JORC 2012 Inferred Initial Mineral Resource Estimate for the Dehane 2 Heavy Mineral Sands Project, Cameroon
22/01/2025 07:00
22 January 2025
BWA Group PLC
("BWA", or the "Company")
JORC 2012 Inferred Initial Mineral Resource Estimate for the Dehane 2 Heavy
Mineral Sands Project, Cameroon
BWA Group plc [AQSE: BWAP], which has mineral exploration permits in Cameroon,
mining claims in Canada, and is quoted on London's AQSE Growth Market,
provides results from its recently completed Inferred initial Mineral Resource
Estimate (MRE) at its 90% owned, through BWA Resources (UK) Ltd ("BWAR"),
Dehane 2 heavy mineral sands permit, located in the South Region of Central
Cameroon ("Dehane 2" or the "Dehane Project").
The Dehane Project is located 166 km southwest of Yaoundé, and 70 km from the
deep seaport and industrial zone of Kribi. The D2 permit covers an area of 54
km2. It includes 14 km of strike length of the Nyong river system, an area
known to be prospective for Ilmenite, Rutile, Zircon, and Kyanite heavy
mineral sand (HMS) mineralisation.
Moreover, the licence covers some 20 km of the mouth of the Nyong River as it
empties into the Gulf of Guinea and adjacent sandy beach-setting coastline.
The beach swash zone and the area extending inland by up to 150 m were the
target for the 79-hole exploration drilling, the basis for the MRE being
reported herein.
Highlights
Inferred initial Mineral Resources reported in accordance with the JORC Code
2012 edition, include:
* Approximately 4.2 million tonnes (mt) at 3.5% THM cut-off. * Comprising of
ilmenite at 0.99%, rutile at 0.13% and zircon at 0.11%.
* HMS mineralisation encountered from the surface down to the basement
occurring at depths around 6-10 m.
* Mineralisation is open in all compass directions.
* 4 mt to 6 mt at 1.4 to 1.6% kyanite in the Exploration Target Category,
pending testwork results for a potential saleable product. * Grinding
Solutions (GSL) have been commissioned to undertake the kyanite testwork and
the results are expected in early Q2 2025.
An enhanced version of this announcement, including figures, maps and tables
can be viewed on the link below.
Jonathan Wearing, Chairman of BWA Group Plc, commented:
"This is an excellent result for the Company and validates the investment we
are making to unlock an integral part of the natural resource wealth for
Cameroon. It delivers a step-change in the value perception of BWA and sets it
on a path, albeit subject to further testwork, to reinvigorate heavy mineral
sands production in the country. The three Dehane exploration permits are
located downstream on the Nyong river from the historic and proven rutile
mining district at Akonolinga.
We intend to advance Dehane 2 with further iterations of the MRE before
embarking on a Preliminary Economic Assessment as a next step towards
demonstrating economic viability. This commitment will include ESIA
(environmental and social impact assessment) baseline studies to both local
and international standards.
If the kyanite testwork proves positive, we will incorporate this potential
revenue stream into an updated MRE which we would expect to issue in Q2 2025.
In conjunction, BWA is evaluating offtake opportunities for what is a niche
specialist market that includes high temperature refractories.
We look forward to providing further results in due course for both Dehane 2
and the four other permits that we are actively exploring in our Cameroon
portfolio."
Work Completed
The results of the recent drilling programmes (as announced on 19 December
2024, 5 June 2024 and 27 February 2024) were sufficiently encouraging to
complete an initial MRE. The programmes consisted of 19 and 79 drillholes at a
spacing of between 250 and 500 metres along strike and around 50 to 100 metres
across the project width where access permitted. Drillhole locations are shown
in previous announcement dated 19 December 2024. Holes were drilled to an
average depth of around six metres using percussion drilling. Samples were
submitted to Scientific Services Laboratory, South Africa, for heavy liquid
separation (HLS) and X-ray diffraction (XRD). Significant intercepts for THM%
and VHM% are presented in the previous announcement dated 19 December 2024.
Computerised 3-dimensional geological modelling, block model grade
interpolation and mineral resource estimation was completed by Addison Mining
Services Ltd for the drill tested beach sand area, covering an approximate
aerial extent of 14-15 km long x 150-200 m wide. Classification of resources
were completed based on drill spacing, quality of sample, geostatistical and
visual assessment of grade continuity and drill sample versus block grade
correlation.
Reporting of resources with Reasonable Prospects of Eventual Economic
Extraction (RPEEE) completed by use of calculated cut-off grade for Valuable
Heavy Mineral (VHM) contents, utilising assumed reasonable and industry
accepted recovery, mining and processing costs, and product selling prices.
