REG - Shanta Gold Limited - Group Reserves & Resources Statement
03/04/2024 07:00
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RNS Number : 0625J Shanta Gold Limited 03 April 2024
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union Withdrawal Act 2018 ("MAR"), and is disclosed
in accordance with the Company's obligations under Article 17 of MAR
3 April 2024
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
Group Reserves & Resources Statement
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and
explorer, is pleased to announce updated Group reserves and resources as at 31
December 2023 for its New Luika Gold Mine ("New Luika") and Singida Gold Mine
("Singida") in Tanzania and our key deposits in Kenya ("West Kenya").
Group Reserves & Resources (1)
Summary Proved & Probable Measured & Inferred Total
Indicated
Reserves
Deposit Grade Ounces (koz) Grade Ounces (koz) Grade Ounces (koz) Grade Ounces (koz)
(Au g/t)
(Au g/t)
(Au g/t)
(Au g/t)
TANZANIA (2)
New Luika 2.71 297 2.74 672 1.78 259 2.38 931
Singida 2.88 203 2.55 413 2.12 408 2.32 823
Sub-total 2.78 500 2.66 1,085 1.98 667 2.35 1,754
KENYA (3)
Kakamega (4) - - 11.45 722 9.68 564 10.6 1,285
Ramula - - 2.43 417 2.27 53 2.41 470
Sub-total - - 4.86 1,139 7.56 617 5.55 1,755
GROUP (5) 2.78 500 3.47 2,224 3.06 1,284 3.31 3,509
1. Resources are inclusive of Reserves.
2. JORC 2012 compliant resources, as of 31st December 2023
3. NI 43-101 compliant resources, as of 31st December 2023
4. Includes Isulu and Bushiangala deposits.
5. Weighted average by tonnes of ore
Eric Zurrin, Chief Executive Officer, commented:
"A key focus for Shanta in Tanzania in 2023 was the completion of construction
at Singida, our second producing mine. Having achieved commercial production
at Singida in June 2023, the Company was once again able to direct financial
resources towards targeted drilling at both New Luika and Singida in the
second half of 2023. The reserve-based mine life at both mines remains
unchanged from the end of 2022 and work remains ongoing in adding new reserves
to the mine plan.
At West Kenya, exploration continued across multiple deposits during the
second half of 2023. The main aim of the drilling programme which is still
ongoing is to convert Inferred resources to the Indicated category for the
Ramula deposit and test the mineralisation potential for the other regional
targets.
We will keep you updated on the progress of these exploration programmes as
results become available."
Highlights:
Group
· Total Group-wide resources of 3.51 Moz ("oz") grading 3.31 g/t Au,
comprising:
o New Luika JORC resource of 931 Koz grading 2.38 g/t Au.
o Singida JORC resource of 823 Koz grading 2.32 g/t Au.
o Kakamega Camp NI 43-101 resource of 1,285 Koz grading 10.60 g/t Au.
o Ramula NI 43-101 resource of 470 Koz grading 2.41 g/t Au.
Tanzania
· Total JORC 2012 compliant gold reserves of 500 Koz grading 2.78 g/t
Au (625 Koz grading 2.91 g/t Au as at end of 2022) across the Company's two
projects in Tanzania, comprising:
o New Luika JORC reserves of 297 Koz grading 2.71 g/t Au.
o Singida JORC reserves of 203 Koz grading 2.88 g/t Au.
· Reduction in reserves & resources due to limited drilling in 2023
and reserve depletion from mining operations.
o 2023 Tanzanian exploration spend limited to US$2.3 million including
17,363 metres of drilling.
· Newly defined reserves of 5 Koz added at New Luika in 2023, before
depletion and optimisation, predominantly from Luika and Bauhinia Creek North
Underground deposits.
· Reduction in Singida reserves & resources reflective of mining
depletion following commencement of commercial scale production.
· Reserve-based mine life remains unchanged to the end of Q1 2028 at
New Luika and end of 2029 at Singida.
· Tailings Retreatment Project at New Luika contributes an additional
48 Koz of recoverable gold and extends the operating life to at least February
2031.
· Total resources of 1.75 Moz grading 2.35 g/t Au across both projects
in Tanzania (JORC 2012 compliant).
West Kenya
· Total West Kenya resources of 1.76 Moz grading 5.55 g/t Au.
· West Kenya Indicated resources of 1.14 Moz grading 4.86 g/t Au.
· The 2023 drilling exploration results will be incorporated into the
next resource update which is expected to be completed in Qtr 2, 2024
Tanzania ‒ Breakdown of New Reserves reconciliation in 2023
New reserves at the New Luika, by deposit, added during 2023 are summarised
below:
Deposit Reserves Dec 2022 Ounces Added Ounce Depletion Resource Optimisation Reserves Dec 2023
(koz)
(koz)
(koz)
(koz)
(koz)
Luika 189 5 (66) (6) 121
Bauhinia Creek 14 - (6) (1) 7
Ilunga 25 - - - 25
BC North 14 0 (2) - 12
Elizabeth Hill 70 - (14) (2) 55
Black Tree Hill 54 - - - 54
Porcupine South 29 - - (6) 23
Total 394 5 (88) (14) 297
New Luika Reserves
The total reserves position for New Luika as of 31(st) December 2023(1) is
summarised below:
Deposit and classification PROVED AND PROBABLE RESERVES
Ore tonnes Ore grade (g/t Au) Contained Ounces (koz)
(kt)
Ore Reserves - Underground 1,336 3.74 161
Ore Reserves - Open Pit 2,074 2.05 137
Total Ore Reserve (1) 3,410 2.71 297
1. Reserves are reported in accordance
with the JORC Code 2012.
New Luika Underground Reserves(1,2,3,4)
The underground proved and probable reserve statement is shown below:
Deposit PROVED & PROBABLE RESERVES
Cut-off grade ("COG") Ore tonnes (kt) Ore grade Contained ounces (koz)
(g/t Au)
(g/t)
Luika 1.6 1,056 3.58 121
Ilunga 2.0 150 5.09 25
BC North 1.9 73 3.14 7
BC 1.9 57 4.06 7
Total Ore Reserve - Underground 1,336 3.74 161
1. Proved Reserve is 112.0 kt @ 3.29 g/t Au equivalent to 12 Koz.
2. Reserves are reported in accordance with the JORC Code 2012.
3. Reserve estimates assume application of long-hole open-stoping.
Economic evaluations are at a gold price of
US$1,550 /oz. A gold recovery of 90% has been applied.
