REG - Sylvania Platinum - Results of Initial Optimisation Studies
24/10/2022 07:01
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RNS Number : 8405D Sylvania Platinum Limited 24 October 2022
_____________________________________________________________________________________________________________________________
24 October 2022
Sylvania Platinum Limited
("Sylvania", the "Company" or the "Group")
Results of Initial Optimisation Studies for Northern Limb Mineral Assets
Sylvania (AIM:SLP), the platinum group metals ("PGM") producer and developer
with assets in South Africa, is pleased to announce the results of its
successful optimisation studies carried out on its exploration targets located
on the Northern Limb of the Bushveld Complex in South Africa.
The results include an updated Mineral Resource Estimate ("MRE") and Scoping
Study for the Volspruit Project, which focussed solely on the Volspruit North
Body and a MRE and Exploration Results for the Far Northern Limb Projects,
which consists of the Aurora Project containing the La Pucella Target, and the
Hacra Project.
Highlights
Volspruit Project
· Volspruit North Body JORC MRE (Measured and Indicated):
o 14.87 million tonnes ("Mt") at 2E + gold ("Au") (2E includes platinum
("Pt") and palladium ("Pd")) grade of 2.27 grammes per tonne ("g/t");
o 1.08 million 2E + Au ounces;
o 19.47 million pounds ("lb") of copper ("Cu") at a grade of 0.06%; and
o 55.79 million lb of nickel ("Ni") at a grade of 0.18%.
· Volspruit North Body JORC Scoping Study completed (based on
long-term metal prices and exchange rate consensus forecast):
o Pre-tax NPV (using a discount factor of 12.5%) of $27.3 million (ZAR 464.0
million), excluding significant potential upside from rhodium ("Rh")
contribution and South Body PGM ounce inclusion currently being assessed;
o Pre-tax IRR of 17.9%;
o Pre-Feasibility Study milestone expected to be completed in FY2023,
followed by the Feasibility Study starting in FY2024;
o First production milestone expected in approximately four years from
investment decision;
o Payback Period from first production of 4.25 years;
o Life of Mine of 8.7 years;
o EBITDA per annum of $30.6 million (ZAR 520.0 million); and
o Peak funding requirement of $147.4 million (ZAR 2.5 billion).
· The Scoping Study was produced on conservative assumptions and
does not currently include a JORC compliant rhodium resource. The potential
rhodium contribution is currently being evaluated and is expected to provide
significant upside. Additionally, and important to note, the Volspruit North
Body covers 58% of the Volspruit Project area and excludes the Volspruit South
Body which is still being reviewed. This could add additional material to be
treated through capitalised infrastructure in the future, and thus provide
further upside potential.
· While the current Scoping Study economics do not meet the
Company's internal investment criteria, it does illustrate the project's
promising potential value, based on conservative assumptions and ignoring
upside potential, and so supports the Company's competently evaluated decision
to progress to a Pre-Feasibility Study during the current financial year.
Far Northern Limb Projects
Aurora Project
· La Pucella JORC MRE (Measured and Indicated):
o 16.21 Mt at 2E + Au grade of 2.63 g/t; and
o 1.37 million 2E + Au ounces.
· The La Pucella Target area is a near-surface T-Zone discovery and
currently covers just 12% of the combined Aurora project area.
o The discovery of the T-Zone near surface indicates that this high grade
zone previously found at depth, has the potential to be mined utilising open
pit mining methods.
· A scoping level mining study is being carried out with results
expected in early 2023.
· Mineralisation is known to continue at depth and with future
additional drilling an additional underground MRE could be reported.
· Future studies are aimed at improving analytical confidence to
include Rh and base metals in the MRE that are currently at inferred level.
Hacra Project
· Encouraging 2021 Exploration Results with various intersections
indicating attractive grades between 2.3g/t and 7.4g/t 2E + Au and a true
intersection thickness from 3.4m up to 11.9m.
· Contiguous to the Waterberg PGM project.
· Working towards a maiden MRE in early 2023.
