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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Strategic Minerals Plc | LSE:SML | London | Ordinary Share | GB00B4W8PD74 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.025 | -10.00% | 0.225 | 0.20 | 0.25 | 0.225 | 0.213 | 0.225 | 780,873 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Iron Ores | 2.46M | 84k | 0.0000 | N/A | 4.44M |
From May 2019 to May 2024
TIDMSML
RNS Number : 1698I
Strategic Minerals PLC
20 March 2018
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
20 March 2018
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Redmoor Mineral Resource Update
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified mineral development and production company, is pleased to announce that the internationally respected mining consultancy, SRK Consulting UK ("SRK"), has updated its original 2015 Resource Statement for the Company's Redmoor Tin-Tungsten Project in Cornwall, UK ("Redmoor"), which is being undertaken through its joint venture vehicle, Cornwall Resources Limited ("CRL").
Highlights
-- 4.5Mt high-grade Inferred Mineral Resource @ 1.00% Tin Equivalent (SnEq)**
-- Increase of almost 100% over the high-grade Inferred Mineral Resource previously reported in 2015.
Hot Features
Premium
-- Resource defined in high-grade zones within the Sheeted Vein System ("SVS")
-- Continuity of the SVS which hosts the high-grade zones now confirmed over a strike length of c.1,000m and for c.450m down dip, and which remains open at depth over much of its length
-- Identification of a high-grade Exploration Target within the SVS of between 4 and 6 Mt with a grade of between 0.9 and 1.3% SnEq which extends down-dip below the resource***
-- Additional high-grade exploration potential identified both below and to the west of the Exploration Target envelope and to the north in the Kelly Bray Lode with high definition geophysics survey (ground magnetometer/gradiometer) being undertaken at the western opportunity
-- Preparation of a phased drilling programme commenced aimed at: 1. conversion of a large portion of the Exploration Target into a mineral resource 2. improving confidence in the mineral resource to the Indicated Resource level 3. testing other opportunities beyond the exploration target envelope
-- Scoping level mineral processing (Fairport Engineering Ltd (UK)) and underground mining studies (Mining One (Australia)) underway
** Actual resource comprising 0.37% of Tungsten (WO3), 0.25% of Tin (Sn) and 0.57% of Copper (Cu), refer page 3 for the equivalent metal calculation.
*** It should be noted that this target is conceptual in nature, that there is currently insufficient data to define a mineral resource within this volume, and that it is uncertain if further exploration will result in the determination of a mineral resource.
Managing Director of Strategic Minerals, Mr John Peters, commented:
"The Inferred Mineral Resource estimate and Exploration Target provide another milestone on the path to the creation, again, of a working tin mine in the area. It also demonstrates the potential for the Redmoor Project to host sufficient high-grade tungsten, tin and copper mineralisation to support an underground mining project. We believe that the 1.0% tin equivalent resource grade is truly world class.
"Exciting potential exists to increase the resource at this project and work is currently underway to bring it into Pre-Feasibility Study level in 2019."
For further information, please contact:
+61 (0) 414
Strategic Minerals plc 727 965
John Peters
Managing Director
www.strategicminerals.net
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Notes to Editors
Strategic Minerals Plc is an AIM-quoted, diversified mineral exploration, development and production company with projects in the United States of America, United Kingdom and Australia. The Company is focused on acquiring and developing cash generative, high quality projects which meet local market demand for commodities and utilising this cash flow to undertake value added exploration.
In September 2011, Strategic Minerals purchased its first cash-generating asset; the Cobre Magnetite Tailings Dam project in New Mexico, USA which it brought into production in 2012. Cobre continues to provide a significant revenue stream for the Company. The portfolio was expanded in January 2016 with the acquisition of shares in Central Australian Rare Earths Pty Ltd ('CARE'), which holds high quality exploration tenements in Western Australia that are prospective for cobalt, nickel sulphides, gold and rare earth elements. The Company has since acquired all shares in Central Australian Rare Earths Pty Ltd.
In May 2016, an additional advanced exploration project was acquired when the Company entered into a 'farm in' agreement with New Age Exploration Limited to acquire up to 50% of the Redmoor Tin/Tungsten project in Cornwall, UK. This 50% acquisition was completed in February 2017 and the first drilling programme at the project was completed in November 2017. Redmoor is currently advancing a scoping study evaluation.
The Company has also acquired the Leigh Creek Copper Mine ('LCCM'), situated in the copper rich belt of South Australia, which has a JORC (2012) compliant in situ indicated resource of 24,205 tonnes. The Company is currently assessing options to bring LCCM into production in 2019.
Inferred Mineral Resource
Basis of Resource Estimate
The updated Mineral Resource Estimate, has been prepared after:
-- Development of updated geological interpretations for both the SVS and for the high-grade zones within this based on drill results of from the 2017 drill programme and further analysis of historical data. 3D wireframe interpretations have been completed for a total of 8 discrete high-grade zones within the SVS
-- Approximately, 100 by 80 m drilling spacing of the high-grade zones
-- Statistical and geostatistical analyses of the assay and density data obtained during the 2017 programme
-- Interpolating the above data into 3D block models produced for the high-grade zones
-- Assessing the technical and economic potential for the above block models to form the basis of an underground mining target
-- Reporting an updated Mineral Resource according to the guidelines for such set out in the JORC Code (2012)
Inferred Mineral Resource Statement
The updated Inferred Mineral Resource for the Redmoor Project is shown in Table 1 below.
Table 1. Redmoor 2018 Inferred Mineral Resource Estimate
Description Tonnage (Mt) WO(3) Sn Cu SnEq
% % % %
----------------------- ------------ ----- ---- ---- ----
High Grade Zones (SVS) 4.5 0.37 0.25 0.57 1.00
----------------------- ------------ ----- ---- ---- ----
No cut-off grades were applied in reporting the Mineral Resource as the grade of the high-grade zones is consistently above the cut-off grade calculated.
Comparison with 2015 Resource Statement
The updated Redmoor High Grade Inferred Mineral Resource estimate of 4.5 Mt with a grade of 1.00% Sn Eq compares with the 2015 high-grade resource estimate of 2.3 Mt @ 1.19% SnEq, with a low grade SVS resource of 11 Mt @ 0.42% SnEq. This represents almost a doubling in the size of the high-grade resource.