4. JORC Code 2012 disclosures for these reserves are appended to this
statement.
New Luika Open Pit Ore Reserves(1,2,3,4)
The open pit proved, and probable reserve statement is shown below:
Deposit PROVED AND PROBABLE RESERVES
COG Ore tonnes Ore grade (g/t Au) Contained Ounces (koz)
(kt)
(g/t)
Black Tree Hill 0.6 798 2.09 54
Elizabeth Hill 0.6 845 2.02 55
Bauhinia Creek North 0.6 73 1.96 5
Porcupine South 0.6 358 2.02 23
Total Ore Reserve - Open Pit 2,074 2.05 137
1. Proved Reserve is 227.0 kt @ 2.14 g/t Au equivalent to 16.0 koz.
2. Reserves are reported in accordance with the JORC Code 2012.
3. Economic evaluations are at a gold price of US$1,350 /oz. A gold recovery
of 90% has been applied.
4. JORC Code 2012 disclosures for these reserves are appended to this
statement.
New Luika Deposits - Resources Outside Mine Design(1) as of 31(st) December
2023 (1.0 Au g/t COG OP, 1.0 Au g/t COG UG)
Resources are reported in accordance with the JORC Code 2012.
Deposit(1) JH SH EH BTH IL LK BC BCEA1 BCN BCE LS PS BTHN Total
Open Pit Ore kt (Measured) 1,873 17,420 19,293
Grade (Au g/t) 2.77 2.91 2.90
Contained ounces (koz) 167 1,632 1,799
Ore kt (Indicated) 585,333 9,111 198,495 101,402 137,558 467,415 567 35,664 24,915 94 118,350 133,574 114,012 1,926,490
Grade (Au g/t) 1.76 1.41 1.49 2.06 3.27 3.53 7.61 3.35 2.23 3.76 3.65 1.68 1.78 2.43
Contained ounces (koz) 33,169 412 9,482 6,729 14,459 52,990 139 3,838 1,787 11 13,881 7,206 6,525 150,628
Ore kt (Inferred) 37,147 89,251 77,239 8,095 10,255 1,413 42,579 21,946 37,423 325,348
Grade (Au g/t) 1.45 1.6 1.23 1.63 1.49 0 0 0 0 3.39 3.17 2.2 1.4 1.72
Contained ounces (koz) 1,736 4,578 3,053 425 493 154 4,342 1,553 1,684 18,018
Total Open Pit Ore kt 622,480 98,362 275,734 111,370 147,812 484,835 567 35,664 24,915 1,506 160,929 155,520 151,435 2,271,129
Grade (Au g/t) 1.74 1.58 1.41 2.04 3.15 3.5 7.61 3.35 2.23 3.41 3.52 1.75 1.69 2.33
Contained ounces (koz) 34,905 4,990 12,535 7,321 14,951 54,622 139 3,838 1,787 165 18,223 8,759 8,209 170,444
Deposit JH SH EH BTH IL LK BC BCEA1 BCN BCE LS PS BTHN Total
Underground Ore kt (Measured) 118,912 118,912
Grade (Au g/t) 2.99 2.99
Contained ounces (koz) 11,430 11,430
Ore kt (Indicated) 22,086 871,765 591,279 168,341 434,137 383,652 32,751 10,197 253,102 2,767,310
Grade (Au g/t) 3.08 1.9 1.61 2.55 2.85 4.16 4.87 4.4 1.97 2.40
Contained ounces (koz) 2,189 53,147 30,617 13,777 39,796 51,257 5,131 1,442 16,010 213,366
Ore kt (Inferred) 722,699 7,032 1,762,543 335,371 79,140 88,519 355,861 45,374 25,894 136,164 832,299 4,390,896
Grade (Au g/t) 1.63 1.59 1.53 1.26 4.43 2.28 2.34 3.29 4.28 3.14 1.67 1.77
Contained ounces (koz) 37,791 360 86,462 13,562 11,276 6,489 26,724 4,801 3,565 13,730 44,691 249,451
Total Underground Ore kt 744,784 7,032 2,634,308 926,650 247,481 641,568 739,513 78,125 36,090 136,164 849,156 7,040,871
Grade (Au g/t) 1.67 1.59 1.65 1.48 3.15 2.8 3.28 3.95 4.31 3.14 1.79 2.10
Contained ounces (koz) 39,980 360 139,609 44,179 25,053 57,715 77,981 9,933 5,007 13,730 60,701 474,248
Deposit JH SH EH BTH IL LK BC BCEA1 BCN BCE LS PS BTHN Total
Open Pit + Underground Ore kt (Measured) 0 0 0 1,873 0 136,332 0 0 0 0 0 0 0 138,205
Grade (Au g/t) 2.77 2.98 2.98
Contained ounces (koz) 0 0 0 167 0 13,062 0 0 0 0 0 0 0 13,229
Ore kt (Indicated) 607,419 9,111 1,070,260 692,681 305,899 901,552 384,219 68,415 35,112 94 118,350 386,676 114,012 4,693,800
Grade (Au g/t) 1.81 1.41 1.82 1.68 2.87 3.20 4.16 4.08 2.86 3.64 3.65 1.87 1.78 2.41
Contained ounces (koz) 35,358 412 62,629 37,346 28,236 92,786 51,396 8,969 3,229 11 13,881 23,216 6,525 363,994
Ore kt (Inferred) 759,846 96,283 1,839,782 343,466 89,395 88,519 355,861 45,374 25,894 1,413 178,743 854,245 37,423 4,716,244
Grade (Au g/t) 1.62 1.60 1.51 1.27 4.09 2.28 2.34 3.29 4.28 3.39 3.14 1.68 1.40 1.76
Contained ounces (koz) 39,527 4,938 89,515 13,987 11,769 6,489 26,724 4,801 3,565 154 18,072 46,244 1,684 267,469
Grand Total - OP + UG Ore kt 1,367,264 105,394 2,910,042 1,038,020 395,293 1,126,403 740,080 113,789 61,005 1,506 297,093 1,004,676 151,435 9,312,000
Grade (Au g/t) 1.70 1.58 1.63 1.54 3.15 3.10 3.28 3.76 3.46 3.41 3.35 2.15 1.69 2.15
Contained ounces (koz) 74,885 5,350 152,144 51,500 40,004 112,337 78,120 13,771 6,794 165 31,953 69,460 8,209 644,692
1. Resources Outside of the Mine Design exclude reserves and resources that do
not meet a minimum cut-off grade for economic viability.
