste) is 1446.72 m RL. The upper
elevation of the block model (including waste) is
1796.50 m RL and the lowest elevation is 1202.75 m
RL. All measurements taken from the centre of the
block.
* The initial search orientations applied to the model
related to the geometry of the orebody. A bearing of
-35deg and dip of -30deg was applied.
-------------------------------------------------------------- --------------------------------------------------------------------
Estimation
and modelling * The nature and appropriateness of the estimation * Estimation was completed using Datamine Studio RM(R)
techniques technique(s) applied and key assumptions, including on a parent cell basis. The Gadir Resource Model is a
treatment of extreme grade values, domaining, sub-celled block model controlled by the geological
interpolation parameters and maximum distance of domains. In addition, both hard boundaries and
extrapolation from data points. If a computer top-capping was used for all variables.
assisted estimation method was chosen include a
description of computer software and parameters used.
* Top-capping was applied to Au, Ag, Cu and Zn assays
to minimise the impact of grade outliers/extreme
* The availability of check estimates, previous values, reduce the coefficient of variation ("CV")
estimates and/or mine production records and whether within the mineralisation boundary and minimise the
the Mineral Resource estimate takes appropriate impact on the ordinary kriging ("OK") estimation.
account of such data.
o Au top-cap: 115.00 g/t
* The assumptions made regarding recovery of o Ag top-cap: 480.00 g/t
by-products. o Cu top-cap: 8.50%
o Zn top-cap: 22.00%
* Estimation was conducted via OK using three 'passes'.
* Estimation of deleterious elements or other non-grade Inverse Power Distance ("IPD") estimation was
variables of economic significance (eg sulphur for performed as well in order to validate and compare
acid mine drainage characterisation). the two estimations.
* In the case of block model interpolation, the block o Full block estimation was performed, negative kriging
size in relation to the average sample spacing and weights were set to zero and estimation kriging variances
the search employed. greater than the respective variogram variance were
reset to the variogram sill.
o Initial search orientations were derived from the
* Any assumptions behind modelling of selective mining principal structural orientations of the mineralisation.
units. The principal search ranges for Au were set at 7 x
8 x 7 m. Second and third passes with x2.5 and x3.5
multipliers for the search ranges were applied. Minimum
* Any assumptions about correlation between variables. and maximum samples per estimate were:
o Pass 1 - 16 minimum; 32 maximum
o Pass 2 - 10 minimum; 32 maximum
* Description of how the geological interpretation was o Pass 3 - 3 minimum; 20 maximum
used to control the resource estimates. * The search was orientated along the plane of
mineralisation. This correlated with the average
orientation of the Au, Ag, Cu and Zn variography.
* Discussion of basis for using or not using grade
cutting or capping.
* The Mineral Resources Estimate was subsequently
depleted for mining to the end of August 2018.
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and
use of reconciliation data if available. * No assumptions regarding the recovery of by-products
were applied.
* No assumptions relating to deleterious elements or
other non-grade variables of economic significance
were applied.
* The parent cell size of the block model is 5 mX x 5
mY x 5 mZ. This cell size was derived from the
extensive underground ore development, infill and
grade control drilling, kriging efficiency and slope
of regression analysis. A parent cell height of 5 m
was deemed optimal for underground planning purposes.
* Waste blocking was also set to 5 x 5 x 5 m sizing.
* No selective mining unit assumptions were made.
* Available testwork indicated possible correlation
between grade variables and bulk density data. The
grade variables were modelled independently based on
the Au domaining (the main revenue for the
operation).
* Local knowledge of the mining area and the typical
structures from exposures provided the bases for
interpretation. This was used to create 3D solids.
These solids were used to define hard boundaries
during estimation, as observed and verified during
mining operations.
* As part of the mining process, grade control drilling
,
truck sampling and process reconciliation forms part
of the daily management of the operations. As such,
extensive production data is available for
comparison. The relative accuracy of the estimated
resource compares well to the production data and the
confidence in the estimate, given the amount of
geological data, is considered high.
* The OK and IPD estimations were validated by:
o Visual comparison of sections and plans with block
estimates and composite intervals.
o Statistical comparison of grade distributions for
block estimates and declustered composites.
o Swath plots were created of block model estimates
and declustered composites in x,y,z orientations for
Au, Ag, Cu and Zn mineralisation.
* These validations confirmed that there was a good
correlation between declustered composites and
declustered block model estimates. Instances of
over-estimation was not encountered during analysis.
* The estimation method is considered appropriate for
the style of mineralisation and geometry of the
mineralised zone.
-------------------------------------------------------------- --------------------------------------------------------------------
Moisture * Tonnage was estimated on a dry basis.
* 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 * Grade continuity was assessed at a range of cut-offs
parameters applied. between 0.1 g/t and 3.0 g/t Au in 0.1 g/t increments.
A tonnage-grade table and graph were prepared based
on these variable cut-off grades. Following
interrogation of this data, a 0.5 g/t Au cut-off
grade was applied for the Gadir deposit.
-------------------------------------------------------------- --------------------------------------------------------------------
Mining factors
or assumptions * Assumptions made regarding possible mining methods, * This resource estimation was carried out on
minimum mining dimensions and internal (or, if mineralisation that is currently being mined via
applicable, external) mining dilution. It is always underground methods.
necessary as part of the process of determining
reasonable prospects for eventual economic extraction
to consider potential mining methods, but the * The ore body is being worked using overhand stoping
assumptions made regarding mining methods and in the upper levels where the dip is steeper and room
parameters when estimating Mineral Resources may not and pillar workings in the lower levels, where the
always be rigorous. Where this is the case, this dip is shallower.
should be reported with an explanation of the basis
of the mining assumptions made.
* The workings are connected to the spiral decline by
drifts. Ore intersections along these drives are
sampled for grade evaluation. The vertical distance
between drifts for both mining methods is 10 m.
* Mining dilution and mining dimensions are referenced
in Section 4 (Estimation and Reporting of Ore
reserves).
* The current mining and ore extraction methodologies
are appropriate for the geological conditions. The
efficiency of extraction may be increased by
sub-level stopping where the ore body is sufficiently
thick and continuous.
* Other mining factors are not applied at this stage.
* Mineral Resources are developed by ore drives which
are sampled and thereafter the appropriate mining
method confirmed.
