REG - Caerus Mineral Res. Bezant Resources PLC - Maiden Troulli Mineral Resource Estimate
06/04/2022 07:00
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RNS Number : 3944H Caerus Mineral Resources PLC 06 April 2022
06 April 2022
Caerus Mineral Resources PLC ("Caerus") & Bezant Resources
PLC ("Bezant")
Maiden Mineral Resource Estimate for the Troulli Au and Cu Project, Cyprus
Caerus Mineral Resources (LON: CMRS) and Bezant Resources (AIM: BZT), the
exploration and resource development companies (the "Companies") with a Joint
Venture ("JV") focused on the Troulli Mine Development Project and other
copper-gold JV targets in Cyprus, are pleased to announce the results of an
independent Initial Mineral Resource Estimate, reported in accordance with
JORC (2012), in respect of the Troulli Cu-Au project ("Troulli" or the
"Troulli Project").
Highlights:
· Independent Indicated and Inferred Mineral Resources Estimates
for Troulli, reported in accordance with JORC (2012) prepared by Addison
Mining Services Limited ("AMS"). The input databases for the waste dumps and
hard rock estimates included:
o 72 diamond and open hole percussion drillholes, totalling 3,393.30 metres.
o 208 trench channels for 692.17 metres.
· At a selected cut-off grade of 0.5% Cu, a hard rock resource
estimate of approximately 2.7 million tonnes at a Cu equivalent grade of 0.74%
CuEq (0.51% Cu and 0.26 g/t Au) has been established
· A Total Hard rock resource estimate of approximately 4.9 million
tonnes at 0.41% Cu and 0.2 g/t Au for 20,000 t of Cu metal and 31,000 ounces
of Au, from a cut-off grade of 0.26% Cu equivalent.
· The Hard Rock Estimate is comprised of:
o Indicated Gossan Resources of 260,000 tonnes at 0.18% Cu and 0.91 g/t Au
for 460 t of Cu and 7,700 ounces of Au.
o Inferred Gossan Resources of 180,000 tonnes at 0.14% Cu and 0.47 g/t Au
for 260 t of Cu and 2,800 ounces.
o Inferred Breccia Resources of 4.4 million tonnes at 0.43% Cu and 0.14 g/t
Au for 19,000 t of Cu and 21,000 oz of Au.
· Inferred waste and tailings dump resources of approximately
93,000 tonnes at 0.76% Cu and 0.12 g/t Au for 710 tonnes of Cu and 360 oz of
Au.
Outlook
The Companies will focus on a number of priorities including the upgrading and
expansion of the mineral resource, completion of metallurgical test work,
environmental baseline studies and the Environmental and Social Impact
Assessment, continuing development of a mine plan and, submission of a Mining
Licence application. Specifically, the near-term programme will include:
Continued resource development and the further expansion of the larger Troulli
deposit with the on-going drilling and evaluation of multiple copper and
gold-bearing gossans occurring within a 1km radius of the Troulli deposit that
have been partially drilled and sampled by Caerus in the past few months.
The drilling of high-grade mineralisation at the Anglisides satellite Project,
already broadly defined by Caerus drilling, with a view to the future delivery
of this feedstock to the Troulli processing plant for extraction of both
copper and gold.
Further work will be undertaken to evaluate the Kokkinopetra Project, located
1.5km from Troulli and within an acceptable haul distance for any payable
mineralisation that may be defined.
In parallel with the expansion of the resource, Caerus plans, with guidance
from external independent consultant, AMS, to complete infill drilling to
upgrade the recently announced mineral resource. This work plan will also
include drilling of presumed extensions to mineralisation identified during
the current drill programme and include;
· Providing AMS with the results of metallurgical test work being
undertaken by Jubilee Metals Group as part of the process of upgrading the
mineral resource.
· Completing the ongoing Environmental baseline study and the
Environmental and Social Impact Assessment being undertaken by an independent
Cypriot-based consulting group.
· Beginning the process of mine design and planning based on
feedback from both Jubilee Metals Group Plc and the environmental consulting
group.
· Completing the submission of a Mining Licence application.
Martyn Churchouse, CEO of Caerus Minerals, commented: "We are delighted with
the Maiden mineral resource estimate for Troulli that provides the Joint
Venture with the foundation for the continued expansion of the resource as we
drill out other known targets located along the 1.5km strike length between
Troulli and Kokkinopetra.
This is a significant step along the road to becoming a producer with the
future development of Troulli potentially being our first revenue event. With
Bezant now committing to mine design, we are able to move to the next stage in
the metallurgical test work and plant configuration process. Once we have
guidance on likely annual plant capacity we will be able to marry resource
tonnes to throughput and start the process of optimisation and providing
detail of targeted metal production.
Early indications from metallurgical test work suggest that the lower grade
hard rock resource, that below the 0.5% CuEq cut-off may be amenable to
low-cost heap leaching adding significantly to the Total hard rock resource by
a further 2.5 million tonnes.
The Exploration Team have identified possible extensions to the current
mineral resource and these will be drilled out along with the focused
targeting of copper - gold gossans that we have already drill-tested and
therefore have a high degree of confidence in our ability to define further
resources.
The parallel drill programme at the Anglisides satellite project has the
potential to deliver easily accessible high-grade feed for any future Troulli
plant that can extend the life of the operation.
I would like to thank the Exploration Team for their hard work and dedication
in completing the release of a Maiden resource within 9 months of acquisition
of the licence and also, AMS for their excellent and highly professional
approach in the generation of the resource"
Colin Bird, Executive Chairman of Bezant Resources, further commented: "This
is a very encouraging start and provides a good foundation for the expansion
of the Mineral Resource as we start to include extensions to the
mineralization and the area between Troulli and Kokkinopetra. On the back of
these Maiden Resource figures we are pleased to announce that we are preparing
to commence mine design in parallel with the on-going metallurgical test work.
We look forward to the next round of drilling starting in a few weeks' time
and the steady growth of the Mineral Resource as we work towards the
development of a new mining venture in Cyprus."
Overview
Caerus Minerals is pleased to announce the results of an independent Mineral
Resource Estimate, reported in accordance with JORC (2012), for Troulli
prepared by independent consultant Addison Mining Services Limited ("AMS").
This Mineral Resource Estimate, effective as of 22(nd) March 2022 for the
Troulli deposit comprises:
· A Total Hard rock resource estimate of approximately 4.9 million
tonnes at 0.41% Cu and 0.2 g/t Au for 20,000 t of Cu metal and 31,000 ounces
of Au, including.
o Indicated Gossan Resources of 260,000 tonnes at 0.18% Cu and 0.91 g/t Au
for 460 t of Cu and 7,700 ounces of Au.
o Inferred Gossan Resources of 180,000 tonnes at 0.14% Cu and 0.47 g/t Au
for 260 t of Cu and 2,800 ounces.
o Inferred Breccia Resources of 4.4 million tonnes at 0.43% Cu and 0.14 g/t
Au for 19,000 t of Cu and 21,000 oz of Au.