Deposit glossary: JH - Jamhuri / SH - Shamba / EH - Elizabeth Hill / BTH -
Black Tree Hill / IL - Ilunga / BC - Bauhinia Creek / BCEA1 - Bauhinia Creek
East Area 1 / BCN - Bauhinia Creek North / BCE - Bauhinia Creek East / LS -
Luika South / PS - Porcupine South / BTHN - Black Tree Hill North
Singida Deposits - Resources Outside Mine Design (1.0 Au g/t COG)
Open Pit Deposit Cornpatch East Cornpatch West Gold Tree Gustav Jem Kaizer Chief Vivian Total
Ore kt (Indicated) 85 158 171 196 139 226 44 1,017
Grade (Au g/t) 1.47 1.76 1.61 1.66 2.05 1.59 2.10 1.71
Contained koz (ounces) 4 9 9 10 9 12 3 56
Ore kt (Inferred) 17 422 82 70 3 32 39 665
Grade (Au g/t) 1.18 2.76 2.24 1.59 1.95 1.87 1.53 2.41
Contained koz (ounces) 1 37 6 4 0 2 2 52
Total Open Pit Ore kt (Ind+Inf) 101 580 252 266 142 258 83 1,682
Grade (Au g/t) 1.42 2.49 1.82 1.64 2.05 1.63 1.83 1.99
Contained koz (ounces) 5 46 15 14 9 14 5 107
Underground Deposit Cornpatch East Cornpatch West Gold Tree Gustav Jem Kaizer Chief Vivian Total
Ore kt (Indicated) 120 9 489 26 401 178 29 1,252
Grade (Au g/t) 2.29 1.64 1.99 1.58 3.25 1.43 2.70 2.35
Contained koz (ounces) 9 0 31 1 42 8 2 95
Ore kt (Inferred) 199 790 4,148 245 719 603 143 6,848
Grade (Au g/t) 2.53 1.75 2.03 1.66 2.95 1.90 2.66 2.10
Contained koz (ounces) 16 44 271 13 68 37 12 462
Total Underground Ore Tonnes (Ind+Inf) 320 799 4,638 271 1,120 782 171 8,100
Grade (Au g/t) 2.44 1.75 2.03 1.66 3.06 1.79 2.67 2.14
Contained Ounces (oz) 25 45 302 14 110 45 15 556
Open Pit + Underground Deposit Cornpatch East Cornpatch West Gold Tree Gustav Jem Kaizer Chief Vivian Total
Ore kt (Indicated) 205 166 660 221 540 405 72 2,269
Grade (Au g/t) 1.95 1.75 1.90 1.65 2.94 1.52 2.34 2.06
Contained koz (ounces) 13 9 40 12 51 20 5 150
Ore kt (Inferred) 216 1,212 4,230 315 722 635 182 7,513
Grade (Au g/t) 2.43 2.10 2.03 1.65 2.95 1.90 2.42 2.12
Contained koz (ounces) 17 82 276 17 68 39 14 513
Total OP+UG Ore kt (Ind+Inf) 421 1,379 4,890 537 1,261 1,040 254 9,781
Grade (Au g/t) 2.19 2.06 2.01 1.65 2.95 1.75 2.39 2.11
Contained koz (ounces) 30 91 317 28 119 59 20 664
New Luika Gold Mine
Mineral Resource Estimate (MRE) inclusive of Reserves - 31(st) December 2023 -
COG 1.0 g/t
JORC 2012 Classification
Deposit Measured Indicated Inferred Total Resource
Tonnes (kt) Grade Au_g/t Ounces (koz) Tonnes (kt) Grade Au_g/t Ounces (koz) Tonnes (kt) Garde Au_g/t Ounces (koz) Tonnes (kt) Grade Au_g/t Ounces (koz)
Jamhuri 613 1.82 36 760 1.62 40 1,373 1.71 75
Shamba 17 1.84 1 99 1.62 5 116 1.66 6
Elizabeth Hill 1,705 2.15 118 1,843 1.51 90 3,548 1.82 207
Black Tree Hill 186 2.61 16 1,136 2.05 75 350 1.27 14 1,671 1.95 105
Ilunga 568 3.91 72 105 3.66 12 674 3.87 84
Luika 275 3.14 28 1,519 3.65 178 89 2.28 6 1,882 3.51 212
Bauhinia Creek 384 4.16 51 356 2.34 27 740 3.28 78
Bauhinia Creek East Area 1 108 3.75 13 47 3.31 5 154 3.61 18
Bauhinia Creek North 182 2.90 17 36 4.39 5 218 3.14 22
Bauhinia Creek East 0 3.19 0 1 3.12 0 1 3.13 0
Luika South 118 3.67 14 178 3.15 18 296 3.35 32
Black Tree Hill North 114 1.78 7 37 1.40 2 151 1.69 8
Porcupine South 705 2.12 48 624 1.73 35 1,329 1.94 83
Grand Total 460 2.92 43 7,168 2.73 629 4,524 1.78 259 12,152 2.38 931
Singida Reserves and Resources
The total proved and probable reserves position for Singida as of 31(st)
December 2023 is given below:
Singida Gold Mine - Tanzania
JORC 2012 Reserve (1,2)
(31(st) Dec 2023)
JORC 2012 Classification
Deposit COG PROVED AND PROBABLE RESERVES
(g/t)
Ore tonnes (kt) Ore grade (g/t Au) Contained Ounces
(koz)
