REG - Alien Metals Limited - Elizabeth Hill and Hancock Project Updates
26/04/2023 07:15
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RNS Number : 5111X Alien Metals Limited 26 April 2023
Trading Symbols
AIM: UFO FWB: I3A1
26April 2023
Alien Metals Ltd
("Alien Metals" or "the Company")
Maiden JORC Ore Reserves at Hancock Iron Ore Project
Elizabeth Hill Update
Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration and development
company, is pleased to deliver a maiden JORC compliant Mineral Reserve for the
Company's flagship Hancock Iron Ore Project ("Hancock"), situated in the
prolific iron ore producing region of the Pilbara, Western Australia.
Further, the Company is pleased to report further drill results from the
Natalie Hill South prospect, Elizabeth Hill, Australia's highest grade silver
deposit.
Highlights
Hancock Iron Ore
· Maiden Ore Reserves of:
o Ore Reserve 1.9Mt @ 60.2% Fe and
o Mining Inventory 4.2Mt @ 60.5% Fe, inclusive of Reserves
· Updated JORC Mineral Resource Estimate ("MRE") (using a 58% cut off grade):
o Indicated Resource 1.7Mt @ 61.0% Fe, and
o Inferred Resource 7.4Mt @ 60.1% Fe
o Global Resource 9.1Mt @ 60.3% Fe
· Inaugural declaration of Indicated Mineral Resources of 1.7 million tonnes ("Mt") @ 61.0% Fe
· Confidence in project resource has increased with the inaugural Ore Reserves and Indicated Mineral Resources being defined
· 71% of the combined resource at Ridges C and E is now classified as Indicated Mineral Resource material
· Drilling is currently underway at Sirius Extension to deliver additional Mineral Resource and Ore Reserve upgrades as the Company approaches Financial Investment Decision (FID) for the Project
· Further potential to increase Hancock's mineral resource remains on unexplored ridges
· Commercial negotiations ongoing with preferred proponents for project material packages
· Offtake discussions progressing on schedule
· The Company's procurement efforts are on target to deliver ±US$10 million in CAPEX savings from the initial estimate of US$30 million in the Scoping Study
Elizabeth Hill
· Results from 22AMC007 indicate potential for new target PGE reefs in the area at Elizabeth Hill
· The headframe refurbishment works at the Elizabeth Hill mine site have been completed
Rod McIllree, Executive Chairman, commented:
"The updated JORC Mineral Resource and maiden Ore Reserve for the Hancock Project further confirms our confidence in the Project with its high grade, direct shipping quality iron ore. This, combined with the ongoing negotiation of commercial tenders for the material packages associated with the Hancock Project lays the strong economic foundations for project and operational execution. In the coming weeks, I look forward to sharing the outcomes of these negotiations with you as we finalise the pathway to operations.
"It is also exciting to see that this recent drilling has successfully intersected Judy's Reef, demonstrating the Company's understanding of potential expansions of the existing resource at and around the Munni Munni/Elizabeth Hill Area, but also, highlighting new targets of untested PGE reefs similar to that seen at the main Munni Munni complex. The geochemical and geological targeting model that the Company's geologists are working on will assist future drill programs to unlock the value at one of Australia's premier layered ultramafic complexes."
Summary - Hancock Project
The Company is pleased to report its significant Maiden Ore Reserve based upon an updated JORC MRE for the high grade, direct ship ore, Hancock Project.
JORC Mineral Resource Estimate 9.1Mt @ 60.3% Fe
JORC Probable Ore Reserve 1.9Mt @ 60.2% Fe
The Hancock Project is located 17 kilometres ("km") north of the regional iron ore mining hub of Newman, Western Australia. The geology of the area supports nearby world class iron ore mines and the Company has an opportunity to build on the current high confidence JORC compliant mineral resources and ore reserves to develop a long life, direct ship, high grade iron ore mine.
Mineral Reserves and Mining Inventory
The Company engaged a respected, independent consultancy, Burnt Shirt Pty Ltd ("Burnt Shirt") to complete mining studies to develop Ore reserves for the Hancock Project. The result of these studies has resulted in a JORC compliant Probable Ore reserve of:
Ore Reserve - 1.9 Million tonnes @ 60.2% Fe
Table 1 - Ore Reserve Estimate
Material Tonnes (Mwmt) Volume (Mbcm) Fe SiO(2) Al(2)O(3) P LOI Mn
Proved - - - - - - -
Probable 1.9 0.7 60.16 5.69 3.54 0.12 3.85 0.02
Total 1.9 0.7 60.16 5.69 3.54 0.12 3.85 0.02
Burnt Shirt estimated a mining inventory, using the same modifying factors as the Ore reserve, and inclusive of the Ore Reserve, of:
Mining Inventory - 4.2 Million tonnes @ 60.5% Fe
Table 2 - Mining Inventory
Material Tonnes (Mwmt) Volume (Mbcm) Fe SiO(2) Al(2)O(3) P LOI Mn
Unclassified 4.2 1.6 60.51 4.11 3.53 0.15 4.74 0.04
Total 4.2 1.6 60.51 4.11 3.53 0.15 4.74 0.04
The Company's wholly owned subsidiary, Iron Ore Company of Australia Pty Ltd (IOCA), is the Manager and Operator of the Hancock Project. IOCA is the legal and beneficial owner of a 90% direct interest in the Licences, Ore Reserves and Mining Inventory associated with the Hancock Project. Accordingly on a net basis the figures above are as follows: Ore Reserve - 1.71 Million tonnes @ 60.2% Fe and Mining Inventory - 3.8 Million tonnes @ 60.5% Fe.
Mineral Resource Estimate
Following the announcement of the September 2021 Hancock MRE, the Company completed additional reverse circulation ("RC") and diamond core ("core") drilling on the Ridge C and Ridge E prospects. This drilling successfully upgraded large portions of the project from Inferred to Indicated material, reflecting strong continuity and predictability of these high grade zones.
Highlights from this updated MRE:
· Global tonnes 9.1Mt @ 60.3% Fe
· Indicated tonnes have increased from nil to 1.7Mt @ 61.0% Fe
· 64% of material at Ridge C is now Indicated Resource material
· 77% of material at Ridge E is now Indicated Resource material
· The Indicated Fe grade for Ridge C is 60.9%
· The indicated Fe grade for Ridge E is 61.0%
· Core drilling has commenced at Sirius Extension with the aim of improving geological confidence to enable Indicated classification of portions of the high-grade material after the required MRE works are completed during the coming months
Table 3 - Hancock Mineral Resource Statement (cut-off grade 58%)
Classification Category Prospect Mass (Million Tonnes) Average Value
Fe SiO(2) Al(2)O(3) P LOI MnO
% % % % % %
Indicated Sirius Extension
Ridge C 0.7 60.9 4.9 3.27 0.12 3.7 0.03
Ridge E 1.0 61.0 5.2 3.30 0.12 3.4 0.02
Sub Total - Indicated 1.7 61.0 5.1 3.29 0.12 3.5 0.02
Inferred Sirius Extension 6.7 60.1 4.1 3.71 0.17 5.2 0.05
Ridge C 0.4 60.8 4.6 3.07 0.14 4.4 0.03
Ridge E 0.3 59.8 4.9 3.64 0.17 5.0 0.02
Sub Total - Inferred 7.4 60.1 4.2 3.67 0.17 5.2 0.05
Total 9.1 60.3 4.3 3.60 0.16 4.9 0.04
The Companies wholly owned subsidiary, Iron Ore Company of Australia Pty Ltd (IOCA), is the Manager and Operator of the Hancock Project. IOCA is the legal and beneficial owner of a 90% direct interest in the Licences, Ore Reserves and Mining Inventory associated with the Hancock Project. Accordingly on a net basis the figures above are as follows: Indicated sub-total - 1.53 Million tonnes @ 61.0% Fe and Inferred sub-total - 6.66 Million tonnes @ 60.1% Fe for a total MRE of 8.19 Million tonnes @ 60.3% Fe..
Summary - Elizabeth Hill
Further to the Company's RNS on 20 February 2023, the Company is pleased to report the final Assay results from four reverse circulation holes have been received for Elizabeth Hill.
The drill holes were positioned to test an electromagnetic ("EM") anomaly and the continuance of Judy's Reef, which is 1.5km south of Elizabeth Hill. Pleasingly, the results have indicated the presence of broad zones of anomalous Ni and Cu in an area that is co-incident with an EM anomaly and the interpreted position of an extension to Judy's Reef.
The new data (see figure 1) from the drilling and geological interpretation demonstrates that a reef, similar to the significant ones at Central Munni Munni, is located further west of this drilling. The reported anomalous PGEs, Ni, Cu and elevated Chromium units are of a similar tenor form and reef style orientation, with a similar dip to the granite contact as seen at the Munni Munni Resource area. The main reef at Munni Munni is known as the Ferguson Reef. It is part of the historical non JORC compliant resource of 24Mt at 2.9 grammes per tonne ("g/t") Platinum Group Metals ("PGM") and gold for 2.2 million ounces ("Moz").