· Inferred waste and tailings dump resources of approximately
93,000 tonnes at 0.76% Cu and 0.12 g/t Au for 710 tonnes of Cu and 360 oz of
Au. …
Competent Person's Indicated and Inferred Mineral Resource Estimate, Reported
in Accordance with the JORC Code (2012 edition)
Further to the drilling conducted in 2021 and 2022, the Company commissioned
AMS to complete an independent Mineral Resource Estimate. The Mineral Resource
Estimate is based on all the available data from the waste dumps and hard rock
area collected up to the 22(nd) of March 2022. Assay results for copper and
silver are pending for 15 drillholes.
The Mineral Resource Estimate has been reported in accordance with the Joint
Ore Reserve Committee (JORC) code, 2012 edition.
Summary of Resource Estimate and Reporting Criteria
In accordance with the JORC code (2012), a summary of the material information
used to estimate the updated Mineral Resource Estimate is set out below (for
further detail please refer to the JORC (2012) Table 1, set out in the
Appendix to this announcement).
Geology and Geological Interpretation
The geology of the two prospect areas at Troulli are described as follows:
The waste dumps constitute a heterogenous mixture of mineralised mine waste
and ROM that has been deposited erratically during mine operations throughout
the 1960s and 1970s.The material is a mixture of clay, sands and poorly sorted
rock, ranging in size from cobbles to boulders. The material consist of two
dominant horizons, the "A" and "B" horizons, the "B" horizon is a thin
(typically 30 -50 cm) horizon containing supergene enriched copper which
underlies the "A" horizon.
The hard rock area is comprised of volcanic rocks of the Troulli Inlier and
identified as belonging to the Basal Group (BG), Lower Pillow Lavas and Upper
Pillow Lavas.
The BG are the oldest rocks outcropping in the Troulli Inlier and are
typically identified by an assemblage of visible or microscopic epidote,
quartz, chlorite and the presence of Fe and Cu minerals including accessory
pyrite. BG rocks generally resist erosion due to their pervasive
silicification. Volcanic breccias are also widespread throughout the BG.
The Lower Pillow Lavas (LPL) typically have a dark brown to khaki colour with
celadonite commonly forming coatings. Pillow rims are typically glassy, and
quartz may form amygdales. The LPL are largely missing from the stratigraphic
succession mapped around Troulli Mine-Kokkinopetra area.
The Upper Pillow Lavas (UPL) cover approximately 70% of the Troulli Inlier.
They typically have a pink to light-grey colour, with olivine pseudomorphs,
fresh green diopside, abundant calcite fracture fill and amygdales, and
zeolites including analcime. Spaces between pillows in the UPL are often
filled with a mixture of red calcareous sediments and umbriferous material.
The UPL includes pillowed lavas, non-pillowed lava flows, interbedded tuffs
and sediments, fine grained basaltic dykes and microgabbroic quartz-basaltic
dykes.
Gossans, formed due to the oxidation of sulphide material and resultant acid
generation, are recorded occurring across the Troulli Inlier, including: the
Eastern Gossan Hill (directly to the south of the Troulli Mine pit); the
gossan at Kokkinopetra; small gossans at Mavromoutti (300m east of Troulli
Mine); and at Kokkinomoutti.
Drilling Techniques and Hole Spacing
The Mineral Resource Estimates includes information from 72 diamond and open
hole percussion drillholes, totalling 3,393.30 metres and 208 trench channels
for 692.17 metres.
Drill core diameter was PQ and HQ, depending upon depth. Double tube type was
used for the diamond drilling. Some of the diamond core has been orientated.
The open hole percussion drilling used a drill bit size of 20 cm / 8 inches.
Drilling within the hard rock area ranges from approximately 15-15 m x 30x30 m
centres within the most densely tested area situated in the central area with
several step-out put holes designed to explore for further mineralisation.
The dump areas have channel samples every 5 m along an excavated trench with a
total of 11 trenches. The trenches are centred between 15 and 40 m apart.
The distribution of drillholes within the hard rock area is sufficient to
establish the degree of geological and grade continuity appropriate for
classification of Inferred and Indicated resources as defined by the JORC
(2012) code.
The distribution of trench channel sampling within the dumps area is
sufficient to establish the degree of geological and grade continuity
appropriate for a JORC (2012) Inferred classification of resources.
Sampling and Sub-Sampling Techniques
Within the hard rock area, diamond drill core and percussion chips were used
to obtain samples for geological logging and sampling. Diamond drilling
geological and analytical data is recorded into excel, with recovery and RQD
data recorded on paper at the drill site. Percussion chips were logged on
paper at the drill site.
The whole drillhole is routinely sampled and intervals measure approximately 1
m, half core in the diamond holes and percussion riffle splits for two metres.
Samples typically weigh between approximately 0.5-3kg, with half core and chip
sub-samples retained for reference.
Trench channel samples within the dumps, were vertical channels, cut into the
wall of an excavated trench (revealing the various dump horizons). Samples
were dictated by the horizons and were generally a metre in length. The
channel was around 10 cm in width, 5 cm in depth and weighed between 3-5 kg
per sample. Geological and sample data was recorded on hard copy and later
digitised.
Samples were sent to ALS Seville or SGS Ankara for preparation and
multi-element analysis by ICP and Au by FA. Half core, percussion and channel
samples were reduced to -75um and 50g sub-samples taken for analysis.
QC samples were regularly inserted into the diamond and trench sample stream.
QC samples consisted of CRMs, blank material and ¼ core field duplicates.
There were no QC samples inserted into the percussion drillholes sample
stream. However, subsequent riffle split duplicates have shown acceptable
repeatability.
Diamond Core Recovery
A total of 1,912 diamond core recovery measurements exists in the database for
the drilling with average core recovery of 97%. Core recovery is measured over
run lengths.
Estimation Methodology
The database for use as input for mineral resource modelling and estimation
has been validated and verified by AMS. Micromine 2022 3D geological modelling
and estimation software was used for import, validation and QC verification
assessment, 3D solid modelling, geostatistics and block model interpolation,
grade estimation and block model reporting. Data checks include checks for
overlapping and missing intervals, drill hole trace errors, missing survey
data, lithology and collars.
Wireframe solid models were created for the hard rock and waste dump areas,
based on lithological contacts. The wireframes were generated using
Micromine's implicit modelling functionality. Interpretation of the
mineralised domains was guided by geological interpretation of the deposit
incorporating lithological boundaries. Separate Copper and Gold grade domain
shells representing mineralized and unmineralized material were created
withing the Gossan and Breccia.
The wireframes were used to restrict a block model of cell size 10 mE x 10 mN
x5 mZ in the hard rock area, based on drill spacing of ~15 m in parts of the
gossan, sub blocking was used to preserve domain boundaries before being
regularized to account for dilution. In the dump areas a block model with cell
size 5 mE x 5 mN and variable Z was used. Using ordinary kriging Cu, Au and Ag
values were interpolated on a domain-by-domain basis using incrementally
larger search radii.
The resource has identified potentially economic material from surface to
approximately five metres below surface within the dump areas and from surface
to approximately 150 metres below within the hard rock area.