Next Steps
· As part of its commitment to further improve the viability of its
exploration assets at both the Volspruit and Far Northern Limb projects, and
to further unlock economic potential from these owned and licenced assets, the
Company anticipates spending approximately ZAR70.0 million ($4.4 million)
during FY2023 to perform further resource optimisation and to undertake
additional exploration drilling and will continue to apply the same study
parameters as used in the initial investigations to the remaining target
areas, to ensure future value is realised at its exploration assets.
Jaco Prinsloo, CEO of Sylvania, commented:
"I am excited to share the results of our extensive optimisation studies at
our Northern Limb Mineral Assets. These results include detailed Mineral
Resource Estimates and a Scoping Study, and even though these were evaluated
using conservative parameters, all results demonstrate attractive projects
with significant upside potential across our entire Northern Limb asset
portfolio.
"While the current Volspruit Scoping Study economics do not meet the Company's
internal investment criteria and would not currently trigger a formal
investment decision, I believe that the PFS that has already commenced will
illustrate the significant upside that the inclusion of the Rh resource and
South Body material would contribute. From existing metallurgical data
(non-JORC compliant), we know that Rh could for example contribute
approximately 5% to 6% additional ounces at no additional capex, demonstrates
substantial additional value and which would significantly improve the
attractiveness of the project.
"In terms of the Aurora Project, I am particularly excited by the presence of
the near surface T-Zone, similar to that previously encountered at depth by
Platinum Group Metals Ltd on its Waterberg project. However, this newly
discovered near surface T-Zone suggests a lower cost and lower risk
opportunity than typical deep level underground mining techniques.
"These targeted exploration studies were commissioned during FY2021 for both
the Volspruit and Far Northern Limb Projects and the rapid delivery of these
exploration results is a testament to the team's hard work and the Company's
ability to deliver, in an effective and efficient manner, on its strategic
goals.
"During FY2023, the Company will continue to produce additional optimisation
studies for the remaining target areas held under the Company's approved
Mining Rights and that we deem to hold further value for Sylvania. These
exploration activities will be internally funded and have already been
included in the Company's announced cashflow planning for this current year.
"While the Company continues to focus on delivering value from and growing its
existing cash generating dump reprocessing operations, the optimisation of
value from its exploration assets remains one of the important pillars of
Sylvania Platinum's growth strategy and a future value driver. With that in
mind, we are proud to deliver these exploration results which I have no doubt
will generate significant future value for the Company and all of its
stakeholders. We look forward to sharing further updates in due course."
Further Information
The Company's Northern Limb Mineral Assets constitute various mineral asset
exploration projects, that are endowed with PGE-Ni-Cu mineralisation, on the
Northern Limb of the Bushveld Igneous Complex located in South Africa.
Sylvania has approved Mining Rights for its Mineral Asset portfolio.
Volspruit Project
The Company initiated a resource optimisation study, with the assistance of
Earthlab Technical Division ("Earthlab"), a mining and exploration specialist
company, at the Volspruit North Body. The primary objective was to improve the
Run of Mine ("ROM") ore feed grades for the project to enable the production
of a higher grade, saleable PGM concentrate, eliminating the need for
expensive and complicated downstream processing infrastructure.
Earthlab has reviewed historical exploration results of the Volspruit North
Body and a revised geological interpretation was applied. This allows for
higher grades, reducing the Mineral Resource Estimate to a smaller volume, but
of a higher quality. Due to the alternative definition of mineralised zones,
estimated as separate domains, the 2E PGM + Au grade of the MRE increased
significantly and has enhanced the economic potential of the Volspruit North
Body, especially when combined with the relatively low waste to reef stripping
ratios anticipated.
We continue to meet the investment and workstream requirements relating to the
permits under the existing Mining Right, with specialist technical teams
currently working on the authorisations. These authorisations include the
Water Use Licence for the mining and on-site processing of the ore, updating
of the Environmental Impact Assessment and the finalisation of the amended
Social and Labour Plan ("SLP") which will update the Local Economic
Development ("LED") project that is included in the Mining Right held by the
Company.