Figure 1 - Cross Section J Reef at Elizabeth Hill South
To support future drilling campaigns, the Company has recently commenced a
significant geochemical signature program capturing pXRF data down complete
holes through the Ferguson Reef area to create a geochemical fingerprint and
signature of the prospective ultramafic sequences in the Munni Munni
tenements.
By systematically recording the geochemical information at regular intervals,
the Company's geologists will be able to use advanced artificial intelligence
techniques to predict the height in the stratigraphic sequence and which
direction to the prospective resource rich zones are located. This geochemical
signature program, although just commenced, has already highlighted
similarities between the Ferguson Reef signature (which demonstrates Chromium
("Cr") at the basal part of the zone), and the recent drilling at Elizabeth
Hill South. The cross-section for hole 22AMC007 (see Figure 1) demonstrates
the elevated Cr anomaly, combined with geological mapping and interpretation
has identified high priority areas for future drilling campaigns targeting
high grade new PGE reefs.
The Company, through its acquisitions of the Elizabeth Hill and Munni Munni
deposits, has the enviable position of being the first company to consolidate
the wider Munni Munni complex into one project, allowing it to better identify
and unlock a potential major mineralised system (see Figure 2).
Figure 3 - Alien Metals Consolidated Tenement Holdings
For further information please visit the Company's website at
www.alienmetals.uk, or contact:
Beaumont Cornish Limited (Nomad)
James Biddle / Roland Cornish
Tel: +44 (0) 207 628 3396
WH Ireland Ltd (Joint Broker)
Harry Ansell / Katy Mitchell
Tel +44 (0) 207 220 1666
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Said Izagaren
Tel: +44 (0) 20 7138 3204
Further Information
Elizabeth Hill & Munni Munni
The programme of reverse circulation drilling at Elizabeth Hill comprised of
eight holes for a total of 709 metres ("m"). Five regional holes were drilled
in one line several hundred metres to the north but failed to identify any
structure suggesting a change in trend of the mineralisation. Two holes will
be re-entered and completed using a diamond drill rig to push past the water
into the mineralised envelope. The mineralisation, as intersected in this
drilling, is on the contact of a structurally controlled contact between
granite and ultramafic rocks thought to create a metal receptive reactive
shear zone as well as a metal rich liquid highway. The main high-grade vein of
silver plunges steeply to the south and testing of interpreted parallel
structures will be part of future drilling. The polymetallic nature of the
mineralisation, with Pb values up to 2.09% (22AMC001) recorded, has not been
fully accounted for in previous work demonstrating potential for additional
product co and by-product including Pb, Au, Pt and Pd.
Elizabeth Hill is located 45km southeast of the city of Karratha, Western
Australia. The project is situated in the Pilbara Craton, a region well-known
for precious metal mineralisation. Elizabeth Hill is recognised as being
Australia's highest-grade silver mine when it was in production between
1999-2000.
Elizabeth Hill had a pre JORC 2012 resource of 4.05Moz of silver prior to the
start of mining and was renowned for its exceptional native silver nuggets and
silver wires. Over one million ounces of silver, mainly in the form of
nuggets, were produced between 1999-2000 from a single shaft and small
processing plant before the mine was closed due to water inflow. Elizabeth
Hill is 100% owned by the Company and Alien is undertaking a complete review
of all historic data from both surface and underground drilling with a view to
reopening the mine.
The Company also owns the nearby Munni Munni Project (4km southwest of
Elizabeth Hill) which hosts significant PGE mineralisation. Munni Munni has a
historical non JORC compliant resource of 24Mt at 2.9g/t Platinum Group Metals
("PGM") and gold for 2.2Moz. This includes 1.14Moz of palladium, 0.83Moz of
platinum, 152koz gold and 76koz of rhodium. The Munni Munni Project is one of
Australia's largest PGM deposits.
Figure 4 - Location of EH Project and Munni Munni PGM Ni Cu Project,
Pilbara, Western Australia
Hancock Project
• The initial Life of Mine scoping study shows the current resource
will sustain a multi-year mine life based on the following parameters:
o Mining rate of 1.25 million tonnes per annum ("Mtpa") with a pre-production
capital estimate of =2000ppm with less than 2m internal waste with other element averages reported within the same interval.
bdl = below detection limit
Table 5 - Drill Hole Collar Table
Hole number Easting MGA94z50 Northing MGA94z50 AHD Depth (m) Collar dip Azimuth (magnetic)
22AMC004 487642 7666557 480 160 -60 90
22AMC005 487565 7666570 480 160 -60 90
22AMC006 487502 7666559 480 160 -60 90
22AMC007 487412 7666563 480 170 -60 90
Hancock Project
Competent Person's Statements - Hancock Project
The information in this report that relates to the Hancock Mineral Resources
is based on information compiled by Mr Howard Baker, a Competent Person who is
a Fellow of the Australasian Institute of Mining and Metallurgy and is
employee by Baker Geological Services Ltd. Mr Baker has sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which they are undertaking to qualify as a
Competent Person as defined in the 2012 edition of the Australasian Code for
the Reporting of Exploration Results, Mineral Resources, and Ore Reserves
(JORC Code). Mr Baker consents to the disclosure of information in this report
in the form and context in which it appears.
Mr Baker of BGS is a resource geologist with 25 years experience covering
multiple commodities from early-stage exploration through to definitive
feasibility studies. Mr Baker is the Managing Director of BGS and previously
worked for the International Mining Consultancy, SRK Consulting (UK) Ltd
("SRK") where he was employed for eight years as a Principal Consultant and
Practice Leader. In his time at SRK, he focused on the management of Mineral
Resource Estimates with a strong focus on technical quality management and
compliance to international reporting codes. In addition, he played a key role
in advising on suitable exploration protocols and drill programmes and
effectively assisted clients in the development of numerous large-scale iron
ore projects. Prior to his time at SRK, Mr Baker lived and worked in
Australia, working for Rio Tinto, BHP Billiton, Iluka Resources and Anaconda
Nickel.
Mr Baker has extensive global experience in the geology and Mineral Resource
Estimation of iron ore projects and worked as a mine geologist and specialist
resource geologist in the iron ore Pilbara district of Western Australia.
The information in this report relating to Ore Reserves is based on
information compiled by Mr Jeremy Peters, a Director of Burnt Shirt Pty Ltd, a
Fellow of The Australian Institute of Mining and Metallurgy (AUSIMM) and
Chartered Professional Geologist and Mining Engineer of that organisation who
has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity that he is
undertaking, to qualify as Competent Person as defined in the 2012 Edition of
the "Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves". Mr. Peters consents to the inclusion in the document of the
information in the form and context in which it appears.
Material Information for Mineral Resources
Mineral Resource Estimation Summary
This updated Mineral Resource Estimate was completed by Baker Geological Services Ltd ("BGS"), being an independent external consultancy to the Company. The Mineral Resource Statement has been classified by Competent Person, Howard Baker (FAusIMM(CP)) in accordance with guidelines contained in the JORC Code. Mr Baker of BGS has visited the Hancock Project site and observed the local outcropping geology and exploration activities. As such, BGS has relied upon their own observations as well as on information supplied by the Company for previous exploration activities and the QA/QC practices adopted. The Mineral Resource Statement has an effective date of 24 March 2023. Mineral Resources that are not Mineral Reserves have no demonstrated economic viability. BGS and Alien are not aware of any factors (environmental, permitting, legal, title, taxation, socioeconomic, marketing, political, or other relevant factors) that have materially affected the Mineral Resource Estimate.
The Mineral Resource Estimate covers three prospects within the tenement boundary. These are Sirius Extension, Ridge C and Ridge E.
Geology and Geological Interpretation
The Hancock Project is located some 20km northwest of the town of Newman in Western Australia. This area is part of the world class Hammersley Province, dominated by a sedimentary basin located between the Yilgarn and Pilbara Cratons. The Hammersley Group rock unit, located within the Hammersley Province, hosts the economically significant West Australia iron ore deposits at locations such as Tom Price, Paraburdoo, Hope Downs and Newman.
The Hamersley iron deposits were formed during the deformation process by hydrothermal enrichment of the pre-existing BIFs, when hot, saline, basinal fluids were squeezed out of the sedimentary pile and expelled along active structural pathways. Where these fluids came into contact with the BIFs, they dissolved away silica, oxidised the magnetite to martite, and replaced the intervening chert layers with porous platy hematite. The resulting low-silica 'martite-microplaty haematite' ore is typical of the Brockman Formation iron deposits. A more hydrated, martite-goethite ore is also common in the Marra Mamba, near the base of the sequence. And the upper zones of ore bodies may also be weathered to a pure goethite ore.
The tenement area consists of a series of low east / west running rocky ridge lines separated by shallow valleys. The area has been structurally deformed with the presence of numerous fold hinges, some isoclinal, but all trending east/west with a shallow (<34°) plunge.
Most of the ridge lines consist of BIF which is part of the Weeli Wolli Formation. The Weeli Wolli Formation is described as a thick succession of jaspilite, shale, and dolerite overlying the Brockman Iron Formation. The iron formations stand out as ridges on which there is some exposure, but the intervening shale and dolerite are rarely exposed.
