Wrap Text
Prieska Project total Mineral Resource increases to 29.4 million tonnes
Orion Minerals Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1
Prieska Project total Mineral Resource increases to 29.4 million tonnes containing
1.13 million tonnes Zn and 0.36 million tonnes Cu
- Maiden Mineral Resource of 5.2 Mt containing 253,000 tonnes Zn and 67,000 tonnes Cu
established for the Vardocube Prospecting Right.
- The Mineral Resource for Vardocube is for the southern strike extension of the Prieska Zinc-
Copper VMS massive sulphide deposit located on the recently granted Vardocube
Prospecting Right.
- The combined total Mineral Resource for the Prieska Zinc-Copper Project increases to 29.4 Mt
containing 1,126,000 tonnes Zn at 3.8% Zn and 365,000 tonnes Cu at 1.2% Cu.
- The massive sulphide target remains open on dip and strike on both prospecting rights.
- Infill and extension drilling on the Vardocube Prospecting Right is planned to begin shortly.
Orion Minerals Limited (ASX/JSE: ORN) (Orion or Company) is pleased to announce the addition of a
maiden Mineral Resource for Vardocube (Pty) Ltd (70% Orion, 30% BEE) (Vardocube) which holds the
southern extension of the Prieska Zinc-Copper Project (Prieska Project) (refer ASX release 8 February
2018). The Mineral Resource is classified and reported in compliance with the JORC Code (2012), see
Tables 1 to 3. The Resource is based on drilling data available as at 31 December 2017 (supporting
information included in Appendix 2). Further drilling is ongoing with the objective of achieving an
upgrade in the confidence classification of a substantial portion of the Mineral Resource and to test
the currently open extensions of the deposit.
“Figures" referred to throughout this announcement can be viewed on the pdf version of the
announcement, available on the Company's website, www.orionminerals.com.au.
Inferred Mineral Resource for Vardocube (Pty) Ltd – Prieska Zn–Cu Deposit Deep Sulphide
Mineral Resource Category Zn Cu
Tonnes Metal Tonnes Grade (%) Metal Tonnes
Inferred 5,200,000 253,000 4.9 67,000
Notes:
The Mineral Resource takes into account mining depletion
All rock tonnages are rounded to hundreds of thousands which may introduce rounding errors in totals
Reported at 0% cut-off within a wireframe volume clipped on a cut-off of (Zn% + (Cu% X2) > 4%
Orion’s Managing Director and CEO, Errol Smart, commented:
“The addition of the Vardocube Prospecting Right has included an important higher-grade extension
to the Prieska Deep Sulphide deposit. We are confident that the application of the exploration
techniques that were successful in extending the northern end of the deposit on Repli will again
deliver significant extensions on this southern strike extension, which is also open on dip and strike.”
The Vardocube area is geologically continuous with the Repli area (Figures 1 and 2) and both were
located within a single mining right at the time when drilling was conducted by previous mine
operators, Anglovaal, using the same drilling, sampling and assaying practice across the deposit.
Orion conducted extensive twin and infill drilling on the Repli area and up to the Vardocube
Prospecting Right boundary during 2017 to confirm and validate the historic Anglovaal drilling data
(refer ASX release 8 February 2018).