CRL's decision to focus its exploration on the discrete high-grade zones within the SVS, rather than the lower grade but more extensive SVS mineralisation previously targeted, has resulted in the definition of a significantly increased high-grade resource, contained within the SVS rather than in lode style mineralisation. This modelled material offers the potential for significantly thicker mineralisation than the historic lodes that formed the basis of the 2015 high-grade inferred mineral resource estimate, and thus is likely to be more amenable to modern underground mining. The individual zones vary up to 18m in thickness, the mean thickness of each individual zone varies between 3 and 10m and the vast majority of the reported Mineral Resource is located in areas where the thickness is more than 5m. This high-grade resource is presently the subject of a scoping-level study by consultants Mining One.
The drilling completed during 2017 both confirmed the continuity of, and extended, the previously reported SVS Mineral Resource, which remains potentially economic and will continue to be assessed by the Company as an alternative to the high-grade scenario as it continues its exploration. Notwithstanding this, CRL currently believes the high-grade zones to be more attractive from an economic perspective, particularly given that the Mineral Resource reported for these has increased by almost 100% compared to the high-grade resource reported in 2015 and to the point now where an underground mining scenario for these zones becomes potentially viable.
Exploration Target
CRL and SRK believe that it is realistic to consider that mineralisation continues at depth in a similar style to that already tested within the Inferred Mineral Resource Area.
The Exploration Target*** has been determined by assuming that SVS mineralisation containing High Grade Zones in similar frequency and thickness to those within the Inferred Resource, extends down-dip beyond the currently delineated resource, 250m beyond the deepest drillholes to intersect the SVS (excluding CRD019). This results in a High Grade Exploration Target being defined (Table 2) in accordance with the guidelines for such set out in the JORC Code (2012).
Table 2. Redmoor 2018 Exploration Target
Description Tonnage (Mt) SnEq% ----------------------------- ------------ --------- High Grade Exploration Target 4-6 Mt 0.9 - 1.3 ----------------------------- ------------ ---------
Drillhole CRD019 provides significant support for the Exploration Target although results from this drillhole have not yet been incorporated into the inferred resource. This hole intersected over 20 m (true thickness), including 7.00 m (4.82 m true thickness) @ 2.63% SnEq from 507.05 m within which was including 1.00m (0.71 m true thickness) @ 12.38% SnEq from 510.05 m. This high-grade mineralisation is within the Exploration Target area and at grades significantly in excess of those of the reported resource above it.
*** This Exploration Target estimate is conceptual in nature; there has been insufficient exploration to define a high-grade Mineral Resource in this volume. It is uncertain if further exploration will result in the determination of a Mineral Resource.
Further high-grade exploration potential
In addition to the exploration target described above, CRL has identified further high-grade exploration potential within its mineral rights around Redmoor:
-- CRL has produced a structural model that suggests the continuation of SVS High Grade Zones both below and to the west of the Inferred Resource and Exploration Target. A number of holes targeting western extensions, and depth extensions of the SVS High Grade Zones, are being considered for inclusion in the 2018 drilling programme. These holes currently target only the SVS High Grade Zones above the granite contact, however a number of Cornish deposits have mineralisation continuing within the granite, including historic mining within the adjacent Kit Hill Granite. This potential remains to be tested at Redmoor.
-- Approximately 1km to the west of the SVS, and immediately along strike from it, lie the historic mines of Blogsters prospect (also known as West Redmoor or Pride of the East). These include significant workings, which were mined up until 1934. SWM drilled two short holes in 1980, of 76 and 59m. Split-core assay results from SWM in hole BL80-11 show values over apparent thicknesses including 1.7m @ 0.4% Sn, with 0.75% Cu, and 1.2 m@ 7.9% Zn.
Work undertaken by CRL's geologists has ascertained that this may lie along strike from the SVS. Work including geological mapping and a high definition geophysics survey (ground magnetometer/gradiometer) is underway, with the aim of identifying and tracing structures which may have controlled mineralisation, in order to enable drilling targeted at validating and potentially extending at depth these shallow SWM results. This forms a new drill target for the 2018 programme, into which two holes are planned.
-- While the bulk of the drilling completed during 2017 was focussed on the SVS, some drillholes were also drilled to explore the potential for higher grade lodes outside of the SVS. Of these, Kelly Bray Lode was tested during the 2017 programme. This is a narrow high-grade lode which outcrops in the north of the licence area, dips to the south, and has been historically mined intermittently over a length of more than 200 m, to a depth of approximately 210 m. One hole, CRD011, drilled during 2017 successfully intersected Kelly Bray Lode where expected, returning 0.75 m @ 4.18% SnEq from 367.25 m. At this stage insufficient drilling data exists over Kelly Bray Lode to enable it to be reported as an Inferred Mineral Resource.
-- Note that the majority of drilling intersections previously classified as Johnsons Lode and Great South Lode in the 2015 High Grade Inferred Resource have now, based on improved geological understanding, been re-modelled as SVS High Grade Zones.
Future Work Programme
Exploration drilling
A phased exploration drilling programme is being developed by CRL with input from SRK with the aims of:
-- Expanding the Inferred Resource through testing and conversion of the Exploration Target where continuity is demonstrated
-- Further demonstrating continuity within the Inferred Mineral Resource with a view to enabling the reporting of a first Indicated Mineral Resource for the project. Specifically, this is expected to comprise the completion of 6 or more close-spaced holes drilling into the existing Inferred Mineral Resource high-grade zones, aimed at verifying the continuity of these at a mining scale
-- Testing wider exploration potential that has not yet been explored
In preparation for this, CRL has commenced discussions with potential drilling contractors for a 2018 drill programme. CRL has also prepared a GPDO application, which is being submitted to Cornwall Council to request permission to conduct drilling in 2018.
While no complaints were received by CRL during the 2017 drill programme, consultation with landowners, local community, local councils and other key stakeholders will continue to form an integral part of the 2018 drilling programme planning and implementation.
Mining AND PROCESSING Study
CRL has engaged UK based engineers Fairport Engineering, who have recent tungsten production plant experience, to carry out a scoping-level review of the Redmoor processing plant and surface infrastructure using existing metallurgical test work and process flowsheet information. This is expected to complete in April 2018 and will be used to provide scoping level definition of capital and operating cost estimates for the processing plant and surface infrastructure required for the project.
CRL have also engaged technical consultants Mining One of Australia to carry out a scoping-level review mine design, mining capital and operating cost estimate based on the updated high-grade resource estimate for the project.
