REG - Kavango Resources - ZIM: Tailings Resource Upgrade Nara Gold Project
16/04/2024 07:00
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RNS Number : 7731K Kavango Resources PLC 16 April 2024
16 April 2024
Kavango Resources
("Kavango" or "the Company")
ZIM: Tailings Resource Upgrade Nara Gold Project
Kavango Resources plc (LSE: KAV), the Southern Africa focussed metals
explorer, is pleased to announce that it has received an updated Resource
Estimate (the "Resource Estimate") for the largest tailings dump at the Nara
Gold Project ("Nara") in Zimbabwe.
HIGHLIGHTS
- The updated Resource Estimate for the first time provides a Measured
category of mineral resource.
- Resource Estimate concludes that the two Nara tailings dumps tested
together contain:
- Upgrade of 77,664 tonnes ("t") to Measured Category, at an average
of 0.54 grams per tonne ("g/t") gold, for a total of 1,346 ounces of gold
contained.
- Indicated Mineral Resource of 221,934t at an average of 0.65 g/t
gold, for a total of 4,637 ounces gold contained.
- An Inferred resource of 12,178t at 0.66g/t gold, for a total of 257
ounces gold contained.
- Previously identified upside potential at the tailings dump remains
in addition, highlighting the opportunity to increase tonnage at
as-yet-untested depths.
- Testwork to assess the optimal processing route is now underway at a
local facility.
Ben Turney, Chief Executive of Kavango Resources, commented:
"This upgrade to the Nara Tailings Mineral Resource Estimate follows the
acquisition of additional data. This has increased our confidence in the
resource at the Nara tailings dumps. As a result, we have now declared a
Measured Resource, together with an increase in combined tonnage.
Given that the tailings have already been mined, the upgrade in resource
strengthens the attractiveness of the Nara project. Following our recent
discovery of a near-surface, high-grade zone at Hillside, we are quickly
assembling a cluster of near-term revenue generators for Kavango Mining to
operate profitably alongside our main exploration activities.
Kavango is now completing test work to identify the optimal method for
processing the tailings and bringing them into production. This includes
metallurgical testing that will inform final plant design. We look forward to
providing a further update later this quarter."
Background
A Maiden Resource dated 5 March 2024 was previously released by Kavango for
the Nara tailings (announced >>> 6 March 2024
(https://polaris.brighterir.com/public/kavango_resources_plc/news/rns/story/r7ll17x)
). One of the recommendations from the consultant who produced the resource
was to obtain additional density data, as the then limited data meant that a
standard density value had to be utilised. This also limited resource
categorisation, part of which would otherwise have been of a Measured
category.
This data has now been collected, allowing for both an upgrade in category of
part of the resource, and an increase in overall tonnage contained.
Mineral Resource Statement
Table 1. Nara Tailings Mineral Resource statement, effective date 12
April 2024
Domain Category Tonnes (Kt) SG Au (g/t) Au (oz)
NARA Measured 77.7 1.80 0.54 1,347
East & West
Indicated 221.9 1.80 0.65 4,637
Sub tot Meas + Ind 299.6 1.80 0.62 5,984
Inferred 12.2 1.80 0.66 258
NOTES:
1. The Mineral Resource is reported at a cut off grade of 0
(zero) g/t Au.
2. Tonnage is based on a global density average of 1800kg/m3
estimated from density sampling carried out over the impoundment surfaces to a
depth of 4m.
3. Mineral Resource estimates are not precise calculations being
dependent on the interpretation of limited information on the location, shape
and continuity of the occurrence and on the available sampling results.
Therefore, reporting of tonnage and grade figures reflects this relative
uncertainty and figures are rounded to appropriate significant figures. As a
result, some error may be incurred when reporting global figures based on
rounded values.
4. The Mineral Resource Statement presented above has been
classified in accordance with the requirements of the 2012 edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (JORC 2012 Edition). The Competent Person who assumes
responsibility for reporting of the Mineral Resource is Dr John Arthur who is
a Competent Person as defined by the JORC Code 2012 Edition, having more than
5 years experience that is relevant to the style of mineralisation and type of
deposit described herein, and to the activity for which he accepts
responsibility. The effective date of the Mineral Resource statement is 12
April 2024.
5. The Mineral Resource statement is prepared following the
guidelines set out in London Stock Exchange AIM notice, Guidance for Mining
and Oil & Gas Companies (AIM16, Appendix 3).