Cut
off
(Zn%+
(2 x Tonnes Zn Cu Ag Au
Cu%)) Metal Grade Metal Grade Metal Grade Metal Grade
(%) Tonnes (%) Tonnes (%) Ounces (g/t) Ounces (g/t)
0 5,200,000 253,000 4.9 67,000 1.3 1,627,000 9.7 35,000 0.2
2 5,200,000 253,000 4.9 67,000 1.3 1,626,000 9.7 35,000 0.2
4 5,000,000 248,000 5.0 65,000 1.3 1,554,000 9.7 34,000 0.2
6 3,800,000 211,000 5.5 54,000 1.4 1,205,000 9.8 26,000 0.2
Cut-
off Zn Cu Total Zn (equivalent)
(Cal Tonnes Metal Grade Metal Grade Cu = Zn(eq) Metal Grade
c %)* Tonnes (%) Tonnes (%) (%) Tonnes (%)
0 5,200,000 253,000 4.9 67,000 1.3 3.0 408,000 7.9
2 5,200,000 253,000 4.9 67,000 1.3 3.0 408,000 7.9
4 5,000,000 248,000 5.0 65,000 1.3 3.0 400,000 8.0
6 3,800,000 211,000 5.5 54,000 1.4 3.2 336,000 8.8
* Note: Cut-off based on calculated (Zn% + (2 X Cu%))
Summary Table for Zinc Equivalent Calculations
Parameter Units Zinc Copper Comments
Copper selling price USD/t 3 238 6 725 Kitco.com Spot 6 April 2018
Exchange rate USD:ZAR USD:ZAR 12,0 12,0 Kitco.com Spot 6 April 2018
Metal selling price ZAR/t 38 520 80 002 Calculated
Metal ecovery - Hypogene material % 85% 85% Historical performance and recent testworks
Metal in conc sales costs % 18% 8% Concentrate traders' estimate
State Royalty % 0,49% 0,49% Calculated
Effective Revenue per t of metal ZAR/t 26 558 62 241 Calculated
Copper Equivalent % 1,00% 0,43%
Zinc Equivalent % 2,34% 1,00%
Notes
*Copper and Zinc Sales Costs include all concentrate transport, metal treatment and refining charges, and the benchmark discount to spot prices
paid by smelters, all expressed as an aggregate percentage of the contained metal value at prevailing spot prices.
Possible by-product credits for Au, Ag and Pb are uncertain, subject to negotiation and are excluded from this metal equivalent estimate.
Global Mineral Resource For Prieska Project - Repli Trading No 27 (Pty) Ltd & Vardocube (Pty) Ltd
Zn Cu Ag Au
Classification Tonnes Metal Tonnes Grade(%) Metal Tonnes Grade(%) Metal Ounces Grade(g/t) Metal Ounces Grade(g/t)
Deep Sulphide Repli* Inferred 22,600,000 839,00 3.7 266,000 1.2 6,904,000 9.5 153,000 0.2
Deep Suplhide Vardocube Inferred 5,200,000 253,000 4.9 67,000 1.3 1,627,000 9.7 35,000 0.2
+105 Supergene Repli* Indicated 1,200,000 32,000 2.6 30,000 2.4 348,000 8.7 9,000 0.2
+105 Oxide Repli* Inferred 300,000 2,000 0.9 2,000 0.6 17,000 1.8 1,000 0.1
Total Global 29,400,000 1,126,000 3.8 365,000 1.2 8,896,000 9.4 198,000 0.2
In compliance with ASX Listing Rule 5.8.1, the following sections present a summary of all information
material to understanding the reported Mineral Resource estimates:
Geology & Mineralisation
The Prieska Zn-Cu deposit is a Volcanogenic Massive Sulphide (VMS) deposit which is situated in the
southernmost exposures of the north-northwest trending Kakamas Terrain, which forms part of the
Mid-Proterozoic Namaqualand Metamorphic Complex. The deposit is hosted by the Copperton
Formation of the Areachap Group.
The structural sequence at the mine consists of a footwall Smouspan Gneiss Member, Prieska Copper
Mines Assemblage, which hosts the sulphide mineralisation, and the hangingwall Vogelstruisbult
Gneiss Member.
The Deep Sulphide mineralisation is the depth extension of the strata-bound, stratiform VMS Prieska
Zn-Cu deposit. The historically mined section of the deposit is confined to a tabular, stratabound
horizon in the northern limb of a refolded recumbent synform, the axis of which plunges at
approximately 5° to the south-east. The Deep Sulphide Target area is located below the historical
mined area, comprises the steep down dip continuity ("steep limb and hinge zone”), from where it
upturns to its subsequent open synformal structure ("trough zone"). The Vardocube Mineral Resource
is located in this southeasterly position and is geologically continuous with the mineralisation
previously reported for the Repli Mineral Resource.
Drilling Techniques
The drilling techniques used in the historic Anglovaal drilling on which the Mineral Resource estimate
is based are surface and underground diamond drilling; however, core size and other technical
specifications for the drilling are unknown.
Sampling & Sub-Sampling Techniques
For diamond drilling carried out by Anglovaal between 1968 and 1984, on which the Mineral
Resource estimate is based, there is limited information available on sampling and sub-sampling
techniques. However, with exploration and resource management being carried out under the
supervision of renown resource estimation expert Dr Danie Krige of Anglovaal, it is considered by the
Competent Person that there would be procedures in place to the industry best practice standard
at that time. This is based on the Competent Persons knowledge of exploration carried out by
Anglovaal and discussions with personnel employed by Anglovaal.
