REG - Shanta Gold Limited - West Kenya Resource Announcement
29/03/2022 07:00
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RNS Number : 3125G Shanta Gold Limited 29 March 2022
29 March 2022
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
West Kenya Project Resource Increases to 1.55 Moz Gold including
221% Increase in Indicated Ounces
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and
explorer, is pleased to announce an upgraded mineral resource estimate for the
West Kenya Project ("West Kenya") in Kenya to 1.55 Moz gold, including a 221%
increase in Indicated Resource to 378 koz gold grading 11.70 g/t.
Highlights in 2021:
· Total resources at Isulu, Bushiangala, and Ramula deposits increase
by 31% to 1.55 Moz;
· Resources of 1.12 Moz grading 10.80 g/t at Isulu and Bushiangala, of
which 34% have been upgraded to Indicated category up from Nil at the start of
2021;
· 221% increase in Indicated ounces ("oz") to 377,840 grading 11.70
g/t, exceeding internal expectations for 2021;
Summary (1) Indicated Inferred Total
Deposit Grade (Au g/t) Ounces (k) Grade (Au g/t) Ounces (k) Grade (Au g/t) Ounces (k)
Bushiangala 7.86 109 6.59 134 7.10 243
Isulu 14.59 269 11.92 605 12.63 874
Liranda Region 11.70 378 10.39 739 10.80 1,117
Ramula (2) - - 2.08 434 2.08 434
West Kenya Project 11.70 378 5.36 1,173 6.18 1,551
1. Tonnages reported in the detailed Mineral Resource
Estimate table below
2. The Ramula Region, located 35 km from the Liranda
Region, currently hosts 7 targets including the Ramula deposit
Table above excludes the Bumbo polymetallic JORC compliant
resource in the Liranda Region
· Current oxides in the Indicated category contain 67,070 oz grading
15.84 g/t, providing potential excellent high margin cash flow during future
construction ramp-up;
· Approximately 700,000 oz of additional Inferred resources being
targeted during 2022 for potential conversion to Indicated category; and
· A JORC 2012 compliant Mineral Resource Estimate at the Bumbo deposit
within the Liranda Region is now declared totaling 2.49 Mt at 2.7% Zn, 1.21%
Cu, 32.12g/t Ag, 0.28% Pb, and 0.76 g/t Au.
Eric Zurrin, Chief Executive Officer, commented:
"We are delighted to announce that the Mineral Resource Estimate (MRE) at the
West Kenya Project has increased by 31% to 1.55 Moz and Indicated Resources
have increased by 221% to 378 Koz grading 11.70 g/t at the end of 2021. The
increase in the MRE is further confirmation that the West Kenya Project is
itself hugely exciting, with our geologists confident that up to an additional
700 Koz of Inferred Resources can be converted to Indicated in 2022. In
addition, new early-stage targets will be explored this year with the aim of
converting them to the Inferred resource stages. Our West Kenya Project is
located in the high-potential and underexplored greenstone belt within the
Lake Victoria Goldfields, which already hosts world class gold mines owned by
Barrick and AngloGold Ashanti.
We now have compliant resources at four separate deposits -- Isulu,
Bushiangala, Ramula, and the re-introduction of the historic Bumbo deposit --
confirming the widespread geological prospectivity of the West Kenya project.
Future exploration of many additional highly prospective targets has the
potential to lead to a multi-million ounce gold region.
We currently have three drill rigs operational and Feasibility Study work
begins in May 2022. Excellent visual intersections have been observed in
drilling results since the start of 2022 with multiple occurrences of visible
gold. Assay results from these holes are due in April/May."
Analyst conference call and presentation
Shanta Gold will host an analyst conference call and presentation today, 29
March 2022, at 09:30 BST. Participants can access the call by dialling one of
the following numbers below approximately 10 minutes prior to the start of the
call or by clicking on the link below.
UK Toll-Free Number: +44 (0) 800 279 6894
UK Toll Number: +44 (0) 330 165 3641
PIN: 551724
https://events.globalmeet.com/Public/ClickToJoin/ZW5jPUtkL3lpYy9sQ0RiVTVWUUtFZ0hUUTlzaHl1NW5jVGVodEtGUTJ0WFZJNjRyNDRwczBGeVNwQT09
(https://events.globalmeet.com/Public/ClickToJoin/ZW5jPUtkL3lpYy9sQ0RiVTVWUUtFZ0hUUTlzaHl1NW5jVGVodEtGUTJ0WFZJNjRyNDRwczBGeVNwQT09)
Participant Passcode: 551724
The presentation will be available for download from the Company's website:
www.shantagold.com (http://www.shantagold.com) . A recording of the conference
call will subsequently be available on the Company's website.
Investor Presentation
Shanta Gold Limited is pleased to announce that Eric Zurrin will provide a
live presentation relating to West Kenya Resource Update via the Investor
Meet Company platform on 29th Mar 2022 at 12:30pm BST.
The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via your Investor Meet Company dashboard up until
9am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to
meet Shanta Gold Limited via:
https://www.investormeetcompany.com/shanta-gold-limited/register-investor
(https://protect-za.mimecast.com/s/2un8Cr05ZYI9pM1I7IUgM)
Investors who already follow Shanta Gold on the Investor Meet Company
platform will automatically be invited.
West Kenya Project Resource Update - 2021
The West Kenya Project covers 1,162 km² of the highly prospective and
underexplored greenstone Archaean Busia-Kakamega Gold Belt in western Kenya.
Ongoing drilling at the Isulu and Bushiangala deposits is aimed at upgrading
ounces from the Inferred Mineral Resource Estimate into the Indicated Resource
category down to a depth of 800 meters by means of three drilling campaigns.
All work carried out and reporting of the resource has been completed in
accordance with Canadian NI 43-101 standards, unless otherwise noted.
This infill drilling is aimed at verifying the extent and geometry of the
known mineralised zones developed for the current resource model. Shanta had
completed 37% of total planned drilling at West Kenya by the end of 2021.
Gold mineralisation at the Isulu and Bushiangala deposits is hosted by sheared
pillowed to massive basalts, bounded between ultramafic volcanics and
polymictic conglomerates on one side and carbonaceous mudstones and sandstones
on the other side. The deposits occur within the Liranda Corridor area, a 12
km structural trend located on the eastern limb of a broad synclinal structure
intruded in the center by granitoids and diorites, termed the Kakamega Dome.
Mineralisation is associated with quartz and quartz-carbonate veinlets ranging
from 0.5 m to 10 m in true width, which lie within the mineralised shear
zones. The mineralisation style is classified as orogenic, shear-zone-hosted
quartz-carbonate vein subtype. The strike lengths of the steeply-dipping zones
range from 100 m to 300 m. Average drill intersection spacing is 40 m at Isulu
and 30 m at Bushiangala.
Resources have been stated using a 1 g/t Au cut-off grade value for the
oxidised rock and 3 g/t Au for fresh rock. The effective date of this resource
is 15 February 2022.
Table 1 - Updated Isulu and Bushiangala Resource by Oxide vs Fresh Rock(1, 2)
Indicated Inferred Total
Tonnes Grade (Au g/t) Ounces Tonnes Grade (Au g/t) Ounces Tonnes Grade (Au g/t) Ounces
Oxide 131,700 15.84 67,070 353,800 6.97 79,290 485,500 9.38 146,360
Fresh Rock 872,800 11.08 310,770 1,858,100 11.05 659,880 2,730,900 11.06 970,650
Total 1,004,500 11.70 377,840 2,211,900 10.39 739,160 3,216,400 10.80 1,117,010
(1) Figures may not total exactly due to rounding
(2) Oxidised rock cut-off grade (COG) at 1.0 Au g/t. Fresh Rock cut-off grade
at 3.0 Au g/t
Table 2 - Updated Resource by Deposit (1)
Mineral Resource Category Prospect Tonnes Grade (Au g/t) Ounces
Indicated Isulu 573,400 14.59 268,960
Bushiangala 431,000 7.86 108,880
Total 1,004,400 11.70 377,840
Inferred Isulu 1,579,600 11.92 605,170
Bushiangala 632,300 6.59 133,990
Total 2,211,900 10.39 739,160
Total Isulu 2,153,000 12.63 874,130
Bushiangala 1,063,400 7.10 242,880
Total 3,216,400 10.80 1,117,010
(1) Oxidised rock cut-off grade (COG) at 1.0 Au g/t. Fresh Rock cut-off grade
at 3.0 Au g/t
In total, Isulu and Bushiangala contain 377,840 ounces grading 11.70 g/t
Indicated category with cut-off grades applied of 1.0 Au g/t for oxidised rock
and 3.0 Au g/t for fresh rock. The total resource currently stands at
1,117,010 ounces grading an average of 10.80 g/t.