6. Resources are not constrained other than by the geological
boundary limits of the Mineralised unit and search radii limits approximated
from variographic analysis. At this stage no consideration has been made as
to what tonnes and grade would be reasonably expected to be extracted
profitably. Notwithstanding, the Competent Person considers the distance
constraints in both the dip and strike directions to be a reasonable
approximation and expectation of potential mining extents.
7. Mineral Resources which are not Ore Reserves do not have
demonstrated economic viability. The estimate of Mineral Resource reported
may be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant issues.
8. The Inferred Mineral Resource in this estimate has a lower
level of confidence than that applied to the Indicated Mineral Resource and
must not be converted to a Ore Reserve. It is reasonably considered that the
majority of the Inferred Mineral Resource could be upgraded to an Indicated
Mineral Resource with continued exploration.
9. Currently, no Ore Reserves have been established for the Nara
Project
Next Steps
Kavango has commenced metallurgical test work to assess further the potential
recovery of gold, reagent consumption, and operating parameters for a possible
future facility to process Nara's gold tailings.
The Company will follow this up with a study aimed at commercialising Nara's
gold tailings opportunity to achieve early cashflow.
Kavango intends to investigate potential upside in the Mineral Resource
Estimate identified by Dr. Arthur's work.
Multiple holes stopped short due to intersecting items such as past concrete
infrastructure, meaning there is potential for the tonnage to increase.
Likewise, some grade enrichment with depth was also seen in multiple holes,
potentially because of gravity concentration. Given that not all holes reached
target depth this may offer additional contained gold beyond the original
target depths scoped out for the auger drilling.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET
ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK
MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Further information in respect of the Company and its business interests is
provided on the Company's website at www.kavangoresources.com and on Twitter
at #KAV.
For further information please contact:
Kavango Resources
plc
Ben Turney
+46 7697 406 06
First Equity (Broker)
+44 207 374 2212
Jason Robertson
Kavango Competent Person Statement
The technical information contained in this announcement pertaining to the
Nara Tailings Resource Estimate has been read and approved by Dr John
Arthur. Dr Arthur is Chartered Geologist (FGS) with some 28 years'
experience in the minerals industry. He has a PhD from Cardiff university.
Dr Arthur has sufficient experience that is relevant to the exploration
programmes and geology of the main styles of mineralisation and deposit types
under consideration to act as a Qualified Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves'.
APPENDIX 1
JORC Code, 2012 Edition - Table 1 NARA TAILINGS effective date 5 March 2024
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or · Samples were extracted as auger samples at 1.5 m intervals at an
specific specialised industry standard measurement tools appropriate to the average mass of 1.51 kg.
minerals under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad · These were placed in plastic bags, ticketed, and sealed.
meaning of sampling.
· Samples were split using a riffle splitter. A duplicate, standard
· Include reference to measures taken to ensure sample representivity (CRM) and blank were inserted every 20th sample. Samples were re-ticketed to
and the appropriate calibration of any measurement tools or systems used. ensure numerical continuity and were batched in coated clean poly-weave sacks.
· Aspects of the determination of mineralisation that are Material to
the Public Report.
· In cases where 'industry standard' work has been done this would be
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may warrant disclosure of detailed
information.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary · Each hole was drilled using an engine-driven hydraulic auger with a
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or 50 mm rotating spiral enclosed within a core barrel.
standard tube, depth of diamond tails, face-sampling bit or other type,
whether core is oriented and if so, by what method, etc). · Samples were extracted as auger samples at 1.5 m intervals.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · All samples were weighed.
results assessed.
· No relationship was noted between sample size and grade.
· Measures taken to maximise sample recovery and ensure representative
nature of the samples. · Some holes stopped short of final depth due to hitting concrete
infrastructure. This may result in under-reporting of grade as deeper
· Whether a relationship exists between sample recovery and grade and (potentially enriched) portions could sometimes not be sampled
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material. · Drilling was carried out "dry" and recovery is therefore high with no
perceptible preferential loss of either fine or coarse material
Logging · Whether core and chip samples have been geologically and · Logging was limited to colour and textural descriptions given the
geotechnically logged to a level of detail to support appropriate Mineral nature of the tailings. This is considered sufficient for the style of
Resource estimation, mining studies and metallurgical studies. deposit.
· Whether logging is qualitative or quantitative in nature. Core (or · All intervals were logged, using the same sample intervals as the
costean, channel, etc) photography. assay samples.