Sample Analysis Method
Samples from historical surface drilling samples were analysed at Anglovaal Research Laboratory at
Rand Leases Mine and samples from underground drilling at the Prieska Mine laboratory.
Estimation Methodology
The classified and reported Vardocube Mineral Resource is based on historic drilling data available
as at 31 December 2017 corresponding to 24 drill holes for 11,516m located on Vardocube.
Mineralised zones were delineated for Mineral Resource estimation using a (Zn% + (2 x Cu%)) > 4%
cut off value to create a wireframe model with estimation only selecting samples within the
containing wireframe.
Interpolation of the composite data was used to estimate the block grades using Ordinary Kriging for
local block estimation supplemented by zonal estimation.
The same parameters were used for both the Repli Mineral Resources reported 8 February 2018 (refer
ASX release 8 February 2018) and the Vardocube Mineral Resource.
The Mineral Resource was estimated as a single entity and then reported by prospecting right area.
This Mineral Resource was for that area lying within the Vardocube Prospecting Right, corresponding
to a strike length of 600m. It has a horizontal width of between 2m and 40m, with a down dip extent
of 1,100m below the shaft collar. The true thickness of the mineralisation varies from 1.5m to 25m with
an average of 6m.
The position of the prospecting right boundary was imported into Datamine TM and used to delineate
the Vardocube Prospecting Right, within the confining wireframe for the deposit modelled by Orion
geologists on a 4% Zn equivalent calculated as follows: Zn_eq = Zn% + (2 x Cu%).
Bulk densities (t/m3) were determined on the adjacent area using the water displacement method.
The entire sample (normally 1m length) was measured. Bulk density estimates were produced using
Ordinary Kriging in areas of close spaced sampling. A second pass with longer search radii was
utilised and the remaining blocks were populated using grid filling. The results were also used for the
estimation of the Mineral Resource from the Vardocube historic drilling results.
Resource Classification
The Deep Sulphide Resource is classified at an Inferred level of confidence.
The Resource classification has been carried out in accordance with the JORC Code (2012). The
grade and densities are estimated on the basis of limited geological evidence and sampling.
Geological evidence has been derived from sampling gathered through appropriate techniques
and is sufficient to imply but not verify geological and grade continuity between data points.
In the Competent Person's view, it is a realistic inventory of the mineralisation which, after preliminary
evaluation of technical, economic and development conditions, might, in whole or in part, become
economically extractable. In the Competent Person's opinion, it is more likely than not that there are
reasonable prospects for eventual economic extraction of the Vardocube Deep Sulphide deposit.
Portions of the deposit that do not have reasonable prospects for eventual economic extraction are
not included in the Mineral Resource.
In classifying the Resource, the Competent Person has regarded several aspects that affect resource
confidence:
- uncertainty associated with the definition of the mineralised domain and therefore the
volume estimate.
- there is more than one drilling and sampling program, and the historical Anglovaal data has
a lack of available supporting documentation.
- the estimated Mineral Resource is constrained between a historical stoped area and a
densely drilled area without extrapolation.
Metallurgy
Preliminary metallurgical test work on the sulphide mineralisation revealed good concentrate
recoveries, matching mine records for treatment of metallurgically identical ore. In the Competent
Person’s opinion, this is sufficient to determine that a reasonable expectation of good metallurgical
recoveries may be expected and supports additional metallurgical test work planned as part of a
Bankable Feasibility Study and is in progress.
Cut-off Grades & Mining Methods
The deep sulphide mineralisation is located between 900m and 1,200m below surface and has
geometries favouring bulk mechanised underground mining, similar to that used in many deposits
worldwide. Open stoping with intermittent support pillars may be applicable in steep dipping areas,
while the use of active support such as back filling is likely required in the shallow dipping portions.
Preliminary studies have indicated that a lower cut-off for content with (Zn + (2 x Cu)) >4% is a
reasonable cut-off to apply to wireframing for Resource estimation. The estimated blocks within this
wireframe are found to contain an immaterial number of blocks below the grade of (Zn + (2 x Cu))
<4% and are thus reported at zero cut-off.