Approximately 400,000 oz of Inferred resource is being targeted in 2022 for
potential conversion to Indicated for Bushiangala and Isulu.
Table 3 - Isulu and Bushiangala deposits: mineral resource sensitivity to
cut-off grades
FRESH ROCK
Cut-off Grade Tonnes Mean Grade Au g/t Ounces
0 3,599,700 8.80 1,018,850
1 3,450,000 9.17 1,017,570
2 3,106,100 10.03 1,001,170
3 2,730,900 11.06 970,650
4 2,377,300 12.18 930,670
5 2,046,100 13.42 882,970
6 1,816,900 14.42 842,370
7 1,585,900 15.58 794,260
OXIDE
Cut-off Grade Tonnes Mean Grade Au g/t Ounces
0 531,200 8.58 146,580
1 485,500 9.38 146,360
2 440,600 10.17 144,060
3 374,000 11.55 138,900
4 320,200 12.91 132,870
5 237,800 15.80 120,820
6 205,600 17.42 115,150
7 176,100 19.26 109,030
Source: Cath Pitman, P. Geo - Adiuvare Geology & Engineering (March 2022)
Resource classifications have been assigned according to the continuity of
mineralisation, known geological controls and drill spacing. Each zone is
divided into oxidised and fresh rock and a cut-off value supplied by Shanta
(and accepted by the Independent Competent Person) has been applied.
Mineralisation is well constrained withing the mineralised shears (as seen in
Table 3), resulting in potentially increasing the number of resource ounces by
lowering the cut-off while not significantly reducing the average gold grade.
Table 4 - Consolidated West Kenya Mineral Resource Estimate(1, 2, 3)
Indicated Inferred Total
Deposit Tonnes (kt) Grade (Au g/t) Ounces (k) Tonnes (kt) Grade (Au g/t) Ounces (k) Tonnes (kt) Grade (Au g/t) Ounces (k)
Bushiangala 431.0 7.86 109 632.3 6.59 134 1,063.4 7.10 243
Isulu 573.4 14.59 269 1,579.6 11.92 605 2,153.0 12.63 874
Liranda Region 1,004.5 11.70 378 2,211.9 10.39 739 3,216,3 10.80 1,117
Ramula (1) - - - 4,591.2 2.08 434 4,591.2 2.08 434
West Kenya Project 1,004.5 11.70 378 6,803.1 5.36 1,173 7,807.5 6.18 1,551
1. The Ramula Region, located 35 km from the Liranda Region, currently hosts 7
targets including the Ramula deposit
Table above excludes the Bumbo polymetallic JORC compliant resource
Approximately 300,000 oz of Inferred resource is being targeted in 2022 for
potential conversion to Indicated for Ramula.
For a map showing the West Kenya Project Licence Area including Isulu,
Bushiangala, and Bumbo deposits in the Liranda Region and Ramula deposit in
the Ramula Region, and a Long Section of the Bushiangala and Isulu deposit
please see the following link Shanta Gold - Exploration
(https://www.shantagold.com/operations/exploration/#gallery)
Bumbo Deposit
The Bumbo polymetallic VMS deposit (Zn, Cu, Pb, Au, Ag) is situated 20km to
the east of Isulu-Bushiangala.
It was re-modelled, including the relogging of the drillholes, and a compliant
resource was estimated resulting in a new Mineral Resource Estimate of 2.06
million tonnes grading 1.44% Cu and 3.26% Zn in a base metal dominant zone,
and 0.43Mt at 2.29 g/t Au in a separate gold dominant zone, all classified as
Inferred using JORC 2012 guidelines. The mineralisation comprises lensoidal
pyrrhotite-sphalerite-chalcopyrite massive sulphide and is characterised by a
central core of massive sulphides with immediately adjacent more disseminated
and inter-layered sulphides.
The Bumbo Prospect Mineral Resource estimate is a total of 2.49 Mt at 2.7% Zn,
1.21% Cu, 32.12g/t Ag, 0.28% Pb, and 0.76 g/t Au. This update provides options
for Shanta to pursue exploration for high-grade base-metal (plus Au),
mineralisation within 20 kilometres of our Isulu-Bushiangala gold resource.
The gold zone is estimated to have 0.43 Mt at 2.29 g/t Au and 46.41 g/t Ag,
for 32koz of contained gold and 643koz of contained silver, reporting at 0.5
g/t Au cut-off.
The base metal zone is estimated to have 2.06 Mt at 3.26% Zn, 1.44% Cu, 0.28%
Pb, 29.12 g/t Ag, and 0.44 g/t Au for 67Kt of contained zinc metal, 6Kt of
contained Pb metal, 30Kt of contained copper metal, 1.9Moz of contained silver
metal, and 29koz of contained gold metal, reporting at 0.6% Zn Equivalent
cut-off.
The mineralisation is broadly conformable with the host metamorphosed
sedimentary lithologies, and has been interpreted as a volcanogenic massive
sulphide (VMS) style of mineralisation with an orogenic Au overprint. The
deposit is subdivided into two main lenses, each striking approximately
east-west, and dipping steeply to the north. The strike extent of the
mineralised system is over 500m.
The exploration history at Bumbo is extensive, with historic exploration
targeting both gold and base metal mineralisation. Two phases of drilling were
carried out by BRGM, in 1990 (12 holes for a total of 1917m) and in 1993 (22
holes for a total of 3580m). Aviva drilled 16 diamond holes for 2324m and 5 RC
holes for 410m between 2010 and 2012.
Aviva also carried out downhole EM on selected cased holes. In 2010 Aviva
conducted a regional airborne VTEM (Versatile Time Domain Electromagnetic),
radiometric and magnetic surveys over the Bumbo deposit area to search for
additional sulphide deposits. Many of the anomalies from this geophysical work
remain to be followed up.
Two main identified lenses of massive to disseminated sulphides were explored
only up to 180m from surface and interpreted to be open down dip.
Table 5 - Bumbo Mineral Resource Estimate(1, 2, 3)
Classific-ation Mineral Zone Volume Tonne (Mt) Zn% Pb% Cu% Au g/t Ag g/t Zn Tonnes Pb Tonnes Cu Tonnes Au Oz Ag Oz
Inferred MS 299,000 1.05 5.99 0.32 2.51 0.56 45.02 63,000 3,000 26,000 19,000 1,514,000
Inferred STR 354,000 1.01 0.44 0.23 0.33 0.32 12.65 4,000 2,000 3,000 10,000 410,000
Sub-Total 653,000 2.06 3.26 0.28 1.44 0.44 29.12 67,000 6,000 30,000 29,000 1,924,000
Inferred GOLD 154,000 0.43 0.05 0.33 0.08 2.29 46.41 - 1,000 - 32,000 643,000
Total 807,000 2.49 2.70 0.28 1.21 0.76 32.12 67,000 7,000 30,000 61,000 2,567,000
( )
(1) Various domains reported at Zn equivalent cut-off of 0.6%
(2) Gold domain reported at 0.5 g/t Au
(3) Zn equivalent was calculated using conversion factors of 0.65 for lead,
2.64 for copper, 1.64 for gold and 0.02 for silver and recoveries of 90% for
all metals. Metal prices were $ 3566/t for zinc, $ 1822/oz for gold, $ 2326/t
for lead, $ 4/lb. for copper and $ 23.1/oz for silver. The applied formula was
Zn Eq=Zn+(0.65Pb)+(2.64Cu)+(1.64Au)+(0.02Ag). All metals included in the metal
equivalent equation have a reasonable potential to be recovered and sold.
