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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| China Nonferrous Gold Limited | LSE:CNG | London | Ordinary Share | KYG215771042 | ORD USD0.0001 (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.30 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 68.53M | -287.04M | -0.7507 | -0.02 | 4.97M |
From Apr 2023 to Apr 2024
TIDMCNG
China Nonferrous Gold Limited
("CNG" or the "Company")
Pakrut Gold Mine Independent Technical Report
Mineral Resource Estimate Update
China Nonferrous Gold Limited (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold mine ("Pakrut") in the Republic of Tajikistan, today announces the details of an updated Independent Technical Report ("ITR") completed by SRK Consulting China Limited ("SRK") and releases an update to Mineral Resource and Ore Reserve estimates for Pakrut in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ("JORC Code", 2012 edition as current effective edition),. The update reflects a substantial reduction in the Mineral Resource Estimate released by the Company (under its previous name of Kryso Resources plc) on 17 June 2013, and reflects the Company's increasing knowledge and access to the underground ore body as operational work has progressed.
Summary:
Hot Features
Premium
-- Measured and Indicated Mineral Resources estimate as of 31 December
2022 at the Pakrut Gold Mine, now 6.7 million tonnes with an average
grade of 2.1 g/t gold for about 14,000 kg (equivalent to 440,000 ounces)
of contained gold, at a cut-off grade of 1.0g/t (previously 1.9 million
ounces with an average grade of 3.16g/t reported at a cut-off grade of
0.5g/t, although 172,200 ounces of gold have been extracted since
commencement of mining operations);
-- Inferred Mineral Resource estimate as of 31 December 2022 now 7.8
million tonnes with an average grade of 2.2 g/t gold for about 17,000 kg
(560,000 ounces) contained gold (previously 660,000 ounces at 2.05g/t at
a cut-off grade of 0.5 g/t);
-- Using a gold cut-off of 1.5 g/t, Proved Ore Reserves now estimated to
1.3 million tonnes at 2.0g/t gold for 2,700 kg contained gold (86,000
ounces) and Probable Ore Reserves now estimated about 2.9 million tonnes
of Probable Ore Reserves averaging 1.9 g/t gold for 5,400kg of gold
(180,000 ounces) (previously 1.55million oz gold at 3.1g/t at cut-off
grade of 1.0g/t and 222,258 oz gold at 2.5g/t at cut-off grade of 1.0g/t
for Proved and Probable ore reserves, respectively), although 172,200 oz
of gold have been extracted since commencement of mining operations);
-- Estimated remaining life of mine for the project based on current Ore
Reserve estimates is now 6 years, producing on average 43,000 ounces from
700,000 tonnes of ores per annum until 2029.
-- Forecasted production capacity remains at 2,000 tonnes per day.
Zhang Hui, CNG's Managing Director, commented:
"SRK have produced an updated JORC Code compliant mineral resource estimate and ore reserves estimate. The Company will continue to progress work at site, carry out cost reductions and work to improve efficiencies. In addition, it will look to increase exploration activity at site with a view to extending the life of mine".
Background
The substantial reduction in the Mineral Resource Estimate when compared with SRK's previous mineral resource estimation has been impacted by the following factors:
-- this new Mineral Resource Estimate, is exclusive of all mined-out
materials since the Company commenced operations in 2015, whereas at the
time of the previous resource estimated the materials were in-situ
without depletion (mining at site had not commenced). 172,200 oz of gold
have been extracted to date.
-- a total of five gold mineralization zones ("GMZs") are delineated at
Pakrut. Namely GMZ 1, 3, 5, 6 and 7. The Measured and Indicated Mineral
Resources are situated in GMZ 1 and GMZ 3. Previous resource estimates
have included GMZ 3 (Eastern Pakrut), but operating practices indicate
that the gold grade in this GMZ 3 is less than 1.5g/t and therefore not
currently economic. Accordingly, this Mineral Resource Estimate only
incorporates GMZ 1 (Pakrut) and LLC Pakrut intends to exploit just GMZ 1
in the future.
-- the Cut-off grade of gold has increased from 0.5 g/t used in previous
Mineral Resource Estimates to 1.0 g/t for this Mineral Resource Statement,
reducing the amount of material that is included in the Mineral Resource
Estimate because operational performance shows that mining dilution is
higher than previously estimated.
-- A considerable amount of data from new boreholes and channels has been
added to the database originally used in previous Mineral Resource
Estimates, following actual operational and further exploration
activities, which has increased the awareness and knowledge of the
geometry of the Pakrut Deposit.
-- The Pakrut gold mineralisation is associated with structural alteration
and is of vein type deposit, which can make the geological interpretation
of the ore body more complicated when compared to other deposit types.
This can be particularly challenging for the resource estimation at the
exploration stage (the previous Mineral Resource Estimates were prepared
at an exploration stage). However, the use of underground drilling and
channeling activities during the construction and production stage has
enabled a more comprehensive understanding and interpretation of local
geology of the deposit.
Mineral Resource Statement
SRK's assumptions for the cut-off grade calculation for the Mineral Resource Statement were selected based on experience, benchmarking against similar projects in line with an industry standard commonly used by external experts, as well as a general scoping study of the Pakrut Project and the Company's past operational performance. SRK has applied a gold grade of 1.0 g/t as an appropriate cut-off grade for the Mineral Resource statement for the Pakrut Project. The resource statement is based on a gold price of 1,860 USD/oz. Operating costs of 50 USD/t of ore mined and processing recovery rate of 80% applied to the resource statement are based on historical mine performance.
The Mineral Resource statement is shown in Table 1. The in-situ mineral resources were estimated as of 31 December 2022.
Table 1: Mineral Resource Statement for Pakrut Project, as of 31 December 2022 (Project is owned 100% by Pakrut LLC so the table below includes both gross and net attributable figures)
Cut-off Au Au
(g/t Tonnage Au Grade Content Content
GMZ Category Au) (kt) (g/t) (kg) (koz) Operator
Pakrut
1 Measured 1.0 1,600 2.2 3,500 110 LLC
- Indicated 1.0 3,600 2.2 8,000 260
- Inferred 1.0 5,900 2.4 14,000 450
3 Measured 1.0 490 1.4 680 22
- Indicated 1.0 1,000 1.6 1,600 52
- Inferred 1.0 1,500 1.8 2,600 84
5 Inferred 1.0 24 1.3 31 1
6 Inferred 1.0 320 1.5 460 15
7 Inferred 1.0 100 1.7 180 6
Total Measured 1.0 2,100 2.0 4,200 140
- Indicated 1.0 4,600 2.1 9,600 310
Measured
+
- Indicated 1.0 6,700 2.1 14,000 440
- Inferred 1.0 7,800 2.2 17,000 560
Source: SRK
Notes:
1 Both the tonnage and gold contents are rounded to the second significant digit. Gold grade was rounded to the first digit after the decimal point. The totals may not add due to rounding discrepancies.
2 Numbers of the contained Au metal in this table are estimated based on the resource tonnages and grades, and do not represent the exact amount of extractable metal for this Project. They should be treated differently from the expected production of gold ingot. The conversion between ounce and gram is 1: 31.1035 in this Report.
3 The information in the Report which relates to Mineral Resource is based on information compiled by Mr. Yonggang Wu and Mr. Pengfei Xiao, full time employees of SRK China, and members of the Australasian Institute of Mining and Metallurgy (AusIMM). Both Mr. Yonggang Wu and Mr. Pengfei Xiao have sufficient experiences which are relevant to the style of mineralisation and the type of deposits under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the JORC Code. Mr. Yonggang Wu and Mr. Pengfei Xiao consent to the reporting of this information in the form and context in which it appears.
4 The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources converted to Ore Reserves.
Ore Reserve Estimates
A bankable feasibility study report ("BFS") was prepared by the BGRIMM Technology Group ("BGRIMM") based on the mineral resource estimate validated in 2014. The forecasts from the report suggests that mining recovery and dilution are about 88% and 10% respectively. SRK is satisfied that these values fairly reflect operation performance and apply the same values in this update.