Bulk Density
The resource database contains 436 bulk density measurements within the hard
rock area and 58 measurements within the dumps area. For the purpose of
Mineral Resource Estimation, the following default bulk density values were
assigned on a dry basis. Dump material was given a bulk density of 1.89
g/cm(3); mineralized gossan, 2.14 g/cm(3) and mineralized breccia, 2.36
g/cm(3). For a hard rock deposit the bulk density values are low, however the
gossan material is highly porous while the breccia is frequently subject to
intense argillic alteration. Further bulk density measurements are advised to
better understand the density of the different material types.
Classification Criteria
The Troulli deposit, has been classified as an Inferred and Indicated Mineral
Resource in accordance with JORC (2012) based on a combination of drill
spacing, geological confidence, grade continuity, and consideration of data
quality. Indicated resources were classified in the Gossan only where drill
spacing was completed on a ~15 m grid. Within the breccia further geological
understanding and infill drilling is required before Indicated resources are
warranted, all breccia material was classified as Inferred. All dump material
was classified as Inferred.
Reasonable Prospect of Eventual Economic Extraction
Based on the orientations, thickness and depths to which the deposit has been
modelled, open pit mining is the anticipated mining methodology. No pit
optimization has been used to constrain the Resource at this stage as
mineralization remains open laterally and use of pit optimization at this
stage is considered overly conservative.
In the absence of metallurgical testwork (which is ongoing) the following
parameters are assumed for all material types, for gold 95% recovery, 3%
refining reduction costs, and a base gold price of $1900/oz, for copper 85%
recovery and 5% smelter reductions, with a base copper price of $8000/t.
Combined processing and G&A costs are envisaged to be in the region of
$17/ROMt and mining by open pit in the region of $3. The following parameters
indicate a break even mill cut-off grade of approximately 0.25% Cu equivalent
or 0.3 g/t Gold equivalent, which seems reasonable for identifying material
which has a reasonable prospect of eventual economic extraction. Silver
credits are not considered in the cut-off determination and Ag is reported as
a by-product only.
It is anticipated that no grade control or selective mining will be employed
for the dump material which is reported as a global resource (no cut-off grade
applied).
Environmental and Social Considerations
No Protected sites have been identified within the project area. It should be
noted that the village of Troulloi is within less than 500 m of the mineral
resource area and this may represent a permitting risk. Since the original
granting of the historic Mining Lease at Troulli prior to the Turkish invasion
in 1974, the village of Troulli recognised the potential economic importance
of the mine to the local community. In recent years due to the close
proximity of the project to the village, the Council and local leaders took
the highly pragmatic and extraordinary measure of having the mine property
placed under the village jurisdiction so that it may have a voice in its
future development and share in the potential benefit that the project could
bring to the community. To the Company's knowledge, this is the only such
project in Cyprus whereby the Community has taken such a positive and
pragmatic approach to a potential future mine development.
Resource Estimate Results
The approximate tonnage, grade and contained metals reported in this Inferred
and Indicated Mineral Resource Estimates are presented in the following
tables. The following should be noted.
· Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
· Further exploration is required to convert Inferred Mineral
Resources into Indicated Mineral Resources, as the amount of data and
geological understanding increases the grade and tonnage of Mineral Resources
may increase or decrease.
· The effective data is 22(nd) March 2022.
· All Caerus drillholes have assays for Au, however multielement
(including Cu and Ag assays) remain outstanding for 15 drillholes, 12 of which
are within the Resource area and mainly within the breccia domain. Logging has
identified sulphides including chalcopyrite in these drillholes and it seems
reasonable to ignore these drillholes (treated as null) for the estimation of
Cu. Once outstanding assays are received the Resource models should be
updated. The additional data may serve to increase or decrease the tonnage and
grade of the mineral resource estimate.
· Values presented in the table below are generated at full
precision before being rounded to two significant figures to reflect the
Competent Persons view of the accuracy of the estimate. As such discrepancy
may be present between individual values and totals.
· Cu Equivalent (CuEq%) is used to determine material which has a
reasonable prospect of eventual economic extraction for hard rock material.
CuEq% = Cu%*0.871+Au g/t. It is the opinion of the Company and the Competent
Person that all elements included in the CuEq calculation (Cu and Au) have a
reasonable prospect of being recovered and sold.
Table 1: Hard Rock Mineral Resource Estimates.
Cut-off Tonnes CuEq % Cu Au g/t Ag g/t Cu Au (oz) Ag
CuEq % % (t) (oz)
Gossan
Indicated
0.50 210,000 1.1 0.20 1.1 6.3 410 7,100 42,000
0.40 230,000 1.1 0.19 1.0 6.3 440 7,300 46,000
0.30 260,000 0.99 0.18 0.93 6.3 460 7,700 52,000
0.26 260,000 0.97 0.18 0.91 6.2 460 7,700 53,000
Inferred
0.50 86,000 0.71 0.20 0.59 3.1 170 1,600 8,400
0.40 150,000 0.61 0.15 0.52 2.9 230 2,500 14,000
0.30 170,000 0.57 0.14 0.49 2.8 250 2,700 16,000
0.26 180,000 0.55 0.14 0.47 2.8 260 2,800 16,000
Breccia
Inferred
0.50 2,400,000 0.71 0.55 0.18 1.1 13,000 14,000 88,000
0.40 3,400,000 0.63 0.49 0.16 1.0 17,000 17,000 110,000
0.30 4,200,000 0.58 0.45 0.15 0.92 19,000 20,000 120,000
0.26 4,400,000 0.56 0.43 0.14 0.91 19,000 21,000 130,000
Total Hard Rock Indicated plus Inferred
0.50 2,700,000 0.74 0.51 0.26 1.6 14,000 22,000 140,000
0.40 3,800,000 0.65 0.46 0.22 1.4 17,000 27,000 170,000
0.30 4,600,000 0.60 0.42 0.20 1.3 20,000 30,000 190,000
0.26 4,900,000 0.58 0.41 0.20 1.3 20,000 31,000 200,000
Table 2: Tailings and dump material Inferred Resources, reported globally (no
cut-off grade applied).
Area/Horizon Tonnes Cu Au g/t Ag g/t Cu (t) Au (oz) Ag (oz)
%
Junction A 14,000 0.46 0.12 1.4 62 51 630
Main Zone A 45,000 0.4 0.13 1.1 180 190 1,500
Tailings A 14,000 0.21 0.17 1.4 30 79 630
Junction B 2,800 2.6 0 0 73 0 0
Main Zone B 11,000 2.9 0 0 320 0 0
Tailings B 6,000 0.6 0.17 0.98 36 32 190
Total Inferred 93,000 0.76 0.12 1.0 710 360 3,100
Supporting Images
Supporting images can be found at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/3944H_1-2022-4-5.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3944H_1-2022-4-5.pdf)
· Figure 1, overview map of exploration drilling and channel sampling,
with approximate surface expression of resources.
· Figure 2, example cross section of hard rock Cu resource.
· Figure 3, example cross section of hard rock Au resource.
Competent Person's Statement (Mineral Resources)
The Troulli resource estimate was prepared by Mr R. J. Siddle, MSc, MAIG
Senior Resource Geologist for Addison Mining Services Ltd. and Competent
Person. Mr. Siddle is an independent Competent Person within the meaning of
the JORC (2012) code. Mr. Siddle and has reviewed and verified the technical
information that forms the basis of, and has been used in the preparation of,
the Mineral Resource Estimate and this announcement, including analytical
data, diamond and percussion drill hole logs, QC data, density measurements,
and sampling. Mr. Siddle consents to the inclusion in this announcement of the
matters based on the information, in the form and context in which it appears.