-------------------------------------------------------------- --------------------------------------------------------------------
Metallurgical
factors or * The basis for assumptions or predictions regarding * The Company currently operates an agitation leach
assumptions metallurgical amenability. It is always necessary as plant, flotation plant, crushed heap leach pad and a
part of the process of determining reasonable run-of-mine dump leach facility.
prospects for eventual economic extraction to
consider potential metallurgical methods, but the
assumptions regarding metallurgical treatment * Ore is blended with material from other AIMC
processes and parameters made when reporting Mineral operations to meet mill production targets. These
Resources may not always be rigorous. Where this is targets therefore dictate the processing route the
the case, this should be reported with an explanatio material follows.
n
of the basis of the metallurgical assumptions made.
* The various plant operations have been in use since
the start of extraction at Gedabek open pit (2009).
As such, the basis for assumptions and predictions of
processing routes and type of "ores" suitable for
each process available are well understood.
* Due to the high-grade nature of the ore, Gadir ore is
typically processed via AGL.
* No metallurgical factor assumptions were used during
this estimation however these are discussed in
Section 4 (Estimation and Reporting of Ore reserves).
-------------------------------------------------------------- --------------------------------------------------------------------
Environmental
factors or * Assumptions made regarding possible waste and process * The Gadir underground deposit is located in the
assumptions residue disposal options. It is always necessary as Gedabek Contract Area where AIMC currently operates
part of the process of determining reasonable two other mines (both open pit).
prospects for eventual economic extraction to
consider the potential environmental impacts of the
mining and processing operation. While at this stage * Approximately 20% of mine rock waste remains
the determination of potential environmental impacts, underground to be used primarily as stope-backfill
particularly for a greenfields project, may not material. The remainder is trucked to the surface
always be well advanced, the status of early waste dump.
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an * As part of the initial start-up, environmental
explanation of the environmental assumptions made. studies and impacts were assessed and reported for
Gedabek. This included the nature of process waste as
managed in the tailings management facility ("TMF").
Other waste products are fully managed under the AIMC
HSEC team, including disposal of mine equipment waste
such as lubricants and oils).
* CQA has carried out a study of production waste
management, in addition to designing and supervising
the construction of the TMF and its recent expansion.
CQA have permanent representation at Gadir and
conduct monitoring of their baseline environmental
systems (e.g. in local waterways).
* No environmental assumptions were used during this
estimation however they are discussed in Section 4
(Estimation and Reporting of Ore Reserves).
-------------------------------------------------------------- --------------------------------------------------------------------
Bulk density
* Whether assumed or determined. If assumed, the basis * Bulk density values were analysed and determined. A
for the assumptions. If determined, the method used, total of 1,818 samples were tested by AIMC from
whether wet or dry, the frequency of the measurements, selected core samples, which comprised both
the nature, size and representativeness of the mineralisation and waste rocks. The density was
samples. tested by rock type, extent of alteration and depth.
The method used was hydrostatic weighing.
* The bulk density for bulk material must have been
measured by methods that adequately account for void * Of the 1,818 samples, 292 density measurement samples
spaces (vugs, porosity, etc), moisture and were used to calculate the average density of the
differences between rock and alteration zones within ore.
the deposit.
* The samples within the ore material had an average
* Discuss assumptions for bulk density estimates used density of 2.8 t/m3 and the waste rock were assigned
in the evaluation process of the different materials. a density of 2.5 t/m3. These densities have been used
for resource calculation.
* It should be noted that DD samples were tested for
density, not CH samples.
* Density data are considered appropriate for Mineral
Resource and Mineral Reserve estimation.
-------------------------------------------------------------- --------------------------------------------------------------------
Classification
* The basis for the classification of the Mineral * The Mineral Resource has been classified on the basis
Resources into varying confidence categories. of confidence in the following criteria:
* Whether appropriate account has been taken of all o AIMC have been involved with the development of the
relevant factors (ie relative confidence in project, from exploration, construction, production
tonnage/grade estimations, reliability of input data, and through to processing, since its discovery in 2012
confidence in continuity of geology and metal values, o The nature and associated confidence in the
quality, quantity and distribution of the data). interpretation
of the mineralisation
o Proximity to existing underground workings
* Whether the result appropriately reflects the o DD and CH spacing and density
Competent Person's view of the deposit. o DD and CH sampling density and average distance between
samples informing the estimate
o The degree of interpolation versus extrapolation,
as identified by the estimation pass
o The kriging efficiency and slope of regression of
the final estimate
o The overall extents of the Gadir orebody - for example,
areas supported by less than two drillholes (e.g. at
the periphery) were reclassified as 'Exploration Potential'
* Depending on the estimation parameters (described
above), the Gadir resources were classified as
Measured, Indicated or Inferred Mineral Resources, as
defined by the parameters below. Additional
'Exploration Potential', that fall outside Inferred
parameters, have also been considered.
o Measured: Blocks estimated in search volume 1 with
a minimum 16 samples (maximum of 32) and maximum of
5 per drillhole within 25 m of workings.
o Indicated: Blocks estimated in search volume 2 with
a minimum 10 samples (maximum of 32) and maximum of
5 per drillhole within 25 m of workings.
o Inferred: Blocks estimated in search volume 2 with
a minimum 10 samples (maximum of 32) and maximum of
5 per drillhole outside of 25 m of workings or blocks
estimated in search volume 3 with a minimum 5 samples
(maximum of 20) and maximum of 5 per drillhole outside
of 25 m of workings.
o Exploration Potential: Blocks estimated in search
volume 3 with a minimum 3 samples (maximum of 20) and
all the blocks estimated less than 5 samples, or all
other material not classified within the Resource
Categories
and parameters above.
* It is anticipated that material classified as
'Inferred' or 'Exploration Potential' may be upgraded
with further drilling and sampling.
* The results reflect the CP's view of the deposit.
-------------------------------------------------------------- --------------------------------------------------------------------
Audits or
reviews * The results of any audits or reviews of Mineral * Datamine consultants have been involved with other
Resource estimates. mining projects owned by the Company within the same
contract area as the Gadir underground mine and as
such are familiar with the processing methods
available, value chain of the mining and cost
structure.
* The data used as part of this project were audited,
validated and considered adequate for Mineral
Resource estimates - all aspects of the data
collection and management were observed and
evaluated.
* Internal company and external reviews of the Mineral
Resources yield estimates that are consistent with
the Mineral Resource results.
