REG - Resolute Mining Ltd - Two Million Ounce Mineral Resource at Syama North
30/08/2022 07:17
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RNS Number : 5469X Resolute Mining Limited 30 August 2022
30 August 2022
Two Million Ounce Mineral Resource at Syama North
20 million tonnes @ 3.1 g/t Au for 2 million ounces
Highlights
• Updated Mineral Resource Estimate for Syama North increases 40% to
two million ounces of gold at a cut-off grade of 1g/t Au and remains open at
depth
• Mineral Resource now totals 20 million tonnes at 3.1g/t Au for 2
million ounces to a nominal depth of 150m below surface
• Exploration drilling at Syama North returning consistent ore-grade
intersections continuing from previous results announced in June 2022, better
results are as follows:
QVRD557 - 20m @ 9.80g/t from 133m
BARD261 - 5m @ 30.02g/t from 134m
QVRC540 - 22m @ 2.81g/t from 94m
QVRC559 - 5m @ 18.38g/t from 97m
QVRC560 - 17m @ 4.10g/t from 137m
QVRC561 - 14m @ 5.56g/t from 111m
QVRC562 - 12m @ 4.40g/t from 43m
QVRC573 - 9m @ 16.00g/t from 123m
QVRD530 - 17m @ 5.22g/t from 189m
QVRD538 - 46m @ 1.83g/t from 143m
QVRD538 - 30m @ 3.88g/t from 202m
QVRD566 - 30m @ 3.84g/t from 183m
QVRD568 - 19m @ 8.22g/t from 140m
• Wide mineralised intervals in QVRD538 and QVRD566 support the
suitability for open pit mining of sulphide mineralisation
• Diamond drilling continues with new intersections outside of the
updated resource
• Engineering studies have commenced to assess the economics of the
gold deposit
Resolute Mining Limited ("Resolute" or "the Company") (ASX/LSE: RSG) is
pleased to announce an updated Mineral Resource Estimate from Syama North and
continued positive exploration drilling results. These results confirm the
potential for a new open pit operation adjacent to the Syama processing
complex.
Resolute's Chief Executive Officer, Mr Terry Holohan, commented: "Given the
strong performance of the Sulphide processing circuit post the planned major
shutdown, we are now confident with our ability to process sulphides. The
focus has thus shifted to exploring for more sulphide close to the processing
complex. Assuming significant amounts of this convert to ore reserves, this
will give us a huge amount of flexibility for our present expansion plans,
processing options and debottlenecking initiatives in place.
As a result, we have recently commenced a pre-feasibility study into low
capital expansion options to further expand the sulphide operations with the
results expected in early 2023."
Syama North Exploration Program
The exploration drilling program at Syama North, initiated in 2021, recorded
significant oxide and sulphide gold mineralisation intersections in and around
the originally mined-out oxide pits of A21 and Beta/BA-01 located within 4-8
km of the main Syama mining and processing complex.
Diamond and RC drilling has continued throughout 2022 with two rigs targeting
mineralisation extensions at both the A21 and Beta pits. The drilling was
highly successful with all the holes intersecting gold mineralisation and the
majority returning significant intersections. These excellent drill results
were reported to the market in June 2022 (see ASX announcement 16 June 2022).
Since the June announcement drilling has continued and results have been
consistently positive with ore grade intervals seen in most holes. Drillhole
locations are shown on Figure 1.
Better results received since the previous ASX announcement are shown below,
with a table of the intersections attached as Appendix I.
QVRD557 - 20m @ 9.80g/t from 133m
BARD261 - 5m @ 30.02g/t from 134m
QVRC540 - 22m @ 2.81g/t from 94m
QVRC559 - 5m @ 18.38g/t from 97m
QVRC560 - 17m @ 4.10g/t from 137m
QVRC561 - 14m @ 5.56g/t from 111m
QVRC562 - 12m @ 4.40g/t from 43m
QVRC573 - 9m @ 16.00g/t from 123m
QVRD530 - 17m @ 5.22g/t from 189m
QVRD538 - 46m @ 1.83g/t from 143m
QVRD538 - 30m @ 3.88g/t from 202m
QVRD566 - 30m @ 3.84g/t from 183m
QVRD568 - 19m @ 8.22g/t from 140m
Of particular interest is the very wide mineralised zone in QVRD538 which
appears to be a zone of coalesced mineralised shears producing two excellent
intersections of 46m @ 1.83g/t Au from 143m and 30m @ 3.84g/t Au from 202m
(See Figure 2). The mineralised interval including internal dilution is 89m @
2.41g/t over the entire zone.
