REG - Alien Metals Limited - Iron Ore Development Study for Hancock Project
08/02/2024 07:15
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RNS Number : 4065C Alien Metals Limited 08 February 2024
Trading Symbols
AIM: UFO
FWB: I3A1
8 February
2024
Alien Metals Ltd
("Alien" or "the Company")
Iron Ore Development Study delivers excellent project economics -
NPV(10) of A$146m with additional exploration potential
Updated Mineral Resource Estimate includes a significant upgrade to Indicated
Resources category
Alien Metals Ltd (AIM: UFO), a minerals exploration and development company,
is pleased to announce the results of the Development Study ("Development
Study") of its' 90% owned Hancock Iron Ore Project ("Hancock Project" or "the
Project"), in the Pilbara Region, Western Australia that has confirmed that
the Project has excellent project economics and prospectivity with extensive
untested mineralisation trends. The Study was coordinated by experts Mining
Plus Pty Ltd ("Mining Plus"), Burnt Shirt Pty Ltd ("Burnt Shirt") and internal
UFO personnel and is based on an updated Mineral Resource Estimate ("MRE")
containing a JORC Mineral Resource of 8.4Mt @ 60% Fe.
Key financial highlights:
· MRE of 8.4Mt @ 60% Fe JORC Mineral Resource, including an upgraded
Indicated Resource of 4.5Mt@ 60.2% Fe.
· Based on 8Mt of the Mineral Resource being converted to mining
inventory, robust project financials of the base case produced the following:
o an average annualised EBITDA of A$39m
o a pre-tax NPV(10) of A$146m and a pre-tax IRR of 133%
o All in sustaining cost of US$85/t
o Production rate of 1.25mtpa
o Initial development Capital Cost of A$28m
Other key highlights from the Development Study include the following:
· High confidence in the Capital and Operational Costs with pricing
received through the Early Contractor involvement and Preferred Tenderer
process resulting in up-to-date tendered pricing for more than 90% of the
Capital Costs and Operational Costs.
· Initial production plan focussed on current 3.9Mt mining inventory
with further upside to mine the entire Mineral Resource of 8.4Mt and beyond to
be realised through ongoing exploration upside. Further work confirmed a 165%
increase in Indicated Resources from 2.8mt to 4.5mt as part of an updated
Mineral Resource Statement.
· Ore processing will utilise a mobile dry crushing and screening plant
capable of producing 1.25Mt to 1.5Mt of 100% fines product per annum on a
single shift basis. Sprint capacity of the plant working on a double shift
basis is up to 3.0Mt per annum.
· Low start-up cost of A$28m capital including:
o A$18.0m for main roads intersection and access to Site,
o A$2.5m for site establishment and pre-production capital,
o A$6.5m of owners costs, working capital and contingency allowances.
· Reduction in costs achieved through the close proximity to the Mining
Hub of Newman. The proximity allows the Company to avoid extensive
construction capital costs associated with airstrip, mining camp and
associated services.
· Provisional export capacity through the Port of Port Hedland has been
secured and remains on track for final approvals during the first half of
2024.
· CSA Global conducted an independent review based on existing
geological information and a site visit to express an opinion about the
Exploration Potential of the Hancock Project. Their findings included:
o Tenement E47/3954: Significant exploration potential has been identified,
in addition to the 8.4Mt Mineral Resource outside of the known Mineral
Resource area;
o Tenement E47/3954: Walk up drill targets, with a potential to increase the
existing Mineral Resource
o Hancock Project Tenements E47/3954 and E47/5001: Significant strike
lengths of Weeli Wolli Formation BIF and Boolgeeda Iron Formations identified
and yet to be adequately explored.
· Alien has also separately completed an additional internal review of
Project Tenement E47/5001 1 (#_ftn1) , identifying (interpreted from GSWA
250k mapping) significant underlying geological lithologies that are suitable
hosts for iron ore mineralisation and exploration potential.
· Success through accelerating exploration activities could therefore
significantly increase the existing 8.4Mt JORC Mineral Resources, resulting in
potential for increases to planned production and mine life.
· Alien plans to conduct additional exploration during 2024 to target
an increase in its Mineral Resource while preparing for the mining development
and while the requisite approvals are obtained.
· Development Approvals currently remain on track to be in place by
mid-2024, allowing for site development to commence in 2024 and first ore
sales to be achieved in Q1 2025.
Alwyn Vorster, Non-Executive Chair, commented:
"The Development Study is a significant advancement and de-risking step for
the Hancock Project. Attractive project economics highlight the robustness of
the project with its low start-up cost, sustainable operational costs along
with the significant upside from future exploration plans.
"The geological review recently undertaken reinforces that the Hancock Project
has significant regional exploration potential to increase the resource base
through further exploration activities, supporting the Company's future growth
and expansion aspirations.
"Alien is confident that the global iron ore industry has a bright future,
underpinned by ongoing high demand for quality iron ore from stable
jurisdictions like Australia, where high environmental, social and governance
standards are set in the production of raw materials. Healthy iron ore prices
as experienced over the last few years will support the Hancock Project
delivering shareholder value in the medium term."
Further Information
Development Study(#)
Iron Ore Company of Australia Pty Ltd ("IOCA"), a wholly owned subsidiary of
AIM listed Alien Metals Ltd (LSE: UFO), is advancing development activities
for its Hancock Iron Ore Project (the Project) located in the Pilbara region
of Western Australia.
The project is approximately 18 kilometers north of the township of Newman in
an area renowned for producing high grade direct ship ore and about 430
kilometers south of the deep-water shipping Port of Port Hedland.
Figure 1: Location of the Company's Iron Ore Projects, Western Australia
Financial highlights of the Development Study include:
· Based on the available Mineral Resource of 8.0(+) million tonnes, and
conservative mid-point assumptions, robust project financials are produced
including an average annualised EBITDA of A$39m, a pre-tax NPV of A$146m and a
pre-tax IRR of 133%.
