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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Resolute Mining Limited | LSE:RSG | London | Ordinary Share | AU000000RSG6 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -1.20 | -3.68% | 31.40 | 31.00 | 31.60 | 31.60 | 31.40 | 31.60 | 225,197 | 09:15:30 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 631.07M | 65.58M | 0.0308 | 20.45 | 694.07M |
From Jul 2022 to Jul 2024
TIDMRSG
RNS Number : 2302S
Resolute Mining Limited
08 March 2023
Ore Reserves
and Mineral Resource Statement
At 31 December 2022
8 March 2023
Increases in Mineral Resources and Ore Reserves from Exploration Success
Highlights
-- Mineral Resources increased by 1.7 million ounces (Moz) to 11.2 Moz of gold, net of depletion
-- Ore Reserves have increased by 0.6 Moz to 4.6 Moz, net of depletion
-- Syama Mineral Resources increased significantly following exploration success at Syama North
-- Mineral Resources at Syama North increased to 3.2 Moz and Ore Reserves increased to 854 koz, with 10% (85koz) of oxide material
-- Further 126 koz of Mineral Resources at Syama Underground converted to Ore Reserves due to improved mining productivities
-- Mako Ore Reserves and Mineral Resources reduced in line with mining depletion
Resolute Mining Limited (ASX/LSE: RSG, Resolute or the Company) is pleased to announce the Company's Annual Ore Reserve and Mineral Resource Statement at 31 December 2022.
Ore Reserves have increased to 4.6 Moz of gold and Mineral Resources have increased to 11.2 Moz of gold after accounting for the effects of mining depletion, improved productivities underground and exploration success.
A detailed breakdown of the Company's Ore Reserves and Mineral Resources at 31 December 2022 representing the Syama and Mako operations is presented in the tables below. The 2022 Annual Ore Reserve Statement is included at Table 3 of this announcement and the 2022 Annual Mineral Resource Statement is included at Table 4.
At 31 December 2022 Resolute's direct share of Ore Reserves was 3.8 Moz and Mineral Resources of 9.1 Moz.
The exploration success at Syama North has added 2 million ounces of gold to the Mineral Resource this year and added 850,000oz to the Ore Reserve
All tonnes and grade information have been rounded to reflect the relative uncertainty of the estimate, small differences may be present in the totals.
Resolute's Chief Executive Officer, Mr Terry Holohan, commented:
"The continued success of the drilling program at Syama North over the second half of 2022 exceeded our expectations. The drill rigs are still turning on this contiguous strike discovery of over 6km which remains open at depth. At this stage the 850 koz of Syama North Ore Reserves focus only on the widest sections of the A21 pit, thus we expect further updates later this year as in-fill drilling continues delineating additional economic mineralisation. It is also worth noting that the 10% oxides delineated at Syama North now represent some of the highest grades of oxides at Syama such that they will get processing preference once mining starts in earnest.
"I am extremely proud of the 31 December 2022 Mineral Resource and Ore Reserve Statement, which incorporates these significant additions to our business, demonstrating our exploration team's achievements.
Also due to recent sustainable efficiency improvements at the Syama underground operation over 2022, the Company was able to convert a further 126 koz of the existing Mineral Resource Estimate to Ore Reserves.
"The company now turns its focus to the Syama North pre-feasibility study (PFS), which is intended to be the first step in exploiting the sulphide reserve, due for publication in the middle of 2023. Significant additions to our Mineral Resources and Ore Reserves, such as Syama North clearly demonstrate that the Syama Belt is surprisingly under-explored and justifies the need for further exploration work to be undertaken along the prospective >85 km of strike."
Table 1: Ore Reserves (100% Basis)
Hot Features
Premium
Ore reserves Proved Probable Total
---------------------- ---------------------- ---------------------- ----------------------
Tonnes g/t oz Tonnes g/t oz Tonnes g/t oz
----------------------
As at
December 2022 (000s) (000s) (000s) (000s) (000s) (000s)
----------------------- ------- ---- ------- ------- ---- ------- ------- ---- -------
Syama 2,880 1.6 148 46,226 2.7 3,964 49,106 2.6 4,112
Mako 4,558 1.2 173 4,948 2.2 348 9,506 1.7 520
Managed Ore Reserves 7,438 1.3 320 51,174 2.6 4,312 58,613 2.5 4,633
----------------------- ------- ---- ------- ------- ---- ------- ------- ---- -------
Ore Reserves as at 31 December 2022 on a 100% basis total 4.6 Moz after mining depletion with the increase coming from the new reserve at Syama North.
In Mali, the Ore Reserves at the Syama Gold Mine (Syama) increased due to an expansion in the Ore Reserves at Syama North. Overall 40% of the Measured and Indicated Mineral Resources were converted into Ore Reserves. We expect the Ore Reserve to increase this year as we continue to convert Inferred Resources to the Indicated category. Exploration success at Syama North in 2022 led to a significant increase in Mineral Resources after completing intensive drilling programs throughout the year. The large increase in Measured and Indicated Mineral Resources led to a substantial increase in Ore Reserves at Syama North to 10.6 million tonnes (Mt) at 2.5g/t Au for 854,000oz. Drilling is continuing at Syama North with the expectation of significant increases in the Ore Reserves during the year.
Underground Ore Reserves at Syama only decreased slightly as inventory increases in the cave flow modelling, due to productivity improvements offset mining depletion reductions.
Ore Reserves at the Mako Gold Mine (Mako) decreased in line with mining depletion.
Resolute's asset ownership is 80% of Syama (Mali Government 20%), 90% of Tabakoroni (Mali Government 10%), 90% of Mako (Senegalese Government 10%). As such, the Company's fully attributable Ore Reserves position net government interests, is 3.8 Moz of gold.
The chart below presents the proposed pit design at A21 in Long Section.
Table 2: Mineral Resources (100% Basis)
Mineral
Resources Measured Indicated Inferred Total Resources
-------------------- ---------------------- ---------------------- ---------------------- ------------------------
Tonnes g/t oz Tonnes g/t oz Tonnes g/t oz Tonnes g/t oz
--------------------
As at
December 2022 (000s) (000s) (000s) (000s) (000s) (000s) (000s) (000s)
-------------------- ------- ---- ------- ------- ---- ------- ------- ---- ------- --------- ---- -------
Syama 25,603 3.2 2,645 58,834 2.9 5,570 39,207 1.8 2,265 123,644 2.6 10,481
Mako 4,955 1.1 177 8,458 1.8 487 682 0.9 19 14,095 1.5 683
Managed Mineral
Resources 30,558 2.9 2,823 67,293 2.8 6,057 39,888 1.8 2,284 137,739 2.5 11,164
-------------------- ------- ---- ------- ------- ---- ------- ------- ---- ------- --------- ---- -------
Mineral Resources (inclusive of Ore Reserves) at 31 December 2022, on a 100% basis, contain 11.2 Moz of gold. The Company's fully attributable Mineral Resources position, net of government interests is 9.1 Moz of gold.
In Senegal, the Mineral Resources at Mako decreased in line with mining depletion. At Syama the Mineral Resources increased significantly in 2022 following the addition of 2 Moz discovered at Syama North during the year.
The highly successful drilling programs in 2021 and 2022 at Syama North have outlined a company significant Mineral Resource which has the potential to transform the mining operation at Syama. During 2022 the Syama North Mineral Resource increased to 34Mt @ 2.9g/t Au for 3.2 Moz an increase of 2 Moz.
Syama North Plan view:
Table 3: Ore Reserves Statement
Group
Proved Probable Total Share
----------------------- --- ------------------------------------------- ------------------------------- -------------- -------------------------------- --------
Tonnes g/t oz Tonnes g/t oz Tonnes g/t oz oz
----------------------
Ore Reserves
As at December 2022 (000s) (000s) (000s) (000s) (000s) (000s) (000s)
----------------------- --- --------- ----- ------- ---------------- -------------- --------------- -------------- --------------- --------------- --------
Mali 80%
Syama Underground 0 0.0 0 25,500 2.6 2,094 25,500 2.6 2,094 1,675
Syama Stockpiles 707 2.0 46 1,817 1.3 78 2,523 1.5 124 99
---------------------------- --------- ----- ------- ---------------- -------------- --------------- -------------- --------------- --------------- --------
Sub Total (Sulphides) 707 2.0 46 27,317 2.5 2,172 28,023 2.5 2,218 1,774
---------------------------- --------- ----- ------- ---------------- -------------- --------------- -------------- --------------- --------------- --------
Syama Satellite Deposits 164 2.2 11 12,367 2.5 975 12,530 2.4 987 789
Stockpiles (satellite
deposits) 881 1.3 38 1,403 1.0 43 2,284 1.1 81 65
---------------------------- --------- ----- ------- ---------------- -------------- --------------- -------------- --------------- --------------- --------
Sub Total Satellite
Deposits 1,045 1.5 49 13,770 2.3 1,018 14,815 2.2 1,067 854
---------------------------- --------- ----- ------- ---------------- -------------- --------------- -------------- --------------- --------------- --------
90%
Tabakoroni Underground 0 0.0 0 5,028 4.7 766 5,028 4.7 766 689
Tabakoroni Open Pit 48 1.9 3 222 1.7 12 270 1.7 15 13
Tabakoroni Satellite
Deposits 0 0.0 0 0 0.0 0 0 0.0 0 0
Tabakoroni Stockpiles 1,080 1.4 50 0 0.0 0 1,080 1.4 50 45
---------------------------- --------- ----- ------- ---------------- -------------- --------------- -------------- --------------- --------------- --------
Sub Total Tabakoroni 1,129 1.5 53 5,250 4.6 778 6,378 4.1 831 748
---------------------------- --------- ----- ------- ---------------- -------------- --------------- -------------- --------------- --------------- --------
Mali Total 2,880 1.6 148 46,226 2.7 3,964 49,106 2.6 4,112 3,373
---------------------------- --------- ----- ------- ---------------- -------------- --------------- -------------- --------------- --------------- --------
Senegal 90%
Mako 697 2.0 44 4,948 2.2 348 5,645 2.2 392 353
Mako Stockpiles 3,861 1.0 128 0 0.0 0 3,861 1.0 128 115
Senegal Total 4,558 1.2 173 4,948 2.2 348 9,506 1.7 520 468
---------------------------- --------- ----- ------- ---------------- -------------- --------------- -------------- --------------- --------------- --------
Total Ore Reserves 7,438 1.3 320 51,174 2.6 4,312 58,613 2.5 4,633 3,841
---------------------------- --------- ----- ------- ---------------- -------------- --------------- -------------- --------------- --------------- --------
Notes:
1. Mineral Resources include Ore Reserves.
2. All tonnes and grade information have been rounded to reflect relative uncertainty of the estimate, small differences may be present in the totals.
3. Syama Underground mine planning is based on a shut-off grade of 2g/t.
4. Syama Satellite Reserves are reported above 0.8g/t cut-off.
5. Tabakoroni Underground Reserves are reported above a 2.75g/t cut-off.
6. Tabakoroni Satellite Reserves are reported above 0.8g/t cut-off.
7. Mako Reserves are reported above 0.9g/t cut-off.
Table 4: Mineral Resources Statement
Total
Measured Indicated Inferred Resources Group Share
============================================= ========================= ====================== ============== ==================
Tonnes g/t oz Tonnes g/t oz Tonnes g/t oz Tonnes g/t oz oz
Mineral Resources
As at December 2022 (000s) (000s) (000s) (000s) (000s) (000s) (000s) (000s) (000s)
====================== ======== === ======= =========== === ======= ======== === ======= ========= === ======== ========
Mali 80%
Syama Underground 21,235 3.5 2,362 25,920 3.0 2,483 1,359 2.6 112 48,514 3.2 4,957 3,966
Stockpiles (sulphide) 707 2.0 46 1,771 1.3 75 0 0.0 0 2,478 1.5 120 96
---------------------- -------- --- ------- ----------- --- ------- -------- --- ------- --------- --- -------- --------
Sub Total (Sulphides) 21,942 3.4 2,408 27,691 2.9 2,558 1,359 2.6 112 50,992 3.1 5,077 4,062
---------------------- -------- --- ------- ----------- --- ------- -------- --- ------- --------- --- -------- --------
Satellite Deposits 1,748 2.5 141 24,102 2.8 2,135 19,156 2.6 1,604 45,006 2.7 3,880 3,104
Stockpiles (satellite
deposits) 739 1.6 38 1,657 1.0 52 46 1.1 2 2,442 1.2 91 73
====================== ======== === ======= =========== === ======= ======== === ======= ========= === ======== ========
Sub Total Satellite
Deposits 2,487 2.2 179 25,759 2.6 2,187 19,202 2.6 1,606 47,448 2.6 3,972 3,177
====================== ======== === ======= =========== === ======= ======== === ======= ========= === ======== ========
Old Tailings 0 0.0 0 0 0.0 0 17,000 0.7 365 17,000 0.7 365 292
90%
Tabakoroni Open Pit 33 3.9 4 205 5.0 33 1 6.0 0 239 4.9 38 34
Tabakoroni Underground 6 3.5 1 5,179 4.8 792 1,644 3.5 182 6,829 4.4 976 878
Tabakoroni Satellite
Deposits 190 2.0 12 0 0.0 0 0 0.0 0 190 2.0 12 11
Tabakoroni Stockpiles 945 1.4 42 0 0.0 0 0 0.0 0 945 1.4 42 38
====================== ======== === ======= =========== === ======= ======== === ======= ========= === ======== ========
Sub Total Tabakoroni 1,174 1.6 59 5,384 4.8 826 1,646 3.5 183 8,204 4.0 1,067 960
====================== ======== === ======= =========== === ======= ======== === ======= ========= === ======== ========
Mali Total 25,603 3.2 2,645 58,834 2.9 5,570 39,207 1.8 2,265 123,644 2.6 10,481 8,492
====================== ======== === ======= =========== === ======= ======== === ======= ========= === ======== ========
Senegal 90%
Mako 1,103 1.6 56 8,458 1.8 487 682 0.9 19 10,243 1.7 561 505
Mako Stockpiles 3,852 1.0 121 0 0.0 0 0 0.0 0 3,852 1.0 121 109
====================== ======== === ======= =========== === ======= ======== === ======= ========= === ======== ========
Senegal Total 4,955 1.1 177 8,458 1.8 487 682 0.9 19 14,095 1.5 683 614
====================== ======== === ======= =========== === ======= ======== === ======= ========= === ======== ========
Total Mineral
Resources 30,558 2.9 2,823 67,293 2.8 6,057 39,888 1.8 2,284 137,739 2.5 11,164 9,106
====================== ======== === ======= =========== === ======= ======== === ======= ========= === ======== ========
Notes:
1. Mineral Resources include Ore Reserves.
2. All tonnes and grade information have been rounded to reflect relative uncertainty of the estimate, small differences may be present in the totals.
3. Resources are reported above 1.0g/t cut-off for the Syama North.
4. Resources for the SLC at Syama is reported within an MSO shape generated at 1.3g/t and south of the SLC within an MSO shape generated at 1.5g/t.
5. Resources for the Cashew NE, Paysans, Tellem and Porphyry Zone (Splay) are reported above a cut-off of 1.0g/t.
6. Resources for Tabakoroni Open Pit are reported above a cut-off of 1.0g/t and within a US$2,000 optimised shell.
7. Resources for the Tabakoroni Underground are reported within an MSO shape generated at 1.75g/t (equivalent to US$2,000).
8. Mako Resources are reported above a cut-off of 0.5g/t and within a US$2,000 optimised shell.
Summary of Mineral Resource Parameters
A summary of JORC Table 1 is provided below for compliance regarding the Mineral Resources reported within and in-line with the requirements of ASX Listing Rule 5.8.1. There has been a material change to Syama Satellite Mineral resource as detailed in the ASX release dated January 2023. Syama Mineral Resources increased significantly following exploration success at Syama North.
Geology and geological interpretation
The Syama Project is found on the northern margin of the Achaean-Proterozoic Leo Shield which forms the southern half of the West African Craton. The project area straddles the boundary between the Kadiana-Madinani terrane and the Kadiolo terrane. The Kadiana-Madinani terrane is dominated by greywackes and a narrow belt of interbedded basalt and argillite. The Kadiolo terrane comprises polymictic conglomerate and sandstone that were sourced from the Kadiana-Madinani terrane and deposited in a late- to syntectonic basin.
Prospects are centred on the NNE striking, west dipping, Syama-Bananso Fault Zone and Birimian volcano-sedimentary units of the Syama Formation.
Sampling and sub-sampling techniques
Diamond core has been sampled at 1m intervals and cut in half to obtain a 2-4kg sample.
Reverse circulation samples were collected on 1m intervals by riffle split (dry) or by scoop (wet) to obtain a 2-4kg sample (Syama) or 1-3kg sample.
Sample preparation for diamond core and RC samples includes oven drying, crushing to 10mm and splitting, pulverising to 85% passing -75um. These preparation techniques are deemed to be appropriate to the material and element being sampled.
Drill core coarse duplicates were split by the laboratory after crushing at a rate of 1:20 samples. Reverse circulation field duplicates were collected by the company at a rate of 1:20 samples.
Drilling techniques
Drill types used include diamond core of HQ and NQ sizes. Core is oriented at 3m down hole intervals using a Reflex Act II RD Orientation Tool and more recently using a Reflex north seeking gyro instrument.
Classification criteria
Mineral Resources were classified in accordance with the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC, 2012).
The deposit has been classified as Measured, Indicated, and Inferred Mineral Resource based on a combination of quantitative and qualitative criteria which include geologic continuity, confidence in volume models, data quality, sample spacing, lode continuity, and estimation parameters (number of informing composites, estimation pass number, kriging quality parameters, and minimum and average distance composites).
The Measured portion of the Resource was defined using areas populated on the first estimation pass, within 20m of informing composites; the kriging efficiency and slope of regression were generally >=0.7; and high confidence exists in lode continuity (strike and thickness).
The Indicated portion of the Resource was defined using areas populated on the first two estimation passes within 50m of informing composites; the kriging efficiency and slope of regression were generally >=0.7; and moderate to high confidence exists in lode continuity (strike and thickness).
Mineralisation that not classified by the above parameters has been classified as Inferred.
The input data is comprehensive in its coverage and does not favour or misrepresent the in situ mineralisation. The definition of the mineralised zones is based on a high level of geologic understanding from good quality sample data, producing models of continuous mineralised lodes. Validation of the block model shows good correlation of the input data to the block estimated grades.
The Mineral Resource estimate appropriately reflects the view of the Competent Person
Sample analysis method
All samples were dispatched to ALS Bamako for gold analysis by 30g fire assay fusion with AAS instrument finish (method code Au-AA25). Over-range results were re-analysed and reported by 30g fire assay fusion with gravimetric finish (method code Au-GRA21). The analytical method was appropriate for the style of mineralisation.
No geophysical tools were used to determine elemental concentrations.
Quality control (QC) procedures included the use of certified standards (1:40), non-certified sand blanks (1:40), diamond core coarse duplicates (1:20) and reverse circulation field duplicates (1:20).
Laboratory quality control data, including laboratory standards, blanks, duplicates, repeats, grind size results and sample weights were also captured into the digital database.
Analysis of the QC sample assay results indicates that an acceptable level of accuracy and precision has been achieved.
Estimation methodology
Estimation of gold grade has been completed using Ordinary Kriging (OK).
The deposit mineralisation has been constrained by wireframes constructed using a combination of downhole gold assay and associated lithological logging. These lode wireframes have been used to define domain codes used for estimation. The drillholes have been flagged with the domain code and composited using the domain code to segregate the data.
Domain boundary analysis has been undertaken, with hard boundaries used for all domains.
Drillholes have been composited to 1m intervals using Leapfrog Geo 2021.2.5 with residual lengths distributed evenly across all composites. There are no residual samples.
The influence of extreme gold assays has been reduced by top-cutting across selected domains. Top-cuts have been determined using a combination of log probability, log histogram, and mean-variance plots. Top-cuts have been reviewed and applied to the composites on a domain-by-domain basis.
Variography has been determined using Datamine Supervisor v.8.14 software using top-cut values. Where there is insufficient data in individual domains to generate meaningful variograms, domains have been grouped, or variograms borrowed from other similar domains.
Drillhole data spacing ranges from 10m spacing in areas of dense drilling to approximately 100m spacing in sparsely drilled, deeper areas.
The block model parent block size is 5m (X) by 10m (Y) by 5m (Z) with sub-blocks down to 0.3125m (X) by 0.625m (Y) by 0.3125m (Z), with the sub-blocks estimated at the scale of the parent block. The block size is considered appropriate for the drillhole spacing throughout the deposit.
Grade estimation has been completed in three passes:
Pass 1 estimation has been undertaken using a minimum and maximum number of sample composites (determined using Datamine Supervisor v.8.14 KNA tool) into a search ellipsoid with dimensions equal to half the variogram range of the domain.
Pass 2 estimation has been undertaken with the same minimum/maximum samples as Pass 1 into a search ellipsoid twice the first pass.
Pass 3 estimation has been undertaken with a minimum of 4 samples, and the same maximum number of samples as the first two passes into a search ellipsoid twice the second pass
A four drillhole limit has been applied to the passes.
Previous Mineral Resource estimates are comparable in size and scope when considering the additional extensional drilling included in the current estimate.
The Mineral Resource estimate has been validated using visual validation tools, mean grade comparisons between the block model and declustered composite grade means, and swath plots comparing the input composite grades and the block model grades by Northing, Easting, and RL
No selective mining units are assumed in the estimate. There will be no by-products recovered from mining. No additional or deleterious elements have been estimated. The model focuses on interpreting mineralisation beneath existing open pits. Historical reconciliation data is incomplete and has not been used.
Basis for selected cut-off grade
A cut-off grade of 1.0 g/t Au has been used for construction of mineralised wireframes, based on mining parameters of the nearby Syama and Tabakoroni deposits.
Mining and metallurgical methods and other material modifying factors
Extensive metallurgical investigations and reporting have been completed prior to the commencement of mining and milling at the nearby Syama deposit.
The processing method involves crushing, milling, flotation and roasting, followed by conventional CIL recovery.
There is no evidence to suggest that the metallurgical characteristics of ore extracted from Syama North would change from that encountered at Syama.
Summary of Ore Reserve Parameters
A summary of JORC Table 1 is provided below in Appendix for compliance regarding the Ore Reserves reported within and in-line with the requirements of ASX Listing Rule 5.9.1. There has been a material change to the Syama North Satellite Reserve; i.e, change in tonnes, grades, rock type (Oxide; Transistional and Fresh).
Material assumptions and the outcomes of the [preliminary] feasibility study
The Syama North deposit consist of A21, Beta, Alpha & Ba04 pits.
Feasibility Studies were completed for mining of Northern satellite deposits in 2009, and mining of satellite pits has been occurring since then. Recent drilling in Syama North has identified a significant resource in sulphide, spread across the Syama North region, an extension to the known oxide deposit. Additional drilling was completed targeting the A21 area and the resource model was updated in Dec 22 with additional information. Overall, 40% of the Measured and Indicated Mineral Resources were converted into Ore Reserves. Infill drilling is ongoing, and we expect the Ore Reserve to increase this year as we convert Inferred Resources to Indicated category.
Pit was reoptimized using the new resource model and redesigned to match the latest optimisation. All Reserves were declared as Probable as more test works and drilling is ongoing to firm up the modifying factors (geotechnical inputs).
The work undertaken to date has addressed all material Modifying Factors required for the conversion of a Mineral Resources estimate into an Ore Reserve estimate and has shown material change where there is a significant increase in Measured and Indicated Mineral Resources. As a result, Ore Reserves at Syama North increases to 10.6 million tonnes (Mt) at 2.5g/t Au for 854,000oz. Drilling is continuing at Syama North with the expectation of significant increases in the Ore Reserves during the year.
Classification criteria
The Ore Reserves are based on the Mineral Resource estimate detailed in the ASX release dated January 2023.
Proved and Probable Ore Reserves were declared based on the Measured and Indicated Mineral Resources. None of the Measured Mineral Resource was converted to Proven Ore Reserves as the PFS study for plant expansion is underway and drilling is ongoing to firm up the geotechnical inputs.
Mining methodology
Mining is planned to be undertaken by conventional open pit methods of drill and blast, followed by load and haul. The Ore from Syama North will be trucked to Syama and treated through Syama Processing plant.
Detailed pit design work was completed based on pit optimisations result. Only Measured and Indicated Resources were used in the pit optimisation.
Processing method
Metallurgical test work was conducted on multiple samples. The tests indicated that, similarly to the Syama ore. The processing of the ore will be similar to that of the Syama sulphide circuit which has been in operation for several years and is well understood, consisting of the following stages:
-- Crushing and grinding utilising the existing oxide process plant infrastructure -- Gravity gold recovery utilising the existing oxide gravity circuit -- Flotation to produce a sulphide rich concentrate -- Concentrate thickening -- Roasting, followed by calcine quench and wash -- Carbon-in-leach (CIL) -- Tailings disposal
A total gold recovery of 86%, 80% and 78%, has been assumed for Oxide, Transistional and Fresh Material respectively, based on test results to date. This is in line with similar ore being processed at Syama.
Basis for selected cut-off grade
The mill cut-off grade is used for Reserve Reporting. It is the derived from the long-term gold price, processing cost, mining dilution, royalty and selling costs. The above-mentioned economic parameters are the same as in the Financial Model 2022
Estimation methodology
The reported Ore Reserve estimates for Syama North are based on pit optimisations conducted using the Lerchs-Grossman (LG) algorithm utilizing the NPV Scheduler and reviewed in Whittle to calculate the optimal pit at specific input parameters and pit designs. Costs are based on existing contract mining and haulage rates and site costs which are understood with a high degree of accuracy.
Detailed pit design work was completed based on pit optimisations result. Only Measured and Indicated Resources were used in the pit optimisation.
Overall slope angles are dependent on rock type; approximately 34deg for Oxide, 38deg for Transisitional and 50deg for Fresh as recommended by Geotechnical consultants and operational experience in mining other similar pits in same region.
A 5% dilution and 10 % mining loss factor applied. All Inferred material is treated as waste and is excluded from Reserve Reporting.
Inferred Mineral Resources are not included in the pit optimisation and pit design. A mining and production schedule were completed with Inferred Mineral Resource treated as waste. As a result, the conversion of Inferred Mineral Resource to processed product is not required for the overall financial viability of the project.
Material modifying factors
Detailed pit design work was completed based on pit optimisations result. Only Measured and Indicated Resources were used in the pit optimisation.
Overall slope angles are dependent on rock type; approximately 34deg for Oxide, 38deg for Transistional and 50deg for Fresh as recommended by Geotechnical consultants and operational experience in mining other similar pits in same region.
A 5% dilution and 10 % mining loss factor applied. The Dilution and mining loss assumptions are derived from the reconciliation results at Syama. All Inferred material is treated as waste and is excluded from Reserve Reporting.
The Syama North pits are located within approximately 8km of Syama. Ore is trucked to Syama where it is processed at Syama. General and administration costs are shared between the oxide plant and the sulphide plant. As part of ongoing operations, capital and operating budgets are prepared from first principles and considering existing contractual agreements.
The processing plant produces gold doré (without problematic deleterious elements) that is subsequently refined offsite. Refining costs are not material.
A gold price of US$1,500/oz formed the basis of the Ore Reserves
Exchange rates used for planning purposes are from consensus forecasts provided by external corporate advisers.
Ad valorem Government royalties of 6% are payable on gold production.
No penalties are incurred, nor is any revenue received from co-products.
Competent Persons Statement
The information in this announcement that relates to data quality, geological interpretation and Mineral Resource estimation for the various projects unless specified in the list below is based on information compiled by Bruce Mowat, a Competent Person who is a Member of the Australian Institute of Geoscientists and a full-time employee of Resolute Corporate Services Pty Ltd, a wholly-owned subsidiary of Resolute Mining Limited. Mr Mowat has sufficient experience that is relevant to the styles of mineralisation and type of deposits under consideration and to the activity being undertaken as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code 2012). Mr Mowat consents to the inclusion in this announcement of the material compiled by him in the form and context in which it appears.
The information in this statement that relates to the Mineral Resources and Ore Reserves listed below is based on information and supporting documents prepared by the Competent Person identified. Each person specified in the list has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which has been undertaken to qualify as a Competent Person as defined in the JORC Code 2012.
Mr Ndjibu and Mr Patani are full-time employees of Resolute Corporate Services Pty Ltd, a wholly-owned subsidiary of Resolute Mining Limited. Mr Johnson is a full-time employee of MPR Geological Consultants Pty Ltd.
Mr Osiejak is a full-time employee of Cube Consulting Pty Ltd. Ms Havlin is an employee of Snowden Optiro Pty Ltd. Each person identified in the list below consents to the inclusion in this announcement of the material compiled by them in the form and context in which it appears.
Activity Competent Person Membership Institution ============================ ================= ================================================ Syama Resource Patrick Smillie Society for Mining, Metallurgy & Exploration Syama Reserve Gito Patani Australasian Institute of Mining and Metallurgy Syama North Resource Patrick Smillie Society for Mining, Metallurgy & Exploration Syama North Reserves Kitwa Ndjibu Australasian Institute of Mining and Metallurgy Syama Tailings Facility Susan Havlin Australasian Institute of Mining and Metallurgy Tabakoroni OP Resource Susan Havlin Australasian Institute of Mining and Metallurgy Tabakoroni OP Reserves Kitwa Ndjibu Australasian Institute of Mining and Metallurgy Tabakoroni UG Resource Susan Havlin Australasian Institute of Mining and Metallurgy Tabakoroni UG Reserves Gito Patani Australasian Institute of Mining and Metallurgy Tellem Resource Nic Johnson Australian Institute of Geoscientists Tellem Reserves Kitwa Ndjibu Australasian Institute of Mining and Metallurgy Cashew NE Resource Bruce Mowat Australian Institute of Geoscientists Cashew NE Reserves Kitwa Ndjibu Australasian Institute of Mining and Metallurgy Paysans Resource Nic Johnson Australian Institute of Geoscientists Paysans Reserves Kitwa Ndjibu Australasian Institute of Mining and Metallurgy Porphyry Zone Resource Bruce Mowat Australian Institute of Geoscientists Porphyry Zone Reserves Kitwa Ndjibu Australasian Institute of Mining and Metallurgy Mako Resources - In Situ Marcus Osiejak Australasian Institute of Mining and Metallurgy Mako Resources - Stockpiles Bruce Mowat Australian Institute of Geoscientists Mako Reserves Kitwa Ndjibu Australasian Institute of Mining and Metallurgy ============================ ================= ================================================
Cautionary Statement about Forward-Looking Statements
This announcement contains certain "forward-looking statements" including statements regarding our intent, belief or current expectations with respect to Resolute's business and operations, market conditions, results of operations and financial condition, and risk management practices. The words "likely", "expect", "aim", "should", "could", "may", "anticipate", "predict", "believe", "plan", "forecast" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings, anticipated production, life of mine and financial position and performance are also forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Resolute's actual results, performance and achievements or industry results to differ materially from any future results, performance or achievements, or industry results, expressed or implied by these forward-looking statements. Relevant factors may include (but are not limited to) changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which Resolute operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.
Forward-looking statements are based on Resolute's good faith assumptions as to the financial, market, regulatory and other relevant environments that will exist and affect Resolute's business and operations in the future. Resolute does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and many events are beyond the reasonable control of Resolute. Readers are cautioned not to place undue reliance on forward-looking statements, particularly in the current economic climate with the significant volatility, uncertainty and disruption caused by the COVID-19 pandemic. Forward-looking statements in this document speak only at the date of issue. Except as required by applicable laws or regulations, Resolute does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in assumptions on which any such statement is based. Except for statutory liability which cannot be excluded, each of Resolute, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in these forward-looking statements and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in forward-looking statements or any error or omission.
About Resolute
Resolute Mining (ASX/LSE: RSG) is an African gold miner, developer and explorer with more than 30 years of experience across Australia and Africa. To date, the company has produced over nine million ounces of gold. It currently operates the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal. Resolute's gold production and cost guidance for FY2023 is 350,000oz at an All-In Sustaining Cost of $1,480/oz.
Through all its activities, sustainability is the core value at Resolute. This means that protecting the environment, providing a safe and productive working environment for employees, uplifting host communities, and practising good corporate governance are non-negotiable priorities. Resolute's commitment to sustainability and good corporate citizenship has been cemented through its adoption of and adherence to the Responsible Gold Mining Principles (RGMPs). This framework, which sets out clear expectations for consumers, investors, and the gold supply chain as to what constitutes responsible gold mining, is an initiative of the World Gold Council of which Resolute has been a member since 2017. The Company is on track to reach full compliance with the RGMPs in 2023.
For further information, contact:
Resolute Public Relations James Virgo, GM Finance and Investor Jos Simson / Emily Moss, Tavistock Relations resolute@tavistock.co.uk contact@rml.com.au +44 207 920 3150 / +44 7788 +61 8 9261 6100 554 035 Corporate Broker Jennifer Lee, Berenberg +44 20 3753 3040
Authorised by Mr Terry Holohan , Managing Director and Chief Executive Officer
APPIX
Ore Reserves Comparison to 31 December 2021
Reserves and Resources comply with the Australasian Code for Reporting of Mineral Resources and Reserves (The JORC Code 2004 and JORC Code 2012).
Dec-22 Dec-21
Gold Group Group Gold Group Group
Tonnes grade Ounces Share Share Tonnes grade Ounces Share Share
(000s) (g/t) (000s) % Ounces (000s) (g/t) (000s) % Ounces
====== ======= ======= ====== ======= ====== ======== ======= ====== =======
Ore Reserves Proved Proved Comment on Changes
============== ========================================== ================================== ======================
Mali
============== ====== ======= ======= ======= ======= ====== ======== ======= ======= ======= =============
Syama Movement in
Stockpiles operating
(Sulphide) 707 2.0 46 80% 37 760 1.8 44 80% 35 stockpiles
New Reserve
(A21, Ba01N,
Syama North 0 0.0 0 80% 0 793 1.8 46 80% 37 Ba04, Alpha)
Movement in
Stockpiles operating
(Oxide) 881 1.3 38 80% 30 768 1.5 38 80% 30 stockpiles
Porphyry Zone New pit
(Splay) 164 2.2 11 80% 9 design
Tabakoroni
Open Pit 48 1.9 3 90% 0 962 1.6 49 90% 44 New Reserve
Tabakoroni Mining
Stockpiles 1080 1.4 50 90% 45 596 2.0 39 90% 35 depletion
Senegal
============== ====== ======= ======= ======= ======= ====== ======== ======= ======= ======= =============
COG change
and mining
Mako 697 2.0 44 90% 40 2,037 1.9 122 90% 109 depletion
Movement in
Mako operating
Stockpiles 3861 1.0 128 90% 115 3,054 1.1 103 90% 93 stockpiles
============== ====== ======= ======= ======= ======= ====== ======== ======= ======= ======= =============
Total Proved 7438 1.3 320 279 9,858 1.5 482 421
============== ====== ======= ======= ======= ======= ====== ======== ======= ======= ======= =============
Probable Probable Comment on Changes
============== ========================================== ================================== ======================
Mali
============== ====== ======= ======= ======= ======= ====== ======== ======= ======= ======= =============
Syama 25,500 2.6 2,094 80% 1,675 25,678 2.6 2,159 80% 1,727 Depletion
Underground from mining &
additional
ounces from
Optimisation
Syama Movement in
Stockpiles operating
(sulphide) 1,817 1.3 78 80% 63 1,806 1.3 77 80% 62 stockpiles
Syama North 10,582 2.5 854 80% 683 184 1.3 8 80% 6 New pit
optimisation
(A21, Ba01N,
Ba04, Alpha):
design soon
Movement in
Stockpiles operating
(Syama North) 1,403 1.0 43 80% 34 1,403 1.0 43 80% 34 stockpiles
Cashew South 109 1.4 5 80% 4
Combined with
Cashew NE 0 90 2.0 6 80% 5 Paysans
New pit
Paysans 609 1.7 33 80% 27 715 2.0 46 80% 37 design
Tellem 1,065 2.5 84 80% 68 435 2.1 29 80% 23 New pit
optimisation.
Loew
confidence in
modifying
factors
New pit
Folona 2 1.6 0.1 80% 0 design
Tabakoroni 222 1.7 12 90% 11 209 1.8 12 90% 11 Mining
Open Pit depletion &
Optimisation
at Taba Fresh
Tabakoroni
Underground 5,028 4.7 766 90% 689 5,028 4.7 766 90% 689 No change
Senegal
============== ====== ======= ======= ======= ======= ====== ======== ======= ======= ======= =============
Mining
Mako 4,948 2.2 348 90% 313 7,101 1.9 437 90% 393 depletion
Total Probable 51,284 2.6 4,317 3,566 42,649 2.6 3,583 2,988
============== ====== ======= ======= ======= ======= ====== ======== ======= ======= ======= =============
Total Reserves 58,723 2.5 4,637 3,845 52,506 2.4 4,065 3,409
============== ====== ======= ======= ======= ======= ====== ======== ======= ======= ======= =============
Appendix Table 1: Ore Reserves Comparison - 31 December 2022 to 31 December 2021
Notes:
1. Mineral Resources include Ore Reserves.
2. All tonnes and grade information have been rounded to reflect relative uncertainty of the estimate, small differences may be present in the totals.
