REG-China Nonferrous Gold Limited Pakrut Gold Mine Independent Technical Report
24/04/2023 10:30
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Pakrut Gold Mine Independent Technical Report
China Nonferrous Gold Limited 中国有色黄金有限公司
(“CNG” or the “Company”)
Pakrut Gold Mine Independent Technical Report
Mineral Resource Estimate Update
China Nonferrous Gold Limited 中国有色黄金有限公司 (AIM: CNG), the
mineral exploration and mining company currently mining the Pakrut gold mine
(“Pakrut”) in the Republic of Tajikistan, today announces the details of
an updated Independent Technical Report (“ITR”) completed by SRK
Consulting China Limited (“SRK”) and releases an update to Mineral
Resource and Ore Reserve estimates for Pakrut in accordance with the
Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (“JORC Code”, 2012 edition as current effective edition),.
The update reflects a substantial reduction in the Mineral Resource Estimate
released by the Company (under its previous name of Kryso Resources plc) on 17
June 2013, and reflects the Company’s increasing knowledge and access to the
underground ore body as operational work has progressed.
Summary:
* Measured and Indicated Mineral Resources estimate as of 31 December 2022 at
the Pakrut Gold Mine, now 6.7 million tonnes with an average grade of 2.1 g/t
gold for about 14,000 kg (equivalent to 440,000 ounces) of contained gold, at
a cut-off grade of 1.0g/t (previously 1.9 million ounces with an average grade
of 3.16g/t reported at a cut-off grade of 0.5g/t, although 172,200 ounces of
gold have been extracted since commencement of mining operations);
* Inferred Mineral Resource estimate as of 31 December 2022 now 7.8 million
tonnes with an average grade of 2.2 g/t gold for about 17,000 kg (560,000
ounces) contained gold (previously 660,000 ounces at 2.05g/t at a cut-off
grade of 0.5 g/t);
* Using a gold cut-off of 1.5 g/t, Proved Ore Reserves now estimated to 1.3
million tonnes at 2.0g/t gold for 2,700 kg contained gold (86,000 ounces) and
Probable Ore Reserves now estimated about 2.9 million tonnes of Probable Ore
Reserves averaging 1.9 g/t gold for 5,400kg of gold (180,000 ounces)
(previously 1.55million oz gold at 3.1g/t at cut-off grade of 1.0g/t and
222,258 oz gold at 2.5g/t at cut-off grade of 1.0g/t for Proved and Probable
ore reserves, respectively), although 172,200 oz of gold have been extracted
since commencement of mining operations);
* Estimated remaining life of mine for the project based on current Ore Reserve
estimates is now 6 years, producing on average 43,000 ounces from 700,000
tonnes of ores per annum until 2029.
* Forecasted production capacity remains at 2,000 tonnes per day.
Zhang Hui, CNG’s Managing Director, commented:
“SRK have produced an updated JORC Code compliant mineral resource estimate
and ore reserves estimate. The Company will continue to progress work at site,
carry out cost reductions and work to improve efficiencies. In addition, it
will look to increase exploration activity at site with a view to extending
the life of mine”.
Background
The substantial reduction in the Mineral Resource Estimate when compared with
SRK’s previous mineral resource estimation has been impacted by the
following factors:
* this new Mineral Resource Estimate, is exclusive of all mined-out materials
since the Company commenced operations in 2015, whereas at the time of the
previous resource estimated the materials were in-situ without depletion
(mining at site had not commenced). 172,200 oz of gold have been extracted to
date.
* a total of five gold mineralization zones (“GMZs”) are delineated at
Pakrut. Namely GMZ 1, 3, 5, 6 and 7. The Measured and Indicated Mineral
Resources are situated in GMZ 1 and GMZ 3. Previous resource estimates have
included GMZ 3 (Eastern Pakrut), but operating practices indicate that the
gold grade in this GMZ 3 is less than 1.5g/t and therefore not currently
economic. Accordingly, this Mineral Resource Estimate only incorporates GMZ 1
(Pakrut) and LLC Pakrut intends to exploit just GMZ 1 in the future.
* the Cut-off grade of gold has increased from 0.5 g/t used in previous Mineral
Resource Estimates to 1.0 g/t for this Mineral Resource Statement, reducing
the amount of material that is included in the Mineral Resource Estimate
because operational performance shows that mining dilution is higher than
previously estimated.
* A considerable amount of data from new boreholes and channels has been added
to the database originally used in previous Mineral Resource Estimates,
following actual operational and further exploration activities, which has
increased the awareness and knowledge of the geometry of the Pakrut Deposit.
* The Pakrut gold mineralisation is associated with structural alteration and is
of vein type deposit, which can make the geological interpretation of the ore
body more complicated when compared to other deposit types. This can be
particularly challenging for the resource estimation at the exploration stage
(the previous Mineral Resource Estimates were prepared at an exploration
stage). However, the use of underground drilling and channeling activities
during the construction and production stage has enabled a more comprehensive
understanding and interpretation of local geology of the deposit.
Mineral Resource Statement
SRK’s assumptions for the cut-off grade calculation for the Mineral Resource
Statement were selected based on experience, benchmarking against similar
projects in line with an industry standard commonly used by external experts,
as well as a general scoping study of the Pakrut Project and the Company’s
past operational performance. SRK has applied a gold grade of 1.0 g/t as an
appropriate cut-off grade for the Mineral Resource statement for the Pakrut
Project. The resource statement is based on a gold price of 1,860 USD/oz.
Operating costs of 50 USD/t of ore mined and processing recovery rate of 80%
applied to the resource statement are based on historical mine performance.
The Mineral Resource statement is shown in Table 1. The in-situ mineral
resources were estimated as of 31 December 2022.
Table 1: Mineral Resource Statement for Pakrut Project, as of 31 December 2022
(Project is owned 100% by Pakrut LLC so the table below includes both gross
and net attributable figures)
GMZ Category Cut-off (g/t Au) Tonnage (kt) Au Grade (g/t) Au Content (kg) Au Content (koz) Operator
1 Measured 1.0 1,600 2.2 3,500 110 Pakrut LLC
- Indicated 1.0 3,600 2.2 8,000 260
- Inferred 1.0 5,900 2.4 14,000 450
3 Measured 1.0 490 1.4 680 22
- Indicated 1.0 1,000 1.6 1,600 52
- Inferred 1.0 1,500 1.8 2,600 84
5 Inferred 1.0 24 1.3 31 1
6 Inferred 1.0 320 1.5 460 15
7 Inferred 1.0 100 1.7 180 6
Total Measured 1.0 2,100 2.0 4,200 140
- Indicated 1.0 4,600 2.1 9,600 310
- Measured + Indicated 1.0 6,700 2.1 14,000 440
- Inferred 1.0 7,800 2.2 17,000 560
Source: SRK
Notes:
1 Both the tonnage and gold contents are rounded to the second significant
digit. Gold grade was rounded to the first digit after the decimal point. The
totals may not add due to rounding discrepancies.
2 Numbers of the contained Au metal in this table are estimated based on the
resource tonnages and grades, and do not represent the exact amount of
extractable metal for this Project. They should be treated differently from
the expected production of gold ingot. The conversion between ounce and gram
is 1: 31.1035 in this Report.