· High confidence in the Capital and Operational Costs with pricing
received through the Early Contractor involvement and Preferred Tenderer
process resulting in up-to-date tendered pricing for 92% of the Capital Costs
and 94% of the Operational Costs.
· C1 cash cost of A$92.3/dmt delivered an average operating margin of
A$33.2/dmt.
· Initial production plan based on 3.9Mt of contingent reserve with
further upside the JORC resource of 8.4Mt to be realised through ongoing
works.
· Low-cost capital start up of ~A$28M.
# - The Development Study is comprised of limited study elements at typical
Pre-Feasibility Study level (e.g. resource estimates and mining inventory),
and the majority of elements at Feasibility Study level (e.g. cost estimates,
approvals, offtake, financial modelling etc).
Table 1 - Development Study, Life of Mine Metrics
Item Unit Base Case Low Case High Case
(Mining >90% of Mineral Resources) (Mining only current Mining Inventory 2 (#_ftn2) ) (Mining of Exploration Upside tonnes)
Total Mined Product Mt 8.0 3.9 10.0
Production Rate Mtpa 1.25 1.25 2
Project Life (Production) Years 6.4 3.2 5
CAPEX A$m 28 28 28
AISC OPEX US$/dmt 85 85 85
Iron Ore Price US$/dmt 120 120 130
Realised Iron Ore Price US$/dmt 108 110 117
Exchange Rate US$-A$ 0.68 0.70 0.68
Annual EBITDA A$m 39 25 102
Pre-tax NPV(10) A$m 146 40 343
Pre-tax IRR % 133% 141% 338%
Payback Years 0.77 0.9 0.30
The basis (identified in Table 1 as the Low Case) of the Development Study
assumed Ore Produced came only from current Mining Inventory (3.9Mt). Even at
these low tonnage levels the Project still delivered healthy economic returns
with an annualised EBITDA of A$25m, a pre-tax NPV of A$40m and a pre-tax IRR
of 141%, total revenues of A$570m and a pre-tax net cashflow of A$51m.
The High Case includes the assumed (potential) realisation of additional
tonnes through exploration and/or tenement boundary softening 3 (#_ftn3)
allowing production and mine life to increase.
Updated Mineral Resource Statement (January 2024)
The Updated Mineral Resource Statement for the Hancock Iron Ore Project is
shown in Table 2. A 165% increase in Indicated Resources of 2.8Mt to 4.5Mt
total as part of an updated Mineral Resource Statement with a consequential
reduction in Inferred Resources.
The statements have been classified by Competent Person, Howard Baker
(FAusIMM(CP)) of Baker Geological Services (BGS). The Mineral Resource
Estimate JORC Tables can be found as Appendix 1.
Table 2 - Hancock Project Updated Mineral Resource Statement (January 2024)
Classification Category Prospect Mass (million tonnes) Average Value
Fe % SiO2 % Al2O3 % P % LOI % Mn %
Indicated Sirius Extension 2.8 59.8 3.9 4.09 0.17 5.4 0.05
Ridge C 0.7 60.9 4.9 3.27 0.12 3.7 0.03
Ridge E 1.0 61.0 5.2 3.30 0.12 3.4 0.02
Sub Total - Indicated 4.5 60.2 4.3 3.79 0.15 3.7 0.04
Inferred Sirius Extension 3.1 59.6 4.6 3.99 0.17 5.2 0.05
Ridge C 0.4 60.8 4.6 3.07 0.14 4.4 0.03
Ridge E 0.3 59.8 4.9 3.64 0.17 5.0 0.02
Sub Total - Inferred 3.8 59.7 4.6 3.88 0.17 5.1 0.05
Total 8.4 60.0 4.4 3.83 0.17 4.0 0.05
For comparison, the former resource statement was a total of 9.1 Mt @ 60.3% Fe
of which 1.7 Mt was in the Indicated category and 7.4Mt was in the Inferred
category.
Project Cost Estimate
Capital cost estimates for the Project have been sourced from contractor
quotations, services agreements and industry benchmarks. A summary of the
Project capital cost estimate is highlighted in Table 3.
Table 3 - Capital Cost Summary
Item Total (A$M)
GNH Intersection 6.4
Mine Haul Road 4.0
Site Facilities 7.6
Engineering Design 0.3
Owners Team Costs 0.9
Mine Site Establishment 0.8
Services (comms, power, water etc) 3.4
Pre-production capital 1.4
Bonds/Guarantees 1.5
Sustaining, Cont and Closure 1.9
Total 28.1
Operating cost estimates for the Project have been sourced from contractor
quotations, services agreements and industry benchmarks. A summary of the
Project operating cost estimate is highlighted in Table 4.
Table 4 - Operating Cost Summary, Base Case (Mining Inventory)
Item Total (A$M) A$/t ore
Mining 98.3 25.0
Processing 36.2 9.2
G&A 28.2 7.2
Logistics 199.5 50.8
C1 Costs 362.3 92.3
Freight 80.1 20.4
Royalties 41.2 10.5
AISC 483.5 123.1
A ranking of global iron ore producers based on their total cash cost per
tonne of ore is shown in Figure 2. The chart also highlights where the Project
will sit on the global cost curve.
Figure 2: 2023 Iron Ore Production ranked on Total Cash Cost (US$CFR)
Over the last five years, the average spot price is US$117/dmt having operated
in a range as high as US$227/dmt and a low point of US$62/dmt. At the end of
January the spot price of 62% Fe, CFR into China was $134.80 which provides
potential further upside to the base cases.
Figure 3: 5-year historical iron ore price and average
Multiple sensitivities were performed on the results of the financial
analysis. A matrix of the effect of a varying the benchmark 62%Fe commodity
price against the Project Discount Rate is shown in Table 5.