Metallurgical Testwork
Gillian Hall, a metallurgist with 40 years' experience, a significant proportion of which has been gained working with ores of SW England, has been engaged on a consulting basis by CRL, to assist in the design and implementation of a metallurgical testwork programme, that will form an important part of CRL's 2018 work. She has operational experience from South Crofty and Geevor tin mines in Cornwall, Drakelands Tungsten mine, and more recently worked as global technical advisor for FLSmidth in their mineral processing division.
COMPETENT PERSON'S STATEMENT
The information in this report that relates to Exploration Results is based on information compiled and reviewed by Dr Mike Armitage, who is a Principal Geologist of SRK Consulting (UK) Ltd, a Member of the Institute of Materials, Minerals and Mining (MIMMM), a Fellow of the Geological Society of London (FGS), a Chartered Geologist of the Geological Society of London (CGeol) and a Chartered Engineer, UK (CEng). Dr Armitage has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr. Armitage is also a Competent Person "as defined in the Note for Mining and Oil & Gas Companies which form part of the AIM Rules for Companies". Dr Armitage has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears.
FORWARD LOOKING STATEMENTS
This report contains "forward-looking information" that is based on the Company's expectations, estimates and forecasts as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, objectives, performance, outlook, growth, cash flow, earnings per share and shareholder value, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses, property acquisitions, mine development, mine operations, drilling activity, sampling and other data, grade and recovery levels, future production, capital costs, expenditures for environmental matters, life of mine, completion dates, commodity prices and demand, and currency exchange rates. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "likely", "believe", "estimate", "expect", "intend", "may", "would", "could", "should", "scheduled", "will", "plan", "forecast" and similar expressions. The forward-looking information is not factual but rather represents only expectations, estimates and/or forecasts about the future and therefore need to be read bearing in mind the risks and uncertainties concerning future events generally.
JORC Code, 2012 Edition - Table 1
Section 1: Sampling Techniques and Data
Criteria JORC Code explanation Commentary
============= ============================================================ ==================================================================
Sampling 2017 drilling
techniques * Nature and quality of sampling (e.g. cut channels, * The results announced here are from diamond drill
random chips, or specific specialised industry core samples. Core was aligned prior to splitting and
standard measurement tools appropriate to the halved using a core saw, based on geological
minerals under investigation, such as down hole gamma boundaries, typically of 1 m sample length, and up to
sondes, or handheld XRF instruments, etc.). These 2.5 m in less mineralised zones. Sections that did
examples should not be taken as limiting the broad not appear mineralised were not sampled.
meaning of sampling.
* Drilling was orientated, where possible, to intersect
* Include reference to measures taken to ensure sample the target as closely as possible to perpendicular.
representivity and the appropriate calibration of any The deposit contains multiple different
measurement tools or systems used. mineralisation sets, and so for this reason and
limitations of access, not all holes comply with
these optimal orientation conditions.
* Aspects of the determination of mineralisation that
are Material to the Public Report.
Previous drilling
* In cases where 'industry standard' work has been done * In addition to the 20 holes drilled by CRL in 2017, a
this would be relatively simple (e.g. 'reverse previous diamond core surface drilling programme was
circulation drilling was used to obtain 1 m samples undertaken by SWM between 1980 and 1983. This is
from which 3 kg was pulverised to produce a 30 g being made use of by CRL as well as historical data
charge for fire assay'). In other cases more collected from reports and memos relating to
explanation may be required, such as where there is underground operations and recording sampling carried
coarse gold that has inherent sampling problems. out when mining was active.
Unusual commodities or mineralisation types (e.g.
submarine nodules) may warrant disclosure of detailed
information. * The drilling was orientated to intersect the
mineralisation at high angles with the exception, in
many cases, of Johnson's Lode as this dips in the
opposite direction to the other lodes and SVS. The
holes were sampled for assaying and density
measurements.
============= ============================================================ ==================================================================
Drilling 2017 drilling
techniques * Drill type (e.g. core, reverse circulation, open-hole * All drilling was carried out using diamond core of
hammer, rotary air blast, auger, Bangka, sonic, etc.) HQ3 to NQ3/NQ, with a limited amount of BTW diameter
and details (e.g. core diameter, triple or standard (61-42 mm).
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by
what method, etc.). * Orientated drilling was employed within the
mineralised zone, using a Reflex ACT II system.
Previous drilling
* All historic drillholes used HQ, NQ or BQ diamond
core.
* The holes were primarily orientated to intersect the
northerly-dipping vein system from the north.
============= ============================================================ ==================================================================
Drill 2017 drilling
sample * Method of recording and assessing core and chip * Recoveries were generally good through mineralisation,
recovery sample recoveries and results assessed. and typically more than 90%. Recoveries were measured
for each run drilled, normally within 24 hours of the
hole being drilled.
* Measures taken to maximise sample recovery and ensure
representative nature of the samples.
* Triple tube drilling was used for improved definition
of recovery when drilling HQ, and for most NQ core.
* Whether a relationship exists between sample recovery Triple tube drilling was not possible for NTW and BTW
and grade and whether sample bias may have occurred core, which were drilled to achieve a larger core
due to preferential loss/gain of fine/coarse diameter per hole size.
material.
* Voids, where encountered, were clearly logged as
such.
* Other than where an area may have been mined, as
mentioned above, no negative relationship was seen
between recovery and grade.
Previous drilling
* All historic drillholes were completed using HQ, NQ
or BQ diamond core. Core recovery was recorded on the
logs and the results suggest that the core recovery
was relatively high, typically ranging from 80% to
100%, the higher losses being in areas of poor
ground. SRK is not aware of specific measures taken
to reduce core loss but where excessive losses were
experienced holes were re-drilled. There is no
apparent relationship between core loss and grade.
============= ============================================================ ==================================================================
Logging 2017 drilling
* Whether core and chip samples have been geologically * All drill core was digitally logged for lithology,
and geotechnically logged to a level of detail to veining, mineralisation, weathering, geotechnical
support appropriate Mineral Resource estimation, characteristics, and structure.
mining studies and metallurgical studies.
* All core was photographed and these photographs
* Whether logging is qualitative or quantitative in linked to their downhole position using Micromine
nature. Core (or costean, channel, etc.) photography. software.
* The total length and percentage of the relevant * Voids, where encountered, were clearly logged as
intersections logged. such.
Previous drilling
* Detailed geological core logging and recording of the
features of the core was undertaken as part of the
historic drilling campaign and these logs remain
available for review.
* Mineralogical descriptions are qualitative but
detailed. Details of all relevant intersections are
separately noted.