Cornpatch 0.79 134 1.88 8
Cornpatch West 0.78 294 3.46 33
Gold Tree 0.74 1,096 3.17 112
Gustav 0.78 129 1.70 7
Jem 0.74 324 2.86 30
Kaizer Chief 0.78 142 1.65 8
Vivian 0.74 74 2.26 5
Grand Total 2,193 2.88 203
1. Proved Reserve is 1,115kt @ 3.15g/t equivalent to 113koz.
2. Reserves are reported in accordance with the JORC Code 2012.
Singida Gold Mine - Tanzania
Mineral Resource Estimate (MRE) inclusive Reserve
(31(st) December 2023)
JORC 2012 Classification
Deposit Measured Indicated Inferred Total Resources
Tonnes (kt) Grade g/t Ounces (koz) Tonnes (kt) Grade Ounces (koz) Tonnes (kt) Grade Ounces (koz) Tonnes (kt) Grade Ounces (koz)
g/t g/t g/t
Cornpatch 117 2 8 336 1.98 22 517 2.36 39 970 2.18 69
Cornpatch West - - - 824 2.52 67 565 1.87 34 1,389 2.26 101
Gold Tree 747 3.48 84 1,215 2.41 94 3,102 2.03 203 5,064 2.34 380
Gustav - - - 148 1.49 7 783 1.85 47 932 1.79 54
Jem 376 2.99 36 542 2.67 46 532 2.92 50 1,451 2.84 133
Kaizer Chief - - - 475 1.67 25 354 1.98 22 828 1.8 48
Vivian - - - 259 2.93 24 119 3.41 13 378 3.08 37
Grand Total 1,240 3.20 128 3,799 2.34 286 5,972 2.12 408 11,012 2.32 823
Enquiries:
Shanta Gold Limited
Eric Zurrin (CEO) +44 (0) 14 8172 6034
Michal Devine (CFO)
Nominated Adviser and Broker
Liberum Capital Limited
Scott Mathieson / Nikhil Varghese +44 (0) 20 3100 2000
Public Relations
FTI Consulting
Sara Powell / Nick Hennis / Lucy Wigney +44 (0) 20 3727 1426
About Shanta Gold
Shanta Gold is an East Africa-focused responsible gold producer, developer and
explorer. The company has an established operational track record, with
defined ore resources on the New Luika and Singida projects in Tanzania, with
reserves of 500 koz grading 2.78 g/t Au, and exploration licences covering
approximately 600 km(2) in the country. Alongside New Luika and Singida,
Shanta also owns the West Kenya Project in Kenya and licences with resources
of 1.7 million ounces including 1.1 million ounces in the Indicated category
grading 4.86 g/t Au. With a strong balance sheet, a growing diversified
portfolio and dividends paid since 2021, Shanta offers a resilient investment
opportunity for the near and long-term. Shanta is quoted on London's AIM
market (AIM: SHG) and has approximately 1,051 million shares in issue.
Competent Person Statement
The Mineral Resource Model in this report for Isulu, Bushiangala and Ramula
was independently verified, and the resource was estimated by Adiuvare GE
(Cath Pitman P. Geo, ON and NL). Reporting of the resource has been completed
in accordance with Canadian NI 43-101 standards.
The technical information contained within this announcement has been reviewed
by Juma Kisunda (the Company's Technical Services Manager), Evance Rwiza (the
Company's Senior Resource Exploration Manager) and Jackson Kikota (the
Company's Chief Mining Engineer), who are Members of The Australasian
Institute of Mining and Metallurgy (Aus.I.M.M). They have sufficient
experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity being undertaken to qualify as a
Competent Persons as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves' and for
the purposes of the AIM Guidance Note on Mining and Oil & Gas Companies
dated June 2009.
Glossary
Glossary of Technical Terms
"Au" chemical symbol for gold
"cut-off grade" (COG) the lowest grade value that is included in a resource statement. It must
comply with JORC requirement 19: "reasonable prospects for eventual economic
extraction" the lowest grade, or quality, of mineralised material that
qualifies as economically mineable and available in a given deposit. It may
be defined on the basis of economic evaluation, or on physical or chemical
attributes that define an acceptable product specification
"g/t" grammes per tonne, equivalent to parts per million
"Inferred Resource" that part of a Mineral Resource for which tonnage, grade and mineral content
can be estimated with a low level of confidence. It is inferred from
geological evidence and assumed but not verified geological and/or grade
continuity. It is based on information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill
holes which may be limited or of uncertain quality and reliability
"Indicated Resource" that part of a Mineral Resource for which tonnage, densities, shape, physical
characteristics, grade and mineral content can be estimated with a reasonable
level of confidence. It is based on exploration, sampling and testing
information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes. The locations are too
widely or inappropriately spaced to confirm geological and/or grade continuity
but are spaced closely enough for continuity to be assumed
"JORC" The Australasian Joint Ore Reserves Committee Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves 2012 (the "JORC Code"
or "the Code"). The Code sets out minimum standards, recommendations and
guidelines for Public Reporting in Australasia of Exploration Results, Mineral
Resources and Ore Reserves
"koz" thousand troy ounces of gold
"Measured Resource" that part of a Mineral Resource for which tonnage, densities, shape, physical
characteristics, grade and mineral content can be estimated with a high level
of confidence. It is based on detailed and reliable exploration, sampling
and testing information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. The locations
are spaced closely enough to confirm geological and grade continuity
"Mineral Resource" a concentration or occurrence of material of intrinsic economic interest in or
on the Earth's crust in such form, quality and quantity that there are
reasonable prospects for eventual economic extraction. The location,
quantity, grade, geological characteristics and continuity of a Mineral
Resource are known, estimated or interpreted from specific geological evidence
and knowledge. Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured categories when
reporting under JORC
"Mt" million tonnes
"oz" troy ounce (= 31.103477 grammes)
"Reserve" the economically mineable part of a Measured and/or Indicated Mineral Resource
"t" tonne (= 1 million grammes)
APPENDIX 1: SAMPLING TECHNIQUES AND DATA
Sampling techniques · Nature and quality of sampling (e.g. cut channels, random chips, or · Diamond drilling 1m samples
specific specialised industry standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma sondes, or handheld XRF · Reverse circulation (RC) drilling was used to obtain 1 m samples
instruments, etc.). These examples should not be taken as limiting the broad from which 3 kg of material was sent for analysis.
meaning of sampling.
