REG - African Pioneer PLC - Ongombo Project-Updated Mineral Resource Estimate
16/05/2023 14:00
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RNS Number : 6101Z African Pioneer PLC 16 May 2023
16 May 2023
African Pioneer Plc
("African Pioneer " or "the Company")
JORC 2012 Indicated and Inferred Mineral Resource Estimate for the Ongombo
Copper Project, Namibia
African Pioneer Plc ("African Pioneer" or the "Company") is pleased to
announce the results of an updated Indicated and Inferred Mineral Resource
Estimate for the Ongombo copper project ("Ongombo" or the "Project") in
Namibia, completed by independent consultants Addison Mining Services. African
Pioneer holds an 85% interest in the Project.
Highlights
· Highly successful drill programme and new Mineral Resource Estimate
results in an additional 100,000 tonnes in contained copper metal and an
additional 84,000 oz of gold across all Resource categories.
· Expenditure of approximately US$480,000 on direct drilling costs
ahead of the most recent Mineral Resource update represents a unit resource
development cost for the additional 100,000 tonnes of contained copper metal
of approximately US$4.8 per tonne of contained metal
· The Ongombo mineralization remains open at depth with scope for the
addition of further tonnage and based on recent twinned drilling, potential
for significantly enhanced gold grades in the East - Ost shoots
· A 25-year Mining Licence has been granted subject to completion of an
active Environmental and Social Impact Assessment.
The updated Mineral Resource Estimate has been completed by Addison Mining
Services Ltd., an independent consultancy based in the United Kingdom and is
reported in accordance with the JORC Code 2012 edition. Resources are of
Indicated and Inferred categories and include:
· Total Indicated Resources of 5.7 million tonnes gross at 1.1 % Cu
Equivalent ("CuEq"), 0.94 % Cu, 0.23 g/t Au and 4.4 g/t Ag, for 53,000 t Cu,
42,000 oz Au and 800,000 oz Ag, including:
o Open pit potential Resources of 0.93 million tonnes at 0.68% CuEq, 0.57 %
Cu, 0.19 g/t Au and 2.6 g/t Ag, for 5,300 t Cu, 5,700 oz Au and 78,000 oz Ag,
above a cut-off grade of 0.25% CuEq
o Underground potential Resources of 4.7 million tonnes at 1.2% CuEq, 1.0%
Cu, 0.24 g/t Au and 4.7 g/t Ag, for 48,000 t Cu, 36,000 oz Au and 72,000 oz
Ag, above a cut-off grade of 0.5% CuEq
· Inferred Underground potential Resources of approximately, 23 million
tonnes at 1.1% CuEq, 0.95% Cu, 0.24 g/t Au and 5.8 g/t Ag, for 220,000 t Cu,
180,000 oz Au and 4.3 million oz Ag, above a cut-off grade of 0.5% CuEq
Notes:
1. The resource figures above are stated on a gross basis - please see full
text below for the resources net attributable to African Pioneer's 85%
interest.
2. Also set out below is a comparison to the previous mineral resource
estimate.
Colin Bird Chairman & CEO said: "I am delighted with the results of our
recent programme and the re-evaluation of the Mineral Resource by the external
consultant which has achieved the significant milestone of increasing the
contained metal content of copper and gold by 100Kt Cu and 84Koz Au.
The initial development of an open pit provides the means to establish a
number of parallel drives excavated in mineralisation enabling us to operate a
larger number of working faces which in turn implies more output and the need
for greater processing capacity which is more efficient than the original
proposal for the development of twin 7m x 7m declines to access underground
resources which imposed a huge capital burden on the Project and a large
proportion of the development was in waste and therefore unproductive.
Our recent drill programme included the twinning of holes drilled by
Goldfields into the deeper East - Ost shoot. This drilling intersected
significant gold values peaking at 1.3g/t Au over 1.15 m with a mean of 0.2
g/t Au. We intend to complete further twinning of holes and if we can
replicate our most recent gold values we will be looking at a Resource with a
significantly enhanced gold credit."
JORC 2012 Indicated and Inferred Mineral Resource Estimate
Project Background
The Ongombo project is situated in Exclusive Prospecting License (EPL) 5772 in
the Khomas region of the Windhoek District of Namibia, 45 km from Windhoek,
the capital of Namibia. The project area has relatively well-developed
infrastructure on the farms Ongombo Ost and Ongombo West. The property is
easily accessed by a tar road from Windhoek to Gobabis and then on a gravel
road up to the project area. There is also a railway line from Gobabis to
Walvis Bay, via Windhoek running parallel to the tarred road. The Ongombo
Project is located 15km northeast from Otjihase Mine which consists of two
underground mines (Otjihase and Matchless) and an 800ktpa copper concentrator.