Drilling Techniques
Sirius Extension
Drilling completed by Alien Metals (16 RC holes / 1,481m and 1 core hole / 124m) and Volta Mining (4 RC holes / 475m). Upper portions of the deposits are well drilled on a 80m x 40m grid with wider spaced drilling at depth and further along strike. Drilling was dominantly at -60o towards the south or north. The majority of holes were downhole surveyed by various methods and collars located by contracted or mine surveyors. The RC holes are 5 ¼" nominal diameter and the core hole was HQ size.
Ridge C and Ridge E
The Ridge C resource model contains 88 RC holes and 1 core hole for 2,856m and 33m respectively. The Ridge E resource model relies upon 85 RC holes for 3,167m of drilling. Holes are on a nominal 40m x 40m spacing and drilled at -60o towards the north utilising a 5 11/4" drill hole with regular down hole surveys and collar locations picked up by licensed surveyors where practicable.
Sampling Techniques, Sub-sampling Techniques, Sample Preparation and Analysis
RC sampling of a ~3kg split from the bulk sample was commonly done with assay by XRF methods at certified laboratories located in Perth.
HQ core was sawn in half and one half was sent for assay. Sampling of core was commonly to 1m intervals and occasionally to intervals of geological interest. Quality control data was included in all drill programs. A review of the QAQC data found analytical results to be satisfactory and suitable for inclusion in the resource estimation.
Mineral Resource Estimation
The domain coded drill hole data was used in a geostatistical study that enabled Ordinary Kriging ("OK") to be used as the main interpolation method. The results of the geostatistical study were used to determine the most appropriate search parameters used in the grade estimate.
The interpolation used an elliptical search following the predominant dip and dip direction of the geological zones.
Grades of Fe, Al2O3, SiO2, P, LOI, MnO and P were interpolated into the empty block model. An Inverse Distance Weighting ("IDW") algorithm was used for the Cap at Sirius Extension and Fe was also interpolated using IDW in all other domains as a check estimate.
Downhole gamma data were used to assign density to the Ridge and Sirius domains using a moisture correction factor. At present, moisture assays are not available for the project and as such, a correction factor has been selected based on the analysis of moisture by a Certified laboratory from samples derived from Ridge C of 6% moisture.
The average corrected density value for Ridge C and E is 2.74 g/cm3 and at Sirius Extension, 2.5 g/cm3. No correction has been made for the Cap or fresh and oxidised domains due to the lack of moisture data.
At Sirius Extension, it is worth noting that the density data stops at the location of the interpreted water table and at the approximate contact of the high/low SiO2 domains. It is possible that density will increase above the current average of 2.5 g/cm3 within the high SiO2 domain. In the absence of other data however, the conservative approach has been taken using the raw caliper adjusted downhole gamma data.
The interpolated block model was validated through visual checks and a comparison of the mean input composite and output model grades. BGS is confident that the interpolated block grades are a reasonable reflection of the available sample data.
Mineral Resource Classification
The Project has been classified as containing Indicated and Inferred Mineral Resources. No Measured Mineral Resources have been assigned due to limitations in the data such as limited density data and absent (accurate) validation drilling data to confirm the quality of the RC data used in the MRE. However, infill drilling at Ridge C and E is now on a density in places that allows a robust geological model to be created with excellent continuity between sections. In addition, a bulk sample collected at Ridge C confirms the location of high-grade material, although not representative of the overall resource grade.
BGS has also completed a site visit to the Project and observed the mineralisation in the field. The addition of the topographic survey and aerial photography has also allowed an extra level of detail to be applied in the modelling.
As such, portions of the Ridge C and E prospects have been classified as an Indicated Mineral Resource with Sirius Extension remaining in the Inferred category. No additional drilling has been completed at Sirius Extension since the completion of the maiden MRE and the twin drilling and density data acquired for this update has not improved the understanding of the model.
Indicated Mineral Resource have been assigned to Ridge C and E based on the following criteria:
· Ridge C "Main" high-grade zone only
· Ridge E "Main" and "Upper" high-grade zones only
· High-grade domains only, being considered the material of potential economic viability
· An average distance between samples used of less than 75 m
· The number of samples used to estimate grade being a minimum of 8, and
· A slope of regression greater than 0.6.
· All material outside of the high-grade zones has not been classified as it is believed the low grade prevents the material to be of economic interest.
· Figure 6 and Figure 7 show the classified Ridge C and E and Sirius Extension classified models.
Figure 6 - Ridge C and E classification. (Source: BGS)
Figure 7 - Sirius Extension classification. (Source: BGS)
To determine the final Mineral Resource Statement, the model has been subjected to an optimisation exercise to determine the proportion of the material defined that has a reasonable prospect of eventual economic extraction ("RPEEE") via open pit mining methods, as defined in the JORC Code, 2012 edition. The optimisation was carried out by independent consultants Mining Plus. In addition, Mining Plus undertook an audit of the MRE carried out by BGS with no material issues identified.
The optimisation was based on the Indicated and Inferred mineralised high-grade BIF material only.
The interpretation of the word 'eventual' in this context relates to a bulk commodity where it is reasonable to envisage 'eventual economic extraction' as covering time periods of more than 50 years.
This represents the material considered by BGS to have reasonable prospects for eventual economic extraction potential.
Figure 8 and Figure 9 shows the final classified Mineral Resources within the optimised pit shells.
Figure 8 - Ridge C and E Indicated and Inferred Mineral Resource within the
optimised pit shell. 100 m grid shown. (Source: BGS)
Figure 9 - Sirius Extension Inferred Mineral Resource within the optimised pit
shell. (Source: BGS)
All material being reported lies within the tenement boundary although it is noted that at the Sirius Extension prospect, the optimisation was allowed to extend beyond the tenement boundary.
Figure 10 shows the Inferred resources coloured by tenement status. The material coloured red is the material that lies outside of the tenement boundary, that has been excluded from the MRS. This equates to 0.2 Mt.
Figure 10 - Sirius Extension Inferred Mineral Resource within the optimised
pit shell. Coloured by tenement status. (Source: BGS)
Grade Tonnage Curves
Grade - tonnage curve for the Ridge C and E Indicated material is shown in Figure 12. The curve shows the relationship between the modelled tonnage and grade at increasing Fe cut-offs, with a steep drop in tonnes above a cut-off of approximately 58% Fe.
Figure 12 - Ridge C and E Grade Tonnage Curve for the Indicated Material only.
(Source: BGS)
Grade - tonnage curve for the Ridge C and E Inferred material is shown in 13. The curve shows the relationship between the modelled tonnage and grade at increasing Fe cut-offs, with a steep drop in tonnes above a cut-off of approximately 58% Fe.
Figure 13 - Ridge C and E Grade Tonnage Curve for the Inferred Material only.
(Source: BGS)
Grade - tonnage curve for the Sirius Extension Inferred material is shown in Figure 14. The curve shows the relationship between the modelled tonnage and grade at increasing Fe cut-offs, with a steep drop in tonnes above a cut-off of approximately 57% Fe.
Figure 14 - Sirius Extension Grade Tonnage Curve for the Inferred Material
only. (Source: BGS)
JORC CODE TABLE 1
Section 1 Sampling Techniques and Data
(Criteria listed in the preceding section also apply to this section.)
Table 6 - JORC Code, Sampling Techniques and Data
Criteria JORC Code explanation
Sampling techniques · Nature and quality of sampling (e.g. cut channels, random chips, or · Industry standard sampling techniques have been applied at the
specific specialized industry standard measurement tools appropriate to the Project.
minerals under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc.). These examples should not be taken as limiting the broad · Reverse circulation drilling was used to obtain 1 m samples.
meaning of sampling.
· A tri-cone splitter at the cyclone was used to provide two samples
· Include reference to measures taken to ensure sample representivity splits and a bulk sample per metre.
and the appropriate calibration of any measurement tools or systems used.
· When water was produced by the hole, samples were continued to be
· Aspects of the determination of mineralisation that are Material to taken with care to get as representative a sample per meter as possible. Water
the Public Report. was expelled after rod change to reduce the amount of water in the ensuing
samples. All efforts were made to ensure representative samples in wet
· In cases where 'industry standard' work has been done this would be conditions were taken. Notes were made on logging sheets for large volumes of
relatively simple (e.g.). In other cases, more explanation may be required, water to ensure interpretation was consistent in the holes. 1 m samples were
such as where there is coarse gold that has inherent sampling problems. taken in the majority of every hole unless obvious non iron ore bearing
Unusual commodities or mineralisation types (e.g. submarine nodules) may lithology was identified, such as associated dolerite mainly in the ridge area
warrant disclosure of detailed information. in the west of the project.
Drilling techniques · Drill type (e.g. core, reverse circulation, open-hole hammer, rotary · 1 x Schramm track mounted T450 Reverse Circulation (RC) drill
air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple machine, rated to 350 m RC with 6.0 m pullback, 4" rod string, on--board
or standard tube, depth of diamond tails, face-sampling bit or other type, 350psi / 900 cfm compressor was used for all drilling done by IOCA.
whether core is oriented and if so, by what method, etc.).
· A Hurricane 636 Booster for extra air was also available and used
when required for deeper holes to ensure consistent sample quality.
· The phase 4 RC drill programme was completed by Egan drilling using
ED250 (EDR01) drill rig.