· 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 · Samples were split using an appropriately sized riffle splitter,
taken. aiming at a >500g sample weight for analysis.
· If non-core, whether riffled, tube sampled, rotary split, etc and · The riffle splitter was cleaned with compressed air between samples.
whether sampled wet or dry.
· The 500g sample size is considered representative for the particle
· For all sample types, the nature, quality and appropriateness of the size.
sample preparation technique.
· A duplicate, standard (CRM) and blank were inserted every 20th
· Quality control procedures adopted for all sub-sampling stages to sample.
maximise representivity of samples.
· Field duplicates were derived from the primary sample using the
· Measures taken to ensure that the sampling is representative of the balance of the sample.
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 · A company audit was made of the assay laboratory before it was
laboratory procedures used and whether the technique is considered partial or engaged.
total.
· The bottle roll technique uses a cyanide leach and is a partial
· For geophysical tools, spectrometers, handheld XRF instruments, etc, analysis method.
the parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc. · 10% of samples were analysed by Fire Assay as a further check. This
in all but one sample reported a higher grade (as was expected). The target of
· Nature of quality control procedures adopted (eg standards, blanks, this work was however to estimate leachable rather than total gold, and for
duplicates, external laboratory checks) and whether acceptable levels of which bottle roll is considered most appropriate.
accuracy (ie lack of bias) and precision have been established.
· Round robin and accreditation results for the laboratory were
reviewed and considered acceptable.
· The company's QAQC samples, including standards, are considered to
confirm acceptable bias and precision, with no contamination issues
identified.
Verification of sampling and assaying · The verification of significant intersections by either independent · The Company's internal CP reviewed sampling and visited site to
or alternative company personnel. confirm that protocols had been followed.
· The use of twinned holes. · No twinned holes were used.
· Documentation of primary data, data entry procedures, data · Logged data was securely recorded and backed up.
verification, data storage (physical and electronic) protocols.
· Assay data was received as assay certificates and cross checked
· Discuss any adjustment to assay data. against sample submission data to ensure a correct match.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · All holes were set out by a professional survey company using
and down-hole surveys), trenches, mine workings and other locations used in Differential GPS.
Mineral Resource estimation.
· Map datum is standard for the region of UTM35S Arc 1950.
· Specification of the grid system used.
· Location of actual holes was observed to vary by up to 40cm from laid
· Quality and adequacy of topographic control. out position. Overall accuracy therefore is to be considered as +-40cm in X
and Y, and approximately +-10cm in Z axis.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · The auger drill sites were designed according to a grid with 20 m
line spacing and 20 m sample spacing.
· Whether the data spacing and distribution is sufficient to establish
the degree of geological and grade continuity appropriate for the Mineral · This is considered appropriate for the Mineral Resource and Ore
Resource and Ore Reserve estimation procedure(s) and classifications applied. Reserve estimation procedure and classifications.
· Whether sample compositing has been applied. · Compositing was not required.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · The greatest variation is likely to be vertically, through
possible structures and the extent to which this is known, considering the stratification as feed material sources varied over time.
deposit type.
· The vertical orientation of the holes allows for close to 90°
· If the relationship between the drilling orientation and the intersection angle with the stratification within the dumps
orientation of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material. · The relatively short sample length (1.5m) allows for relatively
accurate definition of variation in source feed, colour, grain size.
· No bias is considered to have resulted.
Sample security · The measures taken to ensure sample security. · Samples were stored in a locked company compound at site and in a
locked container in Bulawayo. They were shipped onwards to the analytical
facility by a reliable courier.
Audits or reviews · The results of any audits or reviews of sampling techniques and data. · The auger sampling process was recorded on video and is considered
acceptable by both the internal and external CP.
· Riffle splitting of sub-samples was reviewed by the Company's
internal CP and is considered acceptable.
· The Resource Consultant reviewed all data, and spot checked 10% of
values versus logs.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · The mineral Claims are held by a third party with whom Kavango holds
agreements or material issues with third parties such as joint ventures, a valid Option agreement Call Option Agreement dated 23 June 2023.
partnerships, overriding royalties, native title interests, historical sites,
wilderness or national park and environmental settings. · The 45 Claims under the agreement cover 415 hectares, and the Call
Option Agreement is valid for two years to 23 June 2025, during which Kavango
· The security of the tenure held at the time of reporting along with has exclusive access to the Claims.
any known impediments to obtaining a licence to operate in the area.
· Under the Call Option Agreement Kavango will need to pay the licence
holder a fee before expiry, following which Kavango will own 100%.