Shanta Gold Limited
Eric Zurrin (CEO) +44 (0) 14 8173 2153
Luke Leslie (CFO)
Nominated Adviser and Joint Broker
Liberum Capital Limited
Scott Mathieson / Ed Thomas / Nikhil Varghese +44 (0) 20 3100 2000
Joint Broker
Tamesis Partners LLP
Charlie Bendon / Richard Greenfield +44 (0) 20 3882 2868
Public Relations
FTI Consulting
Sara Powell / Nick Hennis / Jourdan Webb +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 645 koz grading 3.04 g/t, and exploration licences covering
approximately 900 km(2) in the country. Alongside New Luika and Singida,
Shanta also owns the high-grade West Kenya Project in Kenya and licences with
resources of 1.6 million ounces including 378 koz Indicated grading 11.70 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 1,048 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,.
Mineral Resource Model in this report at Bumbo is based on information
compiled by Steve Rose, a Competent Person who is a Fellow of The Australasian
Institute of Mining and Metallurgy. Steve Rose is a full-time consultant with
Rose and Associates, Mining Geology Consultants and is compliant with the JORC
2021 reporting standards.
The technical information contained in this announcement was reviewed by Yuri
Dobrotin, P.Geo. Membership No.0702 (Shanta's Group Exploration Manager), who
is a practicing member of the Association of Professional Geoscientists of
Ontario, Canada (PGO).
Mr Dobrotin has sufficient experience that is relevant to the style of
mineralization and type of deposit under consideration and to the activity
being undertaken to qualify as a Competent Person as defined for the purposes
of the AIM Guidance Note on Mining and Oil & Gas Companies dated June
2009, and Canadian National Instrument 43-101 (''NI 43-101").
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019.
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 - ISULU AND BUSHIANGALA
Section 1: Sampling Techniques and Data
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or · Drill core (half) sampled and assayed at 1m with max. 1.5m and
specific specialised industry standard measurement tools appropriate to the min. 0.5m intervals based on visually observed geology and mineralisation.
minerals under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad · Reverse circulation (RC) samples of 1 m drill length taken at
meaning of sampling. cyclone and riffle split to achieve a representative sub-sample of
approximately 2-3kg analysis.
· Include reference to measures taken to ensure sample representivity
and the appropriate calibration of any measurement tools or systems used. · Core and RC samples are processed using industry standard
practices of drying, crushing, splitting and
· Aspects of the determination of mineralisation that are Material to
the Public Report. Pulverization, then 50g fire assayed with AAS
finish for gold at the SGS Mwanza (Tanzania) and SGS Johannesburg (South
· In cases where 'industry standard' work has been done this would be Africa).
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; All holes are collared using
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, HQ and lately triple tube is used to maximise core recovery in the weathered
whether core is oriented and if so, by what method, etc). zone, drill hole diameter is usually
reduced to NQ when the hole enters fresh rock. NQ core routinely oriented by
Reflex core orientation tools.
· Reverse circulation (RC) using a 5.5 inch face sampling hammer
Drill sample recovery · Method of recording and assessing core and chip sample recoveries · Core recovery is recorded as a measure of the drill run against
and results assessed. the actual core in tray, and stored in an acQuire
· Measures taken to maximise sample recovery and ensure software database. Triple tube is used to maximise core recovery in the
representative nature of the samples. weathered zone. The average core recovery equates to approximately 97%.
· Whether a relationship exists between sample recovery and grade and · RC drill chip samples of 1m were weighted and weight recorded to
whether sample bias may have occurred due to preferential loss/gain of determine weight was within a satisfactory range.
fine/coarse material.
Logging · Whether core and chip samples have been geologically and · The geologist logs the diamond drill core for lithology,
geotechnically logged to a level of detail to support appropriate Mineral alteration, structure, mineralisation and geotechnical parameters. All core is
Resource estimation, mining studies and metallurgical studies. logged and photographed after marking up metre intervals and prior to cutting
and sampling. Logging data are entered into the acQuire database via a
· Whether logging is qualitative or quantitative in nature. Core (or Panasonic Toughbook laptop computer on site.
costean, channel, etc) photography.
· RC drill chips were logged for lithology, alteration and
· The total length and percentage of the relevant intersections mineralization type and a small sample kept from each metre in plastic chip
logged. trays as a logging record.
· All of diamond drill and RC holes are geologically logged in
entirety.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · Core samples are half core and sawn. Split line in consistent
taken. orientation with respect to orientation marks.
· If non-core, whether riffled, tube sampled, rotary split, etc and · Dry RC samples are riffled and sub-sampled, while wet are tube
whether sampled wet or dry. sampled.
· For all sample types, the nature, quality and appropriateness of · Sample preparation (drying, crushing, splitting and pulverising)
the sample preparation technique. is carried out by SGS Mwanza and SGS Jo'burg using industry standard
protocols:
· Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples. o Kiln dried at 95 deg C.
· Measures taken to ensure that the sampling is representative of the o Entire sample crushed to sub 2mm to minimize bias.
in situ material collected, including for instance results for field
duplicate/second-half sampling. o Riffle split 800g to 1kg sub-sample.
· Whether sample sizes are appropriate to the grain size of the o Sub-sample pulverised to 90% passing 75um, monitored by sieving.
material being sampled.
o Aliquot selection from pulp packet.
· Aggregated half core; Entire 2-3kg sample pulverized at
laboratory prior to fire assay in order to minimize bias.
· Drilling planned orthogonal to the strike of structures /
lithologies in order to maximize representativity.
· Quality Control (QC) samples are inserted at a rate of 1 in 20.
All standards used are Certified Reference Materials (CRM). The insertion of
QC (CRM, blanks and duplicates) is under the control of the geologist after
logging.
· The sampling protocols are adequate to ensure representativity of
orogenic, shear-zone-hosted quartz-carbonate vein subtype mineralisation.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · All diamond core and RC samples are assayed for gold by 50g Fire
laboratory procedures used and whether the technique is considered partial or Assay with AAS finish.
total.
· Core and chip samples were shipped for preparation and analysis
· For geophysical tools, spectrometers, handheld XRF instruments, at SGS Mwanza and SGS Johannesburg SA (between April and Oct 2017). The
etc, the parameters used in determining the analysis including instrument make documentation regarding sample analyses is well documented.
and model, reading times, calibrations factors applied and their derivation,
etc. · Given the occurrence of coarse gold, Screen Fire Assays (SFA) or
Gravimetric checks are routinely undertaken.
· Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of · The QA/QC with CRMs, blanks, quartz flush checks and grind checks
accuracy (ie lack of bias) and precision have been established. routinely monitored. The coarse duplicates from crush residue, and pulp
duplicates from pulp residues were regularly monitored to test the quality of
sub sampling stages. Blank and CRM results are reviewed on receiving assays
and any failure triggers investigations. Regular communication was had with
analytical Laboratories.
· Umpire analyses were undertaken at ALS Johannesburg
Laboratories for approximately 10% of samples selected from the total. Results
show a reasonable correlation with the original samples.
· The QAQC procedures and results show acceptable levels of
accuracy and precision, hence the sample data was used for the Mineral
Resource Estimate.
Verification of sampling and assaying · The verification of significant intersections by either independent · There are strong visual indicators at West Kenya Project for high
or alternative company personnel. grade mineralisation observed in drill core and significant intersections are
visually validated against drill core, check calculated by alternative company
· The use of twinned holes. personnel.
· Documentation of primary data, data entry procedures, data · To date no holes have been twinned.
verification, data storage (physical and electronic) protocols.
· All assay data is stored in the acQuire database in an as
· Discuss any adjustment to assay data. received basis with no adjustment made to the returned data.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · Drill collars have been surveyed in by
and down-hole surveys), trenches, mine workings and other locations used in differential GPS (Leica GNSS receivers) by a registered survey contractor
Mineral Resource estimation. except for holes after LCD0323 that are recent or in progress holes that are
estimates by handheld GPS only.
· Specification of the grid system used.
· Down hole surveys are recorded at 12m intervals by
· Quality and adequacy of topographic control. using a Reflex digital downhole survey camera tool, holes drilled between 2016
and 2017 were gyroscope surveyed.
· Drillholes surveyed in UTM Coordinates System Arc
1960.
· Surface topography in the West Kenya Project is based on a
combination of DGPS surveyed ground pick-ups and DEM data from air surveys.
DEM data is levelled by ground surveyed points.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Drillhole spacing was generally at 20-30m at Bushiangala and 30
to 50m at Isulu deposits.