Subsequently an up-dip hole was completed and this hole QVRD566, confirmed and
expanded the wide mineralised zone with intersections of 30m @ 3.84g/t and 9m
@ 3.67g/t Au.
Diamond drilling is now concentrating on further expanding this wide zone with
50m spaced holes in a pattern around QVRD538.
The high-grade results at the southern end of the A21 deposit reported in the
June announcement (QVRC533 - 27m @ 6.62g/t Au) have been supported with
excellent very high-grade results in QVRD557 (20m @ 9.80g/t Au), QVRC559 (5m @
18.38g/t Au), and QVRD568 (19m @ 8.22g/t Au). A cross section example is shown
on Figure 3.
The gold grades in this southern zone are sufficiently high to allow for
underground operations if strip ratios preclude open pit mining.
Figure 1. Interpreted Geology, Satellite Imagery and Drillhole Locations
Figure 2. Cross Section at 1208100N showing drillholes and results
Figure 3. Cross Section at 1200850N showing drillholes and results
Mineral Resource Estimate
Mineral Resource Estimation (MRE) at Syama North has been undertaken using a
variety of estimation methods. Previous published estimates at Syama North
were undertaken using Multiple Indicator Kriging (MIK) methodology which
produces a result to emulate a recoverable resource.
Reflecting the high-grade constrained style of mineralisation at Syama North
it was decided to accurately model the gold mineralisation and use wireframe
constrained Ordinary Kriged (OK) estimation methodology. Detailed MRE
methodology is attached as Section 3 of the JORC Appendix.
The Global Mineral Resources at Syama North is now estimates at 20 million
tonnes at 3.1g/t Au for 2.0 million ounces at a cut-off grade of 1g/t Au.
Resource classification and material types are shown below in Tables 1 and 2.
The grade of this MRE is higher grade than previous published MIK estimates
due to the selective nature of the wireframe modelling OK methods. Both MIK
and OK estimation methods produce identical total resource ounces.
Using a 1g/t Au cut-off this new resource constitutes a 40% increase in total
resource ounces from the previous estimate quoted in the 31 December Reserve
and Resource Statement.
Table 1: Syama North Mineral Resources at 30 July 2022 (1g/t cut off)
Table 1: Syama North Mineral Resources at 30 July 2022 (1g/t cut off)
Future Exploration
The drilling program at Syama North is ongoing and is expected to extend
throughout 2022 as results continue to expand the Mineral Resources. The
sulphide mineralisation remains open at depth and appears to be contiguous
along the entire strike length of the Beta and A21 deposits.
Infill drilling will also be undertaken as half the Mineral Resources are
classified as Inferred and will require to be upgraded to Indicated category
to be included in Ore Reserve calculations.
At this stage exploration drilling will be restricted to zones within 150m of
the surface to concentrate on identifying open pit extractable Mineral
Resources. The potential of an open pit operation at Syama North is high with
engineering studies commencing to evaluate the project.
An open pit sulphide mining operation will complement the Syama Underground
Mine and add 'flexibility' to the processing complex.
A new low-level, high definition heliborne aeromagnetic survey commenced in
July to improve on the historical wide-spaced aeromagnetic coverage. The
survey will cover the whole 85 km length of the Greenstone Belt held under
license in an effort to delineate more sulphide resources which are the
long-term future of the mining operation.
Contact
Resolute Public Relations
James Virgo, GM Finance, and Investor Relations Jos Simson / Emily Moss, Tavistock
contact@rml.com.au resolute@tavistock.co.uk
+61 8 9261 6100 +44 207 920 3150 / +44 7788 554 035
Media Corporate Broker
Cameron Morse, FTI Consulting Matthew Armitt / Jennifer Lee, Berenberg
cameron.morse@fticonsulting.com +44 20 3207 7800
+61 433 886 871
Authorised by Mr Terry Holohan, Managing Director and Chief Executive Officer
Competent Persons Statement
The information in this report that relates to the Exploration Results,
Mineral Resources and Ore Reserves is based on information compiled by Mr
Bruce Mowat, a member of The Australian Institute of Geoscientists. Mr Bruce
Mowat has more than 5 years' experience relevant to the styles of
mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person, as defined in the
2012 Edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves" (the JORC Code). Mr Bruce Mowat is a
full-time employee of the Resolute Mining Limited Group and holds equity
securities in the Company. He has consented to the inclusion of the matters in
this report based on his information in the form and context in which it
appears. This information was prepared and disclosed under the JORC Code 2012
except where otherwise noted.