-------------------------------------------------------------- --------------------------------------------------------------------
Discussion
of relative * Where appropriate a statement of the relative * The relative accuracy of the Gadir Mineral Resource
accuracy/ accuracy and confidence level in the Mineral Resource estimate is reflected in the applied Mineral Resource
confidence estimate using an approach or procedure deemed classification as per the JORC Code, 2012 Edition.
appropriate by the Competent Person. For example, the
application of statistical or geostatistical
procedures to quantify the relative accuracy of the * Confidence is high due to successful development and
resource within stated confidence limits, or, if such production of the deposit since 2015. There is good
an approach is not deemed appropriate, a qualitative reconciliation between mine and mill production
discussion of the factors that could affect the grades.
relative accuracy and confidence of the estimate.
* The August 2018 Gadir Mineral Resources classified as
* The statement should specify whether it relates to Measured and Indicated are considered local estimates
global or local estimates, and, if local, state the of tonnage and grade. Areas classified as Inferred
relevant tonnages, which should be relevant to are considered to be a global estimate of tonnage and
technical and economic evaluation. Documentation grade.
should include assumptions made and the procedures
used.
* Regions classified as Exploration Potential contain
material that is not considered sufficiently
* These statements of relative accuracy and confidence well-defined, at this point in time, to allow mining
of the estimate should be compared with production operations to develop to these areas to extract the
data, where available. material without considerable risk. However, they are
considered to be areas for future investigation -
further drilling to increase geological confidence
and sample/assay density will be able to confirm
potential mineralisation.
* The Gadir Mineral Resources table (for Au only) is
presented below, with an Au cut-off of 0.5 g/t and
depleted for mining development and production up
until August 2018:
MINERAL RESOURCES Tonnage Gold
(Cut-off grade
0.5 g/t Au)
----------------------
kt g/t koz
---------------------- -------- ----- ------
Measured 540 3.70 64.2
-------- ----- ------
Indicated 1,235 2.04 81.0
-------- ----- ------
Measured + Indicated 1,775 2.54 145.2
-------- ----- ------
Inferred 571 1.48 27.2
-------- ----- ------
Total 2,347 2.29 172.4
-------- ----- ------
Exploration 5 1.37 0.2
-------- ----- ------
Note that due to rounding, numbers presented may not
add up precisely to totals.
* Resources for Ag, Cu and Zn are presented in the main
body of the report.
* Production data is available for block model
comparison. The relative accuracy of the estimation
compares well to the production data, and the
confidence in the estimate given the amount of
geological data is considered high. Future extraction
of mineralisation, grade control and mining data will
continue to be used to compare with the Resource
model.
* The Mineral Resource Estimate (August 2018) is
considered appropriate by the CP.
* It is the CP's opinion that the classification has
taken into account all relevant factors, local
knowledge of the orebody and wealth of information
accumulated since the commencement of exploration of
Gadir.
-------------------------------------------------------------- --------------------------------------------------------------------
Section 4 Estimation and Reporting of Ore Reserves
(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral
Resource * Description of the Mineral Resource estimate used as * Refer to Section 3 (Estimation and Reporting of
estimate for a basis for the conversion to an Ore Reserve. Mineral Resources) for more detailed information
conversion regarding the Gadir Mineral Resource estimate.
to Ore
Reserves * Clear statement as to whether the Mineral Resources
are reported additional to, or inclusive of, the Ore * The Ore Reserves calculation for Gadir was derived
Reserves. from the Gadir Mineral Resource estimate, dated
13(th) October 2018. The Model had a cut-off grade of
0.5 g/t Au applied and was depleted for mining
development and production up until August 2018.
* The Resource Model assigns material to either
Measured, Indicated or Inferred categories dependent
upon variables discussed in Section 3 (Estimation and
Reporting of Mineral Resources). The 'Exploration
Potential' category includes mineralised material
that falls outside of Inferred parameters.
* Four tables have been prepared for each estimated
commodity showing tonnes & grade, the contained metal
by class and the percentage of metal by class. The
resources from each model are presented below:
MINERAL RESOURCES Tonnage Gold
(Cut-off grade
0.5 g/t Au)
----------------------
kt g/t koz % koz
---------------------- -------- ----- ------ ------
Measured 540 3.70 64.2 37%
-------- ----- ------ ------
Indicated 1,235 2.04 81.0 47%
-------- ----- ------ ------
Measured + Indicated 1,775 2.54 145.2 84%
-------- ----- ------ ------
Inferred 571 1.48 27.2 16%
-------- ----- ------ ------
Total 2,347 2.29 172.4 100%
-------- ----- ------ ------
Exploration 5 1.37 0.2 -
-------- ----- ------ ------
MINERAL RESOURCES Tonnage Silver
----------------------
kt g/t koz % koz
---------------------- -------- ------ ------ ------
Measured 540 17.49 303.6 36%
-------- ------ ------ ------
Indicated 1,235 10.89 432.4 51%
-------- ------ ------ ------
Measured + Indicated 1,775 12.90 736.1 88%
-------- ------ ------ ------
Inferred 571 5.68 104.4 12%
-------- ------ ------ ------
Total 2,347 11.14 840.4 100%
-------- ------ ------ ------
Exploration 5 5.94 0.9 cc
-------- ------ ------ ------
MINERAL RESOURCES Tonnage Copper
----------------------
kt % t % t
---------------------- -------- ----- ------ -----
Measured 540 0.29 1,566 41%
-------- ----- ------ -----
Indicated 1,235 0.14 1,729 45%
-------- ----- ------ -----
Measured + Indicated 1,775 0.21 3,295 85%
-------- ----- ------ -----
Inferred 571 0.10 571 15%
-------- ----- ------ -----
Total 2,347 0.19 3,866 100%
-------- ----- ------ -----
Exploration 5 0.09 2,470 -
-------- ----- ------ -----
MINERAL RESOURCES Tonnage Zinc
----------------------
kt % t % t
---------------------- -------- ----- ------- -----
Measured 540 1.01 5,454 31%
-------- ----- ------- -----
Indicated 1,235 0.73 9,016 52%
-------- ----- ------- -----
Measured + Indicated 1,775 0.84 14,470 83%
-------- ----- ------- -----
Inferred 571 0.52 2,972 17%
-------- ----- ------- -----
Total 2,347 0.78 17,442 100%
-------- ----- ------- -----
Exploration 5 0.60 7,620 -
-------- ----- ------- -----
Note that due to rounding, numbers presented may not
add up precisely to totals.
* Only Resources defined to Measured and Indicated were
considered for Ore Reserve calculation to Proved and
Probable for Gadir.