For information, the economically mineable parts of the Measured Mineral Resources, which includes diluting materials and allowances for losses, are classified as Proved Ore Reserves and the economically mineable parts of the Indicated Mineral Resources, which includes diluting materials and allowances for losses, are classified as Probable Ore Reserves.
Cut Off Grade
The Ore Reserves of the Pakrut Project are reported at a gold cut-off grade of 1.5 g/t as of 31 December 2022 using industrial standard and technical assumptions. Whilst these assumptions were true at the time of calculation, they can change over time. The parameters used by SRK to calculate cut-off grade are as follows:
-- The long-term gold price of Consensus Market Forecasts ("CMF") is 1,430
USD/oz in March 2023. The price was adopted by SRK to calculate cut-off
grade ("COG").
-- The proposed recovery rate is 82.99% in the BFS for combined processing
and metallurgical operations to process feed ores with a gold grade of
about 3.1 g/t. The actual recovery rate varied from 80.02% to 81.88% in
last three years to process feed ores with gold grade varied from 2.16
g/t to 2.08 g/t. Considering that the feed grade in future (about 1.9
g/t) is expected to be less than that of BFS and production records, SRK
has adopted a recovery rate of 80% to calculate COG.
-- The Company's operating costs varied between 46.14 USD/t ore and 59.14
USD/t ore in the last three years operating. The ore tonnage weighted
average costs are about 52.60 USD/t ore. SRK adopted the Company's
current actual operating costs ("Opex") of 53 USD/t to calculate COG.
A summary of Ore Reserves is shown in Table 2.
Table 2: Summary of Proved Ore Reserves on Each Level as of 31 December 2022 (Project is owned 100% by Pakrut LLC so the table below includes gross and net attributable figures)
Cut-off Tonnage
GMZ Category (g/t Au) (kt) Au (g/t) Au(kg) Au (koz) Operator
1 Proved 1.5 1,300 2.0 2,700 86 Pakrut LLC
Probable 1.5 2,900 1.9 5,400 180
Total 1.5 4,200 1.9 8,100 260
Sources: SRK
Notes:
1 All figures are rounded to reflect the relative accuracy of the estimate.
2 The mining dilution rate is 10%. The mining recovery rate is 88%.
3 The Ore Reserves are included in the Mineral Resources. They shouldn't be added to the Mineral Resources.
4 The information in the Report which relates to Ore Reserve is based on information compiled by Mr. Yonggang Wu, a full time employee of SRK China and a member of the AusIMM. Mr. Yonggang Wu has sufficient experience which is relevant to the style of mineralisation and the type of deposits under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the JORC Code. Mr. Wu consents to the reporting of this information in the form and context in which it appears.
The ore reserve estimate conducted by SRK was based on the assumptions proposed in the BFS and actual operating status.
At a gold cut-off of 1.5 g/t, the Pakrut Project contains 1,300 kt of Proved Ore Reserves averaging 2.0 g/t gold and 2,900 kt of Probable Ore Reserves averaging 1.9 g/t gold. The ore reserve estimate is also supported by SRK's estimate of a mining and processing production schedule, which is detailed as follows: Table 3: Production Schedule
Item Unit Total 2023 2024 2025 2026 2027 2028 2029 Ore Tonnage kt 4,237 700 700 700 700 700 527 211 Gold grade g/t 1.9 1.9 2.0 1.8 1.8 2.0 2.0 1.7 Gold contained Kg 8,119 1,363 1,381 1,288 1,288 1,384 1,058 356 Recovery rate % 81.90 81.90 81.90 81.90 81.90 81.90 81.90 81.90 Recovered gold kg 6,650 1,116 1,131 1,055 1,055 1,134 867 292
Net Present Value:
NPVs at various discount rates, which are shown in Table 3, provide an indication that it is economically viable for Pakrut Project to report Ore Reserves.
Table 4: NPVs at Various Discount Rates
It should be emphasized that the economic analysis presented in this section is based purely on the results of the technical review provided in previous sections, on the BFS, and on SRK's own study and assumptions, and is provided for ore reserve conversion and project evaluation purposes.
Discount Rate (%) NPV 9 64,020,000 10 62,416,000 11 60,881,000
Sources: SRK
The assumptions behind these NPVs are as follows:
-- The discounted cash flow method (the "DCF") is selected as the
foundation of economic analysis.
-- A 10% discount rate was adopted by SRK to calculate net present values
("NPV").
-- The base date is assumed to be 31 December 2022, and all the
assumptions are subject to conditions obtained at the base date.
-- All the ore mined is assumed to be feed to the processing plant and
gold bullion It's anticipated that the life of mine ("LOM") is about 6.3
years, and that the mine is producing until 2029. The Opex forecasts
which were estimated based on last three years (2020 - 2022) actual Opex,
remain true and correct. Note: depreciation and amortization have been
excluded in the operating coast estimates. Sunken capital costs are based
on the balance sheet date as at 31 December 2022 of US$152m.
-- As there is no significant expansion for the Pakrut project planned,
and underground expenditure and equipment is already taken into account,
the sustaining capital expenditure relates only to mine closure estimated
by SRK to be which is about USD 5,180, 000 (2.5% of total Opex). The
added cost will be expended in year 2029, that is the end of mine life.
While SRK has identified there is a need to consider the residual assets
including plants and smelters, it is assumed that the residual assets are
able to cover the expenditures for mine closure in 2029. Therefore, there
is no additional cost or reclaimed cash balance used for the NPV
calculation. The royalty tax is about 6% of sale revenues. The corporate
income tax is the maximum of 18% of taxable revenues and 1% of sales
revenues. Other taxes are minor.
The NPV is particularly sensitive to gold price, at a gold price of US1,250/oz the NPV is estimated to be US$49,538,000 and at a gold price of US$2,050/oz the NPV is estimated to be US$122,311,000
Note: JORC Table 1, Section 1 (Sampling Techniques and Data), Section 2 (Reporting of Exploration Results), Section 3 (Estimation and Reporting of Mineral Resources) and Section 4 (Estimation and Reporting of Ore Reserves), are attached in Appendix 1 of this Announcement.
Competent Person Statement:
Resource:
1 The information in this Report which relates to Mineral Resource is based on information compiled by Mr. Yonggang Wu and Mr. Pengfei Xiao, full time employees of SRK China, and members of the Australasian Institute of Mining and Metallurgy (AusIMM). Both Mr. Yonggang Wu and Mr. Pengfei Xiao have sufficient experiences which are relevant to the style of mineralisation and the type of deposits under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the JORC Code. Mr. Yonggang Wu and Mr. Pengfei Xiao have reviewed the information contained in this announcement and consent to the reporting of this information in the form and context in which it appears.
Reserve:
2 The information in this Report which relates to Ore Reserve is based on information compiled by Mr. Yonggang Wu, a full-time employee of SRK China and a member of the AusIMM. Mr. Yonggang Wu has sufficient experience which is relevant to the style of mineralization and the type of deposits under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the JORC Code. Mr. Wu has reviewed the information contained in this announcement and consents to the reporting of this information in the form and context in which it appears.
Glossary of abbreviations
Au the chemical symbol of gold
BGRIMM Beijing General Research Institute of Mining and Metallurgy
CNGL(CNG) China Nonferrous Gold Limited, formerly as Kryso Resources
Corporation Limited, which was reformed from Kryso Resource Plc
ITR Independent Technical Review
JORC Code The Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves prepared by the Joint Ore Reserves
Committee of the Australasian Institute of Mining and Metallurgy,
Australian Institute of Geoscientists and Minerals Council of
Australia (JORC), December 2012.