Mineral Resource Estimate
Table 1 shows the Volspruit North Body Mineral Resource tonnes and grades in
g/t of Pt, Pd, Au and summed up as 2E + Au grade as well as Cu and Ni as
percentages. The tonnes and the metal content are reported on a 100%
attributable basis for all the PGMs and Base Metals (Table 2). Tables 1 and 2
furthermore divide the tonnes, ounces, and metal contained base metals into
the three Resource Classification parameters as per the JORC Code (2012). The
categories in decreasing confidence levels are Measured, Indicated and
Inferred categories.
A significantly large proportion of the 2E + Au oz (96%) of the North Body
reports to the Measured (21%) and Indicated (75%) Mineral Resources. As for
the contained Ni, 20% reports to the Measured and 77% reports to the Indicated
categories, respectively. The Inferred Mineral Resources are attributed to
faulting which caused elevation differences with sparse drilling as well as
the presence of the Nyl River and its associated flood lines with sparse
drilling.
Table 1: Volspruit North Body Mineral Resources and grades at a 100%
attributable basis
Mineral Resource Class Tonnes after 10% Geoloss Pt (g/t) Pd (g/t) Au (g/t) 2E +Au (g/t) Cu (%) Ni (%)
Measured 3,157,604 1.01 1.23 0.05 2.30 0.07 0.17
Indicated 11,710,665 1.01 1.19 0.05 2.26 0.06 0.18
M&I 14,868,269 1.01 1.20 0.05 2.27 0.06 0.18
Inferred 558,019 1.17 1.09 0.06 2.33 0.07 0.17
Total 15,426,288 1.02 1.20 0.05 2.27 0.06 0.18
Table 2: Volspruit North Body Mineral Resources and metal content at a 100%
attributable basis
Mineral Resource Class Tonnes after 10% Geoloss Pt (oz) Pd (oz) Au (oz) 2E +Au (oz) Cu (lb) Ni (lb)
Measured 3,157,604 102,759 125,148 5,213 233,121 4,407,872 11,457,984
Indicated 11,710,665 381,174 449,773 19,293 850,240 15,063,089 44,331,575
M&I 14,868,269 483,933 574,921 24,506 1,083,360 19,470,961 55,789,558
Inferred 558,019 21,054 19,599 1,101 41,755 826,808 2,128,906
Total 15,426,288 504,987 594,521 25,608 1,125,115 20,297,769 57,918,464
Footnotes that are relevant to all Mineral Resource tables:
· Rounding of numbers may lead to computational discrepancies;
· Mineral Resources are reported as in-situ, without any dilution
of immediate hanging wall or footwall waste;
· If cut-off grade is applied at the Mineral Resource level, it
will be stated accordingly.
Scoping Study
Earthlab completed a Scoping Study on the North Body of the Volspruit Project
in accordance with the JORC Code (2012). Due to the specific JORC Code
requirements, Rh has not been included in the current resource and its
potential value contribution has therefore not been included in the Scoping
Study valuation.
The Technical Study accuracy ranges between a Scoping Study and a Feasibility
Study. A large portion of the study was completed with an accuracy better than
that required at a Pre-Feasibility study level, including resource estimation,
detailed mine design and scheduling to produce a Run of Mine ("ROM") profile
to feed a concentrator. However, most of the processing infrastructure, in
terms of the Capital Expenditure estimates, is currently at a scoping level of
accuracy, which results in the project defaulting back to a Scoping Study.
The Technical Study reasonably justifies the project's likelihood of
progressing to a Pre-Feasibility Study and beyond.
Steady state mining production is designed and planned to feed the mills with
a capacity of 150,000 tonnes per month ("ktpm") at average feed grade of 2.13
g/t 2E +Au, 0.06% Cu and 0.17% Ni. The mine plan comprises 15.7 million ROM
tonnes, at a strip ratio of 6.67 (Metric t:t ROM) for the North Pit. Mining is
scheduled in three pushbacks over a production life of 8.7 years with a
maximum pit depth of 150 metres below the surface. The business case is built
on delivering and selling concentrate to a third-party smelter similar to the
model employed at the Company's existing dump operations. The metal
recoveries, as used in the financial model to determine the recovered metal
available to sell, are based on test work undertaken by Mintek in South
Africa, which in its current level of progress is at a scoping level of
accuracy.