Mr. Siddle has also reviewed and approved the technical information in his
capacity as a Competent Person as defined by the JORC code (2012).
For further information on the Company, please contact:
Caerus Mineral Resources plc Bezant Resources plc
Website www.caerusmineralresources.com (http://www.caerusmineralresources.com) www.bezantresources.com (http://www.bezantresources.com)
Company Contact Martyn Churchouse Colin Bird
Executive Chairman
Chief Executive Officer
info@bezantresources.com (mailto:info@bezantresources.com)
info@caerusmineralresources.com (mailto:info@caerusmineralresources.com) +44 (0)20 3416 3695
+44 (0)1249 782162
Broker Novum Securities Novum Securities
Jon Bellis Jon Bellis
+44 (0) 20 7399 9425 +44 (0) 20 7399 9400
Nominated Adviser Not applicable Beaumont Cornish
Roland Cornish
+44 (0) 20 7628 3396
About Caerus Mineral Resources: Caerus Mineral Resources is a European focused
copper-gold resource development and exploration company with a portfolio of
mineral exploration licences located in Cyprus. The Country has a
well-developed infrastructure and history of mineral exploration and
production, which has been dormant over the last 50 years and provides
significant undiscovered value and can be followed on Twitter at
@CaerusMineral.
About Bezant Resources: Bezant Resources is a focused on developing its
pipeline of copper gold projects to provide a new generation of economically
and socially sustainable mines and in addition to its joint venture with
Caerus Mineral Resources in relation to Cyprus has copper projects
in Namibia, Zambia, Philippines and Argentina and a manganese project
in Botswana.
Qualified Person: In accordance with AIM Note for Mining and Oil & Gas
Companies, June 2009 ("Guidance Note"), Colin Bird, CC.ENG, FIMMM, South
African and UK Certified Mine Manager and Director of Bezant Resources Plc,
with more than 40 years' experience mainly in hard rock mining, is the
qualified person as defined in the Guidance Note of the London Stock Exchange,
who has reviewed the technical information contained in this press release.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018.
Glossary of technical terms:
"Ag" silver;
"Au" gold
"AuEq" gold equivalent
"BG" basal Group, oldest rocks outcropping in the Troulloi Inlier
"Breccia" rock which has been fractured or broken insitue by processes in the earths
crust, including fracturing by hydrothermal fluids perculating the rock under
high pressure or by tectonic activity.
"CRM" Certified Reference Material; standards.
"Cu" copper
"CuEq" copper Equivalent
"Fe" iron
"g" grammes;
"Gossan" is intensely oxidized, weathered or decomposed rock, usually the upper and
exposed part of a mineral deposit. The weathering process can result in
enrichement of immobile metals and elements and depletion of mobile metals and
elements.
"g/t" grammes per tonne; equal to ppm
"ICP" inductively coupled plasma;
"Inferred resource" that part of a Mineral Resource for which quantity and grade (or quality) are
estimated on the basis of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological and grade (or
quality) continuity. It is based on exploration, sampling and testing
information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes;
"Indicated resource" that part of a Mineral Resource for which quantity, grade (or quality),
densities, shape and physical characteristics are estimated with sufficient
confidence to allow the application of Modifying Factors in sufficient detail
to support mine planning and evaluation of the economic viability of the
deposit.
"JORC" the Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves, as published by the Joint Ore Reserves Committee of The
Australasian Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia;
"JORC (2012)" the 2012 edition of the JORC code;
"km" kilometre
"LPL" Lower Pillow Lavas,
"m" metre;
"Mineral Resource" a concentration or occurrence of material of economic interest in or on the
earth's crust in such form and quantity that there are reasonable and
realistic prospects for eventual economic extraction. The location, quantity,
grade, continuity, and other geological characteristics of a Mineral Resource
are known, estimated from specific geological evidence and knowledge, or
interpreted from a well-constrained and portrayed geological model;
"Mt" million tonnes;
"oz" troy ounce;
"ppm" Parts per million, equal to g/t
"QA/QC" quality assurance/quality control
"ROM" Run of mine
"UPL" Upper Pillow Lavas
"Zn" zinc.
"%" percent
APPENDIX: Table 1 (JORC 2012)
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation AMS Commentary
Sampling techniques · Nature and quality of sampling (e.g. cut channels, random chips, or · Diamond and open hole percussion drilling has been completed in the
specific specialised industry standard measurement tools appropriate to the hard rock area in 2021/2022.
minerals under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad · Vertical trench channel sampling was employed in 2021/2022 around the
meaning of sampling. dump areas.
· Trench channels were 1 m in length, weighing approximately 3-5 kg.
· Drill core samples were half core with an average length of 1 m.
· Nature of sampling is appropriate for both styles of mineralisation.
· Handheld preliminary XRF instruments were used as a guide for
geologists throughout the trench sampling. No XRF data was used in the mineral
resource estimates.
· Include reference to measures taken to ensure sample representivity · Channel and drillhole sampling were supervised by Caerus geologists
and the appropriate calibration of any measurement tools or systems used and samples were constrained to lithological boundaries were possible.
· Efforts to ensure sample representativity for the drilling include:
o Always sampling the same side of the core, while leaving the orientation
line in place (where applicable).
o Large diameter drilling was used to try and obtain the most representative
sample possible.
o No specific measures to ensure representativity for the trench channel
samples were completed, other than sampling to horizons.
o Trench samples tried to include a representative mix of the various sizes
of material, i.e., clays, sands, pebbles, cobbles, and boulders.
· Aspects of the determination of mineralisation that are Material to · Caerus Minerals sent all percussion, diamond and trench samples to
the Public Report. ALS Seville or SGS Ankara for preparation and multi-element analysis by ICP
and gold by FA.
· ALS Seville and SGS Ankara are accredited and conforms with
ISO9001:2008.
· In cases where 'industry standard' work has been done this would be · Diamond drill core, percussion chips and trench channel sampling
relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m methods were used to obtain samples for geological logging and sampling.
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 · Trench logging was completed on hardcopy and transferred to Excel.
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (e.g. submarine nodules) may warrant disclosure of · Drill core logging is recorded digitally into Excel. Recovery and RQD
detailed information. data is recorded on paper at the drill site and later transferred to Excel.
· Percussion holes were logged on paper at the drill site and later
transferred to Excel.
· The entire trench channel and drillhole is routinely sampled.
· Drillhole sampling intervals measure approximately 1 m, half core
sent for analysis, with half core retained for reference.
· Percussion holes were riffle split composites of two metres, weighing
approximately 0.5-3 kg.
· Trench channels were generally 1 m in length, weighing approximately
3-5 kg.
· Diamond, percussion and trench samples sent to ALS Seville or SGS
Ankara for preparation and multi-element analysis by ICP and Au by FA.
· Half core, percussion chips and trench samples were dried, reduced to
-75 microns and 50g sub-sample taken for analysis.