3. Syama Underground mine planning is based on a shut-off grade of 2g/t.
4. Syama Satellite Reserves are reported above 0.8g/t cut-off.
5. Tabakoroni Underground Reserves are reported above a 2.75g/t cut-off.
6. Tabakoroni Satellite Reserves are reported above 0.8g/t cut-off.
7. Mako Reserves are reported above 0.9g/t cut-off.
Mineral Resources Comparison To 31 December 2021
Dec-22 Dec-21
============================================= =============================================
Tonnes Gold Ounces Group Group Tonnes Gold Ounces Group Group
grade Share Share grade Share Share
(000s) (g/t) (000s) % Ounces (000s) (g/t) (000s) % Ounces
======== ======== ======= ====== ======= ======== ======== ======= ====== =======
Mineral Measured Measured Comment on
Resources Changes
============ ============================================= ============================================= ==========
Mali
============ ======== ======== ======= ======= ======= ======== ======== ======= ======= ======= ==========
Depletion
due to
mining and
Syama new
Underground 21,235 3.5 2,362 80% 1,890 14,417 3.6 1,644 80% 1,315 Resource
Movement
Syama in
Stockpiles operating
(Sulphide) 707 2.0 46 80% 37 760 1.8 44 80% 35 stockpiles
New
Syama North 717 3.5 81 80% 65 4,332 2.7 375 80% 300 Resource
Movement
in
Stockpiles operating
(Oxide) 739 1.6 38 80% 30 768 1.5 38 80% 30 stockpiles
New
Cashew NE 1,031 1.8 60 80% 48 1,031 1.8 60 80% 48 Resource
Tabakoroni New
Open Pit 33 3.9 4 90% 4 524 3.3 55 90% 50 Resource
Tabakoroni New
Underground 6 3.5 1 90% 1 6 3.5 1 90% 1 Resource
Movement
in
Tabakoroni operating
Stockpiles 945 1.4 42 90% 38 888 1.5 43 90% 39 stockpiles
Porphyry
Zone New
(Splay) 190 2.0 12 90% 11 2,192 1.7 122 90% 110 Resource
============ ======== ======== ======= ======= ======= ======== ======== ======= ======= ======= ==========
Senegal
============ ======== ======== ======= ======= ======= ======== ======== ======= ======= ======= ==========
Depletion
due to
mining and
new
Mako 1,103 1.6 56 90% 50 2,455 1.7 135 90% 241 Resource
Movement
in
Mako operating
Stockpiles 3,852 1.0 121 90% 109 3,054 1.1 103 90% 88 stockpiles
============ ======== ======== ======= ======= ======= ======== ======== ======= ======= ======= ==========
Total
Measured 30,558 2.9 2,823 2,282 30,426 2.7 2,620 2,142
============ ======== ======== ======= ======= ======= ======== ======== ======= ======= ======= ==========
Indicated Indicated
============ ============================================= ============================================= ==========
Mali
============ ======== ======== ======= ======= ======= ======== ======== ======= ======= ======= ==========
Depletion
due to
mining and
Syama new
Underground 25,920 3.0 2,483 80% 1,986 25,447 3.0 2,456 80% 1,965 Resource
Movement
Syama in
Stockpiles operating
(Sulphide) 1,771 1.3 75 80% 60 1,825 1.4 79 80% 63 stockpiles
New
Syama North 18,457 3.0 1,774 80% 1,419 4,123 2.7 363 80% 291 Resource
Stockpiles
(Oxide) 1,657 1.0 52 80% 42 1,403 1.0 43 80% 34 No change
Depletion
due to
mining and
new
Cashew NE 0 0.0 0 80% 0 0 0.0 0 80% 0 Resource
Paysans 3,437 1.8 199 80% 159 4,210 1.7 230 80% 184 No change
Tellem 2,208 2.3 162 80% 130 1,770 1.9 110 80% 88 No change
Tabakoroni New
Open Pit 205 5.0 33 90% 30 2,127 4.6 318 90% 286 Resource
Tabakoroni New
Underground 5,179 4.8 792 90% 713 5,179 4.8 792 90% 713 Resource
Senegal
New
Resource
and mining
Mako 8,458 1.8 487 90% 438 9,913 1.8 560 90% 504 depletion
============ ======== ======== ======= ======= ======= ======== ======== ======= ======= ======= ==========
Total
Indicated 67,293 2.8 6,057 4,977 55,997 2.8 4,951 4,128
============ ======== ======== ======= ======= ======= ======== ======== ======= ======= ======= ==========
Dec-22 Dec-21
=========================================== ============================================
Tonnes Gold Ounces Group Group Tonnes Gold Ounces Group Group
grade Share Share grade Share Share
(000s) (g/t) (000s) % Ounces (000s) (g/t) (000s) % Ounces
======== ======= ======= ====== ======= ======== ======= ======= ======= =======
Mineral Inferred Inferred Comment on
Resources Changes
=============== =========================================== ============================================ =============
Mali
=============== ======== ======= ======= ====== ======= ======== ======= ======= ======= ======= =============
Syama 1,359 2.6 112 80% 90 10,582 2.6 883 80% 706 New resource
Underground and
depletion
due to
mining
Syama North 14,683 2.8 1,319 80% 1,055 3,495 3.2 358 80% 286 New resource
Movement in
Stockpiles operating
(Syama North) 46 1.1 2 80% 1 45 1.1 2 80% 1 stockpiles
Cashew NE 0 0 0 80% 0 0 0 0 80% 0 No change
Updated
Paysans 1,765 1.7 98 80% 78 920 1.6 40 80% 32 resource
Updated
Tellem 2,528 2.3 187 80% 150 400 2.5 35 80% 28 resource
Depletion
Tabakoroni due to
Open Pit 1 6 0 80% 0 21 5.6 4 80% 3 mining
Tabakoroni
Underground 1,644 3.5 182 90% 164 1,644 3.5 182 90% 164 No change
Porphyry Zone 0 0 0 90% 0 0 0 0 90% 0 No change
Tailings
Storage
Facility 17,000 0.7 365 80% 292 17,000 0.7 365 80% 292 No change
=============== ======== ======= ======= ====== ======= ======== ======= ======= ======= ======= =============
Senegal
=============== ======== ======= ======= ====== ======= ======== ======= ======= ======= ======= =============
Mining
Mako 682 0.9 19 90% 17 986 0.9 28 90% 25 depletion
=============== ======== ======= ======= ====== ======= ======== ======= ======= ======= ======= =============
Total Inferred 39,888 1.8 2,284 1,848 35,094 1.7 1,896 1,538
--------------- -------- ------- ------- ------ ------- -------- ------- ------- ------- ------- -------------
Total
Resources 137,739 2.5 11,164 9,106 121,517 2.4 9,467 7,808
=============== ======== ======= ======= ====== ======= ======== ======= ======= ======= ======= =============
Appendix Table 2: Mineral Resources Comparison - 31 December 2022 to 31 December 2021
Notes:
1. Mineral Resources include Ore Reserves.
2. All tonnes and grade information have been rounded to reflect relative uncertainty of the estimate, small differences may be present in the totals.
3. Resources are reported above 1.0g/t cut-off for the Syama North.
4. Resources for the SLC at Syama is reported within an MSO shape generated at 1.3g/t and south of the SLC within an MSO shape generated at 1.5g/t.
5. Resources for the Cashew NE, Paysans, Tellem and Porphyry Zone (Splay) are reported above a cut-off of 1.0g/t.
6. Resources for Tabakoroni Open Pit are reported above a cut-off of 1.0g/t and within a US$2,000 optimised shell.
7. Resources for the Tabakoroni Underground are reported within an MSO shape generated at 1.75g/t (equivalent to US$2,000).
8. Mako Resources are reported above a cut-off of 0.5g/t and within a US$2,000 optimised shell.
JORC Code, 2012 Edition - Table 1 Report
Syama Gold Mine
Section 1 Sampling Techniques and Data
CRITERIA JORC CODE EXPLANATION COMMENTARY
========================= ================================================================ ==============================================
Sampling techniques * Nature and quality of sampling (e.g. cut channels, T he m ineral res ource esti mate was bas
random chips, or specific specialised industry ed on data c o l lected f rom reverse c i
standard measurement tools appropriate to the rculat
minerals under investigation, such as down hole gamma ion (RC) and diamond core (DD) dr ill
sondes, or handheld XRF instruments, etc.). These holes c o mpleted by Res o lute Mi n i ng
examples should not be taken as limiting the broad Li m ited
meaning of sampling. (2003-2017 ), Randgold Resources Ltd
(1996-2000) and B HP (1987-1996).
Diamond core was sampl ed at 1m inter
* Include reference to measures taken to ensure sample vals and cut in ha l f, to prov ide a
representivity and the appropriate calibration of any 2-4kg sample,
measurement tools or systems used. whi ch was sent to the laboratory for c
rushing, splitt ing and pul ver i sing,
to prov ide
* Aspects of the determination of mineralisation that a 30g charge for ana l y s i s.
are Material to the Public Report. RC samples were col lected on 1m inter
vals v ia a c y c l one by r i ff le spl
it (dr y ),
* In cases where 'industry standard' work has been done or by scoop (wet), to obtain a 2-4kg s a
this would be relatively simple (e.g. 'reverse mple whi ch was sent to the l aboratory
circulation drilling was used to obtain 1 m samples for crushing,
from which 3 kg was pulverised to produce a 30 g s p l itting and pu l ver i s i ng to pr
charge for fire assay'). In other cases, more o v ide a 30g char ge for ana l y s i s.
explanation may be required, such as where there is Resol ute sampl ing and s a mple prepar
coarse gold that has inherent sampling problems. ati on protoc o ls are i ndustry standard
Unusual commodities or mineralisation types (e.g. and are
submarine nodules) may warrant disclosure of detailed deemed appr opr iate by the Competent
information. Person.
The Randgold and BHP diamond core and RC
samples were taken on 1m intervals. Due
to the historical
nature of the data sampling protocols are
not known.
======================= ==================================================================== ==========================================
Drilling techniques * Drill type (e.g. core, reverse circulation, open-hole Drill types used include diamond core of
hammer, rotary air blast, auger, Bangka, sonic, etc.) HQ and NQ sizes.
and details (e.g. core diameter, triple or standard Core is oriented at 3m down hole
tube, depth of diamond tails, face-sampling bit or intervals using a Reflex Act II RD
other type, whether core is oriented and if so, by Orientation Tool and more
what method, etc.). recently using a Reflex north seeking
gyro instrument.
======================= ==================================================================== ==========================================
Drill sample recovery * Method of recording and assessing core and chip Drill core interval recoveries are
sample recoveries and results assessed. measured from core block to core block
using
a tape measure.
* Measures taken to maximise sample recovery and ensure Appropriate measures are taken to
representative nature of the samples. maximise sample recovery and ensure
representative nature
of the samples.
* Whether a relationship exists between sample recovery No apparent relationship between sample
and grade and whether sample bias may have occurred recovery and grade.
due to preferential loss/gain of fine/coarse
material.
======================= ==================================================================== ==========================================
Logging * Whether core and chip samples have been geologically Drill holes were geologically logged by
and geotechnically logged to a level of detail to geologists for colour, grainsize,
support appropriate Mineral Resource estimation, lithology, minerals,
mining studies and metallurgical studies. alteration and weathering on geologically
domained intervals.
Geotechnical and structure orientation
* Whether logging is qualitative or quantitative in data was measured and logged for all
nature. diamond core intervals.
Diamond core was photographed (wet and
dry).
* Core (or costean, channel, etc.) photography. Holes were logged in their entirety
(100%) and this logging was considered
reliable and appropriate.
* The total length and percentage of the relevant
intersections logged.
======================= ==================================================================== ==========================================
CRITERIA JORC CODE EXPLANATION COMMENTARY
====================== ================================================================== ========================
Sub-sampling techniques * If core, whether cut or sawn and whether quarter, Diamond core has been
and half or all core taken. sampled at 1m
sample preparation intervals and cut in
half to obtain a
* If non-core, whether riffled, tube sampled, rotary 2-4kg sample.
split, etc. and whether sampled wet or dry. Reverse circulation
samples were
collected on 1m
* For all sample types, the nature, quality and intervals by riffle
appropriateness of the sample preparation technique. split (dry) or by
scoop
(wet) to obtain a
* Quality control procedures adopted for all 2-4kg sample.
sub-sampling stages to maximise representivity of Sample preparation
samples. for diamond core and
RC samples includes
oven drying, crushing
* Measures taken to ensure that the sampling is to 10mm
representative of the in-situ material collected, and splitting,
including for instance results for field pulverising to 85%
duplicate/second-half sampling. passing -75um. These
preparation
techniques are deemed
* Whether sample sizes are appropriate to the grain to
size of the material being sampled. be appropriate to the
material and element
being sampled.
Drill core coarse
duplicates were split
by the laboratory
after crushing at a
rate of 1:20
samples. Reverse
circulation field
duplicates were
collected by the
company at a rate of
1:20
samples.
Resolute sampling,
sample preparation
and quality control
protocols are of
industry standard
and all attempts were
made to ensure an
unbiased
representative sample
was collected. The
methods applied in
this process were
deemed appropriate by
the Competent Person.
Sub-sampling
techniques and sample
preparation completed
by previous owners is
not known.
======================== ================================================================ ======================
Quality of assay data * The nature, quality and appropriateness of the All Resolute samples
and laboratory tests assaying and laboratory procedures used and whether were analysed for
the technique is considered partial or total. gold by 30g fire
assay fusion with AAS
instrument
* For geophysical tools, spectrometers, handheld XRF finish. The analysis
instruments, etc., the parameters used in determining was performed by ALS
the analysis including instrument make and model, Bamako or SGS Morila.
reading times, calibrations factors applied and their The analytical method
derivation, etc. was
appropriate for the
style of
* Nature of quality control procedures adopted (e.g. mineralisation.
standards, blanks, duplicates, external laboratory No geophysical tools
checks) and whether acceptable levels of accuracy were used to
(i.e. lack of bias) and precision have been determine elemental
established. concentrations.
Quality control (QC)
procedures included
the use of certified
standards and blanks
(1:20),
non- certified sand
blanks (1:20),
diamond core coarse
duplicates (1:20) and
reverse circulation
field duplicates
(1:20).
Laboratory quality
control data,
including laboratory
standards, blanks,
duplicates, repeats
and grind size
results were also
captured into the
digital database.
Analysis of the QC
sample assay results
indicates that an
acceptable level of
accuracy and
precision has been
achieved.
The assay techniques
used by Randgold and
BHP include fire
assay fusion with AAS
instrument
finish and aqua regia
with AAS. The
majority of the
samples were analysed
at the onsite Syama
laboratory. Due to
the historical nature
of the Randgold and
BHP data the assay
procedures
are not known for all
samples.
======================== ================================================================ ====================== ===
Verification of * The verification of significant intersections by Verification of
sampling and assaying either independent or alternative company personnel. significant intersections
have been completed by
company personnel and the
* The use of twinned holes. competent person.
No drill holes within the
resource area were
* Documentation of primary data, data entry procedures, twinned.
data verification, data storage (physical and Drill holes were logged
electronic) protocols. onto paper templates or
Excel templates with
lookup codes, validated
* Discuss any adjustment to assay data. and then compiled into a
relational SQL 2012
database using DataShed
data management software.
The database has a variety
of verification protocols
which are used to validate
the data entry.
The drill hole database is
backed up daily to the
head office server.
Assay result files were
reported by the laboratory
in PDF and CSV format and
imported directly
into the SQL database
without adjustment or
modification.
Resolute has conducted
extensive reviews, data
validation and data
verification on the
historic
data collected by the
previous owners, Randgold
and BHP.
======================== ================================================================ ===========================
Location of
data points * Accuracy and quality of surveys used to locate drill Collar coordinates were
holes (collar and down-hole surveys), trenches, mine picked up in UTM (WGS84)
workings and other locations used in Mineral Resource by staff surveyors using
estimation. an RTK DGPS with
an expected accuracy of
+/-0.05m; elevations were
* Specification of the grid system used. height above EGM96 geoid.
Down hole surveys were
collected using single
* Quality and adequacy of topographic control. shot and multi shot
magnetic survey tools
including
Reflex EZTrac and EZShot
instruments. A
time-dependent declination
was applied to the
magnetic
readings to determine UTM
azimuth. Diamond drilling
completed in 2017 and 2018
has utilised
a Reflex EZ Gyro downhole
survey instrument to
provide more frequent data
points and reduced
magnetic interference.
Coordinates and azimuth
are reported in UTM WGS84
Zone 29 North in this
release.
Coordinates were
translated to local mine
grid where appropriate.
Local topographic control
is via satellite
photography and drone UAV
Aerial Survey.
======================== ================================================================ ===========================
Data spacing
and distribution * Data spacing for reporting of Exploration Results. The drill hole spacing was
sufficient to demonstrate
geological and grade
* Whether the data spacing and distribution is continuity appropriate
sufficient to establish the degree of geological and for
grade continuity appropriate for the Mineral Resource Mineral Resource
and Ore Reserve estimation procedure(s) and estimation and
classifications applied. classification in
accordance with the 2012
JORC Code.
* Whether sample compositing has been applied. The appropriateness of the
drill spacing was reviewed
by the geological
technical team, both
on site and within the
Resolute group. This was
also reviewed by the
Competent Person.
RC and diamond core
samples were collected on
1m intervals; no sample
compositing is applied
during sampling.
======================== ================================================================ ===========================
Orientation of data in
relation to geological * Whether the orientation of sampling achieves unbiased Holes were drilled
structure sampling of possible structures and the extent to predominantly
which this is known, considering the deposit type. perpendicular to
mineralised domains where
possible.
* If the relationship between the drilling orientation No orientation-based
and the orientation of key mineralised structures is sampling bias has been
considered to have introduced a sampling bias, this identified in the data.
should be assessed and reported if material.
======================== ================================================================ ===========================
Sample security
* The measures taken to ensure sample security. S amples were col lected f
rom the dri ll s ite and
stor ed on s i te.
A ll samples were ind i v
idually bagged and l abe l
led wi th un ique sample
identi f iers
then securely d i spat
ched to the laboratories.
All aspects of sampling
process were supervised
and tracked by SOMISY
personnel.
======================== ================================================================ ===========================
Audits or reviews
* The results of any audits or reviews of sampling External audits of
techniques and data. procedures indicate
protocols are within
industry standards.
======================== ================================================================ ===========================
Section 2 Reporting of Exploration Results
CRITERIA JORC CODE EXPLANATION COMMENTARY
======================================= ================================================================ ======================================
Mineral tenement and land tenure
status * Type, reference name/number, location and ownership Drilling was conducted within the
including agreements or material issues with third Malian Exploitation Concession
parties such as joint ventures, partnerships, Permit PE 93/003 which has
overriding royalties, native title interests, an area of 200.6km(2) .
historical sites, wilderness or national park and Resol ute Mi n i ng L i m ited has
environmental settings. an 80% interest in the S yama
project and the E x p l o
i tati on Per m it P E-93/003, on w
* The security of the tenure held at the time of h i ch it is based, through its Mal
reporting along with any known impediments to ian subs i d iar y,
obtaining a licence to operate in the area. Soc iêtê des M ines de S
yama SA (S OMIS Y ). The Mal i an
Government ho lds a f
ree carr ied 20% interest in S O
MIS Y.
The Permit is held in good
standing. Malian mining law
provides that all mineral resources
are administered by DNGM (Direction
Nationale de la Géologie et
des Mines) or National
Directorate of Geology and Mines
under the Ministry of Mines, Energy
and Hydrology.
===================================== ================================================================== ====================================
Exploration
done by other parties * Acknowledgment and appraisal of exploration by other The Syama deposit was originally
parties. discovered by a regional
geochemical survey undertaken by
the Direction National de
Géologie et des Mines (DNGM)
with assistance from the United
Nations Development Program (UNDP)
in 1985. There had also been a long
history of artisanal
activities on the hill where an
outcropping chert horizon
originally marked the present-day
position of the open pit.
BHP during 1987-1996 sampled pits,
trenches, auger, RC and diamond
drill holes across Syama
prospects.
Randgold Resources Ltd during
1996-2000 sampled pits, trenches,
auger, RAB, RC and diamond
drill holes across Syama prospects.
===================================== ================================================================== ====================================
Geology
* Deposit type, geological setting and style of The Syama Project is found on the
mineralisation. northern margin of the
Achaean-Proterozoic Leo Shield
which
forms the southern half of the West
African Craton. The project area
straddles the boundary
between the Kadiana-Madinani
terrane and the Kadiolo terrane.
The Kadiana-Madinani terrane
is dominated by greywackes and a
narrow belt of interbedded basalt
and argillite. The Kadiolo
terrane comprises polymictic
conglomerate and sandstone that
were sourced from the
Kadiana-Madinani
terrane and deposited in a late- to
syntectonic basin.
Prospects are centred on the NNE
striking, west dipping,
Syama-Bananso Fault Zone and
Birimian
volcano-sedimentary units of the
Syama Formation. The major
commodity being sought is gold.
===================================== ================================================================== ====================================
Drill hole Information
* A summary of all information material to the No new exploration results have
understanding of the exploration results including a been reported in
tabulation of the following information for all this release.
Material drill holes: The listing of the entire drill
hole database used to estimate the
resource was not considered
o easting and northing of the drill hole collar. relevant for this release.
o elevation or RL (Reduced Level - elevation above sea level
in metres) of the drill hole
collar.
o dip and azimuth of the hole.
o down hole length and interception depth.
o Whole 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 Exploration Results, weighting averaging No new exploration results have
techniques, maximum and/or minimum grade truncations been reported in
(e.g. cutting of high grades) and cut-off grades are this release.
usually Material and should be stated. Metal equivalent values are not
used in reporting.
* 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 mineralisation
widths and intercept lengths * These relationships are particularly important in the The mineralisation is steeply
reporting of Exploration Results. dipping at approximately 60(0) from
the horizontal.
Most of the drill holes are planned
* If the geometry of the mineralisation with respect to at local grid 090(0) at a general
the drill hole angle is known, its nature should be inclination of --60(0)
reported. east to achieve as close to
perpendicular to the ore zone as
possible.
* If it is not known and only the down hole lengths are At the angle of the drill holes and
reported, there should be a clear statement to this the dip of the ore zones, the
effect (e.g. 'down hole length, true width not reported intercepts will
known'). be slightly more than true width.
===================================== ================================================================== ====================================
Diagrams
* Appropriate maps and sections (with scales) and Relevant maps, diagrams and
tabulations of intercepts should be included for any tabulations are included in the
significant discovery being reported. These should body of text.
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
===================================== ================================================================== ====================================
Balanced reporting
* Where comprehensive reporting of all Exploration Mineral Resources are being
Results is not practicable, representative reporting reported in this announcement.
of both low and high grades and/or widths should be No new exploration results have
practiced to avoid misleading reporting of been reported in this release.
Exploration Results.
===================================== ================================================================== ====================================
Other substantive exploration data
* Other exploration data, if meaningful and material, No geophysical and geochemical data
should be reported including (but not limited to): and any additional exploration
geological observations; geophysical survey results; information has been reported
geochemical survey results; bulk samples - size and in this release, as they are not
method of treatment; metallurgical test results; bulk deemed relevant to the release.
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
===================================== ================================================================== ====================================
Further work
* The nature and scale of planned further work (e.g. Depth extension drilling is planned
tests for lateral extensions or depth extensions or to test the down-dip potential of
large-scale step-out drilling). the Syama ore body
at depth, and beneath the current
limit of drilling.
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
===================================== ================================================================== ====================================
Sec t ion 3 Es tim a tion and Reporting of M ineral Re sourc es
CRITERIA
JORC CODE E XP L A N A T I ON CO M M ENT ARY
================= ================================================================ =======================================================
Database
integrity * Measures taken to ensure that data has not been Data has been compiled into a
corrupted by, for ex amp le, t ranscr ipti on or relational SQL database; the setup
keying errors, between its ini t i al c o llec t ion of this database precludes the
and its use for Mi neral Resource esti mati on pur loading of data which does not
poses. meet the required validation protocols.
The data is managed using DataShed(c)
drill hole management software
* Data v a l idat ion procedures used. using SQL database techniques.
Validation checks are conducted
using SQL and DataShed(c) relational
database standards. Data has also
been checked against original
hard copies for 100% of the data,
and where possible, loaded from
original data sources.
Resolute completed the following
basic validation checks on the
data supplied prior to resource
estimation:
* Drill holes with overlapping sample intervals.
* Sample intervals with no assay data. Duplicate
records.
* Assay grade ranges.
* Collar coordinate ranges.
* Valid hole orientation data.
There are no significant issues
identified with the data.
=============== ================================================================ ===========================================================
Site visits
* Comment on any s ite v i s its under taken by the The Competent Person visited
Competent Person and the outcome of those v i s its. site in November, 2022.
A l l aspects of dr i l li ng,
sampli ng and m ining are c ons
* If no s ite v i s its have been undertak en indicate ide red by the Competent Per son
why this is the case. to be of a high standard.
=============== ================================================================ ===========================================================
Geological
interpretation * Conf idence in (or conversely, the uncertainty of) T he digital database us ed for
the geo log i cal interpretation of the m i neral the interpretation inc luded l
depos it. ogged inter v a ls for the k ey
stratigraphic z ones of S y a
ma. Detai led geo log i c al logs
* Nature of the data used and of any assumptions made. were a v a i lable in hardcopy
and di g ital and r e v i e w
ed w here necessar y.
* T he effect, if any, of a lternati ve interpr etat Dr ill dens i ty ( 50m by 50m)
ions on Mi neral Resource esti mati on. for the major i ty of the S yama
ar ea a l l o ws for conf ident
interpretation of the geol ogy
* T he use of geo logy in guiding and control l ing Mi and m ineral ised domains. More
neral Resource es t imat i on. recent grade control (gc) dri
l l ing (at 25m by 25m spacing)
conf i r ms the pos itions of
* T he factors affecting c onti nuity both of gr ade m ineral i sed z ones. G eol ogi
and geo logy. c al and structural c ontrols
support modelled m ineral i sed
zones, w h i ch are constrained
with in geol ogi c al units.
Cont inu i ty of m ineral i sat
i on is affected by prox i m i
ty to structur al c ondu its (
a l l owing f l ow of m inerali
sed f luids), stratigr aphic pos
i t i on, l itho l ogy of key
strat igr aphic un its and poros
i ty of host li tholog ies.
Wireframes used to constrain the
estimation for Syama South and
Nafolo are based on drill hole
intercepts and geological boundaries.
All wireframes at Syama South
and Nafolo have been constructed
to a 1g/t Au cut-off grade for
shape consistency.
The incorporation of an independent
structural model (Steve King,
2019) gives limited options for
large scale alternate interpretations.
=============== ================================================================ ===========================================================
Dimensions
* T he extent and variab i l ity of the Mi neral T he S yama area extends for
Resource expressed as length ( a long str i ke or approx i mately 1,500 metres in
otherwi se), plan width, and depth be l ow sur face str i ke and the west di ppi ng
to the upper and lower l imits of the Mi neral gold m inerali sed zone is between
Resource. 100-200 metres in hori z ontal
width, narr owi ng at its southern
and northern li m its. The Miner
al Resource is l i m ited in depth
by dr i l l ing, whi ch ex tends
f rom sur face to a max i m um
depth of app rox i mately 800
metres vertical l y.
=============== ================================================================ ===========================================================
Estimation Estimation was completed in Datamine
and modelling * T he nature and appropriateness of the es t imat i on Studio RM using Categorical Indicator
techniques technique(s) appl i ed and key assumpt ions, includ (CI) approach to define the mineralised
ing treatment of extr eme grade values, domaining, blocks followed by an Ordinary
inter polation parameters and maximum d i stance of Kriged (OK) model to estimate
extrapolat ion from data po ints. If a c omputer ass the gold grade. Grades were estimated
i sted estimati on method was cho sen inc lude a into parent block of 5mE by 12.5mN
descr ipt ion of computer software and parameters by 5mRL for Syama underground
used. and 10mE by 25 mN by 10mRl for
Syama South and Nafolo. Sub- celling
down to 5mE by 12.5mN by 5mRL
* T he av a i labi l ity of check es t imates, previous was employed for resolution of
estimates and/or mine pr oduction records and whether the mineralisation boundary at
the Miner al Resou rce estimate takes appr opr iate Nafolo.
account of such data. The categorical model used a cut-off
of 1 g/t gold once the mineralised
blocks have been identified another
* T he assumptions made r egardi ng recovery of by- categorical model within this
products. mineralisation is carried out
at a cut-off of 2 g/t to identify
higher grade zones. A 5mE by 12.5mN
* E s ti mation of del eterious e lements or other by 5mRL block size was employed
non-grade var iab les of economic sign ifi cance during the categorical process
(e.g. s u lphur for ac id m i ne dr a inage c harac used to delineate mineralised
teri zation). regions.
After this process, the model
was reblocked up to 5mE by 25mN
* In the case of block model interpo lat i on, the b by 10mRL for Nafolo while retaining
lock si ze in r e lat ion to the average samp le s the smaller size blocks as subcells
pac ing and the search emp loy ed. at mineralisation boundaries.
The resource model included estimates
for sulphide sulphur and organic
* In the case of block model interpolation, the block carbon which assist with metallurgical
size in relation to the average sample spacing and characterisation. The sulphide
the search employed. sulphur is estimated via a categorical
indicator approach with a cut-off
grade of 1% to identify the higher
* A ny assumptions behind mode l l ing of s e lecti ve grade blocks and then an OK estimation
mining units. was carried out within these blocks.
Organic carbon was just estimated
without boundaries into the block
* A ny assumptions about cor relat ion between var i model. There are reduced assays
ables. at depth of these two elements
so there is some smoothing at
depth.
* Descr iption of how the geologi c al interpr etat ion Kriging neighbourhood analysis
was used to contr ol the resour ce estimates. was performed to optimise the
block size, sample numbers and
discretisation levels with the
* Di scuss ion of bas is for usi ng or not using grade goal of minimising conditional
cutti ng or capping. bias in the gold grade estimates.
A larger blocks size for Nafolo
and Syama South was chosen based
* T he process of v a l idat i on, the check i ng on this analysis than was employed
process us ed, the compar i s on of model data to dri in the previous resource estimate
ll ho le data, and use of rec onc i l iat i on data and the wider drill spacing.
if avai lab le. A total of three search passes
was used, with the first search
pass set to the range of the variogram
for each element. A minimum of
10 and a maximum of 30 samples
were used. The search stayed the
same for the second pass but was
increased by a factor of 2 for
the third and final pass. The
minimum number of samples was
reduced to 8 for the second pass
and 6 for the third pass.
Semi-soft boundaries were used
between the higher grade and lower
grade domains and between the
lower grade domain and the waste
domain for Syama Main. Two samples
either side of the mineralisation
boundary were used in the OK estimation.
Hard boundaries were utilised
for the domains at Nafolo, Syama
South and all of the domains for
sulphide sulphur.
Un-estimated blocks (less than
1% for gold) were assigned the
domain average grades. No deleterious
elements were found in the ore.
No selective mining units have
been assumed.
No assumptions have been made
regarding the correlation of variables
although it is noted that a broad
positive correlation exists between
gold and sulphur.
Estimation searches have been
orientated to respect the orientation
of the Syama Formation which hosts
the mineralisation.
Top cuts were applied to reduce
the variability of the data and
to remove the outliers.
The estimated block model grades
were visually validated against
the input drillhole data and comparisons
were carried out against the drillhole
data and by northing and elevation
slices. Global comparison between
the input data and the block grades
for each variable is considered
acceptable (+/-10%).
Comparison with the 2020 and 2021
Mineral Resources has been carried
out.
=============== ================================================================ ===========================================================
Moisture
* W hether the tonnages are estimated on a dry bas is A l l tonnages are esti mated
or with natural mo i sture, and the method of deter m on a dry bas i s.
i nation of the moi stu re content.
=============== ================================================================ ===========================================================
Cut-off
parameters * T he bas is of the adopted cut-off grade(s) or qual Mi neral Resources for the main
ity parameters appl ied. part of Syama was reported within
a shape generated using a MSO
(Mineable Shape Optimiser) at
1.3g/t cut-off grade (equivalent
to a US$2,000 gold price) this
was based on the current Sub-Level
Caving (SLC) mining method. The
material south of the main zone
was reported within an MSO shape
generated at 1.5 g/t cut-off grade
(equivalent to a US$2,000 gold
price) as this is planned to be
mined by Open Stoping.
=============== ================================================================ ===========================================================
Mining factors
or assumptions * Assumptions made regarding possible mining methods, The current mining method for
minimum mining dimensions and internal (or, if underground exploitation is SLC.
applicable, external) mining dilution. It is always The resource model extends from
necessary as part of the process of determining 1,250 mRL to 600 mRL. Open pit
reasonable prospects for eventual economic extraction mining methods were used by Resolute
to consider potential mining methods, but the to 1,120 mRL. Material testing
assumptions made regarding mining methods and conducted on samples of underground
parameters when estimating Mineral Resources may not ore confirmed that properties
always be rigorous. Where this is the case, this such as metallurgical factors,
should be reported with an explanation of the basis structural trends and geological
of the mining assumptions made. continuity remain the same as
observed in the fresh rock portion
of the open pit.
This Mineral Resource does not
account for mining recovery.
=============== ================================================================ ===========================================================
Metallurgical
factors * T he bas is for assumptions or pred i cti ons regar d Resol ute has conducted metal
or assumptions i ng meta l lurgi c al amenab i l ity. It is always lur g i cal tes t work on var
necessary as part of the process of determi n i ng iab i l i ty samples taken f r
reasonab le prospects for ev entual ec onom ic om with in the propos ed underground
extracti on to cons ider potential metal lur g i cal ore z one. A tes t work program
methods, but the assumptions regarding metal lurgi c was super vi s ed by consultants
al tr eatment processes and parameters made when Mi neLogix P ty Ltd bas ed on
reporting Mi neral Resources may not always be ana l y t i c al tes t work c
rigorous. Where this is the case, this should be o mpleted at A LS Metal lur gy
repor ted w ith an ex p lanation of the bas is of the Laborator y.
metal lur g i cal assumptions made. T he program inc luded com m inution,
f lotat i on, roas t ing and leaching
assess ments.
T he planned process ing f l o
w s heet i n v o l ves crushing,
m illing, f l otat ion and roasting,
fol l o w ed by CIL rec o very
of the c a lc ine pr oduct. The
S yama sul phi de processing fac
i l i ty has been in operat i
on in its current form s ince
2007.
T he var i ous tes twork programs
did not identi fy any contrasting
metal lurgi c al behav i our f
r om s a mples with in the underground
ore zone and the per for mance
of the underground ore t y p i
cally matches that observed for
open pit ore.
=============== ================================================================ ===========================================================
Environmental
factors * A ss umpt ions made regarding poss ible waste and It is a r equ i rement of Decree
or assumptions process res idue di s posal opti ons. It is always No.03-594/ P -RM of 31 December
necessary as part of the process of determining 2003 of Ma l ian l aw that an
reasonable prospects for e ventual ec onom ic E n vi r onmental and Social I
extraction to cons ider the potent i al env i mpact Study ( Étude d'Impa
ronmental impacts of the m i n ing and p rocess ing ct E n vi r onmental et Soc i
operat ion. While at this stage the dete rminati on al - E IE S) must be undertaken
of potent i al env i ronmental impacts, parti cular to update the potent i al en vi
ly for a green f ields project, may not a lways be r onmental and soc i al i mpacts
well adv anced, the s tatus of ear ly cons i deration of the m ine's redevelopment.
of these potent i al env i ronmental impacts shou ld The EIES for the Syama Gold M
be reported. Where these as pects have not been c ons ine w as approved in Nov e m b
i dered this shou ld be r eported with an expl anat i er 2007 a nd an E nvir o n m e
on of the env i ronmental assumpt ions made. nt P er mit (07- 0054/MEA - SG)
w as issued by the M i nistry
of E nviron m ent a nd Sa nitation
on the 22 Nove m b er 2007. The
Minis t ry of E nvir o n m e nt
c o nduct tim e ly r evie ws of
the Syama Gold Mine to en s u
re that the Company mainta i ns
complia n ce with the EIES guide
l i ne s.
A t S yama there are three k ey
practi ces for di sposal of wastes
and residues namel y, stac k ing
of waste rock f r om open p it
m ining; stor age of tai l i ngs
f r om m ineral processes; and
"tal l -stack di spersion" of
s u lphur d ioxide f rom the roas
t ing of go ld bear i ng conc
entrate. Al l w aste disposal
pr actic es a re in accorda n
ce with the guid e lin es in the
E I ES.
T he Env i ronmental and Soc i
al Impact Study - " Société
des Mi nes de S yama, S yama Gold
Mi ne, Mal i, dated 2007 i ndi
cated there was m ini mal potent
i al for ac id m ine drainage
f rom waste rock due to the el
e v ated carbonate content w h
i ch buffers a potential ac id
generat i on. Resol ute maintains
a p l an for pr ogr e ss ive rehabi
li tation of waste rock landfor
ms as part of ongo ing m ine development
and waste rock du mping.
The landform of tailings impoundments
does not have a net acid generating
potential. The largest volume
is flotation tailings where the
sulphide minerals have already
been removed from the host rock.
Its mineralogy includes carbonates
which further buffer any acid-formation
potential from sulphides that
may also be present.
C y a ni de levels in the leac
hed-cal cine ta i l ings are t
y p i cal ly less than 50 ppm
in the weak ac id di ssoc iab
le for m. Groundwater away f rom
the tai l ing's landform is intercepted
by trenches and s u mp pumps.
Sulphur dioxide is generated from
the roasting of gold concentrate
so that gold can be extracted
and refined. Tall-Stack "dispersion"
of the sulphur dioxide emission
is monitored continuously. Prevailing
weather and dissipation of the
sulphur dioxide is modelled daily
to predict the need to pause the
roasting process to meet the air
quality criteria set out in the
Environmental and Social Impact
Study.
=============== ================================================================ ===========================================================
Bulk density
* Whether assumed or determined. If assumed, the basis Si t e personnel ha ve completed
for the assumptions. If determined, the method used, numerous bulk density comparative
whether wet or dry, the frequency of the measurements, estimates on HQ drill core to
the nature, size and representativeness of the assess variab i l i ty us ing
samples. the A rc h i medes method of dry
weight versus wei ght in water.
This method was used for 96% of
* The bulk density for bulk material must have been the bulk dens i ty mea surements.
measured by methods that adequately account for void O ther tests were completed by
spaces (vugs, porosity, etc), moisture and S GS us i ng the p y cnometer
differences between rock and alteration zones within method.
the deposit. Based on the data c o l lected
the foll owi ng SG esti mates
were appl i ed to the model:
* Syama Formation 2.82
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
* Si k oro For mation 2.75
* Banmbere Conglomerate 2.75
BANMBERE
CONGLOMERATE
SYAMA
FORMATION
SIKORO
FORMATION
================================================================ ===========================================================
Classification
* T he bas is for the c lass i f i cat ion of the Mi The Measured Mineral Resource
neral Resources i nto vary i ng confidence classification is based on good
categories. confidence in the geology and
gold grade continuity with less
than 25m x 25m spaced drillhole
* W hether appr opr iate account has been tak en of all density in the central part of
relevant factors ( i .e. r e lat i ve conf idence in the deposit directly below the
tonnage/grade estimat i ons, rel iab i l ity of input current pit.
data, confi dence in c ontinu ity of geo logy and The Ind i cated Mi neral Resource
metal v a lues, qua lity, quantity and di stri buti classification is based on good
on of the data). conf i dence in the geology and
gold grade cont inu i t y with
less than 75m x 75m spaced dri
* W hether the res u lt appr opriately ref lects the l lho le dens i ty in the c entr
Competent Person 's view of the depos it. al part
of the depos it.
The Inferred Miner al Res ource
c lass i f i cation is app l i
ed to extens ions of m ineral
ised z ones on the margins of
the depos it w here dr i ll spacing
is more than 100m x 100m and the
extents of mineralisation at depth.