* The Ore Reserve statement is inclusive (not
additional to) of the Resource statement.
------------------------------------------------------------ --------------------------------------------------------------------------
Site visits
* Comment on any site visits undertaken by the * Datamine consultants developed and audited the Ore
Competent Person and the outcome of those visits. Reserves estimation for the Gadir underground mine.
Two Datamine engineers worked on the resources and
reserves (one assigned to each project) and were able
* If no site visits have been undertaken indicate why to verify work practice and procedures.
this is the case.
* Aidar Kairbekov (Senior Mining Consultant; Datamine)
visited Gadir for 5 days in October 2018 and worked
on the Ore Reserves calculation.
* The CP is an employee of the company and as such has
been actively in a position to be fully aware of all
stages of the exploration and project development.
The CP has worked very closely with the independent
resource and reserve estimation staff of Datamine,
both on site and remotely, to ensure knowledge
transfer of the geological situation, to allow
geological "credibility" to the modelling process.
------------------------------------------------------------ --------------------------------------------------------------------------
Study status
* The type and level of study undertaken to enable * Study undertaken to enable Mineral Resources to be
Mineral Resources to be converted to Ore Reserves. converted to Ore Reserves was completed to
Feasibility standard. As the mine has been operating
for nearly four years, operating costs are well
* The Code requires that a study to at least understood, with continuous data generated since
Pre-Feasibility Study level has been undertaken to commencement of mining, and with the geological data
convert Mineral Resources to Ore Reserves. Such being generated from a tightly-spaced drilling grid.
studies will have been carried out and will have Extraction is reasonably justified and calculated to
determined a mine plan that is technically achievable be economically mineable as of the modifying
and economically viable, and that material Modifying conditions reported.
Factors have been considered.
* The ore will continue to be mined utilising the
current mining fleet and will be processed in the
current processing facilities of the Company which
operates two other mines in the same Contract Area.
* The modifying factors used in conversion of Mineral
Resources to Ore Reserves were based on
reconciliation and observation of past mining and
processing performance.
* A technically achievable mine plan that is
economically viable has been designed taking into
consideration the JORC resources and modifying
factors.
* Confidence in the calculations and results is
considered high.
* Extraction of ore from the Gadir mine will continue.
------------------------------------------------------------ --------------------------------------------------------------------------
Cut-off
parameters * The basis of the cut-off grade(s) or quality * Financial factors included in the COG estimates are
parameters applied. mining, process and overhead costs, along with mining
dilution, payable gold and silver prices and
processing recovery.
* In 2018, AAM completed an exercise for estimation of
various COGs based on agreed economic parameters with
the Technical Services team. A "strategic" COG of 1.2
g/t Au was applied to the Resource Model during
calculation of the Ore Reserves as established by AAM
(break-even cut-off, "BECOG", plus a return on
capital and margin).
* BECOG was calculated at 0.93 g/t Au.
* The COG was verified using a forecasted Au price,
costs and metallurgical recoveries from the past
financial year. A 1.2 g/t Au COG was applied to
create initial stope shapes.
------------------------------------------------------------ --------------------------------------------------------------------------
Mining factors
or assumptions * The method and assumptions used as reported in the * The 2018 Gadir Mineral Resources Block Model was used
Pre-Feasibility or Feasibility Study to convert the as the basis for stope and development design. No
Mineral Resource to an Ore Reserve (i.e. either by modifications were made to this model for mine design
application of appropriate factors by optimisation or purposes.
by preliminary or detailed design).
* The modifying factors and assumptions used in the
* The choice, nature and appropriateness of the conversion of Mineral Resources to Ore Reserves were
selected mining method(s) and other mining parameters based on reconciliation and observation of past
including associated design issues such as pre-strip, mining and processing performance, as Gadir has been
access, etc. in production since 2015.
* The assumptions made regarding geotechnical * Ore Reserves were calculated by generating mineable
parameters (eg pit slopes, stope sizes, etc), grade shapes for all areas that contained Measured or
control and pre-production drilling. Indicated Resources. Ore drive development for access
was also considered.
* The major assumptions made and Mineral Resource model
used for pit and stope optimisation (if appropriate). * The underground stope optimisation was run using the
industry standard Datamine MSO(R) software package.
Every stope shape output from MSO(R) was manually
* The mining dilution factors used. inspected to determine its potential for eventual
extraction. Exclusion control has been used to avoid
the creation of stope shapes within adverse rock-mass
* The mining recovery factors used. or processing material zones.
* Any minimum mining widths used. * For this study, physical exclusion constraints
included:
* The manner in which Inferred Mineral Resources are
utilised in mining studies and the sensitivity of the o Depleted resources within stopes and development
outcome to their inclusion. areas
o "Non-recoverable" material located in areas that
cannot be safely mined due to previous mining activities
* The infrastructure requirements of the selected * The final mineable material comprised the Ore
mining methods. Reserves.
* Access to the orebody is via a single entrance portal
that is connected to the workings by a decline
development.
* The mining methods currently employed at Gadir are
overhand stoping in the 'Upper Zone' (above 1442
mRL). Here, the orebody dip is steeper. Below the
1442 mRL, room-and-pillar extraction is used as the
orebody has a shallower dip.
* Access drives were used for both development and
stoping. Pillars of the ore are left in place to
provide support. No backfill procedure is in place;
however, about 20% of the waste rock produced remains
underground and is used to backfill stopes on a
case-by-case basis.
* Geotechnical parameters were determined based on an
independent geotechnical investigation carried out by
CQA International Limited, taking into account
geological structure, rock type and design
orientation constraints.
* It was established that the current mining and ore
extraction methodologies are appropriate for the
geological conditions. The geotechnical constraints
are well understood and assessed ahead of development
(especially with respect to fault zone intersection).
* Lateral development design parameters implemented
during mine planning for this study are summarised
below:
Description Value
Ramp 4.0 x 4.0 m
-------------
Decline 4.0 x 4.0 m
-------------
Crosscut 4.0 x 4.0 m
-------------
Level Ore Drive 4.0 x 4.0 m
-------------
Return Air Raise Square 1.5 x
1.5 m
-------------
* Stope design parameters implemented during mine
planning for this study are summarised below:
Overhand stoping
Parameter Minimum Maximum
-------- --------
Stope Width 3.5 m 10.0 m
-------- --------
Stope Length 5.0 m -
-------- --------
Stope Height 5.0 m -
-------- --------
Pillar Width 4.0 m -
-------- --------
Dip Angle 30deg 90deg
-------- --------
Room-and-pillar
Parameter Minimum Maximum
-------- --------
Stope Width 3.5 m 10.0 m
-------- --------
Stope Length 5.0 m -
-------- --------
Stope Height 5.0 m -
-------- --------
Pillar Width 4.0 m 15.0 m
-------- --------
Dip Angle 40deg 90deg
-------- --------
* The geotechnical modifying factors have been verified
by current underground mining practices.