· Two Twin diamond drill holes were completed by Top Drive using an
UDR1200HC rig.
· IOCA do not have the specifics of the RC drill rig used by Volta in
2013 available but can confirm it was RC method.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Where sample recovery was deemed to be less than the average a note
results assessed. was made on the logging sheets.
· Measures taken to maximise sample recovery and ensure the · Where very little sample was recovered in a meter interval this was
representative nature of the samples. noted on log sheet.
· Whether a relationship exists between sample recovery and grade and · Where water was deemed a factor to sample recovery this was noted on
whether sample bias may have occurred due to preferential loss/gain of the log sheet.
fine/coarse material.
· Every meter was sampled directly from a tri-cone splitter into a
pre-labelled calico sample bag mounted on the rig cyclone. Any additional
splitting was carried out at the analysis laboratory.
· 96% of samples were taken dry, with any wet samples being recorded on
the rig log sheet.
· The cyclone was air flushed to clean after each 6-metre run to
minimise contamination.
· IOCA completed two diamond drill holes in an attempt to verify the
accuracy of the RC drilling. One drill hole each was completed at Ridge C and
at Sirius Extension. BGS did not observe the diamond drilling but has been
informed by IOCA that strict supervision was not in place at the time and as
such, low core recovery rates were left unchallenged during the drilling.
· The diamond drilling has not been used in the MRE update with the
exception of the verification study described below.
· At Ridge C, RC drill hole AM21RC001_006 was twinned with AMHD004 and
drill hole AM21RC002_008 was twinned with AMHD003 at Sirius Extension.
· The average core recovery recorded at Ridge C (AMHD004) is 58% within
the high-grade zone and 65% below the high-grade zone. All drilling was above
the water table. At Sirius Extension (AMHD003), the average core recovery was
74%, varying from 76% above the water table and 72%, below the water table.
· Due to the poor core recovery within the two diamond drill holes, it
is hard to categorically determine if any bias has been introduced through the
application of RC drilling, such as loss of high-grade fines or clay fines.
However, some observations can be made.
Logging · Whether core and chip samples have been geologically and · Main lithology for each meter logged along with notes on visible
geotechnically logged to a level of detail to support appropriate Mineral hematite or magnetite or other.
Resource estimation, mining studies and metallurgical studies.
· Chip trays of RC samples were taken and photographed.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc.) photography. · Diamond drill core photographed.
· The total length and percentage of the relevant intersections logged. · Logging mainly qualitative in nature.
· Early logging in some cases logged clay rather than BIF where BIF
appears dominant lithology.
· RQD logging completed on the two diamond drill holes This data has
not been verified.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · Tri-cone splitter attached to cyclone produced 2 samples for
taken. laboratory submission plus larger remaining fraction per meter drilled.
· If non-core, whether riffled, tube sampled, rotary split, etc. and · If sample interval was not deemed necessary for laboratory
whether sampled wet or dry. submission, the sample was left on site for later collection.
· For all sample types, the nature, quality and appropriateness of the · 1 in 20 average field duplicates taken.
sample preparation technique.
· Certified Reference Samples also inserted on a 1 in 20 sample
· Quality control procedures adopted for all sub-sampling stages to average.
maximise representivity of samples.
· Laboratory sample preparation was to dry and pulverize.
· Measures taken to ensure that the sampling is representative of the
in-situ material collected, including for instance results for field · Diamond drill holes cut and assayed at ALS laboratories. The diamond
duplicate/second-half sampling. data has not been used in the model update with exception of verifying the
quality of the RC data.
· 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 · Intertek Genalysis, Perth, used for sample preparation and analysis,
laboratory procedures used and whether the technique is considered partial or Basic Iron Ore Package/XRF single point LOI analysis method.
total.
· Laboratory also used Certified Reference Materials and/or in-house
· For geophysical tools, spectrometers, handheld XRF instruments, etc., controls, blanks and replicates analysed with each batch of samples with these
the parameters used in determining the analysis including instrument make and quality control results reported along with the sample values in the final
model, reading times, calibrations factors applied and their derivation, etc. report.
· Nature of quality control procedures adopted (e.g. standards, blanks, · Industry Standard CRM's from Geostats PTY Ltd, Perth were inserted 1
duplicates, external laboratory checks) and whether acceptable levels of in 20 samples on average.
accuracy (i.e. lack of bias) and precision have been established.
· Duplicate samples from the drilling inserted on average 1 in 20
samples
· Acceptable levels of accuracy obtained from all QA/QC results.
Verification of sampling and assaying · The verification of significant intersections by either independent · 4 historic drill holes drilled by Volta Mining in 2013 included in
or alternative company personnel. this work were tested by a twin RC drill hole traversing across the line of
Volta drilling.
· The use of twinned holes.
· All data managed into central excel database.
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols. · All data verified for errors.
· Discuss any adjustment to assay data. · No adjustment to laboratory assay data done.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · Differential GPS used to locate and survey drill hole collars.
and down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation. · High resolution topographic survey acquired for area at accuracy of
20 cm with strong correlation existing between the DGPS collars and the
· Specification of the grid system used. topographic surface.
· Quality and adequacy of topographic control.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Drill Spacing is variable.
· Whether the data spacing, and distribution are sufficient to o Sirius Extension = approximately 50 to 100 m section spacing with on fence
establish the degree of geological and grade continuity appropriate for the spacing from 30 to 50 m.
Mineral Resource and Ore Reserve estimation procedure(s) and classifications
applied. o Ridge C = variable but dominantly 50 m x 50 m.
· Whether sample compositing has been applied. o Ridge E = variable but dominantly 50 m x 50 m.
· Single meter sample intervals in all drilling.
· Single meter analysis of all samples.
· No sample composites generated for sampling and assaying purposes.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · No bias indicated through the drill orientation.
possible structures and the extent to which this is known, considering the
deposit type. · Where possible drill holes drilled as perpendicular to assumed
geological units to ensure minimum sampling bias.
· If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material.
Sample security · The measures taken to ensure sample security. · Samples secured in sealed bags from sample location to laboratory
with secure storage facilities in Newman and in Perth.
Audits or reviews · The results of any audits or reviews of sampling techniques and data. · Drilling reported here based on four RC drilling programs, the
initial program managed by 3rd party consultants with later phases being
managed by IOCA personnel.
· Company recruited Exploration Manager managed the second to fourth
drilling phases and tied in any outstanding survey and geological issues from
the phase one program managed by 3rd party contractors.
· Same drilling company and drillers used for phase one to three (Three
Rivers Drilling) with phase four operated by Egan drilling.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Table 7 - JORC Code, Reporting of Exploration Results
Criteria JORC Code explanation
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · The Hancock Project lies within the E47/3953 tenement and is
agreements or material issues with third parties such as joint ventures, approximately 20 km north of Newman in the East Pilbara region of Western
partnerships, overriding royalties, native title interests, historical sites, Australia.
wilderness or national park and environmental settings.
· A heritage survey has been completed [[Coles & Chisholm, 2014] in
· The security of the tenure held at the time of reporting along with the northeast corner of the exploration tenure (approximately 19ha), in and
any known impediments to obtaining a licence to operate in the area. around the area proposed for mining for the Sirius prospect. No heritage sites
were identified.
· Significant surveys have been completed adjacent to the Mineral
Prospect, particularly on behalf of BHP and Hamersley Iron, with a range of
registered sites identified. The closest site is Kalgan Creek.
· It is anticipated that the level of heritage sites will be moderate,
however, can be managed through either an avoidance or approval under Section
18 of the Aboriginal Heritage Act 1972. [or alternative approval instrument
once the Aboriginal Cultural Heritage Act 2021 has been fully implemented].
This is not considered a constraint to mining.
· The area is within the registered Native Title claim of the
Nyiyaparli People (WC2005/006), administered by the Karlku Nyiyaparli
Aboriginal Corporation (KNAC). The group has executed a range of Indigenous
Land Use Agreements through the area with a range of mining companies in the
area, including BHP Billiton (WI2012/005), Hamersley Iron P/L (Rio Tinto)
(WI2012/007) and FMG (WI2016/003). As part of the mining lease and
miscellaneous licence applications, a Native Title Agreement will be expected
to be entered into with KNAC and considering the corporation's experience with
mining activities in the area, this is not considered a constraint to mining.
· Nine species of national conservation significance may occur in the
region, of which five have the potential to occur in the tenement area (being
the Northern Quoll, Ghost Bat, Greater Bilby, Pilbara Leaf-nosed Bat and Olive
Python). Vegetation and landscape would dictate that the Bats are unlikely to
either forage or nest in areas proposed for mining. Mining can occur in a
manner to minimise the impact on any other species (if they occur); however,
the location and size of the project would consider the significance and risk
is low.
· The area has limited diversity from a floristic standpoint, with
limited species known to occur in the area, of which none are considered
Threatened under the Biodiversity Conservation Act 2016 or Matters of National
Environmental Significance (MNES) under the Environment Protection and
Biodiversity Conservation Act 1999. Flora and Vegetation is not considered a
constraint in this project.
· No conservation reserves or environmentally significant areas are
located within the vicinity of the proposal area.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · The Mineral Resource Estimate includes 4 drill holes completed by
Volta Mining in 2013. This accounts for 32% of the drill data available at the
Sirius Extension prospect with all historic holes being located on a single
fence line.
