Drilling/Production Report
21/11/2022 07:00
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RNS Number : 9207G URA Holdings PLC 21 November 2022
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TO BE IN THE PUBLIC DOMAIN.
URA Holdings plc
("URA" or the "Company")
Independent Maiden JORC Mineral Resource Estimate for the Gravelotte Emerald
Mine
URA Holdings plc, the Main Market listed exploration company with assets in
both the Republic of South Africa and Zambia, is pleased to announce an
independent maiden JORC (2012) Mineral Resource estimate ("the JORC Report")
for its 74% owned Gravelotte Emerald Mine ("GEM" or Gravelotte").
Highlights
· Total Independent maiden JORC (2012) Mineral Resource Estimate of
29 million carats of contained emerald
· Maiden JORC Mineral Resource completed by ACA Howe comprises of:
o Cobra Deposit - 1.2Mt @6.4 g/t for 19.4 million carats of contained
emerald
o Discovery Deposit - 0.7 Mt @ 5.7 g/t for 9.6 million carats of contained
emerald
· 12 Additional JORC (2012) Exploration Targets (as defined below)
totalling between 168 million carats and 344 million carats, as detailed in
Table 2
· JORC resource substantially larger than indicated at the time of
purchase
· Mine, processing plant and infrastructure upgrades and
refurbishment currently in progress with the goal of restarting production in
2023
Bernard Olivier, Chief Executive Officer of URA commented:
"We are very pleased to report the first ever formal resource estimation for
the Gravelotte Emerald Mine, despite its long history of production,
including, being one of the world's largest producers of emeralds in the
1960's. This JORC (2012) Resource estimate of 29 million carats of contained
emerald fully justifies the Directors belief, at the time of acquisition, that
a significant emerald resource remains unmined at the Gravelotte Emerald Mine.
The multiple large JORC Exploration Targets of between 168 million carats and
344 million carats, provide potential for significantly expanding the maiden
JORC resource."
Edward Nealon, Chairman of URA commented:
"The establishment of a maiden JORC resource estimation of this magnitude for
the Gravelotte Emerald Mine is a truly exceptional achievement. The combined
JORC mineral resource of 29 million carats of contained emeralds far exceeded
our expectations. To put the numbers into perspective, if we conservatively
use the average price of $9 per carat as achieved by Gemfields (AIM:GEM) in
September 2022 for their lower grade (commercial grade) emeralds only, then
the total contained in situ JORC Resource of 29 million carats has an
estimated value of around $261 million. This figure excludes the additional
168 million to 344 million carats in our JORC exploration Target. We are now
focussing on unlocking this in situ value by refurbishing the mine and
infrastructure and upgrading the existing processing facilities with the aim
of restarting emerald mining and processing as soon as possible."
Enquiries:
URA Holdings plc +44 (0)746 368 6497
Chief Executive Officer
Bernard Olivier
Chief Operating Officer
Jeremy Sturgess-Smith
info@uraholdingsplc.co.uk (about%3Ablank)
Peterhouse Capital Limited +44 (0)20 7469 0930
Corporate Broker
Lucy Williams
Duncan Vasey
Background
The maiden Resource estimate, reported in compliance with JORC (2012), was
substantially larger than indicated when Gravelotte was purchased by the
Company in March 2022. Historical exploration work suggested a significant
exploitable emerald resource still remains at Gravelotte; however, the maiden
formal Mineral Resource established by ACA Howe's JORC compliant Report is
more than three times that previously suggested, including by Magnum Mining.
Furthermore, while the JORC Report took an overview of the licence area as a
whole, it focussed on two of the most promising areas. As stated above, taking
into account the whole licence area the potential emerald content is much more
substantial, as indicated by the JORC Exploration Target stated above. The
maiden JORC Resource at this historically major mine area is of major
international significance.
As previously explained, the resources so far explored or reviewed are
generally close to surface and exploitable through open pit operations,
although historical drill hole data suggests that further exploration is
warranted at depth.
Much of the historic mining infrastructure remains in place and can be
upgraded for reuse. While the Company will need to acquire a modest amount of
new mining and processing equipment, we expect to be able to bring Gravelotte
back into initial production relatively quickly.
The most recent emerald auction carried out in September 2022 by Gemfields
Group Limited achieved an average price for low to mid quality emeralds of
$9.01 per carat, one of the highest ever. URA would expect a significant
proportion of its emeralds would be of higher quality; however, even at the
quite conservative price achieved in the Gemfields auction, the current JORC
Resource estimate of 29 million carats alone would have an estimated value of
some $261m.
Details of ACA Howe's JORC Report are summarised below.
JORC Mineral Resource
ACA Howe was commissioned in April 2022 to undertake a Mineral Resource
Estimate in respect of the Gravelotte Emerald Mine, South Africa.
The Mineral Resources have been reported in accordance with the guidelines of
the "Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (2012 Edition)" ("JORC Code").
The Mineral Resource statement for Gravelotte is presented in Table 1 below.
The estimate is in respect of in situ material.