Kt thousand tonnes
Mt million tonnes
Mtpa million tonnes per annum
SRK SRK Consulting China Ltd
Tpa tonnes per annum
Glossary of Technical Terms
Category C1 A mineral resource/reserve category in accordance
with Russian resource/reserve classification
system; the overall level of its geological
control and studies is higher than Category C2 and
lower than Category B
Category C2 A mineral resource/reserve category in accordance
with Russian resource/reserve classification
system; the overall level of its geological
control and studies is higher than Category P1 and
lower than Category C1
Category P1 A mineral resource/reserve category in accordance
with Russian resource/reserve classification
system; the overall level of its geological
control and studies is higher than Category P2 and
lower than Category C2
GMZ gold mineralised zone; GMZs are used for
describing generally the zones and/or bodies with
gold mineral resources defined in the Pakrut
Project and the Eastern Pakrut Project
g/t gram per tonne, equal to part per million
Indicated Mineral Resource That part of a resource for which tonnage,
densities, shape, physical characteristics, grade
and mineral content can be estimated with a
reasonable level of confidence. It is based on
exploration, sampling and testing information
gathered through appropriate techniques from
locations such as outcrops, trenches, pits,
workings and drill holes. The locations are too
widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced
closely enough for continuity to be assumed
Inferred Mineral Resource That part of a resource for which tonnage, grade
and mineral content can be estimated with a low
level of confidence. It is inferred from
geological evidence and assumed but not verified
geological and/or grade continuity. It is based on
information gathered through appropriate
techniques from locations such as outcrops,
trenches, pits, workings, and drill holes which
may be limited or of uncertain quality and
reliability
LOM life of mine, same as ROM
Measured Mineral Resource That part of a resource for which tonnage,
densities, shape, physical characteristics, grade
and mineral content can be estimated with a high
level of confidence. It is based on detailed and
reliable exploration, sampling and testing
information gathered through appropriate
techniques from locations such as outcrops,
trenches, pits, workings and drill holes
Mt million tonnes
Probable Ore Reserve The economically mineable part of an indicated,
and in some circumstances measured, resource. It
includes diluting materials and allowances for
losses which may occur when the material is mined.
Appropriate assessments, which may include
feasibility studies, have been carried out, and
include consideration of and modification by
realistically assumed mining, metallurgical,
economic, marketing, legal, environmental, social
and government factors. These assessments
demonstrate at the time of reporting that
extraction could reasonably be justified.
Proved Ore Reserve The economically mineable part of a measured
resource. It includes diluting materials and
allowances for losses which may occur when the
material is mined. Appropriate assessments, which
may include feasibility studies, have been carried
out, and include consideration of and modification
by realistically assumed mining, metallurgical,
economic, marketing, legal, environmental, social
and government factors. These assessments
demonstrate at the time of reporting that
extraction could reasonably be justified.
QA/QC quality assurance/quality control
For further information please visit the Company's website (www.cnfgold.com) or contact:
China Nonferrous Gold Limited
Zhang Hui, Managing Director
Tel: +86 10 8442 6627
WH Ireland Limited (NOMAD & Broker)
Katy Mitchell, Andrew de Andrade
Tel: +44 (0)207 220 1666
BlytheRay (PR)
Tim Blythe, Megan Ray
Tel: +44 (0)20 7138 3224
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014
Appendix 1 JORC Code, 2012 Edition - Table 1 (Pakrut Project)
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary - Assessment
of the Pakrut Project
Sampling techniques Nature and quality of Splitting drill cores
sampling (e.g. cut and sampling of reverse
channels, random chips, circulation ("RC") drill
or specific specialised chips have been applied
industry standard to the Pakrut Project.
measurement tools Channel sampling of
appropriate to the trenches and underground
minerals under crosscuts were also
investigation, such as applied and addressed in
down hole gamma sondes, this Report. The channel
or handheld XRF sampling of all types of
instruments, etc). These trenches (shallow and
examples should not be deep) were conducted
taken as limiting the along one side at the
broad meaning of contact with the floor.
sampling. All channel samples were
collected manually
and/or using mechanical
devices such as
pneumatic hammers and
diamond saws. Specific
gravity samples were
taken from oxidised
outcrops and fresh zones
(drill cores). The data
used for Mineral
Resource estimation was
derived from drill holes
(including RC drillholes
and diamond drillholes),
trenches and underground
channels. There were
sufficient underground
channels and drill holes
that had been sampled at
the Pakrut Project for
confident Mineral
Resource estimates and
resource classification
(Measured and Indicated
categories at the Pakrut
Project). The drill core
samples taken by LLC
Pakrut (since 2004) at
the Pakrut Project were
about 1.5 m long and a
few of them vary from
0.5 m up to 2 m. The
average length of
samples previously taken
by former Soviet Union's
exploration team (prior
to 2004) was about 1 m
length. The RC chips
were sampled with an
interval of every 1 m.
Sample representativity
was guaranteed by
drilling and
trenching/underground
channelling conducted in
an exploration grid of
40 m by 40 m at Pakrut
Project. On the surface,
the Pakrut deposit was
investigated with
trenches of different
lengths and depths
excavated across the
orientation of
mineralisation zones and
spaced in a 20 - 40 m
grid. Underground, five
adits were accompanied
with drifts and
crosscuts were driven
along the strikes of
mineralised zones to
trace the continuity and
changeability of the
gold mineralisation with
continuous channel
sampling.
Include reference to
measures taken to ensure
sample representativity
and the appropriate
calibration of any
measurement tools or
systems used.
Aspects of the
determination of
mineralisation that are
Material to the Public
Report.
In cases where 'industry
standard' work has been
done this would be
relatively simple (e.g.
reverse circulation
drilling was used to
obtain 1 m samples from
which 3 kg was pulverised
to produce a 30 g charge
for fire assay'). In
other cases more
explanation may be
required, such as where
there is coarse gold that
has inherent sampling
problems. Unusual
commodities or
mineralisation types
(e.g. submarine nodules)
may warrant disclosure of
detailed information.
Drilling techniques Drill type (e.g. core, Core diameters were
reverse circulation, HQ-size (63.5 mm) or
open-hole hammer, rotary NQ-size (47.6 mm). The
air blast, auger, Bangka, drilling started from
sonic, etc) and details HQ-size diameter on
(e.g. core diameter, surface and changed to
triple or standard tube, NQ-size at a depth of
depth of diamond tails, about 100 m. Most
face-sampling bit or underground drill holes
other type, whether core were completed with
is oriented and if so, by NQ-size diameter. The
what method, etc). split of drill cores was
determined by core
diameters. The HQ sized
cores were split into
two halves and one half
was sampled. No
splitting was applied to
cores of NQ size and all
of the sampled material
was crushed. Drilling
core samples and channel
samples were collected
from all hydrothermally
altered sections. From
2005 to the present the
samples were taken from
the entire length of the
boreholes. The length of
the samples varies from
0.4 m - 3.0 m and
depends on the
variability of
mineralisation and rock
features. In the case of
large thickness of
altered rocks the
samples were taken at
equal intervals of 1 m
or 1.5 m, and rarely 2.0
m. RC drilling was
conducted using standard
RC rigs and samples were
taken every 1 m
interval.
Drill sample recovery Method of recording and The average core
assessing core and chip recovery was about 82%
sample recoveries and for the Pakrut Project
results assessed. (LLC Pakrut's core
samples). The core loss
was predominately due to
local
structures/fractures and
surface soil/overburden.
The average recovery of
mineralised intervals
was about 90%. The gold
mineralisation is
related to
hydrothermally altered
zones and drill core
samples and channel
samples were collected
from all hydrothermally
altered sections. From
2005 to the present the
samples were taken from
the entire length of the
boreholes. Swiss
(ONRAM-1000) and
American (LY-38)
drilling rigs and
Chinese rigs of type
CSD1800A have been
employed in the drilling
programme of the Pakrut
Project.
Measures taken to
maximise sample recovery
and ensure representative
nature of the samples.
Whether a relationship
exists between sample
recovery and grade and
whether sample bias may
have occurred due to
preferential loss/gain of
fine/coarse material.