The Nafolo orebody to the south
of Syama whi ch is tested by wi
der d r ill spac ing has al so
been class i f ied as Inferred.
The v a l idat ion of the block
model has conf i r med sati s
factory correlat i on of the input
data to the esti mated grades
and repr oducti on of data tr
ends.
The Mineral Resource es t i mate
appropriate ly ref lects the v
i ew of the Competent Persons.
=============== ================================================================ ===========================================================
Audits or
reviews * T he results of any audits or rev iews of Miner al The Miner al Resource has been
Resource es t imates. aud ited interna l ly. There has
been no exter nal rev i ew of
the Mineral Resource esti mate.
=============== ================================================================ ===========================================================
Discussion
of relative * Where appropriate a statement of the relative The relati ve accuracy of the
accuracy/ accuracy and conf i dence l e vel in the Miner al Mi neral Resource esti mate is
confidence Resource es t imate using an approach or procedure ref lected in the reporting of
deemed appr opr i ate by the Competent Person. For Indi cated and Inferred resource
examp le, the app li c ati on of stati sti c al or categories as defined by 2012
geostati sti c al procedures to quant ify the relat i JORC Code guidelines.
ve accuracy of the resource wi thin stated conf The geostatistical techniques
idence l imits, or, if such an appr oach is not applied to the estimate of underground
deemed appropr i ate, a qual itat i ve di scuss ion resources at S yama are deemed
of the fac tors that cou ld affect the r e lat i ve appropriate to the esti mation
accuracy and conf i dence of the esti mate. of Sub Le v el Cav ing (SLC) m
ini ng method and hence app li
cab le for reserve es t i mati
* T he statement should specify whether it rel ates to on.
gl obal or local estimates, and, if local, state the The estimation was compared with
relevant tonnages, wh i ch shou ld be r e levant to the production history at Syama
techni c al and economic eval uation. Documentati on and it is within 15-20% which
should inc lude assumptions made and the procedures is within the limits for the relevant
used. classifications.
* T hese statements of r e lat i ve accuracy and c
onfidence of the estimate should be compared w ith
producti on data, where av a il able.
=============== ================================================================ ===========================================================
Sec t ion 4 Es tim a tion and Reporting of Ore Reserves
CRITERIA JORC CODE E XP L A N A T I ON CO M M ENT ARY
================== ============================================================== ================================================
Mineral
Resource * Description of the Mineral Resource estimate used as The Syama 1122 Mineral Resource
estimate a basis for the conversion to an Ore Reserve. is the basis for the estimation
for conversion of Syama Ore Reserves.
to Ore Reserves The Mineral Resources are reported
* Clear statement as to whether the Mineral Resources inclusive of Ore Reserves.
are reported additional to, or inclusive of, the Ore
Reserve.
================ ================================================================== ================================================
Site visits
* Comment on any site visits undertaken by the The Competent Person, Mr. Gito
Competent Person and the outcome of those visits. Patani, is a full-time employee
of Resolute Mining Ltd and a Member
of the Australasian Institute
* If no site visits have been undertaken indicate why of Mining and Metallurgy. He recently
this is the case. started with the company and conducted
a site visit to the project area
in January 2022. Travel to site
was restricted during the 2021
due to covid-19 travel restrictions,
but weekly contact with site teams
was maintained throughout the
period.
================ ================================================================== ================================================
Study status
* The type and level of study undertaken to enable Pre-Feasibility and Feasibility
Mineral Resources to be converted to Ore Reserves. studies were previously conducted
for Syama. The Syama UG mine is
a going concern. The Ore Reserves
* The Code requires that a study to at least are derived from LOM plan maintained
Pre-Feasibility Study level has been undertaken to for the ongoing scheduling and
convert Mineral Resources to Ore Reserves. Such management of Syama UG operations.
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 grade(s) or quality The LOM plan for Syama is designed
parameters applied. based on variable shut-off grade
with dilution and recovery estimation
undertaken in cave flow modelling.
The shut-off grade strategy used
for cave flow modelling is based
on COG calculation for various
years from Fy22 financial model.
The COG is estimated using: a
gold price of USD 1,500/oz, a
metallurgical recovery of 78%,
an ad valorem royalty rate of
6%.
================ ================================================================== ================================================
Mining factors
or assumptions * The method and assumptions used as reported in the Most of mining at Syama UG is
Pre-Feasibility or Feasibility Study to convert the planned to be undertaken by Sub-Level
Mineral Resource to an Ore Reserve (i.e. either by Caving (SLC) mining methods. Geotechnical
application of appropriate factors by optimization or studies have concluded that the
by preliminary or detailed design). deposit is amenable to SLC, and
that caving is likely to be induced
at hydraulic radii of between
* The choice, nature and appropriateness of the 12 and 17. Observed progress from
selected mining method(s) and other mining parameters mining to date supports these
including associated design issues such as pre-strip, conclusions.
access, etc. Resolute undertakes a program
of grade control drilling at Syama
UG to progressively upgrade its
* The assumptions made regarding geotechnical geological confidence at Syama
parameters (e.g. pit slopes, stope sizes, etc.), and enable further detailed mine
grade control and pre-production drilling. planning.
The Ore Reserve was estimated
using the block model prepared
* The major assumptions made and Mineral Resource model for estimating the 2021 Mineral
used for pit and stope optimization (if appropriate). Resource.
The Syama LOM plan is prepared
-from the Mineral Resource block
* The mining dilution factors used. model- using mining industry standard
computer aided design and scheduling
software. Initially, production
* The mining recovery factors used. rings are designed to extract
ore. Subsequently, lateral development
and other infrastructure are designed
* Any minimum mining widths used. to access production rings and
enable safe and efficient ore
extraction.
* The manner in which Inferred Mineral Resources are Mining dilution and recovery are
utilized in mining studies and the sensitivity of the estimated for production rings
outcome to their inclusion. using flow modelling software,
PGCA. Dilution and recovery are
inversely related at Syama. In
* The infrastructure requirements of the selected general, the greater the recovery,
mining methods. the higher the level of dilution
that will be experienced. The
Syama LOM planning process balances
recovery against dilution so the
cash-flow is maximized..
With respect to minimum mining
widths, production areas at Syama
are planned to ensure that minimum
hydraulic radius is achieved so
that caving is induced in the
overlying ground.
Inferred Mineral Resources are
not included in the Syama UG mine
planning. All material from Syama
Underground for 2021 OR inventory
is categorised as Probable; comprised
mainly of Indicated material.
All Inferred and Unclassified
material is classified as waste
and not included in ore reserves
The infrastructure necessary to
extract the Syama UG Ore Reserve
is maintained by the company.
================ ================================================================== ================================================
Metallurgical
factors * The metallurgical process proposed and the The Syama deposit is refractory
or assumptions appropriateness of that process to the style of due to locking of gold within
mineralization. the sulphides and variable amounts
of reactive natural carbon which
robs cyanide leach solutions of
* Whether the metallurgical process is well-tested dissolved gold. Resolute has years
technology or novel in nature. of operating data processing Syama
ore and metallurgical testwork
data. Processing of the ore will
* The nature, amount and representativeness of be via the following stages:
metallurgical test work undertaken, the nature of the Crushing and grinding.
metallurgical domaining applied and the corresponding Flotation to produce a sulphide
metallurgical recovery factors applied. rich concentrate.
Concentrate thickening.
Roasting, followed by calcine
* Any assumptions or allowances made for deleterious quench and wash.
elements. CIL.
Tailings disposal.
* The existence of any bulk sample or pilot scale test
work and the degree to which such samples are
considered representative of the ore body 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 potential environmental The Syama Gold Mine operates
impacts of the mining and processing operation. in accordance with its' Environmental
Details of waste rock characterization and the & Social Impact Study - "Société
consideration of potential sites, status of design des Mines de Syama, Syama Gold
options considered and, where applicable, the status Mine, Mali, dated 2007. Waste
of approvals for process residue storage and waste rock characterisation has been
dumps should be reported. included in prior studies for
this Environmental & Social Impact
Study. Work is ongoing to optimise
the mining operation and environmental
management through the following
:
Drilling to investigate rock characteristics
mineralogical assay analysis of
drill core
routine testing of rock material
types for acid generating properties
developing a sequence, rate and
design optimization for open-pit
mine walls, ramps and the waste
rock dump landform to meet the
requirements of rock characteristics.
The outcomes of this work are
part of a continuous improvement
program that contributes to the
waste rock dump management plans,
annual reporting and consultation-committee
meetings with government and community
representatives.
Tailings storage for the life
of mine is forecast to be impounded
over the existing footprint area
approved in the Environmental
& Social Impact Study. Progressive
raising of the tailings impoundments
will occur to contain life-of-mine
storage capacity. Routine progress
on the monitoring is reported
to government and at stakeholder
meetings in concert with routine
inspections by government representatives.
The Syama Project is mature in
its operating life with environmental
management permitted by an Environmental
Authority and supported by an
Environmental Management Plan.
No impediments are anticipated
to the development of the underground
mine
================ ================================================================== ================================================
Infrastructure
* The existence of appropriate infrastructure: The Syama Mine and the underground
availability of land for plant development, power, mine site are located near the
water, transportation (particularly for bulk two major towns of Kadiola and
commodities), labour, accommodation; or the ease with Sikasso. Kadiola, 55km southeast,
which the infrastructure can be provided or accessed. is the regional capital while
Sikasso, approximately 85 km to
the northeast, is the second largest
city in Mali and located close
to the border with Burkina Faso.
Access is via formed gravel road
off the sealed Sikasso to Côte
d'Ivoire highway through Kadiola,
and then from Fourou to site.
Most consumables and supplies
use this route as it can be approached
either from Côte d'Ivoire
through the border post at Zegoua
or alternatively from Burkina
Faso and Togo through Sikasso.
The road north through Bananso
to Farakala, on the main highway
from Bamako to Sikasso, provides
an alternate and shorter route
to Bamako. This road is generally
impassable during the wet season
when the low level "bridge" at
Bananso is covered with water.
Supporting infrastructure for
the current operations has included
upgrading of the 70km section
of road from Kadiola to the site,
refurbishment of administration
buildings, plant site buildings
and accommodation for housing
expatriate and senior national
staff. The underground operations
will also use this infrastructure,
with additional allowance made
in the study for underground specific
infrastructure on surface, such
as primary ventilation fan installations,
additional work shops and offices,
and change rooms for underground
workers.
The site is serviced by two Internet
and mobile telecommunications
providers (Sotelma & Orange),
in addition to a point to point
satellite connection to Perth.
The current operation has a peak
continuous power demand of approximately
22MW with an installed power capacity
of 27MW. Power is currently supplied
from a diesel fired power station.
Supply of power from the national
grid is being considered in the
near future and was incorporated
into the underground study.
================ ================================================================== ================================================
Costs
* The derivation of, or assumptions made, regarding Syama is a going concern with
projected capital costs in the study. established mining, processing
and administration operations
with respect to cost estimates.
* The methodology used to estimate operating costs. As part of ongoing operations,
capital and operating budgets
are prepared from first principles
* Allowances made for the content of deleterious and considering existing contractual
elements. agreements.
Syama produces gold doré
(without problematic deleterious
* The derivation of assumptions made of metal or elements) that is subsequently
commodity price(s), for the principal minerals and refined offsite. Refining costs
co- products. are not material.
Exchange rates used for planning
purposes are from consensus forecasts
* The source of exchange rates used in the study. provided by external corporate
advisers.
Ad valorem Government royalties
* Derivation of transportation charges. of 6% are payable on gold production.
* 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 assumptions made regarding Syama's head grade is estimated
revenue factors including head grade, metal or by mine planning and flow modelling
commodity price(s) exchange rates, transportation and from the Mineral Resource Estimate.
treatment charges, penalties, net smelter returns, All revenue and cost estimates
etc. have been made in USD.
The Ore Reserve is based on a
planning gold price of
* The derivation of assumptions made of metal or US$1,500/oz.
commodity price(s), for the principal metals,
minerals and co-products.
================ ================================================================== ================================================
Market
Assessment * The demand, supply and stock situation for the There is a transparent quoted
particular commodity, consumption trends and factors market for the sale of gold.
likely to affect 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 economic analysis to produce the The economic assessment of the
net present value (NPV) in the study, the source and project demonstrates robust economics.
confidence of these economic inputs including
estimated inflation, discount rate, etc.
* NPV ranges and sensitivity to variations in the
significant assumptions and inputs.
================ ================================================================== ================================================
Social
* The status of agreements with key stakeholders and Resolute assumed management of
matters leading to social license to operate. Société des Mines de
Syama in May 2004. The recently
completed open pit operated under
the 1993 Permit Syama (No.PE-93/003)
and the proposed underground will
do the same.
The selected posts requiring specific
skills or experience will most
likely be filled by expatriates.
In addition to performing their
job function, expatriate personnel
will be expected to transfer knowledge
and expertise to develop their
Malian staff's capabilities. In
the longer term it is anticipated
that Malian nationals will fill
most operating and management
positions within the company.
It is the intention to encourage
economic development within the
local community. Local contracts
therefore, are let wherever possible
and the company works actively
with existing and emerging companies
to achieve this aim.
The Syama Mine Community Consultative
Committee was established in February
2001 with representatives from
local villages, the Malian Government
and SOMISY. Since April 2004 the
Committee has met regularly as
a communication forum and to address
community issues and assist with
community project proposals.
================ ================================================================== ================================================
Other
* To the extent relevant, the impact of the following High seasonal rain fall events
on the project and/or on the estimation and present a risk for the underground
classification of the Ore Reserves: operations.
All current government agreements
and approvals are in good standing
* Any identified material naturally occurring risks. and no anticipated changes are
expected.
* 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 classification of the Ore Reserves All Measured and Indicated Resources
into varying confidence categories. were converted to Probable Reserves,
given the sub-level caving method.
* Whether the result appropriately reflects the
Competent Person's view of the deposit.
* The proportion of Probable Ore Reserves that have
been derived from Measured Mineral Resources (if
any).
================ ================================================================== ================================================
Audits or
reviews * The results of any audits or reviews of Ore Reserve Snowden Mining Industry Consultants
estimates. completed the Syama Underground
Pre-Feasibility study in 2015
and later contributed to detailed
designs incorporated in the Definitive
Feasibility Study. Subsequent
mining studies have been conducted
in conjunction with various industry
experts from external companies
relevant to the areas of study.
No other external audits of Ore
Reserves were undertaken.
================ ================================================================== ================================================
Discussion
of relative * Where appropriate a statement of the relative Treatment costs and recoveries
accuracy/ accuracy and confidence level in the Ore Reserve are based on the actual performance
confidence estimate using an approach or procedure deemed of processing underground ore
appropriate by the Competent Person. For example, the and provide
application of statistical or geostatistical a high level of confidence.
procedures to quantify the relative accuracy of the Resolute has extensive experience
reserve within stated confidence limits, or, if such with a similar underground operation
an approach is not deemed appropriate, a qualitative at the Company's Mt Wright mine
discussion of the factors which could affect the in Australia. This experience
relative accuracy and confidence of the estimate. was combined with industry average
assumptions, where required, to
provide a level of accuracy and
* The statement should specify whether it relates to confidence
global or local estimates, and, if local, state the
relevant tonnages, which should be relevant to that falls within the required
technical and economic evaluation. Documentation standard for a Definitive Feasibility
should include assumptions made and the procedures Study and the subsequent Mining
used. studies.
All the parameters assumed and
adopted including the
* Accuracy and confidence discussions should extend to financial modelling and analysis
specific discussions of any applied Modifying Factors have been subject to internal
that may have a material impact on Ore Reserve peer review.
viability, or for which there are remaining areas of
uncertainty at the current study stage. The Ore Reserve estimate is based
on the Mineral Resource estimate.
Consequently, the Ore Reserve
* It is recognized that this may not be possible or estimate accuracy is dependent
appropriate in all circumstances. These statements of on the Mineral Resource estimate
relative accuracy and confidence of the estimate accuracy.
should be compared with production data, where
available.
================ ================================================================== ================================================
Tabakoroni
Section 1 Sampling Techniques and Data
CRITERIA JORC CODE EXPLANATION COMMENTARY
====================================== ============================================================== =======================================
Sampling
techniques * Nature and quality of sampling (e.g. cut channels, The samples were collected from
random chips, or specific specialised industry reverse circulation (RC) and
standard measurement tools appropriate to the diamond core drill holes.
minerals under investigation, such as down hole gamma RC samples were collected on 1m
sondes, or handheld XRF instruments, etc.). These intervals by riffle split (dry) or
examples should not be taken as limiting the broad by scoop (wet), to obtain
meaning of sampling. a 1-3kg sample which was sent to
the laboratory for crushing,
splitting and pulverising to
* Include reference to measures taken to ensure sample provide a 30g charge for analysis.
representivity and the appropriate calibration of any Diamond core was sampled at 1m
measurement tools or systems used. intervals and cut in half, to
provide a 2-4kg sample,
which was sent to the laboratory
* Aspects of the determination of mineralisation that for crushing, splitting and
are Material to the Public Report. pulverising to provide a 30g
charge for analysis.
Sampling and sample preparation
* In cases where 'industry standard' work has been done protocols are industry standard
this would be relatively simple (e.g. 'reverse and are deemed appropriate
circulation drilling was used to obtain 1 m samples by the Competent Person.
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, reverse circulation, open-hole Drill types used include diamond
hammer, rotary air blast, auger, Bangka, sonic, etc.) core of PQ and HQ sizes
and details (e.g. core diameter, triple or standard and RC.
tube, depth of diamond tails, face-sampling bit or Core is oriented at 3m down hole
other type, whether core is oriented and if so, by intervals using a Reflex Act II RD
what method, etc.). Orientation Tool.
==================================== ================================================================== ===================================
Drill sample recovery
* Method of recording and assessing core and chip Drill core interval recoveries are
sample recoveries and results assessed. measured from core block to core
block using a tape measure.
Appropriate measures are taken to
* Measures taken to maximise sample recovery and ensure maximise sample recovery and
representative nature of the samples. ensure the representative nature
of the samples.
No apparent relationship is noted
* Whether a relationship exists between sample recovery between sample recovery and grade.
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material.
==================================== ================================================================== ===================================
Logging
* Whether core and chip samples have been geologically Drill holes were geologically
and geotechnically logged to a level of detail to logged by geologists for colour,
support appropriate Mineral Resource estimation, grainsize, lithology, minerals,
mining studies and metallurgical studies. alteration and weathering on
geologically-domained intervals.
Geotechnical and structure
* Whether logging is qualitative or quantitative in orientation data was measured and
nature. Core (or costean, channel, etc.) photography. logged for all diamond core
intervals.
Diamond core was photographed (wet
* The total length and percentage of the relevant and dry).
intersections logged. Holes were logged in their
entirety (100%) and this logging
was considered reliable and
appropriate.
==================================== ================================================================== ===================================
Sub-sampling techniques
and sample preparation * If core, whether cut or sawn and whether quarter, Diamond core was sampled at 1m
half or all core taken. intervals and cut in half to
obtain a 2-4kg sample.
Reverse circulation samples were
* If non-core, whether riffled, tube sampled, rotary collected on 1m intervals by
split, etc. and whether sampled wet or dry. riffle split (dry) or by scoop
(wet) to obtain a 1-3kg sample.
Sample preparation for diamond
* For all sample types, the nature, quality and core and RC samples includes oven
appropriateness of the sample preparation technique. drying, crushing to 10mm,
splitting and pulverising to 85%
passing -75um. These preparation
* Quality control procedures adopted for all techniques are deemed to
sub-sampling stages to maximise representivity of be appropriate to the material
samples. being sampled.
Drill core coarse duplicates were
split by the laboratory after
* Measures taken to ensure that the sampling is crushing at a rate of 1:20
representative of the in-situ material collected, samples. Reverse circulation field
including for instance results for field duplicates were collected by the
duplicate/second-half sampling. Company at a rate of 1:20
samples.
Sampling, sample preparation and
* Whether sample sizes are appropriate to the grain quality control protocols are of
size of the material being sampled. industry standard and all
attempts were made to ensure an
unbiased representative sample was
collected. The methods
applied in this process were
deemed appropriate by the
Competent Person.
==================================== ================================================================== ===================================
Quality of assay data and
laboratory tests * The nature, quality and appropriateness of the All samples were dispatched to ALS
assaying and laboratory procedures used and whether Bamako for gold analysis by 30g
the technique is considered partial or total. fire assay fusion with
AAS instrument finish (method code
Au-AA25). Over-range results were
* For geophysical tools, spectrometers, handheld XRF re-analysed and reported
instruments, etc., the parameters used in determining by 30g fire assay fusion with
the analysis including instrument make and model, gravimetric finish (method code
reading times, calibrations factors applied and their Au-GRA21). The analytical method
derivation, etc. was appropriate for the style of
mineralisation.
No geophysical tools were used to
* Nature of quality control procedures adopted (e.g. determine elemental
standards, blanks, duplicates, external laboratory concentrations.
checks) and whether acceptable levels of accuracy Quality control (QC) procedures
(i.e. lack of bias) and precision have been included the use of certified
established. standards (1:40), non-certified
sand blanks (1:40), diamond core
coarse duplicates (1:20) and
reverse circulation field
duplicates
(1:20).
Laboratory quality control data,
including laboratory standards,
blanks, duplicates, repeats,
grind size results and sample
weights were also captured into
the digital database.
Analysis of the QC sample assay
results indicates that an
acceptable level of accuracy and
precision has been achieved.
==================================== ================================================================== ===================================
Verification of sampling
and assaying * The verification of significant intersections by Verification of significant
either independent or alternative company personnel. intersections have been completed
by the Company personnel and
the Competent Person.
* The use of twinned holes. No drill holes within the resource
area were twinned.
Drill holes were logged into
* Documentation of primary data, data entry procedures, digital templates with lookup
data verification, data storage (physical and codes, validated and then compiled
electronic) protocols. into a relational SQL 2012
database using DataShed data
management software. The database
* Discuss any adjustment to assay data. has verification protocols which
are used to validate the data
entry. The drill hole database
is backed up on a daily basis to
the head office server.
Assay result files were reported
by the laboratory in PDF and CSV
format and imported into
the SQL database without
adjustment or modification.
==================================== ================================================================== ===================================
Location of
data points * Accuracy and quality of surveys used to locate drill Collar coordinates were picked up
holes (collar and down-hole surveys), trenches, mine in UTM (WGS84) by staff surveyors
workings and other locations used in Mineral Resource using an RTK DGPS with
estimation. an expected accuracy of +/- 0.05m;
elevations were height above EGM96
geoid.
* Specification of the grid system used. Down hole surveys were collected
at intervals between 5m and 30m
using either a Reflex EZ-Gyro
* Quality and adequacy of topographic control. north seeking instrument or a
Reflex EZ-Trac magnetic instrument
in single shot or multi shot
mode. A time-dependent declination
was applied to the magnetic
readings to determine UTM azimuth.
Coordinates and azimuths are
reported in UTM WGS84 Zone 29
North.
Coordinates were translated to
local mine grid using 1 point and
rotation.
Local topographic control is via
LIDAR surveys, satellite
photography and drone UAV
aerial survey.
==================================== ================================================================== ===================================
Data spacing and distribution
* Data spacing for reporting of Exploration Results. Drill hole spacing was sufficient
to demonstrate geological and
grade continuity appropriate
* Whether the data spacing and distribution is for a Mineral Resource and the
sufficient to establish the degree of geological and classifications applied under the
grade continuity appropriate for the Mineral Resource 2012 JORC Code.
and Ore Reserve estimation procedure(s) and The appropriateness of the drill
classifications applied. spacing was reviewed by the
geological technical team, both
on site and head office. This was
* Whether sample compositing has been applied. also reviewed by the Competent
Person.
Samples were collected on 1m
intervals; no sample compositing
is applied during sampling.
==================================== ================================================================== ===================================
Orientation of data in relation to
geological structure * Whether the orientation of sampling achieves unbiased Holes were drilled predominantly
sampling of possible structures and the extent to perpendicular to mineralised
which this is known, considering the deposit type. domains where possible.
No orientation-based sampling bias
has been identified in
* If the relationship between the drilling orientation the data.
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 ensure sample security. Samples were collected from the drill
site and stored on site. All samples were
individually
bagged and labelled with unique sample
identifiers, then securely dispatched to
the laboratories.
All aspects of sampling and dispatch
process were supervised and tracked by
SOMIFI personnel.
==================================== ================================================================ ==========================================
Audits or reviews
* The results of any audits or reviews of sampling External audits of procedures indicate
techniques and data. protocols are within industry standards.
==================================== ================================================================ ==========================================
Section 2 Reporting of Exploration Results
CRITERIA JORC CODE EXPLANATION COMMENTARY
==================================== ================================================================== ==============================================================
Mineral tenement and land tenure * Type, reference name/number, location and ownership Tabakoroni drilling was completed within the
status including agreements or material issues with third Finkolo-Tabakoroni Exploitation Licence PE 13/19.
parties such as joint ventures, partnerships, Resolute Mining Limited has an 90% interest in Exploitation
overriding royalties, native title interests, Permit PE 13/19, through its Malian
historical sites, wilderness or national park and subsidiary, Sociêtê des Mines de Finkolo SA
environmental settings. (SOMIFI). The Malian Government holds
a free carried 10% interest in SOMIFI.
The Permits are held in good standing. Malian mining law
* The security of the tenure held at the time of provides that all Mineral Resources
reporting along with any known impediments to are administered by DNGM (Direction Nationale de la
obtaining a licence to operate in the area. Géologie et des Mines) or National
Directorate of Geology and Mines under the Ministry of Mines,
Energy and Hydrology.
====================================== ================================================================== ==============================================================
Exploration done by other parties * Acknowledgment and appraisal of exploration by other Etruscan Resources Inc explored Tabakoroni during 2002-2003
parties. by auger, aircore, RC and diamond
drill hole tails. The Tabakoroni area was previously explored
by BHP (1988-1990) and Barrick
Gold (1990) by auger, pits, trenches, RAB and diamond core
drilling.
====================================== ================================================================== ==============================================================
Geology * Deposit type, geological setting and style of The Tabakoroni deposit is hosted in upright tightly folded
mineralisation. greenstone rocks of the Syama
Formation, comprising interbedded basalt and sediment units,
and an overlying complex sequence
of deep marine and turbiditic sediments. The sequence
overlying the basalts contains interbedded
carbonaceous units (silts and shales) that are preferentially
deformed, and which form the
Tabakoroni Main Shear Zone (TMSZ) that lies along the
approximate contact of the greenstone-sediment
sequence. Gold mineralisation occurs within the TMSZ
associated with quartz vein stockworks
and stylolitic quartz reefs.
====================================== ================================================================== ==============================================================
Drill hole Information
* A summary of all information material to the All information, including easting, northing, elevation, dip,
understanding of the exploration results including a azimuth, coordinate system,
tabulation of the following information for all drill hole length, intercept length and depth are measured
Material drill holes: and recorded in UTM Zone 29 WGS84.
The Syama belt is mostly located on the Tengrela 1/200,000
topo sheet (Sheet NC 29-XVIII).
o easting and northing of the drill hole collar The Tabakoroni local grid has been tied to the UTM Zone 29
o elevation or RL (Reduced Level - elevation above sea level WGS84 co-ordinate system.
in metres) of the drill hole Spectrum Survey and Mapping from Australia established survey
collar control at Tabakoroni using
o dip and azimuth of the hole AusPos online processing to obtain an accurate UTM Zone 29
o down hole length and interception depth (WGS84) and 'above geoid' RL for
o Whole length. the origin of the survey control points.
* If the exclusion of this information is justified on Accuracy of the survey measurements is considered to meet
the basis that the information is not Material and acceptable industry standards.
this exclusion does not detract from the Drill hole information has been tabulated for this release in
understanding of the report, the Competent Person the intercepts table of the
should clearly explain why this is the case. accompanying text.
For completeness the following information about the drill
holes is provided:
* Easting, Northing and RL of the drill hole collars
are measured and recorded in UTM Zone 29 (WGS84).
* Dip is the inclination of the drill hole from
horizontal. A drill hole drilled at -60deg is 60deg
from the horizontal.
* Down hole length is the distance down the inclination
of the hole and is measured as the distance from the
horizontal to end of hole.
* Intercept depth is the distance from the start of the
hole down the inclination of the hole to the depth of
interest or assayed interval of interest.
====================================== ================================================================== ==============================================================
Data aggregation methods
* In reporting Exploration Results, weighting averaging No new exploration results have been reported in this
techniques, maximum and/or minimum grade truncations release.
(e.g. cutting of high grades) and cut-off grades are Metal equivalent values are not used in reporting.
usually Material and should be stated.
* 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 mineralisation
widths and intercept lengths * These relationships are particularly important in the The majority of the Tabakoroni mineralisation is vertical.
reporting of Exploration Results. There is one domain which dips
at 45(o) to the west.
The majority of the drill holes are planned at a general
* If the geometry of the mineralisation with respect to inclination of --60 degrees east
the drill hole angle is known, its nature should be and as close to perpendicular to the ore zone as possible.
reported. At the angle of the drill holes and the dip of the ore zones,
the reported intercepts will
be slightly more than true width.
* 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 sections (with scales) and Relevant maps, diagrams and tabulations are included in the body
tabulations of intercepts should be included for any of text.
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 reporting of all Exploration Mineral Resources are being reported in this announcement.
Results is not practicable, representative reporting No new exploration results have been reported in this release.
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
==================================== ================================================================== ================================================================
Other substantive exploration data
* Other exploration data, if meaningful and material, No geophysical and geochemical data or any additional
should be reported including (but not limited to): exploration information has been reported
geological observations; geophysical survey results; in this release,
geochemical survey results; bulk samples - size and as they are not deemed relevant to the release.
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 planned further work (e.g. Depth extension drilling is planned to test the down-dip
tests for lateral extensions or depth extensions or potential of the Tabakoroni ore
large-scale step-out drilling). body at depth, and beneath the current limit of drilling.
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
==================================== ================================================================== ================================================================
Sec t ion 3 Es tim a tion and Reporting of M ineral Re sourc es
CRITERIA JORC CODE E XP L A N A T I ON CO M M ENT ARY
================= ================================================================ =========================================================
Database
integrity * Measures taken to ensure that data has not been Data has been compiled into a
corrupted by, for example, transcription or keying relational SQL database; the setup
errors, between its initial collection and its use of this database precludes the
for Mineral Resource estimation purposes. loading of data which do not meet
the required validation protocols.
The data is managed using DataShed(c)
* Data validation procedures used. drill hole management software
using SQL database techniques.
Validation checks are conducted
using SQL and DataShed(c) relational
database standards. Data has also
been checked against original
hard copies for 100% of the data,
and where possible, loaded from
original data sources.
Resolute completed the following
basic validation checks on the
data supp l ied pri or to resource
esti mation:
* Drill holes with overlapping sample intervals.
* Sample intervals with no assay data or duplicate
records.
* Assay grade ranges.
* Collar coordinate ranges.
* Valid hole orientation data.
There are no significant issues
identified with the data.
=============== ================================================================ =============================================================
Site visits
* Comment on any site visits undertaken by the Mrs Susan Havlin, an employee
Competent Person and the outcome of those visits. of Snowden Optiro Pty Ltd and
a Member of the Australasian Institute
of Mining and Metallurgy is the
* If no site visits have been undertaken indicate why Competent Person who has visited
this is the case. this site in February and October
2019.
All aspects of drilling, sampling
and mining are considered by the
Competent Persons to be of a high
industry standard.
=============== ================================================================ =============================================================
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the The digital database used for
geological interpretation of the mineral deposit. the interpretation included logged
intervals for the key stratigraphic
zones of Tabakoroni. Detailed
* Nature of the data used and of any assumptions made. geological logs were available
in hardcopy and digital and reviewed
where necessary.
* The effect, if any, of alternative interpretations on There is a high level of confidence
Mineral Resource estimation. for the interpretation of the
Tabakoroni Main Shear Zone (TMSZ)
due to the close-spaced grade
* The use of geology in guiding and controlling Mineral control drilling at surface and
Resource estimation. the confirmation of the position
in the current oxide pits. Since
an independent structural model
* The factors affecting continuity both of grade and was created there is high level
geology. of confidence in the geological
interpretation of the minor lodes
adjacent to the TMSZ.
Wireframes used to constrain the
estimation are based on drill
hole intercepts and geological
boundaries. All wireframes at
Tabakoroni have been constructed
to a 1g/t Au cut-off grade for
shape consistency.
The mineralisation in the TMSZ
is generally quite consistent
and drill intercepts clearly define
the shape of the mineralised zones
with limited options for large
scale alternate interpretations.
=============== ================================================================ =============================================================
Dimensions
* The extent and variability of the Mineral Resource The mineral resource at Tabakoroni
expressed as length (along strike or otherwise), plan comprises four individual domains.
width, and depth below surface to the upper and lower The main zone is the TMSZ, which
limits of the Mineral Resource. extends for approximately 1,800
metres along strike; the sub-vertical
dipping gold mineralised zone
width varies between 1.5 and 15
metres, with an average thickness
of 5 metres. The Mineral Resource
is limited in depth by drilling,
which extends from surface to
a maximum depth of approximately
450 metres vertically.
There is a zone parallel to the
TMSZ which is generally at depth
and not as consistent; this is
dominantly in the central part
of the deposit. The northeast
(NE) domain is a zone which is
striking at 20deg and is sub vertical
in the north of the deposit. The
southern lode is shallow westerly-dipping
lodes in the southern and central
portion of the deposit. The whole
of the Tabakoroni deposit, including
domains additional to the TMSZ,
extends for 450 metres in the
horizontal plane.
=============== ================================================================ =============================================================
Estimation
and modelling * The nature and appropriateness of the estimation Estimation was completed in Datamine
techniques technique(s) applied and key assumptions, including Studio RM using an Ordinary Kriged
treatment of extreme grade values, domaining, model to estimate the gold grade.
interpolation parameters and maximum distance of Grades were estimated into parent
extrapolation from data points. If a computer block of 5 mE by 10 mN by 5 mRL
assisted estimation method was chosen include a with sub- celling down to 1mE
description of computer software and parameters used. by 2 mN by 1 mRL was employed
for resolution of the mineralisation
boundaries as defined by wireframes.
* The availability of check estimates, previous The drill spacing at Tabakoroni
estimates and/or mine production records and whether varies from 12.5 by 12.5 metres
the Mineral Resource estimate takes appropriate for grade control to between 25
account of such data. and 50 metres for the exploration
holes.
Drillhole sample data was flagged
* The assumptions made regarding recovery of by- using domain codes generated from
products. three-dimensional mineralisation
domains. The grade control samples
and exploration samples were composited
* Estimation of deleterious elements or other non-grade to 1 metre intervals.
variables of economic significance (e.g. sulphur for Variogram orientations were largely
acid mine drainage characterization). controlled by the strike of the
mineralisation and downhole variography.
Variograms for estimation purposes
* In the case of block model interpolation, the block were determined for each domain.
size in relation to the average sample spacing and Kriging neighbourhood analysis
the search employed. was performed to optimise the
block size, sample numbers and
discretisation levels with the
* In the case of block model interpolation, the block goal of minimising conditional
size in relation to the average sample spacing and bias in the gold grade estimates.
the search employed. Mineralisation domains were treated
as hard boundaries in the estimation
process while oxidation surfaces
* Any assumptions behind modelling of selective mining were treated as soft boundaries
units. for gold, sulphide sulphur and
organic carbon. A hard boundary
was utilised in the estimation
* Any assumptions about correlation between variables. of arsenic between fresh material
and transitional material following
a boundary analysis review.
* Description of how the geological interpretation was Three search passes were used,
used to control the resource estimates. with the first search pass set
to the range of the variogram
for each element. A minimum of
* Discussion of basis for using or not using grade 8 and a maximum of 30 samples
cutting or capping. were used. The search stayed the
same for the second pass but was
increased by a factor of 2 for
* The process of validation, the checking process used, the third and final pass. The
the comparison of model data to drill hole data, and minimum number of samples was
use of reconciliation data if available. reduced to 6 for the second pass
and 4 for the third pass.
No deleterious elements were found
in the ore.
No selective mining units have
been assumed.
Top cuts were applied to reduce
the variability of the data and
to remove the outliers.
The estimated block model grades
were visually validated against
the input drillhole data and comparisons
were carried out against the drillhole
data and by northing and elevation
slices. Global comparison between
the input data and the block grades
for each variable is considered
acceptable (+/-10%).
Comparison with the mine production
to date was carried out and was
within an acceptable limit.
=============== ================================================================ =============================================================
Moisture
* Whether the tonnages are estimated on a dry basis or All tonnages have been estimated
with natural moisture, and the method of on a dry basis.
determination of the moisture content.
=============== ================================================================ =============================================================
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality Mineral Resources for open pit
parameters applied. extraction have been reported
at a 1 g/t Au grade cut-off and
above a US$2000/oz optimised shell.
The Mineral Resources for underground
mining are undiluted and the mineralised
blocks (within the mineralisation
wireframes) have been reported
within MSO wireframes created
at US$2,000/oz which is equivalent
to 1.75 g/t Au cut-off grade.
=============== ================================================================ =============================================================
Mining factors
or assumptions * Assumptions made regarding possible mining methods, A Pre-Feasibility study determined
minimum mining dimensions and internal (or, if the mining method would be by
applicable, external) mining dilution. It is always long hole open stoping. No Mineral
necessary as part of the process of determining Resource margin (external) dilution
reasonable prospects for eventual economic extraction has been modelled. A minimum stope
to consider potential mining methods, but the dip of
assumptions made regarding mining methods and 30 degrees on the footwall was
parameters when estimating Mineral Resources may not applied. More rigorous mining
always be rigorous. Where this is the case, this assumptions and parameters will
should be reported with an explanation of the basis be applied during the conversion
of the mining assumptions made. to Ore Reserves.
=============== ================================================================ =============================================================
Metallurgical
factors or * The basis for assumptions or predictions regarding No metallurgical factors or assumptions
assumptions metallurgical amenability. It is always necessary as have been made during the resource
part of the process of determining reasonable estimation process as these will
prospects for eventual economic extraction to be addressed during the conversion
consider potential metallurgical methods, but the to Ore Reserves.
assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral
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 * Assumptions made regarding possible waste and process It is a requirement of Decree
or assumptions residue disposal options. It is always necessary as No.03-594/P-RM of 31 December
part of the process of determining reasonable 2003 of Malian law that an Environmental
prospects for eventual economic extraction to and Social Impact Study (Étude
consider the potential environmental impacts of the d'Impact Environmental et Social
mining and processing operation. While at this stage - EIES) must be undertaken to
the determination of potential environmental impacts, update the potential environmental
particularly for a green fields project, may not and social impacts of the mine's
always be well advanced, the status of early redevelopment. The EIES for the
consideration of these potential environmental Syama Gold Mine (including Tabakoroni)
impacts should be reported. Where these aspects have was approved in November 2007
not been considered this should be reported with an and an Environment Permit (07-
explanation of the environmental assumptions made. 0054/MEA - SG) was issued by the
Ministry of Environment and Sanitation
on 22 November 2007. The Ministry
of Environment conducts timely
reviews of the Syama Gold Mine
to ensure that Company maintains
compliance with the EIES guidelines.