· There is established mining activity in the area. An environmental
permit is held by the Claims holder.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · The Nara project covers four historic mines with total recorded
production of more than 90,000oz in the first half of the 20th Century. These
mines also produced credits of tungsten and silver. There is a 30-year plus
history of small-scale mining & custom milling on the property.
· No drilling or modern exploration has been carried out to assess the
property.
Geology · Deposit type, geological setting and style of mineralisation. · The resource is a tailings deposit. The Nara prospect is located
within the Filabusi Greenstone Belt, sitting astride the Redwing Shear Zone,
which hosts gold mineralisation. Seven formations have been identified at
Filabusi and these are grouped into Lower and Upper greenstones of the
Bulawayan Group as in the adjoining Mberengwa belt. There is apparent
unconformity between the Lower and Upper greenstones.
· Historical reports and longitudinal sections show mining of at least
two parallel orebodies and a third oblique splay. The southern or footwall
reef consists of massive boudinage quartz veins, and the northern hangingwall
reef consists of quartz stringers, both hosted within mafic schist. Both types
of reefs are set in highly sheared and laminated chlorite- and carbonated
biotite-feldspar-schists, with the proportion of biotite increasing towards
the quartz. There is congruence between one of the reefs and the splay, with
the first type truncating the second along strike east of the old main shaft.
· The area around the Nara project contains 139 historic gold mines
with a combined production of greater than 1.7Moz gold. These mines have been
predominantly narrow, high-grade oxide production.
· There are currently no active large mines. The area is instead
serviced by stamp mills, receiving ore from tribute miners.
Drill hole Information · A summary of all information material to the understanding of the · These data are provided as an appendix in the Mineral Resource Report
exploration results including a tabulation of the following information for to the Company.
all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of the
drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
· If the exclusion of this information is justified on the basis that
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · No weighted averages have been used.
maximum and/or minimum grade truncations (eg cutting of high grades) and
cut-off grades are usually Material and should be stated. · No higher cut has been used, as not considered appropriate.
· Where aggregate intercepts incorporate short lengths of high grade · Samples are generally of a consistent length.
results and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations · Only gold values are included.
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 · The auger holes are considered perpendicular to stratification from
Exploration Results. when tailings were laid down.
· If the geometry of the mineralisation with respect to the drill hole · Down hole lengths will therefore approximate to true widths.
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 (eg 'down hole length, true width
not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · These are contained in separate resource report.
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · All grades and widths have been reported.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Density data was collected from 4 trenches across the eastern dump
reported including (but not limited to): geological observations; geophysical with 5 samples collected in each trench representing depths between surface
survey results; geochemical survey results; bulk samples - size and method of (0m) and 4m depth. After accounting for obvious outliers the final data
treatment; metallurgical test results; bulk density, groundwater, geotechnical indicated an average density of 1.8t/m(3) was appropriate as a measure of
and rock characteristics; potential deleterious or contaminating substances. in-situ dry density.
· No metallurgical work has yet been carried out, however the bottle
roll testwork provides a strong indication of the leachability of the
tailings.
· No deleterious materials were observed in the dumps or samples.
Further work · The nature and scale of planned further work (eg tests for lateral · There may be scope to extend the resource at depth.
extensions or depth extensions or large-scale step-out drilling).
· Additional nearby dumps may become available in the future.
· 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 listed in section 1, and where relevant in section 2, also apply to
this section.)
Database integrity · Measures taken to ensure that data has not been corrupted by, for · Data is stored in a Dropbox archive, which only two people have write
example, transcription or keying errors, between its initial collection and access to.
its use for Mineral Resource estimation purposes.
· All data have been run through Micromine and Surpac's validation
· Data validation procedures used. tool, and any anomalies investigated and corrected.
· A manual check of 10% of all data was carried out by the Resource
Consultant.
Site visits · Comment on any site visits undertaken by the Competent Person and the · Due to the project location and straightforward nature of the
outcome of those visits. tailings deposit the Resource Consultant did not visit. The Company's internal
CP did however visit and has validated the hole locations and sampling
· If no site visits have been undertaken indicate why this is the case. protocols as well as visiting the analytical laboratory.
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological · The mineralized domains which constitute the deposit consist of
interpretation of the mineral deposit. horizontally layered tailings deposit material deposited in 2 adjacent
facilities which form above ground level elevated "dumps" free draining
· Nature of the data used and of any assumptions made.