The information in this announcement that relates to the Mineral Resource
estimate has been based on information and supporting documents prepared by Mr
Patrick Smillie, a Competent Person who is a Registered Member of the Society
for Mining, Metallurgy, and Exploration (SME). Mr Smillie is a full-time
employee Resolute Mining Limited Group and has sufficient experience relevant
to the style of mineralisation and type of deposit under consideration and to
the activity which has been undertaken to qualify as a Competent Person. Mr
Smillie confirms that the Mineral Resource estimate is based on information in
the supporting documents and consents to the inclusion in the report of the
Mineral Resource estimate and related content based on the information in the
form and context in which it appears.
Appendix 1: Recent Drilling Results
Syama North
Syama North
Notes to Accompany Table:
• Grid coordinates are WGS84 Zone 29 North
• RC intervals are sampled every 1m by dry riffle splitting or
scoop to provide a 1-3kg sample
• Diamond cores are sampled every 1m by cutting the core in half
to provide a 2-4kg sample
• Cut-off grade for reporting of intercepts is >1g/t Au with a
maximum of 3m consecutive internal dilution included within the intercept;
only intercepts >=2m and >20 gram x metres are reported
• Samples are analysed for gold by 30g fire assay fusion with AAS
instrument finish; over-range results are reanalysed by 30g fire assay fusion
with gravimetric finish
Table 1 - Section 1: Syama North Sampling Techniques and Data
Criteria JORC Code Explanation Commentary
Sampling techniques · Nature and quality of sampling (e.g. cut channels, random chips, or The samples were collected from reverse circulation (RC) and diamond drill
specific specialised industry standard measurement tools appropriate to the holes.
minerals under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc.). These examples should not be taken as limiting the broad RC samples were collected on 1m intervals by riffle split (dry) or by scoop
meaning of sampling. (wet), to obtain a 1-3kg sample which was sent to the laboratory for crushing,
splitting and pulverising to provide a 30g charge for analysis. Following
· Include reference to measures taken to ensure sample representivity splitting adjacent to the bottom-of-hole orientation line, the right-hand side
and the appropriate calibration of any measurement tools or systems used. of the core is sampled in 1m intervals
· Aspects of the determination of mineralisation that are Material to Sampling and sample preparation protocols are industry standard and are deemed
the Public Report. appropriate by the Competent Person.
· 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 Drill types used include reverse circulation with face sampling bit and core
air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple drilling using PQ and HQ sized bits. A digital core orientation system is used
or standard tube, depth of diamond tails, face-sampling bit or other type, to define the bottom of the hole which is transferred to the drilled core..
whether core is oriented and if so, by what method, etc.).
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and Appropriate measures are taken to maximise sample recovery and ensure the
results assessed. representative nature of the samples.
· Measures taken to maximise sample recovery and ensure representative No apparent relationship is noted between sample recovery and grade.
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 Drill holes were geologically logged by geologists for colour, grainsize,
geotechnically logged to a level of detail to support appropriate Mineral lithology, minerals, alteration and weathering on geologically-domained
Resource estimation, mining studies and metallurgical studies. intervals.
· Whether logging is qualitative or quantitative in nature. Core (or Holes were logged in their entirety (100%) and this logging was considered
costean, channel, etc.) photography. reliable and appropriate.
· 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 Reverse circulation samples were collected on 1m intervals by riffle split
taken. (dry) or by scoop (wet) to obtain a 1-3kg sample. Core samples were sawn using
a diamond saw blade with half of the core sent for analysis.
· If non-core, whether riffled, tube sampled, rotary split, etc. and
whether sampled wet or dry. Sample preparation includes oven drying, crushing to 10mm, splitting and
pulverising to 85% passing -75µm. These preparation techniques are deemed to
· For all sample types, the nature, quality and appropriateness of the be appropriate to the material being sampled.
sample preparation technique.
Reverse circulation and core field duplicates were collected by the company at
· Quality control procedures adopted for all sub-sampling stages to a rate of 1:20 samples.
maximise representivity of samples.
Sampling, sample preparation and quality control protocols are of industry
· Measures taken to ensure that the sampling is representative of the standard and all attempts were made to ensure an unbiased representative
in-situ material collected, including for instance results for field sample was collected. The methods applied in this process were deemed
duplicate/second-half sampling. appropriate by the Competent Person.
· 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 All samples were dispatched to ALS Bamako for gold analysis by 30g fire assay
laboratory procedures used and whether the technique is considered partial or fusion with AAS instrument finish (method code Au-AA25). Over-range results
total. were re-analysed and reported by 30g fire assay fusion with gravimetric finish
(method code Au-GRA21). The analytical method was appropriate for the style of
· For geophysical tools, spectrometers, handheld XRF instruments, etc., mineralisation.
the parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc. No geophysical tools were used to determine elemental concentrations.