At Syama and Tabakoroni, there
are three key practices for disposal
of wastes and residues namely,
stacking of waste rock from open
pit mining; storage of tailings
from mineral processes; and "tall-stack
dispersion" of sulphur dioxide
from the roasting of gold bearing
concentrate. All waste disposal
practices are in accordance with
the guidelines in the EIES.
The Environmental and Social Impact
Study - "Société des
Mines de Syama, Syama Gold Mine,
Mali", dated 2007 indicated there
was minimal potential for acid
mine drainage from waste rock
due to the elevated carbonate
content which buffers a potential
acid generation. Resolute maintains
a plan for progressive rehabilitation
of waste rock landforms as part
of ongoing mine development and
waste rock dumping.
The landform of tailings impoundments
does not have a net acid generating
potential. The largest volume
is flotation tailings where the
sulphide minerals have already
been removed from the host rock.
Its mineralogy includes carbonates
which further buffer any acid-formation
potential from sulphides that
may also be present.
Cyanide levels in the leached-calcine
tailings are typically less than
50 ppm in the weak acid dissociable
form. Groundwater away from the
tailings landform is intercepted
by trenches and sump pumps.
Sulphur dioxide is generated
from the roasting of gold concentrate
so that gold can be extracted
and refined. Tall-Stack "dispersion"
of the sulphur dioxide emission
is monitored continuously. Prevailing
weather and dissipation of the
sulphur dioxide is modelled daily
to predict the need to pause the
roasting process to meet the air
quality criteria set out in the
Environmental and Social Impact
Study.
=============== ================================================================ =============================================================
Bulk density
* Whether assumed or determined. If assumed, the basis Site personnel have completed
for the assumptions. If determined, the method used, numerous bulk density comparative
whether wet or dry, the frequency of the measurements, estimates on HQ drill core to
the nature, size and representativeness of the assess variability using the Archimedes
samples. method of dry weight versus weight
in water. This method was used
for 76% of the bulk density measurements.
* The bulk density for bulk material must have been The other 34% is by unknown method.
measured by methods that adequately account for void On the basis of the data collected
spaces (vugs, porosity, etc), moisture and the following SG estimates were
differences between rock and alteration zones within applied to the model by weathering
the deposit. type:
* Oxide 2.12 t/m(3)
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials. * Transitional 2.38 t/m(3)
* Fresh 2.72 t/m(3)
=============== ================================================================ =============================================================
Classification
* The basis for the classification of the Mineral The Measured Mineral Resource
Resources into varying confidence categories. classification is based on good
confidence in the geology and
gold grade continuity with 12.5
* Whether appropriate account has been taken of all m x 12.5 m spaced drillhole density
relevant factors (i.e. relative confidence in in the central part of the deposit.
tonnage/grade estimations, reliability of input data, The Indicated Mineral Resource
confidence in continuity of geology and metal values, classification is based on good
quality, quantity and distribution of the data). confidence in the geology and
gold grade continuity with less
than 50 m x 50 m spaced drillhole
* Whether the result appropriately reflects the density in the central part of
Competent Person's view of the deposit. the deposit.
The Inferred Mineral Resource
classification is applied to extensions
of mineralised zones on the margins
of the deposit where drill spacing
is more than 50 m x 50 m and the
extents of mineralisation at depth.
The validation of the block model
has confirmed satisfactory correlation
of the input data to the estimated
grades and reproduction of data
trends.
The Mineral Resource estimate
appropriately reflects the view
of the Competent Persons.
=============== ================================================================ =============================================================
Audits or
reviews * The results of any audits or reviews of Mineral The Mineral Resource has been
Resource estimates. audited internally and in conjunction
with resource consultants at Snowden
Optiro Pty Ltd as part of the
routine validation process. There
has been an external review of
the Mineral Resource estimation
completed by Cube Consulting Pty
Ltd in February 2022.
=============== ================================================================ =============================================================
Discussion
of relative * Where appropriate a statement of the relative The relative accuracy of the
accuracy/ accuracy and confidence level in the Mineral Resource Mineral Resource estimate is reflected
confidence estimate using an approach or procedure deemed in the reporting of Measured,
appropriate by the Competent Person. For example, the Indicated and Inferred resource
application of statistical or geostatistical categories as defined by 2012
procedures to quantify the relative accuracy of the JORC Code guidelines.
resource within stated confidence limits, or, if such The estimate is considered to
an approach is not deemed appropriate, a qualitative be relevant to an annual level
discussion of the factors that could affect the of reporting of tonnage and grade.
relative accuracy and confidence of the estimate. The estimation was compared with
the production history at Tabakoroni
and it is within 15%, which is
* The statement should specify whether it relates to within the limits for the relevant
global or local estimates, and, if local, state the classifications.
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.
=============== ================================================================ =============================================================
Sec t ion 4 Es tim a tion and Reporting of Ore Re serves
CRITERIA JORC CODE E XP L A N A T I ON CO M M ENT ARY
=================== ================================================================ ===============================================================
Mineral
Resource * Description of the Mineral Resource estimate used as The Ore Reserves are based on
estimate a basis for the conversion to an Ore Reserve. the Mineral Resource estimate
for conversion detailed in the ASX release dated
to December 2021, prepared by Optiro
Ore Reserves * Clear statement as to whether the Mineral Resources Pty Ltd. The resource was reported
are reported additional to, or inclusive of, the Ore above a 1.75 g/t gold grade cut-off,
Reserve. based on an equivalent gold price
of US$2,000/oz and an underground
mining method utilising long hole
stoping mining methods with paste
fill. Material below this cut-off
is not included in the Mineral
Resource.
Ore Reserves are the material
reported as a sub-set of the resource,
that which can be extracted from
the mine and processed with an
economically acceptable outcome.
The resource is depleted for open
pit material already mined and
future cut back planned for Taba
North.
Mineral Resources are reported
inclusive of Ore Reserves.
================= ================================================================ ===================================================================
Site visits
* Comment on any site visits undertaken by the The Competent Person, Mr Gito
Competent Person and the outcome of those visits. Patani, is a full-time employee
of Resolute Mining Ltd and a Member
of the Australasian Institute
* If no site visits have been undertaken indicate why of Mining and Metallurgy. He conducted
this is the case. a site visit to the project area
in January 2022. Travel to site
was restricted during the 2021
due to covid-19 travel restrictions,
but weekly contact with site teams
was maintained throughout the
period.
The site visit reviewed the project
site and proposed portal location
in the mined out Namakan Pit western
wall, a review of current operations
at both Syama and Tabakoroni,
existing open pit infrastructure
available for immediate underground
use, a review of selected drill
core and various meetings were
held with site personnel and key
stakeholders to the study. A pit
wall failure was noticed in the
eastern wall of the Namakan pit.
This failure was monitored since
then through the past wet season
and have stabilised at its natural
angle of repose and does not pose
further material risk to the proposed
underground portal location.
================= ================================================================ ===================================================================
Study status
* The type and level of study undertaken to enable A Pre-Feasibility Study was completed
Mineral Resources to be converted to Ore Reserves. on Tabakoroni Underground in late
2020.
Tabakoroni open pit has been in
* The Code requires that a study to at least continuous mining operation since
Pre-Feasibility Study level has been undertaken to August 2018. During this time
convert Mineral Resources to Ore Reserves. Such the performance of the open pit
studies will have been carried out and will have has shown a positive reconciliation
determined a mine plan that is technically achievable between mineral resources and
and economically viable, and that material Modifying gold production and delivered
Factors have been considered. positive cashflows. Data from
the current open pit operations
which also applies to the intended
underground operation, such as
existing infrastructure and ore
haulage cost, were used as part
of the underground study. The
open pit reconciliation data was
not considered as it relates to
oxide ore only and the underground
will focus on fresh ore only.
No underground operations have
been undertaken at Tabakoroni
yet. However, underground operations
and processing of similar underground
material have been undertaken
for several years at the nearby
Syama Mine where the Tabakoroni
Underground ore will also be processed
under the current toll treatment
agreement, providing actual data
to further support the Tabakoroni
study assumptions.
Primary contributors to the study
were:
* Optiro Pty Ltd - Mineral Resources.
* Solid Geology Pty Ltd - Structural Model.
* AMC Consultants - mining geotechnical study and
portal review.
* Piteau - dewatering.
* Digby Wells - environmental and social impact
assessment.
* Outotec - backfill, concentrate roasting, floatation
plant.
* Osprey - security assessment.
* Practara - economic evaluation.
* ALS - metallurgical variability testing.
* Resolute Mining Ltd - mine design and scheduling,
processing and overall study management.
================= ================================================================ ===================================================================
Cut-off
parameters * The basis of the cut-off grade(s) or quality A marginal cut-off grade (COG)
parameters applied. of 2.5g/t gold has been applied
for Tabakoroni Underground. This
is based on long hole open stoping
with paste fill at a gold price
of U$1,500/oz, metallurgical recovery
of 78%, and includes royalties
of 6%.
Individual underground zones and
levels were further tested to
confirm each area achieves the
required financial returns to
offset the capital investment
required to access that zone or
level. Sub-economical areas were
removed from the reserves.
================= ================================================================ ===================================================================
Mining factors
or assumptions * The method and assumptions used as reported in the The Tabakoroni mineralisation
Pre-Feasibility or Feasibility Study to convert the is mostly steeply dipping, between
Mineral Resource to an Ore Reserve (i.e. either by 80 to 90deg, with an average width
application of appropriate factors by optimization or of 4m to 15m. Some mineralisation
by preliminary or detailed design). is located parallel to, and adjacent
to the main Tabakoroni mineralisation.
These shallower dipping zones
* The choice, nature and appropriateness of the are located predominantly in a
selected mining method(s) and other mining parameters competent basalt zone, ranging
including associated design issues such as pre-strip, in dip between 40deg and 80deg,
access, etc. with an average width of 2m to
10m.
Long hole open stoping is considered
* The assumptions made regarding geotechnical the most suitable mining method
parameters (e.g. pit slopes, stope sizes, etc.), to extract the underground deposit.
grade control and pre-production drilling. Long term support will be providing
by backfilling the stopes with
cemented paste in the main mineralised
* The major assumptions made and Mineral Resource model zone, create by adding binder
used for pit and stope optimization (if appropriate). to a large supply of highly weathered
oxide waste already available
on site from the previous open
* The mining dilution factors used. pit mines. Shallower dipping zones
in the competent basalt zones
will also use open stoping with
* The mining recovery factors used. pillars, where appropriate.
Longitudinal sub-level caving
and open stoping with rock fill
* Any minimum mining widths used. were also reviewed but not considered
appropriate methods. The mineralisation
is too long and narrow to use
* The manner in which Inferred Mineral Resources are sub-level caving and it would
utilized in mining studies and the sensitivity of the result in caving breaking through
outcome to their inclusion. into the current open pit, increasing
inrush risk for the underground.
Paste fill was selected over waste
* The infrastructure requirements of the selected fill as it provides a better cashflow
mining methods. with a top-down mining method,
provides improved stability and
in general there is a lack of
suitable fresh rock to use as
backfill material. It also improves
the extraction of parallel mineralised
zones which was not possible with
open stopes and loose rock fill.
The reported Ore Reserve estimates
for Tabakoroni are based on Deswik.SO
(Mineable Shape Optimiser / MSO)
results, followed by detailed
mine design in Deswik.CAD and
activity-based task and resource
scheduling in Deswik.Sched. Economic
modelling was performed in consultation
with an external financial consultant
experienced in Malian mining economic
modelling.
Stope dilution is considered separately
for hangingwall and footwall conditions
as part of the MSO optimisation.
Equivalent Linear Overbreak Slough
(ELOS) is applied based on geotechnical
domaining, resulting in 0.5m dilution
in competent (basalt) ground to
2.0m in poor, highly structured
zones. The average dilution considered
is 0.5 to 1.0m, applied individually
to both hangingwall and footwall
conditions. A global mine recovery
of 90% was applied.
Minimum Mining Width used was
3.0m, but average stoping widths
range between 4.5m and 10.0m.
Level spacings are selected at
20m vertical, floor to floor.
Stope lengths of 10m to 50m are
recommended based on the geotechnical
modelling and chosen level spacing.
The study conservatively limited
stope lengths to 20m, which will
be further optimised during actual
operations. For the shallower
dipping stopes a minimum footwall
dip of 40deg was selected to ensure
blasted material can be moved
effectively to the drawpoint for
loading during production.
Costs are based on existing contract
mining rates from the nearby Syama
Operation with a contract proposal
provided for the study to account
for potential changes expected
at Tabakoroni, contract haulage
rates to the Syama process plant
from the current Tabakoroni open
pit operation, processing costs
are based on the current Syama
process plant and site costs which
are understood with a high degree
of accuracy from current operations.
Equipment for the underground
were selected considering the
selected mining method, planned
production rate, existing experience
and equipment in operation at
Syama Underground. Loading will
be done by 21t loaders from the
development headings and stopes
and hauled by 63t trucks to surface
via a decline. From surface stockpiles
ore will be hauled to the process
plant at Syama using the current
open pit truck haulage fleet and
waste will dumped directly onto
the existing open pit waste dumps.
The mine plan includes an insignificant
amount of Inferred Resources,
which is not material to the outcome
of the Ore Reserves. Inferred
Resources were considered when
positioning life of mine infrastructure
but does not materially influence
the outcome of the current reserves.
Existing open pit infrastructure
and a dedicated haul road to Syama
is available for immediate use
by the underground operation.
The only additional infrastructure
consists of:
* A power shed to house diesel generators for power
generation. Existing diesel generators will be
relocated from the current Syama operation as part of
their power upgrades and the power shed is just for
weather protection.
* Paste plant for paste fill generation.
* Explosives magazine (open pit operations did minimal
blasting and did not establish an explosive
magazine).
* Underground primary ventilation fans.
* Upgraded security control facilities.
* Minor fit-out to the existing open pit offices and
workshops to comply with underground requirements
(change house, lamp room, etc).
* Float circuit modifications to allow the existing
Syama Oxide plant to process sulphide ore.
================= ================================================================ ===================================================================
Metallurgical
factors * The metallurgical process proposed and the Metallurgical test work was conducted
or assumptions appropriateness of that process to the style of on multiple samples, representative
mineralization. of the spatial and mineralogical
distribution of the deposit. The
tests indicated that, similarly
* Whether the metallurgical process is well-tested to the Syama ore, the Tabakoroni
technology or novel in nature. ore can be double refractory in
nature due to locking of gold
within the sulphides and organic
* The nature, amount and representativeness of carbon. Processing of the ore
metallurgical test work undertaken, the nature of the will be similar to that of the
metallurgical domaining applied and the corresponding Syama sulphide circuit which has
metallurgical recovery factors applied. been in operation for several
years and is well understood,
consisting of the following stages:
* Any assumptions or allowances made for deleterious * Crushing and grinding utilising the existing oxide
elements. process plant infrastructure
* The existence of any bulk sample or pilot scale test * Gravity gold recovery utilising the existing oxide
work and the degree to which such samples are gravity circuit
considered representative of the ore body as a whole.
* Flotation to produce a sulphide rich concentrate
* For minerals that are defined by a specification, has through a new flotation circuit, prior to blending
the ore reserve estimation been based on the with the current Syama concentrate circuit for
appropriate mineralogy to meet the specifications? further:
o Concentrate thickening.
o Roasting, followed by calcine
quench and wash.
o Carbon-in-leach (CIL).
o Tailings disposal.
The oxide crushing and grinding
circuit has an oxide capacity
of 1.5Mtpa, with a modelled sulphide
throughput capacity of up to 1.0Mtpa.
The Syama roaster, CIL circuit
and tailings storage facility
has enough capacity to process
the additional concentrate.
A number of metallurgical test
work programmes have been conducted
on a range of Tabakoroni ore samples
to date. The most recent variability
test programme, conducted as part
of the PFS, focussed on optimising
the flowsheet to then assess the
metallurgical performance of the
various mineralised domains to
be encountered. A total gold recovery
of 83% has been assumed based
on test results to date. This
is in line with similar ore being
processed at Syama.
================= ================================================================ ===================================================================
Environmental
* The status of studies of potential environmental The Tabakoroni mining area and
impacts of the mining and processing operation. haul road to Syama are covered
Details of waste rock characterization and the under current environmental approval
consideration of potential sites, status of design and permitting. An ESIA update
options considered and, where applicable, the status and approval for the changes brought
of approvals for process residue storage and waste about by the new underground operation
dumps should be reported. is currently being conducted by
an experienced local consultant
as per Malian regulations, with
external specialist consulting
input where required. The ESIA
only considers the changes due
to the existing Tabakoroni operation
going underground as the current
open pit operations and processing
at Syama is already covered under
existing approvals (Refer Section
3). A draft ESIA report for the
changes has been submitted for
approval and is pending government
approval. No reasons are known
to the Competent Person why this
approval will not be granted.
An active waste rock characterisation
program has been put in place
for Tabakoroni open pit operation.
Underground waste will be co-disposed
underground with paste fill where
possible, with the remainder being
stored on the current open pit
waste dump under the current waste
rock management protocols to prevent
potentially acid forming waste
rock from contaminating water
sources. The current waste dump
has much more space than is required
by the underground operation.
Ore Reserves from Tabakoroni will
be processed at Syama and tailings
storage will be impounded in existing
footprint area approved in the
current ESIA. Progressive raising
of the tailings occurs regularly
with the 9th lift completed in
2019. Routine progress on the
monitoring is reported to government
and at stakeholder meetings in
concert with routine inspections
by government representatives.
Arsenic is naturally occurring
in the Tabakoroni mineralisation.
A groundwater characterisation
programme was conducted as part
of the ESIA submission and did
not identify any adverse impacts
on water being discharged to the
environment.
================= ================================================================ ===================================================================
Infrastructure
* The existence of appropriate infrastructure: All required mining infrastructure
availability of land for plant development, power, is already in place at the Tabakoroni
water, transportation (particularly for bulk open pit mine and processing and
commodities), labour, accommodation; or the ease with camp facilities at Syama Mine,
which the infrastructure can be provided, or except for the additions required
accessed. specifically for the Tabakoroni
underground, consisting of:
* A power shed to house diesel generators for power
generation. Existing diesel generators will be
relocated from the current Syama operation as part of
their power upgrades.
* Paste plant for paste fill generation.
* Explosives magazine.
* Upgraded security control facilities.
* Minor fit-out to the existing open pit offices and
workshops to comply with underground requirements,
such as change rooms and lamp rooms.
* Float circuit modifications to allow the existing
Syama Oxide plant to process Tabakoroni sulphide ore.
Tabakoroni is linked to the Syama
Mine through a purpose built 35km
haul road. The Syama Mine is located
near the two major towns of Kadiola
and Sikasso. Kadiola, 55km southeast,
is the regional capital while
Sikasso, approximately 85km to
the northeast, is the second largest
city in Mali and located close
to the border with Burkina Faso.
Access is via formed gravel road
off the sealed Sikasso to Côte
d'Ivoire highway through Kadiola,
and then from Fourou to site.
Most consumables and supplies
use this route as it can be approached
either from Côte d'Ivoire
through the border post at Zegoua
or alternatively from Burkina
Faso and Togo through Sikasso.
The road north through Bananso
to Farakala, on the main highway
from Bamako to Sikasso, provides
an alternate and shorter route
to Bamako. This road is generally
impassable during the wet season
when the low level "bridge" at
Bananso is covered with water.
The 70km section of road from
Kadiola to the site was upgraded
for the Syama Mine. In addition
to the current open pit infrastructure
left behind by open pit operations
at Tabakoroni, the Syama Mine
provides access to administration
buildings, plant site buildings
and accommodation for housing
expatriate and senior national
staff.
Tabakoroni site is serviced through
a local telecommunications provider
Orange. Provision is made in the
study to allow have a dedicated
link to Syama Mine, from where
two Internet and mobile telecommunications
providers (Sotelma & Orange) are
available, in addition to a point
to point satellite connection
to Perth.
================= ================================================================ ===================================================================
Costs
* The derivation of, or assumptions made, regarding Cost estimates are based mostly
projected capital costs in the study. on existing operations at Syama
and Tabakoroni, with modifications
where identified in the study.
* The methodology used to estimate operating costs. Current operations, and existing
costs were used for:
* Ore haulage to Syama for processing under the current
* Allowances made for the content of deleterious open pit haulage contract.
elements.
* Owner-operated processing, general and administration
* The derivation of assumptions made of metal or costs are shared between the oxide plant and the
commodity price(s), for the principal minerals and sulphide plant at Syama, which processes the current
co- products. Syama UG orebody. These costs are well understood,
and minor changes were included based on Tabakoroni
specific metallurgical variability test work results.
* The source of exchange rates used in the study.
* Power generation cost utilising the current Syama
* Derivation of transportation charges. diesel generators.
* The basis for forecasting or source of treatment and * Development and production rates are based on the
refining charges, penalties for failure to meet current Syama mining contract schedule of rates, with
specification, etc. updated quotes provided by the contractor as required
for mining method changes expected at Tabakoroni.
* The allowances made for royalties payable, both
Government and private. * Ground support consumables, fuel, explosives, bulk
cement based on current Syama mining contract.
* Mine closure costs (existing open pit component).
* PFS level cost estimates were calculated for:
o Paste fill cost - based on locally
supplied bulk cement prices and
an independent paste fill study
to determine consumption rate.
o Environmental and mine closure
costs specific to underground.
The oxide plant produces gold
doré (without problematic
deleterious elements) that is
subsequently refined offsite.
Refining costs are allowed for
as per current Syama Mine, but
are not material.
Ad valorem Government royalties
of 6% are payable on gold production.
================= ================================================================ ===================================================================
Revenue
factors * The derivation of, or assumptions made regarding A gold price of US$1,500/oz formed
revenue factors including head grade, metal or the basis of the Ore Reserves.
commodity price(s) exchange rates, transportation and Gold price used for planning purposes
treatment charges, penalties, net smelter returns, is from consensus forecasts provided
etc. by external corporate advisers.
No penalties are incurred, nor
is any revenue received from co-products.
* 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 stock situation for the The market for gold is robust
particular commodity, consumption trends and factors with prevailing gold price being
likely to affect supply and demand into the future. well above US$1,500/oz.
Supply and demand are not considered
material to the Ore Reserve calculations.
* 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 economic analysis to produce the The financial evaluation undertaken
net present value (NPV) in the study, the source and as part of the evaluation indicated
confidence of these economic inputs including a positive net present value (NPV)
estimated inflation, discount rate, etc. at a 7% annual discount rate.
The following major economic inputs
were used:
* NPV ranges and sensitivity to variations in the * Costs as previous described.
significant assumptions and inputs.
* Gold price of US$1500/oz.
* Royalties of 6%.
* Effective tax rate of 25% (Corporate tax rate of 30%
with 5% discount provided by the Malian government to
Tabakoroni).
* Discount rate of 7% per annum for real, post-tax cash
flows.
A Statistical PERT sensitivity
(SPERT) analysis was conducted
as part of the PFS. The NPV is
most sensitive to revenue contributors,
i.e. gold grade and gold price.
This is expected as the study
covered all the upfront costs
in establishing the underground
mine, but only considered the
upper Measured and Indicated components
of the Mineral Resource. It is
expected that this sensitivity
will greatly improve once the
large Inferred Resource, open
both along strike and at depth,
has been drilled and confidence
increased to be included in future
Ore Reserves.
================= ================================================================ ===================================================================
Social
* The status of agreements with key stakeholders and Tabakoroni falls under the SOMIFI
matters leading to social license to operate. exploitation permit and is managed
by SOMISY under Management and
Toll Treatment agreements lodged
with the Government of Mali.
It is the intention to encourage
economic development within the
local community. During the operation
of Tabakoroni open pit focus has
been on improving farming and
health care plus providing access
to water; this will continue to
remain a focus.
The Syama Mine Community Consultative
Committee, which includes representation
from Tabakoroni and the villages
adjacent to the Syama Satellites,
was established in February 2001
with representatives from local
villages, the Malian Government
and SOMISY. Since April 2004 the
Committee has met regularly as
a communication forum and to address
community issues and assist with
community project proposals; it
continues to meet on the first
or second Tuesday of each month.
Initial consultation as part of
the underground updates to the
ESIA indicated no major concerns
with the underground operation.
================= ================================================================ ===================================================================
Other
* To the extent relevant, the impact of the following All current government agreements
on the project and/or on the estimation and and approvals are in good standing
classification of the Ore Reserves: and no anticipated changes are
expected. Political instability
is a potential risk in Mali, but
* Any identified material naturally occurring risks. the owner has many years operating
experience in this environment
through the current Syama and
* The status of material legal agreements and marketing Tabakoroni operations. The current
arrangements. Malian government is supportive
of mining operations and the current
Syama and Tabakoroni operations
* The status of governmental agreements and approvals are in good standing with the
critical to the viability of the project, such as authorities. There are no current
mineral tenement status, and government and statutory unresolved matters affecting this
approvals. There must be reasonable grounds to expect project.
that all necessary Government approvals will be It is expected that the updated
received within the timeframes anticipated in the ESIA for moving the Tabakoroni
Pre-Feasibility or Feasibility study. Highlight and operations underground will be
discuss the materiality of any unresolved matter that approved by the Malian government
is dependent on a third party on which extraction of and will not affect the viability
the reserve is contingent. of the project.
================= ================================================================ ===================================================================
Classification
* The basis for the classification of the Ore Reserves Proved and Probable Ore Reserves
into varying confidence categories. were declared based on the Measured
and Indicated Mineral Resources.
The Ore Reserve estimate appropriately
* Whether the result appropriately reflects the reflects the Competent Person's
Competent Person's view of the deposit. view of the deposit.
None of the Measured Mineral Resource
was converted to Proven Ore Reserves.
* The proportion of Probable Ore Reserves that have The Measured Resource component
been derived from Measured Mineral Resources (if is located below the previous
any). open pit and forms part of the
crown pillar to be extracted at
the end of the underground mine
life. Due to the inherent risk
of extracting the crown pillar
at a much later stage in the mine's
life, it is appropriate in the
Competent Person's opinion to
classify this material as Probable
Ore Reserves and not Proved Ore
Reserves.
================= ================================================================ ===================================================================
Audits or
reviews * The results of any audits or reviews of Ore Reserve Major parts of the study were
estimates. completed by external, independent
contributors and were internally
reviewed by each contributor prior
to submission to Resolute. These
inputs were then further reviewed
by Resolute Corporate and Site
operational teams prior to inclusion
in the PFS. The combined PFS and
Ore Reserves output was then internally
reviewed, but no external review
of the combine PFS and Ore Reserves
has been conducted yet.
================= ================================================================ ===================================================================
Discussion
of relative * Where appropriate a statement of the relative The relative accuracy and confidence
accuracy/ accuracy and confidence level in the Ore Reserve of the Ore Reserve estimate is
confidence estimate using an approach or procedure deemed inherent in the Ore Reserve Classification.
appropriate by the Competent Person. For example, the The mine design and schedule were
application of statistical or geostatistical prepared to a PFS level of accuracy.
procedures to quantify the relative accuracy of the Conservative mining modifying
reserve within stated confidence limits, or, if such factors were used to account for
an approach is not deemed appropriate, a qualitative potential variations in ground
discussion of the factors which could affect the and geotechnical conditions.
relative accuracy and confidence of the estimate. The open pit operations had a
slight positive reconciliation,
but this was not considered material
* The statement should specify whether it relates to to the underground project as
global or local estimates, and, if local, state the the open pit operations only focused
relevant tonnages, which should be relevant to on oxide material, and the underground
technical and economic evaluation. Documentation will be focusing on fresh, sulphide
should include assumptions made and the procedures ore. Reconciliation procedures
used. will be implemented as part of
the underground operation and
will be considered in future Ore
* Accuracy and confidence discussions should extend to Reserve updates.
specific discussions of any applied Modifying Factors Costs are at PFS level of confidence
that may have a material impact on Ore Reserve or better due to existing capital
viability, or for which there are remaining areas of infrastructure and open pit operations
uncertainty at the current study stage. at Tabakoroni, and existing underground
operations and processing at Syama,
which will be re-used for the
* It is recognized that this may not be possible or Tabakoroni underground project.
appropriate in all circumstances. These statements of Metallurgical results are in line
relative accuracy and confidence of the estimate with Syama parameters for similar
should be compared with production data, where ore, and are consistent between
available. various test programmes, providing
confidence in the assumptions
used for
the study.
================= ================================================================ ===================================================================
Syama Satellite Deposits - Cashew NE, Paysans, and Tellem
Section 1 Sampling Techniques and Data
CRITERIA JORC CODE EXPLANATION COMMENTARY
====================================== ============================================================== ======================================
Sampling techniques
* Nature and quality of sampling (e.g. cut channels, The samples were collected from
random chips, or specific specialised industry reverse circulation (RC) and diamond
standard measurement tools appropriate to the core drill holes.
minerals under investigation, such as down hole gamma RC samples were collected on 1m
sondes, or handheld XRF instruments, etc.). These intervals by riffle split (dry) or by
examples should not be taken as limiting the broad scoop (wet), to obtain
meaning of sampling. a 1-3kg sample which was sent to the
laboratory for crushing, splitting
and pulverising to
* Include reference to measures taken to ensure sample provide a 30g charge for analysis.
representivity and the appropriate calibration of any Diamond core was sampled at 1m
measurement tools or systems used. intervals and cut in half, to provide
a 2-4kg sample,
which was sent to the laboratory for
* Aspects of the determination of mineralisation that crushing, splitting and pulverising
are Material to the Public Report. to provide a 30g
charge for analysis.
Sampling and sample preparation
* In cases where 'industry standard' work has been done protocols are industry standard and
this would be relatively simple (e.g. 'reverse are deemed appropriate
circulation drilling was used to obtain 1 m samples by the Competent Person.
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, reverse circulation, open-hole Drill types used include diamond core
hammer, rotary air blast, auger, Bangka, sonic, etc.) of PQ and HQ sizes and RC.
and details (e.g. core diameter, triple or standard Core is oriented at 3m down hole
tube, depth of diamond tails, face-sampling bit or intervals using a Reflex Act II RD
other type, whether core is oriented and if so, by Orientation Tool.
what method, etc.).
==================================== ================================================================== ======================================
Drill sample recovery
* Method of recording and assessing core and chip Drill core interval recoveries are
sample recoveries and results assessed. measured from core block to core
block using a tape measure.
Appropriate measures are taken to
* Measures taken to maximise sample recovery and ensure maximise sample recovery and ensure
representative nature of the samples. the representative nature
of the samples.
No apparent relationship is noted
* Whether a relationship exists between sample recovery between sample recovery and grade.
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material.
==================================== ================================================================== ======================================
Logging
* Whether core and chip samples have been geologically Drill holes were geologically logged
and geotechnically logged to a level of detail to by geologists for colour, grainsize,
support appropriate Mineral Resource estimation, lithology, minerals,
mining studies and metallurgical studies. alteration and weathering on
geologically-domained intervals.
Geotechnical and structure
* Whether logging is qualitative or quantitative in orientation data was measured and
nature. Core (or costean, channel, etc.) photography. logged for all diamond core
intervals.
Diamond core was photographed (wet
* The total length and percentage of the relevant and dry).
intersections logged. Holes were logged in their entirety
(100%) and this logging was
considered reliable and appropriate.
==================================== ================================================================== ======================================
Sub-sampling techniques
and sample preparation * If core, whether cut or sawn and whether quarter, Diamond core was sampled at 1m
half or all core taken. intervals and cut in half to obtain a
2-4kg sample.
Reverse circulation samples were
* If non-core, whether riffled, tube sampled, rotary collected on 1m intervals by riffle
split, etc. and whether sampled wet or dry. split (dry) or by scoop
(wet) to obtain a 1-3kg sample.
Sample preparation for diamond core
* For all sample types, the nature, quality and and RC samples includes oven drying,
appropriateness of the sample preparation technique. crushing to 10mm,
splitting and pulverising to 85%
passing -75um. These preparation
* Quality control procedures adopted for all techniques are deemed to
sub-sampling stages to maximise representivity of be appropriate to the material being
samples. sampled.
Drill core coarse duplicates were
split by the laboratory after
* Measures taken to ensure that the sampling is crushing at a rate of 1:20
representative of the in-situ material collected, samples. Reverse circulation field
including for instance results for field duplicates were collected by the
duplicate/second-half sampling. Company at a rate of 1:20
samples.
Sampling, sample preparation and
* Whether sample sizes are appropriate to the grain quality control protocols are of
size of the material being sampled. industry standard and all
attempts were made to ensure an
unbiased representative sample was
collected. The methods
applied in this process were deemed
appropriate by the Competent Person.
==================================== ================================================================== ======================================
Quality of assay data and * The nature, quality and appropriateness of the All samples were dispatched to ALS
laboratory tests assaying and laboratory procedures used and whether Bamako for gold analysis by 30g fire
the technique is considered partial or total. assay fusion with
AAS instrument finish (method code
Au-AA25). Over-range results were
* For geophysical tools, spectrometers, handheld XRF re-analysed and reported
instruments, etc., the parameters used in determining by 30g fire assay fusion with
the analysis including instrument make and model, gravimetric finish (method code
reading times, calibrations factors applied and their Au-GRA21). The analytical method
derivation, etc. was appropriate for the style of
mineralisation.
No geophysical tools were used to
* Nature of quality control procedures adopted (e.g. determine elemental concentrations.
standards, blanks, duplicates, external laboratory Quality control (QC) procedures
checks) and whether acceptable levels of accuracy included the use of certified
(i.e. lack of bias) and precision have been standards (1:40), non-certified
established. sand blanks (1:40), diamond core
coarse duplicates (1:20) and reverse
circulation field duplicates
(1:20).
Laboratory quality control data,
including laboratory standards,
blanks, duplicates, repeats,
grind size results and sample weights
were also captured into the digital
database.
Analysis of the QC sample assay
results indicates that an acceptable
level of accuracy and
precision has been achieved.
==================================== ================================================================== ======================================
Verification of sampling and * The verification of significant intersections by Verification of significant
assaying either independent or alternative company personnel. intersections have been completed by
Company personnel and the
Competent Person.
* The use of twinned holes. No drill holes within the resource
area were twinned.
Drill holes were logged into digital
* Documentation of primary data, data entry procedures, templates with lookup codes,
data verification, data storage (physical and validated and then compiled
electronic) protocols. into a relational SQL 2012 database
using DataShed data management
software. The database
* Discuss any adjustment to assay data. has verification protocols which are
used to validate the data entry. The
drill hole database
is backed up on a daily basis to the
head office server.
Assay result files were reported by
the laboratory in PDF and CSV format
and imported into
the SQL database without adjustment
or modification.
==================================== ================================================================== ======================================
Location of data points * Accuracy and quality of surveys used to locate drill Collar coordinates were picked up in
holes (collar and down-hole surveys), trenches, mine UTM (WGS84) by staff surveyors using
workings and other locations used in Mineral Resource an RTK DGPS with
estimation. an expected accuracy of +/- 0.05m;
elevations were height above EGM96
geoid.
* Specification of the grid system used. Down hole surveys were collected at
intervals between 5m and 30m using
either a Reflex EZ-Gyro
* Quality and adequacy of topographic control. north seeking instrument or a Reflex
EZ-Trac magnetic instrument in single
shot or multi shot
mode. A time-dependent declination
was applied to the magnetic readings
to determine UTM azimuth.
Coordinates and azimuths are reported
in UTM WGS84 Zone 29 North.
Coordinates were translated to local
mine grid using 1 point and rotation.
Local topographic control is via
LIDAR surveys, satellite photography
and drone UAV aerial
survey.
==================================== ================================================================== ======================================
Data spacing and distribution * Data spacing for reporting of Exploration Results. Drill hole spacing was sufficient to
demonstrate geological and grade
continuity appropriate
* Whether the data spacing and distribution is for a Mineral Resource and the
sufficient to establish the degree of geological and classifications applied under the
grade continuity appropriate for the Mineral Resource 2012 JORC Code.
and Ore Reserve estimation procedure(s) and The appropriateness of the drill
classifications applied. spacing was reviewed by the
geological technical team, both
on site and head office. This was
* Whether sample compositing has been applied. also reviewed by the Competent
Person.
Samples were collected on 1m
intervals; no sample compositing is
applied during sampling.
==================================== ================================================================== ======================================
Orientation of data in relation to * Whether the orientation of sampling achieves unbiased Holes were drilled predominantly
geological structure sampling of possible structures and the extent to perpendicular to mineralised domains
which this is known, considering the deposit type. where possible.
No orientation-based sampling bias
has been identified in the data.
* 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 ensure sample security. Samples were collected from the drill
site and stored on site.
All samples were individually bagged
and labelled with unique sample
identifiers, then securely
dispatched to the laboratories. All
aspects of sampling and dispatch
process were supervised
and tracked by SOMIFI personnel.
==================================== ================================================================== ======================================
Audits or reviews * The results of any audits or reviews of sampling External audits of procedures
techniques and data. indicate protocols are within
industry standards.
==================================== ================================================================== ======================================
Section 2 Reporting of Exploration Results
CRITERIA JORC CODE EXPLANATION COMMENTARY
=============================== ================================================================ ====================================================================
Mineral tenement and land * Type, reference name/number, location and ownership Drilling at Syama was conducted within
tenure status including agreements or material issues with third the Malian Exploitation Concession
parties such as joint ventures, partnerships, Permit PE 93/003
overriding royalties, native title interests, which covers an area of 200.6km2.
historical sites, wilderness or national park and Resolute Mining Limited has an 80%
environmental settings. interest in the Syama project and the
Exploitation Permit
PE 93/003, on which it is based,
* The security of the tenure held at the time of through its Malian subsidiary,
reporting along with any known impediments to Sociêtê des Mines
obtaining a licence to operate in the area. de Syama SA (SOMISY). The Malian
Government holds a free carried 20%
interest in SOMISY.
The Permits are held in good standing.
Malian mining law provides that all
Mineral Resources
are administered by DNGM (Direction
Nationale de la Géologie et des
Mines) or National
Directorate of Geology and Mines under
the Ministry of Mines, Energy and
Hydrology.