Logging Whether core and chip The cores have been
samples have been geologically (lithology,
geologically and structure, alteration,
geotechnically logged to mineralisation,
a level of detail to geotechnical features
support appropriate logged to a level of
Mineral Resource detail to support
estimation, mining appropriate geological
studies and metallurgical interpretation and
studies. Mineral Resource
estimation. Underground
tunnels developed prior
to 2004 have been
studied and re-logged by
LLC Pakrut with a
systematic channel
sampling programme. All
cores have been logged
and the logs were
recorded in a format of
standard logging sheet
and then typed to
electronic copies of the
logging sheet and were
incorporated into
database. Photographs of
drill cores were taken
during logging. In the
earlier days when the
digital camera was not
wildly used the drill
cores had not been
photographed and instead
of this histogram with
logs of drillhole was
completed. All cores and
channels including
trenches used in
resource estimation were
logged or re-logged by
LLC Pakrut.
Whether logging is
qualitative or
quantitative in nature.
Core (or costean,
channel, etc)
photography.
The total length and
percentage of the
relevant intersections
logged.
Sub-sampling techniques If core, whether cut or Drill cores were sampled
and sample preparation sawn and whether quarter, by split cuts and core
half or all core taken. samples were taken a
half of core. RC
drilling chips were
collected every 1 m
interval. Both core and
RC chips were sampled in
the logging and sampling
yard by field geologists
from LLC Pakrut and/or
former Soviet/Tajikistan
geological team, after
logging and
photographing. Drilling
and sampling were
supervised by LLC Pakrut
geologists and the
initial sample
preparation was done in
LLC Pakrut laboratory
located in Dushanbe
(prior to 2004, sample
preparation was done by
geological team
supervised by Tajikistan
governmental geological
department). Drill cores
were stowed in wooden
boxes with proper
markers after being
taken from drilling
pipes, then were logged
and recorded with
standard sheets at
Pakrut camp before being
transported to LLC
Pakrut's laboratory in
Dushanbe. From 1975
to1981, preparation of
all types of samples was
carried out firstly by
crushing the rocks down
to 1 mm in the
preparation laboratory
of the South Tajik
Geological Exploration
Expedition by mechanical
grinding according to
the Richards-Chechetta
formula Q = kd(2) . In
this formula, Q = sample
mass, d = maximum
diameter of the
particles in the sample,
in mm; and k =
coefficient of uneven
distribution of gold in
the ore. Pulverizing the
ore down to 0.75 mm
(-200 mesh) was carried
out by the Central
Laboratory of Unified
Enterprise of the Tajik
SSR. From 2004 to the
present, sample
preparation has been
carried out at LLC
Pakrut's laboratory in
Dushanbe using two steps
of jaw crushing and
vibrating pulverisers.
The required -200 mesh
sample is obtained by
selective splitting and
sieving. Sample
preparation methodology
is subject to continuous
quality control
monitoring. Original
core samples and channel
samples were at a range
of 3 kg - 10 kg
depending on the
recovery of cores and
sample length. Core and
chip samples were
further split into
coarse samples after
crushing. Samples were
further pulverised to
fine pulps and about 200
grams were taken and
packed for chemical
assaying. Sample sizes
were appropriate to the
grain size of the
material being sampled.
If non-core, whether
riffled, tube sampled,
rotary split, etc and
whether sampled wet or
dry.
For all sample types, the
nature, quality and
appropriateness of the
sample preparation
technique.
Quality control
procedures adopted for
all sub-sampling stages
to maximise
representativity of
samples.
Measures taken to ensure
that the sampling is
representative of the in
situ material collected,
including for instance
results for field
duplicate/second-half
sampling.
Whether sample sizes are
appropriate to the grain
size of the material
being sampled.
Quality of assay data and The nature, quality and From 1975 to 1981 all
laboratory tests appropriateness of the primary analyses were
assaying and laboratory conducted at the Central
procedures used and Laboratory of Unified
whether the technique is Enterprise of the Tajik
considered partial or SSR ("CLUETS").
total. Semi-quantitative
spectral analysis was
used to determine the
grades of 13 components:
gold, silver, arsenic,
tin, tungsten,
molybdenum, copper,
lead, zinc, antimony,
mercury, tellurium, and
bismuth, including a
full spectral analysis
for gold and silver,
together with
traditional chemical
analysis for gold. At
the same time a series
of analyses were carried
out to determine the
samples' bulk density,
moisture,
carbonate-silica ratio
and other
characteristics. During
the second stage of
exploration (2005 -
2010) the primary
analyses for gold,
silver, and arsenic of
channel and core samples
were performed by the
LLC Pakrut laboratory in
Dushanbe using
aqua-regia digestion and
atomic absorption
spectrometry. The
samples which returned
grades greater than 0.15
g/t were reanalysed
using fire assays by the
SGS Laboratory in South
Africa and by the
Central Governmental
Laboratory of the
Republic of Tajikistan.
During these periods a
total of 26,358 samples
were analysed using AAS
and 7,243 by fire assay.
These samples were taken
from Pakrut Project.
Since 2011, samples with
gold grades >=0.5 g/t as
determined by LLC Pakrut
laboratory have been
reanalysed at the
Intertek Laboratory in
Beijing by fire assays.
For quality assurance
purposes, internal and
external laboratory
testing for gold and
arsenic was performed in
the process of
conducting analytical
work in 2009 and 2010.
For internal control
purposes, a portion of
encrypted sample
duplicates (taken from
the other half of the
primary sample) were
included in the stream
of primary samples and
analysed using the same
methodology.
Additionally, two
industrial standards
were inserted in every
batch of 20 to 25
samples. The standards
were purchased from
international sources
and vary in grade from
0.26 g/t to 13.64 g/t.
The results were
analysed and reported by
quality control
personnel. External
quality control tests
were carried out by
re-analysing duplicate
samples in the Central
Governmental Laboratory
of the Republic of
Tajikistan. Generally
the samples for external
control were submitted
quarterly, but during
periods of low sampling
activity they were
submitted every six
months or even annually.
The internal and
external control results
were both compared with
the primary assays; if
the discrepancy exceeded
that permitted by
regulation all results
from that batch were
rejected and the samples
assayed again. All core
and channel samples were
first analysed for gold
(and sometimes but not
always for silver and
arsenic) by a modified
aqua regia method and
gold content was
determined by AAS.
Samples returning gold
values were subsequently
sent to the Intertek
Laboratory ("Intertek")
in Beijing, China, a
branch of an
internationally
recognized
establishment, where the
gold concentration was
determined by fire
assay. It should be
noted that in the
drilling program from
2004 - 2010, all
mineralised samples were
sent to the SGS
Laboratory ("SGS") in
South Africa for fire
assays. LLC Pakrut's
QA/QC protocols for
sample assaying include
the insertion of
commercial standards
into each sample run
prior to submission to
the laboratories, along
with pulp duplicate
samples taken after
pulverisation of the
samples. These QA/QC
samples are inserted at
a rate of approximately
1 in 20 to 25 samples. A
total of 2,906
commercial standard
samples in 15 types with
certified mean and
standard deviation
values of gold grades
have been adopted by LLC
Pakrut in routine sample
batches to monitor the
laboratory's analytical
accuracy through its
internal laboratory and
Intertek. The standards
range in grade from 0.25
g/t gold up to 13.65
g/t. One type of
standard blank sample,
GLG304-3, was submitted
to the LLC Pakrut
laboratory to monitor
for any significant
contamination during the
assaying process. This
standard blank sample
has an expected gold
grade of 2.0 to 2.7
parts per billion
("PPB"), far below the
lower detection limit of
normal fire assay and/or
aqua regia methods. Pulp
duplicates were sent to
Intertek and/or SGS to
assess the assays' level
precision. A total of
3,396 duplicate samples
were inserted in the
routine samples at a
frequency beyond 1:20.