· Whether the data spacing and distribution is sufficient to
establish the degree of geological and grade continuity appropriate for the · The data spacing is sufficient to establish the degree of
Mineral Resource and Ore Reserve estimation procedure(s) and classifications geological and grade continuity appropriate for Indicated Mineral Resource
applied. classification.
· Whether sample compositing has been applied. · All samples were composited to 1m length, with a minimum
allowable length of 0.5m.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · Drill holes are designed to intersect known mineralised features
possible structures and the extent to which this is known, considering the in a nominally perpendicular orientation as much as is practicable given the
deposit type. availability of drilling platforms. All drill core is oriented to assist with
interpretation of mineralisation and structure.
· If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have introduced a · There does not appear to be any bias between drilling orientation
sampling bias, this should be assessed and reported if material. and assay results.
Sample security · The measures taken to ensure sample security. · Samples are transported from drill site to the core shed by
company personnel. On completion of cutting the core, the samples are
dispatched by hired truck to the SGS Laboratory in Mwanza, Tanzania or by
courier to SGS in South Africa Sample dispatches are reconciled against
Laboratory samples received and discrepancies reconciled by geology staff.
Audits or reviews · The results of any audits or reviews of sampling techniques and · No audits or reviews of sampling techniques and data have been
data. performed.
Section 2: Reporting of Exploration Results
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · The Western Kenya Project area is located in the County of
agreements or material issues with third parties such as joint ventures, Kakamega in western Kenya. The Isulu and Bushiangala prospects lie within the
partnerships, overriding royalties, native title interests, historical sites, Liranda Corridor approximately 48 km north northwest of Kisumu City (Kenya's
wilderness or national park and environmental settings. third largest City) and 30 km southwest of Kakamega town.
· The security of the tenure held at the time of reporting along with · Isulu and Bushiangala deposits are situated within PL/2019/0225,
any known impediments to obtaining a licence to operate in the area. granted 1(st) Aug 2019 and covering 314.57 sq km. is wholly owned by Shanta
Gold Kenya Ltd.
· There are no material issues affecting the tenements.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · Gold prospecting and small-scale mining commenced in the area by
1920s, as part of the Kakamega Gold Rush. The focus was on eluvial and
alluvial gold and narrow high-grade veins. Most of this activity ceased in the
1950s. Between 1982-2000, the Bureau de Recherches Géologiques et Minières
(BRGM) carried out gold and base metals exploration.
In 2003, AfriOre Ltd took up exploration licences, which included the Liranda
Corridor. Their exploration focused on investigating known gold occurrences
rather than following a grassroots approach.
In 2007 Lonmin Plc took over AfriOre Ltd, but exploration work was restricted
to regional soil surveys in areas outside the Liranda Corridor area. Aviva
Mining Ltd (Aviva) entered into a Joint Venture agreement with AfriOre in
2010. Aviva collected and collated all existing data into a single data set.
They acquired regional airborne magnetics and radiometrics and combined them
with existing BRGM data to create a seamless geophysical dataset. Regional
mapping and prospect scale mapping was done and used together with historical
data to reinterpret the geology. Extension and infill of existing soil grids
was completed followed up by shallow diamond and RC drilling.
In late 2012 African Barrick Gold (now Acacia Mining Ltd) purchased Aviva
Mining Ltd and commenced exploration activities and declared a maiden resource
at Isulu and Bushiangala in 2017.
Shanta Gold took over the project in August 2020.
Geology · Deposit type, geological setting and style of mineralisation. The Liranda Corridor is located on the eastern most margin of the
Busia-Kakamega Belt. Here rocks form a broad synclinal structure intruded in
the centre by granitoids and dioritoids, informally termed the Kakamega Dome.
The Liranda Corridor is situated on the eastern limb of this synclinal
structure within a 12 km structural zone known informally as the Liranda
Corridor. Lithologies of the Isulu and Bushiangala prospects include
sediments, iron-rich basalts, ultramafic volcanic rocks, gabbros, dolerites
and small felsic intrusions. The mafic volcanic unit also includes thin layers
of sulphidic carbonaceous interflow mudstone.
The Isulu and Bushiangala prospects mineralisation are classified as orogenic,
shear-zone-hosted quartz-carbonate vein subtype. Mineralisation of this
sub-type consists of quartz-carbonate veins and veinlet arrays associated with
Mg-Fe carbonate alteration and sulphidation, which are developed within shear
zones and their splays, within competent rock units. Mineralisation is
concentrated in zones of enhanced fluid flow, such as jogs or changes in
strike along the larger-scale fault zones.
Drill hole Information · A summary of all information material to the understanding of the · No exploration results are reported in this release.
exploration results including a tabulation of the following information for
all Material drill holes: · The treatment of drill data has been articulated in Section 1.
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, · The assay high grades used for this estimate were cut to 80 g/t
maximum and/or minimum grade truncations (eg cutting of high grades) and for the mineralised veins and 3 g/t for the background mineralization at Isulu
cut-off grades are usually Material and should be stated. and 55 g/t for the mineralised veins and 2.5 g/t for the background
mineralization at Isulu
· Where aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used for such · Cut-off grades were applied after compositing of the raw assay
aggregation should be stated and some typical examples of such aggregations data into 1m lengths.
should be shown in detail.
· Blank intervals contained within the mineralisation were treated
· The assumptions used for any reporting of metal equivalent values as zero. Due to selective sampling of the core, blank intervals lying outside
should be clearly stated. of the veins had a grade of 0.001 g/t Au applied to them.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · The holes drilled varied between -44 and -80 degrees from
Exploration Results. surface, with the mineralisation being sub-vertical. It is estimated that the
true widths of the mineralized zones are approximately 60-70% of the widths
· If the geometry of the mineralisation with respect to the drill intersected in the drill holes.
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 · No exploration results are reported in this release.
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 · No exploration results are reported in this release.
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 · No exploration results are reported in this release.
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
Further work · The nature and scale of planned further work (eg tests for lateral · Approximately 95 holes for 40,000m planned infill drilling for
extensions or depth extensions or large-scale step-out drilling). conversion to mineable resources and expansion drilling across the Liranda
Region has been budgeted for in 2022.
· Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
Section 3: Estimation and Reporting of Mineral Resources
Database integrity · Measures taken to ensure that data has not been corrupted by, for · Data are stored in an SQL acQuire database. Assay and geological
example, transcription or keying errors, between its initial collection and data are electronically loaded into acQuire and a validation process run.
its use for Mineral Resource estimation purposes. Regular reviews of data quality are conducted by site and management teams
prior to resource estimation.
· Data validation procedures used.
Site visits · Comment on any site visits undertaken by the Competent Person and · Site visits to the West Kenya Project were undertaken by the
the outcome of those visits. independent consultant Catherine Pitman of Adiuvare GE (Competent Person for
the Mineral Resource estimate) in 2016, 2018 and 2019.
· If no site visits have been undertaken indicate why this is the
case.
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological · The level of confidence in the interpretations of the mineralised
interpretation of the mineral deposit. zones is reflected by the Mineral Resource classification.
· Nature of the data used and of any assumptions made. · Geological data from core and RC drilling provides the
information for the deposits. The main mineralisation
· The effect, if any, of alternative interpretations on Mineral
Resource estimation. zones were defined by the presence of gold values at cut-off of 0.5 g/t Au, as
well as the presence of other indicators such as shear intensity, brecciation,
· The use of geology in guiding and controlling Mineral Resource sulphide content and alteration. The interpretations were completed along
estimation. sections typically at spacings of 20m at Bushiangala
· The factors affecting continuity both of grade and geology. and 40m at Isulu. The interpretations were triangulated to form 3D solids
(mineralised zones) using Leapfrog software.
· There are no alternative detailed interpretations of geology
using the current data.
· The geology has guided the resource estimation, particularly the
lithological and structural control.
· Grade and geological continuity have been established by the
existing 3D data. The continuity is well understood at Isulu, especially in
relation to structural effects, while at Bushiangala, part of the deposit
requires more data to be better understood.
Dimensions · The extent and variability of the Mineral Resource expressed as · The main zones of mineralisation at Isulu extend up to 240m along
length (along strike or otherwise), plan width, and depth below surface to the strike. The resource estimate (Phase 1) generally includes mineralisation down
upper and lower limits of the Mineral Resource. to 250m depth.