· Nature of quality control procedures adopted (e.g. standards, blanks, Quality control (QC) procedures included the use of certified standards
duplicates, external laboratory checks) and whether acceptable levels of (1:40), non-certified sand blanks (1:40) and reverse circulation/core field
accuracy (i.e. lack of bias) and precision have been established. duplicates (1:20).
Laboratory quality control data, including laboratory standards, blanks,
duplicates, repeats, grind size results and sample weights were also captured
into the digital database.
Analysis of the QC sample assay results indicates that an acceptable level of
accuracy and precision has been achieved.
Verification of sampling and assaying · The verification of significant intersections by either independent Verification of significant intersections have been completed by company
or alternative company personnel. personnel and the Competent Person.
· The use of twinned holes. No drill holes within the resource area were twinned.
· Documentation of primary data, data entry procedures, data Drill holes were logged into digital templates with lookup codes, validated
verification, data storage (physical and electronic) protocols. and then compiled into a relational SQL 2012 database using DataShed data
management software. The database has verification protocols which are used to
· Discuss any adjustment to assay data. validate the data entry. The drill hole database is backed up on a daily basis
to the head office server.
Assay result files were reported by the laboratory in PDF and CSV format and
imported into the SQL database without adjustment or modification.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar Collar coordinates were picked up in UTM (WGS84) by staff surveyors using an
and down-hole surveys), trenches, mine workings and other locations used in RTK DGPS with an expected accuracy of +/-0.05m; elevations were height above
Mineral Resource estimation. EGM96 geoid.
· Specification of the grid system used. Down hole surveys were collected at 10m intervals using a Reflex EZ-Gyro north
seeking instrument.
· Quality and adequacy of topographic control.
Coordinates and azimuths are reported in UTM WGS84 Zone 29 North.
Tabakoroni drill holes were translated to local mine grid coordinates using 1
point and rotation.
Local topographic control is via LIDAR surveys, satellite photography and
drone UAV aerial survey.
Data spacing and distribution · Data spacing for reporting of Exploration Results. Drill hole spacing was sufficient to demonstrate geological and grade
continuity appropriate for a Mineral Resource and the classifications applied
· Whether the data-spacing and distribution is sufficient to establish under the 2012 JORC Code.
the degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and classifications applied. The appropriateness of the drill spacing was reviewed by the geological
technical team, both on site and head office. This was also reviewed by the
· Whether sample compositing has been applied. Competent Person.
Samples were collected on 1m intervals; no sample compositing is applied
during sampling.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of Holes were drilled predominantly perpendicular to mineralised domains where
possible structures and the extent to which this is known, considering the possible.
deposit type.
No orientation-based sampling bias has been identified in the data.
· 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. Samples were collected from the drill site and stored on site. All samples
were individually bagged and labelled with unique sample identifiers, then
securely dispatched to the laboratories. All aspects of sampling and dispatch
process were supervised and tracked by SOMIFI personnel.
Audits or reviews · The results of any audits or reviews of sampling techniques and data. External audits of procedures indicate protocols are within industry
standards.
Section 2 Reporting of Exploration Results
CRITERIA JORC CODE EXPLANATION COMMENTARY
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including Drilling at Syama was conducted within the Malian Exploitation Concession
agreements or material issues with third parties such as joint ventures, Permit PE 93/003 which covers an area of 200.6 Km2.
partnerships, overriding royalties, native title interests, historical sites,
wilderness or national park and environmental settings. Resolute Mining Limited has an 80% interest in the Syama project and the
Exploitation Permit PE 93/003, on which it is based, through its Malian
· The security of the tenure held at the time of reporting along with subsidiary, Sociêtê des Mines de Syama SA (SOMISY). The Malian Government
any known impediments to obtaining a licence to operate in the area. holds a free carried 20% interest in SOMISY.
Tabakoroni drilling was completed within the Finkolo-Tabakoroni Exploitation
Licence PE 13/19. Resolute Mining Limited has an 90% interest in Exploitation
Permit PE 13/19, through its Malian subsidiary, Société des Mines de Finkolo
SA (SOMIFI). The Malian Government holds a free carried 10% interest in
SOMIFI.