All samples identified
by LLC Pakrut as
containing gold values
could be used for
comparisons between LLC
Pakrut's gold grades
using the aqua regia
digestion method and
Intertek's or SGS's
results using fire
assays. The results show
that overall there is no
significant difference
between the laboratories
in the mineralised grade
ranges and the
mineralised intervals
derived from the two
laboratories' results
are similar. Larger
differences occurred in
a few samples. For the
pulp duplicates, the
variability between
duplicate assays is
caused primarily by the
pulp sub-sampling
methodology, digestion
(in this case using aqua
regia) and the final
analysis. Additionally,
SGS and Intertek each
have their own
laboratory QA/QC
protocols for sample
assaying, including the
insertion of standards,
duplicates and blanks.
The final database of
sample analyses
contained only the fire
assay results returned
from SGS and/or
Intertek.
For geophysical tools,
spectrometers, handheld
XRF instruments, etc, the
parameters used in
determining the analysis
including instrument make
and model, reading times,
calibrations factors
applied and their
derivation, etc.
Nature of quality control
procedures adopted (e.g.
standards, blanks,
duplicates, external
laboratory checks) and
whether acceptable levels
of accuracy (i.e. lack of
bias) and precision have
been established.
Verification of sampling The verification of Besides verification of
and assaying significant intersections data provided by LLC
by either independent or Pakrut, an independent
alternative company sampling verification
personnel. programme is detailed in
Section 11 of this
Report. No twin holes
had been used. SRK as
SRK had
observed/inspected the
on-going drilling
programme including
sampling and sample
preparation in 2011 and
2012. All prepared
samples were dispatched
to Intertek for
analytical process and
SRK selected duplicate
pulps for verification.
The competent person
opined there was no need
to drill any twin holes
for this project to
achieve a Mineral
Resource estimate.
Exploration data was
properly documented and
presented. CNG was
listed on London AIM
therefore material
exploration
data/progress of the
Pakrut Project was
released publicly from
time to time, and there
was competent person to
endorse the exploration
data prepared as it
presented. Sample assay
results were obtained
from accredited
laboratories such as SGS
and Intertek. By
considering the
reputation and internal
QC protocols of such
laboratories, as well as
external checks and
verifications, there was
no adjustment needed to
be performed to assay
data.
The use of twinned holes.
Documentation of primary
data, data entry
procedures, data
verification, data
storage (physical and
electronic) protocols.
Discuss any adjustment to
assay data.
Location of data points Accuracy and quality of Before drilling, survey
surveys used to locate was performed to ensure
drill holes (collar and the rig installation was
down-hole surveys), placed on a correct and
trenches, mine workings accurate location as
and other locations used designed. After the
in Mineral Resource drilling was completed,
estimation. a repeated survey was
performed to check the
location of drill holes.
Drill holes were sealed
with cement and marked
with borehole name,
depth and date. Downhole
survey had been
performed every 50 m
footage using
anti-magnetic downhole
compass. The drilling
and downhole survey was
logged by drillers with
standardised logging
sheet. LLC Pakrut
geologists checked the
logs and drill cores
regularly to ensure the
drilling programs were
performed in line with a
designed standard. The
sample data was prepared
in a local UTM grid
system that was adopted
by Tajikistan
governmental geological
department. This was not
only to ensure the
accuracy of the survey
of local mining area,
but also to be compliant
to local country
surveying and licensing
requirement.
Specification of the grid
system used.
Quality and adequacy of
topographic control.
Data spacing and Data spacing for Sampling was conducted
distribution reporting of Exploration with a basic length of 1
Results. m or 1.5 m as detailed
in this Report context.
Samples were
continuously taken to
cover all drill cores
and mineralised sections
(trench and underground
channels). In Pakrut
Project, sampling has
been conducted in a
relatively dense grid as
shown in Figure 9--1 in
this Report. More than
500 drillholes were
completed in Pakrut area
with a total footage
over 79,000 m, in
addition to considerable
amount of trenching and
underground channelling
samples. The data
spacing varied from 10 m
to 100 m and generally
within a grade of 10 m -
40 by 40 m at Pakrut
deposit area, which is
sufficient to support a
reasonable Mineral
Resource estimate.
Whether the data spacing
and distribution is
sufficient to establish
the degree of geological
and grade continuity
appropriate for the
Mineral Resource and Ore
Reserve estimation
procedure(s) and
classifications applied.
Whether sample
compositing has been
applied.
Orientation of data in Whether the orientation Where possible the drill
relation to geological of sampling achieves holes were designed and
structure unbiased sampling of completed spacing in
possible structures and exploration lines
the extent to which this perpendicular to the
is known, considering the overall strike azimuth
deposit type. of gold veins. Holes
have been drilled at
varying dip angle from
-55deg - -90deg
depending on terrain and
to achieve the best
angle to intercept the
mineralisation at near
perpendicular, by
considering the
realistic drilling
techniques. There was no
sample bias related to
the angle of drilling.
The dip angle and
azimuth were used in a
3D modelling to reflect
actual sampling location
and orientation. Channel
samples taken from
trenches and underground
crosscuts were generally
designed and completed
perpendicular to the
vein strike
orientation.
If the relationship
between the drilling
orientation and the
orientation of key
mineralised structures is
considered to have
introduced a sampling
bias, this should be
assessed and reported if
material.
Sample security The measures taken to The sample security
ensure sample security. prior to LLC Pakrut's
management of this
project is unknown.
Previous sample rejects
and duplicates are not
available. Those samples
were not used for
resource estimation. LLC
Parkut's samples were
taken and secured by
CNG. Cores and channel
chips were packed and
transported to the
laboratory located in
Dushanbe with CNG's own
vehicles and secured by
Company staff. In the
laboratory located in
Dushanbe, the samples
were secured by CNG
security staff, and all
remained drill cores,
coarse rejects and pulps
were secured at a
warehouse near LLC
Pakrut office building
in Dushanbe. Pulp
samples for SGS or
Intertek chemical
assaying were
transported by
international commercial
courier.
Audits or reviews The results of any audits Site visits and sampling
or reviews of sampling verification had been
techniques and data. performed by SRK
geologists. Exploration,
sampling techniques,
QA/QC protocols and data
collection had been
reviewed during the time
to ensure correct
procedures and protocols
were followed and that
the data collected was
reliable and accurate
for Mineral Resource
estimation and reporting
to the JORC Code (best
practice). Snowden
Consultants, an
independent consultancy
had been engaged by CNG
to review the Mineral
Resource estimation and
resource estimates were
conducted by Snowden in
2012. Considering some
updates of in-fill
drillings, there were no
material discrepancies
between the resource
results estimated by SRK
and Snowden.
Section 2 Reporting of Exploration Results
Criteria JORC Code explanation Commentary - Assessment
of the Pakrut Project
Mineral tenement and land Type, reference Tenure information and
tenure status name/number, location project location are
and ownership including detailed in Section 3 of
agreements or material this report.
issues with third
parties such as joint
ventures, partnerships,
overriding royalties,
native title interests,
historical sites,
wilderness or national
park and environmental
settings.
The security of the
tenure held at the time
of reporting along with
any known impediments to
obtaining a licence to
operate in the area.
Exploration done by other Acknowledgment and Previous exploration were
parties appraisal of exploration summarised in relevant
by other parties. reports as a conclusion
of each stage. Where
possible SRK reviewed the
exploration data derived
from the previous
exploration and made
independent sampling
verification. LLC Pakrut
have conducted the
exploration since 2004
and the progress/results
have been disclosed in
several public release on
AIM market and in several
resource estimates
conducted by Snowden, SRK
as well as GeoLogix
Mineral Resource
Consultants. Mineral
Resource estimates in
compliance with the JORC
Code for the Pakrut
Project were initially
done by Snowden in 2007.
Geology Deposit type, geological Detailed in Section 5 and
setting and style of 6 of this Report.
mineralisation.