============= ============================================================ ==================================================================
Sub-sampling 2017 drilling
techniques * If core, whether cut or sawn and whether quarter, * Sawn half core was used for all samples submitted to
and sample half or all core taken. the laboratory. The remaining half core is preserved
preparation in the core trays as a record.
* If non-core, whether riffled, tube sampled, rotary
split, etc. and whether sampled wet or dry. * The routine sample procedure is always to take the
half core to the left of the orientation line looking
down the hole.
* For all sample types, the nature, quality and
appropriateness of the sample preparation technique.
* The halved samples were submitted to ALS Loughrea
laboratory.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of
samples. * For holes CRD001 to CRD013, samples, typically in the
range 3-7 kg were dried and finely crushed to better
than 70 % passing a 2 mm screen. A split of up to 250
* Measures taken to ensure that the sampling is g was taken and pulverized to better than 85 %
representative of the in situ material collected, passing a 75 micron screen.
including for instance results for field
duplicate/second-half sampling.
* For holes CRD014 onwards, samples, typically in the
range 3-7 kg, were dried and finely crushed to better
* Whether sample sizes are appropriate to the grain than 95 % passing a 2 mm screen. A split of 1000 g
size of the material being sampled. was taken and pulverized to better than 85 % passing
a 75 micron screen.
* Copies of internal laboratory QC validating that the
targeted particle size was being achieved were
received.
* 5% of samples were re-assayed as coarse reject
duplicates.
* Once assay results were received, the results from
duplicate samples were compared with the
corresponding routine sample to ascertain whether the
sampling is representative.
* Sample sizes are considered appropriate for the style
and type of mineralisation, if halved core is used.
Previous drilling
* Historic drill core was typically sampled at 2 m
intervals, using either half core ('split core')
analysis or geochemical chip sampling. The remaining
half core (relating to split core analysis) was
stored for reference. No details are available with
regards quality control procedures in general.
============= ============================================================ ==================================================================
Quality 2017 drilling
of assay * The nature, quality and appropriateness of the * Analysis by method ME-ICP81x was carried out using a
data assaying and laboratory procedures used and whether sodium peroxide fusion for decomposition and then
and the technique is considered partial or total. analysed by ICP-AES for 34 elements, including Sn, Cu,
laboratory and W. The upper and lower detection limits are
tests considered acceptable for the target elements of Sn,
* For geophysical tools, spectrometers, handheld XRF Cu, and W. A limited number of samples were also
instruments, etc., the parameters used in determining analysed for silver by method Ag-ICP61.
the analysis including instrument make and model,
reading times, calibrations factors applied and their
derivation, etc. * The laboratory shared its internal QC data on blanks,
pulp duplicates and standards. CRL also inserted 5%
each of blanks, standards and duplicates, as a
* Nature of quality control procedures adopted (e.g. further control.
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy
(i.e. lack of bias) and precision have been * CRL's blanks show no significant contamination issues
established. and the assays of the laboratory standards, which
cover a range of metal values for each of Sn, Cu, W,
show no bias.
* No systematic bias appears to be present in results.
Repeatability of results has been further enhanced by
selection of a larger split size with effect from
CRD014 onwards.
Previous drilling
* Historic drill core was typically sampled at 2 m
intervals, using either half core ('split core')
analysis or geochemical chip sampling. The remaining
half core (relating to split core analysis) was
stored for reference. No details are available with
regards quality control procedures in general.
* No information is available on the laboratory sample
preparation and analysis and quality control
programmes used for the historic drilling.
* Verification sampling was completed by SRK and CRL,
under which samples were prepared at SGS Cornwall and
assayed at the Wheal Jane laboratory. SRK has visited
these facilities and reviewed the sample preparation
and assaying process. The assaying process involves
crushing, splitting, milling and homogenization. XRF
and Atomic Absorption Spectroscopy (AAS) was
conducted on the samples. SRK considers the
laboratory to be working in accordance with accepted
industry standards.
============= ============================================================ ==================================================================
Verification 2017 drilling
of sampling * The verification of significant intersections by * SRK has received copies of CRL's database and
and assaying either independent or alternative company personnel. laboratory analysis certificates and has reviewed the
significant intersections.
* The use of twinned holes.
* CRD020 was drilled as a twinned hole between holes
CRD013 and CRD018 as part of the current programme.
* Documentation of primary data, data entry procedures, Acceptable correlation was seen between holes for the
data verification, data storage (physical and style of mineralisation.
electronic) protocols.
* SRK has visited the CRL site and audited data entry
* Discuss any adjustment to assay data. and verification procedures. Data is automatically
backed up off-site.
* Within significant intercepts, values at detection
limits were replaced with 0.5 of the detection limit
value. Where duplicate assays exist for the same
interval a straight average is taken.
Previous drilling
* SRK was supplied with scanned historical drill logs
which have been entered into a Microsoft Excel
database.
* SRK has completed a number of checks on the raw data
and data entry process and applied corrections where
necessary. Based on the verification work completed,
SRK is confident that the compiled excel database is
an accurate reflection of the available historic
drilling data.
* Whilst further verification work is required to add
confidence to the database, SRK considers that the
check sampling undertaken confirms the presence of
anomalous grades for the primary elements assayed,
and that the 2017 drilling confirms these.
============= ============================================================ ==================================================================
Location 2017 drilling
of data * Accuracy and quality of surveys used to locate drill * Collar locations were recorded as six-figure grid
points holes (collar and down-hole surveys), trenches, mine references, together with RL values in metres, in the
workings and other locations used in Mineral Resource British National Grid (OSGB) coordinate system. These
estimation. were surveyed using a real-time corrected DGPS
operated by a professional survey company.
* Specification of the grid system used.
* Downhole surveys were conducted using the Reflex
EZ-Trac system, as a minimum every 50 m downhole.
* Quality and adequacy of topographic control. Aluminium extension rods were used to minimise
magnetic error.
* Initial collar set up was conducted using an optical
sighting compass, at least 10 m from the rig, for
azimuth, and an inclinometer on the rig for
inclination.
Previous drilling
* Historic drillhole logs present collar locations as
six-figure grid references in British National Grid
(OSGB) coordinate system. In the absence of RL data,
SRK has projected collars on to (2005) Lidar
topographic survey data.
* Downhole surveys were typically recorded using either
acid tube test or single shot survey camera, with
readings taken at approximately every 50 m.
* Historic plans of the drilling and drillhole traces
have been digitized and show a good correlation with
the above.