The Permits are held in good standing. Malian mining law provides that all
Mineral Resources are administered by DNGM (Direction Nationale de la
Géologie et des Mines) or National Directorate of Geology and Mines under the
Ministry of Mines, Energy and Hydrology.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. The Syama deposit was originally discovered by a regional geochemical survey
undertaken by the Direction National de Géologie et des Mines (DNGM) with
assistance from the United Nations Development Program (UNDP) in 1985. There
had also been a long history of artisanal activities on the hill where an
outcropping chert horizon originally marked the present day position of the
open pit.
BHP during 1987-1996 sampled pits, trenches, auger, RC and diamond drill holes
across Syama prospects. Randgold Resources Ltd during 1996-2000 sampled pits,
trenches, auger, RAB, RC and diamond drill holes across Syama prospects.
Etruscan Resources Inc explored Tabakoroni during 2002-2003 by auger, aircore,
RC and diamond drill hole tails. The Tabakoroni area was previously explored
Barrick Gold (1990) by auger, pits, trenches, RAB and diamond core drilling.
Geology · Deposit type, geological setting and style of mineralisation. The Syama Project is found on the northern margin of the Achaean-Proterozoic
Leo Shield which forms the southern half of the West African Craton. The
project area straddles the boundary between the Kadiana-Madinani terrane and
the Kadiolo terrane. The Kadiana-Madinani terrane is dominated by greywackes
and a narrow belt of interbedded basalt and argillite. The Kadiolo terrane
comprises polymictic conglomerate and sandstone that were sourced from the
Kadiana-Madinani terrane and deposited in a late- to syntectonic basin.
Prospects are centred on the NNE striking, west dipping, Syama-Bananso Fault
Zone and Birimian volcano-sedimentary units of the Syama Formation. The major
commodity being sought is gold.
The Tabakoroni deposit is hosted in upright tightly folded greenstone rocks of
the Syama Formation, comprising interbedded basalt and sediment units, and an
overlying complex sequence of deep marine and turbiditic sediments. The
sequence overlying the basalts contains interbedded carbonaceous units (silts
and shales) that are preferentially deformed, and which form the Tabakoroni
Main Shear Zone (TMSZ) that lies along the approximate contact of the
greenstone-sediment sequence. Gold mineralisation occurs within the TMSZ
associated with quartz vein stockworks and stylolitic quartz reefs.
· A summary of all information material to the understanding of the All information, including easting, northing, elevation, dip, azimuth,
exploration results including a tabulation of the following information for coordinate system, drill hole length, intercept length and depth are measured
Drill hole Information all Material drill holes: and recorded in UTM Zone 29 WGS84.
o easting and northing of the drill hole collar The Syama belt is mostly located on the Tengrela 1/200,000 topo sheet (Sheet
NC 29-XVIII).
o elevation or RL (Reduced Level - elevation above sea level in metres) of
the drill hole collar The Tabakoroni local grid has been tied to the UTM Zone 29 WGS84 co-ordinate
system.
o dip and azimuth of the hole
Spectrum Survey & Mapping from Australia established survey control at
o down hole length and interception depth Tabakoroni using AusPos online processing to obtain an accurate UTM Zone 29
(WGS84) and 'above geoid' RL for the origin of the survey control points.
o whole length.
Accuracy of the survey measurements is considered to meet acceptable industry
· If the exclusion of this information is justified on the basis that standards.
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why Drill hole information has been tabulated for this release in the intercepts
this is the case. table of the accompanying text.
For completeness the following information about the drill holes is provided:
· Easting, Northing and RL of the drill hole collars are measured
and recorded in UTM Zone 29 (WGS84)
· Dip is the inclination of the drill hole from horizontal. A drill
hole drilled at -60° is 60° from the horizontal
· Down hole length is the distance down the inclination of the hole
and is measured as the distance from the horizontal to end of hole
· Intercept depth is the distance from the start of the hole down
the inclination of the hole to the depth of interest or assayed interval of
interest.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, Exploration results reported in this announcement are tabulated using the
maximum and/or minimum grade truncations (e.g. cutting of high grades) and following parameters:
cut-off grades are usually Material and should be stated.
· Grid coordinates are WGS84 Zone 29 North
· Where aggregate intercepts incorporate short lengths of high-grade
results and longer lengths of low-grade results, the procedure used for such · Cut-off grade for reporting of intercepts is >=1g/t Au
aggregation should be stated and some typical examples of such aggregations
should be shown in detail. · No top cut of individual assays prior to length weighted
compositing of the reported intercept has been applied
· The assumptions used for any reporting of metal equivalent values
should be clearly stated. · Maximum 3m consecutive internal dilution included within the
intercept
Metal equivalent values are not used in reporting.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of The Syama mineralisation is steeply dipping at approximately 60 degrees from
Exploration Results. the horizontal.
