REG - Kropz PLC - Update Mineral Resource Estimate - Elandsfontein
10/01/2023 08:45
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RNS Number : 2343M Kropz PLC 10 January 2023
10 January 2023
Kropz Plc
("Kropz" or the "Company")
Update of Mineral Resource Estimate for Elandsfontein
Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer,
is pleased to announce an update to the JORC (2012) compliant Mineral Resource
Estimate ("MRE") at its South African phosphate project, Elandsfontein
Phosphate Project ("Elandsfontein"), following additional infill drilling,
relogging of historical cores and mapping of ore exposures as intersected
within the current mining horizon.
The previous resource statement was validated and published by SRK Consulting
(Pty) Ltd ("SRK") in 2018, following their peer review of the resource
estimate by Snowden Mining Industry Consultants (Pty) Ltd.
The geology at Elandsfontein was believed to be continuous with no major
project risks or potential flaws identified associated with the sampling,
delineation, and estimation of the mineral resources by previous authors (SRK,
2018). In July 2022, mining operations intersected previously unknown and
undefined indurated phosphatic (phoscrete) lenses colloquially referred to as
'hard bank'.
Based on current conditions and on-site learnings, not only from the mining,
but also from the revised geological interpretations, it was considered
prudent that the resource model be reclassified. The estimate needed to be
brought in line with the level of confidence that reflected grade and physical
properties and continuity (mining output and plant performance), as these
aspects play a role in economic viability, and therefore associated reserve
determination.
Summary
· The updated MRE now caters for geotechnical characteristics of the ore
in addition to the grade characteristics;
· Increase in total phosphate resources at Elandsfontein to 106.58
million tonnes ("Mt");
· Downgrade of much of the previously Measured resource to Indicated,
and downgrade of previously Indicated resources to Inferred. Total Measured
and Indicated resource tonnage has reduced by approximately 76%. The updated
resource now considers core recovery, average drill hole spacing and sample
count;
· Grade has improved, with the refined lithological contacts and
improved estimates from the infill drilling and pit sampling. This can also be
confirmed from the current pit intersections; and,
· Proven reserve of 7.31 Mt at 10.71% P(2)O(5).
Mark Summers, Chief Executive Officer commented:
"While the downgrade of the Measured and Indicated resource is disappointing,
it enables Kropz to move forward with a significantly increased level of
confidence, that will allow for accurate and efficient mine planning.
"The increase in total resource, and more importantly, the increase in grade,
supported by the additional drilling programme is excellent news, and the
continued drilling planned for the year ahead will further increase
confidence, and support an increase in reserve tonnes."
ELANDSFONTEIN RESOURCE STATEMENT AS OF 15 DECEMBER 2022
CLASS TONNES (Mt) P(2)O(5) (%) SiO(2) (%) Al(2)O(3) (%) MgO (%) Fe(2)O(3) (%) CaO (%) CONTAINED P(2)O(5) (Mt)
Measured 9.40 11.21 65.58 1.13 0.16 0.90 16.10 1.05
Indicated 9.62 7.90 75.21 1.17 0.12 0.86 11.24 0.76
Total Measured & Indicated 19.02 9.54 70.45 1.15 0.14 0.88 13.64 1.81
Inferred 87.56 7.68 73.92 1.20 0.16 1.03 11.15 6.72
Total Resources 106.58 8.01 73.30 1.19 0.16 1.00 11.59 8.54
NETT ATTRIBUTABLE (74% TO THE COMPANY)
Measured 6.96 11.21 65.58 1.13 0.16 0.90 16.10 0.78
Indicated 7.12 7.90 75.21 1.17 0.12 0.86 11.24 0.56
Total Measured & Indicated 14.07 9.54 70.45 1.15 0.14 0.88 13.64 0.67
Inferred 64.79 7.68 73.92 1.20 0.16 1.03 11.15 4.98
Total Resources 78.87 8.01 73.30 1.19 0.16 1.00 11.59 6.32
Note: All numbers are reported to two significant figures. Rounding may cause
minor discrepancies to the numbers reported in this table.
