REG - Shanta Gold Limited - Shanta Gold Announces Singida Five-Year Plan
03/07/2023 07:00
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RNS Number : 6531E Shanta Gold Limited 03 July 2023
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 July 2023
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
Shanta Gold Announces Singida Five-Year Plan
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and
explorer, is pleased to announce a new five-year plan (the "Plan") from 2023 -
2027 (the "Plan Period") for its Singida Gold Mine ("Singida") in Tanzania.
Eric Zurrin, Chief Executive Officer, commented:
"The five-year plan that we announce today demonstrates the long-term
potential for Singida. Our strategy is focused on three clear pillars of
optimizing operations, reducing costs and maximising the mine life.
The Singida Process Plant was designed with expansion in mind and we have
already identified potential for upsizing gold production through additional
resources both within our existing and surrounding mining licenses. We are
confident that Singida will live up to the early reputation it has earned as a
transformational asset for Shanta.
Shortly after pouring first gold three months ago and following a phase of
rapid ramp-up, the site has performed strongly and is proving to be a cash
generator. Singida contributes to our financial flexibility to reinvest into
our growth initiatives across the wider portfolio, enabling us to drive
further value for our shareholders.
As a Company, we are guiding for 90,000-98,000 oz of gold production in 2023,
reflecting only nine months of production from Singida, and +100,000 oz of
annual gold production thereafter, establishing Shanta as Africa's newest
100,000+ oz pa gold producer."
Singida Highlights
Transformational production potential
· Singida gold production forecast of 169,000 oz over the five-year Plan
Period;
· Average annual gold production of 34,000 oz; and,
· Potential for further optimisation of the mining schedule:
o Exploring the possible addition of a second ball mill that would double
plant throughput to 2,000 tonnes per day and reduce cut-off grades.
Significant exploration and expansion opportunities
· 7-year reserve-based mine life through to 2030 with significant potential
for expansion;
· Mine life will include additional resources and reserves within and
around the Company's mining licenses;
o Gold reserves of 231,000 ounces ("oz") grading 3.01 g/t (JORC compliant);
o Gold resources of 885,000 oz grading 2.36 g/t (JORC compliant);
· Substantial upside through the potential conversion of 9.8 Mt grading
2.11 g/t for 664,000 oz resources currently sitting outside the Plan.
Reduced cost base from 2025 onwards
· Average Adjusted Operating Costs and All In Sustaining Costs ("AISC") of
US$888 /oz and US$1,085 /oz respectively over the Plan Period;
· Cash flows increase from 2025 following normalisation of waste stripping;
2023 (1) 2024 2025 2026 2027 Total
Gold production (oz) 26,124 31,455 37,189 38,001 36,114 168,883
AISC(2,3) (US$/oz) 1,357 1,247 943 908 947 1,085
(1) For the 9-month period April-December 2023
(2) AISC includes corporate overheads and development costs and has been
calculated in accordance with the World Gold Council definition assuming
royalties payable at a spot price of US$1,700/oz
(3) AISC in 2023 and 2024 reflects average pre-stripping of 20.5x vs LOM
average of 13.1x
Group gold production of 100,000+ oz per year
· Average annual gold production of 103,000 oz over the next 5 years
· Reserve additions at Singida and NLGM offer potential to increase and
extend mine plan
Ounces 2023 (1) 2024 2025 2026 2027 (2) Total
New Luika GM 71,391 74,125 76,519 73,289 49,742 345,066
Singida 26,124 31,455 37,189 38,001 36,114 168,883
Shanta Tanzania 97,515 105,580 113,708 111,290 85,856 513,949
(1) Singida: for the 9-month period April-December 2023
(2) NLGM in 2027 excludes impact of reserve additions from ongoing exploration
2023 Gold Production Guidance (1)
· NLGM guidance reiterated at 66,000 - 72,000 oz at AISC of US$1,200 -1,300
/oz
· Singida guidance of 24,000 - 26,000 oz at AISC of US$1300 - 1,400 /oz
· Company guidance of 90,000 - 98,000 oz gold
(1) Singida: for the 9-month period April-December 2023
Investor Conference Call
Shanta Gold is hosting a live investor presentation via the Investor Meet
Company platform today, 3 July 2023, at 11:00 am BST. The presentation is open
to all existing and potential shareholders and questions can be submitted any
time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet Shanta
Gold via:
https://www.investormeetcompany.com/shanta-gold-limited/register-investor
(https://www.investormeetcompany.com/shanta-gold-limited/register-investor)
Investors who already follow Shanta Gold on the Investor Meet Company platform
will automatically be invited.