Geology · Deposit type, geological setting and style of mineralisation. · The tenement area consists of a series of low east/west running rocky
ridge lines separated by shallow valleys. The area has been structurally
deformed with the presence of numerous fold hinges, some isoclinal, but all
trending east/west with a shallow (<34°) plunge.
· Most of the ridge lines consist of Banded Iron which is part of the
Weeli Wolli Formation. The Weeli Wolli Formation is described as a thick
succession of jaspilite, shale, and dolerite overlying the Brockman Iron
Formation. The iron formations stand out as ridges on which there is some
exposure, but the intervening shale and dolerite are rarely exposed.
Drill hole Information · A summary of all information material to the understanding of the · IOCA undertook Reverse Circulation (RC) drilling at the project
exploration results including a tabulation of the following information for between January 2021 and June 2022. Two diamond drill holes were completed in
all Material drill holes: January to February 2022.
o easting and northing of the drill hole collar · The drill hole information is tabulated in Appendix 1 (addendum to
main report).
o elevation or RL (Reduced Level - elevation above sea level in metres) of the
drill hole collar · The table below summarises the number of drill holes, and total
metres of drilling completed at each prospect along with the number of Fe
o dip and azimuth of the hole assays collected from the 1m samples. An equal number of assays was generated
for all other elements as part of the XRF suite.
o down hole length and interception depth
· All drill holes were drilled at an orientation to target as
o hole length. perpendicular an intercept to the BIF as possible.
· 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 data aggregation methods have been used in the reporting of the
maximum and/or minimum grade truncations (e.g. cutting of high-grades) and exploration results.
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 · All drill holes were drilled at an orientation to target as
Exploration Results. perpendicular an intercept to the BIF as possible.
· If the geometry of the mineralisation with respect to the drill hole
angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (e.g. 'down hole length, true width
not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Appropriate images have been put in the main body of the report.
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
practicable, representative reporting of both low and high-grades and/or
widths should be practised to avoid misleading reporting of Exploration
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · IOCA has completed tenement scale mapping and grab sampling.
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of · In total, 161 samples have been collected and analysed. Eight ridges
treatment; metallurgical test results; bulk density, groundwater, geotechnical (A to H) have been identified and sampled. BGS visited all ridges and general
and rock characteristics; potential deleterious or contaminating substances. sample locations during the site visit.
· The figure below shows the location of the grab samples and mapped
ridges.
Further work · The nature and scale of planned further work (e.g. tests for lateral · IOCA plan to continue mapping and grab sampling with test pits
extensions or depth extensions or large-scale step-out drilling). recommended in areas of identified high-grade from grab samples.
· Diagrams clearly highlighting the areas of possible extensions, · Further confirmatory diamond drilling is required to assess for any
including the main geological interpretations and future drilling areas, bias introduced through RC drilling.
provided this information is not commercially sensitive.
· A suggested infill programme has been provided for the Sirius
Extension prospect. This consists of 11 drill holes for 1000 m of drilling.
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Table 9 - JORC Code, Estimation and Reporting of Mineral Resources
Criteria JORC Code explanation
Database integrity · Measures taken to ensure that data has not been corrupted by, for · All data has been validated to check for gross errors with original
example, transcription or keying errors, between its initial collection and assay certificates being supplied by IOCA.
its use for Mineral Resource estimation purposes.
· Minor transcript errors identified were reported to IOCA with
· Data validation procedures used. corrective measures taking place.
· Regular database updates were provided throughout the drilling and
assaying programme so that continual monitoring could be carried out.
Site visits · Comment on any site visits undertaken by the Competent Person and the · Mr Howard Baker of BGS visited the project in May 2022. All ridges
outcome of those visits. were visited and existing drill pads inspected.
· If no site visits have been undertaken indicate why this is the case.
Geological interpretation · Confidence in (or conversely, the uncertainty of) the geological · Based on the work undertaken and the statistical validation steps
interpretation of the mineral deposit. carried out, BGS is confident that the geological model created honours the
understanding of the local scale geology and weathering / alteration
· Nature of the data used and of any assumptions made. controlled grade distribution as accurately as possible given the current data
available.
· The effect, if any, of alternative interpretations on Mineral
Resource estimation. · At Ridge C and E, continuous units of high-grade mineralisation have
been modelled, greatly enhanced by the acquisition of a high resolution
· The use of geology in guiding and controlling Mineral Resource topographic surface and Worldview 2 aerial imagery. Ridge C and E contain
estimation. three modelled zones of high-grade mineralisation each with a "main" zone
lying as the middle high-grade stratigraphic horizon within each ridge. The
· The factors affecting continuity both of grade and geology. upper and lower high-grade zones at each ridge are less continuous and
supported by less data.
· At Sirius Extension, a single high-grade BIF domain has been modelled
with an overlying low grade cap. The high-grade BIF unit has been split into
high and low SiO(2) domains based on a statistical review. However, the grade
distribution allowing accurate modelling to take place is hampered below the
water table where limited diamond twin drilling highlights possible grade
smearing within the dominant RC data.
· At Ridge C and Ridge E, the dip of the BIF unit was inferred from the
ridge topography and the onsite observations with a shallow dip of 15 to 20 °
used.
· At Sirius Extension, a steeply dipping BIF unit was created based on
the HW / FW contacts with the assumption that the unit forms part of syncline
extended from the neighbouring licence and where a resource has previously
been reported.
· An overlying weathered cap has been created at Sirius Extension. This
is based on logging and geochemical data where an increase in LOI, AL(2)O(3)
is observed along with a decrease in Fe.
Dimensions · The extent and variability of the Mineral Resource expressed as · Sirius Extension = ~450 m strike by 60 m width by 150 m down dip
length (along strike or otherwise), plan width, and depth below surface to the
upper and lower limits of the Mineral Resource. · Ridge C = ~1,200 m strike by up to 12 m width / thickness by 150 m
down dip
· Ridge E = ~1,500 m strike by up to 10 m width / thickness by 80 m
down dip
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied · At Sirius Extension and Ridge C and E, geostatistical studies were
and key assumptions, including treatment of extreme grade values, domaining, undertaken to determine appropriate estimation parameters.
interpolation parameters and maximum distance of extrapolation from data
points. If a computer assisted estimation method was chosen include a · Due to the limited data at Ridge C and E, all high-grade material was
description of computer software and parameters used. combined into a single high-grade domain at each ridge for geostatistical
studies. The oxidised and fresh BIF domains across Ridge C and E were treated
· The availability of check estimates, previous estimates and/or mine as single domains for the geostatistical studies. For Sirius Extension,
production records and whether the Mineral Resource estimate takes appropriate geostatistical studies were completed for the individual high and low SiO(2)
account of such data. domains.
· The assumptions made regarding recovery of by-products. · A primary search ellipse of 100 m by 50 m by 10 m was used with a
minimum of 4 samples and a maximum of 12 samples at Sirius Extension and a
· Estimation of deleterious elements or other non-grade variables of minimum of 4 samples and a maximum of 16 samples at Ridge C and E. Samples
economic significance (e.g. Sulphur for acid mine drainage characterization). were limited to 4 per drill hole at Ridge C and E and 3 per drill hole Sirius
Extension.
· In the case of block model interpolation, the block size in relation
to the average sample spacing and the search employed. · At Sirius Extension, estimation was completed within the cap domain
and the high / low SiO(2) domains with each domain treated as a separate
· Any assumptions behind modelling of selective mining units. estimate with drill hole data coded accordingly.
· Any assumptions about correlation between variables. · At Ridge C and E, estimation was completed within the individual
high-grade BIF, oxidised BIF and Fresh BIF domains.
· Description of how the geological interpretation was used to control
the resource estimates. · Modelling and grade estimation was undertaken in Leapfrog Edge.
· Discussion of basis for using or not using grade cutting or capping. · A composite length of 2 m was used at Sirius Extension and the raw
1 m sample length was used at Ridge C and E with no compositing.
· The process of validation, the checking process used, the comparison
of model data to drill hole data, and use of reconciliation data if available. · Fe, SiO(2), Al(2)O(3), P, MnO and LOI were estimated into the model
using Ordinary Kriging.
· Fe was also estimated using an Inverse Distance Weighting algorithm.
· The average distance of samples to estimate the block grade was
between 40 and 70m.
· At Sirius Extension, a block size of 20 m X by 10 m Y by 10 m Z
was used with sub-cells of 2.5 m in the X direction and 1.25 m in the Y and
Z direction. This is less than the sample spacing in the X direction.
· At Ridge C and E, a block size of 20 m X by 5 m Y by 2 m Z was
used with sub-cells of 5 m in the X direction and 1.25 m in the Y and 1 m
in the Z direction. This is less than the sample spacing in the X direction.
· No assumptions have currently been made regarding the SMU.
· Grade correlation has been used in the modelling and domaining
strategies with statistical checks primarily on the F and SiO2 being used to
guide the interpretation. No regression-based assumptions have been applied to
the estimated model.
· The geological interpretation was used to guide the orientation of
the search ellipse used in the estimate.