The Ongombo project lies within the Matchless Member of the Kuiseb Formation,
a conspicuous assemblage of lenses of foliated amphibolites,
chlorite-amphibolite schist, talc schist and metagabbro. This belt, up to 5km
wide in the Otjihase area, stretches 350km east-north-eastwards in the
Southern Zone of the Damara Orogen from the Gorob - Hope area. The deposit is
generally described as a Besshi-type massive sulphide. These are described as
thin sheet-like bodies of massive to well-laminated pyrite, pyrrhotite, and
chalcopyrite within thinly laminated clastic sediments and mafic tuffs. At the
Ongombo project mineralisation occurs in one continuous zone approximately 7
km long and 0.5 - 1 km wide. The mineralisation zone dips consistently
15-20° northwest and plunges 5° northeast. Mineralisation is gradually
thinning westward.
In 2021 the Shali Group sold 85% equity in the Licence to African Pioneer PLC,
African Pioneer are now managers and funders of the License, Shali Group are
County Managers for African Pioneer. In September 2021 a Scoping Study was
completed by consultants Practara Pty Ltd and was based on a Mineral Resource
Estimate undertaken by consultants Red Bush Geoservices. The Scoping study
proposed mining entirely by underground mining and assumed a minimum mining
height of 1.05 m with access via twin declines. Alternative mining scenarios
have been considered in this Resource update.
The pending renewal application for EPL 5772 which expired on 8 March 2023 is
now reflected on the Namibian Mines and Energy Cadastre Map Portal and is for
an additional two-year extension. A conditional Environmental Clearance
Certificate for mining activities was granted on EPL 5772 and is valid until
16 April 2026. A 20 Year Mining Licence, ML 240, was granted on 10 August 2022
and covers a portion of EPL 5772 and approximately one third of the open pit
resource. An extension to the Mining Licence was submitted on 6 September 2022
to encompass the wider Resource Area.
Mineral Resource Estimate
The updated Mineral Resource Estimate has been completed by Addison Mining
Services Ltd., an independent consultancy based in the United Kingdom and is
reported in accordance with the JORC code 2012 edition. Resources are of
Indicated and Inferred categories and include.
· Total Indicated Resources of 5.7 million tonnes gross at 1.1 % Cu
Equivalent ("CuEq"), 0.94 % Cu, 0.23 g/t Au and 4.4 g/t Ag, for 53,000 t Cu,
42,000 oz Au and 800,000 oz Ag, including;
o Open pit potential Resources of 0.93 million tonnes at 0.68% CuEq, 0.57 %
Cu, 0.19 g/t Au and 2.6 g/t Ag, for 5,300 t Cu, 5,700 oz Au and 78,000 oz Ag,
above a cut-off grade of 0.25% CuEq
o Underground potential Resources of 4.7 million tonnes at 1.2% CuEq, 1.0%
Cu, 0.24 g/t Au and 4.7 g/t Ag, for 48,000 t Cu, 36,000 oz Au and 72,000 oz
Ag, above a cut-off grade of 0.5% CuEq
· Inferred Underground potential Resources of approximately, 23 million
tonnes at 1.1% CuEq, 0.95% Cu, 0.24 g/t Au and 5.8 g/t Ag, for 220,000 t Cu,
180,000 oz Au and 4.3 million oz Ag, above a cut-off grade of 0.5% CuEq
Immediately to the north-west of the open pit in the "central shoot" there is
an estimated underground Resource inventory of 2.1 million tonnes at 1.2% Cu
which maybe readily accessed by developing access from the high wall of the
open pit, representing potential for a timely and efficient transition from
open pit to underground mining. The remainder of the Indicated underground
resource may then be accessible following further development. Further studies
are required to assess the economic viability of such an operation.
Ongombo project has been explored for over 30 years and 209 historical drill
holes (pre-1991) have been used to inform the estimate. The Indicated resource
is restricted only to the area where new drilling (2007 and later) has been
completed. The area is 2.2 km by 0.5 km. The northwest of the Ongombo project
is estimated based on historic drilling entirely (drillholes from 1991 and
earlier) and is restricted to the Inferred category. The Inferred area is
approximately 4 km by 0.5 km in surface expression. African Pioneer plans to
explore this area following evaluation of the Indicated open pit and
underground resources and, given favourable results, undertake further
exploration drilling.
The Mineral Resource Estimate is based on wireframe restricted block modelling
with grade estimation by ordinary kriging. Pit optimisation was used to
identify material which may be amenable to open pit mining. These data are
presented in Table 1 below above a cut-off grade of 0.25% CuEq, in addition to
Resources that may be amenable to underground mining techniques above a
cut-off grade of 0.5% CuEq. Cu, Au and Ag grades have been diluted to reflect
minimum mining width of 1.6 m. For further information see JORC Table 1 below.