The project returns $27.3 million (ZAR 464.0 million) at a pre-tax NPV(12.5%)
and an IRR of 17.9%. The total contained metal in concentrate is: 704,000 oz
of Pt, Pd, and Au; 13.6 million lb of Cu; and 33.7 million lb of Ni. This
valuation currently excludes potential upside from Rh contribution and South
Body PGM ounce inclusion which are currently being assessed.
Peak funding required is $147.4 million (ZAR 2.5 billion) with a payback
period of 4.25 years from the first production. All-in Sustaining Cost
("AISC") to produce Pt, Pd, and Au ounces is $979/oz and $39.8 per tonne
milled (ZAR 675/t). The yearly projected EBITDA is $30.6 million (ZAR 520
million).
Investment returns:
Investment Returns* Total/Average
NPV Pre-Tax $27.3m (ZAR 464.0m)
IRR Pre-Tax (Real, %) 17.9%
Pre-Tax Discount Factor (Real, %) 12.5%
Payback Period (from first Production, years) 4.25
Peak Funding Requirement $147.4m (ZAR 2.5b)
Life of Mine (years) 8.7
Operating Margin (%) 33%
EBITDA per Annum $30.6m (ZAR 520m)
AISC (ZAR per Pt, Pd + Au oz payable) $979 (ZAR 16,614)
AISC (ZAR per PtEq oz payable) $788 (ZAR 13,368)
Basket Price (ZAR per Pt, Pd + Au oz payable) $1,277/oz 2E + Au
(ZAR 21,670/oz 2E + Au)
* Investment Returns currently exclude any Rh upside potential as well as any
potential contribution from the Volspruit South Body which is still being
evaluated.
(#) Converted to US$ at the long-term forecast exchange rate of ZAR16.97.
Far Northern Limb Projects
The Company currently holds approved Mining Rights for PGMs and Base Metals
for both the Aurora and Hacra project areas as part of its Far Northern Limb
Projects.
In 2020 the Company, together with Earthlab, initiated a targeted review of
the Hacra and Aurora PGM and Base Metal projects through an infill drilling
programme, re-evaluation of existing drill hole data and an optimisation
study.
Aurora Project
Through the re-interpretation of the geology, stratigraphy and the
mineralisation, a significant Measured and Indicated Mineral Resource
representing the first near-surface discovery of the Waterberg T-Zone geology
and mineralisation is being declared. These results from the La Pucella Target
area of the Far Northern Limb provide only the second known occurrence of the
T-Zone mineralisation, with the initial discovery in 2011 found at depths more
than 220 metres below surface underlying the Waterberg PGM Project.
Table 5 shows the Mineral Resource tonnes (discounted by 10% geological
losses) and grades in g/t of Pt, Pd, Au and summed up as 2E +Au grade for the
La Pucella target area which also includes a small portion of the contiguous
Nonnenwerth farm. The tonnes and the metal content are reported on a 100%
attributable basis.
A significantly large proportion of the 2E +Au oz (99 %) reports to the
Measured (31%) and Indicated (68%) Mineral Resources. The Inferred Mineral
Resources are attributed to faulting which caused elevation differences with
sparse drilling. While no blocks deeper than 200 metres below the surface are
included in the reported numbers, the mineralisation is known to extend beyond
this depth, and with future additional drilling, an underground Mineral
Resource could potentially be reported.