· Data used for the resource estimation consisted of auger drill data
· The effect, if any, of alternative interpretations on Mineral assay results as well as logging data describing colour and grain size.
Resource estimation.
· The correlation between grade with colour and grain size is low and
· The use of geology in guiding and controlling Mineral Resource it was not considered appropriate to try and sub-divide the dumps into
estimation. separate domains based on either colour or grain size.
· The factors affecting continuity both of grade and geology. · Continuity of grade appears high, likely due to the relatively
uniform nature of the source material. Variations within the deposits for
colour and grain size do not materially impact the variability of grade
Dimensions · The extent and variability of the Mineral Resource expressed as · The Mineral Resource domains consist of 2 adjacent historical
length (along strike or otherwise), plan width, and depth below surface to the tailings dumps. The east dump contains the bulk of the Mineral Resource and
upper and lower limits of the Mineral Resource. is roughly circular in plan view with dimensions of approximately 220x220m and
a height of between 10-12m. the west dump dimensions are approximately 145m
x 130m and a height of only 4m
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied · Estimation consisted of exploratory data analysis (EDA) of the auger
and key assumptions, including treatment of extreme grade values, domaining, sample data separately for the two domains (East and West). Following data
interpolation parameters and maximum distance of extrapolation from data validation the sample assay data was selected as the interpolation variable.
points. If a computer assisted estimation method was chosen include a The reason for this was that the sample length of 1.5m is the most common
description of computer software and parameters used. sample length and very samples fell below this interval correlation cross
plots of sample length against gold grade showed no material bias between
· The availability of check estimates, previous estimates and/or mine length and grade and it was decided that the sample length is an effective
production records and whether the Mineral Resource estimate takes appropriate composite for use in the grade estimate.
account of such data.
· The grade histogram exhibits the classic high grade tail seen in most
· The assumptions made regarding recovery of by-products. gold deposits, however, given the nature of the tailings product the high
grades are relatively well controlled with the highest grade only 2.5g/t. It
· Estimation of deleterious elements or other non-grade variables of was considered that there was no requirement for high grade cutting given the
economic significance (eg sulphur for acid mine drainage characterisation). smoothing process inherent in the kriging algorithm and the fact that the high
grades tend to occur in discrete groupings rather than a random scattering
· In the case of block model interpolation, the block size in relation throughout the deposit.
to the average sample spacing and the search employed.
· Estimation and EDA were conducted using the Isatis Neo(®)
· Any assumptions behind modelling of selective mining units. software. Semi-variogram analysis was conducted on the raw data composites
and the resulting experimental variograms were modelled with ranges of 52m and
· Any assumptions about correlation between variables. 37m in the east and north directions respectively and a relatively low nugget
variance leading to a high estimated kriging efficiency and high Kriging Slope
· Description of how the geological interpretation was used to control of Regression (KsoR) results.
the resource estimates.
· Search parameters closely followed the geostatistical ranges and are
· Discussion of basis for using or not using grade cutting or capping. summarized below:
· The process of validation, the checking process used, the comparison · Ellipsoid parameters:
of model data to drill hole data, and use of reconciliation data if available.
o Ellipsoid rotation Dip = 0° Dip Azimuth = N90° Pitch =
90°
o Ellipsoid size (radius) 50 m,35 m,4 m
o Use anisotropic distances Yes
o Number of angular sectors 4
o Maximum number per sector 20
o Split ellipsoid vertically No
o Minimum number of samples 4
· Parent block size was set at 10x10x4m (XYZ) and sub blocking was
performed in order to better fit the resulting reporting to the modelled
domain boundaries. The sub-blocks were defined at 2.5x2.5x0.5m. hole
spacing is 20x20m with an average sample length of 1.4m thus the block size is
considered appropriate to locate sufficient samples within a block to provide
a reliable estimate of grade.
· Grade interpolation was performed into the parent blocks and all
sub-blocks retained the grade of their parent block for reporting purposes
· Validation was carried out using visual examination of hole and block
sections along with swath plots for the two domains independently. The
following plot shows the superimposed histograms for the East domain samples
(red) and kriged blocks (blue) highlighting the smoothing caused by the
kriging algorithm.
·
· There are no previous estimates.
· No by-product production is assumed.
· No deleterious elements have been identified, however future
metallurgical work should include this.