Shanta Gold Limited
Eric Zurrin (CEO) +44 (0) 14 8173 2153
Michal Devine (CFO)
Nominated Adviser and Broker
Liberum Capital Limited
Scott Mathieson / Kane Collings / Nikhil Varghese +44 (0) 20 3100 2000
Public Relations
FTI Consulting
Sara Powell / Nick Hennis +44 (0) 20 3727 1426
Production Schedule
The Plan provides for open pit mining at Singida using conventional open-pit
mining methods. Key outcomes from Singida's updated mining schedule include
the following for the Plan Period:
· Gold production of 169,000 oz averaging 34,000 oz per year during the
Plan period;
· Average annual gold production of 31,000 oz for an initial seven-year
mine life through to at least 2030;
· 1.8 Mt milled, with potential of throughput to reach 2,000 tonnes per
day ("tpd") should a second mill be installed;
· Average anticipated recoveries of above 91%;
· 91% of contained ounces in the Plan are within 150 metres of surface;
and,
· On-going exploration is expected to further enhance and extend the
Plan in the future.
The strategy for Singida is to maximise value and mine life through the
inclusion of additional resources and reserves within and around the Company's
mining licenses. All reserves incorporated in the Plan are within existing
mining license areas.
Annual production for the first seven years is expected to average 31,000 oz.
A cut-off grade of 1.0 g/t has been utilised for each of the deposits. There
are lower grade areas that currently fall outside the mine plan, but which
could be mined with no additional development, thereby providing gold price
optionality.
Under the Plan, the process plant maintains full capacity utilisation
throughout the Plan Period. It is expected that additional resources from the
existing portfolio of opportunities within the Company's mining licenses and
surrounding exploration licenses will provide further mine life for Singida.
Plant Throughput Expansion Plans
The Singida Gold Project recently completed construction and commissioning and
the plant is designed to extract gold through the gravity circuit and the
Carbon in Leach "CIL" circuit.
The current production process of 1,000 tonnes per day (t/d) (30,000 t/m) of
ore at a feed grade of 3.5g/t and recovery of 91% results in approximate
production of 3,000 ounces per month.
The capital budget for the Singida Plant was based on sizing the Crushing
Circuit (primary jaw crusher and secondary cone crusher) to a capacity of 150
tonnes per hour (t/h) (3,000 t/d), the Ball Mill of 800kW with a capacity of
45 t/h (1000 t/d) with a provision of adding a second Ball Mill of the same
capacity in future.
The stream of CIL circuit comprises a Thickener of 12m diameter, and CIL
including six tanks of 255m3 each with a provision of adding two more tanks of
the same capacity in future.
There is potential for further optimisation of the mining schedule with a
throughput expansion. A second ball mill plus additional pumps and leaching
capacity estimated at a capex investment of US$6.5m would double plant
throughput to 2,000+ tonnes per day and reduce cut-off grades.
Table 1 - Five-Year Production Schedule by Source(1)
PRODUCTION 2023 2024 2025 2026 2027 Total
Open Pit
Material Mined tonnes 5,766,173 5,983,848 5,067,538 3,610,794 4,909,059 25,337,412
Ore Mined tonnes 234,141 327,244 419,524 347,512 376,586 1,705,007
Strip Ratio x 23.6 17.3 11.1 9.4 12.0 13.9
Grade g/t 2.86 3.05 3.20 3.70 3.45 3.28
Contained Gold koz 21,549 32,107 43,122 41,356 41,717 179,851
Processing
Tonnes Milled tonnes 272,316 366,000 365,000 365,000 365,000 1,733,316
Head Grade g/t 3.27 2.94 3.48 3.56 3.38 3.33
Recovery % 91 91 91 91 91 91
Gold Produced koz 26,124 31,455 37,189 38,001 36,114 168,883
(1) Figures may not total exactly due to rounding.
Exploration and Future Potential
Singida is situated in the prolific Lake Victoria Gold Field, and there is a
significant opportunity to extend mine life at Singida. To date only
approximately 75,000 metres of drilling has been completed and with commercial
production now started, additional funds have been committed to exploration at
Singida to add reserves.
There remains significant further upside potential from substantial resources
(9.8 Mt grading 2.11 g/t for 664,000 oz) currently sitting outside the
reserve-based Plan. The existing resources are situated in a highly
prospective and underexplored gold district.
These resources, which can potentially benefit from further exploration, have
been prioritised for evaluation and all sit within proximity to the processing
plant. The orebodies are open along strike and at depth with numerous
previously identified parallel structures.
Currently, Shanta is delineating potential drill targets through pit wall
mapping and drill hole relogging with trenching ongoing, which aims to better
understand all structures relating to mineralisation and to enhance the
geological model. Following this, an exploration drilling campaign is planned
to commence in Q3 2023.
Opex and Capex forecasts
A summary of operating costs is provided below:
COSTS 2023 2024 2025 2026 2027 Total
Open Pit Mining $/oz 667 589 389 350 381 459
Mine Overheads 180 167 141 138 146 152
Processing $/oz 263 274 237 232 244 248
Adjusted Operating Costs(1,3) $/oz 1,110 1,030 767 720 770 859
Royalty & Selling $/oz 119 137 136 136 136 134
Other (SIB, Corp, Exploration) $/oz 129 80 39 51 41 64
AISC(2,3) $/oz 1,357 1,247 943 908 947 1,057
(1) Adjusted Operating Costs are derived as the sum of mining costs,
processing costs, mine overheads, by-product credit and royalty & selling
costs
(2) AISC is derived as the sum of Adjusted Operating Costs, UG & OP
development costs and other costs (stay in business ("SIB") capital
expenditure, corporate overheads and sustaining exploration)
(3) Figures may not total exactly due to rounding.
