REG - Berkeley Energia - DFS confirms Salamanca as a low cost producer <Origin Href="QuoteRef">BKY.AX</Origin> - Part 14
14/07/2016 07:31
- Part 14: For the preceding part double click ID:nRSN1376Em
and potential of the deposit to be developed, viable exploitation is considered feasible.
The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any). All Measured mineral resources have been converted to Proven ore reserves.
Audits or reviews The results of any audits or reviews of Ore Reserve estimates. Cameron Mining has done a review of the mining aspects of the project, focusing on scheduling and pit shell selection. For
processing purposes Randall Schiefeld and Russell Bradford have provided a general review, focusing first of them on heap
leaching and second on general structure of the project.
Discussion of relative accuracy/ confidence Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate. The confidence level is reflected in the resource classification category chosen for the reported OR.The definition of current
Ore Reserves is appropriate for the level of study and the geological confidence imparted by the drilling grid.The reported OR
is considered appropriate and representative of the grade and tonnage at the selected U3O8 cut-off grades.
The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. Minor amounts of inferred resources have been unavoidably included into the mine plan. These resources are mined late in the
mine life, an evaluation of the effect of these resources on the economic outcome of the project has demonstrated that the
effect is minor and does not affect the project outcome. The inferred resources have NOT been converted to ore reserves.
Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage. It is considered that all modifying factors applied to generate the ore reserve estimates have been developed to a level of
accuracy required to support a feasibility study.
It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available. No production has been carried out at Retortillo.
Production (pounds U3O8)
582
Sales price
582
Operating costs
517
Capital costs
521
Plus 10%
Production (pounds U3O8)
632
Sales price
632
Operating costs
502
Capital costs
510
Social
The status of agreements with key stakeholders and matters leading to social licence to operate.
An Exploitation plan was submitted to the regulatory body, the review of which included a public consultation. All
stakeholders were asked to provide comments on the project. A number of questions were raised and all of them answered.
After the review of the questions and the answers and after the review of all the documents shown by the company, the
project was authorised by relevant mining legislation. The Nuclear Safety Council has authorised the conceptual project and
is reviewing the additional information to authorise the plant construction.
Other
To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore
Reserves:
Any identified material naturally occurring risks.
N/A
The status of material legal agreements and marketing arrangements.
Consortium Agreement with ENUSA (the tenement title holder) signed and registered in the official register of mining rights
of the Ministry of Industry, in which Berkeley is declared the solely and exclusive operator of the tenement. Berkeley will
only compensate ENUSA with a royalty of 2.5% of the production.
The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement
status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government
approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and
discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is
contingent.
Exploitation, rehabilitation and closure plans submitted to the administration, as well as the Environmental Scoping
Document, which has been already processed, with the feedback that there is nothing that may make the project non-
compatible with the existing environment or protected areas.
Classification
The basis for the classification of the Ore Reserves into varying confidence categories.
Measured mineral resources have been classified as Proven ore reserves while Indicated mineral resources have been
classified as Probable ore reserves.
Whether the result appropriately reflects the Competent Person's view of the deposit.
It is the view of the Competent Person that the outcomes of the feasibility study undertaken appropriately reflect the
nature and potential of the deposit to be developed, viable exploitation is considered feasible.
The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).
All Measured mineral resources have been converted to Proven ore reserves.
Audits or reviews
The results of any audits or reviews of Ore Reserve estimates.
Cameron Mining has done a review of the mining aspects of the project, focusing on scheduling and pit shell selection. For
processing purposes Randall Schiefeld and Russell Bradford have provided a general review, focusing first of them on heap
leaching and second on general structure of the project.
Discussion of relative accuracy/ confidence
Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach
or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical
procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the
estimate.
The confidence level is reflected in the resource classification category chosen for the reported OR.The definition of
current Ore Reserves is appropriate for the level of study and the geological confidence imparted by the drilling grid.The
reported OR is considered appropriate and representative of the grade and tonnage at the selected U3O8 cut-off grades.
The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages,
which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the
procedures used.
Minor amounts of inferred resources have been unavoidably included into the mine plan. These resources are mined late in
the mine life, an evaluation of the effect of these resources on the economic outcome of the project has demonstrated that
the effect is minor and does not affect the project outcome. The inferred resources have NOT been converted to ore
reserves.
Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a
material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study
stage.
It is considered that all modifying factors applied to generate the ore reserve estimates have been developed to a level of
accuracy required to support a feasibility study.
It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy
and confidence of the estimate should be compared with production data, where available.
No production has been carried out at Retortillo.
JORC Code, 2012 Edition - Table 1 Report (Alameda)
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Sampling techniques Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. The Alameda deposit was sampled using Diamond Drill (DD) and Reverse Circulation (RC) holes on a spacing varying between 50m x 50m and 35m x 35m. A total of 438 DD holes
for 43,305m and 87 RC holes for 6,534m were drilled. Most holes were vertical.Berkeley drilled 47 of the DD holes for 4,327m. The DD core was sampled using 1m intervals
in the mineralised zones, allowing for 2m of internal low grade or waste. In addition, the sampling was extended 3-5m up and down hole from the interpreted mineralised
zone. Whole core was used for sampling. Berkeley drilled all of the RC holes. The RC drill samples are collected over 1m intervals and split on site to provide an
approximately 3-5kg sample using a riffle splitter or cone and quarter method. Field tests show that these methods produce representative samples. Junta de Energía
Nuclear (JEN) and Empresa Nacional de Uranio (ENUSA) drilled 391 of the DD holes for 38,978m. The DD core was sampled using 0.2m to 2m intervals in the mineralised zones,
with 0.2m and 0.25m intervals being the most frequent sample length.An unknown number of Roto Percussion open holes (RP) were also drilled by JEN and ENUSA. These RP
holes were not used in the resource estimation process and accordingly, are not discussed further in this Table 1 Report.
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Berkeley sampling protocols include the insertion of standards and blanks into the sample stream to assess the accuracy, precision and methodology of the external
laboratories used. In addition, field duplicate samples are inserted to assess the variability of the uranium mineralisation. 15-20% of samples were for quality control
purposes. The laboratories undertake duplicate sampling as part of their internal Quality Assurance/Quality Control (QA/QC) processes. Analysis of the QA/QC sample data
indicates satisfactory performance of both the field sampling protocols and assay laboratories procedures, indicating acceptable levels of precision and accuracy.Berkeley
drill hole collar locations were surveyed by qualified surveyors (Cubica Ingeniería Metrica, S.L.) using differential global positioning system (DGPS) equipment achieving
sub decimetre accuracy in horizontal and vertical position. Down-hole surveys were undertaken using a Geovista down-hole deviation probe. Measurements are taken every 1cm
down hole and averaged every 10m. No strongly magnetic rocks are present within the deposit which may affect magnetic based readings. JEN and ENUSA maps used local grid
coordinates which required transformation and georeferencing. Historic collar coordinates were extracted from the referenced maps and transformed to UTM coordinates.
Berkeley re-assigned the elevation to each collar.All of the Berkeley drill holes were logged with a down-hole GeoVista total count gamma tool. The probe was sent to
Borehole Wireline Pty. Ltd. in South Australia for annual recalibration in the Adelaide-model test pits. Calibration includes the determination of k-factor, deadtime,
bore hole diameter and fluid corrections, which are reported in the "Primary Probe Calibration" document. All parameters are then applied during the in-house equivalent
grade (eU3O8) calculation process.JEN and ENUSA QA/QC protocols are unknown.
Aspects of the determination of mineralisation that are Material to the 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. Berkeley RC drill samples are collected over 1m intervals and split on site using cone and quarter method to provide an approximate 3-5kg field sample.Scintillometer
measurements were taken on all Berkeley RC samples and this data was then used to select the samples to be sent to external laboratories for sample preparation and
analysis. Mineralised intervals determined from scintillometer values greater than 150cps were extended up and down hole by at least 2-5m to ensure adequate definition of
waste boundaries. Field samples were split in the core shed using a riffle splitter to 0.7-1kg and sent to ALS laboratories for preparation (Seville, Spain) and analysis
(Vancouver, Canada). Samples were dried, crushed down to 70% below 2mm and pulverised with at least 85% of the sample passing 75µm. 10g of sample was used for uranium
analysis by pressed powder X-ray fluorescence (XRF) method. JEN and ENUSA core samples were prepared in internal company laboratories and assayed for uranium using XRF,
Atomic absorption spectroscopy (AAS) or fluorometric methods. The JEN and ENUSA assay data represents 31% of the total assay database.