· If the geometry of the mineralisation with respect to the drill hole The majority of the Tabakoroni mineralisation is vertical. There is one domain
angle is known, its nature should be reported. which dips at 45o to the west.
· If it is not known and only the down hole lengths are reported, there The majority of the drill holes are planned at a general inclination of ‑60
should be a clear statement to this effect (e.g. 'down hole length, true width degrees east and as close to perpendicular to the ore zone as possible.
not known').
At the angle of the drill holes and the dip of the ore zones, the reported
intercepts will be slightly more than true width.
Diagrams · Appropriate maps and sections (with scales) and tabulations of Relevant maps, diagrams and tabulations are included in the body of text.
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 Exploration results and infill drilling results are being reported in this
practicable, representative reporting of both low and high grades and/or announcement and tabulated in the body of the text.
widths should be practiced, to avoid misleading reporting of Exploration
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be No geophysical and geochemical data or any additional exploration information
reported including (but not limited to): geological observations; geophysical has been reported in this release, as they are not deemed relevant to the
survey results; geochemical survey results; bulk samples - size and method of release.
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 Further drilling is planned.
extensions or depth extensions or large-scale step-out drilling).
· 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
Database integrity · Measures taken to ensure that data has not been corrupted by, for Data have been compiled into a relational SQL database; the setup of this
example, transcription or keying errors, between its initial collection and database precludes the loading of data which do not meet the required
its use for Mineral Resource estimation purposes. validation protocols. The data is managed using DataShed© drill hole
management software using SQL database techniques. Validation checks are
· Data validation procedures used. conducted using SQL and DataShed© relational database standards. Data has
also been checked against original hard copies for 85% of the data, and where
possible, loaded from original data sources.
Resolute carried out the following basic validation checks on the data
supplied prior to resource estimation:
Ø Drill holes with overlapping sample intervals;
Ø Sample intervals with no assay data or duplicate records;
Ø Assay grade ranges;
Ø Collar coordinate ranges;
Ø Valid hole orientation data.
There are no significant issues identified with the data.
Site visits · Comment on any site visits undertaken by the Competent Person and the No site visit has been undertaken by the Competent Person due to the recency
outcome of those visits. of employment by the Company. A site visit is planned for October 2022.
· 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 digital database used for the interpretation included logged intervals for
interpretation of the mineral deposit. the key stratigraphic zones.
· Nature of the data used and of any assumptions made. Drill density (25m by 50m) for the majority of the deposit area allows for
interpretation of the geology and mineralized domains. More recent
· The effect, if any, of alternative interpretations on Mineral infill/verification drilling of selected more structurally complicated areas,
Resource estimation. confirms the positions of mineralized zones. Geological and structural
controls support modelled mineralized zones.
· The use of geology in guiding and controlling Mineral Resource
estimation. Continuity of mineralization is affected by proximity to structural conduits,
stratigraphic position, lithology of key stratigraphic units and porosity of
· The factors affecting continuity both of grade and geology. host lithologies.
The interpretations for the weathering surfaces have been compiled by site
geological personnel using the drill hole database and the logs identifying
Oxide, Transitional and Fresh material.
Dimensions · The extent and variability of the Mineral Resource expressed as The Syama North area extends for approximately 6,000 metres in strike and the
length (along strike or otherwise), plan width, and depth below surface to the west dipping gold mineralised zone is between 200-500 metres in horizontal
upper and lower limits of the Mineral Resource. width. The Mineral Resource is limited in depth by drilling, which extends
from surface to a maximum depth of approximately 350 metres vertically.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied Estimation of gold grade has been completed using Ordinary Kriging (OK).
and key assumptions, including treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of extrapolation from data The deposit mineralisation has been constrained by wireframes constructed
points. If a computer assisted estimation method was chosen include a using a combination of downhole gold assay and associated lithological
description of computer software and parameters used. logging. These lode wireframes have been used to define domain codes used for
estimation. The drillholes have been flagged with the domain code and
· The availability of check estimates, previous estimates and/or mine composited using the domain code to segregate the data.
production records and whether the Mineral Resource estimate takes appropriate
account of such data. Domain boundary analysis has been undertaken, with hard boundaries used for
all domains.
· The assumptions made regarding recovery of by-products.
Drillholes have been composited to 1m intervals using Leapfrog Geo 2021.2.5
· Estimation of deleterious elements or other non-grade variables of with residual lengths distributed evenly across all composites. There are no
economic significance (e.g. sulphur for acid mine drainage characterization). residual samples.