A bridge between this summary and AISC within Project Economics for Singida
announced on 7(th) October 2020 is provided below:
Key points explaining the increase of US$209 /oz in AISC are:
· Increased apportionment of Mine Services costs from the New Luika Gold
Mine through Shanta's Shared Services model in Tanzania and from cost
inflation, contributing US$102 /oz to Singida AISC including some
apportionment of NLGM Engineering Services, Health & Safety, Asset
Protection, and Mine Administration
· Increased Processing Cost assumption of US$24 /tonne due to inflation
versus US$20 /tonne assumed in 2020, contributing approximately US$43 /oz;
· Inclusion of On-mine exploration costs contributing US$25 /oz.
Forecasted capital expenditure is summarised below:
Capital Expenditure (US$m) H2 2023 2024 2025 2026 2027 H1 2028 Total
Open Pit Mines Development 3.4 3.0 0.3 1.9 2.7 1.2 12.5
TSF expansion - 2.4 2.2 2.4 2.9 0.7 10.6
Stay in business/ Other 1.7 1.1 0.1 0.5 0.1 0.1 3.6
Total(1,2) 5.1 6.5 2.6 4.8 5.7 2.0 26.7
(1)Capital expenditure forecasts exclude costs associated with mine closure.
(2) Figures may not total exactly due to rounding.
Resource Reconciliation Since Mining Commenced
Overall, the Gold Tree open pit Period-To-Date (eg since mining commenced in
2022) mined grade versus Grade Control reconciliation has continued to be
consistent with +7% on tonnes mined, 3% increased grade and 10% more contained
ounces.
On comparison against the resource block model, the Grade Control model has
reported 6% more tonnes, 5% less grade and on equal ounces compared to
Resource Block Model. Actual mined ore reported 13% more tonnes, 2% less grade
and 11% more contained ounces against the resource block model.
Singida Reserves
The total proved and probable reserves position for Singida as of 31(st)
December 2022 is given below:
Singida Gold Project Tanzania
JORC 2012 Reserve (1,2)
(31(st) Dec 2022)
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 1,243 3.39 136
Gustav 0.78 129 1.70 7
Jem 0.74 324 2.86 30
Kaizer Chief 0.78 142 1.65 8
Vivian 0.74 118 2.61 10
Grand Total 2,385 3.01 231
Note 1. Proved Reserve is 1,278kt @ 3.34g/t equivalent to 137koz.
Note: 2. Reserves are reported in accordance with the JORC Code 2012.
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
Singida Gold Project Tanzania
Mineral Resource Estimate (MRE) inclusive Reserve
(31(st) December 2022)
JORC 2012 Classification
MEASURED INDICATED INFERRED TOTAL RESOURCES
TONNES (kt) GRADE g/t OUNCES (koz) TONNES (kt) GRADE g/t OUNCES (koz) TONNES (kt) GRADE g/t OUNCES (koz) TONNES (kt) GRADE g/t OUNCES (koz)
Deposit
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 1,030 3.54 117 1,289 2.4 99 3,274 2.02 213 5,593 2.39 430
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 - - - 376 3.03 37 125 3.4 14 501 3.12 50
TOTAL 1,523 3.29 161 3,990 2.36 303 6,149 2.12 418 11,663 2.36 885
Competent Person Statement
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 Geologist) 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.
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 625 koz grading 2.91 g/t, and exploration licences covering
approximately 800 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 722 Koz in the Indicated category grading
11.45 g/t. With a strong balance sheet, a growing diversified portfolio and a
maiden dividend paid in 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.
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 (eg 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 analysis
the Public Report.
· At least 3kg sample pulverized and a 50g charge fire assayed with
· In cases where 'industry standard' work has been done this would be AAS or aqua regia finish for gold
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may warrant disclosure of detailed
information.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary · Diamond core drilling; NQ core size
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or
standard tube, depth of diamond tails, face-sampling bit or other type, · RC Drilling
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 core · 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 make · Registered reference material inserted at the interval of 20
and model, reading times, calibrations factors applied and their derivation, samples
etc.
· Levels of accuracy and precision (detection limit) for gold is 0.01
· Nature of quality control procedures adopted (eg standards, blanks, ppm which is suitable for the level of assays reported
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie 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 2024
wilderness or national park and environmental settings.
· ML 519/2014 valid until 30 Jan 2024
· 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 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 summarizing 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 (eg 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 (eg '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 to avoid 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 (eg tests for lateral · Drilling to be continued to test along strike and the down-dip
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 Ken
· If no site visits have been undertaken indicate why this is the 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 (eg 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
(ie 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 represents
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 (eg 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 deposits wireframes.
pit and stope optimisation (if appropriate).
· The mining dilution factors used.
· For both dilution and recovery were applied for each deposits 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
deposits.
· 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 deposits, then
capital costs in the study. a capital estimate were 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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