Table 5 - Commodity Price Against Discount Rate Sensitivity
Fe Price 4 (#_ftn4) Project NPV (A$M) IRR
(US$/t)
8% 10% 12%
110 2 1 1 15%
120 42 40 39 141%
130 83 80 76 254%
The financial analysis conducted on the Financial Base Case, using Mineral
Resources highlights the project's sensitivity to key variables (see Figure
3).
The commodity price, foreign exchange, operating expenses, and other factors
were thoroughly examined to assess their impact on cashflows. The tornado
chart highlights the impact to the project under various downside scenarios
whilst highlighting its strong upside potential.
Figure 4: Financial Sensitivity to Base Case NPV A$149m
Additional Mining Inventory
It is anticipated that prior to commencement of the Project further infill
drilling will occur at each deposit to convert inferred material to the
indicated category. The Company is seeking to put in place agreements with
adjoining tenement owners to allow mining of the Company's Sirius resource up
to, and/or beyond the tenement boundary.
The potential additional mining inventory should all the current Inferred
material be upgraded to the Indicated resource category and the tenement
boundary constraints be removed from the Sirius deposit, and Maintaining the
scheduled production rate, the estimated additional inventory would add
upwards of four years mine life beyond the currently scheduled three years.
Tenure and Ownership
A summary of the Hancock Project tenure and ownership is set out in Table 6.
Table 6 - Hancock Project Tenements
Tenement No. Type Status Ownership
E 47/3954 Exploration Granted 90% IOCA
E 47/5001 Exploration In application 100% IOCA
L 47/1063 Miscellaneous Granted 100% IOCA
M 47/1633 Mining In application 90% IOCA
Approvals
The key next focus of the Company is to secure the grant of the Mining Lease M
47/1633. Granting of this lease by DMIRS allows the Company to then submit the
final regulatory documentation for key approvals that will include:
· Mining Proposal and Closure Plan,
· Environmental Approvals (Part IV and V), and
· Native Vegetation and Clearing Permits.
The Company is cooperating with DMIRS on investigations about historical
(2021) breaches of regulations regarding heritage and ground disturbance on
the Hancock Project tenements. The Company is confident that these breaches,
which were self-reported by the Company in 2023, will be addressed without
significant impacts on the project development planning.
Infrastructure
The Project will involve the construction of an intersection at the Great
Northern Highway (GNH) followed by the construction of an access road from GNH
to the site infrastructure.
The Project does not require a dedicated air strip or accommodation due to the
close proximity of the established mining town of Newman.
Operations
Mining will employ a conventional drill and blast, truck and shovel
methodology which is well proven for operations of similar geology and scale.
Mining will commence at the Ridge C and Ridge E deposits with mining at the
Sirius deposit in the proceeding years. The project will target an initial
production rate of 1.25Mt of Direct Shipping Ore (DSO) product per annum. Ore
will be hauled to multiple fingers on a Run of Mine (ROM) pad allowing
blending to achieve desired iron grade and impurity levels.
Ore processing will utilise a mobile dry crushing and screening plant capable
of producing 1.25Mt of 100% fines product per annum on a single shift basis.
Sprint capacity of the plant working on a double shift basis is up to 3.0Mt
per annum.
Stockpiled ore product will be loaded onto quad trailer road trains and hauled
from the Project to Port Hedland via GNH. In Port Hedland the product will be
stored either in a bunker at Utah Point or at an offsite overflow stockpile.
Material from the overflow stockpile will be campaigned to the Utah Point
bunker as required. From the bunker product will be managed by a Port Services
contractor and loaded onto ships for transport to customers.
IOCA will provide the operation with management and technical services with
remaining site activities carried out by contractors on services agreements.
Next Steps
The Development Study has confirmed the potential economic viability of the
Hancock Iron Ore Project. Whilst this is not a Definite Feasibility Study
("DFS") the costs and other inputs are broadly to a DFS level (excluding any
assumptions relating to Inferred Resource). Once a project funding partner is
identified and terms agreed, the Company and such partner will consider
whether a formal DFS is required at that stage. IOCA is now progressing
development works towards the requirements for a Final Investment Decision
(FID). The following key activities have been planned as part of the next
phase of Project development:
· Progress funding discussions, including self-development, possible
joint venture options and other funding arrangements
· Progress dialog with tenement neighbours to enable viable extraction
of Sirius resource
· Complete optimised design of Sirius haul road and pit entry which
minimises cut and fill volumes whilst having minimal impact on environmentally
and culturally sensitive areas
· Finalise work with its consultants to determine most economical GNH
intersection design
· Finalise work with its consultants to optimise access road alignment
for capital savings and cultural/environmental sensitivity. This will include
geotechnical sampling along preferred alignment to identify scale of drill and
blast requirements.
· Finalise Mine Operations Centre layout for cultural and environmental
sensitivity
· Finalise discussion with potential offtake partners to confirm
desired product specifications and market appeal.
· Continued focus on heritage surveys:
o access to bore fields to secure a water supply for initial infrastructure
works
o access to ore reserves and adjacent infrastructure
o clearance of exploration potential zones
· Exploration activities in those areas identified as having
exploration potential to target an increase in resources and reserves after
the required studies are completed.
ADDITIONAL EXPLORATION POTENTIAL
Figure 4: Hancock Project Tenements
Figure 5: Exploration potential areas and Regional Potential
Mineral Resources
· The exploration potential areas complement the Mineral Resource shown
in Table 7 (Baker, 2024).
· The resources for Ridge C and Ridge E are hosted in the Weeli Wolli
Formation.
· Sirius Extension is hosted in Boolgeeda Iron Formation (see Figure
5).
· All three of the deposits are located in E47/3954.