3 The information in the Report which relates to Mineral Resource is based on
information compiled by Mr. Yonggang Wu and Mr. Pengfei Xiao, full time
employees of SRK China, and members of the Australasian Institute of Mining
and Metallurgy (AusIMM). Both Mr. Yonggang Wu and Mr. Pengfei Xiao have
sufficient experiences which are relevant to the style of mineralisation and
the type of deposits under consideration and to the activity which they are
undertaking to qualify as Competent Persons as defined in the JORC Code. Mr.
Yonggang Wu and Mr. Pengfei Xiao consent to the reporting of this information
in the form and context in which it appears.
4 The Measured and Indicated Mineral Resources are inclusive of those Mineral
Resources converted to Ore Reserves.
Ore Reserve Estimates
A bankable feasibility study report (“BFS”) was prepared by the BGRIMM
Technology Group (“BGRIMM”) based on the mineral resource estimate
validated in 2014. The forecasts from the report suggests that mining recovery
and dilution are about 88% and 10% respectively. SRK is satisfied that these
values fairly reflect operation performance and apply the same values in this
update.
For information, the economically mineable parts of the Measured Mineral
Resources, which includes diluting materials and allowances for losses, are
classified as Proved Ore Reserves and the economically mineable parts of the
Indicated Mineral Resources, which includes diluting materials and allowances
for losses, are classified as Probable Ore Reserves.
Cut Off Grade
The Ore Reserves of the Pakrut Project are reported at a gold cut-off grade of
1.5 g/t as of 31 December 2022 using industrial standard and technical
assumptions. Whilst these assumptions were true at the time of calculation,
they can change over time. The parameters used by SRK to calculate cut-off
grade are as follows:
* The long-term gold price of Consensus Market Forecasts (“CMF”) is 1,430
USD/oz in March 2023. The price was adopted by SRK to calculate cut-off grade
(“COG”).
* The proposed recovery rate is 82.99% in the BFS for combined processing and
metallurgical operations to process feed ores with a gold grade of about 3.1
g/t. The actual recovery rate varied from 80.02% to 81.88% in last three years
to process feed ores with gold grade varied from 2.16 g/t to 2.08 g/t.
Considering that the feed grade in future (about 1.9 g/t) is expected to be
less than that of BFS and production records, SRK has adopted a recovery rate
of 80% to calculate COG.
* The Company’s operating costs varied between 46.14 USD/t ore and 59.14 USD/t
ore in the last three years operating. The ore tonnage weighted average costs
are about 52.60 USD/t ore. SRK adopted the Company’s current actual
operating costs (“Opex”) of 53 USD/t to calculate COG.
A summary of Ore Reserves is shown in Table 2.
Table 2: Summary of Proved Ore Reserves on Each Level as of 31 December 2022
(Project is owned 100% by Pakrut LLC so the table below includes gross and net
attributable figures)
GMZ Category Cut-off (g/t Au) Tonnage (kt) Au (g/t) Au(kg) Au (koz) Operator
1 Proved 1.5 1,300 2.0 2,700 86 Pakrut LLC
Probable 1.5 2,900 1.9 5,400 180
Total 1.5 4,200 1.9 8,100 260
Sources: SRK
Notes:
1 All figures are rounded to reflect the relative accuracy of the estimate.
2 The mining dilution rate is 10%. The mining recovery rate is 88%.
3 The Ore Reserves are included in the Mineral Resources. They shouldn’t be
added to the Mineral Resources.
4 The information in the Report which relates to Ore Reserve is based on
information compiled by Mr. Yonggang Wu, a full time employee of SRK China and
a member of the AusIMM. Mr. Yonggang Wu has sufficient experience which is
relevant to the style of mineralisation and the type of deposits under
consideration and to the activity which they are undertaking to qualify as a
Competent Persons as defined in the JORC Code. Mr. Wu consents to the
reporting of this information in the form and context in which it appears.
The ore reserve estimate conducted by SRK was based on the assumptions
proposed in the BFS and actual operating status.
At a gold cut-off of 1.5 g/t, the Pakrut Project contains 1,300 kt of Proved
Ore Reserves averaging 2.0 g/t gold and 2,900 kt of Probable Ore Reserves
averaging 1.9 g/t gold. The ore reserve estimate is also supported by SRK’s
estimate of a mining and processing production schedule, which is detailed as
follows: Table 3: Production Schedule
Item Unit Total 2023 2024 2025 2026 2027 2028 2029
Ore Tonnage kt 4,237 700 700 700 700 700 527 211
Gold grade g/t 1.9 1.9 2.0 1.8 1.8 2.0 2.0 1.7
Gold contained Kg 8,119 1,363 1,381 1,288 1,288 1,384 1,058 356
Recovery rate % 81.90 81.90 81.90 81.90 81.90 81.90 81.90 81.90
Recovered gold kg 6,650 1,116 1,131 1,055 1,055 1,134 867 292
Net Present Value:
NPVs at various discount rates, which are shown in Table 3, provide an
indication that it is economically viable for Pakrut Project to report Ore
Reserves.
Table 4: NPVs at Various Discount Rates
It should be emphasized that the economic analysis presented in this section
is based purely on the results of the technical review provided in previous
sections, on the BFS, and on SRK’s own study and assumptions, and is
provided for ore reserve conversion and project evaluation purposes.
Discount Rate (%) NPV
9 64,020,000
10 62,416,000
11 60,881,000
Sources: SRK
The assumptions behind these NPVs are as follows:
* The discounted cash flow method (the “DCF”) is selected as the foundation
of economic analysis.
* A 10% discount rate was adopted by SRK to calculate net present values
(“NPV”).
* The base date is assumed to be 31 December 2022, and all the assumptions are
subject to conditions obtained at the base date.
* All the ore mined is assumed to be feed to the processing plant and gold
bullion It’s anticipated that the life of mine (“LOM”) is about 6.3
years, and that the mine is producing until 2029. The Opex forecasts which
were estimated based on last three years (2020 - 2022) actual Opex, remain
true and correct. Note: depreciation and amortization have been excluded in
the operating coast estimates. Sunken capital costs are based on the balance
sheet date as at 31 December 2022 of US$152m.
* As there is no significant expansion for the Pakrut project planned, and
underground expenditure and equipment is already taken into account, the
sustaining capital expenditure relates only to mine closure estimated by SRK
to be which is about USD 5,180, 000 (2.5% of total Opex). The added cost will
be expended in year 2029, that is the end of mine life. While SRK has
identified there is a need to consider the residual assets including plants
and smelters, it is assumed that the residual assets are able to cover the
expenditures for mine closure in 2029. Therefore, there is no additional cost
or reclaimed cash balance used for the NPV calculation. The royalty tax is
about 6% of sale revenues. The corporate income tax is the maximum of 18% of
taxable revenues and 1% of sales revenues. Other taxes are minor.
The NPV is particularly sensitive to gold price, at a gold price of US1,250/oz
the NPV is estimated to be US$49,538,000 and at a gold price of US$2,050/oz
the NPV is estimated to be US$122,311,000
Note: JORC Table 1, Section 1 (Sampling Techniques and Data), Section 2
(Reporting of Exploration Results), Section 3 (Estimation and Reporting of
Mineral Resources) and Section 4 (Estimation and Reporting of Ore Reserves),
are attached in Appendix 1 of this Announcement.