· No top capping has been applied due to the homogenous nature of the
mineralisation.
· Visual and statistical validation checks have been completed
comparing the input sample grades and the output block model grades. No bias
has been observed. Checks were also completed on the number of blocks
estimated in each estimation run and the average distance of the samples used
to estimate the block grade.
· No reconciliation data is available.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Tonnage is assumed to be on a dry basis using moisture corrected
moisture, and the method of determination of the moisture content. downhole gamma density data.
· The moisture content is based on the results from a bulk sample which
are not considered appropriate at this stage.
· No moisture analysis has been completed to date but is recommended as
an inclusion in all future drill programmes.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · No cut-off has been used in the reporting of the Mineral Resource
applied. with an open pit optimisation being applied to determine the material with
reasonable prospects for eventual economic extraction potential.
· The high-grade material, being the focus of the Mineral Resource
Statement was modelled at an approximate 58% Fe cut-off.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · An open pit operation has been assumed with an optimisation study
dimensions and internal (or, if applicable, external) mining dilution. It is being completed to enable the reporting of the Mineral Resource Statement. The
always necessary as part of the process of determining reasonable prospects optimisation was undertaken by Mining Plus.
for eventual economic extraction to consider potential mining methods, but the
assumptions made regarding mining methods and parameters when estimating · At Sirius Extension, the optimisation was allowed to extend beyond
Mineral Resources may not always be rigorous. Where this is the case, this the tenement limits. All classified material lying outside of the tenement
should be reported with an explanation of the basis of the mining assumptions limits was excluded from the final resource statement.
made.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · IOCA collected a bulk sample from Ridge C for testwork at ALS
amenability. It is always necessary as part of the process of determining Metallurgy Services ("ALS") in Perth. The metallurgical testwork program was
reasonable prospects for eventual economic extraction to consider potential conducted on a single composite sample formed from five separate samples. All
metallurgical methods, but the assumptions regarding metallurgical treatment material was collected from a single drill pad.
processes and parameters made when reporting Mineral Resources may not always
be rigorous. Where this is the case, this should be reported with an · The location of the bulk sample was from the drill pad of RC drill
explanation of the basis of the metallurgical assumptions made. hole AM21RC001_006 and diamond twin AMHD004.
· The results of the testwork are summarised in the ALS report,
"Metallurgical Testwork conducted upon Iron Ore Samples from the Hamersley
Iron Ore Projects for Alien Metals Limited". Report No. A23194, May 2022. The
results of the testwork were also summarised in a news release dated 16 June
2022.
· The bulk sample showed the material to have a 9.7% lump and 90.3%
fines content.
· BGS notes that a single composite sample has been collected for the
Project, with all material coming from the same drill pad on Ridge C and
averaging 62.7% Fe. The resource grade currently averages 60.3% Fe and as
such, the bulk sample collected is not considered representative of the
resource grade. Further bulk sample testwork is therefore recommended to
ensure representative grade is tested and to assess the lump / fines split
across both Ridge C and E and the Sirius Extension prospect.
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue · BGS and IOCA are not aware of any factors (environmental, permitting,
disposal options. It is always necessary as part of the process of determining legal, title, taxation, socio-economic, marketing, political, or other
reasonable prospects for eventual economic extraction to consider the relevant factors) that have materially affected the Mineral Resource Estimate.
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 density · Whether assumed or determined. If assumed, the basis for the · Downhole gamma data was used to assign density to the Ridge and
assumptions. If determined, the method used, whether wet or dry, the frequency Sirius domains. For this, a moisture correction factor is required to adjust
of the measurements, the nature, size and representativeness of the samples. the raw caliper adjusted downhole gamma data. This can be based on moisture
content from twin diamond drill holes where a specific moisture assay has been
· The bulk density for bulk material must have been measured by methods carried out. At present, moisture assays are not available for the project and
that adequately account for void spaces (vugs, porosity, etc.), moisture and as such, a correction factor has been selected based on the bulk sample
differences between rock and alteration zones within the deposit. collected at Ridge C. ALS determined a 6% moisture content for the bulk
sample. This is however not deemed accurate due to the time taken between
· Discuss assumptions for bulk density estimates used in the evaluation collection and analysis and the various handling steps required. The bulk
process of the different materials. sample was also open to the elements for a period of time. However, in the
absence of other data, the 6% correction has been used. This can only be
applied to the high-grade zones and BGS notes that the application of the
moisture content from a sample at Ridge C, may not be representative of the
Ridge E and Sirius Extension high-grade material.
· The average corrected density value for Ridge C and E high-grade BIF
is 2.74 g/cm(3) and at Sirius Extension, 2.5 g/cm(3). No correction has been
made for the Cap or fresh and oxidised domains due to the lack of moisture
data.
· Fresh BIF has been assigned a density of 3.12 g/cm(3) and oxidised
BIF a density of 2.58 g/cm(3). The Sirius Extension cap has been assigned a
density of 2.94 g/cm(3).
· At Sirius Extension, it is worth noting that the data stops at the
location of the interpreted water table and at the approximate contact of the
high / low SiO(2) domains. It is possible that density will increase above the
current average of 2.5 g/cm(3) within the high SiO(2) domain. In the absence
of other data however, the conservative approach has been taken using the raw
caliper adjusted downhole gamma data. BGS does not consider it appropriate to
use the average Ridge value density at present until further ore
characterisation studies have been completed.
· BGS recommends that future diamond drilling campaigns analyse for
moisture content.
Classification · The basis for the classification of the Mineral Resources into · The Project has been classified as containing Indicated and Inferred
varying confidence categories. Mineral Resources. No Measured Mineral Resources have been assigned due to
limitations in the data such as limited density data and absent (accurate)
· Whether appropriate account has been taken of all relevant factors validation drilling data to confirm the quality of the RC data used in the
(i.e. relative confidence in tonnage/grade estimations, reliability of input MRE. However, infill drilling at Ridge C and E is now on a density in places
data, confidence in continuity of geology and metal values, quality, quantity that allows a robust geological model to be created with excellent continuity
and distribution of the data). between sections. In addition, a bulk sample collected at Ridge C confirms the
location of high-grade material, although not representative of the overall
· Whether the result appropriately reflects the Competent Person's view resource grade.
of the deposit.
· BGS has also completed a site visit to the Project and observed the
mineralisation in the field. The addition of the topographic survey and aerial
photography has also allowed an extra level of detail to be applied in the
modelling. As such, a portion of the Ridge C and E prospects have been
classified as an Indicated Mineral Resource with Sirius Extension remaining in
the Inferred category. No additional drilling has been completed at Sirius
Extension since the completion of the maiden MRE and the twin drilling and
density data acquired for this update have not improved the understanding of
the model.
· Indicated Mineral Resource have been assigned to Ridge C and E based
on the following criteria:
o Ridge C "Main" high-grade zone only
o Ridge E "Main" and "Upper" high-grade zones only
o High-grade domains only, being considered the material of potential economic
viability
o An average distance between samples used of less than 75 m
o The number of samples used to estimate grade being a minimum of 8, and
o A slope of regression greater than 0.6.
· All material outside of the high-grade zones has not been classified
as it is believed the low grade prevents the material to be of economic
interest.
· This represents the material considered by BGS to have reasonable
prospects for eventual economic extraction potential.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · Prior to undertaking the optimisation study, Mining Plus audited the
Mineral Resource Estimate completed by BGS.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · Based on the work undertaken and the statistical validation steps
level in the Mineral Resource estimate using an approach or procedure deemed carried out, BGS is confident that the geological model created honours the
appropriate by the Competent Person. For example, the application of understanding of the local scale geology and weathering / alteration
statistical or geostatistical procedures to quantify the relative accuracy of controlled grade distribution as accurately as possible given the current data
the resource within stated confidence limits, or, if such an approach is not available.
deemed appropriate, a qualitative discussion of the factors that could affect
the relative accuracy and confidence of the estimate. · At Ridge C and E, continuous units of high-grade mineralisation have
been modelled, greatly enhanced by the acquisition of a high resolution
· The statement should specify whether it relates to global or local topographic surface and Worldview 2 aerial imagery. Ridge C and E contain
estimates, and, if local, state the relevant tonnages, which should be three modelled zones of high-grade mineralisation each with a "main" zone
relevant to technical and economic evaluation. Documentation should include lying as the middle high-grade stratigraphic horizon within each ridge. The
assumptions made and the procedures used. upper and lower high-grade zones at each ridge are less continuous and
supported by less data.
· These statements of relative accuracy and confidence of the estimate
should be compared with production data, where available. · At Sirius Extension, a single high-grade BIF domain has been modelled
with an overlying low-grade cap. The high-grade BIF unit has been split into
high and low SiO(2) domains based on a statistical review. However, the grade
distribution allowing accurate modelling to take place is hampered below the
water table where limited diamond twin drilling highlights possible grade
smearing within the dominant RC data.
· The slope of regression has been used as a guide to assess the
quality of the grade estimate with a slope of regression value approaching a
value of 1 being deemed a high-quality estimate. The mean slope of regression
values for the project are low to moderate, being 0.77 and 0.83 within the
Ridge C and E Main domains.