· In the case of block model interpolation, the block size in relation The influence of extreme gold assays has been reduced by top-cutting across
to the average sample spacing and the search employed. selected domains. Top-cuts have been determined using a combination of log
probability, log histogram, and mean-variance plots. Top-cuts have been
· Any assumptions behind modelling of selective mining units. reviewed and applied to the composites on a domain-by-domain basis.
· Any assumptions about correlation between variables. Variography has been determined using Datamine Supervisor v.8.14 software
using top-cut values. Where there is insufficient data in individual domains
· Description of how the geological interpretation was used to control to generate meaningful variograms, domains have been grouped, or variograms
the resource estimates. borrowed from other similar domains.
· Discussion of basis for using or not using grade cutting or capping. Drillhole data spacing ranges from 10m spacing in areas of dense drilling to
approximately 100m spacing in sparsely drilled, deeper areas.
· The process of validation, the checking process used, the comparison
of model data to drill hole data, and use of reconciliation data if available. The block model parent block size is 5m (X) by 10m (Y) by 5m (Z) with
sub-blocks down to 0.3125m (X) by 0.625m (Y) by 0.3125m (Z), with the
sub-blocks estimated at the scale of the parent block. The block size is
considered appropriate for the drillhole spacing throughout the deposit.
Grade estimation has been completed in three passes:
Ø Pass 1 estimation has been undertaken using a minimum and maximum number of
sample composites (determined using Datamine Supervisor v.8.14 KNA tool) into
a search ellipsoid with dimensions equal to half the variogram range of the
domain.
Ø Pass 2 estimation has been undertaken with the same minimum/maximum samples
as Pass 1 into a search ellipsoid twice the first pass.
Ø Pass 3 estimation has been undertaken with a minimum of 4 samples, and the
same maximum number of samples as the first two passes into a search ellipsoid
twice the second pass
Ø A four drillhole limit has been applied to the passes.
Previous Mineral Resource estimates are comparable in size and scope when
considering the additional extensional drilling included in the current
estimate.
The Mineral Resource estimate has been validated using visual validation
tools, mean grade comparisons between the block model and declustered
composite grade means, and swath plots comparing the input composite grades
and the block model grades by Northing, Easting, and RL
No selective mining units are assumed in the estimate.
There will be no by-products recovered from mining.
No additional or deleterious elements have been estimated.
The model focuses on interpreting mineralisation beneath existing open pits.
Historical reconciliation data is incomplete and has not been used.
Moisture · Whether the tonnages are estimated on a dry basis or with natural Tonnages are estimated on a dry basis. No moisture values have been reviewed.
moisture, and the method of determination of the moisture content.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters
applied.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining It is assumed that mining methods would be similar to Resolute's nearby Syama
dimensions and internal (or, if applicable, external) mining dilution. It is deposit.
always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential mining methods, but the Mining method for the extraction of gold at Syama was previously by open pit
assumptions made regarding mining methods and parameters when estimating mining excavating benches of 2.5 metres in height. Grade control is conducted
Mineral Resources may not always be rigorous. Where this is the case, this on sampling from high quality reverse circulation drilling, spaced at
should be reported with an explanation of the basis of the mining assumptions approximately 4mE by 10mN, with samples taken at one and half metre intervals
made. down-hole. Sub-Level Caving (SLC) is used for underground mining at Syama.
The Underground model was generated from the 250m RL to the -400m RL. Open pit
methods will be used by Resolute to the 120mRL. The reconciliation, geological
continuity, structural trends and metallurgical factors experienced within the
open pit are assumed to apply to the underground.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical Extensive metallurgical investigations and reporting have been completed prior
amenability. It is always necessary as part of the process of determining to the commencement of mining and milling at the nearby Syama deposit.
reasonable prospects for eventual economic extraction to consider potential
metallurgical methods, but the assumptions regarding metallurgical treatment The processing method involves crushing, milling, flotation and roasting,
processes and parameters made when reporting Mineral Resources may not always followed by conventional CIL recovery.
be rigorous. Where this is the case, this should be reported with an
explanation of the basis of the metallurgical assumptions made. There is no evidence to suggest that the metallurgical characteristics of ore
extracted from Syama North would change from that encountered at Syama.