Competent Person Statement:
Resource:
1 The information in this Report which relates to Mineral Resource is based on
information compiled by Mr. Yonggang Wu and Mr. Pengfei Xiao, full time
employees of SRK China, and members of the Australasian Institute of Mining
and Metallurgy (AusIMM). Both Mr. Yonggang Wu and Mr. Pengfei Xiao have
sufficient experiences which are relevant to the style of mineralisation and
the type of deposits under consideration and to the activity which they are
undertaking to qualify as Competent Persons as defined in the JORC Code. Mr.
Yonggang Wu and Mr. Pengfei Xiao have reviewed the information contained in
this announcement and consent to the reporting of this information in the form
and context in which it appears.
Reserve:
2 The information in this Report which relates to Ore Reserve is based on
information compiled by Mr. Yonggang Wu, a full-time employee of SRK China and
a member of the AusIMM. Mr. Yonggang Wu has sufficient experience which is
relevant to the style of mineralization and the type of deposits under
consideration and to the activity which they are undertaking to qualify as a
Competent Persons as defined in the JORC Code. Mr. Wu has reviewed the
information contained in this announcement and consents to the reporting of
this information in the form and context in which it appears.
Glossary of abbreviations
Au the chemical symbol of gold
BGRIMM Beijing General Research Institute of Mining and Metallurgy
CNGL(CNG) China Nonferrous Gold Limited, formerly as Kryso Resources Corporation
Limited, which was reformed from Kryso Resource Plc
ITR Independent Technical Review
JORC Code The Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves 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), December 2012.
Kt thousand tonnes
Mt million tonnes
Mtpa million tonnes per annum
SRK SRK Consulting China Ltd
Tpa tonnes per annum
Glossary of Technical Terms
Category C1 A mineral resource/reserve category in accordance with Russian
resource/reserve classification system; the overall level of its geological
control and studies is higher than Category C2 and lower than Category B
Category C2 A mineral resource/reserve category in accordance with Russian
resource/reserve classification system; the overall level of its geological
control and studies is higher than Category P1 and lower than Category C1
Category P1 A mineral resource/reserve category in accordance with Russian
resource/reserve classification system; the overall level of its geological
control and studies is higher than Category P2 and lower than Category C2
GMZ gold mineralised zone; GMZs are used for describing generally the zones and/or
bodies with gold mineral resources defined in the Pakrut Project and the
Eastern Pakrut Project
g/t gram per tonne, equal to part per million
Indicated Mineral Resource That part of a resource for which tonnage, densities, shape, physical
characteristics, grade and mineral content can be estimated with a reasonable
level of confidence. It is based on exploration, sampling and testing
information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes. The locations are too
widely or inappropriately spaced to confirm geological and/or grade continuity
but are spaced closely enough for continuity to be assumed
Inferred Mineral Resource That part of a resource for which tonnage, grade and mineral content can be
estimated with a low level of confidence. It is inferred from geological
evidence and assumed but not verified geological and/or grade continuity. It
is based on information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings, and drill holes which may be
limited or of uncertain quality and reliability
LOM life of mine, same as ROM
Measured Mineral Resource That part of a resource for which tonnage, densities, shape, physical
characteristics, grade and mineral content can be estimated with a high level
of confidence. It is based on detailed and reliable exploration, sampling and
testing information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes
Mt million tonnes
Probable Ore Reserve The economically mineable part of an indicated, and in some circumstances
measured, resource. It includes diluting materials and allowances for losses
which may occur when the material is mined. Appropriate assessments, which may
include feasibility studies, have been carried out, and include consideration
of and modification by realistically assumed mining, metallurgical, economic,
marketing, legal, environmental, social and government factors. These
assessments demonstrate at the time of reporting that extraction could
reasonably be justified.
Proved Ore Reserve The economically mineable part of a measured resource. It includes diluting
materials and allowances for losses which may occur when the material is
mined. Appropriate assessments, which may include feasibility studies, have
been carried out, and include consideration of and modification by
realistically assumed mining, metallurgical, economic, marketing, legal,
environmental, social and government factors. These assessments demonstrate at
the time of reporting that extraction could reasonably be justified.
QA/QC quality assurance/quality control
For further information please visit the Company’s website (www.cnfgold.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.cnfgold.com&esheet=53386251&newsitemid=20230424005462&lan=en-US&anchor=www.cnfgold.com&index=1&md5=1e65732c2a19de6685b85042932d0dce)
) or contact:
China Nonferrous Gold Limited
Zhang Hui, Managing Director
Tel: +86 10 8442 6627
WH Ireland Limited (NOMAD & Broker)
Katy Mitchell (mailto:Katy.Mitchell@whirelandcb.com) , Andrew de Andrade
Tel: +44 (0)207 220 1666
BlytheRay (PR)
Tim Blythe, Megan Ray
Tel: +44 (0)20 7138 3224
The information contained within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulation (EU) No.
596/2014
Appendix 1 JORC Code, 2012 Edition - Table 1 (Pakrut Project)
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary - Assessment of the Pakrut Project
Sampling techniques * Nature and quality of sampling (e.g. cut channels, random chips, or specific * Splitting drill cores and sampling of reverse circulation (“RC”) drill
specialised industry standard measurement tools appropriate to the minerals chips have been applied to the Pakrut Project. Channel sampling of trenches
under investigation, such as down hole gamma sondes, or handheld XRF and underground crosscuts were also applied and addressed in this Report. The
instruments, etc). These examples should not be taken as limiting the broad channel sampling of all types of trenches (shallow and deep) were conducted
meaning of sampling. along one side at the contact with the floor. All channel samples were
collected manually and/or using mechanical devices such as pneumatic hammers
and diamond saws. Specific gravity samples were taken from oxidised outcrops
and fresh zones (drill cores).
*The data used for Mineral Resource estimation was derived from drill holes
(including RC drillholes and diamond drillholes), trenches and underground
channels. There were sufficient underground channels and drill holes that had
been sampled at the Pakrut Project for confident Mineral Resource estimates
and resource classification (Measured and Indicated categories at the Pakrut
Project).
*The drill core samples taken by LLC Pakrut (since 2004) at the Pakrut Project
were about 1.5 m long and a few of them vary from 0.5 m up to 2 m. The average
length of samples previously taken by former Soviet Union’s exploration team
(prior to 2004) was about 1 m length.
*The RC chips were sampled with an interval of every 1 m.
*Sample representativity was guaranteed by drilling and trenching/underground
channelling conducted in an exploration grid of 40 m by 40 m at Pakrut
Project. On the surface, the Pakrut deposit was investigated with trenches of
different lengths and depths excavated across the orientation of
mineralisation zones and spaced in a 20 - 40 m grid. Underground, five adits
were accompanied with drifts and crosscuts were driven along the strikes of
mineralised zones to trace the continuity and changeability of the gold
mineralisation with continuous channel sampling.
* Include reference to measures taken to ensure sample representativity and the
appropriate calibration of any measurement tools or systems used.
* 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 (e.g. 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 (e.g. submarine nodules) may warrant disclosure of
detailed information.