Table 1: Inferred Mineral Resource estimate for the GEM emerald deposit
Deposit Zone Category Tonnage (million tonnes) Emerald-Bearing Schist(8) Grade (g/t) Emerald Tonnes(8) Emerald Carats (million carats)(8)
Cobra Inferred 1.2 6.4 3.9 19.4
Discovery Inferred 0.7 5.7 1.9 9.6
Total Inferred 1.9 5.8 29.0
Notes:
1. Mineral Resources were estimated using the definitions and
guidelines of the JORC Code.
2. Assigned grades are derived from limited historical production and
bulk sampling.
3. Tonnages are derived from modelling of interpreted emerald-bearing
schist based on historical drilling. A payability factor has been applied as
acknowledgement that it has not been possible to model controls on
mineralisation within the schist due to limited data.
4. Both the estimates for Cobra and Discovery have been depleted by an
approximate tonnage based on historical information and limited historical
records.
5. Inferred Mineral Resources have a large degree of uncertainty as to
their existence and whether they can be mined economically. Mineral Resources
that are not Mineral Reserves do not have demonstrated economic viability.
6. The quantity and grade of reported Inferred Mineral Resources in
this estimation are uncertain in nature and there has been insufficient
exploration to define these Inferred Mineral Resources as an Indicated or
Measured Mineral Resource and it is uncertain if further exploration will
result in upgrading them to an Indicated or Measured Mineral Resource
category.
7. A bulk density of 2.7 g/cm(3) was used for the modelled
emerald-bearing schist. The value used is based on the figure used by previous
owners and assessment of lithologies intersected in drilling.
8. The measure in Tonnage reflects the quantity after applying a 50%
payability.
Figure 1: Model Plan view of project geology, covering main prospect areas.
JORC Exploration Targets
Exploration Targets are reported in accordance with Section 18 of the JORC
Code and the following should be noted:
· Exploration Targets must be expressed so that it cannot be
misrepresented or misconstrued as an estimate of Mineral Resources or Ore
Reserves;
· any statement referring to potential quantity and grade of the
target must be expressed in ranges
· potential quantity and grade as reported in respect of the
Exploration Targets are conceptual in nature;
· for these additional areas, there has been insufficient
exploration to define a Mineral Resource; and
· it is uncertain if further exploration (as planned by the
Company) will result in the determination of a Mineral Resource.
It is not guaranteed that the mineralisation will extend as far as the
Exploration Target upper estimates have been extrapolated. There is
significant uncertainty implicit in the estimation of an Exploration Target as
defined within the JORC Code.
The JORC Code definition of an Exploration Target is as follows:
"An Exploration Target is a statement or estimate of the exploration potential
of a mineral deposit in a defined geological setting where the statement or
estimate, quoted as a range of tonnes and a range of grade (or quality),
relates to mineralisation for which there has been insufficient exploration to
estimate a Mineral Resource."
The JORC Exploration Targets (See Table 2 below) are all areas where the
current database for the GEM property indicates that there is geological
continuity with adjacent Mulati Formation ("MF") emerald-bearing schists.
Table 2: JORC Exploration Target mineralisation for the Gravelotte Emerald
Mine
Exploration Target Tonnage Range Grade Emerald Content
(MT) (g/t) Million carats
Min Max Min Max Min Max
Cobra Pit 0.6 0.8 4.8 8 14 32
Cobra Pit Far North 0.7 0.9 4.8 8 17 36
Cobra Pit South 0.4 0.5 4.8 8 10 20
Discovery Main 0.4 0.5 4.5 7 9 18
Discovery West 0.35 0.45 4.5 7 8 16
Discovery North 0.5 0.7 4.5 7 11 25
Discovery South 0.4 0.5 4.5 7 9 18
Discovery Hill 3.3 4 4.5 7 74 140
Cobra S & Discovery West 0.3 0.4 4.5 7 7 14
Sable Kop 0.1 0.2 4.5 7 2 7
Beryl Kop East 0.2 0.3 2.2 5 2 8
Beryl Kop West 0.4 0.5 2.2 5 4 13
Total carats (million) 168 344
Notes:
1. Exploration Targets are conceptual in nature and are not Mineral
Resources.
2. The tonnage, grade and content ranges as presented are meant to
impart the conceptual nature of the Exploration Target in line with the JORC
Code.
3. Exploration Targets were estimated using the definitions and
guidelines of the JORC Code.
4. An Exploration Target is material that has a reasonable degree of
geological confidence but for which there is insufficient exploration to
define a Mineral Resource. It is not certain that further exploration will
result in the target being delineated as a Mineral Resource.
5. Assigned grades are derived from limited historical production and
bulk sampling.
6. Tonnages are derived from modelling of interpreted emerald-bearing
schist based on historical drilling. A payability factor has been applied as
acknowledgement that it has not been possible to model controls on
mineralisation within the schist due to limited data.
7. Both the estimates for Cobra and Discovery have been depleted by an
approximate tonnage based on historical information and limited historical
records.
Cobra Main Zone
Cobra Main Zone is defined as that area below the Inferred Resource from 10.5
to 14 Levels (510 - 485 RL). The majority of the drilling by previous owners
did not test these depths, however the deepest hole intersected
emerald-bearing schist down to 490 RL.