Drill hole Information A summary of all Drilling information is
information material to summarised in Section 7
the understanding of the of this Report and a
exploration results summary of database used
including a tabulation for Mineral Resource
of the following estimates is presented in
information for all Section 12. More detailed
Material drill holes: individual exploration
drillhole sample results
and downhole intercepts
are available on
request.
easting and northing of
the drill hole collar
elevation or RL (Reduced
Level - elevation above
sea level in metres) of
the drill hole collar
dip and azimuth of the
hole
down hole length and
interception depth
hole length.
If the exclusion of this
information is justified
on the basis that the
information is not
Material and this
exclusion does not
detract from the
understanding of the
report, the Competent
Person should clearly
explain why this is the
case.
Data aggregation methods --In reporting The sample data derived
Exploration Results, from drilling was
weighting averaging compiled in an integrated
techniques, maximum database with information
and/or minimum grade of collar, downhole
truncations (e.g. survey and sample assay.
cutting of high grades) Evaluation of outliers
and cut-off grades are was performed according
usually Material and to the basic analysis of
should be stated. composite samples. Grade
capping was applied for
eliminating extreme high
grade outliers at each
mineralised vein. No
metal-equivalence
approaches were applied
in the Pakrut Project
Where aggregate
intercepts incorporate
short lengths of high
grade results and longer
lengths of low grade
results, the procedure
used for such
aggregation should be
stated and some typical
examples of such
aggregations should be
shown in detail.
The assumptions used for
any reporting of metal
equivalent values should
be clearly stated.
Relationship between These relationships are The mineralised bodies
mineralisation widths and particularly important were modelled according
intercept lengths in the reporting of to the sample
Exploration Results. interceptions and
mineralisation widths
were reported as "true
thickness" according to
the modelled bodies. The
geometry of the
mineralisation with
respect to the drillhole
angle was known.
If the geometry of the
mineralisation with
respect to the drill
hole angle is known, its
nature should be
reported.
If it is not known and
only the down hole
lengths are reported,
there should be a clear
statement to this effect
(e.g. 'down hole length,
true width not known').
Diagrams Appropriate maps and Geological map and
sections (with scales) sections with drillholes
and tabulations of are shown in relevant
intercepts should be figures in Section 5.
included for any
significant discovery
being reported These
should include, but not
be limited to a plan
view of drill hole
collar locations and
appropriate sectional
views.
Balanced reporting Where comprehensive It is considered the
reporting of all Exploration Results for
Exploration Results is Pakrut Project have been
not practicable, reported in a format of
representative reporting summarised information
of both low and high with balanced reporting
grades and/or widths protocol, such as
should be practiced weighted/estimated
avoiding misleading average grade, estimated
reporting of Exploration tonnage constrained to
Results. wireframes, volume
range.
Other substantive Other exploration data, SRK is not aware of any
exploration data if meaningful and other material or
material, should be substantive exploration
reported including (but data that has not been
not limited to): reported.
geological observations;
geophysical survey
results; geochemical
survey results; bulk
samples - size and
method of treatment;
metallurgical test
results; bulk density,
groundwater,
geotechnical and rock
characteristics;
potential deleterious or
contaminating
substances.
Further work The nature and scale of Exploration potential has
planned further work been discussed in this
(e.g. tests for lateral Report. CNG reviews its
extensions or depth exploration plan from
extensions or time to time. SRK is
large-scale step-out aware CNG is making a
drilling). detailed exploration plan
for further work which
could be disclosed
later.
Diagrams clearly
highlighting the areas
of possible extensions,
including the main
geological
interpretations and
future drilling areas,
provided this
information is not
commercially sensitive.
Section 3 Estimation and Reporting of Mineral Resources
Criteria JORC Code explanation Commentary - Assessment
of the Pakrut Project
Database integrity Measures taken to ensure The original exploration
that data has not been data was provided by LLC
corrupted by, for Pakrut Diamond drilling,
example, transcription reverse circulation
or keying errors, drilling, trenching and
between its initial underground channelling
collection and its use sample data were
for Mineral Resource integrated and compiled
estimation purposes. for Mineral Resource
estimation. Prior to
using the data for
Mineral Resource
estimation, SRK performed
due cross check of the
digital data and
constructed the database.
An independent sampling
verification programme
was performed in 2011,
and continued in 2012 and
2014. SRK is satisfied
with performance of
duplicate sample checks.
Data validation
procedures used.
Site visits Comment on any site SRK Competent Persons
visits undertaken by the visited the projects in
Competent Person and the 2011, 2012 and 2013. Data
outcome of those verification was
visits. performed by SRK field
geologists were approved
and closely supervised by
SRK team leader
(Competent Person) Dr
Anshun Xu FAusIMM
(Director, Principal
Geologist).
If no site visits have
been undertaken indicate
why this is the case.
Geological interpretation Confidence in (or The geological
conversely, the interpretation was based
uncertainty of ) the on lithological, assay,
geological and structure and
interpretation of the geotechnical information.
mineral deposit. Drilling interceptions
provided general
confidence of the
interpretation of gold
mineralised veins. Ground
geochemistry, geological
mapping, lithological and
geotechnical logging and
channel (trenching)
sample assays provided
additional confidence of
the mineralisation and
the interpretation of
mineralised veins at the
surface. Geological
continuity has been
assessed by reference of
cross sections
interpreted by chief and
senior geologists form
LLC Pakrut and SRK. SRK's
interpretation of
mineralised veins/bodies
was produced as a 3D
wireframe model, which
was supported by a
similar interpretation
from CNG.
Nature of the data used
and of any assumptions
made.
The effect, if any, of
alternative
interpretations on
Mineral Resource
estimation.
The use of geology in
guiding and controlling
Mineral Resource
estimation.
The factors affecting
continuity both of grade
and geology.
Dimensions The extent and Wireframe and block
variability of the dimensions are discussed
Mineral Resource in Section 12. The
expressed as length wireframes are used to
(along strike or constrain the block
otherwise), plan width, estimation.
and depth below surface
to the upper and lower
limits of the Mineral
Resource.
Estimation and modelling The nature and The Mineral Resource
techniques appropriateness of the estimation presented in
estimation technique(s) SRK's report was
applied and key completed using MineSight
assumptions, including and Surpac software.
treatment of extreme Prior to modelling and
grade values, domaining, estimation, the database
interpolation parameters was verified by SRK and
and maximum distance of both geological
extrapolation from data interpretations
points. If a computer (including the
assisted estimation interpretations disclosed
method was chosen previously) made by SRK
include a description of and CNG have been
computer software and reviewed. Wireframes of
parameters used. The mineralised zones were
availability of check modelled according to the
estimates, previous interpretation made based
estimates and/or mine on lithological, assay,
production records and and structure and
whether the Mineral geotechnical information.
Resource estimate takes Resource domains
appropriate account of (wireframe of
such data. mineralisation) in the
Pakrut Project were
modelled using a cut-off
grade of 0.5 g/t Au.
Sample assays were
composited to uniform 1 m
length in the mineralised
domains (wireframe of
mineralised zones)
according to statistics
of sample assays.
Outliers of extreme high
grades were assessed
according to basic
statistics of the
composite assays and
grade capping has been
applied to the assays in
each mineralised
zone/vein. Geostatistical
analysis has been
performed and variography
was modelled with nugget
effect and spherical
structure(s). Kriging
method with its
variations such as
Multiple Indicator
Kriging has been employed
for the grade estimation
where possible, and an
inverse distance weighted
("IDW") method was
applied to the
mineralised zones
accordingly, where the
ordinary kriging was not
applicable. Detailed
parameters for grade
estimation are described
in this report. Visual
validation of block
grades against drillhole
grades; and global
statistical validation of
the mean composite grades
versus block estimates
have been applied. SRK is
satisfied that the
estimation was performed
generally honoured to the
drilling data.
The assumptions made
regarding recovery of
by-products.
Estimation of
deleterious elements or
other non-grade
variables of economic
significance (e.g.
sulphur for acid mine
drainage
characterisation).