Drilling techniques * Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air * Core diameters were HQ-size (63.5 mm) or NQ-size (47.6 mm). The drilling
blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or started from HQ-size diameter on surface and changed to NQ-size at a depth of
standard tube, depth of diamond tails, face-sampling bit or other type, about 100 m. Most underground drill holes were completed with NQ-size
whether core is oriented and if so, by what method, etc). diameter. The split of drill cores was determined by core diameters. The HQ
sized cores were split into two halves and one half was sampled. No splitting
was applied to cores of NQ size and all of the sampled material was crushed.
*Drilling core samples and channel samples were collected from all
hydrothermally altered sections. From 2005 to the present the samples were
taken from the entire length of the boreholes. The length of the samples
varies from 0.4 m - 3.0 m and depends on the variability of mineralisation and
rock features. In the case of large thickness of altered rocks the samples
were taken at equal intervals of 1 m or 1.5 m, and rarely 2.0 m.
*RC drilling was conducted using standard RC rigs and samples were taken every
1 m interval.
Drill sample recovery * Method of recording and assessing core and chip sample recoveries and results * The average core recovery was about 82% for the Pakrut Project (LLC Pakrut’s
assessed. core samples). The core loss was predominately due to local
structures/fractures and surface soil/overburden. The average recovery of
mineralised intervals was about 90%.
*The gold mineralisation is related to hydrothermally altered zones and drill
core samples and channel samples were collected from all hydrothermally
altered sections. From 2005 to the present the samples were taken from the
entire length of the boreholes.
*Swiss (ONRAM-1000) and American (LY-38) drilling rigs and Chinese rigs of type
CSD1800A have been employed in the drilling programme of the Pakrut Project.
* Measures taken to maximise sample recovery and ensure representative nature of
the samples.
* 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.
Logging * Whether core and chip samples have been geologically and geotechnically logged * The cores have been geologically (lithology, structure, alteration,
to a level of detail to support appropriate Mineral Resource estimation, mineralisation, geotechnical features logged to a level of detail to support
mining studies and metallurgical studies. appropriate geological interpretation and Mineral Resource estimation.
*Underground tunnels developed prior to 2004 have been studied and re-logged by
LLC Pakrut with a systematic channel sampling programme.
*All cores have been logged and the logs were recorded in a format of standard
logging sheet and then typed to electronic copies of the logging sheet and
were incorporated into database.
*Photographs of drill cores were taken during logging. In the earlier days when
the digital camera was not wildly used the drill cores had not been
photographed and instead of this histogram with logs of drillhole was
completed.
*All cores and channels including trenches used in resource estimation were
logged or re-logged by LLC Pakrut.
* Whether logging is qualitative or quantitative in nature. Core (or costean,
channel, etc) photography.
* The total length and percentage of the relevant intersections logged.
Sub-sampling techniques and sample preparation * If core, whether cut or sawn and whether quarter, half or all core taken. * Drill cores were sampled by split cuts and core samples were taken a half of
core. RC drilling chips were collected every 1 m interval. Both core and RC
chips were sampled in the logging and sampling yard by field geologists from
LLC Pakrut and/or former Soviet/Tajikistan geological team, after logging and
photographing.
*Drilling and sampling were supervised by LLC Pakrut geologists and the initial
sample preparation was done in LLC Pakrut laboratory located in Dushanbe
(prior to 2004, sample preparation was done by geological team supervised by
Tajikistan governmental geological department).
*Drill cores were stowed in wooden boxes with proper markers after being taken
from drilling pipes, then were logged and recorded with standard sheets at
Pakrut camp before being transported to LLC Pakrut’s laboratory in Dushanbe.
*From 1975 to1981, preparation of all types of samples was carried out firstly
by crushing the rocks down to 1 mm in the preparation laboratory of the South
Tajik Geological Exploration Expedition by mechanical grinding according to
the Richards-Chechetta formula Q = kd(2). In this formula, Q = sample mass, d
= maximum diameter of the particles in the sample, in mm; and k = coefficient
of uneven distribution of gold in the ore. Pulverizing the ore down to 0.75 mm
(-200 mesh) was carried out by the Central Laboratory of Unified Enterprise of
the Tajik SSR.
*From 2004 to the present, sample preparation has been carried out at LLC
Pakrut’s laboratory in Dushanbe using two steps of jaw crushing and
vibrating pulverisers. The required -200 mesh sample is obtained by selective
splitting and sieving. Sample preparation methodology is subject to continuous
quality control monitoring.
*Original core samples and channel samples were at a range of 3 kg - 10 kg
depending on the recovery of cores and sample length. Core and chip samples
were further split into coarse samples after crushing. Samples were further
pulverised to fine pulps and about 200 grams were taken and packed for
chemical assaying.
*Sample sizes were appropriate to the grain size of the material being sampled.
* If non-core, whether riffled, tube sampled, rotary split, etc and whether
sampled wet or dry.
* For all sample types, the nature, quality and appropriateness of the sample
preparation technique.
* Quality control procedures adopted for all sub-sampling stages to maximise
representativity of samples.
* Measures taken to ensure that the sampling is representative of the in situ
material collected, including for instance results for field
duplicate/second-half sampling.
* Whether sample sizes are appropriate to the grain size of the material being
sampled.
Quality of assay data and laboratory tests * The nature, quality and appropriateness of the assaying and laboratory * From 1975 to 1981 all primary analyses were conducted at the Central
procedures used and whether the technique is considered partial or total. Laboratory of Unified Enterprise of the Tajik SSR (“CLUETS”).
*Semi-quantitative spectral analysis was used to determine the grades of 13
components: gold, silver, arsenic, tin, tungsten, molybdenum, copper, lead,
zinc, antimony, mercury, tellurium, and bismuth, including a full spectral
analysis for gold and silver, together with traditional chemical analysis for
gold. At the same time a series of analyses were carried out to determine the
samples’ bulk density, moisture, carbonate-silica ratio and other
characteristics.
*During the second stage of exploration (2005 - 2010) the primary analyses for
gold, silver, and arsenic of channel and core samples were performed by the
LLC Pakrut laboratory in Dushanbe using aqua-regia digestion and atomic
absorption spectrometry. The samples which returned grades greater than 0.15
g/t were reanalysed using fire assays by the SGS Laboratory in South Africa
and by the Central Governmental Laboratory of the Republic of Tajikistan.
During these periods a total of 26,358 samples were analysed using AAS and
7,243 by fire assay. These samples were taken from Pakrut Project.
*Since 2011, samples with gold grades ≥0.5 g/t as determined by LLC Pakrut
laboratory have been reanalysed at the Intertek Laboratory in Beijing by fire
assays.
*For quality assurance purposes, internal and external laboratory testing for
gold and arsenic was performed in the process of conducting analytical work in
2009 and 2010. For internal control purposes, a portion of encrypted sample
duplicates (taken from the other half of the primary sample) were included in
the stream of primary samples and analysed using the same methodology.
Additionally, two industrial standards were inserted in every batch of 20 to
25 samples. The standards were purchased from international sources and vary
in grade from 0.26 g/t to 13.64 g/t. The results were analysed and reported by
quality control personnel.
*External quality control tests were carried out by re-analysing duplicate
samples in the Central Governmental Laboratory of the Republic of Tajikistan.