Drilling techniques · Drill type (e.g. core, reverse circulation, open-hole hammer, rotary · A total of 72 diamond and open hole percussion drillholes, totalling
air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple 3,393.30 metres and 208 trench channels for 692.17 metres were used as the
or standard tube, depth of diamond tails, face-sampling bit or other type, input databases for geological modelling and resource estimation.
whether core is oriented and if so, by what method, etc).
· Drill core diameter was PQ and HQ, depending upon depth.
· Percussion hole diameter was 20cm / 8 inches.
· Standard tube was used for diamond drilling.
· Some angled diamond core was orientated using the reflex ACT III.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Total core recovery, Rock Quality Designation (RQD were recorded on
results assessed. hardcopy tables for the diamond drilling at the drill site.
· A total of 1,912 core recovery measurements exists in the database
for the drilling with average recovery of 97%. recovery is measured over run
lengths.
· A selection of recoveries were verified by AMS on the site visits.
· Measures taken to maximise sample recovery and ensure representative · Sample recovery is 97%. However, efforts to maximise sample recovery
nature of the samples. for the drilling include:
o Slowing drill rate in areas of broken ground,
o Reducing run lengths in areas of broken ground.
o Use of specific drilling fluids (stabilised slurries) in broken ground
areas.
· Whether a relationship exists between sample recovery and grade and · Au and Cu grades were plotted in scattergrams against recovery
whether sample bias may have occurred due to preferential loss/gain of data and no obvious relationship appeared.
fine/coarse material.
· Additional work is required to ensure that there is no sample
bias.
Logging · Whether core and chip samples have been geologically and · Core logging was recorded directly into Excel, using templates
geotechnically logged to a level of detail to support appropriate Mineral provided by AMS.
Resource estimation, mining studies and metallurgical studies.
· Standard Operating Procedures were provided by Wardell Armstrong and
have been reviewed by AMS.
· Logging records lithology, textures, mineralisation, weathering,
alteration and veining where appropriate.
· Geotechnical and geological data for the drill holes has been
reviewed and verified during the site visits.
· The core and channel logging has been completed to a sufficient level
of detail to support appropriate Mineral Resource Estimations.
· Whether logging is qualitative or quantitative in nature. Core (or · Drill core was qualitative and quantitative in nature.
costean, channel, etc) photography.
· DH lithology, alteration, mineralisation and structural observations
were recorded by variable interval based on characteristic similarities and
change boundaries.
· Summary interval information was inputted to Excel, comprising code
field and codes to describe logged lithology, alteration, mineralisation and
major structure for the interval.
· Core is routinely photographed.
· Channel sample logging was qualitative and quantitative in nature and
not photographed.
· Channel samples identified the horizons and cursory observations were
appropriate.
· The total length and percentage of the relevant intersections logged. · All drill core and percussion chips were logged in their entirety.
· Dump channel samples were logged in their entirety.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · Core was cut in half using a core saw. And percussion chips were
taken. split.
· Field duplicates are quarter core or riffle spilt.
· Trench channels were excavated using a geological hammer. A channel
approximately 10 cm wide and 5 cm deep was excavated in the wall of a trench
to obtain a 3-5 kg sample.
· All sampling was supervised by a Company geologist.
· If non-core, whether riffled, tube sampled, rotary split, etc and · Channel samples were not split. They were sent to ALS Seville as 3-5
whether sampled wet or dry. kg samples.
· Percussion samples were riffle split at the rig and were generally
dry when split.
· For all sample types, the nature, quality and appropriateness of the · Channel samples and drilling procedures, sample size, preparation and
sample preparation technique. analysis are considered appropriate for the mineralogy and deposit type and
are sufficient for use in mineral resource estimation.
· Quality control procedures adopted for all sub-sampling stages to · All half core was taken on the left side.
maximise representivity of samples.
· Samples were constrained by lithology but were 1 m in length where
possible or divided equally where necessary.
· No quality control procedures for representivity were employed as
part of the trench channel sampling.
· Measures taken to ensure that the sampling is representative of the · Field duplicate scattergram analysis of the diamond drilling,
in situ material collected, including for instance results for field percussion drilling and trench sampling samples shows a moderate to good
duplicate/second-half sampling. correlation between the original and duplicate gold samples.
· Whether sample sizes are appropriate to the grain size of the · Sample size is considered appropriate for the style of mineralization
material being sampled. and grain size.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · Commercial laboratories ALS Seville and SGS Ankara (ISO9001:2008)
laboratory procedures used and whether the technique is considered partial or were used for drill chips, core and trench sampling.
total.
· Both laboratories were used due to the long turnaround times for
analysis.
· Multi-element analysis, including Pb, Zn, Cu, Ag by ICP-MS were
completed on all samples.
· Au was completed by 50g FA.
· Over limits samples were re-analysed using ore grade methods of
determination.
· Sample analytical techniques are considered in line with industry
standard for this style of mineralisation.
· Given the expected grades, lithology and deposit type, the laboratory
procedures are considered appropriate for this level of classification.
· AMS would recommend acid soluble analysis on oxide copper samples.
· For geophysical tools, spectrometers, handheld XRF instruments, etc, · No geophysical tools or spectrometers were used in the exploration
the parameters used in determining the analysis including instrument make and and resource work.
model, reading times, calibrations factors applied and their derivation, etc.
· Handheld XRF instruments were used in the exploration for the
trenching.
· No XRF data has been used in the mineral resource estimate work.
· Nature of quality control procedures adopted (e.g. standards, blanks, · Caerus Minerals conducted a QC programme of inserting quarter core
duplicates, external laboratory checks) and whether acceptable levels of field and channel duplicates, coarse blank material and CRMs into the diamond
accuracy (i.e. lack of bias) and precision have been established. sample stream.
· No primary QC samples were inserted into the percussion sample
stream. However, subsequent riffle split duplicate analysis shows no serious
issues.
· No significant issues were identified in the QC data.
· The nature and quantity of QC data, procedures employed, level of
accuracy and precision are considered acceptable for the assigned resource
classification. The quality of assay data and laboratory tests is acceptable
for the resource classification for this deposit.
· Shewhart Plots of the QC samples showed no sample bias and CRMs
returned within acceptable limits.
· Nelson rules of monitoring were applied.
· The nature and quantity of QC data for the channel sampling,
procedures employed, level of accuracy and precision are considered acceptable
for the assigned resource classification.
Verification of sampling and assaying · The verification of significant intersections by either independent · Drill core has been verified by AMS geologists on the two site
or alternative company personnel. visits.
· Mineralised intersections were discussed on the site visits.
· Four verification samples have been submitted to ALS Loughrea for
independent analysis; the results are currently pending.
· No significant issues in the drill logging were observed.
· The logging is accurate and suitable for Mineral Resource Estimation.
· The use of twinned holes. · Three percussion holes were "twinned". The reason was to extend the
hole as the percussion hole terminated in mineralisation.
· TR21DH003 vs TR21DD013a
· TR21DH005 vs TR21DD025
· TR21DH006 vs TR21DD026
· The lithological logging varied between the percussion and diamond
holes.
· Samples from diamond drilling were composited to two metres, in line
with the percussion holes and compared in scattergrams.