· The slope of regression results for the Sirius Extensions High and
Low SiO(2) domains have values of 0.36 and 0.43. This is however a factor of
the depth extent of the model and poor data support with depth. In areas
supported by drill data, a value of 0.6 is shown.
· Overall, the dimensions and volumes of the BIF packages are robust
although changes to the overall geometry can be expected with further
drilling.
· Given the quantity of data at Ridge C and Ridge E, the estimate can
be considered reasonable on a local scale, especially in areas of Indicated
resource classification. global estimates.
· At the Sirius Extension prospect further confirmatory drilling is
required to assess the grade variability and the density. As such, given the
Inferred resource category, Sirius Extension is considered accurate to a
global scale only.
Ore
Reserve Estimation Summary and Modifying Factors
Mining
Burnt Shirt contemplates that IOCA's Hancock project will be operated as a conventional Australian Pilbara open pit truck-and-shovel iron ore mining operation. Production areas are to be prepared by first clearing and stockpiling overburden for later rehabilitation use.
Figure 15 - preliminary site layout
Following site preparation, the pit outline is to be drilled and blasted to form a bench surface. For the purposes of this study, Burnt Shirt has assumed the use of a 120t-class or similar-sized excavator.
Drill and blast is to progress on 8m benches, with mining undertaken at 2m flitch resolution. A 2m flitch height was chosen to reflect the relatively thin, flat-lying nature of the Ridge C and Ridge E mineralisation.
Burnt Shirt has assumed that haulage is to be undertaken by articulated off-road haul trucks of 60t class.
Ore is to be hauled from the pits to a mobile crushing and screening plant.
It may be possible to partially backfill mine voids with waste and process rejects, thereby reducing rehabilitation obligations. Burnt Shirt considers this to be an operational decision, to be made as mining progresses and as working areas allow.
From the crushing and screening plant, ore is to be hauled to a stockpile near the Great Northern Highway for loading onto quadruple road trains for haulage to the port of Port Hedland for direct-ship sale.
Grade control is to be undertaken by blasthole sampling, with ore and waste blocks defined by the production geologist or engineer. The flat-lying nature of the mineralisation on Ridge C and Ridge E allows removal of waste bands with a bulldozer, as is practised at nearby iron ore mines in similar geology.
Operators are to be supplied by the mining contractor and mine supervision by IOCA employees. Personnel will operate on a predominantly fly-in-fly-out roster, accommodated in commercial quarters in the nearby town of Newman.
Mine design
Methodology
A mining model was prepared from the Mineral Resource
1 (#_ftn1)
model supplied by IOCA by the design subcontractor.
The mining model was imported into open pit optimisation software utilising a Lerchs-Grossman algorithm to produce incremental pit shells based on a variable product price.
The selected pit shells were used to design pits using mine design software.
Mining model
The following steps were undertaken on the Mineral Resource model to derive the mining model:
· The model was regularised to selective mining unit (SMU) blocks of 5m x 5m x 2m at Ridge C and Ridge E and 5m x 5m x 2.5m to reflect the steeper geology at Sirius (Constrained).
Burnt Shirt cross-checked the mining and Mineral Resource models at a nominal cut-off grade of 57% Fe and generated a comparison of the Mineral Resource and mining models. Iron ore SMU's are typically relatively large (>10m x 10m x 5m) in flat-lying Pilbara deposits but the relatively small volume and selective mining at the Hancock Project require smaller SMU's.
Pit optimisation
A pit optimisation was conducted by Snowden Mining Industry Consultants Ltd, of Perth) (Snowden) using appropriate mining software that utilises a Lerchs-Grossman algorithm. Parameters were advised variously by IOCA, Burnt Shirt or calculated by the algorithm.
Parameters and modifying factors
Resource classification
Only Mineral Resources classified as being Indicated were used in the base case pit optimisation. A scenario was run, testing the inclusion of Inferred Mineral Resources and unclassified material to inform the mining inventory.
Boundaries
The Exploration Licence boundary was superimposed on the Sirius (Constrained) optimisation. The behaviour of the optimisation indicates that it would extend onto the Brockman tenement, were this to be made available.
Geotechnical constraints
Slope angles used in the pit optimisation were informed by previous experience in the area and included in the pit design parameters. The overall slope angle applied to lower elevations was reduced to account for ramps and blocks were combined to reduce the slope estimation error.
Dilution and mining recovery
Based on the size and selectivity of the proposed mining equipment, Snowden modified the Mineral Resource model by re-blocking to a SMU of 5m x 5m x 1m. This was undertaken to model selective mining of the ore by bulldozing waste from the top of pre blocks.
The Mineral Resource has been modelled as a bulk mining proposition and this re-blocking to the Burnt Shirt SMU results in negligible dilution, indicatively <5%. No additional dilution or mining recovery factors were applied.
Processing rate
A processing rate of 1.25 million dry tonnes per annum (Mdt/a) was used in the optimisation, as advised by IOCA.
Processing recovery
Processing is to be through a mobile crushing and screening plant. A 100% recovery has been assumed for the purposes of the Ore Reserve.
Reference mining costs
The mining cost reference was applied at the crest of each pit (Ridge C, Ridge E and Sirius (Tenement Boundary Constrained). The optimisation software applied an incremental mining cost for depth.
Mining inventory and infrastructure
Burnt Shirt generated a mining inventory for scheduling, by pit. This mining inventory is inclusive of the Ore Reserve and is not to be conflated with an Ore Reserve. A mining inventory has no definition under the JORC Code and its absolute economic viability has not been demonstrated. The mining inventory comprises that proportion of the Inferred Mineral Resource that reports to a pit optimisation but is excluded from inclusion in an Ore Reserve by its classification. Its financial viability has not been demonstrated and it is premised on both Indicated and Inferred Resources and unclassified mineralisation.
Schedule
Methodology
The LOM schedule was completed by Snowden using its proprietary Evaluator scheduling software. This is a Mixed Integer Linear programming-based tool with the objective of maximisation net present value, within a given tolerance, for the defined constraints of physical quantity and grade.
The schedule went through several iterations, the primary constraint being to maintain production rate at a grade above 60% Fe while maintaining a saleable Si% + Al% product (Si% + Al% < 11%).
The schedule was directed to mine the highest margin Indicated Resource material first, followed by Inferred Resource and unclassified material to fulfil production requirements of 1.25 Mtpa. This has resulted in mining commencing at Ridge C, then concurrently with Ridge E before progressing to Sirius (Constrained).
Burnt Shirt considers that the addition of Indicated Resources at Sirius (Constrained) would have a significant upwards effect on the Reserve profile in both grade and volume.
The selected schedule contemplates a minimum 60.75% Fe constraint.
Parameters and constraints
Material types and schedule inventory
The mining model was coded with material types to allow selective ore and waste scheduling, utilising stockpiles to maintain product parameters at times when the mine is orebody constrained
Estimation and Reporting of Ore Reserves
(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)
Table 10 - JORC Code, Estimation and Reporting of Ore Reserves
Criteria JORC Code explanation Commentary
Mineral Resource estimate for conversion to Ore Reserves Description of the Mineral Resource estimate used as a basis for the The Mineral Resource supporting the Ore Reserve estimate is the September 2022
conversion to an Ore Reserve. Independent Mineral Resource Estimate for the Hancock Iron Project, Pilbara
Region, WA prepared by Howard Baker of Baker Geological Service of Cardiff.
Clear statement as to whether the Mineral Resources are reported additional
to, or inclusive of, the Ore Reserves. Mineral Resources are inclusive of the ore Reserve
Site visits Comment on any site visits undertaken by the Competent Person and the outcome The Competent Person visited the site in October 2022
of those visits.
If no site visits have been undertaken indicate why this is the case.
Study status The type and level of study undertaken to enable Mineral Resources to be The Competent Person considers that the project is at a Preliminary
converted to Ore Reserves. Feasibility (Pre-Feasibility) stage, as defined by the JORC Code.
The Code requires that a study to at least Pre-Feasibility Study level has The Competent Person has made recommendations relating to work required for a
been undertaken to convert Mineral Resources to Ore Reserves. Such studies Feasibility Study
will have been carried out and will have determined a mine plan that is
technically achievable and economically viable, and that material Modifying
Factors have been considered.
Cut-off parameters The basis of the cut-off grade(s) or quality parameters applied. Product parameters and penalties are determined by the offtake agreement and
discussed in Section 5.3 above. These have been automatically applied by the
pit optimisation and mine scheduling software to honour product specification
as closely as possible.
Mining factors or assumptions The method and assumptions used as reported in the Pre-Feasibility or The mining method is to be conventional Pilbara open pit truck-and-shovel iron
Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. ore mining, utilising a backhoe configuration excavator and articulated
either by application of appropriate factors by optimisation or by preliminary all-terrain trucks.
or detailed design).
This technique and selection of all-terrain trucks is considered to be
The choice, nature and appropriateness of the selected mining method(s) and appropriate in relation to the scale of the operation and rugged topography.
other mining parameters including associated design issues such as pre-strip,
access, etc. Geotechnical parameters are assumed at this stage, based on geotechnical
parameters in similar iron ore pits in the immediate vicinity.