The presence of kyanite is currently reported as an Exploration Target range
of tonnes and grades within the boundaries of the initial MRE model, pending
results of current testwork.
Geology and Geological Interpretation
The Dehane licences are located in the Western Cameroon Domain, which extends
along the border between Nigeria and Cameroon. This domain consists of a
series of medium-grade to high-grade schists and gneisses of volcanic and
volcano-sedimentary origin, intruded by later-stage granitoid complexes, the
basement rocks are the source of heavy minerals.
The Nyong River is the main river which runs through the licence areas. The
BWAR licences (D1, D2 and D3) allow access to approximately 60 km of the
prospective Nyong River floodplain system, deltas, estuarine coastline and
associated tributaries.
The licences encompass a large active river system and an even larger
paleo-floodplain area, and marine coastline observed in satellite imagery,
although this has yet to be fully ground-truthed through fieldwork. This
paleo-floodplain is likely to be a significant target for exploration and
covers the length of the river with an initial expected width of over 2 km in
the north and increasing in the south. Other rivers of various importance are
found there: Owoumbé, Nkoudou, Bidinga, Mbebe, Mboke, and Ongué.
The Dehane area has been known for some historic small-scale artisanal
historical rutile mining. However, the extent of its exploitation has not
translated to concentrated modern exploration.
Dehane 2 comprises approximately 14 kms of the Nyong river system, an area
known to be prospective for Ilmenite, Rutile, Zircon and Kyanite heavy mineral
sand mineralisation. Moreover, the licence covers some 20 km of the mouth of
the Nyong River as it empties into the Gulf of Guinea. A river mouth can lead
to a change in flow conditions that can cause the fluvial system to deposit
any supplementary sediment including heavy mineral sand (HMS) it is carrying,
where potentially economic accumulations of HMS are found within the lowest
energy zone on the beach, the swash zone.
Mineralisation
Rutile, ilmenite and kyanite were visible during the drilling. Generally, the
rutile grains are reddish and medium to coarse-grained compared to the black
finer-grained ilmenite (reported on 27 February 2024).
The sands are generally thicker towards the southern part of the Dehane 2
licence, although the XRD results show that the HMS mineralisation is
continuous and of similar grades (with some areas of higher and lower grade,
expected due to the nature of deposition. Rutile and ilmenite mineralisation
was observed in all sand horizons with larger grains of heavy minerals located
within the coarser sands. Micas are generally observed in the drillhole near
the boundary to the gneiss bedrock.
The typical drillhole lithologies consist of a thin layer of organic
soil-sandy material measuring less than 10 cm from the surface. This layer
overlies a varying thickness of coarse to medium-grained sands, where the HMS
is predominant. The gneiss bedrock's depth varies between six to seven metres
with depths down to ten metres not uncommon.
Mineral Resource Estimate
The initial Inferred Mineral Resource Estimate has been completed by Addison
Mining Services Ltd., an independent consultancy based in the United Kingdom
and is reported in accordance with the JORC Code 2012 edition.
Resources are of the Inferred category and include.
* Approximately 4.2 million tonnes at 3.5% THM cut-off. * Comprising of
ilmenite at 0.99%, rutile at 0.13% and zircon at 0.11%.
The results of the recent drilling programmes (as announced on 19 December
2024, 5 June 2024 and 27 February 2024) were sufficiently encouraging to
complete a maiden MRE. The programmes consisted of 19 and 79 drillholes at a
spacing of between 250 and 500 metres along strike and around 50 to 100 metres
across the project width where access permitted.
The Mineral Resource Estimate is based on wireframe restricted block modelling
with grade estimation by Ordinary Kriging. The total resources are presented
in Table 1 below above a cut-off grade off 3.5% THM.
The estimate incorporates 98 drillholes completed by BWAR in November 2023 and
October 2024, for a total of 516.70 metres (ranging between 2.5 m and 10.0 m
in depth). All holes were vertical.
Table 1: Inferred Mineral Resources for the Dehane 2, HMS Project, Cameroon,
reported at a cut-off of 3.5% THM.
THM (%) TONNAGE (t) THM (%) THM (t) VHM (%) VHM (t) Ilmenite (%) Ilmenite (t) Rutile (%) Rutile (t) Zircon (%) Zircon (t) Slime (%) Oversize (%)
3.50 4,200,000 4.80 200,000 1.23 52,000 0.99 42,000 0.13 5,500 0.11 4,500 2.11 2.69
Notes relating to Mineral Resource Estimate:
1. The independent Competent Person for the Mineral Resource Estimate, as
defined by the JORC Code (2012 edition), is Mr. James Hogg, MSc, MAIG, of
Addison Mining Services Ltd since April 2014. The effective date of the
Mineral Resource Estimate is 15th of January 2025 and is reported above at a
cut-off of 3.5% THM.