· Gold analysis showed a reasonable correlation while Cu showed a
reasonably poor correlation. However, there are outstanding Cu analyses.
· Additional statistical analysis is required in this space.
· Documentation of primary data, data entry procedures, data · GPS collar, survey excel data, and laboratory analytical data
verification, data storage (physical and electronic) protocols. transferred from lab.csv, is copied and pasted into Excel.
· Recovery and RQD data is recorded on paper and transferred into
Excel.
· AMS imported to Micromine 3D geological modelling software.
· AMS have imported and validated numerous databases and provided
assistance and guidance, prior to delivery of the final database.
· The Company's database is comprised of two Excel workbooks (1 for the
trenches and 1 for the hard rock area)
· Analytical certificates (used in the estimation) generated by the
laboratory was imported into Micromine and cross-referenced against the
Company's database by merging data and IF formulas and validations.
· No copy and paste errors were found in the assay file.
· Discuss any adjustment to assay data. · No adjustment to the analytical data was considered necessary, other
than conversion of ppm to % where applicable. Raw analytical data remained
unchanged.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · Trench channel samples were surveyed by DGPS.
and down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation. · Drillhole collars were surveyed by DGPS up to drillhole 21,
drillholes 22-40 are pending DPGS survey.
· Drillhole surveys were competed at 30 m regular intervals using a
REFLEX™ tool.
· Specification of the grid system used. · Data was captured and located using a Universal Transverse Mercator
(UTM).
· The geographic coordinate reference system used by the client was
World Geodetic System 1984 Zone 36 North ('WGS84 / UTM36N').
· Elevations are reported in metres above sea level.
· Quality and adequacy of topographic control. · Topographic DTM taken from 1m resolution drone survey.
· Topographic control is sufficient for level of resource category.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Drilling within the hard rock area ranges from approximately 15-15m x
30x30m centres within the most densely tested area situated in the central
area with several step-out put holes designed to explore for further
mineralisation.
· The dump areas have channel samples every 5 m along an excavated
trench with a total of 11 trenches. The trenches are centred between 15 and 40
m apart.
· Whether the data spacing and distribution is sufficient to establish · The distribution of drillholes and dump channel sampling is
the degree of geological and grade continuity appropriate for the Mineral sufficient to establish the degree of geological and grade continuity
Resource and Ore Reserve estimation procedure(s) and classifications applied. appropriate for JORC (2012) Indicated and Inferred classification of
resources.
· Whether sample compositing has been applied. · Samples were not composited
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · Drilling and sampling is generally vertical to intercept mineralised
possible structures and the extent to which this is known, considering the structures as close to perpendicular to dip and strike as practicable.
deposit type.
· Some angled holes are designed to intercept the basement contacts
perpendicularly, however the orientation of mineralization in the breccia is
poorly defined but interpreted to dip ~45 to the south.
· 3D review of sections shows that there appears to be no sample bias
introduced by drilling orientation except for some drillholes which may be sub
parallel to breccia mineralization.
· If the relationship between the drilling orientation and the · The hard rock mineralisation is a relatively flat lying gossan and
orientation of key mineralised structures is considered to have introduced a vertical drillholes reduces the bias by sampling on a perpendicular plane
sampling bias, this should be assessed and reported if material. where possible.
· The dumps are a relatively flat lying deposition horizon and vertical
channels reduces the bias by sampling on a perpendicular plane where possible.
· Review of drilling and channel sections with the lithological units
appear to show no obvious bias.
Sample security · The measures taken to ensure sample security. · Drill core, percussion chips and trench samples are transported from
site to the logging facility in securely covered core boxes, polyweave bags
(as appropriate) by Company geologists.
· Core is logged and sampled in secure facility.
· Samples are bagged in plastic bags and labelled with individual
sample numbers. Each bag is sealed.
· Plastic bags are placed in dry weave bags.
· Samples are delivered to laboratory by courier in secured polyweave
rice sacks.
· Couriers transported the samples to ALS or SGS. The couriers sign for
the samples and were then responsible for the chain of custody.
· All samples have arrived in good condition at ALS Seville / SGS
Ankara.
Audits or reviews · The results of any audits or reviews of sampling techniques and data. · Two separate AMS site visits have been conducted to the Troulli
Project.
· Data has also been reviewed regularly by AMS.
· The Company sends regular databases for import and validation.
· Findings were satisfactory and suitable for use in mineral resource
estimation.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation AMS Comments
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · Exploration licence number AE 4848 is located in central southern
agreements or material issues with third parties such as joint ventures, Cyprus, approximately 12 km north of the city of Larnaca.
partnerships, overriding royalties, native title interests, historical sites,
wilderness or national park and environmental settings. · The licence covers an area of 1km².
· Exploration licence AE 4642 is wholly owned by New Cyprus Copper PA
Ltd, a subsidiary of Caerus Mineral Resources.
· The licence is valid until late March 2027 subject to annual renewal
over a 5 year granted term.
· The security of the tenure held at the time of reporting along with · All tenements are in good standing.
any known impediments to obtaining a licence to operate in the area.
· AMS are unaware of any impediments that may affect the licences.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · The licence is focused on the historic Troulli mine, which was
prematurely closed in 1974 at the time of the Turkish Invasion.
· The mine was operated by a local company.
· There are no records of the exploration carried out or any production
records. These were destroyed during the invasion.
Geology · Deposit type, geological setting and style of mineralisation · The waste dumps constitute a heterogenous mixture of mineralised mine
waste and ROM that has been deposited erratically during mine operations
throughout the 1960s and 1970s.The material is a mixture of clay, sands and
poorly sorted rock, ranging in size from cobbles to boulders.
· The hard rock area is comprised of volcanic rocks of the Troulloi
Inlier and identified as belonging to the Basal Group (BG), Lower Pillow Lavas
and Upper Pillow Lavas.
· Troulli gold and copper mineralisation is hosted by pillow lavas and
controlled by faulting and are typical of stockwork-type VMS mineralisation
found in Cyprus.
· Main metallic minerals are pyrite and chalcopyrite with patch
chalcocite, bornite, sphalerite, malachite and covellite.
Drill hole Information · A summary of all information material to the understanding of the · No exploration results are being reported in this release.
exploration results including a tabulation of the following information for
all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of the
drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
· If the exclusion of this information is justified on the basis that · No exploration results are being reported in this release.
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · No exploration results are being reported in this release.
maximum and/or minimum grade truncations (e.g. cutting of high grades) and
cut-off grades are usually Material and should be stated.
· Where aggregate intercepts incorporate short lengths of high grade · No exploration results are being reported in this release.
results and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations
should be shown in detail.
· The assumptions used for any reporting of metal equivalent values · No exploration results are being reported in this release.
should be clearly stated.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · No exploration results are being reported in this release.
Exploration Results.
· If the geometry of the mineralisation with respect to the drill hole · No exploration results are being reported in this release.
angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported, there · No exploration results are being reported in this release.
should be a clear statement to this effect (e.g. 'down hole length, true width
not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · No exploration results are being reported in this release.
intercepts should be included for any significant discovery being reported.