The assumptions made regarding geotechnical parameters (e.g. pit slopes, stope
sizes, etc), grade control and pre-production drilling. The Mineral Resource model has been reblocked to 5m x 5m x 2m for Ridges C and
E and 5m x 5m x 2.5m for the Sirius (Constrained) mineralisation in an attempt
The major assumptions made and Mineral Resource model used for pit and stope to model dilution and ore loss. This reflects selective mining and the use of
optimisation (if appropriate). a bulldozer to separate shale bands from the ore.
The mining dilution factors used. Minimum mining widths were set at 30m, but in practice this is likely to be
less, given the relatively flat-lying nature of the mineralisation.
The mining recovery factors used.
Infrastructure is minimal, the project being reliant on contract, temporary
Any minimum mining widths used. infrastructure.
The manner in which Inferred Mineral Resources are utilised in mining studies
and the sensitivity of the outcome to their inclusion.
The infrastructure requirements of the selected mining methods.
Metallurgical factors or assumptions The metallurgical process proposed and the appropriateness of that process to Metallurgy assumes that all of the Ore Reserve reports to product, which is
the style of mineralisation. not unreasonable in a bulk iron ore mining operation, where metallurgical
losses are likely to be negligible.
Whether the metallurgical process is well-tested technology or novel in
nature. The cash flow model has corrected the scheduled product grades for penalties,
as per the offtake contract.
The nature, amount and representativeness of metallurgical test work
undertaken, the nature of the metallurgical domaining applied and the The mine scheduling software is a mixed integer linear programming algorithm
corresponding metallurgical recovery factors applied. that has used the product specifications to drive its results.
Any assumptions or allowances made for deleterious elements. Bulk samples have been taken and evaluated and the Competent Person is
satisfied that these, while preliminary, indicate that the majority of the
The existence of any bulk sample or pilot scale test work and the degree to product will report to the fines fraction.
which such samples are considered representative of the orebody as a whole.
The Competent Person has recommended further metallurgical study to determine
For minerals that are defined by a specification, has the ore reserve behaviour in the crushing and screening plant and lump-fines split.
estimation been based on the appropriate mineralogy to meet the
specifications?
Environmental The status of studies of potential environmental impacts of the mining and Environmental licensing and studies are progressing and the Competent Person
processing operation. Details of waste rock characterisation and the sees no apparent obstructions to licensing commensurate with estimation of a
consideration of potential sites, status of design options considered and, Probable ore Reserve
where applicable, the status of approvals for process residue storage and
waste dumps should be reported.
Infrastructure The existence of appropriate infrastructure: availability of land for plant The Hancock project lies near the major iron ore mining town of Newman where
development, power, water, transportation (particularly for bulk commodities), sufficient support infrastructure is available on contract to support the
labour, accommodation; or the ease with which the infrastructure can be proposed operation as an operating cost.
provided, or accessed.
Costs The derivation of, or assumptions made, regarding projected capital costs in Costs have been derived from preliminary budget quotations from contractors
the study. and supported by the Competent Person's internal estimates.
The methodology used to estimate operating costs. The costs, exchange rates and revenues used in the financial model have been
advised by IOCA and the Competent Person considers them to be reasonable for a
Allowances made for the content of deleterious elements. Pre-Feasibility Study.
The source of exchange rates used in the study.
Derivation of transportation charges.
The basis for forecasting or source of treatment and refining charges,
penalties for failure to meet specification, etc.
The allowances made for royalties payable, both Government and private.
Revenue factors The derivation of, or assumptions made regarding revenue factors including Revenues and product penalties have been advised by IOCA based on preliminary
head grade, metal or commodity price(s) exchange rates, transportation and offtake agreements and have been incorporated into the mine schedule and
treatment charges, penalties, net smelter returns, etc. financial model. The Competent Person considers them to be reasonable for a
Pre-Feasibility Study.
The derivation of assumptions made of metal or commodity price(s), for the
principal metals, minerals and co-products.
Market assessment The demand, supply and stock situation for the particular commodity, The product is subject to a preliminary agreement with a customer to accept up
consumption trends and factors likely to affect supply and demand into the to 3Mt of product annually. The mine schedule contemplates 1.25Mt of
future. production annually after the ramp-up period.
A customer and competitor analysis along with the identification of likely The Competent Person observes that the iron ore market is buoyant at the time
market windows for the product. of Ore Reserve estimation and makes no forecasts as to the future price of the
product beyond that indicated by the customer.
Price and volume forecasts and the basis for these forecasts.
The mine schedule indicates that the operation can supply product to within
For industrial minerals the customer specification, testing and acceptance the customer's minimum specification.
requirements prior to a supply contract.
Economic The inputs to the economic analysis to produce the net present value (NPV) in The financial analysis used the results of the mine schedule to inform the
the study, the source and confidence of these economic inputs including financial model and the Competent Person observes that the operation is
estimated inflation, discount rate, etc. profitable on the condition that the mining inventory is mined along with the
Ore Reserve.
NPV ranges and sensitivity to variations in the significant assumptions and
inputs. The Competent Person is satisfied that these parameters correspond to the
confidence expressed in a Pre-Feasibility Study.
Social The status of agreements with key stakeholders and matters leading to social Licencing has not been completed and the Competent Person notes that the
licence to operate. proposed operation is in an iron ore mining region, with adjacent iron ore
mining operations and does not see any impediment to licensing.
Other To the extent relevant, the impact of the following on the project and/or on The Competent Person does not identify any material natural risks.
the estimation and classification of the Ore Reserves:
The offtake agreements and project licensing are at a negotiation stage and
· Any identified material naturally occurring risks. the Ore Reserve is conditional on these being fulfilled.
· The status of material legal agreements and marketing arrangements. The Competent Person does not see any impediment to legal or offtake
agreements.
· The status of governmental agreements and approvals critical to the
viability of the project, such as mineral tenement status, and government and
statutory approvals. There must be reasonable grounds to expect that all
necessary Government approvals will be received within the timeframes
anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss
the materiality of any unresolved matter that is dependent on a third party on
which extraction of the reserve is contingent.
Classification The basis for the classification of the Ore Reserves into varying confidence The Ore Reserve has been classified as Probable, with an implied accuracy of
categories. +/-35% based on the Indicated Resource and Pre-Feasibility status of the
Modifying Factors.
Whether the result appropriately reflects the Competent Person's view of the
deposit. The Ore Reserve is contingent upon all of the attendant mining inventory being
mined.
The proportion of Probable Ore Reserves that have been derived from Measured
Mineral Resources (if any).
Audits or reviews The results of any audits or reviews of Ore Reserve estimates. There has been no audit or review of the Ore Reserve other than Burnt Shirt's
engagement of an independent Peer Reviewer.
Discussion of relative accuracy/ confidence Where appropriate a statement of the relative accuracy and confidence level in The Ore Reserve has been classified as Probable, with an implied accuracy of
the Ore Reserve estimate using an approach or procedure deemed appropriate by +/-35% based on the Indicated Resource and Pre-Feasibility status of the
the Competent Person. For example, the application of statistical or Modifying Factors.
geostatistical procedures to quantify the relative accuracy of the reserve
within stated confidence limits, or, if such an approach is not deemed The Ore Reserve is contingent upon all of the attendant mining inventory being
appropriate, a qualitative discussion of the factors which could affect the mined.
relative accuracy and confidence of the estimate.
The statement should specify whether it relates to global or local estimates,
and, if local, state the relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation should include assumptions
made and the procedures used.
Accuracy and confidence discussions should extend to specific discussions of
any applied Modifying Factors that may have a material impact on Ore Reserve
viability, or for which there are remaining areas of uncertainty at the
current study stage.
It is recognised that this may not be possible or appropriate in all
circumstances. These statements of relative accuracy and confidence of the
estimate should be compared with production data, where available.
Glossary
Halo - An area of rocks surrounding mineral deposits (orebodies) enriched in ore-forming elements.
Mineral Resource - a concentration or occurrence of solid or liquid material
of economic interest in or on the Earth's crust in such form, grade (or
quality), and quantity that there are reasonable prospects for eventual
economic extraction. The location, quantity, grade (or quality), continuity
and other geological characteristics of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and knowledge,
including sampling. Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured categories.
Ore Reserves - the parts of a Mineral Resource that can, at present, be
economically mined
Mining Schedule -the sequencing of operations and the assignment of equipment
and people, to ensure that the intended sequencing and production targets are
realized
Mineral resource classification - is the classification of mineral resources
based on an increasing level of geological knowledge and confidence.
Mining Proposal - A document submitted to the local state authority for
approval by the Department of Mines, Industry Regulation and Safety (DMIRS),
that is required before any mining operations can commence.
Mt - Million Tonnes
Moz - Million Ounces
Koz - thousand Ounces
ozt - Troy Ounces
g/t - Grams per Tonne
Pt - Platinum
Pd - Palladium
Rh - Rhodium
Cu - Copper
Ni - Nickel
Au - Gold
Ag - Silver
Pb - Lead
Zn - Zinc
Co - Cobalt
CR - Chronium
NiEq - Nickel Equivalent
AuEq - Gold Equivalent
PGM - Platinum Group Metals
3PGE - Platinum, Palladium, Gold
FID - Financial Investment Decision
1 (#_ftnref1) Baker, 2022
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