============= ============================================================ ==================================================================
Data 2017 drilling
spacing * Data spacing for reporting of Exploration Results. * The programme was aimed at extending and improving
and continuity of previously identified mineralisation.
distribution
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and * The data spacing varies depending on the target,
grade continuity appropriate for the Mineral Resource within the High Grade Zones of the SVS this is
and Ore Reserve estimation procedure(s) and approximately 100 by 80 m apart.
classifications applied.
* Compositing was applied in order to calculate
* Whether sample compositing has been applied. intersected width equivalents, on an interval length
weighted-average basis.
Previous drilling
* The drillholes and sample intersections are typically
some 100-150 m apart in the main lodes and lode
systems of interest. All individual sample assays
remain available.
============= ============================================================ ==================================================================
Orientation 2017 drilling
of data * Whether the orientation of sampling achieves unbiased * Drillholes in the programme originally targeted the
in relation sampling of possible structures and the extent to SVS, Johnson's Lode, Great South Lode, and Kelly Bray
to which this is known, considering the deposit type. Lode, each of which have different dips.
geological
structure
* If the relationship between the drilling orientation * Some holes hit more than one of the above, and
and the orientation of key mineralised structures is therefore could not be perpendicular to all
considered to have introduced a sampling bias, this mineralisation.
should be assessed and reported if material.
* In order to minimize impact on local residents, some
holes were drilled oblique to the mineralisation.
* Notwithstanding this, the SVS mineralisation is
interpreted to be a broad tabular mineralised zone
containing sub parallel High Grade Zones within it,
which form a series of domains that have now been
modelled. The orientation of the drilling is believed
to be appropriate for the evaluation of this geometry
as presently understood. It is recommended that this
be further assessed during subsequent drilling.
* Intercepts are reported as apparent thicknesses
except where otherwise stated. The data spacing
varies depending on the target, within the SVS where
the high grade zones have been intersected this is
approximately 100 by 80 m apart.
Previous drilling
* The drillholes and sample intersections are typically
some 100-150 m apart, and originally targeted a
combination of lodes and the broader SVS. All
individual sample assays, and some of the drill core,
remain available.
* The drillholes were orientated to intersect the SVS
and Great South Lode at intersection angles of
between 45 and 90 degrees. Two or three holes were
though often drilled from one site to limit the
number of drill sites needed; as a result the
intersection angles in some cases are shallower then
ideal. Full intersections are however available in
all cases so there should be no material bias and the
differences between intersected and true lode widths
has been accounted for in SRK's evaluation
procedures.
============= ============================================================ ==================================================================
Sample 2017 drilling
security * The measures taken to ensure sample security. * All core is stored at CRL's secure warehouse facility
and halved core retained.
* Samples are catalogued, ticketed, weighed, securely
palletized, and dispatched by courier to the
laboratory, where sample receipt is confirmed by
email.
* ALS is an internationally accredited laboratory.
Previous drilling
* No information is available on sample security for
the historic drilling.
* The majority of the core boxes which had been stored
in a dry container on racks remain intact though some
of the core has been mixed up and core markers
displaced over time and these had to be re-arranged
appropriately.
* SRK is satisfied that the verification re-sampling
programmes undertaken by SRK and CRL utilised
industry best practices for Chain of Custody
procedures.
============= ============================================================ ==================================================================
Audits 2017 drilling
or reviews * The results of any audits or reviews of sampling * SRK visited CRL's operations and facility in June
techniques and data. 2017 and conducted an audit of logging and sampling
procedures. No significant concerns were identified.
Previous drilling
* SRK is unaware of any reviews or audits which may
have been completed other than those undertaken by
SRK itself.
============= ============================================================ ==================================================================
Section 2: Reporting of Exploration Results
Criteria JORC Code explanation Commentary
--------------- --------------------------------------------------------------- -------------------------------------------------------------------
Mineral The Project is located
tenement * Type, reference name/number, location and ownership immediately south of
and land including agreements or material issues with third the village of Kelly
tenure parties such as joint ventures, partnerships, Bray and approximately
status overriding royalties, native title interests, 0.5km north of the town
historical sites, wilderness or national park and of Callington in Cornwall
environmental settings. in the United Kingdom.
In October 2012, NAE
* The security of the tenure held at the time of Resources (UK) Limited,
reporting along with any known impediments to acquired a 100% interest
obtaining a licence to operate in the area. in the Redmoor Tin-Tungsten
Project through an Exploration
License and Option Agreement
with the owner of mineral
rights covering a large
area of approximately
23 km(2) that includes
the Redmoor Project.
The Exploration License
was granted for an initial
period of 15 years with
modest annual payments.
On 14 November 2016,
NAE Resources (UK) Limited
changed its name to
Cornwall Resources Limited
(CRL).
CRL also has the option
to a 25 year Mining
Lease, extendable by
a further 25 years which
can be exercised at
any time during the
term of the Exploration
License. The Mining
Lease permits commercial
extraction of the minerals
subject to obtaining
planning and other approvals
required and is subject
to a 3% Net Smelter
Return royalty payable
to the mineral right
owner once commercial
production has commenced.
CRL also has a pre-emptive
right over the sale
of the mineral rights
by the vendor. Surface
land access for exploration
drilling and mining
over some of the Redmoor
deposit is also included
in these agreements.
The mineral rights are
yet to be registered
with the UK land registry.
--------------- --------------------------------------------------------------- -------------------------------------------------------------------
Exploration South West Minerals
done * Acknowledgment and appraisal of exploration by other (SWM) conducted exploration,
by other parties. including drilling,
parties in the area from 1980
to 1986. The area was
the subject of underground
development and processing
from the 18(th) century
to around 1946. SRK
is unaware of any exploration
undertaken by parties
other than South West
Minerals (SWM).
--------------- --------------------------------------------------------------- -------------------------------------------------------------------
Geology The geology of the Redmoor
* Deposit type, geological setting and style of Project is typical of
mineralisation. other established mining
areas of Cornwall. Tin,
tungsten and metal sulphide
mineralisation is spatially
related to granite intrusions
which have caused mineral
containing fluids to
transport and deposit
tin, tungsten and copper
bearing minerals along
fractures and faults
in surrounding rocks.
At Redmoor the mineralisation
occurs both in discrete
veins (lodes) and within
a stockwork and sheeted
zone of numerous closely
spaced quartz veins
known as the Sheeted
Vein System (SVS). Within
the SVS, High Grade
Zones occur, comprising
tightly packed and/or
wider veining of a subparallel
form. Zonation occurs
within these both laterally
and vertically, with
tungsten (wolframite)
proximal to granite,
varying into tin (cassiterite)
mineralisation more
distal from what appears
to be the granitic source.