Generally the samples for external control were submitted quarterly, but
during periods of low sampling activity they were submitted every six months
or even annually.
*The internal and external control results were both compared with the primary
assays; if the discrepancy exceeded that permitted by regulation all results
from that batch were rejected and the samples assayed again.
*All core and channel samples were first analysed for gold (and sometimes but
not always for silver and arsenic) by a modified aqua regia method and gold
content was determined by AAS. Samples returning gold values were subsequently
sent to the Intertek Laboratory (“Intertek”) in Beijing, China, a branch
of an internationally recognized establishment, where the gold concentration
was determined by fire assay. It should be noted that in the drilling program
from 2004 - 2010, all mineralised samples were sent to the SGS Laboratory
(“SGS”) in South Africa for fire assays.
*LLC Pakrut’s QA/QC protocols for sample assaying include the insertion of
commercial standards into each sample run prior to submission to the
laboratories, along with pulp duplicate samples taken after pulverisation of
the samples. These QA/QC samples are inserted at a rate of approximately 1 in
20 to 25 samples.
*Atotal of 2,906 commercial standard samples in 15 types with certified mean
and standard deviation values of gold grades have been adopted by LLC Pakrut
in routine sample batches to monitor the laboratory’s analytical accuracy
through its internal laboratory and Intertek. The standards range in grade
from 0.25 g/t gold up to 13.65 g/t.
*One type of standard blank sample, GLG304-3, was submitted to the LLC Pakrut
laboratory to monitor for any significant contamination during the assaying
process. This standard blank sample has an expected gold grade of 2.0 to 2.7
parts per billion (“PPB”), far below the lower detection limit of normal
fire assay and/or aqua regia methods.
*Pulp duplicates were sent to Intertek and/or SGS to assess the assays’ level
precision. A total of 3,396 duplicate samples were inserted in the routine
samples at a frequency beyond 1:20. All samples identified by LLC Pakrut as
containing gold values could be used for comparisons between LLC Pakrut’s
gold grades using the aqua regia digestion method and Intertek’s or SGS’s
results using fire assays. The results show that overall there is no
significant difference between the laboratories in the mineralised grade
ranges and the mineralised intervals derived from the two laboratories’
results are similar.
*Larger differences occurred in a few samples. For the pulp duplicates, the
variability between duplicate assays is caused primarily by the pulp
sub-sampling methodology, digestion (in this case using aqua regia) and the
final analysis.
*Additionally, SGS and Intertek each have their own laboratory QA/QC protocols
for sample assaying, including the insertion of standards, duplicates and
blanks. The final database of sample analyses contained only the fire assay
results returned from SGS and/or Intertek.
* For geophysical tools, spectrometers, handheld XRF instruments, etc, the
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.
* Nature of quality control procedures adopted (e.g. standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (i.e. lack of bias) and precision have been established.
Verification of sampling and assaying * The verification of significant intersections by either independent or * Besides verification of data provided by LLC Pakrut, an independent sampling
alternative company personnel. verification programme is detailed in Section
11
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-US&anchor=11&index=2&md5=b19495aeee3d060f38797418b340e7b2)
of this Report.
*No twin holes had been used. SRK as SRK had observed/inspected the on-going
drilling programme including sampling and sample preparation in 2011 and 2012.
All prepared samples were dispatched to Intertek for analytical process and
SRK selected duplicate pulps for verification. The competent person opined
there was no need to drill any twin holes for this project to achieve a
Mineral Resource estimate.
*Exploration data was properly documented and presented.
*CNG was listed on London AIM therefore material exploration data/progress of
the Pakrut Project was released publicly from time to time, and there was
competent person to endorse the exploration data prepared as it presented.
*Sample assay results were obtained from accredited laboratories such as SGS
and Intertek. By considering the reputation and internal QC protocols of such
laboratories, as well as external checks and verifications, there was no
adjustment needed to be performed to assay data.
* The use of twinned holes.
* Documentation of primary data, data entry procedures, data verification, data
storage (physical and electronic) protocols.
* Discuss any adjustment to assay data.
Location of data points * Accuracy and quality of surveys used to locate drill holes (collar and * Before drilling, survey was performed to ensure the rig installation was
down-hole surveys), trenches, mine workings and other locations used in placed on a correct and accurate location as designed. After the drilling was
Mineral Resource estimation. completed, a repeated survey was performed to check the location of drill
holes. Drill holes were sealed with cement and marked with borehole name,
depth and date.
*Downhole survey had been performed every 50 m footage using anti-magnetic
downhole compass. The drilling and downhole survey was logged by drillers with
standardised logging sheet. LLC Pakrut geologists checked the logs and drill
cores regularly to ensure the drilling programs were performed in line with a
designed standard.
*The sample data was prepared in a local UTM grid system that was adopted by
Tajikistan governmental geological department. This was not only to ensure the
accuracy of the survey of local mining area, but also to be compliant to local
country surveying and licensing requirement.
* Specification of the grid system used.
* Quality and adequacy of topographic control.
Data spacing and distribution * Data spacing for reporting of Exploration Results. * Sampling was conducted with a basic length of 1 m or 1.5 m as detailed in this
Report context. Samples were continuously taken to cover all drill cores and
mineralised sections (trench and underground channels).
*In Pakrut Project, sampling has been conducted in a relatively dense grid as
shown in
Figure 9‑1
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in this Report. More than 500 drillholes were completed in Pakrut area with a
total footage over 79,000 m, in addition to considerable amount of trenching
and underground channelling samples.
*The data spacing varied from 10 m to 100 m and generally within a grade of 10
m - 40 by 40 m at Pakrut deposit area, which is sufficient to support a
reasonable Mineral Resource estimate.
* Whether the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and classifications applied.
* Whether sample compositing has been applied.
Orientation of data in relation to geological structure * Whether the orientation of sampling achieves unbiased sampling of possible * Where possible the drill holes were designed and completed spacing in
structures and the extent to which this is known, considering the deposit exploration lines perpendicular to the overall strike azimuth of gold veins.
type.
*Holes have been drilled at varying dip angle from -55° - -90° depending on
terrain and to achieve the best angle to intercept the mineralisation at near
perpendicular, by considering the realistic drilling techniques.
*There was no sample bias related to the angle of drilling.
*The dip angle and azimuth were used in a 3D modelling to reflect actual
sampling location and orientation.
*Channel samples taken from trenches and underground crosscuts were generally
designed and completed perpendicular to the vein strike orientation.
* If the relationship between the drilling orientation and the orientation of
key mineralised structures is considered to have introduced a sampling bias,
this should be assessed and reported if material.
Sample security * The measures taken to ensure sample security. * The sample security prior to LLC Pakrut’s management of this project is
unknown. Previous sample rejects and duplicates are not available. Those
samples were not used for resource estimation.
*LLC Parkut’s samples were taken and secured by CNG. Cores and channel chips
were packed and transported to the laboratory located in Dushanbe with CNG’s
own vehicles and secured by Company staff.
*In the laboratory located in Dushanbe, the samples were secured by CNG
security staff, and all remained drill cores, coarse rejects and pulps were
secured at a warehouse near LLC Pakrut office building in Dushanbe.