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue It is assumed that environmental factors would be largely similar to those at
disposal options. It is always necessary as part of the process of determining the nearby Syama Deposit.
reasonable prospects for eventual economic extraction to consider the
potential environmental impacts of the mining and processing operation. While It is a requirement of Decree No.03-594/P-RM of 31 December 2003 of Malian law
at this stage the determination of potential environmental impacts, that an Environmental and Social Impact Study (Étude d'Impact Environmental
particularly for a green fields project, may not always be well advanced, the et Social - EIES) must be undertaken to update the potential environmental and
status of early consideration of these potential environmental impacts should social impacts of the mine's redevelopment. In November 2007 the EIES for the
be reported. Where these aspects have not been considered this should be Syama Gold Mine was approved and an Environment Permit (07- 0054/MEA - SG)
reported with an explanation of the environmental assumptions made. issued by the Ministry of Environment and Sanitation on the 22 November 2007.
At Syama there are three key practices for disposal of wastes and residues
namely, stacking of waste rock from open pit mining; storage of tailings from
mineral processes; and "tall-stack dispersion" of sulphur dioxide from the
roasting of gold bearing concentrate.
The Environmental & Social Impact Study - "Société des Mines de Syama,
Syama Gold Mine, Mali, dated 2007, found "a minimal potential for acid
drainage from waste rock, as historical analysis indicates that the high
carbonate content of the material will suppress any potential acid
generation." Progressive rehabilitation of waste rock landforms has begun and
a management plan for waste rock dumping is the subject of ongoing
development.
The landform of tailings impoundments does not have a net acid generating
potential. The largest volume is flotation tailings where the sulphide
minerals have already been removed from the host rock. Its mineralogy includes
carbonates which further buffer any acid-formation potential from sulphides
that may also be present.
Cyanide levels in the leached-calcine tailings are typically less than 50 ppm
in the weak acid dissociable form. Groundwater away from the tailings landform
is intercepted by trenches and sump pumps.
Sulphur dioxide is generated from the roasting of gold concentrate so that
gold can be extracted and refined. Tall-Stack "dispersion" of the sulphur
dioxide emission is monitored continuously. Prevailing weather and dissipation
of the sulphur dioxide is modelled daily to predict the need to pause the
roasting process in order to meet the air quality criteria set out in the
Environmental & Social Impact Study.
Bulk density · Whether assumed or determined. If assumed, the basis for the Bulk density values have been determined through analysis of rock and diamond
assumptions. If determined, the method used, whether wet or dry, the frequency core samples.
of the measurements, the nature, size and representativeness of the samples.
A total of 576 bulk density measurements have been gathered using the water
· The bulk density for bulk material must have been measured by methods immersion method.
that adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit. An average bulk density value has been assigned to each of the oxide,
transitional, and fresh material across 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 Mineral Resources were classified in accordance with the Australasian Code for
varying confidence categories. the Reporting of Exploration Results, Mineral Resources and Ore Reserves
(JORC, 2012).
· Whether appropriate account has been taken of all relevant factors
(i.e. relative confidence in tonnage/grade estimations, reliability of input The deposit has been classified as Measured, Indicated, and Inferred Mineral
data, confidence in continuity of geology and metal values, quality, quantity Resource based on a combination of quantitative and qualitative criteria which
and distribution of the data). include geologic continuity, confidence in volume models, data quality, sample
spacing, lode continuity, and estimation parameters (number of informing
· Whether the result appropriately reflects the Competent Person's view composites, estimation pass number, kriging quality parameters, and minimum
of the deposit. and average distance composites).
The Measured portion of the Resource was defined using areas populated on the
first estimation pass, within 20m of informing composites; the kriging
efficiency and slope of regression were generally >=0.7; and high
confidence exists in lode continuity (strike and thickness).
The Indicated portion of the Resource was defined using areas populated on the
first two estimation passes within 50m of informing composites; the kriging
efficiency and slope of regression were generally >=0.7; and moderate to
high confidence exists in lode continuity (strike and thickness).
Mineralisation that not classified by the above parameters has been classified
as Inferred.
The input data is comprehensive in its coverage and does not favour or
misrepresent the in situ mineralisation. The definition of the mineralised
zones is based on a high level of geologic understanding from good quality
sample data, producing models of continuous mineralised lodes. Validation of
the block model shows good correlation of the input data to the block
estimated grades.
The Mineral Resource estimate appropriately reflects the view of the Competent
Person.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. No external audit of the Resource has been completed.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence The relative accuracy of the Mineral Resource estimate is reflected in the
level in the Mineral Resource estimate using an approach or procedure deemed reporting of Measured, Indicated and Inferred as per the guidelines of the
appropriate by the Competent Person. For example, the application of 2012 JORC Code.
statistical or geostatistical procedures to quantify the relative accuracy of
the resource within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors that 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.
· These statements of relative accuracy and confidence of the estimate
should be compared with production data, where available.
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