Copper (chalcopyrite)
mineralisation occurs
as a broad zone in proximity
to cross courses, as
well as on separate
lode structures such
as Kelly Bray Lode.
--------------- --------------------------------------------------------------- -------------------------------------------------------------------
Drill 2017 drilling
hole * A summary of all information material to the * Drillhole collar data including position, RL, azimuth,
Information understanding of the exploration results including a inclination, and length is provided in Appendix 2 of
tabulation of the following information for all the Release dated 11 December 2017.
Material drill holes:
* Depths of intercepts are provided in Appendix 1 of
o easting and northing the Release dated 11 December 2017.
of the drill hole
collar
o elevation or RL Previous drilling
(Reduced Level - elevation * Figures previously presented in the 7 September 2017
above sea level in announcement show the relative location and
metres) of the drill orientation of the drilling completed by SWM. The
hole collar intersection intervals of the SVS mineralisation are
o dip and azimuth contained in Appendix 2 of that release.
of the hole
o down hole length
and interception depth * SRK considers that providing any more information in
o hole length. this regard would not aid better understanding of the
* If the exclusion of this information is justified on deposit in a material way.
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 2017 drilling
aggregation * In reporting Exploration Results, weighting averaging * Weighted average intercepts were calculated using
methods techniques, maximum and/or minimum grade truncations sample weighting by length of sample interval.
(e.g. cutting of high grades) and cut-off grades are
usually Material and should be stated.
* No high cut was thought to be appropriate.
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade * Significant Intervals were constructed to reflect
results, the procedure used for such aggregation average mineralisation where (SnEq grade x width)
should be stated and some typical examples of such exceeded a value of 4, for example 8m @ 0.5%, or 4m @
aggregations should be shown in detail. 1% SnEq, with in general a lower 0.5% SnEq cut
applied-. Internal dilution is accepted where a
geological basis is thought to exist for reporting a
* The assumptions used for any reporting of metal wider package, for example within the SVS.
equivalent values should be clearly stated.
Previous drilling
* These are geologically rather than cut-off defined
and all composited grades reported are length
weighted assays without cutting.
For each of 2017 and
previous drilling, results
are expressed in Sn
equivalent values. The
assumptions for this
calculation are: Metal Price Payability Recovery
------- ----------- ----------- ---------
Sn $22,000/t 90% 68%
------- ----------- ----------- ---------
Cu $7,000/t 90% 85%
------- ----------- ----------- ---------
$330/mtu
W (APT) 81% 72%
------- ----------- ----------- ---------
--------------- --------------------------------------------------------------- -------------------------------------------------------------------
Relationship 2017 drilling
between * These relationships are particularly important in the * The mineralisation occurs both in discrete veins
mineralisation reporting of Exploration Results. (lodes) and within a stockwork and sheeted zone of
widths numerous closely spaced quartz veins known as the
and intercept Sheeted Vein System (SVS). Within the SVS, High Grade
lengths * If the geometry of the mineralisation with respect to Zones occur, comprising tightly packed and/or wider
the drill hole angle is known, its nature should be veining of a subparallel form. Zonation occurs within
reported. these both laterally and vertically, with tungsten
(wolframite) proximal to granite, varying into tin
(cassiterite) mineralisation more distal from what
* If it is not known and only the down hole lengths are appears to be the granitic source. Copper
reported, there should be a clear statement to this (chalcopyrite) mineralisation occurs as a broad zone
effect (e.g. 'down hole length, true width not in proximity to cross courses, as well as on separate
known'). lode structures such as Kelly Bray Lode. The
orientation of the drilling is believed to be
appropriate for the evaluation of this geometry as
presently understood. It is recommended that this be
further assessed during subsequent drilling.
* Intercepts are reported as apparent thicknesses
except where otherwise stated.
Previous drilling
* Full intersections are available in all cases so
there should be no material bias and the differences
between intersected and true lode widths have been
accounted for in SRK's evaluation procedures.
--------------- --------------------------------------------------------------- -------------------------------------------------------------------
Diagrams Appropriate maps, plans,
* Appropriate maps and sections (with scales) and sections and other views
tabulations of intercepts should be included for any of the interpreted mineralisation
significant discovery being reported These should are included in the
include, but not be limited to a plan view of drill announcement.
hole collar locations and appropriate sectional
views.
--------------- --------------------------------------------------------------- -------------------------------------------------------------------
Balanced The announcement presents
reporting * Where comprehensive reporting of all Exploration all of the salient exploration
Results is not practicable, representative reporting data that supports the
of both low and high grades and/or widths should be results presented and
practiced to avoid misleading reporting of where summarised is
Exploration Results. done so in such a way
as to convey all of
the results in a balanced
manner.
--------------- --------------------------------------------------------------- -------------------------------------------------------------------
Other All relevant new information
substantive * Other exploration data, if meaningful and material, has been presented in
exploration should be reported including (but not limited to): the announcement.
data geological observations; geophysical survey results;
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
--------------- --------------------------------------------------------------- -------------------------------------------------------------------
Further The announcement summarises
work * The nature and scale of planned further work (e.g. the geological and other
tests for lateral extensions or depth extensions or work currently underway
large-scale step-out drilling). and planned and the
current considerations
regarding the potential
* Diagrams clearly highlighting the areas of possible of the licence area.
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
--------------- --------------------------------------------------------------- -------------------------------------------------------------------
Section 3: Estimation and Reporting of Mineral Resources
Criteria JORC Code explanation Commentary
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Database SRK has completed a
integrity * Measures taken to ensure that data has not been number of checks on
corrupted by, for example, transcription or keying the raw data supplied
errors, between its initial collection and its use by CRL and is satisfied
for Mineral Resource estimation purposes. that the data does not
contain significant
errors nor has it been
* Data validation procedures used. corrupted.
In compiling the historic
drillhole data, all
historic drillhole logs
and assay results were
manually checked against
the digital database.
During the 2017 drill
phase, the drillhole
database was validated
in Micromine on a regular
basis by CRL. Upon receipt
of the data, SRK validated
the drillhole database
through standard validation
checks in Microsoft
Excel and subsequently
through import via the
Seequent Leapfrog Geo
("Leapfrog") drillhole
data validation routine.