Supporting images can be found by clicking on the following links.
Figure 1: Ongombo Plan View Drilling Overview
Figure 2: Ongombo MRE Block Model Example Cross-Section
Figure 3: Ongombo Plan View Resource Category
The estimate incorporates new drilling by African Pioneer completed between
22(nd) April and 15 November 2022. African Pioneer drilled 54 shallow diamond
holes, totalling of 2,288.80 m (ranging between 5.89 m and 200.93 m in
depth). Drillhole size was PQ in overburden with HQ tails. All holes were
drilled with inclination -75° and 142° azimuth. In addition, six drillholes
completed in 2017 by Shali Group and 26 drillholes completed in 2008 and 2014
by Namibian Copper Organisation ("NCO") along with 209 drillholes completed by
Tsumeb Corporation Ltd in 1988 - 1991 were used in the estimate.
Table 1: Indicated and Inferred Mineral Resources for the Ongombo Project,
Namibia. *Gross representing 100% estimated Resources.
CuEq% Cut off Tonnage (t) CuEq (%) Cu (%) Au (g/t) Ag (g/t) Cu (t) Au (oz) Ag (oz)
Gross*
Open Pit Indicated
0.25 930,000 0.68 0.57 0.19 2.6 5,300 5,700 78,000
Underground Indicated
0.50 4,700,000 1.20 1.00 0.24 4.7 48,000 36,000 720,000
Total Indicated
Various 5,700,000 1.1 0.94 0.23 4.4 53,000 42,000 800,000
Underground Inferred
0.50 23,000,000 1.10 0.95 0.24 5.8 220,000 180,000 4,300,000
Inferred plus Indicated
Various 29,000,000 1.1 0.94 0.24 5.5 270,000 220,000 5,100,000
Table 2: Indicated and Inferred Mineral Resources for the Ongombo Project,
Namibia. *Net representing 85% estimated Resources reflecting African
Pioneer's interest in the project.
CuEq% Cut off Tonnage (t) CuEq (%) Cu (%) Au (g/t) Ag (g/t) Cu (t) Au (oz) Ag (oz)
Net 85%*
Open Pit Indicated
0.25 790,000 0.68 0.57 0.19 2.6 4,500 4,800 66,000
Underground Indicated
0.50 4,000,000 1.20 1.00 0.24 4.7 41,000 31,000 610,000
Total Indicated
Various 4,800,000 1.1 0.94 0.23 4.4 45,000 36,000 680,000
Underground Inferred
0.50 19,600,000 1.10 0.95 0.24 5.8 190,000 150,000 3,700,000
Inferred plus Indicated
Various 24,700,000 1.1 0.94 0.24 5.5 230,000 190,000 4,300,000
Notes relating to Mineral Resource Estimate:
1. The independent Competent Person for the Mineral Resource Estimate,
as defined by the JORC Code (2012 edition), is Mr. Richard Siddle, MSc, MAIG,
of Addison Mining Services Ltd since November 2014. The effective date of the
Mineral Resource Estimate is 25th of April 2023. Mr Siddle has completed a
site visit between 30(th) April and 1st May 2023.
2. No mineral reserve estimates have been undertaken. Mineral
resources that are not mineral reserves do not have demonstrated economic
viability. The quantity and grade of reported Inferred Resources in this
Mineral Resource Estimate are uncertain in nature and there has been
insufficient exploration to define these Inferred Resources as Indicated or
Measured, however it is reasonably expected that the majority of Inferred
Mineral Resources could be upgraded to Indicated Mineral Resources with
continued exploration and verification including infill drilling, further
verification of legacy drillholes via twin drilling and metallurgical testing.
Following further exploration it may be possible to convert some of the
Inferred Mineral Resources to Indicated Mineral Resources.
3. Copper Equivalent is based on assumed prices of US$9,000 per tonne
Cu, US$1,800 per oz Au and US$20 per oz. Recovery and selling factors (see
below) were incorporated into the calculation of Cu Eq values. It is the
Company's and Competent Persons' opinion that all the elements included in the
metal equivalents calculation (copper, gold and silver) have a reasonable
potential to be recovered and sold.
4. Cu Eq% is calculated as Cu% + (Au×0.522) + (Ag×0.006), with Au
and Ag expressed in terms of g/t.
