REG - Thor Mining PLC - Kapunda Copper Resource <Origin Href="QuoteRef">THRL.L</Origin> - Part 2
12/02/2018 07:05
- Part 2: For the preceding part double click ID:nRSL5160Ea
Location of data points · Accuracy and quality of surveys used to locate drill Mines Exploration established the original grid baseline parallel to main
holes (collar and down-hole surveys), trenches, mine workings and other strike of mineralization with grid north at 335 degrees magnetic. All
locations used in Mineral Resource estimation. subsequent companies, except for Copper Range used this grid.
Initial survey control was by licensed surveyor using theodolite. Collars were
fixed by theodolite surveys and metal pin bench marks. Coordinate position
1000N 00E (collar of drillhole KV002).
The majority of drill collar locations were recorded in company reports and in
Stuart Metals digital database. A few remaining drillhole collar locations
were obtained from georeferenced maps. Originally drillhole collar RL's were
calculated relative to drillhole KV002 but Northland in 1972 had the site
resurveyed relative to the State Datum.
To allow for the incorporation of drillhole data from Copper Range an affine
transformation was used to convert the earlier drillhole coordinates to MGA
Zone 54 (GDA 94).
· Specification of the grid system used. The data is reported in grid system MGA Zone 54 (GDA94).
· Quality and adequacy of topographic control. In 1972 Northland Minerals contracted surveying consultants Alex & Symonds
Pty Ltd to survey the site and locate drill collars. The level datum used
throughout the grid and drillhole levelling is based upon a Lands Department
Bench Mark Number 6921.
A digital terrain model was created by Terramin from the survey's 528 survey
points collected across the deposit. Drillhole collar RL's not picked up
during this survey were then assigned a value from this surface.
With the exception of the historic workings, the area has low relief. The site
has a gentle slope to the south, over the 1,500m of strike length there is
just a maximum difference of 25m in collar RLs.
Data spacing and distribution · Data spacing for reporting of Exploration Results. Drillhole spacings and sample interval lengths are considered appropriate.
· Whether the data spacing and distribution is sufficient The data spacing and the characteristics of the Kapunda mineralisation
to establish the degree of geological and grade continuity appropriate for the determined from reviewing historical drilling results, and visual inspections
Mineral Resource and Ore Reserve estimation procedure(s) and classifications of the core are suitable for the defined Mineral Resource to be classified as
applied. Inferred for ISR.
However, the protocol for estimation and reporting of Mineral Resources for
exploitation using ISR has a number of additional steps compared to
conventional mining and processing. Before any portion of the Kapunda Mineral
Resource can be classified as Indicated or Measured pump testing and
hydrogeological modeling will be required.
· Whether sample compositing has been applied. Field sample compositing was not undertaken on any of the diamond or
percussion drill samples. Sample sizes are considered appropriate.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased The orientation of the drilling is considered to be appropriate for the oxide
sampling of possible structures and the extent to which this is known, copper and secondary copper sulphide mineralisation.
considering the deposit type.
· If the relationship between the drilling orientation Drilling orientation is not deemed to have introduced any significant sampling
and the orientation of key mineralised structures is considered to have bias.
introduced a sampling bias, this should be assessed and reported if material.
Sample security · The measures taken to ensure sample security. Chain of custody management was not documented.
Audits or reviews · The results of any audits or reviews of sampling Prior to acquiring the Kapunda Project from Maximus Resources Ltd (Maximus),
techniques and data. Terramin audited the Stuart Metals database against original reports and
viewed drill core at the South Australian Drill Core Reference Library.
Historical density techniques were considered inappropriate and discarded.
New measurements collected by TZN and ERC show that density had previously
been overcalled by over 10%.
All data was loaded into a DataShed database and validated. Mineralisation was
then visually checked and modelled using Maptek's Vulcan.
Re-assaying of drill core by Copper Range and Terramin has confirmed the
veracity of original sampling techniques and results.
External audits and review of modelling techniques and data has been
undertaken by Leon Faulkner from ECR.
Section 2: Reporting for Exploration Results
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including agreements or The Kapunda Mineral Resource is located approximately 90 km north of Adelaide
material issues with third parties such as joint ventures, partnerships, and sits within exploration license (EL) 5262 held by Terramin Exploration Pty
overriding royalties, native title interests, historical sites, wilderness or Ltd (Terramin Exploration). EL 5262 is currently in good standing and owned
national park and environmental settings. 100% by Terramin Exploration.