Table 5: Aurora Project T1 and T2 Mineral Resources and grades at La Pucella
and Nonnenwerth(( 1 (#_ftn1) ))
Mineral Resource Class Tonnes after 10% Geoloss Density (g/cm³) Pt grade (g/t) Pd grade (g/t) Au grade (g/t) 2E + Au grade (g/t) Pt metal (oz) Pd metal (oz) Au metal (oz) 2E + Au metal (oz)
Measured 4,663,151 2.72 0.97 1.48 0.40 2.85 146,009 222,053 59,386 427,448
Indicated 11,543,631 2.71 0.88 1.34 0.33 2.54 326,095 496,743 121,604 944,442
M&I 16,206,782 2.71 0.91 1.38 0.35 2.63 472,104 718,796 180,990 1,371,890
Inferred 124,671 2.71 0.95 1.32 0.40 2.68 3,822 5,297 1,611 10,730
Total 16,331,452 2.71 0.91 1.38 0.35 2.63 475,926 724,093 182,601 1,382,620
Hacra Project
Exploration Results for the Hacra mineralisation are reported in Tables 6 and
7. As the project continues, the Company aims to use the data to compile a MRE
with the aim of declaring a maiden Mineral Resource. A total of 8
intersections of the T-Zone have been logged in the drill core, of which 4
were intersected during the 2021 drilling program, all of which will be
subjected to an MRE. During the 2021 campaign, the intersections range in true
thickness from 3.40 m at 5.47 g/t 2E + Au and 11.09 m at 5.64 g/t 2E + Au. A
notable intersection during the 2021 campaign is 5 m at 7.83 g/t 2E + Au on
the T2 Unit. The MRE is expected to be completed during early 2023.
Various planned drill holes or deflections did not intersect the targeted T1
and T2 mineralisation in both the 2012 and the 2021 exploration campaigns as
noted in Table 7.
Table 6: Hacra Project Exploration Results for drill holes intersecting T1 and
T2 Units on Harriets Wish farm.
BHID Intersection From Depth (m) To Depth (m) Average Dip (Degrees) True Thickness (m) 2E +Au Grade (g/t) Drilling Campaign
HW-029 T1 519.96 594.20 45 1.91 2.80 2012
T2-UPPER 612.32 615.60 45 2.79 2.32
T2-LOWER 633.70 639.71 45 5.11 3.51
HW-029W1 T1 591.25 594.24 45 2.54 1.89
T2-UPPER 612.80 616.20 45 2.89 1.87
T2-LOWER 635.00 638.34 45 2.84 2.02
HW-029W2 T1 591.85 595.00 45 2.68 2.97
T2-UPPER 614.40 616.80 45 2.04 0.97
T2- LOWER 634.60 638.55 45 3.36 2.84
HW-032 T1 701.00 719.93 45 24.04 3.93
T2 722.13 729.25 45 6.78 3.56
HW-201_D0 T1 398.84 414.27 45 11.90 5.64 2021
T2 414.27 427.64 45 10.31 2.34
HW-202_D0 T1 405.18 410.67 45 4.23 4.84
T2 410.67 417.15 45 5.00 7.38
HW-202_D1 T1 406.11 410.15 45 3.40 5.74
T2 410.15 417.83 45 5.57 3.00
HW-202_D2 T1 404.21 409.33 45 3.95 2.78
T2 409.33 415.10 45 4.45 5.99
a Project Exploration Results for drill holes that did not intersect T1 and T2
Units on Harriets Wish farm
BHID Campaign Reason
HW-0293 2012 Intersected fault zone in HW stratigraphy. Drilling stopped due to poor ground
conditions.
HW-024 Troctolite sequence intersected (F-Zone equivalent), drill hole positioned
beyond T-Zone sub-crop.
HW-024_W1 Troctolite sequence intersected (F-Zone equivalent), drill hole positioned
beyond T-Zone sub-crop.
HW-025 Structural interference with multiple faults cross-cutting the Troctolite
Sequence (F-Zone equivalent), beyond the T-Zone sub-crop.
HW-025_W1 Structural interference with multiple faults cross-cutting the Troctolite
Sequence (F-Zone equivalent), beyond the T-Zone sub-crop.
HW-026 Beyond T-Zone sub-crop, intersection with Archean Basement directly after
Waterberg Group.
HW-027 Beyond T-Zone sub-crop, intersection with Archean Basement directly after
Waterberg Group.