· Drilling sampled on a maximum of 1 m downhole.
· Include reference to measures taken to ensure sample representivity
and the appropriate calibration of any measurement tools or systems used. · Samples were not composited.
· Aspects of the determination of mineralisation that are Material to · Samples were submitted to the SGS Laboratory in Mwanza for
the Public Report. analysis.
· In cases where 'industry standard' work has been done this would be · At least 3kg sample pulverized and a 50g charge fire assayed with
relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m AAS or aqua regia finish for gold
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, · Diamond core drilling; NQ core size
rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter,
triple or standard tube, depth of diamond tails, face-sampling bit or other · RC Drilling
type, whether core is oriented and if so, by what method, etc.).
Drill sample recovery · Method of recording and assessing core and chip sample recoveries · Core sample recoveries routinely measured and recorded in
and results assessed. spreadsheet database.
· Measures taken to maximise sample recovery and ensure · Samples split half core perpendicular to strike of mineralized
representative nature of the samples. zones.
· Whether a relationship exists between sample recovery and grade and · RC samples recovered from on-site cyclone
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 · Logging of geology, alteration and geotechnical aspects recorded in
geotechnically logged to a level of detail to support appropriate Mineral drill logs for diamond core drilling.
Resource estimation, mining studies and metallurgical studies.
· Logging is qualitative; All drill core is photographed.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc.) photography. · Entire intervals that were drilled and/or trenched were logged
· 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 cores · Half core taken; Sawn.
taken.
· RC samples riffled and sub-sample; Submitted for analysis.
· If non-core, whether riffled, tube sampled, rotary split, etc. and
whether sampled wet or dry. · For trench samples, the entire sample for the respective interval
aggregated, not riffled or split.
· For all sample types, the nature, quality and appropriateness of
the sample preparation technique. · Aggregated half core; Entire 3kg sample pulverized at laboratory
prior to fire assay in order to minimize bias.
· Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples. · Drilling and channels planned orthogonal to the strike of
structures/lithologies in order to maximize representivity.
· Measures taken to ensure that the sampling is representative of the
in-situ material collected, including for instance results for field · Field duplicates sampled at appropriate intervals
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 · Fire assay is appropriate for the nature of gold mineralization
laboratory procedures used and whether the technique is considered partial or being assayed.
total.
· No geophysical tools used to generate exploration results.
· For geophysical tools, spectrometers, handheld XRF instruments,
etc., the parameters used in determining the analysis including instrument · Registered reference material inserted at the interval of 20
make and model, reading times, calibrations factors applied and their samples.
derivation, etc.
· Levels of accuracy and precision (detection limit) for gold is 0.01
· Nature of quality control procedures adopted (e.g. standards, ppm which is suitable for the level of assays reported
blanks, duplicates, external laboratory checks) and whether acceptable levels
of accuracy (i.e. lack of bias) and precision have been established.
Verification of sampling and assaying · The verification of significant intersections by either independent · No twinning of drillholes
or alternative company personnel.
· Primary data was logged onto paper and later transferred into
· The use of twinned holes. database, verified by a Senior Geologist and stored in electronic database
that is regularly backed up.
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols. · Database is verified and compared with standard assays stored using
established company protocols.
· Discuss any adjustment to assay data.
· No adjustments have been made to assay data
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · Drillholes and trenches were accurately surveyed using Trimble DGPS
and down-hole surveys), trenches, mine workings and other locations used in survey equipment.
Mineral Resource estimation.
· Drillholes and trenches surveyed in UTM Coordinates System Arc 1960
· Specification of the grid system used.
· Topographical surveys were done using Aerial Lidar Survey
· Quality and adequacy of topographic control.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Drillhole spacing was generally at 50m along strike of the targets
with a vertical spacing of approximately 40 to 50m
· Whether the data spacing, and distribution is sufficient to
establish the degree of geological and grade continuity appropriate for the
Mineral Resource and Ore Reserve estimation procedure(s) and classifications
applied.
· Whether sample compositing has been applied.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · Drilling and trenching planned perpendicular to the interpreted
possible structures and the extent to which this is known, considering the strike of lithological units and geological structures
deposit type.
· 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 secured by senior personnel on site and transported
directly by company vehicle to the laboratories (Quality Labs in NLGM and SGS
in Mwanza)
Audits or reviews · The results of any audits or reviews of sampling techniques and · Internal reviews are regularly completed but no external audits
data. were carried out for the currently reported results
APPENDIX 2: REPORTING OF EXPLORATION RESULTS
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · ML 408/2010 valid until 20 Sep 2030
agreements or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests, historical sites, · ML 518/2014 valid until 30 Jan 2034
wilderness or national park and environmental settings.
· ML 519/2014 valid until 30 Jan 2034
· The security of the tenure held at the time of reporting along with
any known impediments to obtaining a licence to operate in the area. · ML 673/2022 valid until 14 June 2032
· ML 456/2012 valid until 19 Jan 2032
· ML 455/2012 valid until 19 Jan 2032
· ML 457/2012 valid until 19 Jan 2032
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · Historical colonial exploration and mining works
Geology · Deposit type, geological setting and style of mineralisation. · Underlain by a complex association of high grade metamorphic- and
intrusive lithologies, commonly intruded by dykes of variable composition.
Modally, granodioritic and granitic lithologies are most commonly encountered.
· These granodiorites and granites have been interpreted as
late-orogenic intrusive phases associated with gold mineralisation in the
area. Subordinate diorite, porphyroblastic hornblende gabbro,
quartzo-feldspathic felsite and migmatite are also regularly observed.
· Dyke intrusives include dolerite, pegmatite and common aplite and
alaskite, seemingly randomly crosscutting major lithologies, and therefore
regarded as younger than the country rock.