Drilling techniques Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). Berkeley drilling comprised both DD (HQ and PQ) and RC drilling using a 140mm diameter face sampling hammer. For angled DD, oriented core was achieved usinga plasticine
method.The historical JEN and ENUSA drilling comprised NQ and HQ sized DD holes. Historical drilling accounts for approximately 78% of the total drill metres.
Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Berkeley, JEN and ENUSA DD typically recorded overall core recoveries in excess of 90%, which is considered acceptable.Berkeley RC drill samples are collected over 1m
intervals through a cyclone. Plastic sample bags are strapped to the cyclone to maximise sample recovery. Individual sample bags were not weighed to assess sample
recovery but a visual inspection was made by the Company geologist to ensure all samples are of approximately equivalent volume.
Measures taken to maximise sample recovery and ensure representative nature of the samples. The DD drilling rigs used face discharge bits to ensure a low contact between the rock and drilling fluids, minimising ore washing. Whole core was sent for analysis.The
RC drilling rigs utilised suitably sized compressors to ensure dry samples where possible. Plastic sample bags were strapped to the cyclone to maximise sample recovery.
Sample logs record whether the sample was dry, moist or wet.Wet samples account for approximately 10-15% and typically correspond to the last 5-10m of the affected holes.
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. Due to potential solubility and mobility of the uranium minerals, the use of water in core recovery in DD is controlled. The core and RC sample recoveries are of an
acceptable level and no bias is expected from any sample losses.
Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Berkeley geological logging of DD core included recording descriptions of lithology, geological period, colour, oxidation, mineralisation style, alteration, weathering,
structure, texture, grain size and mineralogy.Berkeley geotechnical logging of DD core included recording descriptions of integrity (recovery and RQD), materials
(lithology, rock strength and depth oxide staining), structures (type, angle, contact type, infill, weathering)Berkeley structural logging of DD core included recording
descriptions of structure type, structural angles, contact type, infill, line type and slip direction.Berkeley alteration logging of DD core included recording
descriptions of metamorphic textures, alteration mineralogy and mineralisation style.Berkeley geological logging of RC chip samples included recording descriptions of
lithology, weathering, alteration and mineralisation. A scintillometer reading of counts per second (cps) was recorded for each 1m sample (quantitative).JEN geological
loggingincludes recording descriptions of lithology, iron oxides, sulphides, uranium mineralogy fracturing and no recovering zones.ENUSA geological logging includes
recording descriptions of lithology, colour, fracturing level, recovery, mineralogy, radiometry and water table.
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. Geological logging is qualitative in nature. Berkeley DD core boxes and samples and RC samples and chip trays were photographed. JEN and ENUSA did not take photographs of
drill core or chip trays.
The total length and percentage of the relevant intersections logged. All DD and RC drill holes were logged in full by geologists employed by the relevant companies.
Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. Berkeley DD core was sampled using 0.5m intervals in the mineralised zones, including areas of internal low grade or waste. In addition, the sampling was extended 3-5m up
and down hole from the interpreted mineralised zone. Whole core was used for sampling. JEN and ENUSA DD core was sampled using 0.1m to 0.4m intervals in the mineralised
zones, with 0.2m and 0.25m intervals being the most frequent sample length.Whole core was used for sampling.
If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. Berkeley RC drill samples were collected at 1m intervals. RC intervals were sampled by splitting dry samples in the field to 3-5kg using either a riffle splitter or cone
and quarter method and further split in the core shed to 0.7-1kg using a riffle splitter. Where samples were wet they were dried prior to splitting. In rare cases, wet
samples were split using a cone and quarter method.
For all sample types, the nature, quality and appropriateness of the sample preparation technique. Berkeley samples were sent to ALS laboratories for preparation and analysis. Samples were dried, fine crushed down to 70% below 2mm, split to obtain 250g and pulverised
with at least 85% of the sample passing 75µm. 10g of sample was used for uranium analysis by pressed powder XRF method.JEN and ENUSA core samples were prepared and
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