Future Work
Importantly, examination of the drill data and geological interpretation reveals that the Vardocube
Mineral Resource remains open on dip and strike (Figure 3). Infill and step out drilling together with
the use of downhole geophysics, as was used with great success on the Repli portion of the deposit
to extend the Mineral Resource, is expected to allow expansion of the Mineral Resource on
Vardocube and an upgrade in classification in the near term.
Errol Smart
Managing Director and CEO
9 April 2018
ENQUIRIES
Investors JSE Sponsor
Errol Smart – Managing Director & CEO Rick Irving
Denis Waddell – Chairman Merchantec Capital
T: +61 (0) 3 8080 7170 T: +27 (0) 11 325 6363
E: info@orionminerals.com.au E: rick@merchantec.co.za
Media
Michael Vaughan Barnaby Hayward
Fivemark Partners, Australia Tavistock, UK
T: +61 (0) 422 602 720 T: +44 (0) 787 955 1355
E: michael.vaughan@fivemark.com.au E: orion@tavistock.co.uk
Suite 617, 530 Little Collins Street
Melbourne, VIC, 3000
ASX Listing Rule Compliance Requirement
The Company is not aware of any new information or data that materially affects the information included in
the market announcements of 12 December 2017 and 8 February 2018 referred to in this announcement. With
regards to the Mineral Resource, first reported on 8 February 2018, the Company confirms that all material
assumptions and technical parameters underpinning the estimates continue to apply and have not materially
changed.
Disclaimer
This release may include forward-looking statements. Such forward-looking statements may include, among
other things, statements regarding targets, estimates and assumptions in respect of metal production and prices,
operating costs and results, capital expenditures, mineral reserves and mineral resources and anticipated
grades and recovery rates, and are or may be based on assumptions and estimates related to future technical,
economic, market, political, social and other conditions. These forward-looking statements are based on
management’s expectations and beliefs concerning future events. Forward-looking statements inherently
involve subjective judgement and analysis and are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Orion. Actual results and developments may vary materially from those
expressed in this release. Given these uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. Orion makes no undertaking to subsequently update or revise the forward-looking
statements made in this release to reflect events or circumstances after the date of this release. All information
in respect of Exploration Results and other technical information should be read in conjunction with Competent
Person Statements in this release. To the maximum extent permitted by law, Orion and any of its related bodies
corporate and affiliates and their officers, employees, agents, associates and advisers:
- disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any
change in expectations or assumptions;
- do not make any representation or warranty, express or implied, as to the accuracy, reliability or
completeness of the information in this release, or likelihood of fulfilment of any forward-looking statement
or any event or results expressed or implied in any forward-looking statement; and
- disclaim all responsibility and liability for these forward-looking statements (including, without limitation,
liability for negligence).
Appendix 1: The following tables are provided to ensure compliance with the JORC Code (2012) requirements for the reporting of Exploration Results and Mineral
Resources for the Vardocube Deep Sulphide Target.
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques - Nature and quality of sampling (e.g. cut channels, random chips, or - Drilling and sampling by Anglovaal Ltd (also known as the Anglovaal
specific specialised industry standard measurement tools appropriate Group, (Anglovaal)) has been undertaken during two distinct periods
to the minerals under investigation, such as down hole gamma sondes, since the discovery of mineralisation. These are pre-mine exploration
or handheld XRF instruments, etc.). These examples should not be (1968-1971) and during mine operations (1972-1984) drill holes ("V", "D",
taken as limiting the broad meaning of sampling. and "F" prefixed holes).
- Include reference to measures taken to ensure sample representivity
and the appropriate calibration of any measurement tools or systems Anglovaal:
used.
- Aspects of the determination of mineralisation that are Material to the - For diamond drilling carried out by Anglovaal between 1968 and 1984,
Public Report. there is limited information available on sampling techniques for core.