*Pulp samples for SGS or Intertek chemical assaying were transported by
international commercial courier.
Audits or reviews * The results of any audits or reviews of sampling techniques and data. * Site visits and sampling verification had been performed by SRK geologists.
Exploration, sampling techniques, QA/QC protocols and data collection had been
reviewed during the time to ensure correct procedures and protocols were
followed and that the data collected was reliable and accurate for Mineral
Resource estimation and reporting to the JORC Code (best practice).
*Snowden Consultants, an independent consultancy had been engaged by CNG to
review the Mineral Resource estimation and resource estimates were conducted
by Snowden in 2012. Considering some updates of in-fill drillings, there were
no material discrepancies between the resource results estimated by SRK and
Snowden.
Section 2 Reporting of Exploration Results
* Criteria * JORC Code explanation * Commentary - Assessment of the Pakrut Project
* Mineral tenement and land tenure status * Type, reference name/number, location and ownership including agreements or * Tenure information and project location are detailed in Section 3 of this
material issues with third parties such as joint ventures, partnerships, report.
overriding royalties, native title interests, historical sites, wilderness or
national park and environmental settings.
* The security of the tenure held at the time of reporting along with any known
impediments to obtaining a licence to operate in the area.
* Exploration done by other parties * Acknowledgment and appraisal of exploration by other parties. * Previous exploration were summarised in relevant reports as a conclusion of
each stage. Where possible SRK reviewed the exploration data derived from the
previous exploration and made independent sampling verification.
*LLC Pakrut have conducted the exploration since 2004 and the progress/results
have been disclosed in several public release on AIM market and in several
resource estimates conducted by Snowden, SRK as well as GeoLogix Mineral
Resource Consultants.
*Mineral Resource estimates in compliance with the JORC Code for the Pakrut
Project were initially done by Snowden in 2007.
* Geology * Deposit type, geological setting and style of mineralisation. * Detailed in Section 5 and 6 of this Report.
* Drill hole Information * A summary of all information material to the understanding of the exploration * Drilling information is summarised in Section 7 of this Report and a summary
results including a tabulation of the following information for all Material of database used for Mineral Resource estimates is presented in Section 12.
drill holes:
*More detailed individual exploration drillhole sample results and downhole
intercepts are available on request.
* easting and northing of the drill hole collar
* elevation or RL (Reduced Level - elevation above sea level in metres) of the
drill hole collar
* dip and azimuth of the hole
* down hole length and interception depth
* hole length.
* If the exclusion of this information is justified on the basis that 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, maximum * The sample data derived from drilling was compiled in an integrated database
and/or minimum grade truncations (e.g. cutting of high grades) and cut-off with information of collar, downhole survey and sample assay.
grades are usually Material and should be stated.
*Evaluation of outliers was performed according to the basic analysis of
composite samples. Grade capping was applied for eliminating extreme high
grade outliers at each mineralised vein.
*No metal-equivalence approaches were applied in the Pakrut Project
*
*
* Where aggregate intercepts incorporate short lengths of high grade 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 should be
clearly stated.
* Relationship between mineralisation widths and intercept lengths * These relationships are particularly important in the reporting of Exploration * The mineralised bodies were modelled according to the sample interceptions and
Results. mineralisation widths were reported as “true thickness” according to the
modelled bodies.
*The geometry of the mineralisation with respect to the drillhole angle was
known.
* If the geometry of the mineralisation with respect to the drill hole angle is
known, its nature should be reported.
* If it is not known and only the down hole lengths are reported, there 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 intercepts * Geological map and sections with drillholes are shown in relevant figures in
should be included for any significant discovery being reported These should Section 5.
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 practicable, * It is considered the Exploration Results for Pakrut Project have been reported
representative reporting of both low and high grades and/or widths should be in a format of summarised information with balanced reporting protocol, such
practiced avoiding misleading reporting of Exploration Results. as weighted/estimated average grade, estimated tonnage constrained to
wireframes, volume range.
* Other substantive exploration data * Other exploration data, if meaningful and material, should be reported * SRK is not aware of any other material or substantive exploration data that
including (but not limited to): geological observations; geophysical survey has not been reported.
results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
* Further work * The nature and scale of planned further work (e.g. tests for lateral * Exploration potential has been discussed in this Report.
extensions or depth extensions or large-scale step-out drilling).
*CNG reviews its exploration plan from time to time. SRK is aware CNG is making
a detailed exploration plan for further work which could be disclosed later.
* Diagrams clearly highlighting the areas of possible extensions, including the
main geological interpretations and future drilling areas, provided this
information is not commercially sensitive.
Section 3 Estimation and Reporting of Mineral Resources
Criteria JORC Code explanation Commentary - Assessment of the Pakrut Project
Database integrity Measures taken to ensure that data has not been corrupted by, for example, The original exploration data was provided by LLC Pakrut Diamond drilling,
transcription or keying errors, between its initial collection and its use for reverse circulation drilling, trenching and underground channelling sample
Mineral Resource estimation purposes. data were integrated and compiled for Mineral Resource estimation.
Prior to using the data for Mineral Resource estimation, SRK performed due
cross check of the digital data and constructed the database.
An independent sampling verification programme was performed in 2011, and
continued in 2012 and 2014. SRK is satisfied with performance of duplicate
sample checks.
Data validation procedures used.
Site visits Comment on any site visits undertaken by the Competent Person and the outcome SRK Competent Persons visited the projects in 2011, 2012 and 2013. Data
of those visits. verification was performed by SRK field geologists were approved and closely
supervised by SRK team leader (Competent Person) Dr Anshun Xu FAusIMM
(Director, Principal Geologist).
If no site visits have been undertaken indicate why this is the case.
Geological interpretation Confidence in (or conversely, the uncertainty of ) the geological The geological interpretation was based on lithological, assay, and structure
interpretation of the mineral deposit. and geotechnical information.
Drilling interceptions provided general confidence of the interpretation of
gold mineralised veins. Ground geochemistry, geological mapping, lithological
and geotechnical logging and channel (trenching) sample assays provided
additional confidence of the mineralisation and the interpretation of
mineralised veins at the surface.
Geological continuity has been assessed by reference of cross sections
interpreted by chief and senior geologists form LLC Pakrut and SRK.
SRK’s interpretation of mineralised veins/bodies was produced as a 3D
wireframe model, which was supported by a similar interpretation from CNG.
Nature of the data used and of any assumptions made.
The effect, if any, of alternative interpretations on Mineral Resource
estimation.
The use of geology in guiding and controlling Mineral Resource estimation.
The factors affecting continuity both of grade and geology.
Dimensions The extent and variability of the Mineral Resource expressed as length (along Wireframe and block dimensions are discussed in Section 12.
strike or otherwise), plan width, and depth below surface to the upper and
lower limits of the Mineral Resource.
The wireframes are used to constrain the block estimation.
Estimation and modelling techniques The nature and appropriateness of the estimation technique(s) applied and key The Mineral Resource estimation presented in SRK’s report was completed
assumptions, including treatment of extreme grade values, domaining, using MineSight and Surpac software.
interpolation parameters and maximum distance of extrapolation from data
points. If a computer assisted estimation method was chosen include a
Prior to modelling and estimation, the database was verified by SRK and both
description of computer software and parameters used. geological interpretations (including the interpretations disclosed
previously) made by SRK and CNG have been reviewed.
