REG - Berkeley Energia - DFS confirms Salamanca as a low cost producer <Origin Href="QuoteRef">BKY.AX</Origin> - Part 17

Berkeley EnergiaAnnouncement

14/07/2016 07:55

- Part 17: For the preceding part double click  ID:nRSN1376Ep 

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               surface rehabilitated as per the existing profile and vegetation.                                                                                                         
 Bulk density                                 Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.                                                                                                                                                                                                                                                                                                                                                                                                                                                      Bulk density values were derived from 980 core density measurements.The in-situ dry bulk density values are: ·      Surface cover: 2.40g/cm3·      Oxidised: 2.52g/cm3·    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Partially oxidised: 2.70g/cm3·      Fresh rock: 2.75g/cm3                                                                                                               
                                              The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.                                                                                                                                                                                                                                                                                                                                                                                                                                                           Fresh and partially oxidised rock is competent enough to ensure the method used takes into account any rock porosity. A factor derived from comparison with DD core was   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            used to adjust the oxidised and surface cover material.                                                                                                                   
                                              Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     The density measurements have been classified by weathering intensity, defined by the geological logging. Four dominant zones have been identified - surface cover,       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            oxidised, partially oxidised, and fresh rock. The average of the density data from each zone was applied in the resource model.                                           
 Classification                               The basis for the classification of the Mineral Resources into varying confidence categories.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 The reported MRE has been classified as Indicated or Inferred after consideration of the following:·      Adequate geological evidence and drill hole sampling is         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            available to imply geological and grade continuity.·      Adequate in-situ dry bulk density data is available to estimate appropriate tonnage factors.·      Adequate     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            mining, metallurgy and processing knowledge to imply potential prospect for eventual economic extraction.                                                                 
                                              Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).                                                                                                                                                                                                                                                                                                                                                                                                                    The reported MRE has been classified with consideration of the quality and reliability of the raw data, the confidence of the geological interpretation, the number and   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            spacing of intercepts through the mineralised zones and knowledge of grade continuity gained from observation and geostatistical analysis.                                
                                              Whether the result appropriately reflects the Competent Person's view of the deposit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         The reported MRE and its classification are consistent with the CP's view of the deposit. The CP was responsible for determining the resource classification.             
 Audits or reviews                            The results of any audits or reviews of Mineral Resource estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           An external review was undertaken by AMC Consultants on the MRE reported in December 2011. The review concluded that the estimate was considered to reflect the           
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            understanding of the geology and grade continuity. Craig Gwatkin (CP) also concluded that the estimates appropriately represented the grade and tonnage distribution of   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            uranium mineralisation at confidence levels commensurate with the reported resource classification.                                                                       
 Discussion of relative accuracy/ confidence  Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource 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 resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.                                                                                                                                                        The confidence level is reflected in the resource classification category chosen for the reported MRE.The definition of current Mineral Resources is appropriate for the  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            level of study and the geological confidence imparted by the drilling grid.The reported MRE is considered appropriate and representative of the grade and tonnage at the  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            200ppm U3O8 cut-off grade. The application of geostatistical methods has helped to increase the confidence of the model and quantify the relative accuracy of the resource 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            on a global scale. It relies on historical data being of similar standard as recent infill drilling. The relevant tonnages and grade are variable on a local scale.The    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            nature of the mineralisation and the relatively high nugget effect may result in local grade estimates being lower confidence, with smoothing of the grade tonnage        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            distribution at cut-off grades above 200ppm U3O8.The CP considers that the drilling grid in the area is sufficient for classification of an Indicated and Inferred Mineral 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Resource.                                                                                                                                                                 
                                              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.                                                                                                                                                                                                                                                                                                                                                                                                               The Alameda deposit is likely to have local variability. The global assessment is an indication of the average tonnages and grade estimate for each geological domain.    
                                              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 Alameda.                                                                                                                            
 
 
The Alameda deposit is likely to have local variability. The global assessment is an indication of the average tonnages and
grade estimate for each geological domain. 
 
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 Alameda. 
 
Section 4 Estimation and Reporting of Ore Reserves 
 
(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.) 
 