In August 2017 Terramin Exploration entered a joint venture agreement with ECR
(TZN ASX announcement - New Copper Joint Venture Development, 2/8/2017) who
will investigate the potential to extract the copper through low cost in-situ
recovery (ISR) from shallow oxide ores in and around the historic Kapunda Mine
area.
The majority of the Mineral Resource sits beneath the heritage listed Kapunda
Mine historic site which is owned by Light Regional Council. The southern
extent of the Mineral Resource sits beneath freehold farmland.
With the Kapunda Mine historic site heritage listed and the encroachment of
housing within a few hundred metres of the site there is no likelihood of
extracting copper by traditional open cut or underground mining techniques.
ISR is seen as the only potential method that could be permitted to extract
copper.
The site consists of an unrehabiliated historic mining site covered by
numerous old workings including open cut pits, shafts and waste dumps. There
are also remnants of Australia's first heap leach trials which were undertaken
in the 1950's. Vegetation regrowth has been minimal because of the high copper
content of the soils and a large portion of the historic workings fenced off
for the safety of the general public.
· The security of the tenure held at the time of EL 5262 is currently in good standing. The majority of the project area falls
reporting along with any known impediments to obtaining a licence to operate within the Kapunda Mine historic site which is owned by the Light Regional
in the area. Council and as such the land is classified as exempt land under the South
Australian Mining Act 1971. This will require a waiver of exemption to be
signed before any exploration or mining activities can take place.
Clearance from the Department of Environment, Water and Natural Resources
(DEWNR) will be required before activities can be conducted within the
Heritage Site.
Proximity to the Kapunda township means that significant community engagement
will need to be carried out before preliminary testing or mining operations
can be conducted.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other Since the cessation of mining, Kapunda has been explored by several different
parties. government agencies and exploration companies including;
SA Dept of Mines (1961-64)
Mines Exploration (Broken Hill South) (1964-69)
Minefields Exploration (1970)
drilled with a Longyear 38 by Boring Enterprises Pty Ltd and were primarily NQ core size with some intervals of BQ and HQ. Core was orientated using a contractor
constructed device. Copper Range's SK series holes were drilled using reverse circulation.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and results assessed. Core recovery was measured for each drill run between the driller's marker blocks. KV series percussion holes had chip sample bags were weighed to compare with expected
mass to assess recovery/loss. K series sample recoveries were visually estimated and recorded for each interval. No historic information is available for KP series holes.
· Measures taken to maximise sample recovery and ensure representative nature of the samples. The historic records describe in length (as detailed above) the efforts Noranda (1970)
Northern Minerals Syndicate (1970-72)
Northland Minerals (1971-85) (including
Utah Development Co. (1974-78)
Aztec Minerals Ltd (1987-88)
Shell company (1995)
Stuart Metals (1995-99)
Minefinders Pty Ltd (1999-2000)
Flinders Mines Ltd (2003-08)
Copper Range (2007 - 09)
Maximus (2008-2013)
Terramin (2013-present)
Work carried out by these groups has included geophysics, mapping, rock chip
sampling, trenching, percussion and diamond drilling.
Metallurgical and economic studies on the feasibility of restarting the
Kapunda mine have been undertaken on at least 2 occasions.
The largest phases of exploration occurred during the mid-1960's through to
the mid 1970's with several groups undertaking detailed drilling programs.
A brief summary of the larger drilling programs is provided below. Detail is
available in the open file envelopes on the South Australian government's
SARIG website.
Mines Exploration Pty. Ltd.
3 Diamond holes
45 Percussion holes
Noranda Australia Ltd.
56 percussion holes
Northland Minerals Ltd.
53 diamond holes
369 Auger holes (not used in the Mineral Resource estimate)
11 percussion holes
Utah Development Co.
18 diamond core holes
66 non-core holes
Copper Range
4 RC holes
1 Diamond core hole
Geology · Deposit type, geological setting and style of The Kapunda Mineral Resource is located in the Tindelpina Shale Member of the
mineralisation. Tapley Hill Formation.
It is a structurally controlled copper deposit with the orebody sitting on the
western limb of an antiform with primary copper mineralisation consisting of
an en echelon series of lodes striking at ~020 degrees magnetic and dipping
~70 degrees west.
Secondary supergene enrichment has taken place leading to the development of a
significant copper enriched zone with kaolinized metasediments.