The availability of check estimates, previous estimates and/or mine production
records and whether the Mineral Resource estimate takes appropriate account of
Wireframes of mineralised zones were modelled according to the interpretation
such data. made based on lithological, assay, and structure and geotechnical information.
Resource domains (wireframe of mineralisation) in the Pakrut Project were
modelled using a cut-off grade of 0.5 g/t Au.
Sample assays were composited to uniform 1 m length in the mineralised domains
(wireframe of mineralised zones) according to statistics of sample assays.
Outliers of extreme high grades were assessed according to basic statistics of
the composite assays and grade capping has been applied to the assays in each
mineralised zone/vein.
Geostatistical analysis has been performed and variography was modelled with
nugget effect and spherical structure(s).
Kriging method with its variations such as Multiple Indicator Kriging has been
employed for the grade estimation where possible, and an inverse distance
weighted (“IDW”) method was applied to the mineralised zones accordingly,
where the ordinary kriging was not applicable.
Detailed parameters for grade estimation are described in this report.
Visual validation of block grades against drillhole grades; and global
statistical validation of the mean composite grades versus block estimates
have been applied. SRK is satisfied that the estimation was performed
generally honoured to the drilling data.
The assumptions made regarding recovery of by-products.
Estimation of deleterious elements or other non-grade variables of economic
significance (e.g. sulphur for acid mine drainage characterisation).
In the case of block model interpolation, the block size in relation to the
average sample spacing and the search employed.
Any assumptions behind modelling of selective mining units.
Any assumptions about correlation between variables.
Description of how the geological interpretation was used to control the
resource estimates.
Discussion of basis for using or not using grade cutting or capping.
The process of validation, the checking process used, the comparison of model
data to drill hole data, and use of reconciliation data if available.
Moisture Whether the tonnages are estimated on a dry basis or with natural moisture, Specific gravity analysis and grade assaying were conducted on a dry basis;
and the method of determination of the moisture content. therefore the tonnages were estimated on a dry basis.
Moisture factor has not been considered into Mineral Resource estimation.
Cut-off parameters The basis of the adopted cut-off grade(s) or quality parameters applied. A cut-off grade of 0.75 g/t Au has been applied for the resource estimation
with assumptions as below.
Gold price: 1,250 United States dollars (USD) per ounce,
A combined direct cash cost for mining and processing (excluding
Administrative and General Costs) at approximately USD 30 per tonne ore feed.
The parameters assumed by SRK are used to test for “reasonable prospects for
eventual economic extraction”. This is showing marginal economic potential
of the Pakrut Project’s resource.
In SRK’s opinion a cut-off grade of 0.75 g/t Au is suitable for the Mineral
Resource reporting for the CNG Gold Project.
Mining factors or assumptions Assumptions made regarding possible mining methods, minimum mining dimensions An underground mining with cut and fill method was considered for the Pakrut
and internal (or, if applicable, external) mining dilution. It is always Project, as designed by the FS. They are detailed in Section 14.
necessary as part of the process of determining reasonable prospects for
eventual economic extraction to consider potential mining methods, but the
The direct mining cost is estimated at approximately USD 20 - USD 22 per tonne
assumptions made regarding mining methods and parameters when estimating ore mined, including the costs of the administrative and general costs of the
Mineral Resources may not always be rigorous. Where this is the case, this mine.
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 amenability. The FS competed by BGRIMM has designed the metallurgical flowsheet and is
It is always necessary as part of the process of determining reasonable detailed in Section 15.
prospects for eventual economic extraction to consider potential metallurgical
methods, but the assumptions regarding metallurgical treatment processes and
A combined processing and metallurgical cost at approximately USD 12 - USD 15
parameters made when reporting Mineral Resources may not always be rigorous. per tonne of ore feed was assumed (including the costs of the administrative
Where this is the case, this should be reported with an explanation of the and general costs of the plants) when considering the mine economics for
basis of the metallurgical assumptions made. determining the resource cut-off grade.
Environmental factors or assumptions Assumptions made regarding possible waste and process residue disposal Environment costs were considered in the costs of mining, processing and
options. It is always necessary as part of the process of determining general & administrative costs.
reasonable prospects for eventual economic extraction to consider the
potential environmental impacts of the mining and processing operation. While
No other substantial environmental risks were identified or assumed during the
at this stage the determination of potential environmental impacts, Mineral Resource estimation.
particularly for a greenfield project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
Environmental factors and assumptions are disclosed in Section 18.
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
Bulk density Whether assumed or determined. If assumed, the basis for the assumptions. If The density of ore was determined according to sample data that collected at
determined, the method used, whether wet or dry, the frequency of the the project area.
measurements, the nature, size and representativeness of the samples.
Instead of bulk samples, small volumetric samples weighing about 5 - 10 kg
were collected representing both fresh ores and oxidised ores.
The density information is detailed in Section 12.7 “Specific Gravity”.
Average ore density calculated from the known sample results is about 2.62
g/cm3.
The bulk density for bulk material must have been measured by methods that
adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit.
Discuss assumptions for bulk density estimates used in the evaluation process
of the different materials.
Classification The basis for the classification of the Mineral Resources into varying The classification of Mineral Resource reflects confidence of the estimation
confidence categories. basing on both geological continuity and geostatistical analysis. Therefore
SRK considered both the nature of drilling controls (interceptions) and
distance and numbers of informing samples (drillholes).
The classification of each mineralised zones at Pakrut Project is detailed in
Section 12.11.
The Competent Person is satisfied that the result appropriately reflects the
Competent Person’s view of the deposit.
Whether appropriate account has been taken of all relevant factors (i.e.
relative confidence in tonnage/grade estimations, reliability of input data,
confidence in continuity of geology and metal values, quality, quantity and
distribution of the data).
Whether the result appropriately reflects the Competent Person’s view of the
deposit.
Audits or reviews The results of any audits or reviews of Mineral Resource estimates. This Mineral Resource estimate is an update of the Mineral Resource statement
in a Resource and Reserve Report prepared by SRK in 2012. Both internal and
external peer reviews have been applied to that estimation
Peer reviews of this resource estimation addressed in this Report have been
performed within SRK internally.
SRK is not aware of any other audits or reviews that have been undertaken to
this Mineral Resource estimation.
Discussion of relative accuracy/ confidence Where appropriate a statement of the relative accuracy and confidence level in Within certain parts of the deposit, the drill spacing and grade continuity is
the Mineral Resource estimate using an approach or procedure deemed sufficiently detailed to allow for a local estimation of the gold grades.
appropriate by the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the relative accuracy of
The on-going underground development, as well as previous underground tunnels
the resource within stated confidence limits, or, if such an approach is not have revealed that the gold mineralisation discovered are consistent with the
deemed appropriate, a qualitative discussion of the factors that could affect grades and geometry reported in this Report.
the relative accuracy and confidence of the estimate.
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.
These statements of relative accuracy and confidence of the estimate should be
compared with production data, where available.
Section 4 Estimation and Reporting of Ore Reserves
Criteria JORC Code explanation Commentary - Assessment of the Pakrut Project
Mineral Resource estimate for conversion to Ore Reserves Description of the Mineral Resource estimate used as a basis for the Detailed in section 13.
conversion to an Ore Reserve.