============================= ==================================================================== =======================================
Exploration done by other * Acknowledgment and appraisal of exploration by other The Syama deposit was originally
parties parties. discovered by a regional geochemical
survey undertaken by
the Direction National de
Géologie et des Mines (DNGM) with
assistance from the United
Nations Development Program (UNDP) in
1985. There had also been a long
history of artisanal
activities on the hill where an
outcropping chert horizon originally
marked the present-day
position of the open pit.
BHP during 1987-1996 sampled pits,
trenches, auger, RC and diamond drill
holes across Syama
prospects. Randgold Resources Ltd
during 1996-2000 sampled pits,
trenches, auger, RAB, RC
and diamond drill holes across Syama
prospects.
Etruscan Resources Inc explored
Tabakoroni during 2002-2003 by auger,
aircore, RC and diamond
drill hole tails. The Tabakoroni area
was previously explored Barrick Gold
(1990) by auger,
pits, trenches, RAB and diamond core
drilling.
============================= ==================================================================== =======================================
Geology * Deposit type, geological setting and style of The Syama Project is found on the
mineralisation. northern margin of the
Achaean-Proterozoic Leo Shield which
forms the southern half of the West
African Craton. The project area
straddles the boundary
between the Kadiana-Madinani terrane
and the Kadiolo terrane. The
Kadiana-Madinani terrane
is dominated by greywackes and a
narrow belt of interbedded basalt and
argillite. The Kadiolo
terrane comprises polymictic
conglomerate and sandstone that were
sourced from the Kadiana-Madinani
terrane and deposited in a late- to
syntectonic basin.
Prospects are centred on the NNE
striking, west dipping, Syama-Bananso
Fault Zone and Birimian
volcano-sedimentary units of the Syama
Formation. The major commodity being
sought is gold.
============================= ==================================================================== ======================================= ===========================
Drill hole Information
* A summary of all information material to the All information, including easting, northing, elevation, dip,
understanding of the exploration results including a azimuth, coordinate system,
tabulation of the following information for all drill hole length, intercept length and depth are measured and
Material drill holes: recorded in UTM Zone 29 WGS84.
The Syama belt is mostly located on the Tengrela 1/200,000 topo
sheet (Sheet NC 29-XVIII).
o easting and northing of the drill hole collar Spectrum Survey & Mapping from Australia established survey
o elevation or RL (Reduced Level - elevation above sea level in control at Tabakoroni using AusPos
metres) of the drill hole online processing to obtain an accurate UTM Zone 29 (WGS84) and
collar 'above geoid' RL for the origin
o dip and azimuth of the hole of the survey control points.
o down hole length and interception depth Accuracy of the survey measurements is considered to meet
o Whole length. acceptable industry standards.
Drill hole information has been tabulated for this release in
the intercepts table of the
* If the exclusion of this information is justified on accompanying text.
the basis that the information is not Material and For completeness the following information about the drill
this exclusion does not detract from the holes is provided:
understanding of the report, the Competent Person * Easting, Northing and RL of the drill hole collars
should clearly explain why this is the case. are measured and recorded in UTM Zone 29 (WGS84).
* Dip is the inclination of the drill hole from
horizontal. A drill hole drilled at -60deg is 60deg
from the horizontal.
* Down hole length is the distance down the inclination
of the hole and is measured as the distance from the
horizontal to end of hole.
* Intercept depth is the distance from the start of the
hole down the inclination of the hole to the depth of
interest or assayed interval of interest.
============================= ====================================================================== ==================================================================
Data aggregation methods * In reporting Exploration Results, weighting averaging Exploration results are tabulated using the following
techniques, maximum and/or minimum grade truncations parameters:
(e.g. cutting of high grades) and cut-off grades are * Grid coordinates are WGS84 Zone 29 North.
usually Material and should be stated.
* Cut-off grade for reporting of intercepts is >=1g/t
* Where aggregate intercepts incorporate short lengths Au.
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 * No top cut of individual assays prior to length
aggregations should be shown in detail. weighted compositing of the reported intercept has
been applied.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated. * Maximum 3m consecutive internal dilution included
within the intercept.
Metal equivalent values are not used in reporting.
============================= ====================================================================== ==================================================================
Relationship between * These relationships are particularly important in the The Cashew NE, and Paysans mineralisation is shallowly dipping at
mineralisation widths and reporting of Exploration Results. about 30 degrees to the
intercept lengths west (local grid).
The majority of the Tellem mineralisation is narrow and sub
* If the geometry of the mineralisation with respect to vertical.
the drill hole angle is known, its nature should be The majority of the drill holes are planned at a general
reported. inclination of --60 degrees east
and as close to perpendicular to the ore zone as possible.
At the angle of the drill holes and the dip of the ore zones, the
* If it is not known and only the down hole lengths are reported intercepts will
reported, there should be a clear statement to this be slightly more than true width.
effect (e.g. 'down hole length, true width not
known').
============================= ====================================================================== ==================================================================
Diagrams * Appropriate maps and sections (with scales) and No exploration results have been
tabulations of intercepts should be included for any reported in this release.
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 reporting of all Exploration Significant intercepts of new drill
Results is not practicable, representative reporting holes have not been reported in this
of both low and high grades and/or widths should be release.
practiced to avoid misleading reporting of
Exploration Results.
============================= ==================================================================== =======================================
Other substantive * Other exploration data, if meaningful and material, No geophysical and geochemical data or
exploration data should be reported including (but not limited to): any additional exploration information
geological observations; geophysical survey results; has been reported
geochemical survey results; bulk samples - size and in this release, as they are not
method of treatment; metallurgical test results; bulk deemed relevant to the release.
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
============================= ==================================================================== =======================================
Further work * The nature and scale of planned further work (e.g. Further drilling is planned.
tests for lateral extensions or depth extensions or
large-scale step-out drilling).
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
============================= ==================================================================== =======================================
Sec t ion 3 Es tim a tion and Reporting of M ineral Re sourc es
CRITERIA JORC CODE E XP L A N CO M M ENT ARY
A T I ON
=============== ========================================================================== ==========================================================
Database
integrity * Measures taken to ensure that data has not been Cashew NE,Paysans and Tellem
corrupted by, for example, transcription or keying Data has been compiled into a
errors, between its initial collection and its use relational SQL database; the setup
for Mineral Resource estimation purposes. of this database precludes the
loading of data which do not meet
the required validation protocols.
* Data validation procedures used. The data is managed using DataShed(c)
drill hole management software
using SQL database techniques.
Validation checks are conducted
using SQL and DataShed(c) relational
database standards. Data has also
been checked against original
hard copies for 100% of the data,
and where possible, loaded from
original data sources.
Resolute completed the following
basic validation checks on the
data supp l ied pri or to resource
esti mation:
* Drill holes with overlapping sample intervals.
* Sample intervals with no assay data or duplicate
records.
* Assay grade ranges.
* Collar coordinate ranges.
* Valid hole orientation data.
There are no significant issues
identified with the data.
================= ========================================================================== ==========================================================
Site visits * Comment on any site visits undertaken by the Cashew NE and Paysans
Competent Person and the outcome of those visits. Mr Bruce Mowat, a full-time employee
of Resolute Mining Ltd and a Member
of the Australasian Institute
* If no site visits have been undertaken indicate why of Mining and Metallurgy is the
this is the case. Competent Person who has visited
this site multiple times.
Tellem
Mr Nicholas Johnson, as employee
of MPR Geological Consultants
Pty Ltd and a Member of the Geological
Institute of Geoscientists is
the Competent Person who has visited
this site on numerous occasions,
the most recent being May 2014
to review the grade control protocols
ad review the Mineral Resource
estimates at Syama.
All aspects of drilling, sampling
and mining are considered by the
Competent Persons to be of a high
industry standard.
================= ========================================================================== ==========================================================
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the Cashew NE and Paysans
geological interpretation of the mineral deposit. The digital database used for
the interpretation included logged
intervals for the key stratigraphic
* Nature of the data used and of any assumptions made. zones of Cashew NE, Paysans and
Tellem. Detailed geological logs
were available in hardcopy and
* The effect, if any, of alternative interpretations on digital and reviewed where necessary.
Mineral Resource estimation. Wireframes used to constrain the
estimation are based on drill
hole intercepts and geological
* The use of geology in guiding and controlling Mineral boundaries. All wireframes at
Resource estimation. Cashew NE and Paysans have been
constructed to a 0.3g/t Au cut-off
grade for shape consistency. At
* The factors affecting continuity both of grade and Tellem they were constructed at
geology. nominal 0.1g/t Au mineralised
envelope.
There is a moderate level of confidence
for the interpretation at Cashew
NE, Paysans, and Tellem due to
the relatively close-spaced drilling
at surface. The mineralisation
is generally quite consistent
and drill intercepts clearly define
the shape of the mineralised zones
with limited options for large
scale alternate interpretations.
================= ========================================================================== ==========================================================
Dimensions
* The extent and variability of the Mineral Resource Cashew NE
expressed as length (along strike or otherwise), plan The mineral resource at Cashew
width, and depth below surface to the upper and lower comprises three individual domains
limits of the Mineral Resource. they all dip at about 30 degrees
to the west (local grid) from
surface and extend 200 metres
down dip. The three domains extend
for approximately 350 metres along
strike and the gold mineralised
zone width varies between 1.5
and 20 metres, with an average
thickness of 7 metres.
Paysans
Three domains have been identified
at Paysans. The three domains
all dip at about 30 degrees to
the west (local grid) and extend
for 300 metres down dip. The mineralised
zone width varies between 1.5
and 10 metres with an average
thickness of 3 metres. They strike
north-south (local grid) for approximately
1,700 metres. The deposit has
been divided into three areas
by two faults which run east-west
(local grid).
Tellem
There are three mineralised domains
at Tellem. The three domains are
narrow sub vertical zone of stockwork
veins modelled to be between a
few metres to 1.5 metres in thickness.
The strike length is approximately
4.3 kilometres and covers a vertal
extent of 270 metres.
================= ========================================================================== ==========================================================
Estimation
and modelling * The nature and appropriateness of the estimation Cashew NE
techniques technique(s) applied and key assumptions, including Estimation was completed in Datamine
treatment of extreme grade values, domaining, Studio RM using an Ordinary Kriged
interpolation parameters and maximum distance of model to estimate the gold, sulphide
extrapolation from data points. If a computer sulphur and organic carbon grades.
assisted estimation method was chosen include a Grades were estimated into parent
description of computer software and parameters used. block of 5mE by 5mN by 2.5mRL
with sub- celling down to 2.5mE
by 2.5mN by 2.5mRL was employed
* The availability of check estimates, previous for resolution of the mineralisation
estimates and/or mine production records and whether boundaries as defined by wireframes.
the Mineral Resource estimate takes appropriate The drill spacing at Cashew is
account of such data. a nominal 25 by 25 metres for
the exploration holes for the
majority of the deposits and 50
* The assumptions made regarding recovery of by- by 50 metres around the periphery.
products. The main part of the deposit has
been gc drilled out to 12.5 by
5 metres.
* Estimation of deleterious elements or other non-grade Drillhole sample data was flagged
variables of economic significance (e.g. sulphur for using domain codes generated from
acid mine drainage characterization). three-dimensional mineralisation
domains. The samples were composited
to 1 metre intervals.
* In the case of block model interpolation, the block Variogram orientations were largely
size in relation to the average sample spacing and controlled by the strike of the
the search employed. mineralisation and downhole variography.
One set of variograms was generated
for all the mineralisation due
* In the case of block model interpolation, the block to similar orientation of each
size in relation to the average sample spacing and of the domains.
the search employed. Kriging neighbourhood analysis
was performed to optimise the
block size, sample numbers and
* Any assumptions behind modelling of selective mining discretisation levels with the
units. goal of minimising conditional
bias in the gold grade estimates.
The mineralisation domains were
* Any assumptions about correlation between variables. treated as hard boundaries in
the estimation process while oxidation
surfaces were treated as soft
* Description of how the geological interpretation was boundaries.
used to control the resource estimates. Three search passes were used,
with the first search pass set
to the range of the variogram
* Discussion of basis for using or not using grade for each domain. A minimum of
cutting or capping. 8 and a maximum of 30 samples
were used. The search stayed the
same for the second pass but was
* The process of validation, the checking process used, increased by a factor of 2 for
the comparison of model data to drill hole data, and the third and final pass. The
use of reconciliation data if available. minimum number of samples was
reduced to six for the second
pass and for the third pass.
No deleterious elements were found
in the ore.
No selective mining units have
been assumed.
Top cuts were applied to reduce
the variability of the data and
to remove the outliers.
The estimated block model grades
were visually validated against
the input drillhole data and comparisons
were carried out against the drillhole
data and by northing and elevation
slices. Global comparison between
the input data and the block grades
for each variable is considered
acceptable (+/-10%)
Paysans
Estimation was completed in Datamine
Studio RM using an Ordinary Kriged
model to estimate the gold grade.
Grades were estimated into parent
block of 10mE by 20mN (at Cashew,
25mN at Paysans) by 5mRL with
sub- celling down to 2.5mE by
2.5mN by 2.5mRL was employed for
resolution of the mineralisation
boundaries as defined by wireframes.
The drill spacing at Paysans is
a nominal 25 by 25 metres for
the exploration holes for the
majority of the deposits and 50
by 50 metres around the periphery.
Drillhole sample data was flagged
using domain codes generated from
three-dimensional mineralisation
domains. The samples were composited
to one metre intervals.
Variogram orientations were largely
controlled by the strike of the
mineralisation and downhole variography.
One set of variograms was generated
for all the mineralisation due
to similar orientation of each
of the domains and sometimes lack
of composites.
Kriging neighbourhood analysis
was performed to optimise the
block size, sample numbers and
discretisation levels with the
goal of minimising conditional
bias in the gold grade estimates.
At Cashew mineralisation domains
were treated as hard boundaries
in the estimation process while
oxidation surfaces were treated
as soft boundaries. At Paysans
the mineralisation domains were
treated as hard boundaries as
well as the boundary
between the transitional and
fresh material within each domain.
The boundary between the oxide
and transitional is treated as
a soft boundary. Three search
passes were used, with the first
search pass set to the range of
the variogram for each domain.
A minimum of eight and a maximum
of 30 samples were used. The search
stayed the same for the second
pass but was increased by a factor
of three for the third and final
pass. The minimum number of samples
was reduced to six for the second
pass and four for the third pass.
No deleterious elements were found
in the ore.
No selective mining units have
been assumed.
Top cuts were applied to reduce
the variability of the data and
to remove the outliers.
The estimated block model grades
were visually validated against
the input drillhole data and comparisons
were carried out against the drillhole
data and by northing and elevation
slices. Global comparison between
the input data and the block grades
for each variable is considered
acceptable (+/-10%).
Tellem
Multiple Indicator Kriging (MIK)
with block support adjustment
to estimate gold resources into
blocks with dimensions of 10mE
by 25mN by 5mRL. MIK of gold grades
used indicator variography based
on the two metre resource composite
sample grades. Gold grade continuity
was characterised by indicator
variograms at 14 indicator thresholds
spanning the global range of grades.
A block support adjustment was
used to estimate the recoverable
gold resources at each deposit.
The shape of the local block gold
grade distribution has been assumed
lognormal and an additional adjustment
for the "Information Effect" has
been applied to arrive at the
final Mineral Resource estimates.
MIK was used as the preferred
method for estimation of gold
resources at Tellem as the approach
has been demonstrated to work
well in a large number of deposits
of diverse geological styles.
The gold mineralisation seen at
the Tellem deposit is typical
of that seen in most structurally
controlled gold deposits where
the MIK method has been found
to be of most benefit.
Data viewing, compositing and
wire-framing were performed using
Micromine software. Exploratory
data analysis, variogram calculation
and modelling, and resource estimation
have been performed using FSSI
Consultant (Australia) Pty Ltd
GS3M software. GS3M is designed
specifically for estimation of
recoverable resources using MIK
methodology.
The sample data set containing
all available assaying were composited
to two metre intervals each located
by their mid-point co-ordinates
and assigned a length weighted
average gold grade. The composite
length of two metres was chosen
because it is a multiple of the
most common sampling interval
(1.0 metre) and is also an appropriate
choice for the kriging of gold
into the model blocks where open
pit mining is undertaken on 2.5
metre benches.
Block dimensions are 10mE by 25mN
by 5mRL and was chosen as it approximates
the average drill hole spacing
in the horizontal direction, with
the 5m elevation being a multiple
of the mining bench height of
2.5m. The interpolation utilised
a 3 pass octant search strategy
with search radii generally in
the order of category 1 searching
15m in the x, 25m in the y and
15m in the z direction, 16 minimum
composites used, a maximum of
four composites per octant and
a minimum of four octants with
data.
Category 2 uses a 50% search
distance increase but otherwise
the same parameters and category
3 uses the same search distance
as category 2 but only requires
eight minimum composites and only
2 octants require data. The search
ellipse on each category is consistently
orientated orthogonal to
modelling grid.
The 2m resource composites were
initially coded by the mineralisation
domain interpretation and the
resultant primary domain coding
further subdivided using the weathering
surfaces to form sub-domains.
Sample composites in each primary
and sub-domain combination were
reviewed for their univariate
and indicator statistics and spatial
continuity and were the basis
of grade modelling.
A combination of outlier high
grade composites being ignored
for each sub-domain for the generation
of the indicator statistics, and
selection of the median instead
of mean for the highest indicator
threshold were used to guard against
a few higher grades within the
population from having a disproportional
influence on the gold estimation.
A block support adjustment was
used to estimate the recoverable
gold resources. The shape of the
local block gold grade distribution
has been assumed lognormal and
an additional adjustment for the
"Information Effect" has been
applied to arrive at the final
Resource estimates. Selective
mining unit assumed to be in the
general range 4mE by 8mN by 2.5mRL.
Visual validation of grade trends
and gold distributions was
carried out.
These is no mine production, so
no comparisons were carried out.
================= ========================================================================== ==========================================================
Moisture
* Whether the tonnages are estimated on a dry basis or Cashew NE, Paysans, and Tellem
with natural moisture, and the method of All tonnages have been estimated
determination of the moisture content. on a dry basis.
================= ========================================================================== ==========================================================
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality Cashew NE, Paysans and Tellem
parameters applied. Mineral Resources for open pit
extraction have been reported
at a 1g/t Au grade cut-off.
================= ========================================================================== ==========================================================
Mining
factors * Assumptions made regarding possible mining methods, Cashew NE, Paysans, and Tellem
or assumptions minimum mining dimensions and internal (or, if The Resource models assume that
applicable, external) mining dilution. It is always a moderate level of mining selectivity
necessary as part of the process of determining is achieved in open pit mining.
reasonable prospects for eventual economic extraction It has been assumed that high
to consider potential mining methods, but the quality grade control will be
assumptions made regarding mining methods and applied to ore/waste delineation
parameters when estimating Mineral Resources may not processes using RC drilling, or
always be rigorous. Where this is the case, this similar, at a nominal (and no
should be reported with an explanation of the basis greater) spacing of 5 metre by
of the mining assumptions made. 12.5 metre and applying a pattern
sufficient to ensure adequate
coverage of the mineralisation
zones.
This is consistent with current
mining practises at Syama.
================= ========================================================================== ==========================================================
Metallurgical
factors * The basis for assumptions or predictions regarding Cashew NE, Paysans, and Tellem
or assumptions metallurgical amenability. It is always necessary as No metallurgical factors or assumptions
part of the process of determining reasonable have been made during the resource
prospects for eventual economic extraction to estimation process as these will
consider potential metallurgical methods, but the be addressed during the conversion
assumptions regarding metallurgical treatment to Ore Reserves.
processes and parameters made when reporting Mineral
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 * Assumptions made regarding possible waste and process Cashew NE, Paysans, and Tellem
or assumptions residue disposal options. It is always necessary as It is a requirement of Decree
part of the process of determining reasonable No.03-594/P-RM of 31 December
prospects for eventual economic extraction to 2003 of Malian law that an Environmental
consider the potential environmental impacts of the and Social Impact Study (Étude
mining and processing operation. While at this stage d'Impact Environmental et Social
the determination of potential environmental impacts, - EIES) must be undertaken to
particularly for a green fields project, may not update the potential environmental
always be well advanced, the status of early and social impacts of the mine's
consideration of these potential environmental redevelopment. The EIES for the
impacts should be reported. Where these aspects have Syama Gold Mine (including Tabakoroni)
not been considered this should be reported with an was approved in November 2007
explanation of the environmental assumptions made. and an Environment Permit (07-
0054/MEA - SG) was issued by the
Ministry of Environment and Sanitation
on 22 November 2007. The Ministry
of Environment conducts timely
reviews of the Syama Gold Mine
to ensure that the Company maintains
compliance with the EIES guidelines.
At Syama, there are three key
practices for disposal of wastes
and residues namely, stacking
of waste rock from open pit mining;
storage of tailings from mineral
processes; and "tall-stack dispersion"
of sulphur dioxide from the roasting
of gold bearing concentrate. All
waste disposal practices are in
accordance with the guidelines
in the EIES.
The Environmental and Social Impact
Study - "Société des
Mines de Syama, Syama Gold Mine,
Mali", dated 2007 indicated there
was minimal potential for acid
mine drainage from waste rock
due to the elevated carbonate
content which buffers a potential
acid generation. Resolute maintains
a plan for progressive rehabilitation
of waste rock landforms as part
of ongoing mine development and
waste rock dumping.
The landform of tailings impoundments
does not have a net acid generating
potential. The largest volume
is flotation tailings where the
sulphide minerals have already
been removed from the host rock.
Its mineralogy includes carbonates
which further buffer any acid-formation
potential from sulphides that
may also be present.
Cyanide levels in the leached-calcine
tailings are typically less than
50ppm in the weak acid dissociable
form. Groundwater away from the
tailings landform is intercepted
by trenches and sump pumps.
Sulphur dioxide is generated from
the roasting of gold concentrate
so that gold can be extracted
and refined. Tall-Stack "dispersion"
of the sulphur dioxide emission
is monitored continuously. Prevailing
weather and dissipation of the
sulphur dioxide is modelled daily
to predict the need to pause the
roasting process to meet the air
quality criteria set out in the
Environmental and Social Impact
Study.
================= ========================================================================== ==========================================================
Bulk density
* Whether assumed or determined. If assumed, the basis Paysans and Tellem
for the assumptions. If determined, the method used, No bulk density measurements
whether wet or dry, the frequency of the measurements, have been taken at Paysans.
the nature, size and representativeness of the An average SG was applied to the
samples. model by weathering type based
on similar deposits at Syama:
a) Oxide 1.80 t/m(3)
* The bulk density for bulk material must have been b) Transitional 2.40 t/m(3)
measured by methods that adequately account for void c) Fresh 2.70 t/m(3)
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within Cashew NE
the deposit. One hole had density measurements
at Cashew. The average density
was adjusted to reflect the density
* Discuss assumptions for bulk density estimates used of this hole. The density was
in the evaluation process of the different materials. assigned based on weathering:
a) Oxide 2.00 t/m(3)
b) Transitional 2.56 t/m(3)
c) Fresh 2.75 t/m(3)
================= ========================================================================== ==========================================================
Classification
* The basis for the classification of the Mineral Cashew NE and Paysans
Resources into varying confidence categories. The Indicated Mineral Resource
classification is based on moderate
confidence in the geology and
* Whether appropriate account has been taken of all gold grade continuity with 25m
relevant factors (i.e. relative confidence in x 25m spaced drillhole density
tonnage/grade estimations, reliability of input data, or less.
confidence in continuity of geology and metal values, The Inferred Mineral Resource
quality, quantity and distribution of the data). classification is applied to extensions
of mineralised zones on the margins
of the deposit where drill spacing
* Whether the result appropriately reflects the is more than 50m x 50m and the
Competent Person's view of the deposit. extents of mineralisation at depth.
The validation of the block model
has confirmed satisfactory correlation
of the input data to the estimated
grades and reproduction of data
trends.
Tellem
The Resource model uses a classification
scheme producing a resource code
based on the number and location
of gold composites used to estimate
proportions and gold grade of
each block. This is based on the
principle that larger numbers
of composites, which are more
evenly distributed within the
search neighbourhood, will provide
a more reliable estimate.
The strategy adopted in the current
study uses category 1 and 2 from
the 3 pass octant search strategy
as Indicated and category 3 as
Inferred. This results in a geologically
sensible classification whereby
Category 1 and 2 are surrounded
by data in close proximity. Category
3 blocks may occur on the peripheries
of drilling but are still related
to drilling data within reasonable
distances.
The Mineral Resource estimates
appropriately reflects the view
of the Competent Persons.
================= ========================================================================== ==========================================================
Audits
or reviews * The results of any audits or reviews of Mineral Cashew NE, Paysans, and Tellem
There has been no external review
of the Mineral Resource estimate.
* Resource estimates.
================= ========================================================================== ==========================================================
Discussion
of relative * Where appropriate a statement of the relative Cashew NE, Paysans, and Tellem
accuracy/ accuracy and confidence level in the Mineral Resource The Mineral Resource estimate
confidence estimate using an approach or procedure deemed has been classified based on the
appropriate by the Competent Person. For example, the quality of the data collected,
application of statistical or geostatistical the density of data, the confidence
procedures to quantify the relative accuracy of the of the geological models and mineralisation
resource within stated confidence limits, or, if such models, and the grade estimation
an approach is not deemed appropriate, a qualitative quality. This has been applied
discussion of the factors that could affect the to a relative confidence based
relative accuracy and confidence of the estimate. on data density and zone confidence
for resource classification. No
relative statistical or geostatistical
* The statement should specify whether it relates to confidence or risk measure has
global or local estimates, and, if local, state the been generated or applied.
relevant tonnages, which should be relevant to The relative accuracy of the Mineral
technical and economic evaluation. Documentation Resource estimate is reflected
should include assumptions made and the procedures in the reporting of Indicated
used. and Inferred resource categories
as defined by 2012 JORC Code guidelines.
The estimate is considered to
* These statements of relative accuracy and confidence be relevant to an annual level
of the estimate should be compared with production of reporting of tonnage and grade.
data, where available. No production data available for
comparison.
================= ========================================================================== ==========================================================
Sec t ion 4 Es tim a tion and Reporting of Ore Re serves
CRITERIA JORC CODE E XP L A N A CO M M ENT ARY
T I ON
================= ==================================================================== ================================================================
Mineral
Resource * Description of the Mineral Resource estimate used as Cashew South, Paysans, Folona
estimate a basis for the conversion to an Ore Reserve. and Tellem
for conversion Resources and Reserves at Cashew
to Ore Reserves South, Paysans, Folona and Tellem
* Clear statement as to whether the Mineral Resources are reported above a 1 g/t cut-off.
are reported additional to, or inclusive of, the Ore This was calculated as a marginal
Reserve. cut-off utilising open pit mining
methods. Material below this cut-off
is not included in the mineral
resource.
Ore Reserves are the material
reported as a sub-set of the resource,
that which can be extracted from
the mine and processed with an
economically acceptable outcome.
Mineral Resources are reported
inclusive of Ore Reserves.
=================== ==================================================================== ================================================================
Site visits Cashew South, Paysans, Folona
* Comment on any site visits undertaken by the and Tellem
Competent Person and the outcome of those visits. Mr Kitwa Ndjibu a member of the
Australasian Institute of Mining
and Metallurgy and is a Competent
* If no site visits have been undertaken indicate why Person who has visited the site
this is the case. the project is in the year 2022
=================== ==================================================================== ================================================================
Study status
* The type and level of study undertaken to enable Cashew South, Paysans, Folona
Mineral Resources to be converted to Ore Reserves. and Tellem
Feasibility studies were completed
for mining of open satellite deposits
* The Code requires that a study to at least in 2009 and mining of satellite
Pre-Feasibility Study level has been undertaken to pits has been occurring since
convert Mineral Resources to Ore Reserves. Such 2014.
studies will have been carried out and will have Further optimisations have been
determined a mine plan that is technically achievable undertaken in 2022 given the change
and economically viable, and that material Modifying in gold price and other inputs
Factors have been considered. such as mining and processing
costs. The above-mentioned optimisations
resulted in new pit designs at
all sites, Cashew South, Paysans,
Folona and Tellem.
=================== ==================================================================== ================================================================
Cut-off
parameters * The basis of the cut-off grade(s) or quality Cashew South, Paysans, Folona
parameters applied. and Tellem
Cashew South, Paysans, Folona
and Tellem. use a cut-off of 0.8
g/t, based on the economic parameters
described in subsequent sections.
=================== ==================================================================== ================================================================
Mining factors
or assumptions * The method and assumptions used as reported in the Cashew South, Paysans, Folona
Pre-Feasibility or Feasibility Study to convert the and Tellem
Mineral Resource to an Ore Reserve (i.e. either by The reported Ore Reserve estimates
application of appropriate factors by optimization or Cashew NE, Tellem and Paysans
by preliminary or detailed design). are based on pit optimisations
conducted using the Lerchs-Grossman
(LG) algorithm utilizing the Whittle
* The choice, nature and appropriateness of the to determine the optimal pit at
selected mining method(s) and other mining parameters specific input parameters and
including associated design issues such as pre-strip, pit designs. Costs are based on
access, etc. existing contract mining and haulage
rates and site costs which are
understood with a high degree
* The assumptions made regarding geotechnical of accuracy.
parameters (e.g. pit slopes, stope sizes, etc.), Mining is planned to be undertaken
grade control and pre-production drilling. by conventional open pit methods
of drill and blast, followed by
load and haul.
* The major assumptions made and Mineral Resource model Detailed pit design work was completed
used for pit and stope optimization (if appropriate). based on pit optimisations using
Whittle Four-X optimisation software.
Only Measured and Indicated Resources
* The mining dilution factors used. were used in the pit optimisation.
Overall slope angles are approximately
40deg based on empirical experience
* The mining recovery factors used. from the mining other similar
satellite pits
Grade control consists of RC drilling,
* Any minimum mining widths used. based on a 5.0mE x 12.5mN drill
pattern
A 5 % dilution factor and 10%
* The manner in which Inferred Mineral Resources are mining loss factors have been
utilized in mining studies and the sensitivity of the applied to all satellite Cashew
outcome to their inclusion. South, Paysans, Folona and Tellem.
Minimum Mining Width used is 15m
* The infrastructure requirements of the selected
mining methods.
=================== ==================================================================== ================================================================
Metallurgical
factors or * The metallurgical process proposed and the Cashew South, Paysans, Folona
assumptions appropriateness of that process to the style of and Tellem
mineralization. Processing is by conventional
primary crushing followed by single
stage SAG milling. Gold recovery
* Whether the metallurgical process is well-tested is by means of a gravity recovery
technology or novel in nature. circuit and carbon in leach process.
Processing recoveries used are
90%, 80% and 65% for Oxide, Transitional
* The nature, amount and representativeness of and Fresh material respectively.
metallurgical test work undertaken, the nature of the Mine is operational with good
metallurgical domaining applied and the corresponding reconciliation between predicted
metallurgical recovery factors applied. recoveries and actuals.
Allowances are made in the recovery
estimates for Transitional and
* Any assumptions or allowances made for deleterious Fresh ore as the Au recovery is
elements. impacted by some of the gold being
hosted in refractory sulphide
and preg-robbing carbon
* The existence of any bulk sample or pilot scale test
work and the degree to which such samples are
considered representative of the ore body 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 potential environmental Cashew South, Paysans, Folona
impacts of the mining and processing operation. and Tellem
Details of waste rock characterization and the An active waste rock characterisation
consideration of potential sites, status of design program has been put in place
options considered and, where applicable, the status for Tabakoroni and will extend
of approvals for process residue storage and waste to this satellite open pit deposits
dumps should be reported. Ore from these pits will be processed
at Syama and tailings storage
will be impounded in existing
footprint area approved in the
Environmental & Social Impact
Study. Progressive raising of
the tailings occurs regularly
with the 9th lift completed in
2019. Routine progress on the
monitoring is reported to government
and at stakeholder meetings in
concert with routine inspections
by government representatives.
=================== ==================================================================== ================================================================
Infrastructure
* The existence of appropriate infrastructure: Cashew South, Paysans, Folona
availability of land for plant development, power, and Tellem
water, transportation (particularly for bulk These pits will be supported by
commodities), labour, accommodation; or the ease with existing infrastructure at Syama
which the infrastructure can be provided, or as they are close to the main
accessed. facility. Folona ore is hauled
to the Syama infrastructure.
=================== ==================================================================== ================================================================
Costs
* The derivation of, or assumptions made, regarding Cashew South, Paysans, Folona
projected capital costs in the study. and Tellem
The Cashew South, Paysan, Folona
and Tellem pits are located within
* The methodology used to estimate operating costs. approximately 10km of Syama. Ore
is trucked to Syama where it is
processed at Syama's oxide circuit.
* Allowances made for the content of deleterious General and administration costs
elements. are shared between the oxide plant
and the sulphide plant which treats
the Syama UG orebody. As part
* The derivation of assumptions made of metal or of ongoing operations, capital
commodity price(s), for the principal minerals and and operating budgets are prepared
co- products. from first principles and considering
existing contractual agreements.
The oxide plant produces gold
* The source of exchange rates used in the study. doré (without problematic
deleterious elements) that is
subsequently refined offsite.
* Derivation of transportation charges. Refining costs are not material.
* Exchange rates used for planning purposes are from
consensus forecasts provided by external corporate
* The basis for forecasting or source of treatment and advisers.
refining charges, penalties for failure to meet
specification, etc.
* Ad valorem Government royalties of 6% are payable on
gold production
* The allowances made for royalties payable, both
* Government and private.
=================== ==================================================================== ================================================================
Revenue
factors * The derivation of, or assumptions made regarding Cashew South, Paysans, Folona
revenue factors including head grade, metal or and Tellem
commodity price(s) exchange rates, transportation and A gold price of US$1,500/oz formed
treatment charges, penalties, net smelter returns, the basis of the Ore Reserves.
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 stock situation for the Cashew South, Paysans, Folona
particular commodity, consumption trends and factors and Tellem
likely to affect supply and demand into the future. The market for gold is robust
with prevailing gold price being
around US$1,850/oz.
* A customer and competitor analysis along with the Supply and demand are not considered
identification of likely market windows for the material to the Ore
product. Reserve calculations.
* 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 economic analysis to produce the Cashew South, Paysans, Folona
net present value (NPV) in the study, the source and and Tellem
confidence of these economic inputs including The financial evaluation undertaken
estimated inflation, discount rate, etc. as part of the evaluation of these
open pits indicated a positive
net present value (NPV) at 7%
* NPV ranges and sensitivity to variations in the discount rate and operating results
significant assumptions and inputs. to date have exceeded production
and NPV forecasts.
=================== ==================================================================== ================================================================
Social
* The status of agreements with key stakeholders and Cashew South, Paysans, Folona
matters leading to social license to operate. and Tellem
The Southern Satellite Pits fall
within the Syama exploitation
permit and will be managed and
operated by SOMISY SA.
Development of the Southern Satellite
pits has required updating of
the SOMISY ESIA which has been
lodged with the Government of
Mali since December 2019. The
ESIA process has required consultation
with local community and local
government leadership plus other
relevant stakeholders. Engagement
will continue up to and during
operations including the payment
of compensation to farmers whose
fields are disturbed as per Malian
legal requirements.
It is anticipated that Malian
nationals will fill most operating
and management positions related
to the Southern Satellite open
pits.
It is the intention to encourage
economic development within the
local community
The Syama Mine Community Consultative
Committee, which includes representation
from Tabakoroni and the villages
adjacent to the Southern Satellites,
was established in February 2001
with representatives from local
villages, the Malian Government
and SOMISY. Since April 2004 the
Committee has met regularly as
a communication forum and to address
community issues and assist with
community project proposals; it
continues to meet on the first
or second Tuesday of each month.
=================== ==================================================================== ================================================================
Other
* To the extent relevant, the impact of the following Cashew South, Paysans and Tellem
on the project and/or on the estimation and All current government agreements
classification of the Ore Reserves: and approvals are in good standing
and no anticipated changes are
expected.
* Any 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 classification of the Ore Reserves Cashew South, Paysans, Folona
into varying confidence categories. and Tellem
Probable Ore Reserves were declared
based on the Indicated Mineral
* Whether the result appropriately reflects the Resources and Measured Resources
Competent Person's view of the deposit. considering the uncertainty of
the Modifying Factors such as
geotechnical inputs.
* The proportion of Probable Ore Reserves that have Nevertheless, since Folona is
been derived from Measured Mineral Resources (if an operating mine, the uncertainties
any). are reduced resulting in Measures
Resources conversion into Proved
Reserve.
The Ore Reserve estimate appropriately
reflects the Competent Person's
view of the deposit
=================== ==================================================================== ================================================================
Audits or
reviews * The results of any audits or reviews of Ore Reserve Cashew, Paysans, Folona and Tellem
estimates. No external audits of resources/reserves
were undertaken.
=================== ==================================================================== ================================================================
Discussion Cashew South, Paysans, Folona
of relative * Where appropriate a statement of the relative and Tellem
accuracy/ accuracy and confidence level in the Ore Reserve The relative accuracy and confidence
confidence estimate using an approach or procedure deemed of the Ore Reserve estimate is
appropriate by the Competent Person. For example, the inherent in the Ore Reserve Classification.
application of statistical or geostatistical All the parameters assumed and
procedures to quantify the relative accuracy of the adopted along with financial modelling
reserve within stated confidence limits, or, if such and analysis have been subject
an approach is not deemed appropriate, a qualitative to internal peer review.
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 recognized 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.
=================== ==================================================================== ================================================================
Tabakoroni Satellite Deposits - Porphyry Zone (Splay)
Section 1 Sampling Techniques and Data
CRITERIA JORC CODE EXPLANATION COMMENTARY
====================== ================================================================ ===========================
Sampling techniques
* Nature and quality of sampling (e.g. cut channels, The samples were collected
random chips, or specific specialised industry from reverse circulation (RC)
standard measurement tools appropriate to the and diamond core drill holes.
minerals under investigation, such as down hole gamma RC samples were collected on
sondes, or handheld XRF instruments, etc.). These 1m intervals by riffle split
examples should not be taken as limiting the broad (dry) or by scoop (wet), to
meaning of sampling. obtain
a 1-3kg sample which was sent
to the laboratory for
* Include reference to measures taken to ensure sample crushing, splitting and
representivity and the appropriate calibration of any pulverising to
measurement tools or systems used. provide a 30g charge for
analysis.
