REG - Berkeley Energia - DFS confirms Salamanca as a low cost producer <Origin Href="QuoteRef">BKY.AX</Origin> - Part 8
14/07/2016 07:46
- Part 8: For the preceding part double click ID:nRSN1376Eg
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 125ppm U3O8 cut-off grade.
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 Zona 7.
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:
At Zona 7 202 Ha are needed to develop the project. A total of 15.4 Ha has already been purchased as part of the project
site and for changing with other landowners.
Any identified material naturally occurring risks.
N/A
The status of material legal agreements and marketing arrangements.
N/A
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.
The key authorisation aspects of the project comprise:- Mining and environmental: Exploitation Project submitted-
Water uses: Not initiated- Land use: Not initiated- Radiological protection: Not initiated
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 125ppm U3O8 cut-off grade.
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 Zona 7.
JORC Code, 2012 Edition - Table 1 Report (Retortillo)
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 Retortillo deposits were sampled using Diamond Drill (DD), Open Hole (OH) and Reverse Circulation (RC) holes on a spacing varying between 50m x 50m and 35m x 35m. A
total of 396 DD, 63 OH and 646 RC holes for 74,099m were drilled. Most holes were vertical.Berkeley DD core was sampled using 0.3-2.5m 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. Half or quarter core
was used for sampling. Berkeley RC drill samples are collected over 1m intervals and split on site using two riffle splitters in cascade to provide an approximately 3-5kg
sample. In rare cases, wet samples are split using a cone and quarter method. Field tests show that both methods produce representative samples. Junta de Energía Nuclear
(JEN) and Empresa Nacional de Uranio (ENUSA) DD core was sampled using 0.25m, 0.50m and 1m intervals in the mineralised zones, with 0.25m intervals being the most
frequent sample length.ENUSA RC drill samples were collected over 1m intervals. Splitting method is unknown.
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.Berkeley owns two down-hole gamma probes. Both probes are 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 (previous campaigns) or two riffle splitters in cascade (2014
campaign) 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 and AGQ laboratories for preparation (Seville, Spain) and analysis (Loughrea, Ireland and 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. During 2006 to
2008 samples were sent to Actlabs Canada for Delayed Neutron Counting (DNC) analysis. Since 2008 ALS laboratories with pressed powder XRF analysis have been used. The
percentage of samples analysed at ActLabs and ALS is 22% to 43% of the total assay database respectively. 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 35% 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 RC drilling using a 140mm diameter face sampling hammer. For angled DD, oriented core was achieved usinga plasticine method
(previous campaigns) and DeviCore measurements (2014 campaign).The historical JEN and ENUSA drilling comprised both DD (NQ) and RC drilling using a 114mm diameter face
sampling hammer. Historical drilling accounts for approximately 25% of the total drilling.
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.ENUSA RC drill sample collection method is
unknown.
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. Core was cut using a water lubricated
diamond saw with care taken to ensure minimal ore loss.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, Fe 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 0.3-2.5m intervals in the mineralised zones, including areas of internal low grade or waste. The majority of samples were 1m in length
(60%), with 33% being greater than 1m in length and 7% less than 1m in length. In addition, the sampling was extended 3-5m up and down hole from the interpreted
mineralised zone. Half or quarter core was used for sampling, with the majority (~74%) being quarter core.JEN and ENUSA DD core was
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