* Planned stope dilution was considered and designed
into the mining shapes and further interrogated
against the block model.
* Unplanned stope dilution (e.g. due to overbreak) was
assumed to be 10% based on historic production data.
This was applied after block model interrogation to
generate a diluted ore tonnage and grade.
* The mining recovery factor was estimated to be 95%
for both the room-and-pillar and overhand stoping
methods and was based on current reconciliation data.
* A minimum mining width of 3.5 m was used based on the
nature of the deposit and equipment fleet in
operation.
* The Ore Reserves contain approximately 0.08% of
Inferred Resources. This material was captured in
mining shapes therefore has modifying factors
applied. Its inclusion and subsequent impact on
economic viability is negligible.
* Gadir is an established, operating mine and all
infrastructure required to service the demands is
already in place.
------------------------------------------------------------ --------------------------------------------------------------------------
Metallurgical
factors or * The metallurgical process proposed and the * The ore extracted from Gadir is treated at the
assumptions appropriateness of that process to the style of Gedabek processing facilities. The plants process all
mineralisation. ore sourced from the Gedabek Contract Area.
* Whether the metallurgical process is well-tested * The ore from the Gadir underground mine can be
technology or novel in nature. processed by four different available processing
methods within the Gedabek Contract Area. These are
agitation leach ("AGL"), heap leach of crushed
* The nature, amount and representativeness of material ("HLC"), heap leach of run-of-mine material
metallurgical test work undertaken, the nature of the ("HLROM") and flotation ("FLT"). There also will be
metallurgical domaining applied and the corresponding two stockpiles, comprising of Gedabek ore generated
metallurgical recovery factors applied. during the life-of-mine ("LOM"), available for
blending.
* Any assumptions or allowances made for deleterious
elements. * AAM will decide how to process these in due course,
as it depends on the blending criteria, financial
factors and the quality of material from other mines
* The existence of any bulk sample or pilot scale test in the Company's portfolio. These two types of
work and the degree to which such samples are stockpile material are denoted as "SPF" (Cu stockpile
considered representative of the orebody as a whole. for flotation) and "ROMSP" (low-grade Au material
that could be sent to ROM processing by blending with
higher grade material). Copper and precious metal
* For minerals that are defined by a specification, has concentrates are also produced via a SART plant. All
the ore reserve estimation been based on the these processing facilities are currently in
appropriate mineralogy to meet the specifications? operation in the Gedabek Contract Area.
* It should be noted that due to the high-grade nature
and physical properties of the material, Gadir ore is
typically only processed via the AGL method.
Additionally, as Gadir is fresh material (i.e.
unoxidised), it is blended with other softer ores to
assist during crushing.
* The proposed metallurgical processes are well-tested,
being processing facilities for current mining
operations in the Contract Area. The processing
facilities include conventional methods that comprise
comminution, gravity concentration (via Knelson
concentrators), thickening, agitation leaching,
resin-in-pulp extraction, elution and electrowinning
to produce gold doré. For flotation, a
concentrate is produced. The final products will be
shipped off site for refining, in line with current
practices.
* Tails from each process operation will be transferred
via gravity pipeline to the existing tailings
management facility ("TMF"). The TMF has enough
capacity to manage the projected tails from the Gadir
deposit.
* Metallurgical testwork has previously been conducted
on drill and bulk truck samples in the form of bottle
roll and column leach testing. This enabled
amenability of the ore to leaching via AGL and static
HL processes to be assessed.
* As the mine has been operating since 2015,
metallurgical recoveries of the various ore types are
well understood and a geometallurgical classification
system has been developed for Gadir. The amount of
testwork is considered representative of the
processing technology to be employed.
* Deleterious elements were not detected in analytical
tests or during assaying of samples (utilised in the
Mineral Resource) and the Ore Reserves estimation has
been based on the appropriate mineralogy to meet the
specification.
------------------------------------------------------------ --------------------------------------------------------------------------
Environmental
* The status of studies of potential environmental * A previous Environmental and Social Impact Assessment
impacts of the mining and processing operation. ("ESIA") was carried out over the Gedabek Contract
Details of waste rock characterisation and the Area by Amec Foster Wheeler and TexEkoMarkazMMC, both
consideration of potential sites, status of design in 2012 and submitted to the relevant Government
options considered and, where applicable, the status authorities. The Gadir deposit is located within the
of approvals for process residue storage and waste Gedabek Contract Area for which the ESIA is valid.
dumps should be reported. Processing and tailings storage reported in the ESIA
has not changed since its publication and will
continue to be utilised for material as part of this
Ore Reserve update.
* CQA have on-site representation and they have carried
out both the geotechnical and environmental
assessments of the Gadir mine area. Baseline
environmental monitoring is carried out via use of
receptors downstream of the mine site to observe
catchments located in the vicinity of the Gadir mine.
Watercourses downstream of stockpiles will continue
to be monitored on a routine basis for pH and heavy
metal contaminants.
* Stockpile areas for waste rock have previously been
identified following condemnation drilling. Waste
material will continue to be utilised for
infrastructure (road) construction at the Gedabek
Contract Area where required. The waste rock has a
low potential for acid rock drainage due to the
absence of sulphide-bearing mineralisation. In total,
about 20% of the waste rock is back-filled into
stopes underground and is not transported to surface.
* The TMF has the capability, with an addition lift,
for the extra storage requirements for Gadir process
waste. The design and operations of the TMF have been
reviewed by CQA along with a visit by MENR. Regular
environmental monitoring is carried out at the TMF,
along with monitoring of all receptors associated
with the TMF. Independent reviews and third-party
safety inspections of the TMF is routinely carried
out. Tailings water is now returned to the process
site water treatment plant (ultra-filtration and
reverse osmosis) and reused in ore treatment.
* All approvals for conducting mining fall under the
PSA.