The revised resource estimate contains 30 additional sonic boreholes with
recoveries above 90%. The additional holes have provided significant insight
in terms of the geological interpretation, mineralised lithologies and data
confidence. Differences are further seen in the elevation with regards to top
contact of mineralisation. The 2022 modelling further utilised implicit
modelling which creates additional refined contacts between lithologies. The
optimised modelling has contributed to improved grades over the more
accurately estimated areas and will improve planning in terms of anticipating
mineralised horizons, and lithology types which are not always visibly
distinguishable.
DIFFERENCE 2018 VS 2022 RESOURCE DECLARATION
CLASS TONNES (Mt) P(2)O(5) (%) SiO(2) (%) Al(2)O(3) (%) MgO (%) Fe(2)O(3) (%) CaO (%) CONTAINED P(2)O(5) (Mt)
Total Measured and Indicated 2022 19.02 9.54 70.45 1.15 0.14 0.88 13.64 1.81
Total Measured and Indicated 2018 77.80 8.30 74.90 1.17 0.17 0.93 11.86 3.60
Difference Measured and Indicated -58.78 1.24 -4.45 -0.02 -0.03 -0.05 1.78 -1.79
Inferred 2022 87.56 7.68 73.92 1.20 0.16 1.03 11.15 6.72
Inferred 2018 23.30 5.48 82.50 1.15 0.13 0.95 7.50 1.28
Difference Inferred 64.26 2.20 -8.58 0.05 0.03 0.08 3.65 5.44
Note: All numbers are reported to two significant figures. Rounding may cause
minor discrepancies to the numbers reported in this table.
The 2022 reserve estimate was impacted by the reclassification of the resource
estimate. Reserves are estimated at 17.42 Mt at a P(2)O(5) grade of 9.19% of
which 7.31 Mt is proven at 10.71% P(2)O(5), where previously no proven tonnes
were stated in 2018.
(
)
ELANDSFONTEIN RESERVE STATEMENT AS AT 15 DECEMBER 2022
CLASSIFICATION TONNES (Mt) P(2)O(5) (%) CONTAINED P(2)O(5) (Mt)
Proven 7.31 10.71 0.78
Probable 10.11 8.09 0.82
Total Reserve 17.42 9.19 1.60
NETT ATTRIBUTABLE (74% TO THE COMPANY)
Proven 5.41 10.71 0.58
Probable 7.48 8.09 0.61
Total Reserve 12.89 9.19 1.18
There is a 46 Mt difference between the 2018 and 2022 estimates, which is
mainly due to the downgrade in the measured and indicated resource categories
in the 2022 resource estimate.
DIFFERENCE 2018 VS 2022 RESERVE DECLARATION
RESOURCE CLASSIFICATION TONNES (Mt) P(2)O(5) (%) CONTAINED P(2)O(5) (Mt)
Total Proven 2022 7.31 10.71 0.78
Total Proven 2018 - - -
Total Probable 2022 10.11 8.09 0.82
Total Probable 2018 63.63 9.60 6.11
Total Proven and Probable 2022 17.42 9.19 1.60
Total Proven and Probable 2018 63.63 9.60 6.11
Difference Proven and Probable -46.21 -0.41 -4.51
Note: All numbers are reported to two significant figures. Rounding may cause
minor discrepancies in this table
Competent Persons Statement
Information in this announcement pertaining to Reporting of Sampling
Techniques and Data, Exploration Results and Estimation and Reporting of
Mineral Resources has been reviewed and approved by Vanessa Clark-Mostert, a
Principal Consultant for Practara (Pty) Ltd, Golder House, Maxwell Office
Park, Magwa Crescent, Building 1, West, Midrand, 1685, South Africa. The
Company Registration number is 2015/217925/07.
Ms Clark-Mostert is registered with the South African Council for Natural
Scientific Professionals, in the field of Geological Science, Pr. Sci. Nat.
member No. 400161/07. She holds an MSc Earth Science Practice and Management,
University of Pretoria, 2012, BSc (Honours) Environmental and Engineering
Geology, University of Pretoria, 2002 and a BSc (Geology) from the University
of Pretoria. Ms Clark-Mostert has more than 19 years' experience in the mining
industry of which most of her working career included work as a consultant.