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · No exploration results are being reported in this release.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of · Metallurgical testwork samples have been submitted to Jubilee Metals
treatment; metallurgical test results; bulk density, groundwater, geotechnical Group. The results are pending.
and rock characteristics; potential deleterious or contaminating substances.
Further work · The nature and scale of planned further work (e.g., tests for lateral · Surface drilling and trenching works testing open strike extent to
extensions or depth extensions or large-scale step-out drilling). the north and west and infill drilling within current inferred resource limits
to increase confidence and resource class.
· Drilling on ancillary deposits within the mine area (i.e.,
Kokkinopetra to the east).
· Additional trenching in dumps area to the west of the Main Zone.
· Increased metallurgical and recovery test work including acid soluble
Cu.
· Structural interpretation and 3D modelling.
· Diagrams clearly highlighting the areas of possible extensions, · Appropriate scaled diagrams and maps areas for areas of possible
including the main geological interpretations and future drilling areas, extensions are included within the AMS Troulli JORC (2012) Resource Statement
provided this information is not commercially sensitive and Technical Report.
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to
this section.)
Criteria JORC Code explanation AMS Comments
Database integrity · Measures taken to ensure that data has not been corrupted by, for · Analytical data is copied and pasted into Excel by the Company.
example, transcription or keying errors, between its initial collection and
its use for Mineral Resource estimation purposes. · AMS has cross referenced the analytical database with laboratory
certificates in Micromine.
· Micromine 2022 3D geological modelling and estimation software was
used for import, validation and QAQC verification assessment.
· Basic core and sample storage, handling, data capture are considered
satisfactory.
· However, database management, transfer methodologies and data
validation procedures require attention.
· The database is suitable for use for use in Mineral Resource
Estimates for the hard rock and dump deposits.
· Data validation procedures used. · Micromine 2022 software was used to validate the channel sampling and
drillhole databases.
· Data checks include overlapping and missing intervals, trace errors,
missing survey and coordinate data, lithology, consistency of sample lengths
interval files. Checks for out-of-range values were also made.
· AMS have imported numerous database versions throughout the
exploration programme and numerous minor typographical and depth errors were
found within the database, consisting of overlapping intervals, code errors,
exceeding hole depths, missing survey data etc.
· All errors were identified and fixed prior to modelling and
estimation.
· The estimation database is considered robust and suitable for input
into estimation.
Site visits · Comment on any site visits undertaken by the Competent Person and the · The Competent Person for the Resource Estimate is Mr. Richard Siddle.
outcome of those visits.
· Mr Siddle's site visit was completed on 28(th) to the 30(th) of March
2022.
· Lewis Harvey (AMS Senior Exploration Geologist) has also visited the
site to carry out additional checks and assist with data preparation, prior to
resource estimation. Mr Harvey's visit was completed between the 14(th) and
17(th) of February 2022.
· The purposes of the visits were to verify data collection
methodologies, site location and infrastructure, geology and verify the
presence of mineralisation.
· Site visits have not identified any issues relating to the reporting
of mineral resources.
· If no site visits have been undertaken indicate why this is the case. · N/A
Geological interpretation · Confidence in (or conversely, the uncertainty of) the geological · Based upon the level of available information, geological and deposit
interpretation of the mineral deposit. complexity, interpretation of the main lithological boundaries and controls to
mineralisation are considered satisfactory and appropriate for the assigned
resource classes.
· Controls on the gossan mineralization are reasonably tight in areas
of closest spaced drilling.
· Further drilling is required to better understand mineralization
within the breccia.
· The dump deposition is highly variable and is assigned a resource
class appropriate to its variability.
· Nature of the data used and of any assumptions made. · Drillhole lithological and analytical information, dump channel
sampling and analytical information, and prospect scale surface geological
mapping, were used in the geological interpretation and creation of solid
wireframes.
· The hard rock mineralisation is modelled as a flat lying gossanous
unit, sitting atop of a mineralised breccia.
· The breccia is currently interpreted to dip ~45 degrees to the south.
· The dumps form a highly variable and heterogenous mix of mineralised
waste and ROM.
· It is assumed that the deposition by truck was extremely variable
with areas of higher and lower grade.
· There are no other assumptions made.
· The effect, if any, of alternative interpretations on Mineral · A small mafic dyke was intercepted in one hole which may affect
Resource estimation. future models.
· However, at the level of information this interpretation remains
unsupported by drill data.
· Further interpretation and incorporation of faulting into the model
is required.
· The use of geology in guiding and controlling Mineral Resource · Drillhole and trench channel lithological and analytical information
estimation. were used in geological interpretation.
· Logging of the gossan and breccia were used to nest grade shells of
mineralized and unmineralized material within those unit.
· The factors affecting continuity both of grade and geology. · The understanding of grade continuity is reflected in the
classification of the mineral resources.
Dimensions · The extent and variability of the Mineral Resource expressed as · Dumps
length (along strike or otherwise), plan width, and depth below surface to the
upper and lower limits of the Mineral Resource. o The resource has identified potentially economic waste / ROM from surface
to approximately five metres below surface.
o Mineralisation is currently tested across a 300 m "strike" length (over
two dump areas) and between 30 and 100 m in width.
· Hard rock area
o The resource has identified potentially economic waste / ROM from surface
to approximately 100 metres below surface.
o Mineralisation is currently tested across a 350 m strike length and
approximately 350 m in width.
o Mineralisation is trending approximately 340 degrees.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied · AMS completed wireframe solid models for the dumps and hard rock
and key assumptions, including treatment of extreme grade values, domaining, area based on lithological boundaries and created nested grade shells where
interpolation parameters and maximum distance of extrapolation from data applicable.
points. If a computer assisted estimation method was chosen include a
description of computer software and parameters used.
· The availability of check estimates, previous estimates and/or mine · There are no previous estimates.
production records and whether the Mineral Resource estimate takes appropriate
account of such data. · There are no historical production records available to validate
against.
· The assumptions made regarding recovery of by-products. · In the absence of metallurgical testwork (which is ongoing) the
following parameters are assumed for all material types, for gold 95%
recovery, 3% refining reduction costs, and a base gold price of $1900/oz, for
copper 85% recovery and 5% smelter reductions, with a base copper price of
$8000/t. Combined processing and G&A costs are envisaged to be in the
region of $17/ROMt and mining by open pit in the region of $3. The following
parameters indicate a break even mill cut-off grade of approximately 0.25% Cu
equivalent or 0.3 g/t Gold equivalent, which seems reasonable for identifying
material which has a reasonable prospect of eventual economic extraction.
Silver credits are not considered in the cut-off determination and Ag is
reported as a by-product only.
· It is anticipated that no grade control or selective mining will
be employed for the dump material which is reported as a global resource (no
cut-off grade applied).
· Estimation of deleterious elements or other non-grade variables of · No estimation of deleterious elements has been made at this time.
economic significance (e.g. sulphur for acid mine drainage characterisation).
· In the case of block model interpolation, the block size in relation · The block spacing is 1/2 to 1/5 of the data spacing.
to the average sample spacing and the search employed.
· Any assumptions behind modelling of selective mining units. · No selectivity is assumed for the dump area and it is anticipated
that the majority of the material will be extracted without grade control or
selection.