5. Open pit mining assumes a Cu price of US$9,000 per tonne with 96%
payability on metal in concentrate with selling cost US$480 per tonne, Au
price of US$1,800 per oz with 90% payability and Ag price of $US20 per oz with
90% payability. Pit optimisation and cut-off grade selection was based on the
assumption of 87% recovery of Cu, 75% recovery of Au and 75% recovery of Ag,
by flotation at $11.6/t plus $5.7/t G&A. Mining costs were assumed as
$2/t. Underground mining was based on the same assumptions with a mining costs
of $20/t.
6. Indicated and Inferred Mineral Resource categories set out in the
table above at cut-off grades >0.25% CuEq for open pit and 0.5% CuEq for
underground mining comply with the resource definitions as described in the
Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves. The JORC Code, 2012 Edition. Prepared by: The Joint Ore Reserves
Committee of The Australasian Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and Minerals Council of Australia (JORC).
7. Numbers are rounded to reflect the fact that an Estimate of
Resources is being reported. Rounding of numbers may result in differences in
calculated totals and averages. All tonnes are metric tonnes.
8. Pit slopes were assumed as 40 degrees in overburden and fresh rock.
No geotechnical studies have been completed to support this assumption and the
requirement for shallower pit slopes may serve to materially reduce the open
pit mineral resource.
9. The Mineral Resource Estimate set out above was based on the
wireframe interpretation of the mineralised unit. At the Ongombo project
mineralisation occurs in one continuous zone approximately 7 km long and 0.5 -
1 km wide. The mineralisation zone dips consistently 15-20° northwest and
plunges 5° northeast. Mineralisation is gradually thinning westward.
10. The block size was 10 mE x 30 mN x 5 mZ with further sub-blocking by 5
divisions east and north and 10 divisions in the Z direction. The block model
was rotated by 45° around Z axis.
11. Grades were estimated using Ordinary Kriging of 1 m downhole composites.
An incrementally larger search ellipsoid with dimensions 250 x 75 x 50 m was
used and expanded by a factor of 1, 2 and 3 for Cu and Ag and 1 and 1.5 for
Au. The maximum number of samples per search was restricted to 24.
Discretisation was 2x6x2. The estimate was completed using Micromine 2023.3
software.
12. In order to restrict the influence of high-grade outlier Au assays
thresholds for estimation were applied and samples were clamped to 2 g/t Au
based on the distance from the sample to the estimated block. Samples above 2
g/t used their original value inside a search of 50 x 15 x10 m and were capped
at 2 g/t outside of those radii.
13. Mineralisation in the open pit resource ranges from at surface to 30 m
below the surface and extends approximately 1200 m down-plunge towards
northeast and 100 m down-dip to the northwest. The underground resource
extends from the pit rim 400 m down dip to the northwest and 4,500 m down
plunge to the northeast. Mineralisation is 500 m below surface at its deepest
point.
14. The mineral resource is closed off by drilling and as it nears surface
to the southwest and southeast. In the north east area of the deposit,
mineralisation may continue down dip and plunge and it has been extrapolated
by ~200m from the edge of drilling, were further mineralisation to be present
here it would likely only be amenable to underground mining due to the depth
of the mineralisation unit.
Comparison to Previous Mineral Resource Estimate.
The Previous Mineral Resource Estimate reported in accordance with JORC (2012)
for the Ongombo project was conducted by Red Bush Geoservices with the
effective date of 30th September 2021. The estimate comprised 10.4 million
tonnes of Indicated Resources at 1.4% Cu, 0.35 g/t Au and 7 g/t Ag, and 1.65
million tonnes of Inferred at 1.65 % Cu, 0.35 g/t Au and 7.3 g/t Ag. This
updated estimate represents an increase of approximately 100,000 tonnes of
contained Cu and an additional 84,000 oz of Au over all Resource
classifications. Key differences accounting for the variation in the estimates
are described as follows.
· Red Bush considered the minimum mining height as 1.05 m. AMS
considers this mining height is not realistic in modern mining scenarios. AMS
diluted the model to minimum 1.6 m mining height, therefore the tonnage
reported by AMS is higher and the grades lower.
· Red Bush reported the resource at cut-off grade of 1% Cu, which in
AMS opinion excludes the material with a reasonable prospect of economic
extraction in between 0.5% and 1% Cu. Moreover, Red Bush reports Au and Ag,
however no Au and Ag credits were considered for cut-off calculation and
reporting.
· Reviewing of Red Bush estimate indicates that a number of samples
with values 0 g/t were used where no Au assay was recorded for that sample.
Due to this, AMS is of the opinion that Au is underreported in the Red Bush
MRE. AMS prevented Au grades from over smearing into areas of no assay by use
of smaller search radii, leaving some blocks in the model non-estimated for
Au.
· In AMS' opinion due to data spacing and reliance on historic drilling
the proportion of Indicated resource in East/Ost Shoots is not warranted.