Roles fulfilled which is pertinent to the style of mineralisation and mining
method include Geological Consultant and Technical advisor. Parent Companies
include Anglo American, Tronox, Richards Bay Minerals, TRG, TWP Investments,
Phalaborwa Mining Company, General Nice Mining, Norilsk & BCL, Namakwa
Sands, Assmang and Assore.
Ms Clark-Mostert is a 'Competent Person' as defined in the SAMREC Code which
allows her to act as a Competent/Qualified Person.
Ms Clark-Mostert consents to the inclusion in this announcement of the
matters based on this information in the form and context in which it
appears. Ms Clark-Mostert confirms that the Company is not aware of any new
information or data that materially affects the information included in the
relevant market announcements, and that the form and context in which the
information has been presented has not been materially modified.
The information in this release that relates to the Estimation and Reporting
of Ore Reserves has been compiled by Mr Christopher Kuhl. Mr Kuhl is employed
by Practara (Pty) Ltd as a Principal Consultant to perform studies and
assignments related to Mining and Technical Advisory. Mr Kuhl is registered as
a member with the South African Institute of Mining and Metallurgy. He holds a
BSc Engineering (Mining) from the University of the Witwatersrand and a GDE
(Mineral Economics) from the University of the Witwatersrand.
Mr Kuhl has more than 25 years' experience in the mining industry. Parent
Companies include African Rainbow Minerals and Assore, Jubilee Platinum,
Cheetah Mining, Sail and Anglo American.
Mr. Kuhl consents to the inclusion in this report of the contained technical
information relating the Ore Reserve Estimation in the form and context in
which it appears. Mr Kuhl confirms that the Company is not aware of any new
information or data that materially affects the information included in the
relevant market announcements, and that the form and context in which the
information has been presented has not been materially modified.
Glossary
Term Intended generalised meaning
Competent Person A minerals industry professional who is a Member or Fellow of the Australasian
Institute of Mining and Metallurgy, or of the Australian Institute of
Geoscientists, or of a Recognised Professional Organisation, as included in a
list available on the JORC and Australian Securities Exchange websites.
Diamond drilling The act or process of drilling boreholes using bits inset with diamonds as the
rock-cutting tool.
Governing Principles The principles governing the operation and application of the JORC Code are
Transparency, Materiality and Competence.
Transparency requires that the reader of a Public Report is provided with
sufficient information, the presentation of which is clear and unambiguous, to
understand the report and not be misled by this information or by omission of
material information that is known to the Competent Person.
Materiality requires that a Public Report contains all the relevant
information that investors and their professional advisers would reasonably
require, and reasonably expect to find in the report, for the purpose of
making a reasoned and balanced judgement regarding the Exploration Results,
Mineral Resources or Ore Reserves being reported. Where relevant information
is not supplied an explanation must be provided to justify its exclusion.
Grade The measurement of the quantity, percentage or quality of a metal or mineral
contained within a mineral deposit.
Hard bank Ore material mined in the pit, regardless of grade, which has a strength
classification exceeding moderately strong classification (+12.5 MPa) and or
hardness classification exceeding medium hard rock and exceeds an in-situ
width of 0.5m. The material occurs as continuous layers when intersected.
These layers require mechanical breaking methods to be applied to mine. This
material is to be stockpiled separately in the short term.
Indicated Mineral Resource An Indicated Mineral Resource is that part of a Mineral Resource for which
quantity, grade or quality, densities, shape and physical characteristics are
estimated with sufficient confidence to allow the application of modifying
factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit.
Inferred Mineral Resource That part of a Mineral Resource for which quantity and grade or quality are
estimated from limited geological evidence and sampling.
Infill drilling Drilling designed to fill or close gaps between existing drill holes.
JORC The Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves. The JORC Code is produced by the Australasian Joint Ore
Reserves Committee ('the JORC Committee').
JORC Code The Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves 2012 edition (JORC Code), is an internationally recognised
professional code of practice which sets minimum standards for the public
reporting of Exploration Results, Mineral Resources and Ore Reserves.
Losses/Modifying Factors "Modifying Factors" or losses include mining, metallurgical, economic,
marketing, legal, environmental, social and governmental considerations.