------------------------------------------------------------ --------------------------------------------------------------------------
Infrastructure
* The existence of appropriate infrastructure: * Infrastructure is considered excellent for Gadir. The
availability of land for plant development, power, deposit is located within AAM's Gedabek Contract Area
water, transportation (particularly for bulk with extraction rights according to the PSA. Ore can
commodities), labour, accommodation; or the ease with be processed at the Company's current facilities,
which the infrastructure can be provided, or with material being delivered by truck from the mine
accessed. to processing via the constructed haul road system.
* Offices and mechanical workshop buildings are
available. Power for the offices, workshop and
weighbridge will continue to be via grid electrical
power, with diesel generators as backup. Labour is
readily available and planned extraction rates are
consistent with current capacity. G&A and process
labour are part of the existing company compliment of
staff. Regarding accommodation, canteen facilities
and associated services, the continuing exploitation
of the Gadir deposit will be serviced by the current
infrastructure.
------------------------------------------------------------ --------------------------------------------------------------------------
Costs
* The derivation of, or assumptions made, regarding * Project capital costs are minimal given that no
projected capital costs in the study. additional processing facilities or manpower camps
are required. The costs in relation to the facilities
already referenced above are based on actual
* The methodology used to estimate operating costs. quotations, considering capital construction and
local operational experience.
* Allowances made for the content of deleterious
elements. * Operating costs are estimated based on current mining
and processing operations within the Contract Area.
This is applicable as ore processing will be carried
* The derivation of assumptions made of metal or out at the same plants and mining, contractor and
commodity price(s), for the principal minerals and haulage costs are the same as current agreements.
co- products.
* Treatment and refining costs are based on current
* The source of exchange rates used in the study. contracts, as the ore will be treated in the
operating processing plants and refined under the
current agreements (including transport). Penalties
* Derivation of transportation charges. are applicable for deleterious elements in FLT
concentrate; however, studies of the concentrations
of these elements show that the mined material
* The basis for forecasting or source of treatment and contains deleterious elements below these penalty
refining charges, penalties for failure to meet levels.
specification, etc.
* Revenue was based on the USD $ Au price, USD $ Ag
* The allowances made for royalties payable, both price and USD $ Cu price. Commodity pricing was based
Government and private. on forecasts by reputable market analysts. Local
Azeri exchange rates are pegged to the United States
Dollar (USD $). The source of exchange rates used in
the study was the Central Bank of the Republic of
Azerbaijan.
* Prices (USD $) for Au, Ag and Cu used in EPS(R) were:
o Gold: $1250 per troy ounce ($40.19 per gramme)
o Silver: $16.50 per troy ounce ($0.53 per gramme)
o Copper: $6000.00 per tonne
* Royalties have been considered as part of the cost
structure for the company to operate under the PSA.
------------------------------------------------------------ --------------------------------------------------------------------------
Revenue
factors * The derivation of, or assumptions made regarding * Prices (USD $) for Au, Ag and Cu used in EPS(R) were:
revenue factors including head grade, metal or
commodity price(s) exchange rates, transportation and
treatment charges, penalties, net smelter returns, o Gold: $1250 per troy ounce ($40.19 per gramme)
etc. o Silver: $16.50 per troy ounce ($0.53 per gramme)
o Copper: $6000.00 per tonne
* The selling price of each commodity is deduced from
* The derivation of assumptions made of metal or the respective market price to determine the NSR. The
commodity price(s), for the principal metals, values used are specified by the process route and
minerals and co-products. product shown in the table below. Sensitivity
analysis has been used at a range of Au and Ag
prices.
Processes Selling % payable - Net of refining and
transportation
Doré Concentrate
------------------------- -------------------------
Au Ag Cu Au Ag Cu
AGL 99.95% 96.00% 86.60%
HLC 99.95% 96.00% 86.60%
------- ------- -------
HLROM 99.95% 96.00% 86.60%
------- ------- -------
FLT 97.00% 84.00% 83.00%
------------------------- ------- ------- -------
SPF 97.00% 84.00% 83.00%
------- ------- ------- ------- ------- -------
------------------------------------------------------------ --------------------------------------------------------------------------
Market
assessment * The demand, supply and stock situation for the * The market for Au, Ag and Cu is well established. The
particular commodity, consumption trends and factors metal price is fixed externally to the Company
likely to affect supply and demand into the future. however AAM has reviewed a number of metal forecast
documents from reputable analysts and is comfortable
with the market supply and demand situation.
* A customer and competitor analysis along with the
identification of likely market windows for the
product. * A specific study of customer and competitor analysis
has not been completed as part of this project.
* Price and volume forecasts and the basis for these
forecasts. * Price and volume forecasts have been studied in
reports from reputable analysts, based on metal
supply and demand, USD $ forecasts and global
* For industrial minerals the customer specification, economics.
testing and acceptance requirements prior to a supply
contract.
* Industrial minerals do not form part of this study.
------------------------------------------------------------ --------------------------------------------------------------------------
Economic
* The inputs to the economic analysis to produce the * Prices (USD $) for Au, Ag and Cu used in EPS(R) were:
net present value (NPV) in the study, the source and
confidence of these economic inputs including
estimated inflation, discount rate, etc. o Gold: $1250 per troy ounce ($40.19 per gramme)
o Silver: $16.50 per troy ounce ($0.53 per gramme)
o Copper: $6000.00 per tonne
* NPV ranges and sensitivity to variations in the * Processing Recovery parameters for the various
significant assumptions and inputs. processing methods other than AGL have been included
for comparison, in addition to Cu recovery % (all in
italics):
Proceses Recovery %
Au Ag Cu
---- ---- ----
AGL 75% 66% 30%
---- ---- ----
HLC 60% 7% 30%
---- ---- ----
HLROM 40% 7% 20%
---- ---- ----
FLT 60% 68% 83%
---- ---- ----
SPF 60% 68% 83%
---- ---- ----
* Selling costs were described in 'Revenue Factors'
* Sensitivity analysis has been used at a range of Au,
Ag and Cu prices. Variables that have the largest
positive impact on NPV is the Au price. Conversely,
the OPEX cost has a negative impact on project NPV;
when these increase it impacts project economics. AAM
routinely controls its operating costs.
* NPV, NPV ranges and sensitivity will not be detailed
here as the information is commercially sensitive.
* A discount rate of 10.5% was used.
------------------------------------------------------------ --------------------------------------------------------------------------
Social
* The status of agreements with key stakeholders and * To the best of the CP's knowledge, agreements with
matters leading to social licence to operate. key stakeholders and matters leading to social
licence to operate are valid and in place.