This checks for any
overlapping intervals,
from depths > to depths,
duplicate locations,
out of place non-numeric
values, missing collar
and survey data, any
down-hole intervals
that exceed the max
collar depth etc.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Site SRK has visited the
visits * Comment on any site visits undertaken by the Project on the 17 of
Competent Person and the outcome of those visits. April 2012, between
2 and 3 May 2012, and
between 3 and 4 July
* If no site visits have been undertaken indicate why 2017.
this is the case. The purpose of the 2012
site visits was to inspect
the historical drill
core intersections,
complete verification
sampling and visit the
laboratories selected
to undertake sample
preparation and analyses.
During the 2017 Competent
Person site visit, completed
by Dr Mike Armitage,
SRK checked the quality
of drilling, sampling
and logging procedures
put in place by CRL
and provided guidance
on the reporting of
Mineral Resources for
the Project.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Geological The wireframes used
interpretation * Confidence in (or conversely, the uncertainty of) the to constrain the block
geological interpretation of the mineral deposit. model and grade interpolation
were constructed based
on CRL and SRK's understanding
* Nature of the data used and of any assumptions made. of the geology and mineralization
of the Redmoor deposit,
as described in earlier
* The effect, if any, of alternative interpretations on sections.
Mineral Resource estimation. Namely, the resource
model reflects the interpretation
of a sheeted vein system
* The use of geology in guiding and controlling Mineral package, with high grade
Resource estimation. lenses defined separately
within this wider package,
reflecting areas of
* The factors affecting continuity both of grade and elevated mineralization,
geology. relating to zones of
more intense and closely-spaced
quartz veining.
Detailed downhole structural
data collected by CRL
was used to guide the
orientation of the SVS
and to assist in determining
how/if to connect the
high grade lenses.
The high-grade lenses
described are limited
to identified high grade
zones within the SVS
that can be correlated
(parallel to the trends
identified in the downhole
vein structural data)
between at least three
drillholes, with a maximum
drillhole spacing of
150 m.
Cross-course (fault)
zones defined by CRL
and SRK on the basis
of logged cross-course
zones and known orientations
of these structures
from historic mining
and mapping, were used
to both dilute and offset
the SVS and high-grade
lens models. Most notably,
the "Great Western Cross-Course"
defines the western-most
extent of the modelled
mineralization, and
the "Eastern Cross-Course
1" was used to split
the SVS into two separate
modelling domains -
"SVS East" and "SVS
West".
* To the east, the modelled mineralization terminates
on a volumetric model of the "Kit Hill Granite",
which was constructed on the basis of logged downhole
drill intersections and the known geometry of this
intrusion from historic mapping and mining.
Termination of mineralisation at the granite contact
has not been confirmed and is a conservative
assumption made at this stage.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Dimensions The Mineral Resource
* The extent and variability of the Mineral Resource comprises 8, largely
expressed as length (along strike or otherwise), plan parallel, high grade
width, and depth below surface to the upper and lower lenses, which dip at
limits of the Mineral Resource. between 60-80deg towards
between 325-340degN.
As modelled, the lenses
vary between 50 and
300 m in down-dip extent
and have along-strike
extents of between 100
and 300 m. The down-dip
and along-strike extents
of the total package
of high grade lenses,
as modelled, are 440
m and 940 m respectively.
The lenses are modelled
between 35 m and 530
m below surface. The
individual zones vary
up to 18m in thickness,
the mean thickness of
each individual zone
varies between 3 and
10m and the vast majority
of the reported Mineral
Resource is located
in areas where the thickness
is more than 5m.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Estimation Geological (wireframe)
and modelling * The nature and appropriateness of the estimation modelling was conducted
techniques technique(s) applied and key assumptions, including in Leapfrog, based on
treatment of extreme grade values, domaining, the geological understanding
interpolation parameters and maximum distance of and rationale described
extrapolation from data points. If a computer in earlier sections.
assisted estimation method was chosen include a Namely, the model comprises
description of computer software and parameters used. high-grade lenses, constrained
within a wider modelled
sheeted vein system
* The availability of check estimates, previous ("SVS"), which is offset
estimates and/or mine production records and whether by modelled cross-courses
the Mineral Resource estimate takes appropriate and terminated in the
account of such data. east and the west by
the modelled "Kit Hill
Granite" and the "Western
* The assumptions made regarding recovery of Cross-Course" respectively.
by-products. Both the sheeted vein
system and high-grade
lenses were modelled
* Estimation of deleterious elements or other non-grade using the Leapfrog vein
variables of economic significance (e.g. sulphur for modelling tool. The
acid mine drainage characterisation). SVS, which constrains
the high-grade lenses
and broadly delimits
* In the case of block model interpolation, the block the extent of mineralization,
size in relation to the average sample spacing and was modelled based on
the search employed. a loose cut-off of 0.28%
SnEq. The high-grade
lenses were modelled
* Any assumptions behind modelling of selective mining based on selected intervals
units. within the SVS determined
to be distinctly higher
grade in either Sn,
* Any assumptions about correlation between variables. W or Cu than the surrounding
material.
The high-grade lens
* Description of how the geological interpretation was geological wireframes
used to control the resource estimates. described above were
used as solid domain
boundaries in the resource
* Discussion of basis for using or not using grade estimation process.
cutting or capping. The drillhole database
was coded by the geological
model and, within the
* The process of validation, the checking process used, high-grade lenses, composited
the comparison of model data to drill hole data, and to 2m, with flexible
use of reconciliation data if available. compositing rules such
that all composites
on each drillhole intersection
are the same length,
which may be between
1.5 m and 2.5 m. This
is to avoid short remnant
composites, which may
have a significant impact
on the estimate given
the thin nature of the
high-grade lenses.
Prior to grade interpolation,
an initial statistical
analysis was undertaken
on the drill data in
Snowden Supervisor ("Supervisor")
and Datamine Studio
3 ("Datamine") software.
Capping of composited
assay grades within
the high-grade lenses
was not deemed necessary.
Block modelling and
grade estimation was
undertaken in Datamine
Studio 3 ("Datamine").
A parent block size
of 25 m * 10 my * 15
mz was chosen, based
on the average drillhole
spacing and the highly
anisotropic, sheeted
nature of the mineralization.
Prior to grade interpolation,
a geostatistical study
was completed in Supervisor
on both the high-grade
lenses and the composites
within the wider SVS.
Due to the relatively
small number of composite
samples within the high-grade
lenses it was not possible
to generate meaningful
variograms within these
domains.