In the case of block
model interpolation, the
block size in relation
to the average sample
spacing and the search
employed.
Any assumptions behind
modelling of selective
mining units.
Any assumptions about
correlation between
variables.
Description of how the
geological
interpretation was used
to control the resource
estimates.
Discussion of basis for
using or not using grade
cutting or capping.
The process of
validation, the checking
process used, the
comparison of model data
to drill hole data, and
use of reconciliation
data if available.
Moisture Whether the tonnages are Specific gravity analysis
estimated on a dry basis and grade assaying were
or with natural conducted on a dry basis;
moisture, and the method therefore the tonnages
of determination of the were estimated on a dry
moisture content. basis. Moisture factor
has not been considered
into Mineral Resource
estimation.
Cut-off parameters The basis of the adopted A cut-off grade of 0.75
cut-off grade(s) or g/t Au has been applied
quality parameters for the resource
applied. estimation with
assumptions as below.
Gold price: 1,250 United
States dollars (USD) per
ounce, A combined direct
cash cost for mining and
processing (excluding
Administrative and
General Costs) at
approximately USD 30 per
tonne ore feed. The
parameters assumed by SRK
are used to test for
"reasonable prospects for
eventual economic
extraction". This is
showing marginal economic
potential of the Pakrut
Project's resource. In
SRK's opinion a cut-off
grade of 0.75 g/t Au is
suitable for the Mineral
Resource reporting for
the CNG Gold Project.
Mining factors or Assumptions made An underground mining
assumptions regarding possible with cut and fill method
mining methods, minimum was considered for the
mining dimensions and Pakrut Project, as
internal (or, if designed by the FS. They
applicable, external) are detailed in Section
mining dilution. It is 14. The direct mining
always necessary as part cost is estimated at
of the process of approximately USD 20 -
determining reasonable USD 22 per tonne ore
prospects for eventual mined, including the
economic extraction to costs of the
consider potential administrative and
mining methods, but the general costs of the
assumptions made mine.
regarding mining methods
and parameters when
estimating Mineral
Resources may not always
be rigorous. Where this
is the case, this should
be reported with an
explanation of the basis
of the mining
assumptions made.
Metallurgical factors or The basis for The FS competed by BGRIMM
assumptions assumptions or has designed the
predictions regarding metallurgical flowsheet
metallurgical and is detailed in
amenability. It is Section 15. A combined
always necessary as part processing and
of the process of metallurgical cost at
determining reasonable approximately USD 12 -
prospects for eventual USD 15 per tonne of ore
economic extraction to feed was assumed
consider potential (including the costs of
metallurgical methods, the administrative and
but the assumptions general costs of the
regarding metallurgical plants) when considering
treatment processes and the mine economics for
parameters made when determining the resource
reporting Mineral cut-off grade.
Resources may not always
be rigorous. Where this
is the case, this should
be reported with an
explanation of the basis
of the metallurgical
assumptions made.
Environmental factors or Assumptions made Environment costs were
assumptions regarding possible waste considered in the costs
and process residue of mining, processing and
disposal options. It is general & administrative
always necessary as part costs. No other
of the process of substantial environmental
determining reasonable risks were identified or
prospects for eventual assumed during the
economic extraction to Mineral Resource
consider the potential estimation. Environmental
environmental impacts of factors and assumptions
the mining and are disclosed in Section
processing operation. 18.
While at this stage the
determination of
potential environmental
impacts, particularly
for a greenfield
project, may not always
be well advanced, the
status of early
consideration of these
potential environmental
impacts should be
reported. Where these
aspects have not been
considered this should
be reported with an
explanation of the
environmental
assumptions made.
Bulk density Whether assumed or The density of ore was
determined. If assumed, determined according to
the basis for the sample data that
assumptions. If collected at the project
determined, the method area. Instead of bulk
used, whether wet or samples, small volumetric
dry, the frequency of samples weighing about 5
the measurements, the - 10 kg were collected
nature, size and representing both fresh
representativeness of ores and oxidised ores.
the samples. The density information
is detailed in Section
12.7 "Specific Gravity".
Average ore density
calculated from the known
sample results is about
2.62 g/cm3.
The bulk density for
bulk material must have
been measured by methods
that adequately account
for void spaces (vugs,
porosity, etc), moisture
and differences between
rock and alteration
zones within the
deposit.
Discuss assumptions for
bulk density estimates
used in the evaluation
process of the different
materials.
Classification The basis for the The classification of
classification of the Mineral Resource reflects
Mineral Resources into confidence of the
varying confidence estimation basing on both
categories. geological continuity and
geostatistical analysis.
Therefore SRK considered
both the nature of
drilling controls
(interceptions) and
distance and numbers of
informing samples
(drillholes). The
classification of each
mineralised zones at
Pakrut Project is
detailed in Section
12.11. The Competent
Person is satisfied that
the result appropriately
reflects the Competent
Person's view of the
deposit.
Whether appropriate
account has been taken
of all relevant factors
(i.e. relative
confidence in
tonnage/grade
estimations, reliability
of input data,
confidence in continuity
of geology and metal
values, quality,
quantity and
distribution of the
data).
Whether the result
appropriately reflects
the Competent Person's
view of the deposit.
Audits or reviews The results of any This Mineral Resource
audits or reviews of estimate is an update of
Mineral Resource the Mineral Resource
estimates. statement in a Resource
and Reserve Report
prepared by SRK in 2012.
Both internal and
external peer reviews
have been applied to that
estimation Peer reviews
of this resource
estimation addressed in
this Report have been
performed within SRK
internally. SRK is not
aware of any other audits
or reviews that have been
undertaken to this
Mineral Resource
estimation.
Discussion of relative Where appropriate a Within certain parts of
accuracy/ confidence statement of the the deposit, the drill
relative accuracy and spacing and grade
confidence level in the continuity is
Mineral Resource sufficiently detailed to
estimate using an allow for a local
approach or procedure estimation of the gold
deemed appropriate by grades. The on-going
the Competent Person. underground development,
For example, the as well as previous
application of underground tunnels have
statistical or revealed that the gold
geostatistical mineralisation discovered
procedures to quantify are consistent with the
the relative accuracy of grades and geometry
the resource within reported in this Report.
stated confidence
limits, or, if such an
approach is not deemed
appropriate, a
qualitative discussion
of the factors that
could affect the
relative accuracy and
confidence of the
estimate.
The statement should
specify whether it
relates to global or
local estimates, and, if
local, state the
relevant tonnages, which
should be relevant to
technical and economic
evaluation.
Documentation should
include assumptions made
and the procedures
used.
These statements of
relative accuracy and
confidence of the
estimate should be
compared with production
data, where available.
Section 4 Estimation and Reporting of Ore Reserves
Criteria JORC Code explanation Commentary - Assessment
of the Pakrut Project
Mineral Resource estimate Description of the Detailed in section 13.
for conversion to Ore Mineral Resource The Mineral Resources are
Reserves estimate used as a basis reported inclusive of the
for the conversion to an Ore Reserves.
Ore Reserve. Clear
statement as to whether
the Mineral Resources
are reported additional
to, or inclusive of, the
Ore Reserves.
Site visits Comment on any site Detailed in section 5.5.
visits undertaken by the SRK has not conducted a
Competent Person and the site visit since
outcome of those visits. September 2014. Image and
If no site visits have video information were
been undertaken indicate provided for a desktop
why this is the case. review, while a physical
site visit is planed to
verify the new
exploration data since
2014 in May 2023.
Study status The type and level of Detailed in section 14.1.
study undertaken to Overall, SRK converted
enable Mineral Resources ore reserves based on
to be converted to Ore validated assumptions of
Reserves. The Code Stage 1 in the FS, latest
requires that a study to update of mineral
at least Pre-Feasibility resources and current
Study level has been mine plan.
undertaken to convert
Mineral Resources to Ore
Reserves. Such studies
will have been carried
out and will have
determined a mine plan
that is technically
achievable and
economically viable, and
that material Modifying
Factors have been
considered.