· In the hard rock area 5 m flitches with a minimum mining width of 5 m
is assumed. This was incorporated into the block model by regularizing the
block model.
· Any assumptions about correlation between variables. · Cu and Au domains were modelled separately, Ag was modelled as part
of the Au domain.
· Description of how the geological interpretation was used to control · The dump and hard rock wireframes were generated using Micromine's
the resource estimates. implicit geology modelling functionality.
· In the hard rock area the mineralization was constrained to the
gossan and breccia solid models.
· Discussion of basis for using or not using grade cutting or capping. · Top cutting was not applied.
· In the estimates of dump material gold grades greater than 0.5 g/t Au
were clamped to a 10m radius and ignored outside of this radius. This
threshold was based on inspection of the histograms for Au in the domain and
inspection of grades in cross section.
· The process of validation, the checking process used, the comparison · The block model was validated visually in cross section to inspect
of model data to drill hole data, and use of reconciliation data if available. assay grades vs block grades.
· Particular attention was given to areas of low grade that may be
influenced by higher grade samples within search radii.
· The mean values of the input data were compared against the output
data along with comparison of histograms.
·
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Tonnages are estimated on a dry basis.
moisture, and the method of determination of the moisture content.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · For the purpose of reporting resources with reasonable prospect of
applied. eventual economic extraction a cut-off grade of 0.26% CuEq was used.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · It is assumed mining will be by open pit methods.
dimensions and internal (or, if applicable, external) mining dilution. It is
always necessary as part of the process of determining reasonable prospects · Mining is cost is expected to be in the region of $3 per tonne
for eventual economic extraction to consider potential mining methods, but the
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions
made.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · In the absence of metallurgical testwork (which is ongoing) the
amenability. It is always necessary as part of the process of determining following parameters are assumed for all material types, for gold 95%
reasonable prospects for eventual economic extraction to consider potential recovery, 3% refining reduction costs, and a base gold price of $1900/oz, for
metallurgical methods, but the assumptions regarding metallurgical treatment copper 85% recovery and 5% smelter reductions, with a base copper price of
processes and parameters made when reporting Mineral Resources may not always $8000/t. Combined processing and G&A costs are envisaged to be in the
be rigorous. Where this is the case, this should be reported with an region of $17/ROMt and mining by open pit in the region of $3. The following
explanation of the basis of the metallurgical assumptions made. parameters indicate a break even mill cut-off grade of approximately 0.25% Cu
equivalent or 0.3 g/t Gold equivalent, which seems reasonable for identifying
material which has a reasonable prospect of eventual economic extraction.
Silver credits are not considered in the cut-off determination and Ag is
reported as a by-product only.
· It is anticipated that no grade control or selective mining will
be employed for the dump material which is reported as a global resource (no
cut-off grade applied).…
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue
disposal options. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider the · Environmental impact assessment studies commenced in March 2022. The
potential environmental impacts of the mining and processing operation. While outcomes are not available.
at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the · AMS has not reviewed any Environmental, Social and Permitting
status of early consideration of these potential environmental impacts should (ES&P) documents or licences.
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made. · No Protected sites have been identified within the project area. It
should be noted that the village of Troulloi is within less than 500 m of the
mineral resource area and this may represent a permitting risk. Since the
original granting of the historic Mining Lease at Troulli prior to the Turkish
invasion in 1974, the village of Troulli recognised the potential economic
importance of the mine to the local community. In recent years due to the
close proximity of the project to the village, the Council and local leaders
took the highly pragmatic and extraordinary measure of having the mine
property placed under the village jurisdiction so that it may have a voice in
its future development and share in the potential benefit that the project
could bring to the community. To the Company's knowledge, this is the only
such project in Cyprus whereby the Community has taken such a positive and
pragmatic approach to a potential future mine development.
Bulk density · Whether assumed or determined. If assumed, the basis for the · The bulk density was calculated using the Archimedes method weighting
assumptions. If determined, the method used, whether wet or dry, the frequency the samples in air and water using a precision balance.
of the measurements, the nature, size and representativeness of the samples.
· Checks were made on core using the weight vs volume method.
· Bulk density within the dumps was calculated using the volume of
water vs weight of material extracted method.
· Several bulk density measurements were carried out on most of the
drillholes, in both mineralised and un-mineralised samples.
· The resource database contains 436 bulk density measurements within
the hard rock area and 58 measurements within the dumps area.
·
· The bulk density for bulk material must have been measured by methods · No bulk material was measured.
that adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit. · Samples were sealed to account for porosity and this is reflected in
the low bulk density used in estimation.
· Discuss assumptions for bulk density estimates used in the evaluation · The resource database contains 436 bulk density measurements
process of the different materials. within the hard rock area and 58 measurements within the dumps area. For the
purpose of Mineral Resource Estimation, the following default bulk density
values were assigned on a dry basis. Dump material was given a bulk density of
1.89 g/cm3; mineralized gossan, 2.14 g/cm3 and mineralized breccia, 2.36
g/cm3. For a hard rock deposit the bulk density values are low, however the
gossan material is highly porous while the breccia is frequently subject to
intense argillic alteration. Further bulk density measurements are advised to
better understand the density of the different material types.
Classification · The basis for the classification of the Mineral Resources into · In the resource estimation of the Troulli project, the above
varying confidence categories. definitions have been taken into consideration when applying resource
classification.
· It was the opinion of the Competent Person that within some areas of
the deposit sample density, Quality Control data, density determinations and
drilling recoveries were sufficient to allow classification of some Indicated
Resources.
·
· Whether appropriate account has been taken of all relevant factors · The Troulli deposit, has been classified as an Inferred and Indicated
(i.e. relative confidence in tonnage/grade estimations, reliability of input Mineral Resource in accordance with JORC (2012) based on a combination of
data, confidence in continuity of geology and metal values, quality, quantity drill spacing, geological confidence, grade continuity, and consideration of
and distribution of the data). data quality. Indicated resources were classified in the Gossan only where
drill spacing was completed on a ~15 m grid. Within the breccia further
geological understanding and infill drilling is required before Indicated
resources are warranted, all breccia material was classified as Inferred. All
dump material was classified as Inferred.
· Whether the result appropriately reflects the Competent Person's view · The result reflects the quality and quantity of data, geostatistical
of the deposit. analysis of correlation and relationship between mineralised samples and the
Competent Person's view of the deposit.
·
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · The 2022 Mineral Resource has been reviewed internally as part of
normal validation processes by AMS.
· The AMS 2022 resource estimate has not been audited or reviewed
externally at the time of writing.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · It is the Competent Person's opinion that the level of confidence is
level in the Mineral Resource estimate using an approach or procedure deemed consistent with the level of Inferred and Indicated categorised mineral
appropriate by the Competent Person. For example, the application of resources.
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 statement should specify whether it relates to global or local · The estimate of dump material should be considered a global estimate.
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include · Within the Gossan material which is classified as measured the
assumptions made and the procedures used. estimate can be considered a local estimate.
· Inferred resources should be considered a global estimate.
· These statements of relative accuracy and confidence of the estimate · There are no historical production records available from the
should be compared with production data, where available. deposit.
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