Technical Sign off
The technical information in this release has been reviewed by Mr R. J.
Siddle, MSc, MAIG Principal Resource Geologist for Addison Mining Services
Ltd. Mr. Siddle is an independent Competent Person within the meaning of the
JORC (2012) code and a Qualified Person under the AIM Rules, having over 15
years' experience in the industry. Mr. Siddle has reviewed and verified the
technical information that forms the basis of, and has been used in the
preparation of, the Mineral Resource Estimate and this announcement, including
analytical data, drilling logs, QC data, density measurements, and sampling.
Mr. Siddle consents to the inclusion in this announcement of the matters based
on the information, in the form and context in which it appears. Mr Siddle was
assisted in the preparation of the estimate by Ms P. M. Mierzwa who worked
under the direction of the Competent Person, Ms Mierzwa is thanked for her
involvement and contribution to the study.
Glossary
"CuEq" Copper Equivalent is based on assumed prices of US$9,000 per tonne Cu,
US$1,800 per oz Au and US$20 per oz. Recovery and selling factors (see below)
were incorporated into the calculation of Cu Eq values. It is the Company's
and Competent Persons' opinion that all the elements included in the metal
equivalents calculation (copper, gold and silver) have a reasonable potential
to be recovered and sold.
"g/t" Grammes per tonne
"Indicated Resource" An 'Indicated Mineral Resource' is that part of a Mineral Resource for which
quantity, grade (or quality), densities, shape and physical characteristics
are estimated with sufficient confidence to allow the application of Modifying
Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit.
"Inferred Resource" That part of a Mineral Resource for which quantity and grade (or quality) are
estimated on the basis of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological and grade (or
quality) continuity. It is based on exploration, sampling and testing
information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes.
"Kriging" Geostatistical process to extrapolate numerical values from samples into areas
of no data
"Mineral Resource" A concentration or occurrence of material of economic interest in or on the
earth's crust in such form and quantity that there are reasonable and
realistic prospects for eventual economic extraction. The location, quantity,
grade, continuity, and other geological characteristics of a Mineral Resource
are known, estimated from specific geological evidence and knowledge, or
interpreted from a well-constrained and portrayed geological model.
"oz" Troy Ounce, unit of mass for selling of precious metals.
"PQ" & "HQ" Referring to different drill core diameters, 85mm & 63.5mm respectively
"RC drilling" Reverse circulation drilling
"t" Tonnes (metric)
"$/t" US dollars per tonne
For further information, please contact: African Pioneers PLC
Colin Bird, Chairman Tel +44 (0) 20 7581 4477
Beaumont Cornish Limited - Financial Adviser Tel +44 (0) 20 7628 3396
Roland Cornish/Asia Szusciak
Novum Securities Limited - Joint Broker Tel +44 (0) 20 7399 9400
Colin Rowbury /Jon Belliss
or visit https://africanpioneerplc.com/
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").
JORC Code, 2012 Edition - Table 1 report template
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or · Sampling of African Pioneer 2022 drilling and resampled legacy core
specific specialised industry standard measurement tools appropriate to the was by sawn 1/2 HQ core.
minerals under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad · All samples were sent to prep lab in Namibia and then ship for assays
meaning of sampling. to Actlabs in Colombia.
· Include reference to measures taken to ensure sample representivity · Routine internal and external quality control samples in the form of
and the appropriate calibration of any measurement tools or systems used. certified reference materials were inserted and found to perform adequately.
· Aspects of the determination of mineralisation that are Material to · Sampling was typically 1 m in length with variation to meet
the Public Report. lithological contacts.
· In cases where 'industry standard' work has been done this would be
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may warrant disclosure of detailed
information.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary · All drilling by African Pioneers was HQ diamond drilling with PQ in
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or overburden.
standard tube, depth of diamond tails, face-sampling bit or other type,
whether core is oriented and if so, by what method, etc). · Legacy drilling was diamond and RC drilling, core size information is
not available.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · All African Pioneer drilling was logged for core recovery. Mean total
results assessed. core recovery was >92%
· Measures taken to maximise sample recovery and ensure representative · No relationship was identified between recovery and grade.
nature of the samples.
· Details of legacy drilling are unknown.
· 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 and · All African Pioneer drilling was geotechnically and geologically
geotechnically logged to a level of detail to support appropriate Mineral logged.
Resource estimation, mining studies and metallurgical studies.
· Details of legacy geotechnical logs are unknown.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography. · Of the legacy drillholes seventeen drillholes have no geology Log.
· 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, half or all core · African Pioneer core was sawn. Inspection of historical core shows it
taken. was sawn and half core sampled.