Cut-off parameters The basis of the cut-off Detailed in section 14.2.
grade(s) or quality The cut-off grade
parameters applied. estimation is based on a
cost and revenue
assumption, with inputs
from mining and
processing as well as
metallurgical
considerations.
Mining factors or The method and Detailed in section 15.
assumptions assumptions used as The selected mining
reported in the methods have been
Pre-Feasibility or practised widely in the
Feasibility Study to mining industry. It's
convert the Mineral conventional method and
Resource to an Ore technically feasible. The
Reserve (i.e. either by stope layout and size
application of have been practised a
appropriate factors by long time since 2015. SRK
optimisation or by considered these
preliminary or detailed assumptions are
design). The choice, technically feasible to
nature and support future mining.
appropriateness of the The mining recovery and
selected mining dilution rates are
method(s) and other detailed in section 14.3.
mining parameters The minimum mining width
including associated is 1.0 m. Inferred
design issues such as Mineral Resources were
pre-strip, access, etc. treated as waste rocks
The assumptions made with a gold grade of
regarding geotechnical zero. Pakrut Project has
parameters (eg pit completed its
slopes, stope sizes, infrastructure
etc), grade control and construction at the time
pre-production drilling. of this reporting. There
The major assumptions is no further renovation
made and Mineral or expansion plan in
Resource model used for place. It can be
pit and stope reasonably expected that
optimisation (if the practises would guide
appropriate). The mining future production well.
dilution factors used.
The mining recovery
factors used. Any
minimum mining widths
used. The manner in
which Inferred Mineral
Resources are utilised
in mining studies and
the sensitivity of the
outcome to their
inclusion. The
infrastructure
requirements of the
selected mining
methods.
Metallurgical factors or The metallurgical Detailed in section 16.
assumptions process proposed and the There is no further
appropriateness of that renovation or expansion
process to the style of plan in place. It can be
mineralisation. Whether reasonably expected that
the metallurgical the practises would guide
process is well-tested future production well.
technology or novel in
nature. The nature,
amount and
representativeness of
metallurgical test work
undertaken, the nature
of the metallurgical
domaining applied and
the corresponding
metallurgical recovery
factors applied. Any
assumptions or
allowances made for
deleterious elements.
The existence of any
bulk sample or pilot
scale test work and the
degree to which such
samples are considered
representative of the
orebody as a whole. For
minerals that are
defined by a
specification, has the
ore reserve estimation
been based on the
appropriate mineralogy
to meet the
specifications?
Environmental The status of studies of Detailed in section 19.
potential environmental There is no further
impacts of the mining renovation or expansion
and processing plan in place. It can be
operation. Details of reasonably expected that
waste rock the studies available now
characterisation and the would guide future
consideration of production well.
potential sites, status
of design options
considered and, where
applicable, the status
of approvals for process
residue storage and
waste dumps should be
reported.
Infrastructure The existence of Detailed in section 17.
appropriate There is no further
infrastructure: renovation or expansion
availability of land for plan in place. It can be
plant development, reasonably expected that
power, water, the infrastructures would
transportation support future production
(particularly for bulk well.
commodities), labour,
accommodation; or the
ease with which the
infrastructure can be
provided, or accessed.
Costs The derivation of, or Detailed in section 20.
assumptions made, Cost analysis is based on
regarding projected actual production data
capital costs in the and records from LLC
study. The methodology Pakrut. The forecast has
used to estimate considered the
operating costs. performance in recent
Allowances made for the three years, during which
content of deleterious the operation has been
elements. The source of seen stable.
exchange rates used in
the study. Derivation of
transportation charges.
The basis for
forecasting or source of
treatment and refining
charges, penalties for
failure to meet
specification, etc. The
allowances made for
royalties payable, both
Government and private.
Revenue factors The derivation of, or Production schedule is
assumptions made shown in section 15.6.3.
regarding revenue Prices are detailed in
factors including head section 18.3. Costs are
grade, metal or detailed in section 20.
commodity price(s)
exchange rates,
transportation and
treatment charges,
penalties, net smelter
returns, etc. The
derivation of
assumptions made of
metal or commodity
price(s), for the
principal metals,
minerals and
co-products.
Market assessment The demand, supply and Detailed in section 18.
stock situation for the Overall, the gold bullion
particular commodity, has been and will be
consumption trends and mainly sold to National
factors likely to affect Bank of Tajikistan.
supply and demand into
the future. A customer
and competitor analysis
along with the
identification of likely
market windows for the
product. Price and
volume forecasts and the
basis for these
forecasts. For
industrial minerals the
customer specification,
testing and acceptance
requirements prior to a
supply contract.
Economic The inputs to the Detailed in section 21.
economic analysis to The economic analysis is
produce the net present based on a forecasted
value (NPV) in the production schedule
study, the source and considered by mining and
confidence of these processing (including
economic inputs metallurgical) sectors
including estimated with high confidence
inflation, discount according to recent
rate, etc. NPV ranges production performance,
and sensitivity to and forecasted commodity
variations in the price and costs. The
significant assumptions variation of commodity
and inputs. price will impact on
project economics which
has been discussed in the
report.
Social The status of agreements Detailed in section
with key stakeholders 19.17. It is assumed no
and matters leading to social issues to impact
social licence to much on future
operate. operations.
Other To the extent relevant, A risk analysis was
the impact of the detailed in section 24.
following on the project In general, a production
and/or on the estimation rate around 2,000 tpd is
and classification of considered achievable
the Ore Reserves: Any with high confidence.
identified material
naturally occurring
risks. The status of
material legal
agreements and marketing
arrangements. The status
of governmental
agreements and approvals
critical to the
viability of the
project, such as mineral
tenement status, and
government and statutory
approvals. There must be
reasonable grounds to
expect that all
necessary Government
approvals will be
received within the
timeframes anticipated
in the Pre-Feasibility
or Feasibility study.
Highlight and discuss
the materiality of any
unresolved matter that
is dependent on a third
party on which
extraction of the
reserve is contingent.
Classification The basis for the Detailed in section 14.4.
classification of the Proved and Probable
Ore Reserves into Reserves have been
varying confidence classified accordingly,
categories. Whether the based on modifying
result appropriately factors and Mineral
reflects the Competent Resource
Person's view of the classifications.
deposit. The proportion
of Probable Ore Reserves
that have been derived
from Measured Mineral
Resources (if any).
Audits or reviews The results of any The Report has been peer
audits or reviews of Ore reviewed by other
Reserve estimates. consultants.
Discussion of relative Where appropriate a The Ore Reserve estimate
accuracy/ confidence statement of the of SRK was reviewed by
relative accuracy and technicians of Pakrut
confidence level in the Project. SRK was told
Ore Reserve estimate that both the tonnage and
using an approach or grade are close to those
procedure deemed estimated by themselves.
appropriate by the
Competent Person. For
example, the application
of statistical or
geostatistical
procedures to quantify
the relative accuracy of
the reserve within
stated confidence
limits, or, if such an
approach is not deemed
appropriate, a
qualitative discussion
of the factors which
could affect the
relative accuracy and
confidence of the
estimate. The statement
should specify whether
it relates to global or
local estimates, and, if
local, state the
relevant tonnages, which
should be relevant to
technical and economic
evaluation.
Documentation should
include assumptions made
and the procedures used.
Accuracy and confidence
discussions should
extend to specific
discussions of any
applied Modifying
Factors that may have a
material impact on Ore
Reserve viability, or
for which there are
remaining areas of
uncertainty at the
current study stage. It
is recognised that this
may not be possible or
appropriate in all
circumstances. These
statements of relative
accuracy and confidence
of the estimate should
be compared with
production data, where
available.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230424005462/en/
CONTACT:
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SOURCE: China Nonferrous Gold Limited
Copyright Business Wire 2023
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