- In cases where ‘industry standard’ work has been done this would be However, with exploration and resource management being carried out
relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 under the supervision of Anglovaal, it is considered by the Competent
m samples from which 3 kg was pulverised to produce a 30 g charge Person that there would be procedures in place to the industry best
for fire assay’). In other cases more explanation may be required, such practice standard at that time. This is based on the Competent Persons
as where there is coarse gold that has inherent sampling problems. knowledge of exploration carried out by Anglovaal and discussions with
Unusual commodities or mineralisation types (e.g. submarine nodules) personnel employed by Anglovaal.
may warrant disclosure of detailed information. - The exploration and resource management were under the professional
supervision of Dr Danie Krige an internationally recognised expert of the
time who published peer reviewed papers based on the sampling data.
- The sampling was successful in defining a resource estimate which was
used as the basis of successful mine development and operation over a
20-year period.
- Drilling of the original surface exploration holes was carried out 200 –
250m line spacing. Underground exploration holes were not drilled on a
regular spacing.
- Surface drill exploration samples were all sent to Anglovaal Research
Laboratory at Rand Leases Mine, and underground drill samples to the
mine laboratory for analyses.
- No records on the sampling methodology.
- Although no formal QC samples were inserted at the time by the
geologists on the exploration site or the mine, the Anglovaal Research
Laboratory developed their own standards, certified by other
commercial laboratories and those were used internally in the
laboratory. Duplicate samples were also inserted to check for
repeatability.
Orion:
- Diamond core cut at core yard and half core taken as sample.
- Diamond core sampled on 1m intervals where possible, sample lengths
adjusted to ensure samples do not cross geological boundaries or other
features.
- Drilling at the Deep Sulphide Target was carried out, aiming to define an
approximate 100m x 100m pattern by use of “mother” holes and
deflections from these holes.
- Percussion / reverse circulation pre-collars (where used) sampled on a
composite basis.
- Mineralised zones are drilled using core drilling.
- Sampling carried out under supervision of a qualified geologist using
procedures outlined below including industry standard QA/QC.
- Samples submitted for analysis to ALS Chemex PTY Ltd (ALS) are
pulverised in its entirety at ALS and split to obtain a 0.2g sample for
digestion and analysis.
- Downhole electromagnetic (EM) survey carried out using standard
techniques.
Drilling techniques - Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air Anglovaal:
blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple
or standard tube, depth of diamond tails, face-sampling bit or other - Records for core size are not available.
type, whether core is oriented and if so, by what method, etc.). - No record on core orientation.
Orion:
- Diamond core drilling using NQ and BQ sized core. BQ core was only
drilled where problems were encountered in the original NQ drilled drill
hole and the drilling could not continue with NQ size.
- In the near surface weathered zone HQ core was drilled.
- Pre-collar drilled using percussion drilling on certain holes (above
mineralisation).
- Core was orientated in holes selected for geotechnical studies.
Drill sample recovery - Method of recording and assessing core and chip sample recoveries Anglovaal:
and results assessed.
- Measures taken to maximise sample recovery and ensure - All mineralised intersections were done with core drilling.
representative nature of the samples. - Core recoveries are documented on the assay sheets. Core recoveries
- Whether a relationship exists between sample recovery and grade were measured for each "run".
and whether sample bias may have occurred due to preferential - In most V holes and all D and F holes, intersections were in hard rock and
loss/gain of fine/coarse material. recoveries were generally good through the mineralisation.
Orion:
- All mineralised intersections are done with core drilling.
- Core stick-ups reflecting the depth of the drill hole are recorded at the
rig at the end of each core run.
- A block with the depth of the hole written on it is placed in the core box
at the end of each run.
- At the core yard, the length of core in the core box is measured for
each run. The measured length of core is subtracted from the length of
the run as recorded from the stick-up measured at the rig to determine
the core lost.
- Core recovery in all the mineralised intersections are good.
- No grade variation with recovery noted.
Logging - Whether core and chip samples have been geologically and Anglovaal:
geotechnically logged to a level of detail to support appropriate
Mineral Resource estimation, mining studies and metallurgical studies. - All relevant intersections for V surface holes have been logged and all of
- Whether logging is qualitative or quantitative in nature. Core (or this information is available. It is understood from historical reports that all
costean, channel, etc.) photography. intersections for D and F holes were logged but not all information is
- The total length and percentage of the relevant intersections logged. currently available.
- Downhole geotechnical information is available for some of the D and F
holes only.
- Downhole mineralogical logs are available for some D and F holes.
Orion:
- Pre-collar percussion holes are logged on 1m intervals using visual
inspection of washed drill chips. A hand held XRF instrument is used to
determine the presence of any metals.