Table 7 - Hancock Project Updated Mineral Resource Statement (January 2024)
Classification Category Prospect Mass (million tonnes) Average Value
Fe % SiO2 % Al2O3 % P % LOI % Mn %
Indicated Sirius Extension 2.8 59.8 3.9 4.09 0.17 5.4 0.05
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 4.5 60.2 4.3 3.79 0.15 3.7 0.04
Inferred Sirius Extension 3.1 59.6 4.6 3.99 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 3.8 59.7 4.6 3.88 0.17 5.1 0.05
Total 8.4 60.0 4.4 3.83 0.17 4.0 0.05
Figure 6: Regional Geology Mapping, E47/3954 and E47/5001
Exploration potential areas (E47/3954)
During November and December 2023, ERM Australia Consultants Pty ltd, trading
as CSA Global, completed an independent assessment of the Hancock Project and
generated areas of exploration potential. These exploration potential areas
are based on drilling results, field reconnaissance and rock chip sampling
which identified 10 polygons where there is supporting evidence of iron
mineralisation. The exploration potential polygons (potential mineralisation)
are shown in the Appendix.
The exploration potential zones focus on those areas that are within vicinity
of the existing Mineral Resource, providing the company with near term, walk
up targets to test and potentially expand the resource.
Figure 7: Focused targets on E47/3954 and E47/5001
Exploration of the regional targets is scheduled to commence during the first
half of 2024. The initial exploration plans call for the high priority areas
to be mapped and rock chipped to enable further ranking of these areas before
possible drill testing later in 2024. Given the experience and geological
knowledge of the known Mineral Resource areas, the Company is confident that
these priority target areas of the Weeli Wolli Formation BIF can be assessed
rapidly to enable an aggressive exploration program to yield positive results.
CSA Global did not visit Exploration License Application 47/5001; however,
they have identified based on a review of available aerial imagery supported
by GSWA 250k mapping, there is evidence supporting the presence of significant
strike lengths of Weeli Wolli Formation BIF and Boolgeeda Iron Formation
particularly in the southeastern corner of the tenement (Figure 7). The Sirius
Extension deposit located in the northeast of E47/3954 is hosted in Boolgeeda
Iron Formation and planned exploration in E47/5001 will attempt to investigate
for geological and mineralisation similarities.
Figure 8: Focused targets on E47/5001
Figure 9: Focused targets on E47/3954 and E47/5001
E47/5001 has yet to be granted. This is the subject of the standard and
regulatory process. Although the Company is confident that E47/5001 will be
granted in the first half of 2024 there is no guarantee, and this represents a
risk.
Forward Work Programme
The Company will now commence planning for:
1. a detailed mapping programme to be completed by experienced iron ore
geologists over all Weeli Wolli Formation BIF ridges with a focus on
delineating mineralisation boundaries supported by a technical mapping report,
and
2. a focussed and targeted exploration drilling campaign.
Geological Risks
The main geological risk is the limited drilling data supporting the present
geometry and continuity of the exploration potential polygons.
Hancock Project Reserves (AIM: 26 April 2023)
Table 16 - Hancock Project Ore Reserves
Material Tonnes (Mwmt) Volume (Mbcm) Fe % SiO2 % Al2O3 % P % LOI % Mn %
Proved
Probable 1.9 0.7 60.2 5.69 3.54 0.12 3.85 0.02
Total 1.9 0.7 60.2 5.69 3.54 0.12 3.85 0.02
Table 17 - Hancock Mining Inventory
Material Tonnes (Mwmt) Volume (Mbcm) Fe % SiO2 % Al2O3 % P % LOI % Mn %
Unclassified 4.2 1.6 60.5 4.11 3.53 0.15 4.74 0.04
Total 4.2 1.6 60.5 4.11 3.53 0.15 4.74 0.04
Competent Person Statements
The information in this announcement 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 a 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.
The information in this announcement 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 an 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.
The information in this report that relates to Exploration Results is based on
information compiled by Mr Mark Pudovskis. Mr Pudovskis is a full-time
employee of CSA Global Pty Ltd and is a Member of the Australasian Institute
of Mining and Metallurgy. Mr Pudovskis has sufficient experience relevant to
the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as 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 Pudovskis
consents to the disclosure of the information in this report in the form and
context in which it appears.
The Base Case identified includes an assumption that Inferred Mineral
Resources are mineable and a general technical and economic assessments has
been applied. This assumption does not provide assurance of an economic
development case at this stage, or to provide certainty that the conclusions
of the Development Study will be realised.
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 (Broker)
Harry Ansell / Katy Mitchell Tel +44 (0) 207 220 1666
Yellow Jersey PR (Financial PR)
Charles Goodwin / Shivantha Thambirajah / Soraya Jackson Tel: +44 (0) 20 3004
9512
Notes to Editors:
Alien Metals Ltd is a mining exploration and development Company listed on the
AIM market of the London Stock Exchange (LSE: UFO). The Company's focus is on
delivering a profitable, long life direct shipping iron ore operation based
out of the Pilbara in Western Australia. In 2019, the Company acquired 51% of
the Brockman and Hancock Ranges high-grade (Direct Shipping Ore) iron ore
projects and in December 2022 moved to 90% legal and beneficial ownership. The
Company also acquired 100% of the Vivash Gorge Iron Ore project in the west
Pilbara in July 2022.
The Company acquired 100% of the Elizabeth Hill Silver Project, which consists
of the Elizabeth Hill Historic Mining Lease and the 115km(2) exploration
tenement around the mine.
In March 2022 the Company acquired 100% of the former joint venture interest
in the Munni Munni Platinum Group Metals and Gold Project in the West Pilbara,
Western Australia, one of Australia's major underexplored PGE and base metals
projects. Munni Munni holds a historic deposit containing 2.2Moz 4E PGM:
Palladium, Platinum, Gold, Rhodium and sits within the Companies Pinderi Hills
prospective Nickel, Copper and PGM tenements.