2. Mineral assemblage is presented as a percent of the in-situ material.
3. Volumes are converted to tonnages based on a density of 1.44 g/cm3.
4. No mineral reserve estimates have been undertaken.
5. The quantity and grade of reported Inferred Resources in this Mineral
Resource Estimate are uncertain in nature and there has been insufficient
exploration to define these Inferred Resources as Indicated or Measured,
however it is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with continued
exploration.
6. The deposit is open in all compass directions.
7. The Inferred mineral resource category set out in the table above at
cut-off grades 3.5% THM comply with the resource definitions as described in
the Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves. The JORC Code, 2012 Edition. Prepared by: The Joint Ore
Reserves Committee of The Australasian Institute of Mining and Metallurgy,
Australian Institute of Geoscientists and Minerals Council of Australia
(JORC).
8. Numbers are rounded to reflect the fact that an Estimate of Resources is
being reported. Rounding of numbers may result in differences in calculated
totals and averages. All tonnes are metric tonnes.
9. Estimates of mineral assemblage (ilmenite, rutile and zircon) are
determined by screening and magnetic separation. Fractions were analysed by
XRD.
10. Cut-off grade selection was based on the assumption of $1.5 processing,
plus $0.5/t G&A and $0.5/t rehabilitation. Mining and transport costs were
assumed as $2/t. $350 ilmenite based on product >50% TiO2, $1600 zircon based
on >65% Zr and $1600 on >95% TiO2. Cut-off calculated on an ilmenite
equivalent as primary input to VHM. Kyanite and garnet not included.
Kyanite Exploration Target
As part of the study, metallurgical testwork is being completed on samples of
coarse kyanite to understand if there is a potentially economic mineral that
can be used for heat resistant applications with minimal expansion (high
temperature refractory uses). There is planned testwork in progress to
determine/demonstrate saleable product specifications. The results for the
testwork are due in early Q2, 2025.
As there is a potential for a saleable product, the kyanite has been presented
as an Exploration Target range at this time, with a view to update the Mineral
Resource, if and when the results are positive.
The results of the Exploration Target range are outlined below at a cut-off of
3.5% THM, in line with the current resource, although this is expected to
reduce with the addition of kyanite credits.
* 4 mt to 6 mt tonnes at 1.4 to 1.6% kyanite in the Exploration Target
Category, pending testwork results for potential saleable product for use in
high temperature refractory uses.
Competent Person's Statement
The information in this report which relates to the BWA Dehane 2 Project is
based upon and fairly represents information and data collected, supervised
and compiled by Mr Lewis Harvey, MSc., Principal Consulting Geologist for
Addison Mining Services, who is a Member of the Australian Institute of
Geoscientists.
The results were reviewed by Mr J.N. Hogg, MSc. MAIG, Principal Geologist for
Addison Mining Services (AMS) and Non-executive Director of BWAR.
Mr Harvey and Mr Hogg have sufficient experience relevant to the style of
mineralisation, the type of deposit under consideration and the activity
undertaken to qualify as a Competent Person as defined in the JORC Code 2012
edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves.
Mr Harvey and Mr Hogg have reviewed and verified the technical information
that forms the basis of and has been used in the preparation of this
announcement, including all sampling and analytical data, and analytical
techniques where applicable. Mr Harvey and Mr Hogg consent to the inclusion in
this announcement of the matters based on the information, in the form and
context in which it appears.
Forward-Looking Statement
This announcement contains forward-looking statements which involve a number
of risks and uncertainties. These forward-looking statements are expressed in
good faith and believed to have a reasonable basis. These statements reflect
current expectations, intentions or strategies regarding the future and
assumptions based on currently available information. Should one or more of
the risks or uncertainties materialise, or should underlying assumptions prove
incorrect, actual results may vary from the expectations, intentions and
strategies described in this announcement. No obligation is assumed to update
forward-looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments.
For further information on the Company, please visit
www.bwagroupplc.com/index.html or:
BWA Group PLC James Butterfield Managing Director +44 (0) 7770 225 253 enquiries@bwagroupplc.com
Allenby Capital Limited Corporate Adviser +44 (0)20 3328 5656 Nick Harriss/Lauren Wright
Oberon Capital Broker +44 (0)20 3179 5300 Nick Lovering/Adam Pollock
2025 01 21 Dehane 2 MRE FINAL (https://mb.cision.com/Public/22539/4094332/b659ac0e4a6ba025.pdf)
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