Mineral species targeted by this Kapunda Mineral Resource include copper
oxides (azurite, malachite and cuprite) and secondary copper sulphide minerals
(chalcocite and covellite) within 100m of surface.
Drill hole Information · A summary of all information material to the No new drillhole data or other exploration results are reported. All
understanding of the exploration results including a tabulation of the information has been compiled from "open file envelopes" available for
following information for all Material drill holes: download through the South Australian Government's SARIG website-
http://minerals.statedevelopment.sa.gov.au/
(http://minerals.statedevelopment.sa.gov.au/)
· easting and northing of the drill hole collar
· elevation or RL (Reduced Level - elevation above sea
level in metres) of the drill hole collar
· dip and azimuth of the hole
· down hole length and interception depth
· hole length.
· If the exclusion of this information is justified on No new exploration results have been reported, all information is publically
the basis that the information is not Material and this exclusion does not available from SARIG.
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 No new exploration results have been reported, all information is publically
techniques, maximum and/or minimum grade truncations (eg cutting of high available from SARIG.
grades) and cut-off grades are usually Material and should be stated.
· Where aggregate intercepts incorporate short lengths of high
grade results and 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 No metal equivalents are reported.
should be clearly stated.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting No new exploration results have been reported, all information is publically
of Exploration Results. available from SARIG.
· If the geometry of the mineralisation with respect to the drill
hole angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported,
there should be a clear statement to this effect (eg 'down hole length, true
width not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of Figures 2 and 3 in main text.
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not No new exploration results have been reported, all information is publically
practicable, representative reporting of both low and high grades and/or available from SARIG.
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 including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of The overall copper grade of the Mineral Resource estimate fits within the
treatment; metallurgical test results; bulk density, groundwater, geotechnical accepted parameters for copper ISR operations.
and rock characteristics; potential deleterious or contaminating substances.
Initial hydrogeological investigations show that the en echelon and conjugate
fracture systems provide transmissivity values within the range needed for
successful ISR operations.
The copper mineral species targeted are considered to be potentially
recoverable by ISR but laboratory testing needed to confirm this. The majority
of the Mineral Resource sits below the current water table.
Laboratory testing of samples with different lixiviant systems is required to
assess the recoverability of the ore and determine the mineral species that
will exist in the pregnant solutions.
Further work · The nature and scale of planned further work (eg tests for Following approvals from the Light Regional Council and regulators, a
lateral extensions or depth extensions or large-scale step-out drilling). groundwater sample from the mineralized lode system will be collected and be
used in the laboratory testing of lixiviant systems on core samples to be
undertaken by CSIRO.
Further hydrogeological investigations including aquifer pump testing and
beneficial use studies will be undertaken.
Understanding the hydrogeology of the area is critical to the Kapunda Project.
Consequently, detailed hydrogeological investigations will be undertaken to
accurately model groundwater parameters. These models will allow ECR to
undertake design work to ensure that there is no compromising existing users'
that went into maximizing core recovery.
· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Statistical analysis indicates no significant sample bias caused by preferential loss/gain of course/fine material. The KV series rotary holes which were sampled at 10 foot intervals yielded broader and more uniform grade within the mineralized zones. Average copper grade of the KV holes above the water table was 0.246% versus 0.253% below the water table.
Logging · Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. All drillholes have been geologically logged for recovery, lithology, mineralisation and colour with abundant petrographical and petrological studies to adequately
support the Mineral Resource estimation, mining studies and metallurgical studies. KV series holes were logged in their - entirety for recovery, and colour. Four
petrological samples were also described. KP1, 2 and 3 holes were logged in their entirety for lithology, mineralisation, colour and texture. K series holes were logged
for recovery, rock type, mineralisation and a geological description which included, colour, texture and grainsize. A total of 98 petrographic samples and 70 petrological
samples were described. KD series holes were photographed and were geologically logged for rock type, structure, mineralogy and physical character. KP series holes were
logged in their - entirety for rock type, mineralogy and physical characteristics. Geotechnical logging has been undertaken by Environmental Copper Recovery Pty Ltd (ECR)
water quality or ability to access water.
Groundwater Science has been engaged by ECR to carry out further groundwater
studies.
· Diagrams clearly highlighting the areas of possible extensions, Additional drilling is required to better define and potentially extend the
including the main geological interpretations and future drilling areas, southern limits of the Kapunda mineralisation, Figure 2.
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 The 2018 Kapunda Mineral Resource estimate is based on drilling largely
example, transcription or keying errors, between its initial collection and undertaken during the 1960's and 1970's and minor drilling undertaken in 2008.
its use for Mineral Resource estimation purposes.