HW-028 Stopped short in Waterberg Group at 6 m due to Archean Basement sub-crop.
HW-030 Drill hole stopped at planned depth with no T-Zone intersection. Drill hole on
far western extent of the Harriets Wish farm.
HW-031 Drill hole stopped at planned depth with no T-Zone intersection. Drill hole on
far western extent of the Harriets Wish farm.
HW-203_D0 2021 T-Zone intersection cross-cut by large shear zone. Structural interference and
mineralisation sterilisation.
HW-203_D1 T-Zone intersection cross-cut by large shear zone. Structural interference and
mineralisation sterilisation.
HW-204_D0 T-Zone intersection cross-cut by large shear zone. Structural interference and
mineralisation sterilisation.
HW-204_D1 T-Zone intersection cross-cut by large shear zone. Structural interference and
mineralisation sterilisation.
HW-204_D2 T-Zone intersection cross-cut by large shear zone. Structural interference and
mineralisation sterilisation.
HW-205 Troctolite Sequence intersected (F-Zone equivalent), drill hole positioned
beyond T-Zone sub-crop.
HW-206 Drill hole abandoned due to poor drilling conditions and hole collapse, due to
Paleosol Unit destabilisation.
CONTACT DETAILS
For further information, please contact:
Jaco Prinsloo CEO +27 11 673 1171
Lewanne Carminati CFO
Nominated Adviser and Broker
Liberum Capital Limited +44 (0) 20 3100 2000
Richard Crawley / Scott Mathieson / Kane Collings
Communications
BlytheRay +44 (0) 20 7138 3205
Tim Blythe / Megan Ray / Rachael Brooks sylvania@BlytheRay.com (mailto:sylvania@BlytheRay.com)
CORPORATE INFORMATION
Registered and postal address: Sylvania Platinum Limited
Clarendon House
2 Church Street
Hamilton HM 11
Bermuda
SA Operations postal address: PO Box 976
Florida Hills, 1716
South Africa
Sylvania Website: www.sylvaniaplatinum.com (http://www.sylvaniaplatinum.com)
About Sylvania Platinum Limited
Sylvania Platinum is a lower-cost producer of platinum group metals (PGM)
(platinum, palladium and rhodium) with operations located in South Africa. The
Sylvania Dump Operations (SDO) comprises six chrome beneficiation and PGM
processing plants focusing on the retreatment of PGM-rich chrome tailings
materials from mines in the Bushveld Igneous Complex. The SDO is the largest
PGM producer from chrome tailings re-treatment in the industry. The Group also
holds mining rights for PGM projects in the Northern Limb of the Bushveld
Complex.
For more information visit https://www.sylvaniaplatinum.com/
(https://www.sylvaniaplatinum.com/)
The information contained within this announcement is deemed by the Company to
constitute inside information for the purposes of Article 7 of Regulation (EU)
no.596/2014 as amended by the Market Abuse (Amendment) (EU Exit) Regulations
2019.
For the purposes of MAR and Article 2 of Commission Implementing Regulation
(EU) 2016/1055, this announcement is being made on behalf of the Company by
Jaco Prinsloo.
In accordance with the AIM Rules - Note for Mining and Oil & Gas
Companies, the information contained in this announcement has been reviewed
and signed off by Mr. Deon du Plessis, a qualified professional Geologist
(Pr.Sci.Nat. - 400050/05) and Fellow with the Geological Society of South
Africa (FGSSA - 963338), who has over 21 years' relevant experience within the
mining sector.
ANNEXURE
GLOSSARY OF TERMS - Results of Optimisation Studies for Northern Limb Mineral
Assets
The following definitions apply throughout the announcement:
MRE Mineral Resource Estimate - The process of subjecting known geological
evidence and knowledge required for the estimation of Mineral Resources, and
must include sampling data of a type, and at spacings, appropriate to the
geological, chemical, physical, and mineralogical complexity of the mineral
occurrence, for all classifications of Inferred, Indicated and Measured
Mineral Resources. A Mineral Resource cannot be estimated in the absence of
sampling information. Any adjustment made to the data for the purpose of
making the Mineral Resource estimate, for example by cutting or factoring
grades, should be clearly stated and described in the Public Report.