In May 2023, the Company acquired 100% of Mallina Exploration Pty Ltd and with
it, the Western Hancock Tenement. The new tenement adjoins the Company's
existing Hancock tenement, giving the entire Hancock project direct access to
the Great Northern Highway.
The Company also holds silver, copper and base metal projects in various
locations around the world however is currently looking at the best way to
divest these for the benefit of shareholders.
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.
Glossary
Indicated Mineral Resource - 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. Geological evidence is derived from
adequately detailed and reliable exploration, sampling and testing gathered
through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes, and is sufficient to assume geological and
grade (or quality) continuity between points of observation where data and
samples are gathered.
Inferred Mineral 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 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. An
Inferred Mineral Resource has a lower level of confidence than that applying
to an Indicated Mineral Resource and must not be converted to an Ore
Reserve. It is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with continued
exploration.
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.
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.
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 Inventory - As part of the Mining Reserve process reported in RNS 26
April 202, a mining inventory for scheduling, by pit was produced. 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.
Ore Reserves - the parts of a Mineral Resource that can, at present, be
economically mined
DSO - Direct Shipping Ore
Fe - Iron
Al - Aluminium
Ca - Calcium
K - Potassium
Mg - Magnesium
Mn - Manganese
Na - Sodium
P - Phosphorus
S - Sulphur
Si2O3 - Silica
Mt - Million Tonnes
BIF - Banded Iron Formation
Dmt- dry metric tonnes
APPENDIX 1 - Mineral Resource Estimate
JORC TABLE 1 CHECKLIST
January 2024 Mineral Resource
Assessment Criteria
Section 1 Sampling Techniques and Data
(Criteria listed in the preceding section also apply to this section.)
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
· Include reference to measures taken to ensure sample representivity samples 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.
· All diamond drilling completed at the Sirius Extension prospect
resulted in 1 m samples with variable lengths based on geological contacts.
· All diamond drill core was split by a contractor and sampled by
IOCA geologists. The core was then dispatched to ALS Laboratories in Malaga,
Spain for analysis.
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.
· The Sirius Extension diamond drilling campaign was completed by
West Core drilling using a LF90D 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
results assessed. note was made on the logging sheets.
· Measures taken to maximise sample recovery and ensure representative · Where very little sample was recovered in a meter interval this
nature of the samples. was 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
whether sample bias may have occurred due to preferential loss/gain of on 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.
· Phase 2 diamond drilling at Sirius Extension resulted in an
average core recovery of 95%.
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 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
duplicate/second-half sampling. diamond 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. · As part of the recent Sirius Extension diamond drilling campaign,
IOCA used the industry standard of inserting CRM samples, blanks (a washed
river sand) and duplicate samples. The CRMs are sourced from Geostats Pty Ltd,
Perth, WA, a global leader in the manufacture and sale of CRMs.
· In total, 48 CRMs were submitted, along with 15 duplicates and 22
blanks. This equates to an insertion rate of 4%, 1% and 2% respectively.
Whilst below the industry standard of 5%, the QA/QC results are deemed
acceptable with adequate variation from the standard acceptable CRM grades
received. Duplicate samples also returned acceptable results to accept that
all laboratory analysis results are within international standards and are fit
for use in the MRE.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · Intertek Genalysis, Perth, used for sample preparation and
laboratory procedures used and whether the technique is considered partial or analysis, Basic Iron Ore Package/XRF single point LOI analysis method.
total.
· Laboratory also used Certified Reference Materials and/or
· For geophysical tools, spectrometers, handheld XRF instruments, etc., in-house controls, blanks and replicates analysed with each batch of samples
the parameters used in determining the analysis including instrument make and with these quality control results reported along with the sample values in
model, reading times, calibrations factors applied and their derivation, etc. the final report.
· Nature of quality control procedures adopted (e.g. standards, blanks, · Industry Standard CRM's from Geostats PTY Ltd, Perth were
duplicates, external laboratory checks) and whether acceptable levels of inserted 1 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
or alternative company personnel. in 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.
· The addition of 13 diamond drill holes at Sirius Extension, used
in this update, has allowed a detailed RC bias study to be completed. The new
diamond drill data was assessed based on the location of the water table,
noted from the downhole gamma surveys. It was found that when comparing the RC
data against the diamond data, that five of the previous RC drill holes showed
a high degree of grade smoothing below the water table.
· As a result of the additional diamond drillholes and the review
completed, the decision was made to remove the assay data from the grade
estimate within the wet portion of the five RC drill holes identified as
showing a smoothing of grade.
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 is sufficient to establish o Sirius Extension = approximately 50 to 100 m section spacing with on fence
the degree of geological and grade continuity appropriate for the Mineral spacing from 30 to 50 m.
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.
· The remaining diamond core is strapped on pallets in a secure
core cutting facility in Kalgoorlie.
· Pulps are currently at ALS Malaga, with the plan in place to have
them returned to IOCA and stored in a secure lock-up style facility in
Carlisle, 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 3(rd) 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 3(rd) 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.)
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 15 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]
· The security of the tenure held at the time of reporting along with in the northeast corner of the exploration tenure (approximately 19 ha), in
any known impediments to obtaining a licence to operate in the area. and 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.
· The Hancock Project is located within the Nyiyaparli Native Title
Determination Area (WCD2018/008). Karlka Nyiyaparli Aboriginal Corporation
(KNAC) is the Registered Native Title Body Corporate (RNTBC) and the appointed
heritage body for the Nyiyaparli People.
· Significant milestones have been achieved by IOCA in relation to
successfully negotiating a Heritage Agreement and a Mining Agreement with
KNAC. These Agreements reflect IOCA's acknowledgement of the unique and
continuing connection that Nyiyaparli people have to the Country where we seek
to operate and support the company's commitment to build positive
relationships with Traditional Owners that are based on respect, meaningful
engagement, and trust.