· At Bushiangala the mineralisation extends over 270m along strike
in the NNW-SSE trend and 150m along strike in the E-W trend. The resource
estimate extends to a maximum depth of 250m.
· Both deposits remain open along strike and at depth.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) Grade estimation for each of the two prospects carried out using Micromine
applied and key assumptions, including treatment of extreme grade values, software to generate a block model; with the individual zones separated out
domaining, interpolation parameters and maximum distance of extrapolation from for grade interpolation within each area. For each prospect, the following
data points. If a computer assisted estimation method was chosen include a process was followed.
description of computer software and parameters used.
· All the individual mineralisation zone wireframe solids were
· The availability of check estimates, previous estimates and/or mine verified using Micromine® software
production records and whether the Mineral Resource estimate takes appropriate
account of such data. · Drill data was de-surveyed and assessed for overlaps and outlier
values
· The assumptions made regarding recovery of by-products.
· Individual assay samples were selected from within each zone
· Estimation of deleterious elements or other non-grade variables of
economic significance (eg sulphur for acid mine drainage characterisation). · The selected samples were composited to 1m intervals
· In the case of block model interpolation, the block size in · Statistical analysis was carried out to define capping levels
relation to the average sample spacing and the search employed.
· Gold values were adjusted for true absent or zero values
· Any assumptions behind modelling of selective mining units.
· The block model used dimensions of:
· Any assumptions about correlation between variables.
o X = 10 m
· Description of how the geological interpretation was used to
control the resource estimates. o Y = 10 m
· Discussion of basis for using or not using grade cutting or o Z = 10 m
capping.
· Each individual zone was filled with blocks using sub-cells down
· The process of validation, the checking process used, the to 0.5 m in the east and north directions and 1 m in the vertical direction
comparison of model data to drill hole data, and use of reconciliation data if
available. · Block grades and density values were estimated into each parent
block within individual zones
· Blocks falling within the modelled intrusives at Isulu had their
grades set to zero
· A default specific gravity using the mean value of 2.75 for Isulu
and Bushiangala was used for fresh rock blocks that may not have been
estimated.
· At Bushiangala a default specific gravity value of 1.9 was
applied to oxide rock due to a lack of SG data, with the same applied as a
default for Isulu
All samples were composited to 1m length, with a minimum allowable length of
0.5m. Capping of the composites was carried out by zone for both Isulu and
Bushiangala. The capping levels were assigned using log probability plots for
the grade. The Table below shows the value applied to each zone.
Prospect Number of samples Capping value (Au g/t)
Isulu Veins 552 80
Isulu Background 106,061 3
Bushiangala Veins 850 55
Bushiangala Background 32,198 2.5
Estimation at Isulu and Bushiangala was carried out using Inverse Distance to
the power of 2.
For Isulu the search ellipses were orientated with the primary axis along an
azimuth of 060 with a plunge of 700 from horizontal for the mineralisation.
The search ellipse radii were X=100 m; Y=40 m and Z=80 m. The search range
factors were 0.5 for the first pass; 1 for the second pass and 2 for the third
pass. Each vein was estimated independently.
For Bushiangala the primary search axis was orientated along an azimuth of
090, with a plunge of 700 from horizontal for the mineralisation. The search
ellipse radii were X=100 m; Y=20 m and Z=75 m. The search range factors were
0.5 for the first pass; 1 for the second pass and 2 for the third pass. Each
vein was estimated independently..
Resource classification was assigned according to the continuity of the
mineralization, known geological controls and drill spacing.
In order to categorise the blocks into Indicated, Inferred and unclassified
the following steps were completed:
· All blocks outside of the modelled wireframes for both deposits
were coded as unclassified;
· Blocks that were estimated with an average distance of less than
40 m to the samples were coded as Indicated;
· The models were visually inspected and both outlier and inlier
values were adjusted so that the Indicated blocks were large continuous areas;
· All the veins were statistically analysed for the percentage by
tonnes that were classified and any vein which contained greater than 80% of
one category was immediately classified as completely that category.
Each zone was divided into Oxide and Fresh rock using the Top of Fresh Rock
surface..
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 · The Mineral Resource reported cut-off grades of 1 g/t Au for the
applied. oxidised rock and 3 g/t Au for the fresh rock to reflect current commodity
prices geometry of mineralised zones and comparison with the analogous
operations.
· Additional cut-off values have been included in order to assess
the sensitivity of output ounces to change in the cut-off value.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · Based on the currently identified mineralization, probable
dimensions and internal (or, if applicable, external) mining dilution. It is extraction is by various underground mining.
always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential mining methods, but the · Mining factors such as dilution and ore loss have not been
assumptions made regarding mining methods and parameters when estimating applied.
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 · No metallurgical assumptions have been built into the resource
amenability. It is always necessary as part of the process of determining models.
reasonable prospects for eventual economic extraction to consider potential
metallurgical methods, but the assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral Resources may not always
be rigorous. Where this is the case, this should be reported with an
explanation of the basis of the metallurgical assumptions made.
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue · The Isulu and Bushiangala deposits are at an early stage of
disposal options. It is always necessary as part of the process of determining evaluation and environmental studies have not yet been undertaken.
reasonable prospects for eventual economic extraction to consider the
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 · Specific gravity sampling has continued through the life of the
assumptions. If determined, the method used, whether wet or dry, the frequency project, the measurements are carried out in accordance with site standard
of the measurements, the nature, size and representativeness of the samples. procedures for Specific Gravity. Intervals for bulk density determination are
selected according to lithology/ alteration/mineralization type to best
· The bulk density for bulk material must have been measured by represent certain intervals as defined by the geologist. The measurements are
methods that adequately account for void spaces (vugs, porosity, etc), performed on site by geologists or geological assistants as part of the
moisture and differences between rock and alteration zones within the deposit. logging process. Measurements are generally after every 20 metres or a change
in lithology within the 20 metres and 1-metres interval for mineralized zones.
· 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 · Classification for the Isulu and Bushiangala Mineral Resources is
varying confidence categories. based upon the continuity of geology, mineralisation and grade, using
drillhole data spacing and quality and estimation statistics.
· Whether appropriate account has been taken of all relevant factors
(ie relative confidence in tonnage/grade estimations, reliability of input
data, confidence in continuity of geology and metal values, quality, quantity
and distribution of the data). · The Mineral Resources are classified as Indicated and Inferred.
· Whether the result appropriately reflects the Competent Person's
view of the deposit.
· The classification considers all available data and quality of
the estimate and reflects the Competent Person's view of the deposit.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · The resource estimate (Inferred Category) has been reviewed by
the Shanta staff Tanzanian Operations.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and · The assigned classification of Indicated and Inferred reflects
confidence level in the Mineral Resource estimate using an approach or the Competent Person's assessment of the accuracy and confidence levels in the
procedure deemed appropriate by the Competent Person. For example, the global Mineral Resource estimate.
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.
Estimation at Isulu and Bushiangala was carried out using Inverse Distance to
the power of 2.
For Isulu the search ellipses were orientated with the primary axis along an
azimuth of 060 with a plunge of 700 from horizontal for the mineralisation.
The search ellipse radii were X=100 m; Y=40 m and Z=80 m. The search range
factors were 0.5 for the first pass; 1 for the second pass and 2 for the third
pass. Each vein was estimated independently.
For Bushiangala the primary search axis was orientated along an azimuth of
090, with a plunge of 700 from horizontal for the mineralisation. The search
ellipse radii were X=100 m; Y=20 m and Z=75 m. The search range factors were
0.5 for the first pass; 1 for the second pass and 2 for the third pass. Each
vein was estimated independently..
Resource classification was assigned according to the continuity of the
mineralization, known geological controls and drill spacing.
In order to categorise the blocks into Indicated, Inferred and unclassified
the following steps were completed:
· All blocks outside of the modelled wireframes for both deposits
were coded as unclassified;
· Blocks that were estimated with an average distance of less than
40 m to the samples were coded as Indicated;
· The models were visually inspected and both outlier and inlier
values were adjusted so that the Indicated blocks were large continuous areas;
· All the veins were statistically analysed for the percentage by
tonnes that were classified and any vein which contained greater than 80% of
one category was immediately classified as completely that category.
Each zone was divided into Oxide and Fresh rock using the Top of Fresh Rock
surface..