2E + Au Platinum, Palladium, and Gold
AISC All-in sustaining costs
Equivalent Ounce (Pt) Platinum Equivalent is quantity of a Metal having an economic value expressed
in ounces of Platinum and calculated by multiplying the quantity of the Metal
by an assumed price for that Metal and dividing the product by an assumed
price for Platinum, where such prices are determined using the Financial
Parameters.
Feasibility Study A comprehensive technical and economic study of the selected development
option for a mineral project that includes appropriately detailed assessments
of applicable Modifying Factors together with any other relevant operational
factors and detailed financial analysis that are necessary to demonstrate at
the time of reporting that extraction is reasonably justified (economically
mineable). The results of the study may reasonably serve as the basis for a
final decision by a proponent or financial institution to proceed with, or
finance, the development of the project. The confidence level of the study
will be higher than that of a Pre-Feasibility Study.
Geoloss A geological loss is an area or volume with no reef or ore developed due to
disruption by a geological feature. Geological loss is expressed as a
percentage by which a Mineral Resource is discounted and is based on the
geological condition of an orebody. There are two types termed "Known" and
"Unknown" losses. Mineral Resources are discounted by the total geological
losses. A Known geological loss is known/expected before mining takes place,
and is often indicated by remote sensing, or is the extension of a feature,
which has been exposed by current mining activities. These types of geological
features are in general occurrences of a linear type of features (examples
include faults, dykes, shear zones, and other localised features). Unknown
geological losses are generally associated with those features which have not
been determined by various geophysical techniques.
Indicated An 'Indicated Mineral Resource' is that part of a Mineral Resource for which
quantity, grade (or quality), densities, shape and physical characteristics
are estimated with sufficient confidence to allow the application of Modifying
Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is derived from
adequately detailed and reliable exploration, sampling and testing gathered
through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes, and is sufficient to assume geological and
grade (or quality) continuity between points of observation where data and
samples are gathered. An Indicated Mineral Resource has a lower level of
confidence than that applying to a Measured Mineral Resource and may only be
converted to a Probable Ore Reserve.
Inferred An 'Inferred Mineral Resource' is that part of a Mineral Resource for which
quantity and grade (or quality) are estimated on the basis of limited
geological evidence and sampling. Geological evidence is sufficient to imply
but not verify geological and grade (or quality) continuity. It is based on
exploration, sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill
holes. An Inferred Mineral Resource has a lower level of confidence than that
applying to an Indicated Mineral Resource and must not be converted to an Ore
Reserve. It is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with continued
exploration.
JORC Joint Ore Reserves Committee - The Australian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves ('the JORC Code') is a
professional code of practice that sets minimum standards for Public Reporting
of Exploration Results, Mineral Resources and Ore Reserves.
Measured A 'Measured Mineral Resource' is that part of a Mineral Resource for which
quantity, grade (or quality), densities, shape, and physical characteristics
are estimated with confidence sufficient to allow the application of Modifying
Factors to support detailed mine planning and final evaluation of the economic
viability of the deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill
holes, and is sufficient to confirm geological and grade (or quality)
continuity between points of observation where data and samples are gathered.
A Measured Mineral Resource has a higher level of confidence than that
applying to either an Indicated Mineral Resource or an Inferred Mineral
Resource. It may be converted to a Proven Ore Reserve or under certain
circumstances to a Probable Ore Reserve.
PGE-Ni-Cu Platinum Group Elements, Nickel and Copper
PtEq Platinum Equivalent is quantity of a Metal having an economic value expressed
in ounces of Platinum and calculated by multiplying the quantity of the Metal
by an assumed price for that Metal and dividing the product by an assumed
price for Platinum, where such prices are determined using the Financial
Parameters.
Pushbacks An area that can be mined in a single continuous operation as defined within
the Ultimate Pit.