Cobra Far North
The Cobra Far North area extends from approximately 1010N to 1300N, from the
north-eastern limit of the Cobra Inferred Resource. Little exploration has
been undertaken further north than 1300N. However, preliminary pitting by
Magnum in this area has identified MF reaction-type zones between 1300N and
the airstrip.
ACA Howe considers it reasonable to assume that geological continuity exists
in this area along strike from the Cobra pit.
Figure 2. Satellite image of the Gravelotte Emerald Mine showing the location
of the Cobra and Discovery Pits.
Cobra South
Limited sub-surface data is available on the Cobra South area, however
geological mapping and past mining provides evidence of geological continuity
and continuity of emerald-bearing schist from 570N to approximately 320N. The
Exploration Target has been extended to the deepest drill intersection of
emerald-bearing schist at 10 Level (approximately 45 metres ("m") below
surface).
Discovery Main (below the Inferred Resource)
Discovery Main, in part, is the focus of the Micro Fracture Related ("MFR")
style of mineralisation. A number of angled holes were drilled by previous
owners on the north facing benches of the pit, where the +/- 60⁰ core holes
drilled northwards by Golden Dumps contain significant MRF mineralisation for
long distances down-hole and along the section lines. The deepest emerald
intersection at Discovery is approximately 200 m below surface or
approximately 155 m below the Inferred Resource, though this was a single
emerald grain. The deepest zone with more consistent emerald grain counts is
approximately 115 m below surface or 70 m below the Inferred Resource.
Therefore, the extension of the Exploration Target to only 30 m below the
Inferred Resource is conservative.
Discovery West to Far West
Discovery West to Far West covers the extension of the Inferred Resource at
Discovery, westwards to the Cobra track. Historical records show that a small
number of drill holes were completed in this area, but no downhole data is
available, other than a single reference to emeralds having been found in
three of these holes. However, interpretation of airborne geophysical data
appears to show what may be the geophysical reflection of a shear zone
extending the west of the Inferred Resource in the same area.
Discovery North
Discovery North covers the northern face of the pit for approximately 30
metres north to meet up with the Beryl and Sable Kop zones. Historical records
show that this area has been tested by drilling in the past, but no downhole
data is currently available. However, approximately 100 metres to the east, in
an analogous geological area along strike from Discovery East (in MF schists),
data from 1980's drilling shows that a number of emeralds were recovered in
drill hole samples. This area is parallel to the strike of the Discovery pit
and may be the northern extension of the Discovery MF package.
Discovery South
Discovery South is located opposite Discovery North covering the southern face
and adjacent to the Discovery Hill mineralisation. A fence of drilling extends
southwest from the Discovery pit for 150 m. Significant consecutive emerald
grain counts were recorded in schist in three drill holes, up to 30 or 40 m
from the southern edge of the pit.
Discovery Hill
Discovery Hill comprised an 14-18ha area of the north facing hill slope below
the quartz deposit at the crest of the Discovery hill and is possibly the most
important of the Discovery Exploration Targets, offering significant emerald
recoveries from both trenches and drill holes and exposing MF metavolcanics
over its entire surface area. The MF metavolcanics may extend as much as 100 m
below surface here.
Discovery West/Far West to Cobra South
ACA Howe has not located any prior detailed mapping of this area. However,
there is good indication that the MF metavolcanics do occur in at least part
of the area and given its location between both the Discovery and Cobra South
mineralised zones, and on strike with both, it is a reasonable assumption that
this area could be mineralised. Ground examination of this area suggests that
whereas the other Exploration Targets should contain relatively good drilling
ground, this area may be more challenging and triple tube drilling may be
necessary.
Figure 4. Discover Pit 3D model
Approximate dimensions for the twelve Exploration Targets are provided in
Table 3 below.
Table 3. Exploration target dimensions
Zone Exploration Target Approximate Dimensions (Length x Width x Depth) (m)
Cobra Main Zone 425 x 50 x 25
Far North 300 x 80 x 25
South 250 x 30 x 45
Discovery Main 400 x 30 x 30
West/Far West 200 x 50 x 30
North 300 x 50 x 30
South 300 x 40 x 30
Hill 450 x 400 x 15
Between Discovery West and Cobra South 130 x 70 x 30
Beryl Kop East 250 x 25 x 30
West 350 x 30 x 30
Sable Kop 150 x 25 x 30
Competent Person's Statement
The information contained in this announcement relates to a Mineral Resource
Estimate report prepared by Mr Roy Spencer, Senior Associate Geologist of ACA
Howe. Mr Spencer is a qualified geologist, registered with the Australasian
Institute of Mining and Metallurgy and is a Competent Person as defined by the
JORC Code. Mr Spencer has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration, and to the activity
being undertaken, to qualify as a Competent Person. Mr Spencer has reviewed
and approved the information in this announcement.
For the purposes of UK MAR, the person responsible for arranging the release
of this announcement on behalf of URA is Dr Bernard Olivier, Chief Executive
Officer of URA Holdings Plc.
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