REG - Thor Mining PLC - Kapunda Copper Resources - ASX clarification <Origin Href="QuoteRef">THRL.L</Origin> - Part 4
22/02/2018 10:37
- Part 4: For the preceding part double click ID:nRSV6523Fc
The data spacing and the characteristics of the Kapunda mineralisation determined from reviewing historical drilling results, and visual inspections of the core are suitable for the defined Mineral Resource to be classified as 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 sampling of possible structures and the extent to which this is known, considering the deposit type. The orientation of the drilling is considered to be appropriate for the oxide copper and secondary copper sulphide mineralisation.
· If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. Drilling orientation is not deemed to have introduced any significant sampling bias.
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 techniques and data. Prior to acquiring the Kapunda Project from Maximus Resources Ltd (Maximus), 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.
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. No
information is available on checks and standards. Utah's KP series rotary
percussion drillholes were analysed at Labtech Pty Ltd. Midland W.A. using a
hot long perchloric acid digestion with AAS determination for copper No
information is available on checks and standards.
· For geophysical tools, spectrometers, handheld XRF instruments,
etc, the parameters used in determining the analysis including instrument make
and model, reading times, calibrations factors applied and their derivation,
etc.
Geophysical tools, spectrometers, handheld XRF instruments, etc. were not
available to earlier companies.Terramin utilised hand held XRF analyses to
validate copper assays from selected percussion holes stored at the South
Australian Drill Core Reference Library and as an aid to geological
interpretation. No geophysical tools were used by Terramin to estimate
published mineral or element percentages.
· Nature of quality control procedures adopted (eg standards,
blanks, duplicates, external laboratory checks) and whether acceptable levels
of accuracy (ie lack of bias) and precision have been established.
Minimal historical information is available on the use of standards, blanks or
duplicates. The use of check analyses were documented by Northland. Check
analyses were undertaken at their main laboratory, Amdel and cross lab checks
done at Robertson Research and McPhar Geophysics. Original assay reports from
Amdel show that at the time they ran a mix of standards and blanks every
fifteenth sample, although the results of these internal lab checks were not
documented.
Verification of sampling and assaying
· The verification of significant intersections by either
independent or alternative company personnel.
Utah's KD005 which returned from 45m, 27m @ 1.18% copper was resampled by
Copper Range in 2007. Copper Range's resampling returned from 45m, 27m @ 1.20%
copper. Utah's deep intercept of primary copper sulphide in KD011 returned
from 426m, 11m @ 2.00% copper was resampled by Terramin returned from 426m,
11m @ 1.89% copper and 0.1g/t gold. Terramin's samples were a quarter cut of
the remaining half core sample. (TZN ASX announcement - 1st Quarter Report,
29/4/2016) Other significant intersections from drill core have been visually
reviewed by Terramin and ECR staff. Terramin has also utilised a hand held XRF
to validate copper assays of percussion holes stored at the South Australian
Drill Core Reference Library.
· The use of twinned holes.
There were two sets of planned twin holes: KD001 twinned drillhole K015 and
KD0019 twinned drillholes KP046 and K076. There are a further 6 pairs of
drillholes that are close enough to be considered twins. As part of compiling
data for the Kapunda Mineral Resource estimate it was deemed necessary to be
comfortable with the wide variety of drilling and sampling methods used on the
Kapunda Project over a number of years.In order to look at the issue it was
decided to; · Compare summary statistics for the different drillhole
series.· Compare a selection of twined holes.· Compare poor recovery
core holes with good recovery drillholes · Compare rotary drilling with
diamond drilling within a specific, geologically constrained spatial area.·
The process entailed creating a 2m downhole composite set of drill assays
and splitting these into their component drill series types for statistical
analysis.Results;· The results in general show no significant bias due to
drilling type.· Twin holes Q-Q plots indicate there is little bias.·
There appears to be very little difference between holes with poor core
recovery versus those with good core recovery.· While there are some
individual difference between rotary and diamond holes, looking at a larger
sample they appear to give relatively consistent results.
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
Primary data was recorded on paper log sheets, photocopies of originals were
submitted as part of statutory reporting. These have subsequently been scanned
to PDF and made available online at South Australian Resources and Information
Gateway (SARIG)in the Resource and Energy Georeference Database. 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 (Stuart Metals) for their
1992 Kapunda Resource estimate. Where differences were found between the data
contained in the original company reports and the data provided by Stuart
Metals database, the original companies' values were used. The data was
entered into Excel spreadsheets before being imported into a Maxwell Geo
Services' DataShed and QAQCR which was used to validate the data viz;
overlapping intervals, excessive drillhole deviation, assay QAQC. Secondary
validation by Maptek's Vulcan software and visual validation was also
undertaken.
· Discuss any adjustment to assay data.
No adjustments are made to reported summary intersections. The Mineral
Resource estimate makes an allowance for core loss with lost intervals assumed
to have a zero grade.
Location of data points
· Accuracy and quality of surveys used to locate drill holes (collar
and down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation.
Mines Exploration established the original grid baseline parallel to main
strike of mineralization with grid north at 335 degrees magnetic. All
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 to
establish the degree of geological and grade continuity appropriate for the
Mineral Resource and Ore Reserve estimation procedure(s) and classifications
applied.
The data spacing and the characteristics of the Kapunda mineralisation
determined from reviewing historical drilling results, and visual inspections
of the core are suitable for the defined Mineral Resource to be classified as
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 sampling of
possible structures and the extent to which this is known, considering the
deposit type.
The orientation of the drilling is considered to be appropriate for the oxide
copper and secondary copper sulphide mineralisation.
· If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material.
Drilling orientation is not deemed to have introduced any significant sampling
bias.
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 techniques and
data.
Prior to acquiring the Kapunda Project from Maximus Resources Ltd (Maximus),
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
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The Kapunda Mineral Resource is located approximately 90 km north of Adelaide and sits within exploration license (EL) 5262 held by Terramin Exploration Pty Ltd (Terramin
Exploration). EL 5262 is currently in good standing and owned 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 reporting along with any known impediments to obtaining a licence to operate in the area. EL 5262 is currently in good standing. The majority of the project area falls within the Kapunda Mine historic site which is owned by the LightRegional 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 parties. Since the cessation of mining, Kapunda has been explored by several different government agencies and exploration companies including;SA Dept of Mines (1961-64)Mines
Exploration (Broken Hill South) (1964-69)Minefields Exploration (1970)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
holes45 Percussion holes Noranda Australia Ltd.56 percussion holes Northland Minerals Ltd.53 diamond holes369 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 holes1 Diamond core hole
Geology · Deposit type, geological setting and style of mineralisation. The Kapunda Mineral Resource is located in the Tindelpina Shale Member of the 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. Secondarysupergene 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 understanding of the exploration results including a tabulation of the following information for all Material drill holes:
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