------------------------------------------------------------ --------------------------------------------------------------------------
Other
* To the extent relevant, the impact of the following * There are no known material or naturally occurring
on the project and/or on the estimation and risks associated with the Ore Reserves.
classification of the Ore Reserves:
* AAM is currently compliant with all legal, regulatory
* Any identified material naturally occurring risks. and marketing arrangements and agreements.
* The status of material legal agreements and marketing * The Gadir underground project is located within a
arrangements. licence area ("Contract Area") that is governed under
a PSA, managed by the Azerbaijan Ministry of Ecology
and Natural Resources ("MENR").
* The status of governmental agreements and approvals
critical to the viability of the project, such as
mineral tenement status, and government and statutory * The PSA grants AAM a number of 'time periods' to
approvals. There must be reasonable grounds to expect exploit defined Contract Areas, as agreed upon during
that all necessary Government approvals will be the initial signing. The period of time allowed for
received within the timeframes anticipated in the early-stage exploration of the Contract Areas to
Pre-Feasibility or Feasibility study. Highlight and assess prospectivity can be extended if required.
discuss the materiality of any unresolved matter that
is dependent on a third party on which extraction of
the reserve is contingent. * A 'development and production period' that runs for
fifteen years, commences on the date that the Company
holding the PSA issues a notice of discovery, with
two extensions of five years each at the option of
the company. Full management control of mining within
the Contract Areas rests with AIMC. The Gedabek
Contract Area, incorporating the Gadir underground,
Gedabek open pit and Ugur open pit, currently
operates under this title.
* Under the PSA, AAM is not subject to currency
exchange restrictions and all imports and exports are
free of tax or other restrictions. In addition, MENR
is to use its best endeavours to make available all
necessary land, its own facilities and equipment and
to assist with infrastructure.
* At the time of reporting, no known impediments to
obtaining a licence to operate in the area exist.
* The PSA is valid for the forecast LOM.
------------------------------------------------------------ --------------------------------------------------------------------------
Classification
* The basis for the classification of the Ore Reserves * Measured Mineral Resources were converted to Proved
into varying confidence categories. Reserves after applying the modifying factors.
* Whether the result appropriately reflects the * Indicated Mineral Resources were converted to
Competent Person's view of the deposit. Probable Ore Reserves after applying the modifying
factors.
* The proportion of Probable Ore Reserves that have
been derived from Measured Mineral Resources (if * Internal dilution (
any).
* The Ore Reserve is based on a global estimate; the
division of material between Proved and Probable is
72:28 respectively.
* The underground Ore Reserves contain approximately
0.08% of Inferred Mineral Resources. This near-zero
value demonstrates that the Gadir deposit is
understood and well-defined through exploration and
grade control drilling, as well as mining
development.
* The resultant Ore Reserves are appropriate given the
level of understanding of the deposit geology and
reflects the CP's view of the deposit.
* No Probable Ore Reserves were derived from Measured
Mineral Resources.
------------------------------------------------------------ --------------------------------------------------------------------------
Audits or
reviews * The results of any audits or reviews of Ore Reserve * Datamine developed and audited the Mineral Resource
estimates. and Ore Reserve models and estimations. Two Datamine
engineers worked on the resources and reserves and
were able to verify work practice and procedures.
* Datamine consultants have been involved with other
mining projects of the company within the same
contract area as the Gadir underground mine and as
such are familiar with the processing methods
available, value chain of the mining and cost
structure.
* The data used as part of the Mineral Resources
project was audited, validated and considered robust
for Ore Reserves calculations.
* The Gadir Ore Reserve estimate was reviewed by the CP
and was considered to be reasonable and adequately
supported, consistent with industry practice for
reporting Ore Reserves in accordance with the JORC
Code [3].
* Internal company and external reviews of the Ore
Reserves yield estimates that are consistent with the
Ore Reserve results. The amount of waste material
calculated as part of dilution and capital
development totals 80,916 t over the LOM.
------------------------------------------------------------ --------------------------------------------------------------------------
Discussion
of relative * Where appropriate a statement of the relative * The Ore Reserve has been completed to feasibility
accuracy/ accuracy and confidence level in the Ore Reserve standard with the data being generated from a tightly
confidence estimate using an approach or procedure deemed spaced drilling grid, thus confidence in the
appropriate by the Competent Person. For example, the resultant figures is considered high.
application of statistical or geostatistical
procedures to quantify the relative accuracy of the
reserve within stated confidence limits, or, if such * Extraction of ore from the Gadir underground mine
an approach is not deemed appropriate, a qualitative will continue.
discussion of the factors which could affect the
relative accuracy and confidence of the estimate.
* Mining costs and haulage costs will be as per the
current contracts in place being utilised at Gadir
* The statement should specify whether it relates to operation and other mines in the Contract Area.
global or local estimates, and, if local, state the
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation * Project capital is well-managed, and certain
should include assumptions made and the procedures infrastructure facilities are already available
used. within AIMC/AAM, thus minimising capital
requirements.
* Accuracy and confidence discussions should extend to
specific discussions of any applied Modifying Factors * The Modifying Factors for mining, processing,
that may have a material impact on Ore Reserve metallurgical, infrastructure, economic, gold price,
viability, or for which there are remaining areas of legal, environmental, social and governmental factors
uncertainty at the current study stage. as referenced above have been applied to the
underground mine design.
* It is recognised that this may not be possible or
appropriate in all circumstances. These statements of * Ore Reserves calculation relates to a global scale
relative accuracy and confidence of the estimate and data reflects the global assumptions.
should be compared with production data, where
available.
* An appropriate level of consideration was given to
all Modifying Factors, which were established from
actual operation data from Gadir, to support the
declaration and classification of Ore Reserves.
* No statistical or geostatistical procedures were
carried out to quantify the accuracy of the Ore
Reserve. Factors which could affect the relative
accuracy and confidence of the estimate have been
fully assessed as part of the modifying factor
derivation. Geological variability between sample
points, for example very high-grade narrow zones, may
impact on the Reserve statement.
* It Is concluded that the Ore Reserve for the Gadir
underground mine is 797 kt, with a contained Au
content of 90 koz, 304koz of Ag and 1,387 t of Cu
(see Table below). Note that due to rounding, numbers
presented may not add up precisely to totals.
* Zn reserves were not reported as part of the Ore
Reserves summary.