· If non-core, whether riffled, tube sampled, rotary split, etc and · 9.6% Field duplicates were taken during African Pioneer drilling and
whether sampled wet or dry. showed good precision.
· For all sample types, the nature, quality and appropriateness of the · No duplicate data is available for legacy core.
sample preparation technique.
· Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples.
· Measures taken to ensure that the sampling is representative of the
in situ material collected, including for instance results for field
duplicate/second-half sampling.
· Whether sample sizes are appropriate to the grain size of the
material being sampled.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · During 2022 Diamond Drilling African Pioneer collected 201 half core
laboratory procedures used and whether the technique is considered partial or samples (including field duplicates) and inserted 23 control samples (12 SRMs
total. and 11 blanks), which respectively represents 5.9% and 5.5% of the whole
sample population.
· For geophysical tools, spectrometers, handheld XRF instruments, etc,
the parameters used in determining the analysis including instrument make and · Control Samples were checked for Cu, Au and Ag. No bias has been
model, reading times, calibrations factors applied and their derivation, etc. identified.
· Nature of quality control procedures adopted (eg standards, blanks, · No QC data is available for legacy core.
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie lack of bias) and precision have been established.
Verification of sampling and assaying · The verification of significant intersections by either independent · African Pioneer assay data was imported into a relational database
or alternative company personnel. and merged by query from the digital certificates.
· The use of twinned holes. · Historic procedures are unknown.
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
· Discuss any adjustment to assay data.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · African Pioneer drilling was surveyed by DGPS.
and down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation. · Data was collected in WGS 84 UTM Zone 33S.
· Specification of the grid system used. · No topographic survey was completed. This is not expected to
materially impact the resource estimate although a detailed topographic survey
· Quality and adequacy of topographic control. is recommended for mine planning.
· Details of legacy survey are unknown.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Drillhole spacing is 30 and 50 m by 70 and 100m in the area of the
indicated resource, and 50 to 100 m by 100 to 200 m in the inferred resource
· Whether the data spacing and distribution is sufficient to establish area.
the degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and classifications applied. · Data spacing is close enough to establish geological continuity in
the open pit resource area and underground resource area.
· Whether sample compositing has been applied.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · All African Pioneer drilling is with inclination -75° and 142°
possible structures and the extent to which this is known, considering the azimuth. The mineralization is inclined along the strike to the northwest and
deposit type. dipping gently to the northeast.
· If the relationship between the drilling orientation and the · The orientation of legacy drilling was provided, however questions
orientation of key mineralised structures is considered to have introduced a regarding data quality were raised.
sampling bias, this should be assessed and reported if material.
· The orientation of drilling is not assumed to have introduced a
sample bias.
Sample security · The measures taken to ensure sample security. · Samples were transported by company personnel to the lab in labelled
bags. Lab standard submission forms were used.
· Historic procedures are unknown.
Audits or reviews · The results of any audits or reviews of sampling techniques and data. · No such reviews have been completed.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including In 2021 the Shali Group sold 85% equity in the Licence to African Pioneer PLC,
agreements or material issues with third parties such as joint ventures, African Pioneer are now managers and funders of the License, Shali Group are
partnerships, overriding royalties, native title interests, historical sites, County Managers for African Pioneer.
wilderness or national park and environmental settings.
EPL 5772 expired on 08 March 2023. On 03 March 2023, Shali Group submitted an
· The security of the tenure held at the time of reporting along with application to the Ministry of Mines and Energy for an additional two year
any known impediments to obtaining a licence to operate in the area. extension. Having fulfilled all requirements, the Company has no reason to
believe that the licence will not be renewed. Furthermore a conditional
Environmental Clearance Certificate for mining activities was granted on for
EPL 5772 and is valid until 16 April 2026. In addition to the EPL a 20 Year
Mining Licence, ML 240, was granted on 10 August 2022 and covers a portion of
EPL 5772 and approximately one third of the open pit resource. An extension to
the Mining Licence was submitted on 6 September 2022 to encompass the wider
Resource Area.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · Six drillholes completed in 2017 by Shali Group and 24 drillholes
completed in 2014 by Namibian Copper Organisation ("NCO") along with 209
drillholes completed by Tsumeb Coorperation Ltd in 1988 - 1991.
· Review of some historical drill core has been completed by previous
CPs for other studies and found to be visually similar to the that which is
recorded in the database.
· The CP for this study was unable to complete visual inspection of
legacy core during the site visit due sudden short term illness and public
holidays during part of the site visit.