Drill hole Information · A summary of all information material to the understanding of the · Relevant tables included summarising drill holes and trenches.
exploration results including a tabulation of the following information for locations, RL, azimuth, length/depth, and significant intersection intervals
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, · Exploration results from drilling and trench sampling have been
maximum and/or minimum grade truncations (e.g. cutting of high grades) and weighted by interval.
cut-off grades are usually Material and should be stated.
· High-grade caps have been applied.
· Where aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used for such · Lower cut-off grade of 0.5 g/t Au has generally been applied to
aggregation should be stated and some typical examples of such aggregations significant intersections.
should be shown in detail.
· Aggregate drilling and trenching intervals do not incorporate
· The assumptions used for any reporting of metal equivalent values longer lengths of low-grade results.
should be clearly stated.
· No metal equivalent reported
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · Drill holes and trenches have been drilled/excavated as
Exploration Results. perpendicular as possible to the general strike of the mineralized zones and
structures so that the intersected lengths are close to true widths
· If the geometry of the mineralisation with respect to the drill
hole angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported,
there should be a clear statement to this effect (e.g. 'down hole length, true
width not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Maps and sections are being generated
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 significant drilling and trench results have been reported
practicable, representative reporting of both low and high grades and/or
widths should be practiced avoiding misleading reporting of Exploration
results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Metallurgical studies of the ore from potential five pits were
reported including (but not limited to): geological observations; geophysical conducted and completed by SGS in South Africa in 2009. The ore minerology
survey results; geochemical survey results; bulk samples - size and method of variability is insignificant but relatively coarse gold grain was observed.
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances. · The relatively coarse nature of much of the gold provides reason
for an upfront gravity circuit to recover coarse gold prior to cyanidation. An
overall gold recovery of 90% can be achieved through gold dissolution by
direct cyanidation and the gravity concentrator.
Further work · The nature and scale of planned further work (e.g. tests for · Drilling to be continued to test along strike and the down-dip
lateral extensions or depth extensions or large-scale step-out drilling). continuity of the delineated mineralization
· Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
APPENDIX 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES
Database integrity · Measures taken to ensure that data has not been corrupted by, for · The data capturing Access database is linked to a superseding
example, transcription or keying errors, between its initial collection and Access database on the geological server.
its use for Mineral Resource estimation purposes.
· Queries allow specially selected information from the captured data
· Data validation procedures used. and create core data sheets which include Collar, Survey, Lithology and Assay
logs. These Logs are finally displayed in the mining software.
· An independent validation process is run for each log sheet in
Micromine by Shanta. Should there be any queries, a report file is created and
exported to excel. The report will be mailed to the personnel responsible for
data capturing to correct on the original data.
· Once confirmation is given of the updates, all databases are
refreshed and the validation process in Micromine repeated with the use of
form sets.
· Once all data validates, a number for the tear of validation is
indicated in the collar file of the superseding database
Site visits · Comment on any site visits undertaken by the Competent Person and · Dr Corné Koegelenberg, assisted by Mr. Jonathan Gloyn-Jones,
the outcome of those visits. visited the property from the 14 - 20th of February 2020 to conduct a drill
core investigation of macrostructural and gold mineralization features. Mr.
· If no site visits have been undertaken indicate why this is the Ken Lomberg joined the site visit from the 19 - 20th of February 2020
case.
Geological interpretation · Confidence in (or conversely, the uncertainty of) the geological · Diamond drilling was done perpendicular to the strike of the ore
interpretation of the mineral deposit. body at a dip designed to give a true intersection width of the mineralized
body at a spacing less than 42m.
· Nature of the data used and of any assumptions made.
· The downhole survey was done at every 15m.
· The effect, if any, of alternative interpretations on Mineral
Resource estimation. · Core meter marking, geological logging, structural interpretation,
core sampling, Data validation and QAQC analysis was done by competent and
· The use of geology in guiding and controlling Mineral Resource experienced geologists.
estimation.
· Only samples submitted to the accredited laboratory (SGS Mwanza)
· The factors affecting continuity both of grade and geology. are used in the estimate.
· The limits of the structural features hosting the mineralized zone
was interpreted by overlaying the assays against geological logging section by
section using section strings.
Dimensions · The extent and variability of the Mineral Resource expressed as · Drill hole spacing is generally between 25 to 42m along with a
length (along strike or otherwise), plan width, and depth below surface to the vertical spacing of approximately 20 to 38m in the upper to mid-level portions
upper and lower limits of the Mineral Resource. of the mineralized zones. This drilling spacing combined with the surface
exposures and trench sampling, along with the geophysical data, permits the
assumption that both the mineralized structures are continuous and persistent,
and the mineralization within the structures has the continuity necessary to
consider these deposits as Mineral Resources
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) · Compositing data into regular composite intervals was performed to
applied and key assumptions, including treatment of extreme grade values, moderate the presence of extreme short sample interval grade values in the
domaining, interpolation parameters and maximum distance of extrapolation from data, by combining them with adjacent data to form the composite.
data points. If a computer assisted estimation method was chosen include a
description of computer software and parameters used. · A combination of several methods was used to decide what
constitutes an appropriate capping value. The spatial position of outlier
· The availability of check estimates, previous estimates and/or mine values, as well as coefficient of variation plots, lognormal probability plots
production records and whether the Mineral Resource estimate takes appropriate and decile analysis, were used in the determination of capping values.
account of such data.
· Scatter plots of the gold grade composites versus location were
· The assumptions made regarding recovery of by-products. generated, to assess any potential non-stationarity in the data.
· Estimation of deleterious elements or other non-grade variables of · Block models were created to represent the mineralized body
economic significance (e.g. sulphur for acid mine drainage characterisation). contained within the wireframe solids for each target. Cell sizes were chosen
based on the average drillhole spacing.
· In the case of block model interpolation, the block size in
relation to the average sample spacing and the search employed. · Geostatistics was performed using Micromine software to determine
the estimation parameters.
· Any assumptions behind modelling of selective mining units.
· The mineralized targets were modelled for gold grade using Ordinary
· Any assumptions about correlation between variables. Kriging, with the shell of the wireframe solid as a hard boundary. Only data
within the solid was used in the estimate.