· To ensure alignment with the agreed Heritage and Mining
Agreements, IOCA will develop appropriate cultural heritage management
protocols including:
· Detailing specific procedures to be implemented by IOCA with
Nyiyaparli people through KNAC.
· Protecting Nyiyaparli cultural heritage and ensuring
compliance with regulatory (WA Heritage Act, 1972) requirements.
· Protecting Nyiyaparli anthropological, archaeological and
ethnographic sites in areas within the project location prior to, during and
post mining activities.
· Implementing where practicable, cultural heritage management
recommendations to satisfy compliance expectations.
· Developing an Aboriginal Cultural Heritage Management Plan
that reflects best practice in relation to Cultural Heritage Management and
includes the company's ongoing commitment in the delivery of Cross-Cultural
Awareness to all its staff and contractors.
· Since November 2022 KNAC, on behalf of IOCA has conducted
multiple cultural heritage surveys. The scope of these works has included:
· Four archaeological site avoidance surveys of existing tracks
and drill pads on tenement E47/3954 and of the polygon area that represents
the footprint for the proposed mine operations area.
· Two ethnographic site avoidance surveys of the entire
E47/3954 tenement area
· An ethnographic site identification survey of the
miscellaneous licence L37/1063 which overlays tenement E47/5001 and represents
a future access track and mine haulage road to the mine operations area.
· Where outcomes of heritage surveys have identified locations or
material considered by KNAC representatives as Aboriginal Places and/or
Aboriginal Objects, IOCA will work with KNAC to implement appropriate
management measures to remediate previous ground disturbance and avoid future
disturbance to cultural heritage places and objects. In the event that it is
considered necessary for IOCA to disturb identified Aboriginal places or
objects as part of project operations, then appropriate consultation will be
undertaken with Traditional Owners and procedures adopted that are consistent
with the requirements of Aboriginal Heritage Act (1972 revised).
· A schedule of proposed ethnographical and archaeological heritage
surveys to be conducted in 2024 to support project development had been
developed and forwarded to KNAC.
· 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 that 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 UPDATE 15% 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
maximum and/or minimum grade truncations (e.g. cutting of high-grades) and the 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 practiced 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
treatment; metallurgical test results; bulk density, groundwater, geotechnical ridges (A to H) have been identified and sampled. BGS visited all ridges and
and rock characteristics; potential deleterious or contaminating substances. general 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
including the main geological interpretations and future drilling areas, any 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.)
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
example, transcription or keying errors, between its initial collection and original 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
outcome of those visits. ridges 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 /
· Nature of the data used and of any assumptions made. alteration-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.
· 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
length (along strike or otherwise), plan width, and depth below surface to the dip
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
and key assumptions, including treatment of extreme grade values, domaining, were 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
description of computer software and parameters used. was 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
· Estimation of deleterious elements or other non-grade variables of and a minimum of 4 samples and a maximum of 16 samples at Ridge C and E.
economic significance (e.g. Sulphur for acid mine drainage characterization). Samples 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
· Any assumptions behind modelling of selective mining units. separate 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 SiO(2) 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.
· At Ridge C and E, the moisture content is based on the results
from a bulk sample which are not considered appropriate at this stage.
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 optimisation studies
dimensions and internal (or, if applicable, external) mining dilution. It is being completed to enable the reporting of the Mineral Resource Statement.
always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential mining methods, but the · To determine the final Mineral Resource Statement, the model has
assumptions made regarding mining methods and parameters when estimating been subjected to an optimisation exercise to determine the proportion of the
Mineral Resources may not always be rigorous. Where this is the case, this material defined that has a reasonable prospect of eventual economic
should be reported with an explanation of the basis of the mining assumptions extraction ("RPEEE") via open pit mining methods, as defined in the JORC Code,
made. 2012 edition. For Ridge C and E, the optimisation was carried out by
independent consultants Mining Plus and for the Sirius Extension update, the
optimisation was carried out by Snowden Optiro.
· The optimisation was based on the Indicated and Inferred
mineralised high-grade BIF material only.
· For Ridge C and E, the optimisation used a metal price of
USD162.5/t and for Sirius Extension the optimisation used a baseline metal
price of USD175/t. The different prices used reflect the time difference in
the optimisation carried out with the optimisation for Ridge C and E being
completed for the March 2023 update and the Sirius Extension optimisation
being carried out for this update. BGS comments that the optimisation is not
sensitive to metal price in the ranges being used and as such does not
consider the different prices used to be material to the final Mineral
Resource Statement.
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
explanation of the basis of the metallurgical assumptions made. drill 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 · IOCA have completed flora and fauna surveys of the licence along
disposal options. It is always necessary as part of the process of determining with native title surveys. As such, BGS and IOCA are not aware of any
reasonable prospects for eventual economic extraction to consider the factors (environmental, permitting, legal, title, taxation, socio-economic,
potential environmental impacts of the mining and processing operation. While marketing, political, or other relevant factors) that have materially affected
at this stage the determination of potential environmental impacts, the Mineral Resource Estimate.
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 has been used to assign density to the Ridge
assumptions. If determined, the method used, whether wet or dry, the frequency and Sirius domains. A moisture correction factor is required to adjust the raw
of the measurements, the nature, size and representativeness of the samples. caliper adjusted downhole gamma data. This can be based on moisture content
from twin diamond drill holes where a specific moisture assay has been carried
· The bulk density for bulk material must have been measured by methods out. For Ridge C and E, a correction factor has been selected based on the
that adequately account for void spaces (vugs, porosity, etc.), moisture and bulk sample collected at Ridge C. ALS determined a 6% moisture content for the
differences between rock and alteration zones within the deposit. bulk sample. This is however not deemed accurate due to the time taken between
collection and analysis and the various handling steps required. The bulk
· Discuss assumptions for bulk density estimates used in the evaluation sample was also open to the elements for a period of time. However, in the
process of the different materials. 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.