Moisture
· Whether the tonnages are estimated on a dry basis or with natural
moisture, and the method of determination of the moisture content.
· Tonnages are reported on a dry basis.
Cut-off parameters
· The basis of the adopted cut-off grade(s) or quality parameters
applied.
· The Mineral Resource reported cut-off grades of 1 g/t Au for the
oxidised rock and 3 g/t Au for the fresh rock to reflect current commodity
prices geometry of mineralised zones and comparison with the analogous
operations.
· Additional cut-off values have been included in order to assess
the sensitivity of output ounces to change in the cut-off value.
Mining factors or assumptions
· Assumptions made regarding possible mining methods, minimum mining
dimensions and internal (or, if applicable, external) mining dilution. It is
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.
· Based on the currently identified mineralization, probable
extraction is by various underground mining.
· Mining factors such as dilution and ore loss have not been
applied.
Metallurgical factors or assumptions
· The basis for assumptions or predictions regarding metallurgical
amenability. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider potential
metallurgical methods, but the assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral Resources may not always
be rigorous. Where this is the case, this should be reported with an
explanation of the basis of the metallurgical assumptions made.
· No metallurgical assumptions have been built into the resource
models.
Environmental factors or assumptions
· Assumptions made regarding possible waste and process residue
disposal options. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider the
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.
· The Isulu and Bushiangala deposits are at an early stage of
evaluation and environmental studies have not yet been undertaken.
Bulk density
· Whether assumed or determined. If assumed, the basis for the
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.
· Specific gravity sampling has continued through the life of the
project, the measurements are carried out in accordance with site standard
procedures for Specific Gravity. Intervals for bulk density determination are
selected according to lithology/ alteration/mineralization type to best
represent certain intervals as defined by the geologist. The measurements are
performed on site by geologists or geological assistants as part of the
logging process. Measurements are generally after every 20 metres or a change
in lithology within the 20 metres and 1-metres interval for mineralized zones.
Classification
· The basis for the classification of the Mineral Resources into
varying confidence categories.
· Whether appropriate account has been taken of all relevant factors
(ie relative confidence in tonnage/grade estimations, reliability of input
data, confidence in continuity of geology and metal values, quality, quantity
and distribution of the data).
· Whether the result appropriately reflects the Competent Person's
view of the deposit.
· Classification for the Isulu and Bushiangala Mineral Resources is
based upon the continuity of geology, mineralisation and grade, using
drillhole data spacing and quality and estimation statistics.
· The Mineral Resources are classified as Indicated and Inferred.
· The classification considers all available data and quality of
the estimate and reflects the Competent Person's view of the deposit.
Audits or reviews
· The results of any audits or reviews of Mineral Resource estimates.
· The resource estimate (Inferred Category) has been reviewed by
the Shanta staff Tanzanian Operations.
Discussion of relative accuracy/ confidence
· Where appropriate a statement of the relative accuracy and
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.
· The assigned classification of Indicated and Inferred reflects
the Competent Person's assessment of the accuracy and confidence levels in the
global Mineral Resource estimate.
APPENDIX 2 - BUMBO
Section 1: Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques Nature and quality of sampling (e.g. cut channels, random chips, or specific Diamond drilling with HQ core size, which provides a high-quality sample, and
specialised industry standard measurement tools appropriate to the minerals was used for geological interpretation and grade estimation, with minor RC
under investigation, such as down hole gamma sondes, or handheld XRF drilling.
instruments, etc.). These examples should not be taken as limiting the broad
meaning of sampling.
Include reference to measures taken to ensure sample representivity and the All drillholes were drilled close to perpendicular to the vein boundaries.
appropriate calibration of any measurement tools or systems used. Holes were logged and comments made about core recovery.
Aspects of the determination of mineralisation that are Material to the Public Diamond drilling with HQ core size was used predominantly. All holes were
Report. logged geologically. Sampling was by cutting half core, with breaks at
geological boundaries. The most common sample length was 0.5 and 1 m. Half
In cases where 'industry standard' work has been done this would be relatively core samples were crushed and pulverized and then assayed by a full suite of
simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from elements.
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 RC drilling was carried out for 5 holes, with samples collected every 1 m.
that has inherent sampling problems. Unusual commodities or mineralisation All holes were logged geologically.
types (e.g. submarine nodules) may warrant disclosure of detailed information.
Drilling techniques Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air HQ diamond core drilling using wireline with a standard tube. The older core
blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or drilled by BRGM was not orientate; holes drilled by AVIVA were orientated.
standard tube, depth of diamond tails, face-sampling bit or other type,
whether core is oriented and if so, by what method, etc.). RC drilling was 51/4inch size with face hammer.
Drill sample recovery Method of recording and assessing core and chip sample recoveries and results Core/sample recoveries were not recorded specifically in the drillhole
assessed. database, however (Optiro Pty Ltd, 2012)state that AVIVA recovery was on
average 85%, and close to 100% for the BRGM holes
Measures taken to maximise sample recovery and ensure representative nature of Core recovery averages better than 85%, which shows that conventional good
the samples. diamond drilling practices were sufficient to ensure satisfactory recovery.
Relationship between sample recovery and grade/sample bias. No analysis of recovery against grade has been carried out, since recovery
data is not recorded in the drillhole database.
Logging Whether core and chip samples have been geologically and geotechnically logged All core and samples are geologically logged for lithology, alteration and
to a level of detail to support appropriate Mineral Resource estimation, structure. The standard is sufficient to support Mineral Resource estimation,
mining studies and metallurgical studies. mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean, Logging was qualitative; however, the geologists also record visual
channel, etc) photography. quantitative mineral percentage ranges for the sulphide minerals present.
Whilst it was reported that core is photographed, photos were not part of the
dataset used for this MRE.
The total length and percentage of the relevant intersections logged. All holes and intersections have been logged.
Subsampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. Core samples were taken from half core, cut using a diamond core saw. The
remainder of the core was retained in core trays tagged with a hole number and
metre mark. They are stored in a shed on site.
If non-core, whether riffled, tube sampled, rotary split, etc and whether RC samples were riffle split to give a sample of about 3kg. RC drilling had
sampled wet or dry. sufficient air to keep the sample dry.
For all sample types, the nature, quality and appropriateness of the sample Half core samples are sent to the assay laboratory for sample preparation
preparation technique which comprises crushing, splitting and then pulverizing to give a pulp. RC
samples were completely pulverised. The assay method is not described, but is
a full suite element method. The range of minimum values was reviewed and
showed that the methods were adequate for MRE.
Quality control procedures adopted for all subsampling stages to maximise Cut lines are marked on diamond drill core to ensure that the core to minimise
representivity of samples. bias when cutting.
When the half core has been crushed, the crushed sample is split using a
riffle splitter down to 1kg splits. The 1kg split is then totally pulverized.
Measures taken to ensure that the sampling is representative of the in situ Cut lines are marked on diamond drill core to ensure that the core to minimise
material collected, including for instance results for field bias when cutting.
duplicate/second-half sampling.
(Optiro Pty Ltd, 2012) state that QAQC is adequate to support MRE.
Whether sample sizes are appropriate to the grain size of the material being The sample sizes were appropriate for the type, style and consistency of
sampled. mineralisation encountered during this phase of exploration.
Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory The assay method and laboratory procedures were appropriate for this style of
procedures used and whether the technique is considered partial or total. mineralisation. The fire assay technique was designed to measure total gold in
the sample.
For geophysical tools, spectrometers, handheld XRF instruments, etc, the No geophysical tools, spectrometers were used.
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.
Nature of quality control procedures adopted and whether acceptable levels of No QAQC data was available for the BRGM holes. The AVIVA holes had adequate
accuracy (i.e. lack of bias) and precision have been established. QAQC, and twinned some of the BRGM holes. (Optiro Pty Ltd, 2012) carried out a
review, and showed that the QAQC is adequate to support MRE.
Verification of sampling and assaying The verification of significant intersections by either independent or The data is historic.
alternative company personnel.
The use of twinned holes. Twinned holes have not been drilled at this stage. The prospect is currently
drilled at a relatively wide spacing. Twinning is recommended as part of the
next stage infill program.