· Description of how the geological interpretation was used to
control the resource estimates. · The estimation process used Micromine software for all block grade
estimates
· Discussion of basis for using or not using grade cutting or
capping.
· The process of validation, the checking process used, the
comparison of model data to drill hole data, and use of reconciliation data if
available.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Tonnages are reported on a dry basis
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 · A simple financial assessment was undertaken to ascertain whether
applied. they fulfil the criteria of "reasonable prospects for eventual economic
extraction" using current operating costs
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · The mineral resource was deemed amenable to extraction by open pit
dimensions and internal (or, if applicable, external) mining dilution. It is mining method and were declared at a cut-off of 1.0g/t
always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential mining methods, but the
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions
made.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · Shanta commissioned the first of a series of gold deportment and
amenability. It is always necessary as part of the process of determining metallurgical studies on mineralized material from potential pits in 2009.
reasonable prospects for eventual economic extraction to consider potential Reverse circulation drill chips from five mineralised targets were submitted
metallurgical methods, but the assumptions regarding metallurgical treatment for gold deportment studies in order to understand the mode of gold
processes and parameters made when reporting Mineral Resources may not always occurrence, and to ascertain possible cost effective and practical process
be rigorous. Where this is the case, this should be reported with an routes.
explanation of the basis of the metallurgical assumptions made.
· Further metallurgical studies commissioned on mineralized material
from the Gold Tree (Tree Top and Tree Bottom) deposit in 2011 support initial
gold deportment findings. A report from Mintek summarized that the ore
contains coarse gold which should be recovered prior to the leaching process
with an overall gold recovery 90% - Mintek External Report No: 5887 of
February 2011).
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue · Shanta Mining Company Limited is fully permitted mining operation
disposal options. It is always necessary as part of the process of determining under Tanzanian law with the prerequisite Environmental Impact Assessments
reasonable prospects for eventual economic extraction to consider the (EIA) issued in 2019.
potential environmental impacts of the mining and processing operation. While
at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
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 determinations have been carried out on the diamond cores.
assumptions. If determined, the method used, whether wet or dry, the frequency
of the measurements, the nature, size and representativeness of the samples.
· The bulk density for bulk material must have been measured by
methods that adequately account for void spaces (vugs, porosity, etc.),
moisture and differences between rock and alteration zones within the deposit.
· Discuss assumptions for bulk density estimates used in the
evaluation process of the different materials.
Classification · The basis for the classification of the Mineral Resources into · The resources have been classified as Measured, Indicated and
varying confidence categories. Inferred based primarily on sample spacing as determined by drilling density
and proximity to informing data as well as the grade distribution of the
· Whether appropriate account has been taken of all relevant factors supporting data including geology. For the resource classification, a solid
(i.e. relative confidence in tonnage/grade estimations, reliability of input shape was constructed around the parts of the mineralised body where most
data, confidence in continuity of geology and metal values, quality, quantity estimates were informed by data not more than 30m from the estimated block,
and distribution of the data). are estimated within the primary search volume, and where the estimates have
been interpolated rather than extrapolated. All blocks located within these
· Whether the result appropriately reflects the Competent Person's areas were classified as Measured and Indicated resources. All blocks located
view of the deposit. outside of these areas, around the periphery of the drilling were classified
as Inferred resources
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · Only internal audit completed
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and · Refer Estimation and modelling techniques comments above
confidence level in the Mineral Resource estimate using an approach or
procedure deemed appropriate by the Competent Person. For example, the
application of 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.
APPENDIX 4: ESTIMATION AND REPORTING OF ORE RESERVES.
Mineral Resource estimate for conversion to Ore Reserves · Description of the Mineral Resource estimate used as a basis for · Measured and indicated only are being used for the purpose of
the conversion to an Ore Reserve. classifying ore reserves sitting within the design.
· Clear statement as to whether the Mineral Resources are reported · Mineral resources are reported inclusive of the Ore reserves;
additional to, or inclusive of, the Ore Reserves. however, outside mine plan resources is also being prepared to represent
resources that are sitting outside the mine plan
Site visits · Comment on any site visits undertaken by the Competent Person and · Regular site visits are being done by Competent personnel and other
the outcome of those visits. Senior personnel for various factor's adjustment when deemed necessary
· If no site visits have been undertaken indicate why this is the
case.
Study status · The type and level of study undertaken to enable Mineral · An extensive optimization study used to prepare or establish
Resources to be converted to Ore Reserves. minable shells and followed by proper that can be used for the purpose of
reporting ore reserves, but only for measured and indicated material.
· The Code requires that a study to at least Pre-Feasibility Study
level has been undertaken to convert Mineral Resources to Ore Reserves. Such · Various studies were done in relation to the reserves reporting
studies will have been carried out and will have determined a mine plan that practices that includes feasibility studies, etc.
is technically achievable and economically viable, and that material Modifying
Factors have been considered.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · A simple financial assessment was undertaken to ascertain whether
applied. they fulfil the criteria of "reasonable prospects for eventual economic
extraction" using current operating costs and other parameters associated to
economic extraction of the deposits
Mining factors or assumptions · The method and assumptions used as reported in the · Method and assumptions were applied based on the type of the ore
Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore body and or deposits. Appropriate factors were also applied during preparation
Reserve (i.e. either by application of appropriate factors by optimisation or of the optimal shells or structures required for the purpose of designs. Some
by preliminary or detailed design). deposits were deemed potential for just Open pit and others were potential for
both Open pit and Underground mining method.
· The choice, nature and appropriateness of the selected mining
method(s) and other mining parameters including associated design issues such · Mining designs were completed and reviewed internally.
as pre-strip, access, etc.
· Geotechnical assumptions were based on the various geotechnical
· The assumptions made regarding geotechnical parameters (e.g. pit drilling and studies done internally and externally i.e. using a third party.
slopes, stope sizes, etc.), grade control and pre-production drilling.
· Materials were deemed to be potential economical if grade is above
· The major assumptions made, and Mineral Resource model used for Cut-off grade and within the deposit's wireframes.
pit and stope optimisation (if appropriate).
· The mining dilution factors used.
· For both dilution and recovery were applied for each deposit based
· The mining recovery factors used. on experience and or outcomes on the reconciliation
· Any minimum mining widths used. · Applied differently depending on the mining methods for each
deposit.