· For the recent Sirius Extension drilling, moisture was collected
from core samples and the downhole gamma survey recorded moisture using a
neutron tool. The combined data resulted in a correction factor being
determined by Wireline Services Group.
· For the high-grade BIF material, the average corrected density
value for Ridge C and E is 2.74 g/cm3 and at Sirius Extension, 2.47 g/cm3 in
the material above the water table and 2.42 g/cm3 in the material below the
water table. At Ridge C and E, no correction has been made for the Cap or
fresh and oxidised domains due to the lack of moisture data.
Classification · The basis for the classification of the Mineral Resources into · The Project has been classified as containing Indicated and
varying confidence categories. Inferred Mineral Resources. No Measured Mineral Resources have been assigned.
Infill drilling at Ridge C and E and Sirius Extension is now on a density in
· Whether appropriate account has been taken of all relevant factors places that allows a robust geological model to be created with excellent
(i.e. relative confidence in tonnage/grade estimations, reliability of input continuity between sections. In addition, a bulk sample collected at Ridge C
data, confidence in continuity of geology and metal values, quality, quantity confirms the location of high-grade material, although not representative of
and distribution of the data). the overall resource grade.
· Whether the result appropriately reflects the Competent Person's view · BGS has also completed a site visit to the Project and observed
of the deposit. 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 and Sirius Extension
prospects have been classified as an Indicated Mineral Resource.
· Indicated Mineral Resource have been assigned to Ridge C and E
and Sirius Extension based on the following criteria:
Ridge C "Main" high-grade zone only
Ridge E "Main" and "Upper" high-grade zones only
Sirius Extension high grade BIF and CAP material
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.
· It is noted that the CAP material is not reported within the
final Mineral Resource Statement 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. · The Ridge C and E and maiden Sirius Extension resource models
have been peer reviewed by Mining Plus. However, no peer review has taken
place for the updated Sirius Extension resource model, with the exception of
internal reviews by IOCA personnel.
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.
· 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 0.45 . 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.
· Given the quantity of data at Sirius Extension, the estimate can
be considered reasonable on a local scale, especially in areas of Indicated
resource classification.
APPENDIX 2 - Exploration Potential
Figure A2: E47/5001 interpreted Weeli Wolli BIF location plan drill hole,
sheet 1 of 5
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 · Reverse circulation percussion (RCP) drilling, with 1m samples
specific specialised industry standard measurement tools appropriate to the obtained.
minerals under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad · A tri-cone splitter at the cyclone was used to obtain 2 sample splits
meaning of sampling. and a bulk sample per meter.
· Include reference to measures taken to ensure sample representivity and · A number of rock chip samples were taken from ridges F, G and H. The
the appropriate calibration of any measurement tools or systems used. exact number of samples taken from each ridge was not recorded, and the
original assay results were not provided. No details of the methodology and
· Aspects of the determination of mineralisation that are Material to the representivity of the rock chip sampling methods was recorded
Public Report.
· 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 air · Reverse circulation percussion (RCP) drilling.
blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or
standard tube, depth of diamond tails, face-sampling bit or other type, · Drilling at Ridge F and Ridge G was done by Three Rivers Drilling using
whether core is oriented and if so, by what method, etc). a Schramm 450 RC TM.
· No details of the rigs used on the other prospects are available.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · No details of RCP sample recoveries were recorded.
results assessed.
· Drilling challenges included sample recovery due to the fine nature of
· Measures taken to maximise sample recovery and ensure representative some material and the presence of water.
nature of the samples.
· Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
Logging · Whether core and chip samples have been geologically and geotechnically · All holes were geologically logged, with two lithologies/sample
logged to a level of detail to support appropriate Mineral Resource recorded. Many samples also had weathering, colour and hardness recorded. Some
estimation, mining studies and metallurgical studies. samples only had the main lithology recorded.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography.
· The total length and percentage of the relevant intersections logged.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · It is assumed that the same processes were used for the 27 RCP holes
taken. drilled outside the resource as for the drilling supporting the resource.
· If non-core, whether riffled, tube sampled, rotary split, etc and · A tri-cone splitter at the cyclone was used to obtain 2 sample splits
whether sampled wet or dry. and a bulk sample per meter.
· For all sample types, the nature, quality and appropriateness of the
sample preparation technique.
· Quality control procedures adopted for all sub-sampling stages to
maximise 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 laboratory · Intertek Genalysis, Perth, was used for sample preparation and
procedures used and whether the technique is considered partial or total. analysis. Method used was standard XRF (12 analytes plus LOI). Samples were
analysed for Fe, Al(2)O(3), SiO(2), P, MgO, MnO, Na(2)O, CaO, Cr(2)O(3), S and
· For geophysical tools, spectrometers, handheld XRF instruments, etc, TiO(2.)
the parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc. · IOCA used the industry standard of inserting 5% Certified reference
material (CRM) and 5% duplicate samples at source (rate of insertion not
· Nature of quality control procedures adopted (eg standards, blanks, recorded in the report). In total, 435 duplicate samples were submitted.
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie lack of bias) and precision have been established. · No details of laboratory QAQC procedures were found, but it is assumed
that industry standards regarding CRMs and blanks were applied.
Verification of sampling and assaying · The verification of significant intersections by either independent or · No twinned holes drilled outside main deposits.
alternative company personnel.
· No details of verification available
· The use of twinned holes.
· All data is held in an excel spreadsheet
· 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 and · Holes were scattered (no grid), split between 6 separate prospects.
down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation. · Differential GPS was used to locate and survey drill hole collars.
· Specification of the grid system used.
· Quality and adequacy of topographic control.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Data spacing is variable. No grid drilling was done, and the 27 RCP
holes are scattered between 6 separate prospects.