ORE RESERVES Tonnage Gold Silver Copper
------------------- -------------
kt g/t koz g/t koz % t
------------------- -------- ----- ---- ------ ---- ----- ------
Total Proved 222 2.81 25 14.13 101 0.24 535
-------- ----- ---- ------ ---- ----- ------
Total Probable 575 2.41 45 10.99 203 0.15 852
-------- ----- ---- ------ ---- ----- ------
Proved + Probable 797 2.73 70 11.86 304 0.17 1,387
-------- ----- ---- ------ ---- ----- ------
* Mine production data are available and were utilised
in assessing the relative accuracy of the ore types
and grade in the Ore Reserves. The average process
feed grades were understood in order to determine the
process algorithm of the different ore type. Thus,
there is a direct relationship between the known
grades from production data and those of the Ore
Reserve estimate.
------------------------------------------------------------ --------------------------------------------------------------------------
Section 5 Estimation and Reporting of Diamonds and Other Gemstones
(Criteria listed in other relevant sections also apply to this section. Additional guidelines are available in the 'Guidelines for the Reporting of Diamond Exploration Results' issued by the Diamond Exploration Best Practices Committee established by the Canadian Institute of Mining, Metallurgy and Petroleum.)
Estimation and Reporting of Diamonds and Other Gemstones is not applicable to this Statement of Resources
Appendix Two: Glossary of Terms and Abbreviations
The following definitions are extracted from the JORC Code, 2012 Edition
Cut-off grade The lowest grade, or quality, of mineralised
material that qualifies as economically
mineable and available in a given deposit.
May be defined on the basis of economic
evaluation, or on physical or chemical
attributes that define an acceptable product
specification.
Indicated Mineral An 'Indicated Mineral Resource' is that
Resource part of a Mineral Resource for which quantity,
grade (or quality), densities, shape and
physical characteristics are estimated
with sufficient confidence to allow the
application of Modifying Factors in sufficient
detail to support mine planning and evaluation
of the economic viability of the deposit.
Geological evidence is derived from adequately
detailed and reliable exploration, sampling
and testing gathered through appropriate
techniques from locations such as outcrops,
trenches, pits, workings and drill holes,
and is sufficient to assume geological
and grade (or quality) continuity between
points of observation where data and samples
are gathered. An Indicated Mineral Resource
has a lower level of confidence than that
applying to a Measured Mineral Resource
and may only be converted to a Probable
Ore Reserve.
--------------------------------------------------
Inferred Mineral An 'Inferred Mineral Resource' is that
Resource part of a Mineral Resource for which quantity
and grade (or quality) are estimated on
the basis of limited geological evidence
and sampling. Geological evidence is sufficient
to imply but not verify geological and
grade (or quality) continuity. It is based
on exploration, sampling and testing information
gathered through appropriate techniques
from locations such as outcrops, trenches,
pits, workings and drill holes. An Inferred
Mineral Resource has a lower level of confidence
than that applying to an Indicated Mineral
Resource and must not be converted to an
Ore Reserve. It is reasonably expected
that the majority of Inferred Mineral Resources
could be upgraded to Indicated Mineral
Resources with continued exploration.
--------------------------------------------------
JORC JORC stands for Australasian Joint Ore
Reserves Committee (JORC). The Code for
Reporting of Exploration Results, Mineral
Resources and Ore Reserves (the JORC Code)
is widely accepted as the definitive standard
for the reporting of a company's resources
and reserves. The latest JORC Code is the
2012 Edition.
--------------------------------------------------
Measured Mineral A 'Measured Mineral Resource' is that part
Resource of a Mineral Resource for which quantity,
grade (or quality), densities, shape, and
physical characteristics are estimated
with confidence sufficient to allow the
application of Modifying Factors to support
detailed mine planning and final evaluation
of the economic viability of the deposit.
Geological evidence is derived from detailed
and reliable exploration, sampling and
testing gathered through appropriate techniques
from locations such as outcrops, trenches,
pits, workings and drill holes, and is
sufficient to confirm geological and grade
(or quality) continuity between points
of observation where data and samples are
gathered. A Measured Mineral Resource has
a higher level of confidence than that
applying to either an Indicated Mineral
Resource or an Inferred Mineral Resource.
It may be converted to a Proved Ore Reserve
or under certain circumstances to a Probable
Ore Reserve
--------------------------------------------------
Mineral Reserves An 'Ore Reserve' is the economically mineable
or Ore Reserves part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials
and allowances for losses, which may occur
when the material is mined or extracted
and is defined by studies at Pre-Feasibility
or Feasibility level as appropriate that
include application of Modifying Factors.
Such studies demonstrate that, at the time
of reporting, extraction could reasonably
be justified.
--------------------------------------------------
Mineral Resource A 'Mineral Resource' is a concentration
or occurrence of solid material of economic
interest in or on the Earth's crust in
such form, grade (or quality), and quantity
that there are reasonable prospects for
eventual economic extraction. The location,
quantity, grade (or quality), continuity
and other geological characteristics of
a Mineral Resource are known, estimated
or interpreted from specific geological
evidence and knowledge, including sampling.
Mineral Resources are sub-divided, in order
of increasing geological confidence, into
Inferred, Indicated and Measured categories.
--------------------------------------------------
Modifying Factors 'Modifying Factors' are considerations
used to convert Mineral Resources to Ore
Reserves. These include, but are not restricted
to, mining, processing, metallurgical,
infrastructure, economic, marketing, legal,
environmental, social and governmental
factors.
--------------------------------------------------
Probable Ore Reserve A 'Probable Ore Reserve' is the economically
mineable part of an Indicated, and in some
circumstances, a Measured Mineral Resource.
The confidence in the Modifying Factors
applying to a Probable Ore Reserve is lower
than that applying to a Proved Ore Reserve.
--------------------------------------------------
Proved Ore Reserve A 'Proved Ore Reserve' is the economically
mineable part of a Measured Mineral Resource.
A Proved Ore Reserve implies a high degree
of confidence in the Modifying Factors.
--------------------------------------------------
Abbreviation Definition of term
------------- --------------------
Ag Chemical symbol for
silver
--------------------
Au Chemical symbol for
gold
--------------------
Cu Chemical symbol for
copper
--------------------
g/t Gramme per tonne
--------------------
M Meters
--------------------
Oz Ounces
--------------------
t Tonnes
--------------------
Zn Chemical symbol for
zinc
--------------------
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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