Geology · Deposit type, geological setting and style of mineralisation. · The Ongombo project lies within the Matchless Member of the Kuiseb
Formation, a conspicuous assemblage of lenses of foliated amphibolites,
chlorite-amphibolite schist, talc schist and metagabbro. This belt, up to 5km
wide in the Otjihase area, stretches 350km east-north-eastwards in the
Southern Zone of the Damara Orogen from the Gorob - Hope area. The deposit is
generally described as a Besshi-type massive sulphide. These are described as
thin sheet like bodies of massive to well-laminated pyrite, pyrrhotite, and
chalcopyrite within thinly laminated clastic sediments and mafic tuffs. At the
Ongombo project mineralisation occurs in one continuous zone approximately 7
km long and 0.5 - 1 km wide. The mineralisation zone dips consistently 15-20°
nortwest and plunges 5° northeast. Mineralisation is gradually thinning
westward.
Drill hole Information · A summary of all information material to the understanding of the · No exploration results are presented in this announcement.
exploration results including a tabulation of the following information for
all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of the
drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
· If the exclusion of this information is justified on the basis that
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · No exploration results are presented in this announcement.
maximum and/or minimum grade truncations (eg cutting of high grades) and
cut-off grades are 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 reporting of · No exploration results are presented in this announcement.
Exploration Results.
· If the geometry of the mineralisation with respect to the drill hole
angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (eg 'down hole length, true width
not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · No exploration results are presented in this announcement.
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 Results is not · No exploration results are presented in this announcement.
practicable, representative reporting 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, should be · No exploration results are presented in this announcement.
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
Further work · The nature and scale of planned further work (eg tests for lateral · Further drilling is required in areas of only legacy drilling to
extensions or depth extensions or large-scale step-out drilling). confirm historical results.
· Diagrams clearly highlighting the areas of possible extensions, · Further drilling is required in areas of sparse drilling to improve
including the main geological interpretations and future drilling areas, confidence of the resource.
provided this information is not commercially sensitive.
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to
this section.)
Criteria JORC Code explanation Commentary
Database integrity · Measures taken to ensure that data has not been corrupted by, for · African Pioneer sampling was imported into a relational database from
example, transcription or keying errors, between its initial collection and digital certificates.
its use for Mineral Resource estimation purposes.
· All data was validated for overlapping intervals, intervals beyond
· Data validation procedures used. drillhole depth etc.
· Legacy data has been validated as best is possible and by comparison
to different versions of the historical database.
Site visits · Comment on any site visits undertaken by the Competent Person and the · Site visit has been undertaken between 30(th) April and 1st May 2023.
outcome of those visits.
· If no site visits have been undertaken indicate why this is the case.
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological · The Mineral Resource Estimate set out above was based on the
interpretation of the mineral deposit. wireframe interpretation of the mineralized unit based on lithological and
assay information.
· Nature of the data used and of any assumptions made.
· The Ongombo project consists of one mineralised unit which is
· The effect, if any, of alternative interpretations on Mineral continuous over the area covered by drilling.
Resource estimation.
· The use of geology in guiding and controlling Mineral Resource
estimation.
· The factors affecting continuity both of grade and geology.
Dimensions · The extent and variability of the Mineral Resource expressed as · Mineralisation in the open pit resource ranges from at surface to
length (along strike or otherwise), plan width, and depth below surface to the 30 m below the surface and extends approximately 1200 m down-plunge towards
upper and lower limits of the Mineral Resource. northeast and 100 m down-dip to the northwest. The underground resource
extends from the pit rim 400 m down dip to the northwest and 4,500 m down
plunge to the northeast. Mineralisation is 500 m below surface at its deepest
point.
The mineral resource is closed off by drilling and as it nears surface to the
southwest and southeast. In the north east area of the deposit, mineralisation
may continue down dip and plunge and it has been extrapolated by ~200m from
the edge of drilling, were further mineralisation to be present here it would
likely only be amenable to underground mining due to the depth of the
mineralisation unit.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied The block size was 10 mE x 30 mN x 5 mZ with further subblocking by 5
and key assumptions, including treatment of extreme grade values, domaining, divisions east and north and10 divisions vertically to reflect thin parts of
interpolation parameters and maximum distance of extrapolation from data the mineralisation unit. The block model was rotated by 45° along Z axis
points. If a computer assisted estimation method was chosen include a
description of computer software and parameters used. · Grades were estimated using Ordinary Kriging of 1 m downhole
composites, grade capping for Au estimation was applied to eliminate high
· The availability of check estimates, previous estimates and/or mine grade outliers. An incrementally larger search radius of 250, 500 and 750 m
production records and whether the Mineral Resource estimate takes appropriate was used. The maximum number of samples per search was restricted to 24.
account of such data. Discretisation was 2x6x2. The estimate was completed using Micromine 2023.3
software.
· The assumptions made regarding recovery of by-products.