 Mineral Resource estimate for conversion to Ore Reserves  Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve.                                                                                                                                                                                                                                                                                                                                                                                                                 A mineral resource has been estimated using block modelling techniques as describes in Section 3 of Table 1.  A block model of  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              10x10x6 m has been created and the resource estimated using Ordinary Krigging and Uniform Conditioning. Alameda Mineral Resource 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              at 90 ppm mining cut off                                                                                                        
                                                           Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.                                                                                                                                                                                                                                                                                                                                                                                                 The mineral resource estimate is inclusive of any ore reserves                                                                  
 Site visits                                               Comment on any site visits undertaken by the Competent Person and the outcome of those visits.                                                                                                                                                                                                                                                                                                                                                                                                                     Site visits took place from 9th to 12th of November 2015. The following inspections were made:·      The site of the pit·       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              The site of the proposed dump sites·      The site of the proposed plant site including the ore stockpile·      The core yard   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              where cores were inspected·      The access to the site and existing infrastructure around the site.No material issues that are 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              likely to prevent the establishment of mining and processing activities at the site were identified during the site visit.      
                                                           If no site visits have been undertaken indicate why this is the case.                                                                                                                                                                                                                                                                                                                                                                                                                                              Site visits have been undertaken.                                                                                               
 Study Status                                              The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves.                                                                                                                                                                                                                                                                                                                                                                                                                The level of study is Definitive Feasibility Study. Only measured and indicated resources have been considered in the           
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              declaration of ore reserves                                                                                                     
                                                           The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered.                                                                                                                                                                            All factors required to convert Resources to Reserves have been considered including capital and operating costs, selling       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              prices, geotechnical conditions, metallurgical recoveries and reagent consumptions, environmental and social constrains, etc.   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              These factors were used to determine the optimum economic pit shell (using Whittle optimization software). The optimal pit shell 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              was used as the basis to design an open pit that considers slope angles, ramps and berms in the different sectors of the pit.   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              The reserves reported are within the final pit design.  The use of these factors has resulted in a technically and economically 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              viable plan.                                                                                                                    
 Cut-off parameters                                        The basis of the cut-off grade(s) or quality parameters applied                                                                                                                                                                                                                                                                                                                                                                                                                                                    Cut-off grade has been estimated using a combination of factors:·      Different selling price: from 45$/lb to 65$/lb·      Mine 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              costs derived from the analysis of 5 different proposals from mining contractors.·      Recoveries and acid consumption obtained 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              from metallurgical testwork done at Mintek (South Africa) for 6 m columns.·      Rehabilitation costs. The cut-off grade applied 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              is 90ppm                                                                                                                        
 Mining factors or assumptions                             The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design).                                                                                                                                                                                                                                                                    A mine design to definitive feasibility study levels of accuracy has been undertaken as the basis for the estimation of Ore     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Reserves.  This study has included:·      Exploration and sampling of the deposit·      Modelling and estimation of mineral     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              resources·      Mine design of an open pit including a pit optimization study·      Design of all dumps and stockpiles          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              required.·      Metallurgical testwork·      Metallurgical process and plant design·      Determination and design of all       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              infrastructure requirements·      Costing based on multiple quotes·      Financial evaluation by discounted cashflow analysis   
                                                           The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc.                                                                                                                                                                                                                                                                                                                                             The deposit is shallow (between 0 to 160m) and massive, the pre-strip is therefore low with a stripping ratio 1.08 (t to t). Due 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to the depth and geometry of the deposit, the selected mining method is Open Pit mining ensuring a good recovery of the deposit. 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Some of the pre-strip material will be used as construction material. Access to the pit will be by conventional open pit ramps, 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              25m in width that enables access for 100 t trucks.                                                                              
                                                           The assumptions made regarding geotechnical parameters (eg pit slopes, stope sizes, etc), grade control and pre-production drilling.                                                                                                                                                                                                                                                                                                                                                                               Geotechnical design parameters have been derived for the various material types encountered at the site based on core logging   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              and laboratory test work.  Open pit slopes have been divided into different design sectors and each of them has specific        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              conditions applied. Overall slope angles in the identified design sectors range from 43 degrees to 58 degrees. Grade control    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              will be done based on two main sources of data:·      Portable XRF on blast hole collected dust and rock chips·      Blast hole 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              chemical assay Routine XRF testing will provide the basic information for ore grade control in the ore. The cost for these      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              activities has been considered as part of the labour cost of the Berkeley technical services. The blast hole samples will be    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              collected as 6 m composites. Face mapping and geological logging are used to confirm the results. It has been assumed that 30%  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              of the total ore samples and 10% of the waste samples will be sent to the laboratory for the first year as part of a QA / QC    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              process for the gamma probing. After first year, only 10% of ore blast holes and 5% of waste blast holes will be collected for  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              chemical analysis.                                                                                                              
                                                           The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate).                                                                                                                                                                                                                                                                                                                                                                                                        A Pit optimisation study was undertaken the techno-economic data set used in this optimisation process were largely based on the 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              outcomes of the pre-feasibility study with the exception of the geotechnical parameters which were determine to DFS levels of   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              accuracy.                                                                                                                       
                                                           The mining dilution factors used.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Planned dilution of Alameda was applied through regularisation of the block model. The original resource model produced by CSA  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              was populated with minimum block sizes of 5x5x1.5. The block model was then regularised to 10x10x6 to account for the selective 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              mining unit. As a larger selective mining unit was applied to the Alameda model, lower dilution and mining recovery factors were 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              applied in comparison to the other deposits. An additional dilution of 1% and mining recovery of 99% were applied to account for 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              unplanned dilution due to blast movement, mixing of ore and waste and mining angles.                                            
                                                           The mining recovery factors used.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Mining recovery factor used is 99%                                                                                              
                                                           Any minimum mining widths used.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    SMU is 10x10x6m, minimum with for mining is established in 30m                                                                  
                                                           The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion.                                                                                                                                                                                                                                                                                                                                                                               No Inferred material is used in the study, all reserves estimated are based on measured and indicated resources.                
                                                           The infrastructure requirements of the selected mining methods.                                                                                                                                                                                                                                                                                                                                                                                                                                                    The infrastructure required is minimum: access by road, power and water.  The mining infrastructure cluster will be provided by 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              the selected mining contractor.  A metallurgical process plant will be constructed.                                             
 Metallurgical factors or assumptions                      The metallurgical process proposed and the appropriateness of that process to the style of mineralisation.                                                                                                                                                                                                                                                                                                                                                                                                         The heap leach process is proposed followed by ion exchange (IX). Loaded resin will be then trucked to the Retortillo plant     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              where the resins will be eluted and the eluated incorporated into the 

- More to follow, for following part double click  ID:nRSN1376Er