Data for the Mineral Resource estimate came from scanned copies of reports
that cover all drilling periods available on "South Australian Resources
Information Gateway" (SARIG).
Terramin was also able to obtain digital data sets of the drill data from
Copper Range Ltd and the digital data set used by Stuart Metals NL for their
1992 Resource Estimate.
· Data validation procedures used. Drillhole data was extracted from the original reports by Terramin and crossed
checked with the digital datasets from Stuart Metals and Copper Range.
Where differences were found between the data contained in the original
company reports and the provided Stuart Metals database, the original
companies' values were used.
The data was then imported into a
Maxwell Geo Services' DataShed and QAQCR were used to validate the data viz;
overlapping intervals, excessive drillhole deviation, assay QAQC. Secondary
validation by Maptek's Vulcan software and visual validation.
Site visits · Comment on any site visits undertaken by the Competent Person and The Competent Person has undertaken several site visits to the Kapunda
the outcome of those visits. project. These visits have verified that the dimensions of the physical site
correspond with dimensions implied by the data sets. Copper oxide in the form
of malachite is present in the mullock piles and copper efflorescence visible
on many of the historic pit faces. Evidence of previous mining operations is
visible with numerous open cuts, shafts and waste dumps still clearly visible.
Visits have also been undertaken at the South Australian Drill Core Reference
Library where over 100 Kapunda drillholes are stored.
· If no site visits have been undertaken indicate why this is the Site visits have been undertaken.
case.
Geological interpretation · Confidence in (or conversely, the uncertainty of) the geological The extensive surface and underground mining of the Kapunda lodes combined
interpretation of the mineral deposit. with the large amount of diamond drilling history of the Kapunda projects
implies confidence in the current geological interpretation There are no
alternative geological models of the secondary copper mineralisation (copper
oxides and secondary copper sulphides).
The vertical extent of secondary copper mineralisation modelled by Terramin
using drillhole data is broadly comparable to the line "approximate lower
limit of secondary enrichment" mapped out on a longitudinal section produced
by the South Australian Mines Department in 1942 (Plan N2788).
· Nature of the data used and of any assumptions made. The 2018 Kapunda Resource utilized data from 78 diamond and 109 percussion
holes with a combined meterage of 22,712.8m.
Original lab assays were used.
Resampling and lab analysis of selected diamond core intervals and xrf
analysis of drill chips from percussion holes stored at the South Australian
Drill Core Reference Library by both Copper Range Pty and Terramin confirmed
the appropriateness and accuracy of historic assay methods.
All original density measurements were considered inappropriate as they did
not make allowances for porosity of the rock. ECR and Terramin collected 202
new density measurements from 19 drillholes using a modified Archimedes
method. Historically the assumed density was between 2.0 t/m(3) (ACC and
Stuart Minerals) and 2.4 t/m(3) (BHS and Northland) whereas the average
calculated density of the 2018 Mineral Resource estimate is only 1.84 t/m(3).
· The effect, if any, of alternative interpretations on Mineral No alternative interpretations for the secondary copper enrichment have been
Resource estimation. put forward for serious consideration. Alternative geological interpretations
may be developed with further drilling but in the Competent Person's opinion
they would not significantly affect the global resource estimate, but could
affect local estimates.
· The use of geology in guiding and controlling Mineral Resource The 2018 Mineral Resource estimate was focused on defining the extent and
estimation. nature of secondary (oxide/supergene) copper mineralisation. Important
boundaries modelled were the top and base of copper oxides, top and base of
secondary sulphides and top of primary copper sulphides.
The lower limit of (significant) weathering corresponds with the base of
secondary copper mineralisation.
Detailed geological control has not been attempted at this stage. Primary
copper mineralisation was bounded on the east by the Mine Fault, which dips
65°E. The old workings immediately west of this structure occur principally
in sets of en echelon lodes comprising of quartz-sulphide filled fractures of
which 28 were worked at an average width of 45cm.
· The factors affecting continuity both of grade and geology. The main controlling features of the secondary copper are seen to be proximity
to primary mineralisation, the water table and the partial replacement of
pyritic horizons by copper within the supergene zone and depth of weathering.