·
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Densities have been measured using in-situ tailings densities,
moisture, and the method of determination of the moisture content. moisture has not been calculated but is considered typical for this largely
hot and dry area.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · No cut-off has been applied. The majority of material contains some
applied. grade, and owing to the nature of the deposit style, all material will be
required to be mined and processed.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · It is assumed that small mobile plant will be used.
dimensions and internal (or, if applicable, external) mining dilution. It is
always necessary as part of the process of determining reasonable prospects · As selective mining will not be used no mining losses or dilution are
for eventual economic extraction to consider potential mining methods, but the anticipated.
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this · The material is considered to be "free dig" throughout the full depth
should be reported with an explanation of the basis of the mining assumptions extent of the dumps and the gold grade is relatively consistent throughout the
made. domains modelled
· The format of the dumps makes such mining straightforward.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · The bottle roll data may provide a reasonable proxy for recoverable
amenability. It is always necessary as part of the process of determining gold using a cyanide leach.
reasonable prospects for eventual economic extraction to consider potential
metallurgical methods, but the assumptions regarding metallurgical treatment · Adjacent properties are processing tailings and generating
processes and parameters made when reporting Mineral Resources may not always significant revenue. This appears to demonstrate the viability of a future
be rigorous. Where this is the case, this should be reported with an operation.
explanation of the basis of the metallurgical assumptions made.
· Metallurgical testwork will follow as a next step to verify
recoveries, residence times, and estimate reagent consumptions.
Environmen-tal factors or assumptions · Assumptions made regarding possible waste and process residue · The project is in a brownfield area of tailings. With careful
disposal options. It is always necessary as part of the process of determining planning it is expected that given there will be minimal change in volume of
reasonable prospects for eventual economic extraction to consider the the material, that it can be redeposited in its source area.
potential environmental impacts of the mining and processing operation. While
at this stage the determination of potential environmental impacts, · Consideration will be given as to whether the material can be
particularly for a greenfields project, may not always be well advanced, the improved in terms of chemical and physical stability, and whether for example
status of early consideration of these potential environmental impacts should revegetation can be facilitated.
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 · Density data was collected from 4 trenches across the eastern dump
assumptions. If determined, the method used, whether wet or dry, the frequency with 5 samples collected in each trench representing depths between surface
of the measurements, the nature, size and representativeness of the samples. (0m) and 4m depth. After accounting for obvious outliers the final data
indicated an average density of 1.8t/m(3) was appropriate as a measure of
· The bulk density for bulk material must have been measured by methods in-situ dry density.
that adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit. · There is distinct variation in the results obtained from the upper
layers of each trench with the highest density in the upper surface (possibly
· Discuss assumptions for bulk density estimates used in the evaluation due to compaction by machinery) with relatively wide variations (outliers) in
process of the different materials. the upper 1-2m below which the density values become considerably more
uniform. The final density estimate used was a global figure of 1.80t/m(3)
which matches closely with data obtained from benchmarking of sand material
density from a number of sources in the engineering literature and from
experience of similar styles of deposition.
· The continued determination of reliable and accurate density is
recommended for the project going forward.
· The data are considered representative for what is a relatively
homogenous tailings deposit.
Classification · The basis for the classification of the Mineral Resources into · The majority of the defined Mineral Resource (96%) is considered by
varying confidence categories. the competent person to be in the Indicated category. A portion of the
deposit is considered suitable for classification as Measured Mineral Resource
· Whether appropriate account has been taken of all relevant factors given the updated density sampling and assessment.
(ie relative confidence in tonnage/grade estimations, reliability of input
data, confidence in continuity of geology and metal values, quality, quantity · The resulting Mineral Resource statement appropriately and accurately
and distribution of the data). reflects the Competent Persons view of the grade values and distribution
within the defined domains.
· 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. · No third party review has yet been carried out.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · Classification was based on a combination of visual and statistical
level in the Mineral Resource estimate using an approach or procedure deemed parameters along with the results of the kriging quality parameters,
appropriate by the Competent Person. For example, the application of principally the slope of regression (KSoR). The relatively close spaced
statistical or geostatistical procedures to quantify the relative accuracy of drilling and the defined block size lend a high degree of confidence to the
the resource within stated confidence limits, or, if such an approach is not final estimates based on the quality of the semi-variogram results.
deemed appropriate, a qualitative discussion of the factors that could affect
the relative accuracy and confidence of the estimate. · No production data is available as of the effective date of this
report (12 April 2024) and therefore a reconciliation is not possible between
· The statement should specify whether it relates to global or local the block model and actual production information.
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.
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