Variography undertaken
on the largest wider
SVS domain ("SVS East"),
indicates ranges in
the order of 210-230
m along-strike, 100-135
m down-dip and 20 m-30m
across-strike for Sn
and W, and ranges of
175 m along-strike,
125 m down-dip and 60
m across-strike for
Cu.
Grade interpolation
in the high-grade lenses
was completed by inverse
distance weighting ("IDW").
Each lens was estimated
independently. The search
volume 1 ("SV1") ellipse
size for the high-grade
lenses was set to 145
m*90 m*50 m for estimating
Sn and W, and 115 m*85
m*40 m for estimating
Cu, which is loosely
based on 2/3(rd) s of
the variogram ranges
in the wider SVS (for
the along-strike and
down-dip search distances),
whilst ensuring that
a sufficient number
of drillholes are contained
within the ellipse in
most areas to derive
a reasonably informed
block estimate. A reasonably
long across-strike search
range (relative to the
measured variogram ranges)
was employed to ensure
that sufficient samples
were captured. In reality
the selection of samples
across-strike is governed
by the thickness of
the lenses and the maximum
number of samples from
a single drillhole allowed
to estimate into each
block, as described
below. Second and third
searches, with progressively
expanded ellipses and
relaxed sample requirements,
were applied to fill
any blocks not filled
in the previous run.
The interpolation parameters
including minimum and
maximum number of samples
to be estimated into
each block, and the
maximum number of samples
to be used per drillhole,
were adjusted for each
lens. This ensured that,
in most cases, blocks
in search volume 1 were
estimated using samples
from at least three
drillholes, whilst avoiding
biasing the estimate
by estimating blocks
using a disproportionate
number of samples from
drillholes with large
number of samples in
a single lens, which
are often holes drilled
at a low angle to the
lenses.
The estimated block
model was validated
by visual inspection
of block grades in comparison
with drillhole data,
and comparison of the
block model statistics.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Moisture All tonnages are reported
* Whether the tonnages are estimated on a dry basis or as dry tonnages.
with natural moisture, and the method of
determination of the moisture content.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Cut-off No cut-off grades were
parameters * The basis of the adopted cut-off grade(s) or quality applied in reporting
parameters applied. the High Grade Mineral
Resource as the grade
of the high-grade lenses
is consistently above
the cut-off grade calculated.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Mining SRK has assumed mining
factors * Assumptions made regarding possible mining methods, will be undertaken using
or assumptions minimum mining dimensions and internal (or, if underground mining methods
applicable, external) mining dilution. It is always using a decline access
necessary as part of the process of determining and has derived likely
reasonable prospects for eventual economic extraction mining parameters for
to consider potential mining methods, but the the purpose of determining
assumptions made regarding mining methods and the cut-off grades given
parameters when estimating Mineral Resources may not above.
always be rigorous. Where this is the case, this
should be reported with an explanation of the basis
of the mining assumptions made.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Metallurgical CRL has commissioned
factors * The basis for assumptions or predictions regarding a preliminary metallurgical
or assumptions metallurgical amenability. It is always necessary as review which has suggested
part of the process of determining reasonable a likely processing
prospects for eventual economic extraction to circuit and recovery
consider potential metallurgical methods, but the factors and operating
assumptions regarding metallurgical treatment costs based on two phases
processes and parameters made when reporting Mineral of laboratory scale
Resources may not always be rigorous. Where this is metallurgical testwork
the case, this should be reported with an explanation on composited drill
of the basis of the metallurgical assumptions made. core samples commissioned
by SWM. SRK has reviewed
the metallurgical review
commissioned by CRL
and this has given SRK
confidence that the
mineralisation can be
treated to recover tin,
tungsten and copper
and has provided input
to the above cut-off
calculations.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Environmental SRK is unaware of any
factors * Assumptions made regarding possible waste and process environmental factors
or assumptions residue disposal options. It is always necessary as which would preclude
part of the process of determining reasonable the reporting of Mineral
prospects for eventual economic extraction to Resources.
consider the potential environmental impacts of the
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields 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 Historical measurements
density * Whether assumed or determined. If assumed, the basis for density were carried
for the assumptions. If determined, the method used, out using Archimedean
whether wet or dry, the frequency of the measurements principles for consolidated
, fresh core and volumetric
the nature, size and representativeness of the determinations on loose
samples. granular material.
Density values were
calculated based on
* The bulk density for bulk material must have been weights of small pieces
measured by methods that adequately account for void of core (10-15cm), with
spaces (vugs, porosity, etc.), moisture and wax coating used for
differences between rock and alteration zones within (competent) weathered
the deposit. core samples.
Based on density determinations
carried out by CRL in
* Discuss assumptions for bulk density estimates used 2017, SRK has applied
in the evaluation process of the different materials. an average density of
2.9 g/cm(3) to the modelled
zones of mineralization,
based on the median
of the density measurements
within the SVS. This
is considered reasonable
for the purposes of
reporting an Inferred
Mineral Resource.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Classification Data quality, drillhole
* The basis for the classification of the Mineral spacing, geological
Resources into varying confidence categories. confidence and the interpreted
continuity of grades
controlled by the mineralisation
* Whether appropriate account has been taken of all domains have allowed
relevant factors (i.e. relative confidence in SRK to classify portions
tonnage/grade estimations, reliability of input data, of the deposit in the
confidence in continuity of geology and metal values, Inferred Mineral Resource
quality, quantity and distribution of the data). category.
* Whether the result appropriately reflects the
Competent Person's view of the deposit.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Audits SRK is unaware of any
or reviews * The results of any audits or reviews of Mineral reviews or audits which
Resource estimates. may have been completed.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Discussion SRK has assigned portions
of relative * Where appropriate a statement of the relative of the deposit in the
accuracy/ accuracy and confidence level in the Mineral Resource Inferred Mineral Resource
confidence estimate using an approach or procedure deemed category based on the
appropriate by the Competent Person. For example, the drillhole spacing, quality
application of statistical or geostatistical of data and confidence
procedures to quantify the relative accuracy of the in the continuity of
resource within stated confidence limits, or, if such mineralisation. While
an approach is not deemed appropriate, a qualitative it has been assumed
discussion of the factors that could affect the that the SVS will be
relative accuracy and confidence of the estimate. able to be selectively
mined to a cut-off and
while the accuracy of
* The statement should specify whether it relates to the estimated block
global or local estimates, and, if local, state the grades is limited, the
relevant tonnages, which should be relevant to contiguity of the blocks
technical and economic evaluation. Documentation above this grade has
should include assumptions made and the procedures given SRK confidence
used. that this should be
possible.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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