Documentation of primary data, data entry procedures, data verification, data There is no documentation of data entry procedures. SHG took over the project
storage (physical and electronic) protocols. in 2020, and has not carried out any diamond drilling since then. All drilling
was carried out by previous explorers.
Original logging was on paper logs, and then entered into Excel sheets. The
drillhole database is an Access database.
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 drillholes (collar and downhole Drill collars were surveyed after completion presumably by GPS, but no details
surveys), trenches, mine workings and other locations used in Mineral Resource are provided in the dataset.
estimation.
There is no downhole survey data for BRGM holes. AVIVA drillhole have been
surveyed at 15 m intervals using multishot relative to magnetic north.
Specification of the grid system used. All coordinates and bearings use the WGS84_UTM36N grid.
Quality and adequacy of topographic control. No topographic information was provided. SHG should carry out a survey to
generate an accurate DEM.
Data spacing and distribution Data spacing for reporting of Exploration Results. The data spacing is irregular, with a clustering in the main part of the
deposit, but average spacings are approximately 100 m.
Whether the data spacing and distribution is sufficient to establish the The CP believes that the mineralised domains have sufficient geological and
degree of geological and grade continuity appropriate for the Mineral Resource grade continuity to support the classification applied to the Mineral Resource
and Ore Reserve estimation procedure(s) and classifications applied. given the current drill pattern.
Mineral Resource estimation procedures are also considered appropriate give
the quantity of data available and style of mineralisation under
consideration.
Sample compositing. Sample composites have not been used.
Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible Drilling was designed based on known geological models, field mapping, and
structures and the extent to which this is known, considering the deposit cross-sectional interpretation.
type.
Drillholes oriented at right angles to strike of deposit, with dip optimised
for drill capabilities and the dip of the orebody.
If the relationship between the drilling orientation and the orientation of This is not considered to be a material factor because of the style of
key mineralised structures is considered to have introduced a sampling bias, mineralisation.
this should be assessed and reported if material.
Sample security The measures taken to ensure sample security. No information was provided on sample security.
The CP recommends that this facet is better documented in future.
Audits or reviews The results of any audits or reviews of sampling techniques and data. None were considered for this MRE.
Section 2: Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or Bumbo lies on SL213 Siaya Licence. No checks were carried out to determine its
material issues with third parties such as joint ventures, partnerships, standing.
overriding royalties, native title interests, historical sites, wilderness or
national park and environmental settings.
The security of the tenure held at the time of reporting along with any known No checks were carried out to determine its standing, other than assurance
impediments to obtaining a licence to operate in the area. from SHG.
Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. All drilling was carried out prior to SHG taking up the EL. Initial drilling
work was carried out by BRGM in 1987 through to 1998. A second phase of
drilling was carried out by Aviva between 2010 and 2012.
Geology Deposit type, geological setting and style of mineralisation. Bumbo is situated within the Kenyan Ndori Greenstone belt which forms part of
the Tanzanian Archaean Craton. Bumbo is located within the Kavirondian
sequence of volcano sedimentary lithologies.
Deposit Mineralisation
Bumbo is a polymetallic deposit (Zn-Cu, Au-Ag) which occurs as two sulphide
lenses less than 100 m apart. Each lens has a strike length of about 250 m
and extend to at least 150 m below surface and have an average width of about
8 m. The lenses dip steeply to the north.
It is considered a VMS deposit style.
Drillhole information A summary of all information material to the understanding of the exploration Exploration results are not being reported.
results including a tabulation of the following information for all Material
drillholes:
· easting and northing of the drillhole collar;
· elevation or RL (Reduced Level - elevation above sea level in metres)
of the drillhole collar;
· dip and azimuth of the hole;
· downhole length and interception depth;
· hole length.
If the exclusion of this information is justified on the basis that the Exploration results are not being reported.
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, maximum Exploration results are not being reported.
and/or minimum grade truncations (e.g. cutting of high grades) and cut-off
grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high grade results and Exploration results are not being reported.
longer lengths of low grade results, the procedure used for such aggregation
should be stated and some typical examples of such aggregations should be
shown in detail.
The assumptions used for any reporting of metal equivalent values should be Exploration results are not being reported.
clearly stated.
Relationship between mineralisation widths and intercept lengths These relationships are particularly important in the reporting of Exploration Exploration results are not being reported.
Results.
If the geometry of the mineralisation with respect to the drillhole angle is Holes were drilled orthogonal to mineralisation as much as possible; however,
known, its nature should be reported. the exact relationship between intercept width and true width cannot be
estimated exactly in all cases.
If it is not known and only the downhole lengths are reported, there should be Exploration results are not being reported.
a clear statement to this effect (e.g. 'downhole length, true width not
known').
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts Exploration results are not being reported.
should be included for any significant discovery being reported These should
include, but not be limited to a plan view of drillhole collar locations and
appropriate sectional views.
Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, Exploration results are not being reported.
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 reported No substantive exploration data not already mentioned in this table has been
including (but not limited to): geological observations; geophysical survey used in the preparation of this MRE.
results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
Further work The nature and scale of planned further work (e.g. tests for lateral Further work will be focused on infilling mineralisation to upgrade to a
extensions or depth extensions or large-scale step-out drilling). higher Mineral Resource classification and testing for dip extensions and
strike extensions.
Diagrams clearly highlighting the areas of possible extensions, including the Exploration results are not being reported.
main geological interpretations and future drilling areas, provided this
information is not commercially sensitive.
Section 3: Estimation and Reporting of Mineral Resources
Criteria JORC Code explanation Commentary
Database integrity Measures taken to ensure that data has not been corrupted by, for example, Original assay certificates were not available for this MRE. There is no
transcription or keying errors, between its initial collection and its use for information about data entry. However, this is not considered material for
Mineral Resource estimation purposes. this MRE.
Data validation procedures used. No procedures were available to be reviewed. The data is considered adequate
for this MRE.
Site visits Comment on any site visits undertaken by the Competent Person and the outcome Steve Rose is the Competent Person. No site visit has been carried out at this
of those visits. time, due to the difficulty in travelling from Australia to Kenya because of
COVID-19. The area was reviewed using Google Earth, and it seems reasonable to
accept the data at face value.
If no site visits have been undertaken indicate why this is the case. No site visit has been carried out at this time, due to the difficulty in
travelling from Australia to Kenya because of COVID-19. The area was reviewed
using Google Earth, and it seems reasonable to accept the data at face value.
Geological interpretation Confidence in (or conversely, the uncertainty of) the geological There is a reasonable level of confidence in the geological interpretation of
interpretation of the mineral deposit. the mineralisation that is traceable over numerous drillholes.
Nature of the data used and of any assumptions made. Drillhole intercept logging, assay results and detailed geological logging
have formed basis for the geological interpretation.
The effect, if any, of alternative interpretations on Mineral Resource Geological continuity is implied between drillholes and conforms well to the
estimation. anticipated geological model based on the interpretation of regional and local
geology, and its association with mineralisation. The data does not readily
offer alternative interpretations. In places, the precise limits and geometry
cannot be absolutely defined due to the limitations of the current drill
coverage and the structural complexity. Further work is required to better
define the geometry and limits of the mineralised zones, but no significant
downside changes to the interpreted mineralised volume are anticipated.
The use of geology in guiding and controlling Mineral Resource estimation. The grade and lithological interpretation form the basis for the modelling.
The factors affecting continuity both of grade and geology. Mineralisation is hosted in massive sulphide and sulphide stringer zones. The
mineralisation is emplaced into steep east-west structures.
Dimensions The extent and variability of the Mineral Resource expressed as length (along The Mineral Resource has a strike length of 400m, a width of 20 m and extends
strike or otherwise), plan width, and depth below surface to the upper and from surface to 120 m below surface.
lower limits of the Mineral Resource.
Estimation and modelling techniques The nature and appropriateness of the estimation technique(s) applied and key Grade estimation was carried out using the geostatistical method of ordinary
assumptions, including treatment of extreme grade values, domaining, kriging. The methods use estimation parameters defined by variography. The
interpolation parameters and maximum distance of extrapolation from data 1 m composite top-cut dataset was used for the grade interpolation.
points. If a computer assisted estimation method was chosen include a Estimation of the resource was competed using Micromine. The mineralisation
description of computer software and parameters used. domains, resource category and lithology were coded to the block model.
Density data was applied on the basis of lithology.