· Mineralization is typically 0.4 to 3 m thick and mining with
· Estimation of deleterious elements or other non-grade variables of minimum 1.6 m width is envisaged.
economic significance (eg sulphur for acid mine drainage characterisation).
· A legacy estimate completed by Red Bush in 2021 disclosed
· In the case of block model interpolation, the block size in relation resource estimate of 12 million tonnes at 1.4% Cu. No dilution to encounter
to the average sample spacing and the search employed. for minimum mining width was applied.
· Any assumptions behind modelling of selective mining units. · No assays are available for deleterious elements
· Any assumptions about correlation between variables.
· Description of how the geological interpretation was used to control
the resource estimates.
· Discussion of basis for using or not using grade cutting or capping.
· The process of validation, the checking process used, the comparison
of model data to drill hole data, and use of reconciliation data if available.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Tonnages are estimated on a dry basis.
moisture, and the method of determination of the moisture content.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · Open pit mining assumes a Cu price of US$9,000 per tonne with 96%
applied. payability on metal in concentrate with selling cost US$480 per tonne, Au
price of US$1,800 per oz with 90% payability and Ag price of $US20 per oz with
90% payability. Pit optimisation and cut-off grade selection was based on the
assumption of 87% recovery of Cu, 75% recovery of Au and 75% recovery of Ag,
by flotation at $11.6/t plus $5.7/t G&A. Mining costs were assumed as
$2/t. Underground mining was based on the same assumptions with a mining costs
of $20/t.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · Open pit mining is assumed with 5% dilution.
dimensions and internal (or, if applicable, external) mining dilution. It is
always necessary as part of the process of determining reasonable prospects · 40 degree pit slopes in overburden and fresh rock assumed. There are
for eventual economic extraction to consider potential mining methods, but the no geotechnical studies to support this.
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this · Detailed underground mining methods have yet to be investigated.
should be reported with an explanation of the basis of the mining assumptions 5-10% dilution is assumed.
made.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · No metallurgical testwork has been completed.
amenability. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider potential · 87% Cu recovery is assumed by floatation, 75% recovery is assumed for
metallurgical methods, but the assumptions regarding metallurgical treatment Au and Ag.
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.
Environmen-tal factors or assumptions · Assumptions made regarding possible waste and process residue · The project is located in a prominent mining area. No major
disposal options. It is always necessary as part of the process of determining settlements are within the immediate vicinity of the project. Adequate space
reasonable prospects for eventual economic extraction to consider the is available for disposal of waste rock and tailings.
potential environmental impacts of the mining and processing operation. While
at this stage the determination of potential environmental impacts, · Social and environmental studies are required to assess the impact on
particularly for a greenfields project, may not always be well advanced, the local communities which may have an interest in the land use, as well as the
status of early consideration of these potential environmental impacts should impact on wildlife and water.
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 for the · African Pioneer collected 211 bulk density samples over a range of
assumptions. If determined, the method used, whether wet or dry, the frequency lithologies, however only 50 of them lie within mineralisation zone.
of the measurements, the nature, size and representativeness of the samples.
· Samples were weighed dry with and without wax and waxed samples
· The bulk density for bulk material must have been measured by methods submerged in water to account for porosity.
that adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit. · Density values in t/m3 were estimated into the block model using
Inverse Power of Distance, mean of estimated and raw density value is
· Discuss assumptions for bulk density estimates used in the evaluation comparable. Average density in the block model is 2.96 t/m3.
process of the different materials.
Classification · The basis for the classification of the Mineral Resources into · The estimate is based on a large proportion of legacy data. It is
varying confidence categories. recommended to review the legacy data to increase confidence in the resource.
· Whether appropriate account has been taken of all relevant factors · In areas of closes spaced and newer drilling confidence in the
(ie relative confidence in tonnage/grade estimations, reliability of input estimation of mineralized volumes and grades is highest. The CP visited the
data, confidence in continuity of geology and metal values, quality, quantity site to inspect the project geology and as such the estimate is classified
and distribution of the data). with indicated category.
· Whether the result appropriately reflects the Competent Person's view · In areas of the sparse drilling and where only old drilling data is
of the deposit. available the confidence is estimation of mineralized volumes and grades in
lower, hence the category of that resource is assigned as inferred.
· Geotechnical pit slope analysis may serve to materially change the
open pit resource estimate.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · The have been no such audits or reviews.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · The estimate is local estimate and is accurate to those typical of an
level in the Mineral Resource estimate using an approach or procedure deemed inferred estimate with errors of +/-30 on a local basis and +/- 20-30% on a
appropriate by the Competent Person. For example, the application of global basis.
statistical or geostatistical procedures to quantify the relative accuracy of
the 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.
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