Diamond core was sampled at
* Aspects of the determination of mineralisation that 1m intervals and cut in half,
are Material to the Public Report. to provide a 2-4kg sample,
which
was sent to the laboratory
* In cases where 'industry standard' work has been done for crushing, splitting and
this would be relatively simple (e.g. 'reverse pulverising to provide a 30g
circulation drilling was used to obtain 1 m samples charge
from which 3 kg was pulverised to produce a 30 g for analysis.
charge for fire assay'). In other cases more Sampling and sample
explanation may be required, such as where there is preparation protocols are
coarse gold that has inherent sampling problems. industry standard and are
Unusual commodities or mineralisation types (e.g. deemed appropriate
submarine nodules) may warrant disclosure of detailed by the Competent Person.
information.
====================== ================================================================ ==============================
Drilling techniques
* Drill type (e.g. core, reverse circulation, open-hole Drill types used include
hammer, rotary air blast, auger, Bangka, sonic, etc.) diamond core of PQ and HQ
and details (e.g. core diameter, triple or standard sizes and RC.
tube, depth of diamond tails, face-sampling bit or Core is oriented at 3m down
other type, whether core is oriented and if so, by hole intervals using a Reflex
what method, etc.). Act II RD Orientation Tool.
====================== ================================================================ ==============================
Drill sample recovery
* Method of recording and assessing core and chip Drill core interval
sample recoveries and results assessed. recoveries are measured from
core block to core block
using a tape measure.
* Measures taken to maximise sample recovery and ensure Appropriate measures are
representative nature of the samples. taken to maximise sample
recovery and ensure the
representative
* Whether a relationship exists between sample recovery nature of the samples.
and grade and whether sample bias may have occurred No apparent relationship is
due to preferential loss/gain of fine/coarse noted between sample recovery
material. and grade.
====================== ================================================================ ==============================
Logging
* Whether core and chip samples have been geologically Drill holes were geologically
and geotechnically logged to a level of detail to logged by geologists for
support appropriate Mineral Resource estimation, colour, grainsize, lithology,
mining studies and metallurgical studies. minerals,
alteration and weathering on
geologically-domained
* Whether logging is qualitative or quantitative in intervals.
nature. Core (or costean, channel, etc.) photography. Geotechnical and structure
orientation data was measured
and logged for all diamond
* The total length and percentage of the relevant core
intersections logged. intervals.
Diamond core was photographed
(wet and dry).
Holes were logged in their
entirety (100%) and this
logging was considered
reliable and appropriate.
====================== ================================================================ ==============================
Sub-sampling
techniques and sample * If core, whether cut or sawn and whether quarter, Diamond core was sampled at
preparation half or all core taken. 1m intervals and cut in half
to obtain a 2-4kg sample.
Reverse circulation samples
* If non-core, whether riffled, tube sampled, rotary were collected on 1m
split, etc. and whether sampled wet or dry. intervals by riffle split
(dry) or by scoop
(wet) to obtain a 1-3kg
* For all sample types, the nature, quality and sample.
appropriateness of the sample preparation technique. Sample preparation for
diamond core and RC samples
includes oven drying,
* Quality control procedures adopted for all crushing to 10mm,
sub-sampling stages to maximise representivity of splitting and pulverising to
samples. 85% passing -75um. These
preparation techniques are
deemed to
* Measures taken to ensure that the sampling is be appropriate to the
representative of the in-situ material collected, material being sampled.
including for instance results for field Drill core coarse duplicates
duplicate/second-half sampling. were split by the laboratory
after crushing at a rate of
1:20
* Whether sample sizes are appropriate to the grain samples. Reverse circulation
size of the material being sampled. field duplicates were
collected by the Company at a
rate of 1:20
samples.
Sampling, sample preparation
and quality control protocols
are of industry standard and
all
attempts were made to ensure
an unbiased representative
sample was collected. The
methods
applied in this process were
deemed appropriate by the
Competent Person.
====================== ================================================================ ==============================
Quality of assay data
and laboratory tests * The nature, quality and appropriateness of the All samples were dispatched
assaying and laboratory procedures used and whether to ALS Bamako for gold
the technique is considered partial or total. analysis by 30g fire assay
fusion with
AAS instrument finish (method
* For geophysical tools, spectrometers, handheld XRF code Au-AA25). Over-range
instruments, etc., the parameters used in determining results were re-analysed and
the analysis including instrument make and model, reported
reading times, calibrations factors applied and their by 30g fire assay fusion with
derivation, etc. gravimetric finish (method
code Au-GRA21). The
analytical method
* Nature of quality control procedures adopted (e.g. was appropriate for the style
standards, blanks, duplicates, external laboratory of mineralisation.
checks) and whether acceptable levels of accuracy No geophysical tools were
(i.e. lack of bias) and precision have been used to determine elemental
established. concentrations.
Quality control (QC)
procedures included the use
of certified standards
(1:40), non-certified
sand blanks (1:40), diamond
core coarse duplicates (1:20)
and reverse circulation field
duplicates
(1:20).
Laboratory quality control
data, including laboratory
standards, blanks,
duplicates, repeats,
grind size results and sample
weights were also captured
into the digital database.
Analysis of the QC sample
assay results indicates that
an acceptable level of
accuracy and
precision has been achieved.
====================== ================================================================ ==============================
Verification of
sampling and assaying * The verification of significant intersections by Verification of significant
either independent or alternative company personnel. intersections have been
completed by Company
personnel and the
* The use of twinned holes. Competent Person.
No drill holes within the
resource area were twinned.
* Documentation of primary data, data entry procedures, Drill holes were logged into
data verification, data storage (physical and digital templates with lookup
electronic) protocols. codes, validated and then
compiled
into a relational SQL 2012
* Discuss any adjustment to assay data. database using DataShed data
management software. The
database
has verification protocols
which are used to validate
the data entry. The drill
hole database
is backed up on a daily basis
to the head office server.
Assay result files were
reported by the laboratory in
PDF and CSV format and
imported into
the SQL database without
adjustment or modification.
====================== ================================================================ ==============================
Location of data
points * Accuracy and quality of surveys used to locate drill Collar coordinates
holes (collar and down-hole surveys), trenches, mine were picked up in UTM
workings and other locations used in Mineral Resource (WGS84) by staff
estimation. surveyors using an RTK
DGPS with
an expected accuracy
* Specification of the grid system used. of +/- 0.05m;
elevations were height
above EGM96 geoid.
* Quality and adequacy of topographic control. Down hole surveys were
collected at intervals
between 5m and 30m
using either a Reflex
EZ-Gyro
north seeking
instrument or a Reflex
EZ-Trac magnetic
instrument in single
shot or multi shot
mode. A time-dependent
declination was
applied to the
magnetic readings to
determine UTM azimuth.
Coordinates and
azimuths are reported
in UTM WGS84 Zone 29
North.
Coordinates were
translated to local
mine grid using 1
point and rotation.
Local topographic
control is via LIDAR
surveys, satellite
photography and drone
UAV aerial
survey.
====================== ================================================================== =======================
Data spacing and
distribution * Data spacing for reporting of Exploration Results. Drill hole spacing was
sufficient to
demonstrate geological
* Whether the data spacing and distribution is and grade continuity
sufficient to establish the degree of geological and appropriate
grade continuity appropriate for the Mineral Resource for a Mineral Resource
and Ore Reserve estimation procedure(s) and and the
classifications applied. classifications
applied under the 2012
JORC Code.
* Whether sample compositing has been applied. The appropriateness of
the drill spacing was
reviewed by the
geological technical
team, both
on site and head
office. This was also
reviewed by the
Competent Person.
Samples were collected
on 1m intervals; no
sample compositing is
applied during
sampling.
====================== ================================================================== =======================
Orientation of data
in relation to * Whether the orientation of sampling achieves unbiased Holes were drilled
geological structure sampling of possible structures and the extent to predominantly
which this is known, considering the deposit type. perpendicular to
mineralised domains
where possible.
* If the relationship between the drilling orientation No orientation-based
and the orientation of key mineralised structures is sampling bias has been
considered to have introduced a sampling bias, this identified in the
should be assessed and reported if material. data.
====================== ================================================================== =======================
Sample security
* The measures taken to ensure sample security. Samples were collected
from the drill site
and stored on site.
All samples were
individually
bagged and labelled
with unique sample
identifiers, then
securely dispatched to
the laboratories.
All aspects of
sampling and dispatch
process were
supervised and tracked
by SOMIFI personnel.
====================== ================================================================== =======================
Audits or reviews
* The results of any audits or reviews of sampling External audits of
techniques and data. procedures indicate
protocols are within
industry standards.
====================== ================================================================== =======================
Section 2 Reporting of Exploration Results
CRITERIA JORC CODE EXPLANATION COMMENTARY
===================================== ================================================================ ====================================================================
Mineral tenement and land tenure
status * Type, reference name/number, location and ownership Porphyry Zone drilling was completed within the Finkolo-Tabakoroni
including agreements or material issues with third Exploitation Licence PE
parties such as joint ventures, partnerships, 13/19. Resolute Mining Limited has an 90% interest in Exploitation
overriding royalties, native title interests, Permit PE 13/19, through
historical sites, wilderness or national park and its Malian subsidiary, Sociêtê des Mines de Finkolo SA
environmental settings. (SOMIFI). The Malian Government
holds a free carried 10% interest in SOMIFI.
The Permits are held in good standing. Malian mining law provides
* The security of the tenure held at the time of that all Mineral Resources
reporting along with any known impediments to are administered by DNGM (Direction Nationale de la Géologie
obtaining a licence to operate in the area. et des Mines) or National
Directorate of Geology and Mines under the Ministry of Mines,
Energy and Hydrology.
=================================== ==================================================================== ====================================================================
Exploration done by other parties
* Acknowledgment and appraisal of exploration by other Etruscan Resources Inc explored Tabakoroni during 2002-2003 by
parties. auger, aircore, RC and diamond
drill hole tails. The Tabakoroni area was previously explored by
BHP (1988-1990) and Barrick
Gold (1990) by auger, pits, trenches, RAB and diamond core
drilling.
=================================== ==================================================================== ====================================================================
Geology
* Deposit type, geological setting and style of The Tabakoroni Porphyry Zone is located on a NNE trending splay of
mineralisation. the NNW oriented Main
Tabakoroni Shear Zone.
Host rocks are comprised of interbedded greywacke and shale with
small intrusions of quartz
feldspar phyric dacite porphyry. Ductile shearing affects all units
and is particularly focussed
within the shale units.
Mineralisation occurs as quartz-pyrite veins and sulphidic shears
within shale units. Visible
gold is commonly seen in vein quartz.
The gold mineralisation at the 'Porphyry Zone" is somewhat erratic
with more coherent zones
striking NNE and dipping shallowly and steeply west.
=================================== ==================================================================== ====================================================================
Drill hole Information
* A summary of all information material to the No exploration results have been reported in this release.
understanding of the exploration results including a All information, including easting, northing, elevation, dip,
tabulation of the following information for all azimuth, coordinate system,
Material drill holes: drill hole length, intercept length and depth are measured and
recorded in UTM Zone 29 WGS84.
The Syama belt is mostly located on the Tengrela 1/200,000 topo
o easting and northing of the drill hole collar sheet (Sheet NC 29-XVIII).
o elevation or RL (Reduced Level - elevation above sea level The Tabakoroni local grid has been tied to the UTM Zone 29
in metres) of the drill hole WGS84 co-ordinate system.
collar Spectrum Survey & Mapping from Australia established survey
o dip and azimuth of the hole control at Tabakoroni using AusPos
o down hole length and interception depth online processing to obtain an accurate UTM Zone 29 (WGS84) and
o Whole length. 'above geoid' RL for the origin
* If the exclusion of this information is justified on of the survey control points.
the basis that the information is not Material and Accuracy of the survey measurements is considered to meet
this exclusion does not detract from the acceptable industry standards.
understanding of the report, the Competent Person Drill hole information has been tabulated for this release in
should clearly explain why this is the case. the intercepts table of the
accompanying text.
For completeness the following information about the drill
holes is provided:
* Easting, Northing and RL of the drill hole collars
are measured and recorded in UTM Zone 29 (WGS84).
* Dip is the inclination of the drill hole from
horizontal. A drill hole drilled at -60deg is 60deg
from the horizontal.
* Down hole length is the distance down the inclination
of the hole and is measured as the distance from the
horizontal to end of hole.
* Intercept depth is the distance from the start of the
hole down the inclination of the hole to the depth of
interest or assayed interval of interest.
=================================== ==================================================================== ====================================================================
Data aggregation methods
* In reporting Exploration Results, weighting averaging Exploration results are tabulated using the following parameters:
techniques, maximum and/or minimum grade truncations * Grid coordinates are WGS84 Zone 29 North.
(e.g. cutting of high grades) and cut-off grades are
usually Material and should be stated.
* Cut-off grade for reporting of intercepts is >=1g/t
Au.
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade
results, the procedure used for such aggregation * No top cut of individual assays prior to length
should be stated and some typical examples of such weighted compositing of the reported intercept has
aggregations should be shown in detail. been applied.
* The assumptions used for any reporting of metal * Maximum 3m consecutive internal dilution included
equivalent values should be clearly stated. within the intercept.
Metal equivalent values are not used in reporting.
=================================== ================================================================== =========================================================================
Relationship between
mineralisation widths and * These relationships are particularly important in the The majority of the drill holes are planned at a general inclination
intercept lengths reporting of Exploration Results. of --60 degrees east
and as close to perpendicular to the ore zone as possible.
At the angle of the drill holes and the dip of the ore zones, the
* If the geometry of the mineralisation with respect to reported intercepts will
the drill hole angle is known, its nature should be be slightly more than true width.
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 sections (with scales) and No exploration results have been reported in this release.
tabulations of intercepts should be 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 reporting of all Exploration Significant intercepts of new drill holes have not been reported in
Results is not practicable, representative reporting this release.
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
=================================== ====================================================================== =====================================================================
Other substantive exploration data
* Other exploration data, if meaningful and material, No geophysical and geochemical data or any additional exploration
should be reported including (but not limited to): information has been reported
geological observations; geophysical survey results; in this release,
geochemical survey results; bulk samples - size and as they are not deemed relevant to the release.
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 planned further work (e.g. Further drilling is planned.
tests for lateral extensions or depth extensions or
large-scale step-out drilling).
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
=================================== ====================================================================== =====================================================================
Sec t ion 3 Es tim a tion and Reporting of M ineral Re sourc es
CRITERIA JORC CODE E XP L A N A T I ON CO M M ENT ARY
================= ============================================================================ ======================================== ===================
Database
integrity * Measures taken to ensure that data has not been Data has been compiled into a
corrupted by, for example, transcription or keying relational SQL database; the setup
errors, between its initial collection and its use of this database precludes the
for Mineral Resource estimation purposes. loading of data which do not meet
the required validation protocols.
The data is managed using DataShed(c)
* Data validation procedures used. drill hole management software
using SQL database techniques.
Validation checks are conducted
using SQL and DataShed(c) relational
database standards. Data has also
been checked against original
hard copies for 100% of the data,
and where possible, loaded from
original data sources.
Resolute completed the following
basic validation checks on the
data supp l ied pri or to resource
esti mation:
* Drill holes with overlapping sample intervals.
* Sample intervals with no assay data or duplicate
records.
* Assay grade ranges.
* Collar coordinate ranges.
* Valid hole orientation data.
There are no significant issues
identified with the data.
=============== ============================================================================ ===============================================================
Site visits
* Comment on any site visits undertaken by the Mr Bruce Mowat, a fulltime employee
Competent Person and the outcome of those visits. of Resolute Mining Limited and
a Member of the Australasian Institute
of Mining and Metallurgy is the
* If no site visits have been undertaken indicate why Competent Person who has visited
this is the case. this site on multiple occasions.
All aspects of drilling, sampling
and mining are considered by the
Competent Persons to be of a high
industry standard.
=============== ============================================================================ ===============================================================
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the The digital database used for
geological interpretation of the mineral deposit. the interpretation included logged
intervals for the key stratigraphic
zones of the Porphyry Zone. Detailed
* Nature of the data used and of any assumptions made. geological logs were available
in hardcopy and digital and reviewed
where necessary.
* The effect, if any, of alternative interpretations on A wireframe was used to constrain
Mineral Resource estimation. the estimation is based on drill
hole intercepts and geological
boundaries. The wireframe has
* The use of geology in guiding and controlling Mineral been constructed to a 0.5g/t Au
Resource estimation. cut-off grade for shape consistency.
Only one wireframe was constructed
in the closely spaced drilled
* The factors affecting continuity both of grade and area and the remaining mineralisation
geology. was in the wider spaced drilling
area and an alternate estimation
method was used.
The confidence in the geological
interpretation is a moderate level
and is based on good quality drilling
and ongoing drill hole logging.
The main zone has been gc drilled
and therefore is considered robust,
the area outside the gc drilling
has a lower confidence give the
sparse drilling. There could be
alternative interpretations in
this area which is reflected in
the classification.
The logging in the geological
database of lithology and weathering
were considered during the mineralisation
domain interpretations, and where
available.
=============== ============================================================================ ===============================================================
Dimensions
* The extent and variability of the Mineral Resource The Porphyry Zone Mineral Resource
expressed as length (along strike or otherwise), plan area extends over a strike length
width, and depth below surface to the upper and lower of 700 metres (from 1,164,600
limits of the Mineral Resource. mN to 1,165,300 mN) and includes
the 175 metre vertical interval
from 345mRL to 170mRL. The overall
plan width of the mineralised
lodes varies between a few metres
to 20 metres in thickness and
is 600 metres wide (from 810,265
mE to 810,865 mE).
=============== ============================================================================ ===============================================================
Estimation
and modelling * The nature and appropriateness of the estimation Estimation was completed in Datamine
techniques technique(s) applied and key assumptions, including Studio RM using two estimation
treatment of extreme grade values, domaining, methods. Gold was estimation into
interpolation parameters and maximum distance of a three-dimensional block model
extrapolation from data points. If a computer by dynamic anisotropy using ordinary
assisted estimation method was chosen include a kriging (OK) into the main domain
description of computer software and parameters used. (Domain 10). A hard boundary was
used between mineralisation domains.
A soft boundary was used between
* The availability of check estimates, previous the oxide and transitional and
estimates and/or mine production records and whether a hard boundary between transitional
the Mineral Resource estimate takes appropriate and fresh within the main domain.
account of such data. To capture the complex low angled
surrounding mineralisation an
unconstrained inverse distance
* The assumptions made regarding recovery of by- cubed (ID(3) ) estimation technique
products. was used.
The drill spacing at The Porphyry
Zone is a nominal 25 by 25 metres
* Estimation of deleterious elements or other non-grade for the exploration holes for
variables of economic significance (e.g. sulphur for the majority of the deposits and
acid mine drainage characterization). 50 by 50 metres around the periphery.
The main part of the deposit has
been gc drilled out to 12.5 by
* In the case of block model interpolation, the block 10 metres. Parent blocks of 4mE
size in relation to the average sample spacing and by 10mN by 5mRl were used for
the search employed. the block model to tie in with
the existing grade control model.
Sub blocking down to 1mE by 2.5mN
* In the case of block model interpolation, the block by 1.25mRl was employed for resolution
size in relation to the average sample spacing and of the mineralisation boundaries
the search employed. as define by wireframes
Drillhole sample data was flagged
using domain codes generated from
* Any assumptions behind modelling of selective mining three-dimensional mineralisation
units. domains. The samples were composited
to 1 metre intervals.
Variogram orientations were largely
* Any assumptions about correlation between variables. controlled by the strike of the
mineralisation and downhole variography.
The search ellipse for the background
* Description of how the geological interpretation was mineralisation is orientated striking
used to control the resource estimates. towards the north and dipping
30(o) to the west.
Kriging neighbourhood analysis
* Discussion of basis for using or not using grade was performed to optimise the
cutting or capping. block size, sample numbers and
discretisation levels with the
goal of minimising conditional
* The process of validation, the checking process used, bias in the gold grade estimates.
the comparison of model data to drill hole data, and Three search passes were used,
use of reconciliation data if available. with the first search pass set
to the range of the variogram
for each domain. A minimum of
eight and a maximum of 30 samples
were used. The search stayed the
same for the second pass but was
increased by a factor of two for
the third and final pass. The
minimum number of samples was
reduced to 6 for the second pass
and four for the third pass.
No deleterious elements were found
in the ore.
No selective mining units have
been assumed.
Top cuts were applied to reduce
the variability of the data and
to remove the outliers.
The estimated block model grades
were visually validated against
the input drillhole data and comparisons
were carried out against the drillhole
data and by northing and elevation
slices. Global comparison between
the input data and the block grades
for each variable is considered
acceptable (+/-10%).
=============== ============================================================================ ===============================================================
Moisture
* Whether the tonnages are estimated on a dry basis or All tonnages have been estimated
with natural moisture, and the method of on a dry basis.
determination of the moisture content.
=============== ========================================================================== ==============================================
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality The cut-off grade of 1g/t for
parameters applied. the stated open pit Mineral Resource
estimate is determined from economic
parameters that reflect geotechnical,
mining and processing parameters
and costs for an open pit mining
operation.
=============== ========================================================================== ==============================================
Mining factors
or assumptions * Assumptions made regarding possible mining methods, The Resource models assume that
minimum mining dimensions and internal (or, if a moderate level of mining selectivity
applicable, external) mining dilution. It is always is achieved in open pit mining.
necessary as part of the process of determining It has been assumed that high
reasonable prospects for eventual economic extraction quality grade control will be
to consider potential mining methods, but the applied to ore/waste delineation
assumptions made regarding mining methods and processes using RC drilling, or
parameters when estimating Mineral Resources may not similar, at a nominal (and no
always be rigorous. Where this is the case, this greater) spacing of 10 metre by
should be reported with an explanation of the basis 12.5 metre and applying a pattern
of the mining assumptions made. sufficient to ensure adequate
coverage of the mineralisation
zones.
This is consistent with current
mining practises at Syama.
=============== ========================================================================== ==============================================
Metallurgical
factors or * The basis for assumptions or predictions regarding No metallurgical factors or assumptions
assumptions metallurgical amenability. It is always necessary as have been made during the resource
part of the process of determining reasonable estimation process as these will
prospects for eventual economic extraction to be addressed during the conversion
consider potential metallurgical methods, but the to Ore Reserves.
assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral
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 regarding possible waste and process It is a requirement of Decree
assumptions residue disposal options. It is always necessary as No.03-594/P-RM of 31 December
part of the process of determining reasonable 2003 of Malian law that an Environmental
prospects for eventual economic extraction to and Social Impact Study (Étude
consider the potential environmental impacts of the d'Impact Environmental et Social
mining and processing operation. While at this stage - EIES) must be undertaken to
the determination of potential environmental impacts, update the potential environmental
particularly for a green fields project, may not and social impacts of the mine's
always be well advanced, the status of early redevelopment. The EIES for the
consideration of these potential environmental Syama Gold Mine (including Tabakoroni)
impacts should be reported. Where these aspects have was approved in November 2007
not been considered this should be reported with an and an Environment Permit (07-
explanation of the environmental assumptions made. 0054/MEA - SG) was issued by the
Ministry of Environment and Sanitation
on 22 November 2007. The Ministry
of Environment conducts timely
reviews of the Syama Gold Mine
to ensure that the Company maintains
compliance with the EIES guidelines.
At Syama and Tabakoroni, there
are three key practices for disposal
of wastes and residues namely,
stacking of waste rock from open
pit mining; storage of tailings
from mineral processes; and "tall-stack
dispersion" of sulphur dioxide
from the roasting of gold bearing
concentrate. All waste disposal
practices are in accordance with
the guidelines in the EIES.
The Environmental and Social Impact
Study - "Société des
Mines de Syama, Syama Gold Mine,
Mali", dated 2007 indicated there
was minimal potential for acid
mine drainage from waste rock
due to the elevated carbonate
content which buffers a potential
acid generation. Resolute maintains
a plan for progressive rehabilitation
of waste rock landforms as part
of ongoing mine development and
waste rock dumping.
The landform of tailings impoundments
does not have a net acid generating
potential. The largest volume
is flotation tailings where the
sulphide minerals have already
been removed from the host rock.
Its mineralogy includes carbonates
which further buffer any acid-formation
potential from sulphides that
may also be present.
Cyanide levels in the leached-calcine
tailings are typically less than
50ppm in the weak acid dissociable
form. Groundwater away from the
tailings landform is intercepted
by trenches and sump pumps.
Sulphur dioxide is generated from
the roasting of gold concentrate
so that gold can be extracted
and refined. Tall-Stack "dispersion"
of the sulphur dioxide emission
is monitored continuously. Prevailing
weather and dissipation of the
sulphur dioxide is modelled daily
to predict the need to pause the
roasting process to meet the air
quality criteria set out in the
Environmental & Social Impact
Study.
=============== ========================================================================== ==============================================
Bulk density
* Whether assumed or determined. If assumed, the basis No bulk density measurements
for the assumptions. If determined, the method used, have been taken at the Porphyry
whether wet or dry, the frequency of the measurements, Zone.
the nature, size and representativeness of the An average SG was applied to the
samples. model by weathering types based
on similar deposits at Syama:
* The bulk density for bulk material must have been * Oxide 2.12 t/m(3)
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within * Transitional 2.38 t/m(3)
the deposit.
* Fresh 2.72 t/m(3)
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
=============== ========================================================================== ==============================================
Classification
* The basis for the classification of the Mineral In general, the Inferred Mineral
Resources into varying confidence categories. Resource classification is applied
to extensions of mineralised
zones on the margins of the deposit
* Whether appropriate account has been taken of all where drill spacing is more than
relevant factors (i.e. relative confidence in 50m x 50m and the extents of
tonnage/ grade estimations, reliability of input data, mineralisation at depth. However,
confidence in continuity of geology and metal values, due to the complexity of the
quality, quantity and distribution of the data). surrounding mineralisation and
the low confidence in the geological
interpretation in addition to
* Whether the result appropriately reflects the the estimation method being unconstrained.
Competent Person's view of the deposit. The competent person decided
to classify the whole of the
deposit to Inferred until more
drilling can be
carried out.
The validation of the block model
has confirmed satisfactory correlation
of the input data to the estimated
grades and reproduction of data
trends.
The Mineral Resource estimates
appropriately reflects the view
of the Competent Person.
=============== ============================================================================== ==========================================
Audits or
reviews * The results of any audits or reviews of Mineral There has been no external review
of the Mineral Resource estimate.
* Resource estimates.
=============== ============================================================================== ==========================================
Discussion
of relative * Where appropriate a statement of the relative The Mineral Resource estimate
accuracy/ accuracy and confidence level in the Mineral Resource has been classified based on the
confidence estimate using an approach or procedure deemed quality of the data collected,
appropriate by the Competent Person. For example, the the density of data, the confidence
application of statistical or geostatistical of the geological models and mineralisation
procedures to quantify the relative accuracy of the models, and the grade estimation
resource within stated confidence limits, or, if such quality. This has been applied
an approach is not deemed appropriate, a qualitative to a relative confidence based
discussion of the factors that could affect the on data density and zone confidence
relative accuracy and confidence of the estimate. for resource classification. No
relative statistical or geostatistical
confidence or risk measure has
* The statement should specify whether it relates to been generated or applied.
global or local estimates, and, if local, state the Mine production data was used
relevant tonnages, which should be relevant to in the validation process and
technical and economic evaluation. Documentation showed to be within 20% of the
should include assumptions made and the procedures estimated tonnes, grade and ounces
used. within the mined area.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
=============== ========================================================================== ==============================================
Sec t ion 4 Es tim a tion and Reporting of Ore Re serves
CRITERIA JORC CODE E XP L A N A T I CO M M ENT ARY
ON
================ ==================================================================== ================ =============
Mineral
Resource * Description of the Mineral Resource estimate used as Resources at Porphyry Zone are
estimate a basis for the conversion to an Ore Reserve. reported above a 1g/t cut-off.
for conversion This was calculated as a
to Ore marginal
Reserves * Clear statement as to whether the Mineral Resources cut-off utilising open pit
are reported additional to, or inclusive of, the Ore mining
Reserve. methods. Material below this
cut-off
is not included in the Mineral
Resource.
Ore Reserves are the material
reported as a sub-set of the
resource,
that which can be extracted
from
the mine and processed with an
economically acceptable
outcome.
Mineral Resources are reported
inclusive of Ore Reserves.
============== ==================================================================== =================================
Site visits
* Comment on any site visits undertaken by the Mr Kitwa Ndjibu is member of
Competent Person and the outcome of those visits. the Australasian Institute of
Mining and Metallurgy and is a
Competent Person who has
* If no site visits have been undertaken indicate why visited
this is the case. the site the project is
located
.
============== ==================================================================== =================================
Study status
* The type and level of study undertaken to enable The Porphyry Zone deposit is
Mineral Resources to be converted to Ore Reserves. adjacent to the Tabakoroni
mine
which had a Feasibility study
* The Code requires that a study to at least was completed in 2009 with
Pre-Feasibility Study level has been undertaken to updates
convert Mineral Resources to Ore Reserves. Such in 2012 and 2016.
studies will have been carried out and will have Tabakoroni has been in
determined a mine plan that is technically achievable continuous
and economically viable, and that material Modifying mining operation since August
Factors have been considered. 2018. During this time the
performance
the project has shown a
positive
reconciliation between mineral
resources and gold production
and delivered positive
cashflows.
============== ==================================================================== =================================
Cut-off
parameters * The basis of the cut-off grade(s) or quality A cut-off of 0.8 g/t has been
parameters applied. applied for Tabakoroni Oxide
ore.
============== ==================================================================== =================================
Mining factors
or assumptions * The method and assumptions used as reported in the The reported Ore Reserve
Pre-Feasibility or Feasibility Study to convert the estimate
Mineral Resource to an Ore Reserve (i.e. either by for Porphyry Zone is based on
application of appropriate factors by optimization or pit optimisations conducted
by preliminary or detailed design). using
the Lerchs-Grossman (LG)
algorithm
* The choice, nature and appropriateness of the of the Whittle software to
selected mining method(s) and other mining parameters calculate
including associated design issues such as pre-strip, the optimal pit at specific
access, etc. input
parameters and pit designs.
Costs
* The assumptions made regarding geotechnical are based on existing contract
parameters (e.g. pit slopes, stope sizes, etc.), mining and haulage rates and
grade control and pre-production drilling. site
costs which are understood
with
* The major assumptions made and Mineral Resource model a high degree of accuracy.
used for pit and stope optimization (if appropriate). Mining is undertaken by
conventional
open pit methods of drill and
* The mining dilution factors used. blast, followed by load and
haul,
utilising mining equipment
* The mining recovery factors used. comprising
120t - 230t diesel hydraulic
excavators
* Any minimum mining widths used. and 90t off-highway dump
trucks.
Detailed pit design work was
* The manner in which Inferred Mineral Resources are completed
utilized in mining studies and the sensitivity of the based on pit optimisations
outcome to their inclusion. using
Whittle Four-X optimisation
software.
* The infrastructure requirements of the selected Only Indicated Resources were
mining methods. used in the pit optimisation.
Pit slope parameters for
Porphyry
Zone were based on a
geotechnical
assessment that included a
total
of seven specific geotechnical
holes. Overall slopes angles
are
approximately 40deg. All other
pits adopt similar overall
slope
angles.
Grade control consists of RC
drilling,
based on a 5.0mE x 12.5mN
drill
pattern
The MIK resource estimation
technique
used for the Porphyry Zone
implicitly
incorporates internal mining
dilution
at the scale of the assessed
SMU
so no additional modifying
factor
was applied .
============== ==================================================================== =================================
Metallurgical
factors or * The metallurgical process proposed and the Processing is by conventional
assumptions appropriateness of that process to the style of primary crushing followed by
mineralization. single
stage SAG milling. Gold
recovery
* Whether the metallurgical process is well-tested is by means of a gravity
technology or novel in nature. recovery
circuit and carbon in leach
process.
* The nature, amount and representativeness of Processing recoveries used are
metallurgical test work undertaken, the nature of the 90%, 80% and 65% for Oxide,
metallurgical domaining applied and the corresponding Transitional
metallurgical recovery factors applied. and fresh material
respectively
Mine is operational with good
* Any assumptions or allowances made for deleterious reconciliation between
elements. predicted
recoveries and actual
Allowances are made in the
* The existence of any bulk sample or pilot scale test recovery
work and the degree to which such samples are estimates for transitional and
considered representative of the ore body as a whole. fresh ore as the Au recovery
is
impacted by some of the gold
* For minerals that are defined by a specification, has being
the ore reserve estimation been based on the hosted in refractory sulphide
appropriate mineralogy to meet the specifications? and preg-robbing carbon.
============== ==================================================================== =================================
Environmental
* The status of studies of potential environmental An active waste rock
impacts of the mining and processing operation. characterisation
Details of waste rock characterization and the program has been put in place
consideration of potential sites, status of design for Porphyry Zone.
options considered and, where applicable, the status Ore Reserves from Porphyry
of approvals for process residue storage and waste Zone
dumps should be reported. will be processed at Syama and
tailings storage will be
impounded
in existing footprint area
approved
in the Environmental & Social
Impact Study. Progressive
raising
of the tailings occurs
regularly
with the 9th lift completed in
2019. Routine progress on the
monitoring is reported to
government
and at stakeholder meetings in
concert with routine
inspections
by government representatives.
============== ==================================================================== =================================
Infrastructure
* The existence of appropriate infrastructure: All required infrastructure is
availability of land for plant development, power, already in place for the
water, transportation (particularly for bulk Porphyry
commodities), labour, accommodation; or the ease with Zone deposit which is within
which the infrastructure can be provided, or the
accessed. current the Tabakoroni mine
footprint
============== ==================================================================== =================================
Costs
* The derivation of, or assumptions made, regarding The Porphyry Zone deposit is
projected capital costs in the study. adjacent to the Tabakoroni
mine,
with established mining
* The methodology used to estimate operating costs. operations.
Ore is trucked to Syama where
it is processed at Syama's
* Allowances made for the content of deleterious oxide
elements. circuit. General and
administration
costs are shared between the
* The derivation of assumptions made of metal or oxide
commodity price(s), for the principal minerals and plant and the sulphide plant
co- products. which
treats the Syama UG orebody.
The
* The source of exchange rates used in the study. Porphyry Zone deposit will be
mined contemporaneously with
the
* Derivation of transportation charges. Tabakoroni pits using the same
mining and haulage fleet. The
mining and haulage rates are
* The basis for forecasting or source of treatment and based
refining charges, penalties for failure to meet on known contract rates.
specification, etc. The oxide plant produces gold
doré (without problematic
deleterious elements) that is
* The allowances made for royalties payable, both subsequently refined offsite.
Government and private. Refining costs are not
material.
Exchange rates used for
planning
purposes are from consensus
forecasts
provided by external corporate
advisers.
Ad valorem Government
royalties
of 6% are payable on
gold production.
============== ==================================================================== =================================
Revenue
factors * The derivation of, or assumptions made regarding A gold price of US$1,500/oz
revenue factors including head grade, metal or formed the basis of the Ore
commodity price(s) exchange rates, transportation and Reserves.
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 stock situation for the The market for gold is robust
particular commodity, consumption trends and factors with prevailing gold price
likely to affect supply and demand into the future. being
around US$1,850/oz.
Supply and demand are not
* A customer and competitor analysis along with the considered
identification of likely market windows for the material to the Ore Reserve
product. calculations.
* Price and volume forecasts and the basis for these
forecasts.
* or industrial minerals the customer specification,
testing and acceptance requirements prior to a supply
contract.
============== ====================================================================== ===============================
Economic
* The inputs to the economic analysis to produce the The financial evaluation
net present value (NPV) in the study, the source and undertaken
confidence of these economic inputs including as part of the evaluation of
estimated inflation, discount rate, etc. these open pits indicated a
positive
net present value (NPV) at a
* NPV ranges and sensitivity to variations in the 5% discount rate and operating
significant assumptions and inputs. results to date have exceeded
production and NPV forecasts.
============== ====================================================================== ===============================
Social
* The status of agreements with key stakeholders and The Porphyry Zone falls under
matters leading to social license to operate. the SOMIFI exploitation permit
and is managed by SOMISY SA
under
Management and Toll Treatment
agreements lodged with the
Government
of Mali.
It is the intention to
encourage
economic development within the
local community. During the
operation
of Tabakoroni and its satellite
deposits the focus has been on
improving farming and health
care plus providing access to
water; this will continue to
remain a focus.
The Syama Mine Community
Consultative
Committee, which includes
representation
from Tabakoroni and the
villages
adjacent to the Syama
Satellites,
was established in February
2001
with representatives from local
villages, the Malian Government
and SOMISY. Since April 2004
the Committee has met regularly
as a communication forum and
to address community issues and
assist with community project
proposals; it continues to meet
on the first or second Tuesday
of each month.
============== ====================================================================== ===============================
Other
* To the extent relevant, the impact of the following All current government
on the project and/or on the estimation and agreements
classification of the Ore Reserves: and approvals are in good
standing
and no anticipated changes
* Any identified material naturally occurring risks. are
expected.
* 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 classification of the Ore Reserves Proved and Probable Ore Reserves
into varying confidence categories. were declared based on the
Measured
and Indicated Mineral Resources.
* Whether the result appropriately reflects the The Ore Reserve estimate
Competent Person's view of the deposit. appropriately
reflects the Competent Person's
view of the deposit.
* The proportion of Probable Ore Reserves that have
been derived from Measured Mineral Resources (if
any).
============== ==================================================================== =================================
Audits or
reviews * The results of any audits or reviews of Ore Reserve
estimates.
============== ==================================================================== =================================
Discussion
of relative * Where appropriate a statement of the relative The relative accuracy and
accuracy/ accuracy and confidence level in the Ore Reserve confidence
confidence estimate using an approach or procedure deemed of the Ore Reserve estimate is
appropriate by the Competent Person. For example, the inherent in the Ore Reserve
application of statistical or geostatistical Classification.
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 recognized 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.
============== ==================================================================== =================================
Mako
Section 1 Sampling Techniques and Data
CRITERIA JORC CODE EXPLANATION COMMENTARY
======================================= ================================================================ ====================================
Sampling techniques
* Nature and quality of sampling (e.g. cut channels, Sampling has been by diamond drill
random chips, or specific specialised industry coring and reverse circulation chip
standard measurement tools appropriate to the techniques with minor
minerals under investigation, such as down hole gamma trench and surface sampling.
sondes, or handheld XRF instruments, etc.). These Diamond core is geologically logged
examples should not be taken as limiting the broad and sampled to geological contacts
meaning of sampling. with nominal sample
lengths between 0.3m and 4.5m (most
commonly 1.5m). Core selected for
* Include reference to measures taken to ensure sample assay is systematically
representivity and the appropriate calibration of any cut lengthwise into half core by
measurement tools or systems used. diamond blade rock saw, numbered and
bagged before dispatch
to the laboratory for analysis.