Dimensions · The extent and variability of the Mineral Resource expressed as The Mineral Resource has a strike length of 1700m, a plan width of 500m and
length (along strike or otherwise), plan width, and depth below surface to the has been limited to a maximum depth of 100m. Copper mineralisation was
upper and lower limits of the Mineral Resource. historically mined from surface and copper efflorescence is visible on many of
the pit faces.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) Wireframes modelled included; top and base of copper oxide mineralisation, top
applied and key assumptions, including treatment of extreme grade values, and base of secondary copper sulphides and top of primary copper sulphides.
domaining, interpolation parameters and maximum distance of extrapolation from
data points. If a computer assisted estimation method was chosen include a
description of computer software and parameters used.
Compositing of drillhole samples was completed at 2m (downhole) intervals,
with composites flagged to identify the copper's mineralogy.
The 2m composites were used for statistical analysis and continuity modeling.
Variogram models for copper were developed using Snowden's Supervisor
software.
Ordinary kriging estimation technique was used for estimation of copper grade.
Estimation of blocks was limited to a maximum of three composites per hole
from a maximum of three drillholes.
Maximum distance of extrapolation was limited to 100m.
There are no "extreme grade values" as all copper grades of the 2m composites
were below the average historic production grade of 19% copper. The maximum
assay from the oxide and secondary sulphide portions of the Resource estimate
were respectively 6.3% and 17.7% copper.
All geological modelling, block model construction, grade interpolation and
reporting were completed using Maptek's Vulcan software.
· The availability of check estimates, previous estimates and/or Previous Mineral Resource estimates, calculated for mining by open cut are;
mine production records and whether the Mineral Resource estimate takes
appropriate account of such data. · BHS (1969) - 5.5Mt @ 0.74% copper for 41,000t of contained metal.
· Northland (1978) - 6.3Mt @ 1.50% copper for 94,000t of contained
metal.
· ACC (1989) - 7.2 Mt @ 0.83% copper for 60,000 tonnes of
contained metal
- More to follow, for following part double click ID:nRSL5160Ec geologists on drill core stored at the South Australian Drill Core Reference Library.
· Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. Logging is qualitative based on visual field estimates. Qualitative code logging was conducted for lithology, alteration, veining, tone and colour. Fifteen holes stored at the South Australian Drill Core Reference Library have been scanned by Hylogger. The HyLogger core scanner is a rapid spectroscopic imaging system developed by CSIRO's Mineral Mapping Technologies Group.The HyLogger uses visible and infrared spectroscopy (wavelength range 300-2500nm and 6000-14500nm), and digital imaging, to characterise and identify dominant mineral species on core, chips and pulps, at spatial resolutions of ~1cm (spectral data) and ~0.1mm (image data).
· The total length and percentage of the relevant intersections logged. Entire holes are logged in all instances.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core taken. Core from diamond drilling programs was either split manually or sawn, with half core sent to lab for assay and half core retained. Sample intervals were defined by the
Logging Geologist along geological boundaries.
· If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. KV series rotary drillholes were sampled at 10 foot intervals down to water table using air blast and cyclone. Below the water table drill cuttings were extracted by pumping and wet splitting of the sludge to 1/16th fraction. This fraction was collected in calico bags and air dried. The dried 1/16th fraction was weighed and further dry split with a Symons splitter to a final (4 pound) sample. Below the water table and before commencing the next sampling run the hole was carefully flushed, once the sampling run completed the hole was carefully flushed again before the next drilling run. KP series percussion holes were sampled at 2m intervals using a mechanical rotary splitter to homogenize the sample from which representative split was obtained. For percussion drilling, hammer size started at 150mm and was reduced to 130mm as hole depth increased. (Env02705 page 549).
· For all sample types, the nature, quality and appropriateness of the sample preparation technique. Documented sample preparation techniques followed best practice of the time and are considered adequate.
· Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. No additional historical information is available on quality control procedures to that detailed above.
· Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Techniques followed best practice of the time including regular cleaning of the cyclones and splitters and careful flushing of holes when water encountered. Comparison of results of twinned holes indicates sampling is representative.
· Whether sample sizes are appropriate to the grain size of the material being sampled. Sample sizes are considered appropriate.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. Assaying was carried out at certified analytical laboratories and the techniques are considered appropriate, although little historical information is available on checks
and standards. Mines Exploration KP holes and Northland's K series were analysed by Amdel Analytical Services (Amdel) for copper using their F1 scheme, an A.A.S. method.
Amdel claimed a +/-5% accuracy. KD series drillholes were assayed by Labtech Pty. Ltd. - 101B for copper using a hot, long perchloric acid digestion, AAS determination.
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