The Mineral Resources are reported inclusive of the Ore Reserves.
Clear statement as to whether the Mineral Resources are reported additional
to, or inclusive of, the Ore Reserves.
Site visits Comment on any site visits undertaken by the Competent Person and the outcome Detailed in section 5.5.
of those visits.
SRK has not conducted a site visit since September 2014. Image and video
If no site visits have been undertaken indicate why this is the case. information were provided for a desktop review, while a physical site visit is
planed to verify the new exploration data since 2014 in May 2023.
Study status The type and level of study undertaken to enable Mineral Resources to be Detailed in section 14.1. Overall, SRK converted ore reserves based on
converted to Ore Reserves. validated assumptions of Stage 1 in the FS, latest update of mineral resources
and current mine plan.
The Code requires that a study to at least Pre-Feasibility Study level has
been undertaken to convert Mineral Resources to Ore Reserves. Such studies
will have been carried out and will have determined a mine plan that is
technically achievable and economically viable, and that material Modifying
Factors have been considered.
Cut-off parameters The basis of the cut-off grade(s) or quality parameters applied. Detailed in section 14.2.
The cut-off grade estimation is based on a cost and revenue assumption, with
inputs from mining and processing as well as metallurgical considerations.
Mining factors or assumptions The method and assumptions used as reported in the Pre-Feasibility or Detailed in section 15.
Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e.
either by application of appropriate factors by optimisation or by preliminary
The selected mining methods have been practised widely in the mining industry.
or detailed design). It’s conventional method and technically feasible.
The choice, nature and appropriateness of the selected mining method(s) and
The stope layout and size have been practised a long time since 2015. SRK
other mining parameters including associated design issues such as pre-strip, considered these assumptions are technically feasible to support future
access, etc. mining.
The assumptions made regarding geotechnical parameters (eg pit slopes, stope
The mining recovery and dilution rates are detailed in section 14.3.
sizes, etc), grade control and pre-production drilling.
The minimum mining width is 1.0 m.
The major assumptions made and Mineral Resource model used for pit and stope
optimisation (if appropriate).
Inferred Mineral Resources were treated as waste rocks with a gold grade of
zero.
The mining dilution factors used.
Pakrut Project has completed its infrastructure construction at the time of
The mining recovery factors used. this reporting. There is no further renovation or expansion plan in place. It
can be reasonably expected that the practises would guide future production
Any minimum mining widths used. well.
The manner in which Inferred Mineral Resources are utilised in mining studies
and the sensitivity of the outcome to their inclusion.
The infrastructure requirements of the selected mining methods.
Metallurgical factors or assumptions The metallurgical process proposed and the appropriateness of that process to Detailed in section 16.
the style of mineralisation.
There is no further renovation or expansion plan in place. It can be
Whether the metallurgical process is well-tested technology or novel in reasonably expected that the practises would guide future production well.
nature.
The nature, amount and representativeness of metallurgical test work
undertaken, the nature of the metallurgical domaining applied and the
corresponding metallurgical recovery factors applied.
Any assumptions or allowances made for deleterious elements.
The existence of any bulk sample or pilot scale test work and the degree to
which such samples are considered representative of the orebody as a whole.
For minerals that are defined by a specification, has the ore reserve
estimation been based on the appropriate mineralogy to meet the
specifications?
Environmental The status of studies of potential environmental impacts of the mining and Detailed in section 19.
processing operation. Details of waste rock characterisation and the
consideration of potential sites, status of design options considered and,
There is no further renovation or expansion plan in place. It can be
where applicable, the status of approvals for process residue storage and reasonably expected that the studies available now would guide future
waste dumps should be reported. production well.
Infrastructure The existence of appropriate infrastructure: availability of land for plant Detailed in section 17.
development, power, water, transportation (particularly for bulk commodities),
labour, accommodation; or the ease with which the infrastructure can be
There is no further renovation or expansion plan in place. It can be
provided, or accessed. reasonably expected that the infrastructures would support future production
well.
Costs The derivation of, or assumptions made, regarding projected capital costs in Detailed in section 20.
the study.
Cost analysis is based on actual production data and records from LLC Pakrut.
The methodology used to estimate operating costs. The forecast has considered the performance in recent three years, during
which the operation has been seen stable.
Allowances made for the content of deleterious elements.
The source of exchange rates used in the study.
Derivation of transportation charges.
The basis for forecasting or source of treatment and refining charges,
penalties for failure to meet specification, etc.
The allowances made for royalties payable, both Government and private.
Revenue factors The derivation of, or assumptions made regarding revenue factors including Production schedule is shown in section 15.6.3.
head grade, metal or commodity price(s) exchange rates, transportation and
treatment charges, penalties, net smelter returns, etc.
Prices are detailed in section 18.3.
The derivation of assumptions made of metal or commodity price(s), for the
Costs are detailed in section 20.
principal metals, minerals and co-products.
Market assessment The demand, supply and stock situation for the particular commodity, Detailed in section 18.
consumption trends and factors likely to affect supply and demand into the
future.
Overall, the gold bullion has been and will be mainly sold to National Bank of
Tajikistan.
A customer and competitor analysis along with the identification of likely
market windows for the product.
Price and volume forecasts and the basis for these forecasts.
For industrial minerals the customer specification, testing and acceptance
requirements prior to a supply contract.
Economic The inputs to the economic analysis to produce the net present value (NPV) in Detailed in section 21.
the study, the source and confidence of these economic inputs including
estimated inflation, discount rate, etc.
The economic analysis is based on a forecasted production schedule considered
by mining and processing (including metallurgical) sectors with high
NPV ranges and sensitivity to variations in the significant assumptions and confidence according to recent production performance, and forecasted
inputs. commodity price and costs. The variation of commodity price will impact on
project economics which has been discussed in the report.
Social The status of agreements with key stakeholders and matters leading to social Detailed in section 19.17. It is assumed no social issues to impact much on
licence to operate. future operations.
Other To the extent relevant, the impact of the following on the project and/or on A risk analysis was detailed in section 24. In general, a production rate
the estimation and classification of the Ore Reserves: around 2,000 tpd is considered achievable with high confidence.
Any identified material naturally occurring risks.
The status of material legal agreements and marketing arrangements.
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.
Classification The basis for the classification of the Ore Reserves into varying confidence Detailed in section 14.4.
categories.
Proved and Probable Reserves have been classified accordingly, based on
Whether the result appropriately reflects the Competent Person’s view of the modifying factors and Mineral Resource classifications.
deposit.
The proportion of Probable Ore Reserves that have been derived from Measured
Mineral Resources (if any).
Audits or reviews The results of any audits or reviews of Ore Reserve estimates. The Report has been peer reviewed by other consultants.
Discussion of relative accuracy/ confidence Where appropriate a statement of the relative accuracy and confidence level in The Ore Reserve estimate of SRK was reviewed by technicians of Pakrut Project.
the Ore Reserve estimate using an approach or procedure deemed appropriate by SRK was told that both the tonnage and grade are close to those estimated by
the Competent Person. For example, the application of statistical or themselves.
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 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.
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 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.
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