* Aspects of the determination of mineralisation that All core is photographed, wet and
are Material to the Public Report. dry.
Reverse circulation chips are
geologically logged and sampled on
* In cases where 'industry standard' work has been done regular lengths of 1m. Chip
this would be relatively simple (e.g. 'reverse material selected for assay is
circulation drilling was used to obtain 1 m samples systematically divided to a 1/8
from which 3 kg was pulverised to produce a 30 g proportion using a rotary splitter
charge for fire assay'). In other cases more attached to the cyclone sample
explanation may be required, such as where there is recovery system, numbered and bagged
coarse gold that has inherent sampling problems. before dispatch to the
Unusual commodities or mineralisation types (e.g. laboratory for analysis.
submarine nodules) may warrant disclosure of detailed
information.
===================================== ================================================================== ======================================
Drilling techniques
* Drill type (e.g. core, reverse circulation, open-hole Diamond core drilling with standard
hammer, rotary air blast, auger, Bangka, sonic, etc.) inner tubes. NTW diameter (57.1 mm)
and details (e.g. core diameter, triple or standard to target depth where
tube, depth of diamond tails, face-sampling bit or possible with some smaller NQ2
other type, whether core is oriented and if so, by intervals as tails. Core is marked
what method, etc.). and oriented.
Reverse Circulation drilling with 4"
or 4.5" hammer and 4" rod string to
target depth.
===================================== ================================================================== ======================================
Drill sample recovery
* Method of recording and assessing core and chip Diamond core recoveries are measured
sample recoveries and results assessed. in the core trays and recorded as
recovered metres and
recovered % as part of the geological
* Measures taken to maximise sample recovery and ensure logging process.
representative nature of the samples. Diamond core drilling prior to the
latest deep diamond drilling had just
over 96% of core
* Whether a relationship exists between sample recovery sample intervals measured (28,701
and grade and whether sample bias may have occurred measurements totalling 46,200m of
due to preferential loss/gain of fine/coarse core) with core recoveries
material. of 75% or better. Approximately 85%
of core sample intervals measured had
core recoveries
of 100%. The percentage core recovery
data was examined graphically against
the gold grades
and Cube established that no
relationship is evident between core
loss and gold grade in the
regions of low core recovery.
In 2016 % core recovery data was
examined graphically against the gold
grades and no relationship
is evident between core loss and gold
grade in the regions of low sample
recovery.
RC recoveries are monitored by chip
sample weight recording. Of 43 RC
holes reviewed by Cube
in 2016 all recorded weight/m in
consolidated rock material ranged
from 19 to 38kg/m (mode=25;
mean=25; median=25kg/m) which equates
to rock densities between 2 and
3gcm3.
===================================== ================================================================== ======================================
Logging
* Whether core and chip samples have been geologically Diamond core has been geologically
and geotechnically logged to a level of detail to and geotechnically logged to a level
support appropriate Mineral Resource estimation, of detail to support
mining studies and metallurgical studies. appropriate classification and
reporting of a Mineral Resource.
Reverse circulation chip samples have
* Whether logging is qualitative or quantitative in been geologically logged to a level
nature. Core (or costean, channel, etc.) photography. of detail to support
appropriate classification and
reporting of a Mineral Resource.
* The total length and percentage of the relevant Total length of DD logged data is
intersections logged. 69,728.01m from total 70,527.01m
drilled.
===================================== ================================================================== ======================================
Sub-sampling techniques and sample
preparation * If core, whether cut or sawn and whether quarter, Core is systematically cut lengthwise
half or all core taken. into half core with a diamond saw.
In the initial drill phases between
2kg and 6kg of broken core sample was
* If non-core, whether riffled, tube sampled, rotary dispatched by contracted
split, etc. and whether sampled wet or dry. truck transport to SGS Mali (Phase 1-
90 holes) or ALS Mali (Phases 2 and 3
- 88 holes) for
* For all sample types, the nature, quality and sample preparation.
appropriateness of the sample preparation technique. More recent samples (Phase 3 to 5 and
the 2018 deep diamond holes) have
undergone sample preparation
* Quality control procedures adopted for all at the site sample prep laboratory.
sub-sampling stages to maximise representivity of The 2018 deep diamond programme
samples. (PWD362 to 420) was prepared onsite
with assay pulps analysed
by ALS Loughrea (Ireland).
* Measures taken to ensure that the sampling is RC samples representing a 1/8 split
representative of the in situ material collected, are taken directly from the rig
including for instance results for field mounted cyclone by rotary
duplicate/second-half sampling. splitter, sample weight is recorded,
sample is bagged in pre numbered
plastic and sample tickets
* Whether sample sizes are appropriate to the grain are inserted and bag is sealed for
size of the material being sampled. transport to preparation facility.
Generally, one of each of the two
control samples (blank or CRM
standard) is inserted into
the sample stream every tenth sample.
Over the 2018 deep diamond programme
A total of 4,582
samples have had 249 CRM and 260
blanks inserted, sufficient as per
industry standards. An
industry standard, documented process
of sample mark-up, core splitting,
bagging and ticketing
and recording is in place at the Mako
site. The laboratories sample
preparation followed a
standard documented process flow with
whole sample crushing (better than
70% passing 2mm)
followed by a 1kg riffle split for
pulverisation to 75 micron (better
than 85% pass).
Master pulps of 250g were split and
placed in airtight, sealed bags and
sent by courier to
the assaying laboratory for analysis.
For the majority of the Phase 1
drilling the mineralised interval
sample preparation done
at SGS Mali has been repeated and
re-assayed. As a result the nature,
quality and appropriateness
of the sample preparation technique
are to industry standard.
Sample size of 2-6kg is appropriate
for the grain size of material.
===================================== ================================================================== ======================================
Quality of assay data and laboratory
tests * The nature, quality and appropriateness of the Au assays are determined by fire
assaying and laboratory procedures used and whether assay with AAS finish. Laboratory and
the technique is considered partial or total. assay procedures are
appropriate for Mineral Resource
estimation.
* For geophysical tools, spectrometers, handheld XRF QAQC consisted of standards, blanks
instruments, etc., the parameters used in determining and laboratory duplicates (both
the analysis including instrument make and model, coarse and pulp). The
reading times, calibrations factors applied and their QAQC sample results showed acceptable
derivation, etc. levels of accuracy and precision.
The assay data is considered by Cube
to be suitable for Mineral Resource
* Nature of quality control procedures adopted (e.g. estimation.
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 and
assaying * The verification of significant intersections by All aspects of the core sampling,
either independent or alternative company personnel. assay procedures and QA/QC program
have been reviewed by
Cube and were judged to be of
* The use of twinned holes. industry standard and suitable for
use in the estimation of
Mineral Resources.
* Documentation of primary data, data entry procedures, Independent sampling has been
data verification, data storage (physical and undertaken by Cube and the results
electronic) protocols. closely match the original
data.
Drill hole assay result data has been
* Discuss any adjustment to assay data. checked against the original hardcopy
laboratory assay
reports by Cube for a representative
number of holes.
Cube has in 2014 undertaken site
based checks of the raw assay data to
verify grade intersections
were consistent with a visual
inspection of mineralisation in the
core.
Below detection limit values
(negatives) have been replaced by
background values.
Un-sampled intervals have been
retained as un-sampled (null or
blank). The majority of these
intervals occur within the waste
domain and have no material impact on
the estimate.
===================================== ================================================================== ======================================
Location of data points
* Accuracy and quality of surveys used to locate drill Drill holes have been surveyed by a
holes (collar and down-hole surveys), trenches, mine contract surveyor (P.C. Drysdale Land
workings and other locations used in Mineral Resource and Engineering
estimation. Surveyor) using a Leica GS12 GNSS
(GPS) survey system.
Down hole surveys were undertaken by
* Specification of the grid system used. the drilling contractor using a
Reflex Ex-Trac tool with
a reading taken approx. every 50m
* Quality and adequacy of topographic control. down the hole.
During the August 2018 site visit
Cube made independent verification of
the collar surveys
of three diamond core in progress
holes (PWD409, 408 and 407) which
were all found to be within
an acceptable tolerance of the
planned and reported coordinates.
Cube also verified the coordinated
positions of laid out grade control
planned holes on the pit floor.
Grid system is based on the UTM28N
grid on the WGS84 ellipsoid. Survey
heights are based on
PRS097 (with independent checks on
AusPos) and are orthometric (i.e.
msl).
A topographic surface was provided
based on a one metre resolution
satellite DTM surface of
Central Mako, including the Petowal
prospect area, and a number of
smaller resolution (10m
x 10m) data files derived from the
one metre source data. Cube utilised
the smaller resolution
data (10m x 10m) for all validation
and estimation purposes.
===================================== ================================================================== ======================================
Data spacing and distribution
* Data spacing for reporting of Exploration Results. Data spacing is variable being in the
range of 80m x 40m to 20m x 20m.
Additionally, a significant
* Whether the data spacing and distribution is area of grade control drilling at 10m
sufficient to establish the degree of geological and x 10m has been completed defining a
grade continuity appropriate for the Mineral Resource volume of approximately
and Ore Reserve estimation procedure(s) and four million BCM. This spacing is
classifications applied. adequate to determine the geological
and grade continuity
for reporting of Measured, Indicated
* Whether sample compositing has been applied. and Inferred Mineral Resources.
Drill samples were composited to 3m
for use in the estimate.
===================================== ================================================================== ======================================
Orientation of data in relation to
geological structure * Whether the orientation of sampling achieves unbiased The drill hole orientation was
sampling of possible structures and the extent to designed to intersect the
which this is known, considering the deposit type. mineralisation orthogonal to dip
and strike of the major
mineralisation bodies. The majority
* If the relationship between the drilling orientation of drill hole azimuths were between
and the orientation of key mineralised structures is 140deg and 160 with dips varying from
considered to have introduced a sampling bias, this -50 to -80 below horizontal. For a
should be assessed and reported if material. small number of holes,
different orientations were selected
to target different portions of the
mineralisation depending
on localised mineralised structures
or features.
The preliminary RC grade control
programme drilling was
all vertical (azimuth of 0 and dip of
-90 ). Mine grade control during 2017
and 2018 was
primarily drilled on azimuth 140
dipping -60 .
Drilling primarily targeted the FEL
unit which contained the most
significant mineralisation
and dipped at about 20-30 to the
northwest near surfa ce, steepening
to about 45 dip at depth.
The drilling orientation is adequate
for a non-biased assessment of the
orebody with respect
to interpreted structures and
interpreted controls on
mineralisation.
===================================== ================================================================== ======================================
Sample security
* The measures taken to ensure sample security. Labelling and submission of samples
complies with industry standard.
===================================== ================================================================== ======================================
Audits or reviews
* The results of any audits or reviews of sampling An independent audit of the sample
techniques and data. preparation laboratory has been
undertaken in 2018 (Fis,
2018) and the review undertaken at
the project by Cube in August 2018
and both found no material
issues with the sampling methods or
data.
===================================== ================================================================== ======================================
Section 2 Reporting of Exploration Results
CRITERIA JORC CODE EXPLANATION COMMENTARY
======================= ================================================================== =======================
Mineral tenement and
land tenure status * Type, reference name/number, location and ownership To date no exploration
including agreements or material issues with third results have been
parties such as joint ventures, partnerships, reported on a granted
overriding royalties, native title interests, exploration permit,
historical sites, wilderness or national park and owned
environmental settings. 100% by Petowal Mining
Company SA (Petowal).
The permit is in good
* The security of the tenure held at the time of standing.
reporting along with any known impediments to
obtaining a licence to operate in the area.
========================= ================================================================ =========================
Exploration done by
other parties * Acknowledgment and appraisal of exploration by other Exploration has been
parties. performed by Mako
Exploration Company SARL
("MEC"), 100% owned by
TORO.
========================= ================================================================ =========================
Geology
* Deposit type, geological setting and style of It is currently
mineralisation. interpreted that the
northeast striking
structure controlled the
flow of
the gold bearing
hydrothermal fluids,
with the preferential
chemistry/rheology of
the felsic
volcanic horizon acting
as a favourable horizon
for silicification and
the deposition of the
gold-pyrite mineral
assemblage. Intensity of
gold mineralisation
appears to correlate
with
the intensity of pyrite
development and exhibits
good lateral and
vertical continuity
through
the mineralised zone.
Mineralisation has a
relatively simple
geometry comprising a
zone that varies from 30
to 60m
in width, along the
1,700m strike length
drilled to date. The
zone dips approximately
20-30
to the northwest near
surface, steepening to
approximately 45 dip
at depth.
========================= ================================================================ =========================
Drill hole Information
* A summary of all information material to the Easting, Northing and RL
understanding of the exploration results including a of the drill hole
tabulation of the following information for all collars are based on the
Material drill holes: UTM28N grid on the WGS84
ellipsoid. Survey
heights are based on
o easting and northing of the drill hole collar PRS097 (with independent
o elevation or RL (Reduced Level - elevation above sea checks on AusPos) and
level in metres) of the drill hole are
collar orthometric (i.e. msl).
o dip and azimuth of the hole The MRE has used drill
o down hole length and interception depth hole collar RL derived
o Whole length. from the topographical
* If the exclusion of this information is justified on surface.
the basis that the information is not Material and Dip is the inclination
this exclusion does not detract from the of the hole from the
understanding of the report, the Competent Person horizontal. For example,
should clearly explain why this is the case. a vertically down
drilled
hole from the surface is
-90deg. Azimuth is
reported in degrees as
the grid direction
toward
which the hole is
drilled.
Down hole length of the
hole is the distance
from the surface to the
end of the hole, as
measured
along the drill trace.
Intersection depth is
the distance down the
hole as measured along
the drill trace.
Intersection width is
the downhole distance of
an intersection as
measured
along the drill trace.
Drill hole length is the
distance from the
surface to the end of
the hole, as measured
along
the drill trace.
========================= ================================================================ =========================
Data aggregation methods
* In reporting Exploration Results, weighting averaging Gold assay intercepts
techniques, maximum and/or minimum grade truncations were composited to 3m
(e.g. cutting of high grades) and cut-off grades are length down the hole,
usually Material and should be stated. using length weighting,
in order to provide a
uniform sample support
* Where aggregate intercepts incorporate short lengths size for grade
of high grade results and longer lengths of low grade estimation.
results, the procedure used for such aggregation High grade cuts have
should be stated and some typical examples of such been applied to gold
aggregations should be shown in detail. grade composites, but
only for use in
producing
* The assumptions used for any reporting of metal check estimates. The
equivalent values should be clearly stated. primary, reported
estimates were based on
a Uniform Conditioning
approach
which used cut grade
values.
The assay intervals are
reported as down hole
length as the true width
variable is not known.
Gold assays are rounded
to two decimal places.
No metal equivalent
reporting is used or
applied.
========================= ================================================================ =========================
Relationship between
mineralisation widths * These relationships are particularly important in the The intersection width
and intercept lengths reporting of Exploration Results. is measured down the
hole trace and may not
be the true width.
* If the geometry of the mineralisation with respect to All drill results are
the drill hole angle is known, its nature should be downhole intervals only
reported. due to the variable
orientation of the
mineralisation.
* 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 sections (with scales) and A plan view is contained
tabulations of intercepts should be included for any within this document.
significant discovery being reported These should New cross-sectional
include, but not be limited to a plan view of drill interpretations are
hole collar locations and appropriate sectional included.
views.
========================= ================================================================ =========================
Balanced reporting
* Where comprehensive reporting of all Exploration Diamond and RC drill
Results is not practicable, representative reporting holes forming the basis
of both low and high grades and/or widths should be of the Mineral Resource
practiced to avoid misleading reporting of estimate have been
Exploration Results. reported
previously as part of
the 2018 MRE. Additional
drilling has informed
the 2018 update.
========================= ================================================================ =========================
Other substantive
exploration data * Other exploration data, if meaningful and material, No other exploration
should be reported including (but not limited to): data is considered
geological observations; geophysical survey results; meaningful and material
geochemical survey results; bulk samples - size and to this document.
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 planned further work (e.g. Future exploration may
tests for lateral extensions or depth extensions or involve the drilling of
large-scale step-out drilling). more drill holes, both
diamond core and reverse
circulation, to further
* Diagrams clearly highlighting the areas of possible extend the mineralised
extensions, including the main geological zones and to collect
interpretations and future drilling areas, provided additional detailed data
this information is not commercially sensitive. on known mineralized
zones. Geophysical
exploration is also
planned as part of the
future
exploration of the
permit.
========================= ================================================================ =========================
Sec t ion 3 Es tim a tion and Reporting of M ineral Re sourc es
CRITERIA JORC CODE E XP L A N A T I ON CO M M ENT ARY
================= ============================================================== ==============================================
Database
integrity * Measures taken to ensure that data has not been Database is maintained by PMC
corrupted by, for ex amp le, t ranscr ipti on or who compile and validate all data
keying errors, between its ini t i al c o llec t ion files on the project.
and its use for Mi neral Resource esti mati on pur Cube completed validation checks
poses. on the database including checks
for overlapping sample intervals,
checks on minimum and maximum
* Data v a l idat ion procedures used. assays, depths, azimuths, dips
and co-ordinates for consistency.
No material errors were identified.
Cube undertook site based checks
of the raw assay data to verify
that grade intersections were
consistent with a visual inspection
of mineralisation in the core.
A number of drill hole collar
positions were also verified in
the field.
=============== ================================================================ ================================================
Site visits
* Comment on any site visits undertaken by the The competent Person (Marcus
Competent Person and the outcome of those visits. Osiejak) has not conducted a site
visit.
The previous Competent Person
* If no site visits have been undertaken indicate why (Patrick Adams) a current employee
this is the case. of Cube Consulting conducted a
site visit to the Mako Project
between 8th and 14th February
2014 and 11th to 14th August 2018
and undertook independent inspection
of all pertinent aspects of the
project.
=============== ================================================================ ================================================
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the The geological confidence is
geological interpretation of the mineral deposit. considered by Cube to be moderate
to high.
The mineralised volume at Petowal
* Nature of the data used and of any assumptions made. has been based on a drill section
interpretation of mineralisation
defined by a lower limit gold
* The effect, if any, of alternative interpretations on grade of 0.2 g/t Au, along with
Mineral Resource estimation. the observed close association
between mineralisation and the
felsic lithological unit. The
* The use of geology in guiding and controlling Mineral overall shape and trend of the
Resource estimation. mineralisation was guided by the
form of the felsic unit and its
contacts with the surrounding
* The factors affecting continuity both of grade and basalt. Four mineralisation domains,
geology. the first contained within the
felsic unit, the second and third
in the adjacent footwall basalt
and the fourth in the hanging
wall basalt unit, were defined
(Domains 100 200 300 400, respectively).
A separate Domain (500) was created
based on mineralisation 450m northwest
of the Mako deposit. An overall
envelope, called Domain 1 encapsulating
all the material not contained
within Domains 100, 200, 300,
400 and 500 out to the limit of
drill coverage, was also created.
The resulting volumes encapsulate
the complete mineralised distribution
and produce a model that reduces
the risk of conditional bias that
could be introduced where the
constraining interpretation and
data selection is based on a significantly
higher grade than the natural
geological grade cut-off.
The factors affecting continuity
both of grade and geology are
most likely to be associated with
structural controls and local
complexity, the knowledge of which
is limited with the current spacing
of information. The broad approach
to the mineralisation modelling
is an attempt to model an unbiased
interpretation.
=============== ================================================================ ================================================
Dimensions
* The extent and variability of the Mineral Resource The gold mineralisation identified
expressed as length (along strike or otherwise), plan to date varies from 30m to 60m
width, and depth below surface to the upper and lower in width, along the 1,700m strike
limits of the Mineral Resource. length drilled to date. The zone
dips approximately 20-30 to the
northwest near surface, steepening
to approximately 45 dip at depth.
=============== ================================================================ ================================================
Estimation
and modelling * The nature and appropriateness of the estimation Three metre downhole composite
techniques technique(s) applied and key assumptions, including gold grade data were interpolated
treatment of extreme grade values, domaining, into 20mE x 20mN x 5mRL sized
interpolation parameters and maximum distance of panels using Ordinary Kriging
extrapolation from data points. If a computer (OK).
assisted estimation method was chosen include a The minimum number of composites
description of computer software and parameters used. was set at 8 and the maximum number
of composites was set at either
16 (Domain 100), 26 (Domain 200)
or 24 (Domains 300, 400 and 4000).
* The availability of check estimates, previous The maximum search ellipse radius
estimates and/or mine production records and whether was set at either 180m (Domain
the Mineral Resource estimate takes appropriate 100), 160 (Domain 200), 120m (Domain
account of such data. 300), 200m (Domain 400) or 300m
(Domain 4000). The orientation
of the variogram model and search
* The assumptions made regarding recovery of by- ellipse was dynamically set according
products. to the shape of the felsic hanging
wall and footwall, as well the
trend of high grade mineralisation
* Estimation of deleterious elements or other non-grade within the felsic unit.
variables of economic significance (e.g. sulphur for Change of Support (CoS) calculations
acid mine drainage characterization). were conducted, conditioned to
the panel grade estimates, for
selectivity on 5mE x 5mN x 2.5mRL
* In the case of block model interpolation, the block SMU-sized blocks in order to produce
size in relation to the average sample spacing and a recoverable resource estimate.
the search employed. The Gaussian-based Uniform Conditioning
approach was applied to the OK
check grade estimates. An information
* In the case of block model interpolation, the block effect correction was applied
size in relation to the average sample spacing and during the CoS calculations, to
the search employed. account for a future theoretical
grade control drill configuration
of 10mE x 10mN x 1mRL. The CoS
* Any assumptions behind modelling of selective mining process yields a set of array
units. variables, stored in the panel
block model, detailing the estimates
for tonnage, grade and metal above
* Any assumptions about correlation between variables. a range of grade cut-offs.
A process of localisation was
completed, by which the output
* Description of how the geological interpretation was of the CoS is mapped into single
used to control the resource estimates. grade estimate per 5mE x 5mN x
2.5mRL block in an SMU block model,
which comprises the final product
* Discussion of basis for using or not using grade of the grade estimation.
cutting or capping. Domain 500 was estimated using
ID2 methodology. Due to the limited
number of samples within the domain
* The process of validation, the checking process used, a robust variogram could not be
the comparison of model data to drill hole data, and produced. Two passes were used
use of reconciliation data if available. with second pass having double
the initial search radii of 45m.
Surpac Mining software 6.9 and
Isatis were used for estimation.
No by-product recoveries were
considered.
Estimations of density were also
made with this Mineral Resource
estimation.
Block model validation was undertaken
globally by comparing the mean
LUC block grade estimates to the
mean of the informing composite
grades on a domain by domain basis.
The LUC estimates were also compared
to the mean grade of a check ID(2)
estimation.
=============== ================================================================ ================================================
Moisture
* Whether the tonnages are estimated on a dry basis or Moisture was not considered in
with natural moisture, and the method of the density assignment.
determination of the moisture content.
=============== ================================================================ ================================================
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality A nominal lower cut-off grade
parameters applied. of 0.2g/t Au was used to define
the mineralised domains to encompass
the complete mineralised distribution
and produce a model that reduces
the risk of conditional bias that
could be introduced where the
constraining interpretation and
data selection is based on a significantly
higher grade than the natural
geological grade
cut-off.
The cut-off grade for reporting
(above 0.5g/t Au) was used in
line with the previous resource
reporting and is based on the
results of Whittle optimisation
shells using cost and recovery
data sourced from the operation
of the open pit mine by PMC during
2017-18.
A Whittle optimisation shell using
these operational costs and a
gold price of US$2,000/ounce has
been used to limit the reported
MRE to that with reasonable expectations
of economic exploitation.
=============== ================================================================ ================================================
Mining factors
or assumptions * Assumptions made regarding possible mining methods, The shallow occurrence of the
minimum mining dimensions and internal (or, if mineralisation indicates that
applicable, external) mining dilution. open pit mining is appropriate
for Petowal in line with other
deposits in the area.
* It is always necessary as part of the process of The estimation methodology used
determining reasonable prospects for eventual results in an amount of edge dilution
economic extraction to consider potential mining being incorporated into the blocks
methods, but the assumptions made regarding mining of the model. No account of mining
methods and parameters when estimating Mineral loss has been incorporated.
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 assumptions or predictions regarding No specific assumptions were
assumptions metallurgical amenability. It is always necessary as made regarding metallurgical factors
part of the process of determining reasonable for this estimate.
prospects for eventual economic extraction to Metallurgical test work on the
consider potential metallurgical methods, but the mineralisation commenced in 2012
assumptions regarding metallurgical treatment and is ongoing.
processes and parameters made when reporting Mineral
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 regarding possible waste and process No assumptions were made regarding
assumptions residue disposal options. It is always necessary as environmental restrictions.
part of the process of determining reasonable
prospects for eventual economic extraction to
consider the potential environmental impacts of the
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a green fields 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 determined. If assumed, the basis Specific gravity values for the
for the assumptions. If determined, the method used, Petowal Prospect have been measured
whether wet or dry, the frequency of the measurements, based on the Archimedean Principle
the nature, size and representativeness of the using the immersion method for
samples. individual core samples. A total
of 16,078 density measurements
were available for use, with the
* The bulk density for bulk material must have been vast majority of these being in
measured by methods that adequately account for void fresh rock below the saprock and
spaces (vugs, porosity, etc), moisture and laterite domains. This data has
differences between rock and alteration zones within been used as the basis of the
the deposit. block model bulk density.
Visual inspection shows a clear
relationship between lithology
* Discuss assumptions for bulk density estimates used and density in fresh rock. No
in the evaluation process of the different materials. relationship between density and
sulphur content or gold content
could be established.
A default bulk density of 1.70t/m(3)
was assigned to the thin laterite
horizon capping the deposit and
to the underlying saprock.
A default bulk density of 2.46t/m(3)
was assigned to soft (oxidised?)
rock.
In fresh rock, Ordinary Kriging
was used to estimate density,
with the variogram and search
neighbourhood being dynamically
oriented as per the gold grade
estimation. Default values for
un-estimated fresh rock were set
as undifferentiated rock=2.86t/m(3)
; fresh UBU 2.99t/m(3) ; fresh
LBU 2.96t/m(3) and fresh FEL 2.75t/m(3,)
fresh RHD 2.69t/m(3) .
=============== ================================================================ ================================================
Classification
* The basis for the classification of the Mineral The Measured, Indicated and Inferred
Resources into varying confidence categories. classification is based on the
confidence in the continuity of
geology and mineralisation and
* Whether appropriate account has been taken of all quality/confidence in the estimation
relevant factors (i.e. relative confidence in and quality of assay data and
tonnage/grade estimations, reliability of input data, bulk density data. Sectional wireframe
confidence in continuity of geology and metal values, interpretations encompass material
quality, quantity and distribution of the data). of Measured and Indicated classification.
The classification is Measured
where it is informed by 20m spaced
* Whether the result appropriately reflects the drilling on 20m spaced sections
Competent Person's view of the deposit. or better, the slope of regression
estimation quality parameter is
greater than 0.8. It is classified
as Indicated where it is informed
by 20m to 40m spaced drilling
on 40m spaced sections or better,
the slope of regression estimation
quality parameter is greater than
0.7.
Inferred classification is informed
by 40m spaced drilling on 80m
spaced sections, or better.
The Mineral Resource estimate
appropriately reflects the Competent
Person's view of the deposit.
=============== ================================================================ ================================================
Audits or
reviews * The results of any audits or reviews of Mineral No external reviews have been
completed.
* Resource estimates.
=============== ================================================================ ================================================
Discussion
of relative * Where appropriate a statement of the relative Although the estimate for gold
accuracy/ accuracy and confidence level in the Mineral Resource is considered to be without bias,
confidence estimate using an approach or procedure deemed it is for the some of the estimated
appropriate by the Competent Person. For example, the volume based on relatively wide
application of statistical or geostatistical spaced data. The estimate is therefore
procedures to quantify the relative accuracy of the of moderate confidence and expected
resource within stated confidence limits, or, if such to be of moderate relative accuracy
an approach is not deemed appropriate, a qualitative at the local (SMU) scale when
discussion of the factors that could affect the drilling density exceeds 20m x
relative accuracy and confidence of the estimate. 20m. Infill grade control drilling
will be required to improve the
confidence of the local estimate.
* The statement should specify whether it relates to The LUC estimate has been compared
global or local estimates, and, if local, state the to ID estimates and in a limited
relevant tonnages, which should be relevant to volume to an OK estimate of close
technical and economic evaluation. Documentation spaced grade control drilling.
should include assumptions made and the procedures Differences have been identified,
used. however these do not exceed expectations
and no material issues have been
identified in these comparisons
* These statements of relative accuracy and confidence and the LUC estimate appropriately
of the estimate should be compared with production represents the source data.
data, where available.
=============== ================================================================ ================================================
Sec t ion 4 Es tim a tion and Reporting of Ore Re serves
CRITERIA JORC CODE E XP L A N A T I ON CO M M ENT ARY
================= ====================================================================== =================================================================
Mineral
Resource * Description of the Mineral Resource estimate used as Ore Reserves are the material
estimate a basis for the conversion to an Ore Reserve. reported as a sub-set of the resource,
for conversion that which can be extracted from
to Ore Reserves the mine and processed with an
* Clear statement as to whether the Mineral Resources economically acceptable outcome.
are reported additional to, or inclusive of, the Ore Mineral Resources are reported
Reserve. inclusive of Ore Reserves
=================== ================================================================== =====================================================================
Site visits
* Comment on any site visits undertaken by the The Competent Person, Mr Kitwa
Competent Person and the outcome of those visits. Ndjibu, is a full-time employee
of Resolute Mining Ltd and a Member
of the Australasian Institute
* If no site visits have been undertaken indicate why of Mining and Metallurgy. He conducted
this is the case. a site visit to the project area
in October 2022.
=================== ================================================================== =====================================================================
Study status
* The type and level of study undertaken to enable A mining study update was conducted
Mineral Resources to be converted to Ore Reserves. by Mining Focus Consultants Pty
Ltd in July 2020 based on the
2015 Definitive feasibility study
* The Code requires that a study to at least Mako open pit has been in continuous
Pre-Feasibility Study level has been undertaken to mining operation since August
convert Mineral Resources to Ore Reserves. Such 2017. During this time the performance
studies will have been carried out and will have of the open pit has shown a positive
determined a mine plan that is technically achievable reconciliation between mineral
and economically viable, and that material Modifying resources and gold production
Factors have been considered. and delivered positive cashflows.
Primary contributors to the study
were:
-- Mining Focus Consultants
=================== ================================================================== =====================================================================
Cut-off
parameters * The basis of the cut-off grade(s) or quality A Mill breakeven cut-off grade
parameters applied. (COG) change from 0.6 g/t to 0.9
g/t gold has been applied for
Mako to account for the increase
to the long-term processing costs.
.
=================== ================================================================== =====================================================================
Mining factors
or assumptions * The method and assumptions used as reported in the * Mako operations are open pit mining methods. Whittle
Pre-Feasibility or Feasibility Study to convert the pit shell optimisations were conducted as component
Mineral Resource to an Ore Reserve (i.e. either by of the mining study.
application of appropriate factors by optimization or
by preliminary or detailed design).
* Ground conditions at Mako are good with overall slope
angle 55deg with batter face angle of 75deg.
* The choice, nature and appropriateness of the
selected mining method(s) and other mining parameters
including associated design issues such as pre-strip, * Footwall slope is on average 45 degrees in line with
access, etc. the dip of the orebody.
* The assumptions made regarding geotechnical * The Resource model was a diluted model; no additional
parameters (e.g. pit slopes, stope sizes, etc.), dilution is required.
grade control and pre-production drilling.
* 95% Mining recovery used.
* The major assumptions made and Mineral Resource model
used for pit and stope optimization (if appropriate).
* No Inferred Mineral Resource is included within the
Reserve.
* The mining dilution factors used.
* No additional infrastructure is required for the
* The mining recovery factors used. remaining mine
* Any minimum mining widths used.
* The manner in which Inferred Mineral Resources are
utilized 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 process proposed and the * Different recovery is used for different ore types.
assumptions appropriateness of that process to the style of Basalt and Felsic ore have 90% and 95% recoveries
mineralization. respectively. The mentioned recoveries are in line
with current plant performance.
* Whether the metallurgical process is well-tested
technology or novel in nature. * Recovery process is well tested and performing to
expectation.
* The nature, amount and representativeness of
metallurgical test work undertaken, the nature of the * No deleterious elements, no organics or other
metallurgical domaining applied and the corresponding elements impacting on Au recovery.
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 ore body 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 potential environmental No acid generation from the waste
impacts of the mining and processing operation. dumps have been observed in line
Details of waste rock characterization and the with test work expectations. No
consideration of potential sites, status of design acid forming metallurgy within
options considered and, where applicable, the status waste rock material.
of approvals for process residue storage and waste
dumps should be reported.
=================== ================================================================== =====================================================================
Infrastructure
* The existence of appropriate infrastructure: All infrastructure for the Mako
availability of land for plant development, power, project has been completed.
water, transportation (particularly for bulk Water supply dams, TSF dams have
commodities), labour, accommodation; or the ease with been completed with ongoing TSF
which the infrastructure can be provided, or lifts planned through the remaining
accessed. mine life. All power station and
camp accommodation infrastructure
has been completed.
=================== ================================================================== =====================================================================
Costs
* The derivation of, or assumptions made, regarding Royalties paid are variable dependent
projected capital costs in the study. on gold price At 1500 the gold
royalty is 3.53%. at 1800 $/oz
the royalty is 3.8%
* The methodology used to estimate operating costs. Costs used are taken from mine
actuals and Mining contractor
unit rates.
* Allowances made for the content of deleterious
elements.
* The derivation of assumptions made of metal or
commodity price(s), for the principal minerals and
co- products.
* The source of 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 assumptions made regarding A gold price of US$1,500/oz formed
revenue factors including head grade, metal or the basis of the Ore Reserves.
commodity price(s) exchange rates, transportation and Gold price used for planning purposes
treatment charges, penalties, net smelter returns, are from consensus forecasts provided
etc. by external corporate advisers.
No penalties are incurred for
deleterious material
* The derivation of assumptions made of metal or No revenue received from co-products.
commodity price(s), for the principal metals,
minerals and co-products.
=================== ================================================================== =====================================================================
Market assessment
* The demand, supply and stock situation for the The market for gold is robust
particular commodity, consumption trends and factors with prevailing gold price being
likely to affect supply and demand into the future. well above US$1,500/oz.
Supply and demand are not considered
material to the Ore Reserve calculations.
* 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 economic analysis to produce the The financial evaluation undertaken
net present value (NPV) in the study, the source and as part of the evaluation indicated
confidence of these economic inputs including a positive net present value (NPV)
estimated inflation, discount rate, etc. at a 7% annual discount rate.
The following major economic inputs
were used:
* NPV ranges and sensitivity to variations in the -- Costs as previously described.
significant assumptions and inputs. -- Gold price of US$1500/oz.
-- Royalties of 3.5%.
=================== ================================================================== =====================================================================
Social
* The status of agreements with key stakeholders and The government of Senegal has
matters leading to social license to operate. a 10% free carried interest in
the operation.
No other stakeholder agreements
in place.
=================== ================================================================== =====================================================================
Other
* To the extent relevant, the impact of the following No additional naturally occurring
on the project and/or on the estimation and risks. No flood risk, low seismicity
classification of the Ore Reserves: risk.
* Any 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 classification of the Ore Reserves The Ore Reserve estimate appropriately
into varying confidence categories. reflects the Competent Person's
view of the deposit.
* Whether the result appropriately reflects the
Competent Person's view of the deposit.
* The proportion of Probable Ore Reserves that have
been derived from Measured Mineral Resources (if
any).
=================== ================================================================== =====================================================================
Audits or
reviews * The results of any audits or reviews of Ore Reserve
estimates.
=================== ================================================================== =====================================================================
* Where appropriate a statement of the relative
accuracy and confidence level in the Ore Reserve
estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the
Discussion application of statistical or geostatistical
of relative procedures to quantify the relative accuracy of the
accuracy/ reserve within stated confidence limits, or, if such
confidence 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 recognized 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.
Syama North
Section 1 Sampling Techniques and Data
CRITERIA JORC CODE EXPLANATION COMMENTARY
======================================= ================================================================ ====================================
Sampling techniques
* Nature and quality of sampling (e.g. cut channels, The samples were collected from
random chips, or specific specialised industry reverse circulation (RC) and diamond
standard measurement tools appropriate to the drill holes.
minerals under investigation, such as down hole gamma RC samples were collected on 1m
sondes, or handheld XRF instruments, etc.). These intervals by riffle split (dry) or by
examples should not be taken as limiting the broad scoop (wet), to obtain
meaning of sampling. a 1-3kg sample which was sent to the
laboratory for crushing, splitting
and pulverising to
* Include reference to measures taken to ensure sample provide a 30g charge for analysis.
representivity and the appropriate calibration of any Following splitting adjacent to the
measurement tools or systems used. bottom-of-hole orientation
line, the right-hand side of the core
is sampled in 1m intervals
* Aspects of the determination of mineralisation that Sampling and sample preparation
are Material to the Public Report. protocols are industry standard and
are deemed appropriate
by the Competent Person.
* 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, reverse circulation, open-hole Drill types used include reverse
hammer, rotary air blast, auger, Bangka, sonic, etc.) circulation with face sampling bit
and details (e.g. core diameter, triple or standard and core drilling using
tube, depth of diamond tails, face-sampling bit or PQ and HQ sized bits. A digital core
other type, whether core is oriented and if so, by orientation system is used to define
what method, etc.). the bottom of the
hole which is transferred to the
drilled core..
===================================== ================================================================== ======================================
Drill sample recovery Appropriate measures are taken to
* Method of recording and assessing core and chip maximise sample recovery and ensure
sample recoveries and results assessed. the representative nature
of the samples.
No apparent relationship is noted
* Measures taken to maximise sample recovery and ensure between sample recovery and grade.
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 samples have been geologically Drill holes were geologically logged
and geotechnically logged to a level of detail to by geologists for colour, grainsize,
support appropriate Mineral Resource estimation, lithology, minerals,
mining studies and metallurgical studies. alteration and weathering on
geologically-domained intervals.
Holes were logged in their entirety
* Whether logging is qualitative or quantitative in (100%) and this logging was
nature. Core (or costean, channel, etc.) photography. considered reliable and appropriate.
* The total length and percentage of the relevant
intersections logged.