· Whether the data spacing and distribution is sufficient to establish
the degree of geological and grade continuity appropriate for the Mineral · Rock chip sampling on main ridges was used to help define areas of
Resource and Ore Reserve estimation procedure(s) and classifications applied. potential iron ore mineralisation.
· Whether sample compositing has been applied.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · Most holes were angled to be as close to perpendicular to the dip of
possible structures and the extent to which this is known, considering the the BIF ridges as possible.
deposit type.
· 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. · All samples generated were stored in locked facilities in Newman with
RCP chip trays being stored in secure facilities in Perth.
· Retained pulp samples are kept in secure storage in Perth.
Audits or reviews · The results of any audits or reviews of sampling techniques and data. · Unknown.
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 · E47/3954 is held as a joint venture between the Iron Ore Company of
agreements or material issues with third parties such as joint ventures, Australia (90%) and Windfield Metals Pty Ltd (10%).
partnerships, overriding royalties, native title interests, historical sites,
wilderness or national park and environmental settings. · The tenement was granted on 20/11/2018 and is in good standing.
· The security of the tenure held at the time of reporting along with any · Native title claim WC2005/006 has been determined (native title
known impediments to obtaining a licence to operate in the area. cleared)
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · E47/3954 has previously been held by three companies.
· CSR did not record any work between 1983 and 1984.
· Brockman East Pty Ltd completed geological mapping and airborne
geophysics between 2008 and 2011.
· Commodite Resources Pty Ltd conducted rock chip sampling over the
Kalgan prospect which returned several results of +55% Fe. The work was
conducted by Volta Mining Ltd.
Geology · Deposit type, geological setting and style of mineralisation. · Stratigraphically E47/3954 lies within the Hamersley Group and
comprises ridges of Weeli Wolli Formation. The Weeli Wolli Formation comprises
an alternating approximately 450m sequence of BIF, Shaly BIF, Shale, and
intrusive dolerite units, with individual units varying from 1m to
approximately 70m in thickness. In outcrop the BIF is typically red-black in
colour. Three major ridges of BIF have been identified within the sequence.
Drill hole Information · A summary of all information material to the understanding of the · A total of 27 RCP holes, distributed between 6 different prospects were
exploration results including a tabulation of the following information for drilled as tabulated below. Holes were angled to be as close to perpendicular
all Material drill holes: to the dip of the BIF as possible. Most were angled at approximately 60(0)
although some were vertical.
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
Prospect Holes Metres
o dip and azimuth of the hole Central Kalgan 1 113
Kalgan 7 446
o down hole length and interception depth Krill Back 3 144
Ridge F 4 120
o hole length. Ridge G 8 230
Southern Ridge 4 219
· If the exclusion of this information is justified on the basis that the Total 27 1272
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
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 · Downhole lengths of mineralisation were reported. Holes were angled to
Exploration Results. be as close to perpendicular to the dip of 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 (eg 'down hole length, true width
not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Maps illustrating geology, field reconnaissance, drilling and rock chip
intercepts should be included for any significant discovery being reported sampling ,overlain by exploration potential polygons are included in the body
These should include, but not be limited to a plan view of drill hole collar of this release.
locations and appropriate sectional views.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · Significant drill intercepts are reported in the body of this release.
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 reported · IOCA has identified and named eight ridges (termed Ridges A to H) of
including (but not limited to): geological observations; geophysical survey which most have been chip samples. In addition, numerous other smaller,
results; geochemical survey results; bulk samples - size and method of discontinuous ridges have been identified but not sampled as shown on the
treatment; metallurgical test results; bulk density, groundwater, geotechnical attached map.
and rock characteristics; potential deleterious or contaminating substances.
· Downhole geophysical logging was used to determine the density of the
material for the resource estimation of the man deposits, and this same
density was applied to the Exploration result. Density was considered
unreliable due to poorly estimated moisture content but used in modelling
regardless.
·
Further work · The nature and scale of planned further work (eg tests for lateral · Future work should include geological remapping of the tenement to
extensions or depth extensions or large-scale step-out drilling). determine if any of the small. Discontinuous BIF ridges previously identified
hold any potential mineralisation.
· Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
Data aggregation methods
· In reporting Exploration Results, weighting averaging techniques,
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.
· No data aggregation methods have been used
Relationship between mineralisation widths and intercept lengths
· These relationships are particularly important in the reporting of
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').
· Downhole lengths of mineralisation were reported. Holes were angled to
be as close to perpendicular to the dip of the BIF as possible.
Diagrams
· Appropriate maps and sections (with scales) and tabulations of
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
· Maps illustrating geology, field reconnaissance, drilling and rock chip
sampling ,overlain by exploration potential polygons are included in the body
of this release.
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 practiced to avoid misleading reporting of Exploration
Results.
· Significant drill intercepts are reported in the body of this release.
Other substantive exploration data
· Other exploration data, if meaningful and material, should be 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.
· IOCA has identified and named eight ridges (termed Ridges A to H) of
which most have been chip samples. In addition, numerous other smaller,
discontinuous ridges have been identified but not sampled as shown on the
attached map.
· Downhole geophysical logging was used to determine the density of the
material for the resource estimation of the man deposits, and this same
density was applied to the Exploration result. Density was considered
unreliable due to poorly estimated moisture content but used in modelling
regardless.
·
Further work
· The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out drilling).
· Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
· Future work should include geological remapping of the tenement to
determine if any of the small. Discontinuous BIF ridges previously identified
hold any potential mineralisation.
1 (#_ftnref1) E47/5001 has yet to be granted and is the subject of the
typical and standard regulatory process. The Company is confident that
E47/5001 will be granted in the first half of 2024
2 (#_ftnref2) The mining studies of the Development Study Report assumed
only the 3.9Mt current mining inventory is mined, although the base case
financial evaluation assumed >90% of the Resource will be mined over time.
3 (#_ftnref3) See additional Mining Inventory section.
4 (#_ftnref4) Reference Price for 62% Fe
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