Material Circumstances are considered material if omission or misstatement of the
associated factor, constituent or information could influence the economic
decisions of users. As a rule of thumb, this difference would normally be
equal to or exceed 10%.
Materiality A Public Report contains all the relevant information that investors and their
professional advisors would reasonably require, and expect to find, for the
purpose of making a reasoned and balanced judgement regarding the Exploration
Results, Mineral Resources and Mineral Reserves being reported.
Measured Mineral Resource That part of a Mineral Resource for which quantity, grade or quality,
densities, shape, and physical characteristics are estimated with confidence
sufficient to allow the application of Modifying Factors to support detailed
mine planning and final evaluation of the economic viability of the deposit.
Mineable Those parts of the ore body, both economic and uneconomic, that can be
extracted during the normal course of mining.
Mineral Resource A concentration or occurrence of material of economic interest in or on the
Earth's crust in such form, grade, quality and quantity that there are
reasonable prospects for eventual economic extraction.
Mineralisation Any single mineral or combination of minerals occurring in a mass, or deposit,
of economic interest. The term is intended to cover all forms in which
mineralisation might occur, whether by class of deposit, mode of occurrence,
genesis or composition.
Mineral Resource A concentration or occurrence of material of economic interest in or on the
Earth's crust in such form, grade, quality and quantity that there are
reasonable prospects for eventual economic extraction.
Mt Million tonnes
Ore Lithological units with grade exceeding 4% P(2)O(5). It can include C to G
Unit as described in the stratigraphic column of the area.
Ore Reserve The economically mineable part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and allowances for losses, which may
occur when the material is mined or extracted
P(2)O(5) Phosphorus pentoxide
Percussion Drilling The process of boring into rock by means of an air- or hydraulic-powered drill
bit.
Probable Ore Reserve The economically mineable part of an Indicated, and in some circumstances, a
Measured Mineral Resource. The confidence in the modifying factors applying to
a Probable Ore Reserve is lower than that applying to a Proven Ore Reserve. A
Probable Ore Reserve has a lower level of confidence than a Proven Ore Reserve
but is of sufficient quality to serve as the basis for a decision on the
development of the deposit.
Proven Ore Reserve The economically mineable part of a Measured Mineral Resource. A Proven Ore
Reserve implies a high degree of confidence in the Modifying Factors. A Proven
Ore Reserve represents the highest confidence category of an Ore Reserve
estimate. The style of mineralisation or other factors could mean that Proven
Ore Reserves are not achievable in some deposits.
SACNASP South African Council for Natural Scientific Professionals
SAMREC The South African Code for The Reporting of Exploration Results, Mineral
Resources and Mineral Reserves (The SAMREC Code)
Sonic Boreholes A borehole derived through sonic drilling, a drilling technique which utilises
high-frequency energy generated inside a sonic head to advance a core barrel
downwards through a substrate.
Sonic Drilling Sonic is an advanced form of drilling which employs the use of high-frequency,
resonant energy generated inside the Sonic head to advance a core barrel or
casing into subsurface formations.
Tonnage An expression of the amount of material of interest.
The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.
For further information visit www.kropz.com or contact:
Kropz Plc Via Tavistock
Mark Summers (CEO) +44 (0) 207 920 3150
Grant Thornton UK LLP Nominated Adviser
Samantha Harrison +44 (0) 20 7383 5100
Harrison Clarke
George Grainger
Ciara Donnelly
Hannam & Partners Broker
Andrew Chubb +44 (0) 20 7907 8500
Ernest Bell
Tavistock Financial PR & IR (UK)
Nick Elwes +44 (0) 207 920 3150
Jos Simson kropz@tavistock.co.uk
Emily Moss
R&A Strategic Communications PR (South Africa)
Charmane Russell +27 (0) 11 880 3924
charmane@rasc.co.za
About Kropz Plc
Kropz is an emerging African phosphate producer with projects in South Africa
and in the Republic of Congo. The vision of the Group is to become a leading
independent phosphate rock producer and to develop into an integrated,
mine-to-market plant nutrient company focusing on sub-Saharan Africa.
-ENDS-
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