The availability of check estimates, previous estimates and/or mine production A check Inverse Distance estimate was carried out. There is no production from
records and whether the MRE takes appropriate account of such data. Bumbo.
The assumptions made regarding recovery of by-products. Not considered.
Estimation of deleterious elements or other non-grade variables of economic No potentially deleterious elements have been considered.
significance (e.g. sulphur for acid mine drainage characterisation).
In the case of block model interpolation, the block size in relation to the A 3D block model was generated to enable grade estimation. The selected block
average sample spacing and the search employed. size was based on the geometry of the domain interpretation and the data
configuration. A block model was created using 10.0 mE x 10.0 mN x 5.0 mRL
parent blocks. Sub-cells were generated down to 2 mE x 2 mN x 1 mRL) as
appropriate to honour wireframe domains and geological interpretations during
model construction.
Any assumptions behind modelling of selective mining units. No selective mining units were assumed in this estimate.
Any assumptions about correlation between variables. Gold and silver were shown to correlate. Copper, lead and zinc had weak to
moderate correlation.
Description of how the geological interpretation was used to control the The geological interpretation was used as a basis for mineralisation
resource estimates. modelling. Zones with logged massive sulphide were interpreted into the MS
domain. Zones with strong base metals but no logged massive sulphides were
linked into STR domain. Zones with gold, but base metals below 0.5% were
linked to form the GOLD zones.
Discussion of basis for using or not using grade cutting or capping. Top cuts were used to treat the high-grade outliers of the domains. Top cuts
were based on review of the domain histogram and log probability plot.
The process of validation, the checking process used, the comparison of model Validation of the block model consisted of comparison of the block model
data to drillhole data, and use of reconciliation data if available. volume to the wireframe volume. Grade estimates were validated by statistical
comparison with the drill data, visual comparison of grade trends in the model
with the drill data trends. Additionally, swath plots were generated to verify
block model grades vs drillhole grades along easting, northing and elevation
slices. QKNA was carried to optimize block model parameters.
Moisture Whether the tonnages are estimated on a dry basis or with natural moisture, Tonnages are estimated on a dry basis.
and the method of determination of the moisture content.
Cut-off parameters The basis of the adopted cut-off grade(s) or quality parameters applied. The Mineral Resource has been reported above a 0.7% ZnEquivalent cut-off, or
above 0.5 g/t Au for GOLD zones. •
ZnEquivalent was calculated using conversion factors of 0.65 for lead, 2.64
for copper, 1.64 for gold and 0.02 for silver and recoveries of 90% for all
metals. Metal prices were $3566/t for zinc, $1822/oz for gold, $2326/t for
lead, $4/lb. for copper and $23.1/oz for silver. The applied formula was Zn
Eq=Zn+(0.65Pb)+(2.64Cu)+(1.64Au)+(0.02Ag). All metals included in the metal
equivalent equation have a reasonable potential to be recovered and sold.
Mining factors or assumptions Assumptions made regarding possible mining methods, minimum mining dimensions The mineralisation is within 120 m of the surface and is steeply dipping. This
and internal (or, if applicable, external) mining dilution. It is always suggests the potential for open pit mining.
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 amenability. No metallurgical testwork data was available. Nothing in the geological logs
It is always necessary as part of the process of determining reasonable or the assays suggests there will be problems with recovery using conventional
prospects for eventual economic extraction to consider potential metallurgical flotation methods.
methods, but the assumptions regarding metallurgical treatment processes and
parameters made when reporting Mineral Resources may not always be rigorous.
Where this is the case, this should be reported with an explanation of the
basis of the metallurgical assumptions made.
Environmental factors or assumptions Assumptions made regarding possible waste and process residue disposal No assumptions have been made.
options. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider the
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 assumptions. If A table of density data was provided in the Bumbo dataset. This was analysed
determined, the method used, whether wet or dry, the frequency of the by domain. For the fresh domains it was found that the density values had too
measurements, the nature, size and representativeness of the samples. wide a spread to rely on a simple mean as the value to apply. Scattergrams
were plotted between metals and density to determine possible relationships.
Regression formulae were able to be derived. For the two oxide domains there
was insufficient data to determine regression formulae, and the spread of
density values tended to be lower, so it was permissible to use the mean
values.
Domain Density Value
MS Density = 3.21+0.05(Zn%)
STR - FRESH Density=2.85+0.13*(Cu%)
STR - OXIDE 2.68
GOLD - FRESH Density=2.74*0.66(Cu%)
GOLD - OXIDE 2.84
The bulk density for bulk material must have been measured by methods that Some porosity can be expected, however, the bulk density assigned is
adequately account for void spaces (vugs, porosity, etc), moisture and considered to be reasonable.
differences between rock and alteration zones within the deposit.
Discuss assumptions for bulk density estimates used in the evaluation process Values were assigned on the basis of lithology and assay grade.
of the different materials.
Classification The basis for the classification of the Mineral Resources into varying The Mineral Resource was classified as Inferred, considering the level of
confidence categories. geological understanding of the deposit, survey precision, quality of samples,
density data, drillhole spacing and sampling and assaying processes.
Whether appropriate account has been taken of all relevant factors (i.e. The following initial classification approach was adopted:
relative confidence in tonnage/grade estimations, reliability of input data,
confidence in continuity of geology and metal values, quality, quantity and · The resource was classed as Inferred if the block was filled in the
distribution of the data). second pass of estimation, with a radius of 120 m.
· On review, all blocks were filled on the second pass.
Whether the result appropriately reflects the Competent Person's view of the The MRE appropriately reflects the view of the Competent Person.
deposit.
Audits or reviews The results of any audits or reviews of MREs. No audits have been carried out.
Discussion of relative accuracy/ confidence Where appropriate a statement of the relative accuracy and confidence level in The Mineral Resource accuracy is communicated through the classification
the MRE using an approach or procedure deemed appropriate by the Competent assigned to this Mineral Resource.
Person. For example, the application of statistical or geostatistical
procedures to quantify the relative accuracy of the resource within stated The MRE has been classified in accordance with the JORC Code (2012 Edition)
confidence limits, or, if such an approach is not deemed appropriate, a using a qualitative approach. All factors that have been considered have been
qualitative discussion of the factors that could affect the relative accuracy adequately communicated in Section 1 and Section 3 of this Table.
and confidence of the estimate.
The statement should specify whether it relates to global or local estimates, The Mineral Resource statement relates to a global tonnage and grade estimate.
and, if local, state the relevant tonnages, which should be relevant to Grade estimates have been made for each block in the block model.
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 Bumbo is at the prospect stage; it is not in production.
compared with production data, where available.
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.
Some porosity can be expected, however, the bulk density assigned is
considered to be reasonable.
Discuss assumptions for bulk density estimates used in the evaluation process
of the different materials.
Values were assigned on the basis of lithology and assay grade.
Classification
The basis for the classification of the Mineral Resources into varying
confidence categories.
The Mineral Resource was classified as Inferred, considering the level of
geological understanding of the deposit, survey precision, quality of samples,
density data, drillhole spacing and sampling and assaying processes.
Whether appropriate account has been taken of all relevant factors (i.e.
relative confidence in tonnage/grade estimations, reliability of input data,
confidence in continuity of geology and metal values, quality, quantity and
distribution of the data).
The following initial classification approach was adopted:
· The resource was classed as Inferred if the block was filled in the
second pass of estimation, with a radius of 120 m.
· On review, all blocks were filled on the second pass.
Whether the result appropriately reflects the Competent Person's view of the
deposit.
The MRE appropriately reflects the view of the Competent Person.
Audits or reviews
The results of any audits or reviews of MREs.
No audits have been carried out.
Discussion of relative accuracy/ confidence
Where appropriate a statement of the relative accuracy and confidence level in
the MRE 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 Mineral Resource accuracy is communicated through the classification
assigned to this Mineral Resource.
The MRE has been classified in accordance with the JORC Code (2012 Edition)
using a qualitative approach. All factors that have been considered have been
adequately communicated in Section 1 and Section 3 of this Table.
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.
The Mineral Resource statement relates to a global tonnage and grade estimate.
Grade estimates have been made for each block in the block model.
These statements of relative accuracy and confidence of the estimate should be
compared with production data, where available.
Bumbo is at the prospect stage; it is not in production.
ENDS
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