===================================== ================================================================== ======================================
Sub-sampling techniques and sample
preparation * If core, whether cut or sawn and whether quarter, Reverse circulation samples were
half or all core taken. collected on 1m intervals by riffle
split (dry) or by scoop
(wet) to obtain a 1-3kg sample. Core
* If non-core, whether riffled, tube sampled, rotary samples were sawn using a diamond saw
split, etc. and whether sampled wet or dry. blade with half
of the core sent for analysis.
Sample preparation includes oven
* For all sample types, the nature, quality and drying, crushing to 10mm, splitting
appropriateness of the sample preparation technique. and pulverising to 85%
passing -75um. These preparation
techniques are deemed to be
* Quality control procedures adopted for all appropriate to the material being
sub-sampling stages to maximise representivity of sampled.
samples. Reverse circulation and core field
duplicates were collected by the
company at a rate of 1:20
* Measures taken to ensure that the sampling is samples.
representative of the in situ material collected, Sampling, sample preparation and
including for instance results for field quality control protocols are of
duplicate/second-half sampling. industry standard and all
attempts were made to ensure an
unbiased representative sample was
* Whether sample sizes are appropriate to the grain collected. The methods
size of the material being sampled. applied in this process were deemed
appropriate by the Competent Person.
===================================== ================================================================== ======================================
Quality of assay data and laboratory
tests * The nature, quality and appropriateness of the All samples were dispatched to ALS
assaying and laboratory procedures used and whether Bamako for gold analysis by 30g fire
the technique is considered partial or total. assay fusion with
AAS instrument finish (method code
Au-AA25). Over-range results were
* For geophysical tools, spectrometers, handheld XRF re-analysed and reported
instruments, etc., the parameters used in determining by 30g fire assay fusion with
the analysis including instrument make and model, gravimetric finish (method code
reading times, calibrations factors applied and their Au-GRA21). The analytical method
derivation, etc. was appropriate for the style of
mineralisation.
No geophysical tools were used to
* Nature of quality control procedures adopted (e.g. determine elemental concentrations.
standards, blanks, duplicates, external laboratory Quality control (QC) procedures
checks) and whether acceptable levels of accuracy included the use of certified
(i.e. lack of bias) and precision have been standards (1:40), non-certified
established. sand blanks (1:40) and reverse
circulation/core field duplicates
(1:20).
Laboratory quality control data,
including laboratory standards,
blanks, duplicates, repeats,
grind size results and sample weights
were also captured into the digital
database.
Analysis of the QC sample assay
results indicates that an acceptable
level of accuracy and
precision has been achieved.
===================================== ================================================================== ======================================
Verification of sampling and
assaying * The verification of significant intersections by Verification of significant
either independent or alternative company personnel. intersections have been completed by
company personnel and the
Competent Person.
* The use of twinned holes. No drill holes within the resource
area were twinned.
Drill holes were logged into digital
* Documentation of primary data, data entry procedures, templates with lookup codes,
data verification, data storage (physical and validated and then compiled
electronic) protocols. into a relational SQL 2012 database
using DataShed data management
software. The database
* Discuss any adjustment to assay data. has verification protocols which are
used to validate the data entry. The
drill hole database
is backed up on a daily basis to the
head office server.
Assay result files were reported by
the laboratory in PDF and CSV format
and imported into
the SQL database without adjustment
or modification.
===================================== ================================================================== ======================================
Location of data points
* Accuracy and quality of surveys used to locate drill Collar coordinates were picked up in
holes (collar and down-hole surveys), trenches, mine UTM (WGS84) by staff surveyors using
workings and other locations used in Mineral Resource an RTK DGPS with
estimation. an expected accuracy of +/-0 .05m;
elevations were height above EGM96
geoid.
* Specification of the grid system used. Down hole surveys were collected at
10m intervals using a Reflex EZ-Gyro
north seeking instrument.
* Quality and adequacy of topographic control. Coordinates and azimuths are reported
in UTM WGS84 Zone 29 North.
Tabakoroni drill holes were
translated to local mine grid
coordinates using 1 point and
rotation.
Local topographic control is via
LIDAR surveys, satellite photography
and drone UAV aerial
survey.
===================================== ================================================================== ======================================
Data spacing and distribution Drill hole spacing was sufficient to
* Data spacing for reporting of Exploration Results. demonstrate geological and grade
continuity appropriate
for a Mineral Resource and the
* Whether the data spacing and distribution is classifications applied under the
sufficient to establish the degree of geological and 2012 JORC Code.
grade continuity appropriate for the Mineral Resource The appropriateness of the drill
and Ore Reserve estimation procedure(s) and spacing was reviewed by the
classifications applied. geological technical team, both
on site and head office. This was
also reviewed by the Competent
* Whether sample compositing has been applied. Person.
Samples were collected on 1m
intervals; no sample compositing is
applied during sampling.
===================================== ================================================================== ======================================
Orientation of data in relation to Holes were drilled predominantly
geological structure * Whether the orientation of sampling achieves unbiased perpendicular to mineralised domains
sampling of possible structures and the extent to where possible.
which this is known, considering the deposit type. No orientation-based sampling bias
has been identified in the data.
* 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 ensure sample security. Samples were collected from the drill
site and stored on site. All samples
were individually
bagged and labelled with unique
sample identifiers, then securely
dispatched to the laboratories.
All aspects of sampling and dispatch
process were supervised and tracked
by SOMIFI personnel.
===================================== ================================================================== ======================================
Audits or reviews
* The results of any audits or reviews of sampling External audits of procedures
techniques and data. indicate protocols are within
industry standards.
===================================== ================================================================== ======================================
Section 2 Reporting of Exploration Results
CRITERIA JORC CODE EXPLANATION COMMENTARY
=============== ================================================================== ============================================================
Mineral tenement
and land tenure * Type, reference name/number, location and ownership Drilling at Syama North was conducted within the Malian
status including agreements or material issues with third Exploitation Concession Permit PE
parties such as joint ventures, partnerships, 93/003 which covers an area of 200.6 Km2.
overriding royalties, native title interests, Resolute Mining Limited has an 80% interest in the Syama
historical sites, wilderness or national park and project and the Exploitation Permit
environmental settings. PE 93/003, on which it is based, through its Malian
subsidiary, Sociêtê des Mines
de Syama SA (SOMISY). The Malian Government holds a free
* The security of the tenure held at the time of carried 20% interest in SOMISY.
reporting along with any known impediments to Tabakoroni drilling was completed within the
obtaining a licence to operate in the area. Finkolo-Tabakoroni Exploitation Licence PE 13/19.
Resolute Mining Limited has an 90% interest in Exploitation
Permit PE 13/19, through its Malian
subsidiary, Société des Mines de Finkolo SA
(SOMIFI). The Malian Government holds
a free carried 10% interest in SOMIFI.
The Permits are held in good standing. Malian mining law
provides that all Mineral Resources
are administered by DNGM (Direction Nationale de la
Géologie et des Mines) or National
Directorate of Geology and Mines under the Ministry of
Mines, Energy and Hydrology.
================= ================================================================ ==============================================================
Exploration done
by other parties * Acknowledgment and appraisal of exploration by other The Syama and Syama North deposits were originally
parties. discovered by a regional geochemical survey
undertaken by the Direction National de Géologie et des
Mines (DNGM) with assistance
from the United Nations Development Program (UNDP) in 1985.
There had also been a long history
of artisanal activities on the hill where an outcropping
chert horizon originally marked the
present day position of the open pit.
BHP during 1987-1996 sampled pits, trenches, auger, RC and
diamond drill holes across Syama
prospects. Randgold Resources Ltd during 1996-2000 sampled
pits, trenches, auger, RAB, RC
and diamond drill holes across Syama prospects.
================= ================================================================ ==============================================================
Geology
* Deposit type, geological setting and style of The Syama Project is found on the northern margin of the
mineralisation. Achaean-Proterozoic Leo Shield which
forms the southern half of the West African Craton. The
project area straddles the boundary
between the Kadiana-Madinani terrane and the Kadiolo terrane.
The Kadiana-Madinani terrane
is dominated by greywackes and a narrow belt of interbedded
basalt and argillite. The Kadiolo
terrane comprises polymictic conglomerate and sandstone that
were sourced from the Kadiana-Madinani
terrane and deposited in a late- to syntectonic basin.
Prospects are centred on the NNE striking, west dipping,
Syama-Bananso Fault Zone and Birimian
volcano-sedimentary units of the Syama Formation. The major
commodity being sought is gold.
================= ================================================================ ==============================================================
Drill hole All information, including easting, northing, elevation, dip,
Information * A summary of all information material to the azimuth, coordinate system,
understanding of the exploration results including a drill hole length, intercept length and depth are measured
tabulation of the following information for all and recorded in UTM Zone 29 WGS84.
Material drill holes: The Syama belt is mostly located on the Tengrela 1/200,000
topo sheet (Sheet NC 29-XVIII).
The Tabakoroni local grid has been tied to the UTM Zone 29
o easting and northing of the drill hole collar WGS84 co-ordinate system.
o elevation or RL (Reduced Level - elevation above sea Spectrum Survey & Mapping from Australia established survey
level in metres) of the drill hole control at Tabakoroni using AusPos
collar online processing to obtain an accurate UTM Zone 29 (WGS84)
o dip and azimuth of the hole and 'above geoid' RL for the origin
o down hole length and interception depth of the survey control points.
o Whole length. Accuracy of the survey measurements is considered to meet
* If the exclusion of this information is justified on acceptable industry standards.
the basis that the information is not Material and Drill hole information has been tabulated for this release in
this exclusion does not detract from the the intercepts table of the
understanding of the report, the Competent Person accompanying text.
should clearly explain why this is the case. For completeness the following information about the drill
holes is provided:
* Easting, Northing and RL of the drill hole collars
are measured and recorded in UTM Zone 29 (WGS84)
* Dip is the inclination of the drill hole from
horizontal. A drill hole drilled at -60deg is 60deg
from the horizontal
* Down hole length is the distance down the inclination
of the hole and is measured as the distance from the
horizontal to end of hole
Intercept depth is the distance from the start of the hole
down the inclination of the hole
to the depth of interest or assayed interval of interest.
================= ================================================================ ==============================================================
Data aggregation
methods * In reporting Exploration Results, weighting averaging Exploration results reported in this announcement are
techniques, maximum and/or minimum grade truncations tabulated using the following parameters:
(e.g. cutting of high grades) and cut-off grades are * Grid coordinates are WGS84 Zone 29 North
usually Material and should be stated.
* Cut-off grade for reporting of intercepts is >=1g/t
* Where aggregate intercepts incorporate short lengths Au
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 * No top cut of individual assays prior to length
aggregations should be shown in detail. weighted compositing of the reported intercept has
been applied
* The assumptions used for any reporting of metal
equivalent values should be clearly stated. * Maximum 3m consecutive internal dilution included
within the intercept
Metal equivalent values are not used in reporting.
================= ================================================================ ==============================================================
Relationship
between * These relationships are particularly important in the The Syama North mineralisation is steeply dipping at
mineralisation reporting of Exploration Results. approximately 50 degrees from the horizontal.
widths and The majority of the drill holes are planned at a general
intercept inclination of --60 degrees east
lengths * If the geometry of the mineralisation with respect to and as close to perpendicular to the ore zone as possible.
the drill hole angle is known, its nature should be At the angle of the drill holes and the dip of the ore zones,
reported. the reported intercepts will
be slightly more than true width.
* 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 sections (with scales) and Relevant maps, diagrams and tabulations are included in the
tabulations of intercepts should be included for any body of text.
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 reporting of all Exploration Exploration results and infill drilling results are being
Results is not practicable, representative reporting reported in this announcement and
of both low and high grades and/or widths should be tabulated in the body of the text
practiced to avoid misleading reporting of
Exploration Results.
================= ================================================================ ==============================================================
Other
substantive * Other exploration data, if meaningful and material, No geophysical and geochemical data or any additional
exploration data should be reported including (but not limited to): exploration information has been reported
geological observations; geophysical survey results; in this release, as they are not deemed relevant to the
geochemical survey results; bulk samples - size and release.
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 planned further work (e.g. Future drilling at depth is planned.
tests for lateral extensions or depth extensions or
large-scale step-out drilling).
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
================= ================================================================ ==============================================================
Sec t ion 3 Es tim a tion and Reporting of M ineral Re sourc es
CRITERIA JORC CODE E XP L A N A T I ON CO M M ENT ARY
================= ============================================================== ============================================
Database
integrity * Measures taken to ensure that data has not been Data have been compiled into
corrupted by, for ex amp le, t ranscr ipti on or a relational SQL database; the
keying errors, between its ini t i al c o llec t ion setup of this database precludes
and its use for Mi neral Resource esti mati on pur the loading of data which do not
poses. meet the required validation protocols.
The data is managed using DataShed(c)
drill hole management software
* Data v a l idat ion procedures used. using SQL database techniques.
Validation checks are conducted
using SQL and DataShed(c) relational
database standards. Data has also
been checked against original
hard copies for 85% of the data,
and where possible, loaded from
original data sources.
Resolute carried out the following
basic validation checks on the
data supplied prior to resource
estimation:
Ø Drill holes with overlapping
sample intervals;
Ø Sample intervals with no
assay data or duplicate records;
Ø Assay grade ranges;
Ø Collar coordinate ranges;
Ø Valid hole orientation
data.
There are no significant issues
identified with the data.
=============== ================================================================ ==============================================
Site visits
* Comment on any site visits undertaken by the The Competent Person - Mr. Patrick
Competent Person and the outcome of those visits. Smillie - is a full time employee
of Resolute Mining Ltd, and a
member of the Society for Mining,
* If no site visits have been undertaken indicate why Metallurgy & Exploration, visited
this is the case. the site in November of 2022.
=============== ================================================================ ==============================================
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the The digital database used for
geological interpretation of the mineral deposit. the interpretation included logged
intervals for the key stratigraphic
zones.
* Nature of the data used and of any assumptions made. Drill density (25m by 50m) for
the majority of the deposit area
allows for interpretation of the
* The effect, if any, of alternative interpretations on geology and mineralized domains.
Mineral Resource estimation. More recent infill/verification
drilling of selected more structurally
complicated areas, confirms the
* The use of geology in guiding and controlling Mineral positions of mineralized zones.
Resource estimation. Geological and structural controls
support modelled mineralized zones.
Continuity of mineralization is
* The factors affecting continuity both of grade and affected by proximity to structural
geology. conduits, stratigraphic position,
lithology of key stratigraphic
units and porosity of host lithologies.
The interpretations for the weathering
surfaces have been compiled by
site geological personnel using
the drill hole database and the
logs identifying Oxide, Transitional
and Fresh material .
=============== ================================================================ ==============================================
Dimensions
* The extent and variability of the Mineral Resource The Syama North area extends
expressed as length (along strike or otherwise), plan for approximately 6,000 metres
width, and depth below surface to the upper and lower in strike and the west dipping
limits of the Mineral Resource. gold mineralised zone is between
200-500 metres in horizontal width.
The Mineral Resource is limited
in depth by drilling, which extends
from surface to a maximum depth
of approximately 350 metres vertically
.
=============== ================================================================ ==============================================
Estimation
and modelling * The nature and appropriateness of the estimation Estimation of gold grade has
techniques technique(s) applied and key assumptions, including been completed using Ordinary
treatment of extreme grade values, domaining, Kriging (OK).
interpolation parameters and maximum distance of The deposit mineralisation has
extrapolation from data points. If a computer been constrained by wireframes
assisted estimation method was chosen include a constructed using a combination
description of computer software and parameters used. of downhole gold assay and associated
lithological logging. These lode
wireframes have been used to define
domain codes used for estimation.
The drillholes have been flagged
with the domain code and composited
* The availability of check estimates, previous using the domain code to segregate
estimates and/or mine production records and whether the data.
the Mineral Resource estimate takes appropriate Domain boundary analysis has been
account of such data. undertaken, with hard boundaries
used for all domains.
Drillholes have been composited
* The assumptions made regarding recovery of by- to 1m intervals using Leapfrog
products. Geo 2021.2.5 with residual lengths
distributed evenly across all
composites. There are no residual
* Estimation of deleterious elements or other non-grade samples.
variables of economic significance (e.g. sulphur for The influence of extreme gold
acid mine drainage characterization). assays has been reduced by top-cutting
across selected domains. Top-cuts
have been determined using a combination
* In the case of block model interpolation, the block of log probability, log histogram,
size in relation to the average sample spacing and and mean-variance plots. Top-cuts
the search employed. have been reviewed and applied
to the composites on a domain-by-domain
basis.
* In the case of block model interpolation, the block Variography has been determined
size in relation to the average sample spacing and using Datamine Supervisor v.8.14
the search employed. software using top-cut values.
Where there is insufficient data
in individual domains to generate
* Any assumptions behind modelling of selective mining meaningful variograms, domains
units. have been grouped, or variograms
borrowed from other similar domains.
Drillhole data spacing ranges
* Any assumptions about correlation between variables. from 10m spacing in areas of dense
drilling to approximately 100m
spacing in sparsely drilled, deeper
* Description of how the geological interpretation was areas.
used to control the resource estimates. The block model parent block size
is 5m (X) by 10m (Y) by 5m (Z)
with sub-blocks down to 0.3125m
* Discussion of basis for using or not using grade (X) by 0.625m (Y) by 0.3125m (Z),
cutting or capping. with the sub-blocks estimated
at the scale of the parent block.
The block size is considered appropriate
* The process of validation, the checking process used, for the drillhole spacing throughout
the comparison of model data to drill hole data, and the deposit.
use of reconciliation data if available. Grade estimation has been completed
in three passes:
Ø Pass 1 estimation has been
undertaken using a minimum and
maximum number of sample composites
(determined using Datamine Supervisor
v.8.14 KNA tool) into a search
ellipsoid with dimensions equal
to half the variogram range of
the domain.
Ø Pass 2 estimation has been
undertaken with the same minimum/maximum
samples as Pass 1 into a search
ellipsoid twice the first pass.
Ø Pass 3 estimation has been
undertaken with a minimum of 4
samples, and the same maximum
number of samples as the first
two passes into a search ellipsoid
twice the second pass
Ø A four drillhole limit
has been applied to the passes.
Previous Mineral Resource estimates
are comparable in size and scope
when considering the additional
extensional drilling included
in the current estimate.
The Mineral Resource estimate
has been validated using visual
validation tools, mean grade comparisons
between the block model and declustered
composite grade means, and swath
plots comparing the input composite
grades and the block model grades
by Northing, Easting, and RL
No selective mining units are
assumed in the estimate.
There will be no by-products recovered
from mining.
No additional or deleterious elements
have been estimated.
The model focuses on interpreting
mineralisation beneath existing
open pits. Historical reconciliation
data is incomplete and has not
been used.
=============== ================================================================ ==============================================
Moisture
* Whether the tonnages are estimated on a dry basis or Tonnages are estimated on a dry
with natural moisture, and the method of basis. No moisture values have
determination of the moisture content. been reviewed.
=============== ================================================================ ==============================================
Cut-off A cut-off grade of 1.0 g/t Au
parameters * The basis of the adopted cut-off grade(s) or quality has been used for construction
parameters applied. of mineralised wireframes, based
on mining parameters of the nearby
Syama and Tabakoroni deposits.
=============== ================================================================ ==============================================
Mining factors
or assumptions * Assumptions made regarding possible mining methods, It is assumed that mining methods
minimum mining dimensions and internal (or, if would be similar to Resolute's
applicable, external) mining dilution. nearby Syama deposit.
Mining method for the extraction
of gold at Syama was previously
* It is always necessary as part of the process of by open pit mining excavating
determining reasonable prospects for eventual benches of 2.5 metres in height.
economic extraction to consider potential mining Grade control is conducted on
methods, but the assumptions made regarding mining sampling from high quality reverse
methods and parameters when estimating Mineral circulation drilling, spaced at
Resources may not always be rigorous. Where this is approximately 4mE by 10mN, with
the case, this should be reported with an explanation samples taken at one and half
of the basis of the mining assumptions made. metre intervals down-hole. Sub-Level
Caving (SLC) is used for underground
mining at Syama.
=============== ================================================================ ==============================================
Metallurgical
factors or * The basis for assumptions or predictions regarding Extensive metallurgical investigations
assumptions metallurgical amenability. It is always necessary as and reporting have been completed
part of the process of determining reasonable prior to the commencement of mining
prospects for eventual economic extraction to and milling at the nearby Syama
consider potential metallurgical methods, but the deposit.
assumptions regarding metallurgical treatment The processing method involves
processes and parameters made when reporting Mineral crushing, milling, flotation and
Resources may not always be rigorous. Where this is roasting, followed by conventional
the case, this should be reported with an explanation CIL recovery.
of the basis of the metallurgical assumptions made. There is no evidence to suggest
that the metallurgical characteristics
of ore extracted from Syama North
would change from that encountered
at Syama.
=============== ================================================================ ==============================================
Environmental
factors or * Assumptions made regarding possible waste and process It is assumed that environmental
assumptions residue disposal options. It is always necessary as factors would be largely similar
part of the process of determining reasonable to those at the nearby Syama Deposit.
prospects for eventual economic extraction to It is a requirement of Decree
consider the potential environmental impacts of the No.03-594/P-RM of 31 December
mining and processing operation. While at this stage 2003 of Malian law that an Environmental
the determination of potential environmental impacts, and Social Impact Study (Étude
particularly for a green fields project, may not d'Impact Environmental et Social
always be well advanced, the status of early - EIES) must be undertaken to
consideration of these potential environmental update the potential environmental
impacts should be reported. Where these aspects have and social impacts of the mine's
not been considered this should be reported with an redevelopment. In November 2007
explanation of the environmental assumptions made. the EIES for the Syama Gold Mine
was approved and an Environment
Permit (07- 0054/MEA - SG) issued
by the Ministry of Environment
and Sanitation on the 22 November
2007.
At Syama there are three key practices
for disposal of wastes and residues
namely, stacking of waste rock
from open pit mining; storage
of tailings from mineral processes;
and "tall-stack dispersion" of
sulphur dioxide from the roasting
of gold bearing concentrate.
The Environmental & Social Impact
Study - "Société des
Mines de Syama, Syama Gold Mine,
Mali, dated 2007, found "a minimal
potential for acid drainage from
waste rock, as historical analysis
indicates that the high carbonate
content of the material will suppress
any potential acid generation."
Progressive rehabilitation of
waste rock landforms has begun
and a management plan for waste
rock dumping is the subject of
ongoing development.
The landform of tailings impoundments
does not have a net acid generating
potential. The largest volume
is flotation tailings where the
sulphide minerals have already
been removed from the host rock.
Its mineralogy includes carbonates
which further buffer any acid-formation
potential from sulphides that
may also be present.
Cyanide levels in the leached-calcine
tailings are typically less than
50 ppm in the weak acid dissociable
form. Groundwater away from the
tailings landform is intercepted
by trenches and sump pumps.
Sulphur dioxide is generated from
the roasting of gold concentrate
so that gold can be extracted
and refined. Tall-Stack "dispersion"
of the sulphur dioxide emission
is monitored continuously. Prevailing
weather and dissipation of the
sulphur dioxide is modelled daily
to predict the need to pause the
roasting process in order to meet
the air quality criteria set out
in the Environmental & Social
Impact Study
=============== ================================================================ ==============================================
Bulk density
* Whether assumed or determined. If assumed, the basis Bulk density values have been
for the assumptions. If determined, the method used, determined through analysis of
whether wet or dry, the frequency of the measurements, rock and diamond core samples.
the nature, size and representativeness of the A total of 576 bulk density measurements
samples. have been gathered using the water
immersion method.
An average bulk density value
* The bulk density for bulk material must have been has been assigned to each of the
measured by methods that adequately account for void oxide, transitional, and fresh
spaces (vugs, porosity, etc), moisture and material across the deposit. .
differences between rock and alteration zones within
the deposit.
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
=============== ================================================================ ==============================================
Classification
* The basis for the classification of the Mineral Mineral Resources were classified
Resources into varying confidence categories. in accordance with the Australasian
Code for the Reporting of Exploration
Results, Mineral Resources and
* Whether appropriate account has been taken of all Ore Reserves (JORC, 2012).
relevant factors (i.e. relative confidence in The deposit has been classified
tonnage/grade estimations, reliability of input data, as Measured, Indicated, and Inferred
confidence in continuity of geology and metal values, Mineral Resource based on a combination
quality, quantity and distribution of the data). of quantitative and qualitative
criteria which include geologic
continuity, confidence in volume
* Whether the result appropriately reflects the models, data quality, sample spacing,
Competent Person's view of the deposit. lode continuity, and estimation
parameters (number of informing
composites, estimation pass number,
kriging quality parameters, and
minimum and average distance composites).
The Measured portion of the Resource
was defined using areas populated
on the first estimation pass,
within 20m of informing composites;
the kriging efficiency and slope
of regression were generally >=0.7;
and high confidence exists in
lode continuity (strike and thickness).
The Indicated portion of the Resource
was defined using areas populated
on the first two estimation passes
within 50m of informing composites;
the kriging efficiency and slope
of regression were generally >=0.7;
and moderate to high confidence
exists in lode continuity (strike
and thickness).
Mineralisation that not classified
by the above parameters has been
classified as Inferred.
The input data is comprehensive
in its coverage and does not favour
or misrepresent the in situ mineralisation.
The definition of the mineralised
zones is based on a high level
of geologic understanding from
good quality sample data, producing
models of continuous mineralised
lodes. Validation of the block
model shows good correlation of
the input data to the block estimated
grades.
The Mineral Resource estimate
appropriately reflects the view
of the Competent Person
=============== ================================================================ ==============================================
Audits or
reviews * The results of any audits or reviews of Mineral No external reviews have been
completed.
* Resource estimates.
=============== ================================================================ ==============================================
Discussion
of relative * Where appropriate a statement of the relative The relative accuracy of the
accuracy/ accuracy and confidence level in the Mineral Resource Mineral Resource estimate is reflected
confidence estimate using an approach or procedure deemed in the reporting of Measured,
appropriate by the Competent Person. For example, the Indicated and Inferred as per
application of statistical or geostatistical the guidelines of the 2012 JORC
procedures to quantify the relative accuracy of the Code.
resource within 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.
=============== ================================================================ ==============================================
Sec t ion 4 Es tim a tion and Reporting of Ore Re serves
CRITERIA JORC CODE E XP L A N A T I ON CO M M ENT ARY
================= ====================================================================== ====================================================================
Mineral
Resource * Description of the Mineral Resource estimate used as The Ore Reserves are based on
estimate a basis for the conversion to an Ore Reserve. the Mineral Resource estimate
for conversion detailed in the ASX release dated
to Ore Reserves January 2023. The resource was
* Clear statement as to whether the Mineral Resources reported above a 1.0 g/t gold
are reported additional to, or inclusive of, the Ore grade cut-off, based on an equivalent
Reserve. gold price of US$2,000/oz and
using an Open pit mining methodology.
The Material below this cut-off
is not included in the Mineral
Resource.
Ore Reserves are the Material
reported as a sub-set of the resource,
that which can be extracted from
the region and processed with
an economically acceptable outcome.
=================== ================================================================== ========================================================================
Site visits
* Comment on any site visits undertaken by the The Competent Person, Mr Kitwa
Competent Person and the outcome of those visits. Ndjibu, is a full-time employee
of Resolute Mining Ltd and a Member
of the Australasian Institute
* If no site visits have been undertaken indicate why of Mining and Metallurgy.
this is the case. Regular site visit to the project
area was conducted during the
year 2022, and weekly contact
with site teams was maintained
throughout the period. These site
visits help to validate technical
and operating assumptions used
in the preparation of these ore
reserves
The site visit reviewed the project
site and proposed waste dump location,
a review of current operations
at Syama and Tabakoroni, existing
open pit infrastructure available,
a review of selected drill core
and various meetings were held
with site personnel key stakeholders
to the study.
=================== ================================================================== ========================================================================
Study status
* The type and level of study undertaken to enable Syama North Consist of A21, Beta,
Mineral Resources to be converted to Ore Reserves. Alpha & Ba04.
Feasibility Studies were completed
for mining of Open pit satellite
* The Code requires that a study to at least deposits in 2009, and mining of
Pre-Feasibility Study level has been undertaken to satellite pits has been occurring
convert Mineral Resources to Ore Reserves. Such since then. Recent drilling in
studies will have been carried out and will have Syama North has identified a significant
determined a mine plan that is technically achievable resource in sulphide, spread across
and economically viable, and that material Modifying the Syama North region, an extension
Factors have been considered. to the known oxide deposit. Additional
drilling was completed targeting
the A21 area and the resource
model was updated in Dec 22 with
additional information. Pit was
reoptimized using the new model
and redesigned to match the latest
optimisation. All Reserves were
declared as Probable as more test
works and drilling is ongoing
to firm up the modifying factors
(geotechnical inputs).
The work undertaken to date has
addressed all material Modifying
Factors required for the conversion
of a Mineral Resources estimate
into an Ore Reserve estimate and
has shown material change to the
reserve; i.e, change in tonnes,
grades, rock type (Oxide; Transisitional
and Fresh). Furthermore, the result
shows that the mine plan is technically
feasible and economically viable.
=================== ================================================================== ========================================================================
Cut-off
parameters * The basis of the cut-off grade(s) or quality Syama North uses a cut-off of
parameters applied. 1.0 g/t, based on the economic
parameters described in subsequent
sections.
=================== ================================================================== ========================================================================
Mining factors The reported Ore Reserve estimates
or assumptions * The method and assumptions used as reported in the for Syama North are based on pit
Pre-Feasibility or Feasibility Study to convert the optimisations conducted using
Mineral Resource to an Ore Reserve (i.e. either by the Lerchs-Grossman (LG) algorithm
application of appropriate factors by optimization or utilizing the NPV Scheduler and
by preliminary or detailed design). reviewed in Whittle to calculate
the optimal pit at specific input
parameters and pit designs. Costs
* The choice, nature and appropriateness of the are based on existing contract
selected mining method(s) and other mining parameters mining and haulage rates and site
including associated design issues such as pre-strip, costs which are understood with
access, etc. a high degree of accuracy.
Mining is planned to be undertaken
by conventional open pit methods
* The assumptions made regarding geotechnical of drill and blast, followed by
parameters (e.g. pit slopes, stope sizes, etc.), load and haul.
grade control and pre-production drilling. Detailed pit design work was completed
based on pit optimisations result.
Only Measured and Indicated Resources
* The major assumptions made and Mineral Resource model were used in the pit optimisation.
used for pit and stope optimization (if appropriate). Overall slope angles are dependent
on rock type; approximately 34deg
for Oxide, 38deg for Transisitional
* The mining dilution factors used. and 50deg for Fresh as recommended
by Geotechnical consultants and
operational experience in mining
* The mining recovery factors used. other similar pits in same region.
A 5% dilution and 10 % mining
loss factor applied. All Inferred
* Any minimum mining widths used. material is treated as waste and
is excluded from Reserve Reporting.
Inferred Mineral Resources are
* The manner in which Inferred Mineral Resources are not included in the pit optimisation
utilized in mining studies and the sensitivity of the and pit design. A mining and production
outcome to their inclusion. schedule were completed with Inferred
Mineral Resource treated as waste.
As a result, the conversion of
* The infrastructure requirements of the selected Inferred Mineral Resource to processed
mining methods. product is not required for the
overall financial viability of
the project.
=================== ================================================================== ========================================================================
Metallurgical Metallurgical test work was conducted
factors or * The metallurgical process proposed and the on multiple samples. The tests
assumptions appropriateness of that process to the style of indicated that, similarly to the
mineralization. Syama ore. The processing of the
ore will be similar to that of
the Syama sulphide circuit which
* Whether the metallurgical process is well-tested has been in operation for several
technology or novel in nature. years and is well understood,
consisting of the following stages:
* Crushing and grinding utilising the existing oxide
* The nature, amount and representativeness of process plant infrastructure
metallurgical test work undertaken, the nature of the
metallurgical domaining applied and the corresponding
metallurgical recovery factors applied. * Gravity gold recovery utilising the existing oxide
gravity circuit
* Any assumptions or allowances made for deleterious
elements. * Flotation to produce a sulphide rich concentrate
* The existence of any bulk sample or pilot scale test * Concentrate thickening
work and the degree to which such samples are
considered representative of the ore body as a whole.
* Roasting, followed by calcine quench and wash
* For minerals that are defined by a specification, has
the ore reserve estimation been based on the * Carbon-in-leach (CIL)
appropriate mineralogy to meet the specifications?
* Tailings disposal
The oxide crushing and grinding
circuit has an oxide capacity
of 1.6 Mtpa, and Sulphide crushing
& grinding has a sulphide capacity
of 2.4 Mtpa. PFS study is underway
to expand the oxide circuit to
a dual feed circuit to feed additional
Sulphide ore once the oxide ore
depletes.
The Syama roaster, CIL circuit
and tailings storage facility
has enough capacity to process
the additional concentrate from
Syama North Sulphide ore stream.
A total gold recovery of 86%,
80% and 78%, has been assumed
for Oxide, Transitional and Fresh
Material respectively, based on
test results to date. This is
in line with similar ore being
processed at Syama.
=================== ================================================================== ========================================================================
Environmental
* The status of studies of potential environmental An active waste rock characterisation
impacts of the mining and processing operation. program has been put in place.
Details of waste rock characterization and the Potentially Acid Forming (PAF)
consideration of potential sites, status of design and Non Acid Forming (NAF) will
options considered and, where applicable, the status be identified for waste material
of approvals for process residue storage and waste dumping in light of closure plan
dumps should be reported. consideration.
Ore from these pits will be processed
at Syama and tailings storage
will be impounded in existing
tailings storage area.
=================== ================================================================== ========================================================================
Infrastructure
* The existence of appropriate infrastructure: These pits will be supported
availability of land for plant development, power, by existing infrastructure at
water, transportation (particularly for bulk Syama as they are close to the
commodities), labour, accommodation; or the ease with main facility.
which the infrastructure can be provided, or
accessed.
=================== ================================================================== ========================================================================
Costs
* The derivation of, or assumptions made, regarding The Syama North pits are located
projected capital costs in the study. within approximately 8km of Syama.
Ore is trucked to Syama where
it is processed at Syama. General
* The methodology used to estimate operating costs. and administration costs are shared
between the oxide plant and the
sulphide plant. As part of ongoing
* Allowances made for the content of deleterious operations, capital and operating
elements. budgets are prepared from first
principles and considering existing
contractual agreements.
* The derivation of assumptions made of metal or The processing plant produces
commodity price(s), for the principal minerals and gold doré (without problematic
co- products. deleterious elements) that is
subsequently refined offsite.
Refining costs are not material.
* The source of exchange rates used in the study. * Exchange rates used for planning purposes are from
consensus forecasts provided by external corporate
advisers.
* Derivation of transportation charges.
Ad valorem Government royalties
* The basis for forecasting or source of treatment and of 6% are payable on gold production
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 assumptions made regarding A gold price of US$1,500/oz formed
revenue factors including head grade, metal or the basis of the Ore Reserves.
commodity price(s) exchange rates, transportation and Gold prices used for planning
treatment charges, penalties, net smelter returns, are from consensus forecasts provided
etc. by external corporate advisers.
No penalties are incurred, nor
is any revenue received from co-products.
* 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 stock situation for the The gold market is robust with
particular commodity, consumption trends and factors the prevailing gold price being
likely to affect supply and demand into the future. well above US$1,500/oz.
Supply and demand are not considered
material to the Ore Reserve calculations.
* 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 economic analysis to produce the The financial evaluation undertaken
net present value (NPV) in the study, the source and as part of the evaluation indicated
confidence of these economic inputs including a positive net present value (NPV)
estimated inflation, discount rate, etc. at a 7% annual discount rate.
The following major economic inputs
were used:
* NPV ranges and sensitivity to variations in the * Costs as previous described
significant assumptions and inputs.
* Gold price of US$1500/oz
* Royalties of 6%
* Effective tax rate of 25% (Corporate tax rate of 30%
with 5% discount provided by the Malian government to
Tabakoroni)
* Discount rate of 7% per annum for real, post-tax cash
flows.
=================== ================================================================== ========================================================================
Social
* The status of agreements with key stakeholders and The Syama North Pits fall within
matters leading to social license to operate. the Syama exploitation permit
and will be managed and operated
by SOMISY SA.
Development of the Northern pits
requires updating of the SOMISY
ESIA. The ESIA process requires
consultation with local community
and government leadership and
other relevant stakeholders. Engagement
will continue up to and during
operations including the payment
of compensation to farmers whose
fields are disturbed as per Malian
legal requirements.
Malian nationals are anticipated
to fill most operating and management
positions related to the Southern
Satellite open pits. The intention
is to encourage economic development
within the local community
=================== ================================================================== ========================================================================
Other
* To the extent relevant, the impact of the following All current government agreements
on the project and/or on the estimation and and approvals are in good standing
classification of the Ore Reserves: and no anticipated changes are
expected. Political instability
is a potential risk in Mali, but
* Any identified material naturally occurring risks. the owner has many years operating
experience in this environment
through the current Syama and
* The status of material legal agreements and marketing Tabakoroni operations. The current
arrangements. Malian government is supportive
of mining operations and the current
Syama and Tabakoroni operations
* The status of governmental agreements and approvals are in good standing with the
critical to the viability of the project, such as authorities. There are no current
mineral tenement status, and government and statutory unresolved matters affecting this
approvals. There must be reasonable grounds to expect project.
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 classification of the Ore Reserves Proved and Probable Ore Reserves
into varying confidence categories. were declared based on the Measured
and Indicated Mineral Resources.
The Ore Reserve estimate appropriately
* Whether the result appropriately reflects the reflects the Competent Person's
Competent Person's view of the deposit. view of the deposit.
None of the Measured Mineral Resource
was converted to Proven Ore Reserves
* The proportion of Probable Ore Reserves that have as the PFS study for plant expansion
been derived from Measured Mineral Resources (if is underway.
any).
=================== ================================================================== ========================================================================
Audits or
reviews * The results of any audits or reviews of Ore Reserve No external audits of Resources/Reserves
estimates. were undertaken.
=================== ================================================================== ========================================================================
The relative accuracy and confidence
* Where appropriate a statement of the relative of the Ore Reserve estimate is
accuracy and confidence level in the Ore Reserve inherent in the Ore Reserve Classification.
estimate using an approach or procedure deemed All the parameters assumed and
appropriate by the Competent Person. For example, the adopted along with financial modelling
Discussion application of statistical or geostatistical and analysis have been subject
of relative procedures to quantify the relative accuracy of the to internal peer review.
accuracy/ reserve within stated confidence limits, or, if such
confidence 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 recognized 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.
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END
DRLNKFBNDBKKBNK
(END) Dow Jones Newswires
March 08, 2023 02:00 ET (07:00 GMT)
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