Reef Stripping Waste to reef stripping ratio, refer to Stripping ratio definition below.
Resource Classification Defined as classes or categories as per the JORC Code (2012) in decreasing
confidence levels as Measured, Indicated and Inferred.
ROM Run of Mine
Scoping Study An order of magnitude technical and economic study of the potential viability
of Mineral Resources. It includes appropriate assessments of realistically
assumed Modifying Factors together with any other relevant operational factors
that are necessary to demonstrate at the time of reporting that progress to a
Pre-Feasibility Study can be reasonably justified.
Strip Ratio Refers to the amount of waste (or overburden) that must be removed to release
a given ore quantity.
T-Zone The T-Zone occurs within the Bushveld Complex's Main Zone just beneath the
contact of the overlaying Upper Zone and consists of numerous mineralised
layers with two potential economical PGE-Ni-Cu layers identified from top down
as the T1 Unit and T2 Unit, separated by the TZ-Middling unit. They are
composed mainly of anorthosites, leuco-gabbronorite through gabbronorite,
harzburgite, troctolite, and olivine gabbronorite.
(#_ftnref1) 1 Footnotes:
· To perform block model estimation, wireframes of the
mineralised T-Zone underlying the farm of La Pucella were un-faulted and
rotated to an approximated horizontal plane. The Mineral Resource constitutes
the T1-main and T2-main zones. The Mineral Resource is reported from a
orthogonal block model in its actual spatial position with no rotations or
translations. The orthogonal block model is fit-for-purpose to be subjected to
Whittle Pit Optimisation procedures.
· The numbers reported in this disclosure are before any
cut-off grade applied to the block model.
· The parent block size is set to X=2.5m ; Y=20m ; Z=5m.
There are however millions of subcells which resulted from the intricate steps
followed to produce the Mineral Resource. The subcells are retained at this
stage to honor the stratigraphic populations (T1_main vs T1_waste and T2_main
vs T2_waste) as well as the 3E classification. Block optimisation was done
without regarding Rh, Cu, or Ni classification since these metals are
downgraded to Inferred for the entire model.
· The surface elevation of the project area ranges from
~1,000 mamsl to ~1,005 mamsl. Blocks are filtered to include only those lying
at 800 mamsl and above to report the Mineral Resource at approximately 0 - 200
m below surface. No blocks deeper than 200 m below the surface are included in
the reported numbers, however, the mineralisation is known to extend beyond
this depth, and with later-stage additional drilling an underground Mineral
Resource could potentially be reported should the deposit satisfy the RPEEE
test.
· As per the guidelines set out by JORC an RPEEE test has
been performed on the La Pucella grade block model as part of the initial work
undertaken for the Scoping Study, which is based on an open-pit mining
configuration. The La Pucella grade block model has passed the RPEEE test
conducted by Earthlab in October 2022. The results of the test prove the
prospective economic viability of the project and substantiate the declaration
of its Mineral Resources to a depth of 200 m below surface.
· The current block model extends slightly beyond the
borders of the farm La Pucella. A detailed breakdown is only provided for
blocks within La Pucella and Nonnenwerth, which are inside the current Mining
Right.
· The average grades reported in this document are
calculated on the tonnage before applying geological losses. The 10% geoloss
discount factor is applied to the total tonnage without any specific location
affected, therefore not affecting the grade.
· Pt, Pd, and Au (3E) are the only elements for which
Measured and Indicated Resource categories are reported. Each element was
classified according to a scorecard, and then combined in the following ratio
based on potential revenue contribution:
o T1_main: Pt : Pd : Au - 0.25 : 0.58 : 0.17
o T2_main: Pt : Pd : Au - 0.22 : 0.63 : 0.15
· Although higher confidence classifications were achieved
for Rh, Cu, and Ni based on the estimation scorecard, Rh, Cu, and Ni were
downgraded to Inferred due to insufficient confidence in the analytical
results obtained by the laboratory. This could potentially be restored with
future re-assay work.
· Numbers are reported to three significant figures.
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