· The manner in which Inferred Mineral Resources are utilised in
mining studies and the sensitivity of the outcome to their inclusion. · Inferred mineral resources are being treated as mineralized waste
and not being reported as part of ore reserves.
· The infrastructure requirements of the selected mining methods.
· Infrastructures of some of the deposits are in-place, and the rest
will be extended and or constructed depending on the LoM required; mainly with
an intention of not tying the capital requirement.
Metallurgical factors or assumptions · The metallurgical process proposed and the appropriateness of · Shanta commissioned the first of a series of gold deportment and
that process to the style of mineralisation. metallurgical studies on mineralized material from potential pits in 2009.
Reverse circulation drill chips from five mineralised targets were submitted
· Whether the metallurgical process is well-tested technology or for gold deportment studies in order to understand the mode of gold
novel in nature. occurrence, and to ascertain possible cost effective and practical process
routes.
· The nature, amount and representativeness of metallurgical test
work undertaken, the nature of the metallurgical domaining applied and the · Further metallurgical studies commissioned on mineralized material
corresponding metallurgical recovery factors applied. from the Gold Tree (Tree Top and Tree Bottom) deposit in 2011 support initial
gold deportment findings. A report from Mintek summarized that the ore
· Any assumptions or allowances made for deleterious elements. contains coarse gold which should be recovered prior to the leaching process
with an overall gold recovery 90% - Mintek External Report No: 5887 of
· The existence of any bulk sample or pilot scale test work and the February 2011).
degree to which such
· samples are considered representative of the orebody as a whole.
· For minerals that are defined by a specification, has the ore
reserve estimation been based on the appropriate mineralogy to meet the
specifications
Environmental · The status of studies of potential environmental impacts of the · Shanta Mining Company Limited is fully permitted mining operation
mining and processing operation. Details of waste rock characterisation and under Tanzanian law with the prerequisite Environmental Impact Assessments
the consideration of potential sites, status of design options considered and, (EIA) issued in 2019.
where applicable, the status of approvals for process residue storage and
waste dumps should be reported.
Infrastructure · The existence of appropriate infrastructure: availability of land · Major are structures are available and or under construction is
for plant development, power, water, transportation (particularly for bulk some of the area/deposits. Appropriate mining licenses are in-place that
commodities), labour, accommodation; or the ease with which the infrastructure guarantee the mining activities.
can be provided, or accessed.
Costs · The derivation of, or assumptions made, regarding projected · Depending on the mining methods applicable for each deposit, then a
capital costs in the study. capital estimate was established in relation to the works required and or
available quotes.
· The methodology used to estimate operating costs.
· Operating costs were established partially using the existing
· Allowances made for the content of deleterious elements. actual information and where deemed necessary then the first principle of
establishing costs were used.
· The source of exchange rates used in the study.
· Exchange rates were being established based on the current trends
· Derivation of transportation charges. and or existing information from the major financial institutions.
· The basis for forecasting or source of treatment and refining · Transportation charges were based on the existing condition and or
charges, penalties for failure to meet specification, etc. regulations requirement.
· The allowances made for royalties payable, both Government and · The rest are based on the regulation requirements on their
private. estimation and consideration.
Revenue Factors · The derivation of, or assumptions made regarding revenue factors · High NPV was used for the purpose of the same.
including head grade, metal or commodity price(s) exchange rates,
transportation and treatment charges, penalties, net smelter returns, etc. · Rate based on trends and or as applicable or advised by the
management which needs to be in-line with the market trend and or various
· The derivation of assumptions made of metal or commodity commitments
price(s), for the principal metals, minerals and co-products.
Market Assessment · The demand, supply and stock situation for the particular · Based on market and operation requirements
commodity, consumption trends
· and factors likely to affect supply and demand into the future.
· A customer and competitor analysis along with the identification
of likely market windows for the product.
· Price and volume forecasts and the basis for these forecasts.
· For industrial minerals the customer specification, testing and
acceptance requirements prior to a supply contract.
Economic · The inputs to the economic analysis to produce the net present · Based on assumptions and advise
value (NPV) in the study, the source and confidence of these economic inputs
including estimated inflation, discount rate, etc.
· NPV ranges and sensitivity to variations in the significant
assumptions and inputs.
Social · The status of agreements with key stakeholders and matters · Various agreements in place, on-going or established CSR program
leading to social licence to operate. and many others as supported by various laws and or regulations.
Other · To the extent relevant, the impact of the following on the · As required by laws and or regulation of the country; no special
project and/or on the estimation and classification of the Ore Reserves: mining development agreement has been considered.
· Any identified material naturally occurring risks.
· The status of material legal agreements and marketing
arrangements.
· The status of governmental agreements and approvals critical to
the viability of the project, such as mineral tenement status, and government
and statutory approvals. There must be reasonable grounds to expect that all
necessary Government approvals will be received within the timeframes
anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss
the materiality of any unresolved matter that is dependent on a third party on
which extraction of the reserve is contingent.
Classification · Whether the result appropriately reflects the Competent Person's · Results presented, appropriately reflects the Competent Person's
view of the deposit. view of the deposits.
· The proportion of Probable Ore Reserves that have been derived · Only Measured and Indicated material were considered for the
from Measured Mineral Resources (if any). purpose of Ore reserves reporting
Audits or reviews · The results of any audits or reviews of Ore Reserve estimates. · Only internal audit and review completed
Discussion of relative accuracy/confidence · Where appropriate a statement of the relative accuracy and · Refer above statements.
confidence level in the Ore Reserve estimate using an approach or procedure
deemed appropriate by the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the relative accuracy of
the reserve within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors which could affect
the relative accuracy and confidence of the estimate.
· The statement should specify whether it relates to global or
local estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used.
· Accuracy and confidence discussions should extend to specific
discussions of any applied Modifying Factors that may have a material impact
on Ore Reserve viability, or for which there are remaining areas of
uncertainty at the current study stage.
· It is recognised that this may not be possible or appropriate in
all circumstances. These statements of relative accuracy and confidence of the
estimate should
ENDS
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