- Core of the entire hole length was geologically logged and recorded
on standardised log sheets by qualified geologists.
- Qualitative logging of colour, grain size, weathering, structural fabric,
lithology, alteration type and sulphide mineralogy carried out.
- Quantitative estimate of sulphide mineralogy.
- Logs are recorded at the core yard and entered into digital templates
at the project office.
Sub-sampling - If core, whether cut or sawn and whether quarter, half or all core Anglovaal:
techniques and taken.
sample preparation - If non-core, whether riffled, tube sampled, rotary split, etc. and
whether sampled wet or dry.
- For all sample types, the nature, quality and appropriateness of the - Details of sub-sampling techniques are not available.
sample preparation technique. - No QA/QC samples were submitted with the exploration samples.
- Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples. Orion:
- Measures taken to ensure that the sampling is representative of the in-
situ material collected, including for instance results for field - Samples from percussion pre-collars are collected by spear sampling.
duplicate/second-half sampling. - Sampling on site aims to generate a < 2kg sub sample to enable the
- Whether sample sizes are appropriate to the grain size of the material entire sample to be pulverised without further splitting.
being sampled. - Water is used in the dust depression proses during percussion drilling,
resulting in wet chip samples.
- BQ and NQ core cut at core yard and half core taken as sample.
- With core samples, the entire sample length is cut and sampled.
- Sample preparation is undertaken at ALS an ISO accredited laboratory.
ALS utilises industry best practise for sample preparation for analysis,
involving drying of samples, crushing to <5mm if required and then
pulverising so that +85% of the sample passes 75 microns.
- CRM’s, blanks and duplicates are inserted and analysed with each
batch. Insertion rates for the current reporting is: CRMs = 10%, blanks =
5% and field duplicates = 2%.
- ALS has their own internal QA/QC protocols which include CRM’s (5%),
blanks (2.5%) and duplicates (2.5%).
Quality of assay data - The nature, quality and appropriateness of the assaying and Anglovaal:
and laboratory tests laboratory procedures used and whether the technique is considered
partial or total. - Surface drill exploration samples were all sent to Anglovaal Research
- For geophysical tools, spectrometers, handheld XRF instruments, etc., Laboratory at Rand Leases Mine.
the parameters used in determining the analysis including instrument - Underground drill hole samples were sent to the mine laboratory, where
make and model, reading times, calibrations factors applied and their the same analytical method was used.
derivation, etc. - Atomic Adsorption method was used with a Nitric-bromide digest.
- Nature of quality control procedures adopted (e.g. standards, blanks, - Underground drill hole samples were sent to the mine laboratory, where
duplicates, external laboratory checks) and whether acceptable the same analytical method was used.
levels of accuracy (i.e. lack of bias) and precision have been - Although no formal QA/QC samples were inserted with the drill samples
established. of the exploration holes the Anglovaal Research Laboratory developed
their own standards, certified by other commercial laboratories and
those were used internally in the laboratory. Duplicate samples were
also inserted to check for repeatability.
Orion:
- Samples submitted to ALS were analysed for base metals, Au and Ag.
Analysis was by the Inductively Coupled Plasma and Optical Emission
Spectroscopy ("ICP-OES") methodology, using a four-acid digest.
- External quality assurance of the laboratory assays is monitored by the
insertion of blanks, duplicates and CRM’s.
- CRM samples show high accuracy and tight precision with no consistent
bias.
- Blank samples indicate no contamination, within the pre-determined
thresholds, during the sample preparation process.
- Field duplicate samples show acceptable precision with no obvious
bias.
- Laboratory samples show excellent accuracy and precision.
- No external laboratory checks have been carried out at this stage.
- Down hole EM surveys were carried out in selected holes, using a 3
component Digi-Atlantis probe and ultra high-power transmitter.
- Loop size of 1,800m x 600m are used with continuous measurements
taken as the probe travels into the hole and out again.
- Surface TDEM surveys were carried out using a Supracon Jesse Beep
squid sensor and ultra-high-power transmitter with a Smartem 24
receiver.
Verification of - The verification of significant intersections by either independent or Anglovaal:
sampling and alternative company personnel.
assaying - The use of twinned holes. - No records available.
- Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols. Orion:
- Discuss any adjustment to assay data.
- Orion’s Executive: Exploration Manager is personally supervising the
drilling and sampling along with a team of experienced geologists.
- The Executive: Exploration reviewed the raw laboratory data and
confirmed the calculation of the significant intersections.
- Twin holes are drilled to verify historical drill intersections (Anglovaal).
- For the EM survey, data is collected on site and validated by a
geophysical technician daily. Data (raw and processed) is sent to a
consultant geophysicist for review and quality control.
- No adjustments have been made to the assay data.
Location of data points - Accuracy and quality of surveys used to locate drill holes (collar and Anglovaal:
down-hole surveys), trenches, mine workings and other locations used
in Mineral Resource estimation. - All surface and underground hole collars were surveyed by qualified
- Specification of the grid system used. surveyors using a theodolite.
- Quality and adequacy of topographic control. - The historic mine survey data is in the old South African national
geographic, Clarke 1880, coordinate system.
- Downhole surveys were carried out for most of the V holes and all of the
D and F holes. Methodology of the downhole surveys is not recorded on
the available hardcopy information but plans and sections are
meticulously plotted and signed off by a certified surveyor.
- Both Eastman and Sperry Sun instruments were used in the downhole
surveys.
- Significant deflections in the dips of the holes have been noted,
especially for the deeper holes. V holes with no downhole surveys are
shallower holes drilled earlier on in the initial exploration phase. These
holes intersected areas where the mineralisation is now largely mined
out.
- All hole positions have been converted to Lo23 WGS84 coordinates.
Underground D and F holes are recorded in local "V" line and "O"
distance coordinates with local mine datum elevations. Level plans have
both the local V/O grid and Lo23 Clark 1880 grids plotted and this has
been used to define transformation parameters from local grid to
geographical coordinates. All hole positions have been converted to
Lo23 WGS84 coordinates.
Orion:
- Drill hole collar positions are laid out using a handheld GPS.
- After completion of the Orion drilling all collars were surveyed by a
qualified surveyor using a Trimble R8 differential GPS.
- Downhole surveys are completed using a North-Seeking Gyro instrument.
- All survey data is in the WGS84 ellipsoid in the WG23 Zone with the
Hartebeeshoek 1994 Datum. The coordinates are also supplied in Clarke
1880 and in UTM WGS84 Zone 34 (Southern Hemisphere).
Data spacing and - Data spacing for reporting of Exploration Results. Anglovaal:
distribution - Whether the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the Mineral - Original exploration holes (V) were drilled on 200 - 250 m spacing.
Resource and Ore Reserve estimation procedure(s) and classifications - Underground drilled holes (D, F and R) were not drilled on a regular
applied. spaced grid.
- Whether sample compositing has been applied.
Orion:
- At the Deep Sulphide Target drill holes aim to intersect mineralisation on
approximately 100m x 100m spacing with infill drilling to be carried out in
areas of interest as determined by results.
- Variography studies were carried out on the historic data set to
determine the drill spacing for Mineral Resource estimates.
Orientation of data in - Whether the orientation of sampling achieves unbiased sampling of - Historical drilling is oriented perpendicular, or at a maximum achievable
relation to geological possible structures and the extent to which this is known, considering angle to, the attitude of the mineralisation.
structure the deposit type. - As a result, most holes intersect the mineralisation at an acceptable
- If the relationship between the drilling orientation and the orientation angle.
of key mineralised structures is considered to have introduced a - Due to the hole orientation no sampling bias is anticipated.
sampling bias, this should be assessed and reported if material.
Sample security - The measures taken to ensure sample security. Anglovaal:
- No details of sample security available. However, during the mining
operations the site was fenced and gated with security personnel
employed as part of the staff.
Orion:
- Chain of custody is managed throughout. Samples are stored on site in
a secure locked building and then freighted directly to the laboratory.
Audits or reviews - The results of any audits or reviews of sampling techniques and data. Anglovaal:
- No records available.
Orion:
- No audits or reviews have been carried out at this stage.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement and - Type, reference name/number, location and ownership including Repli:
land tenure status agreements or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests, historical sites, - NC 30/5/1/1/2/NC2105PR (NC10445PR): A prospecting right, a
wilderness or national park and environmental settings. prospecting right renewal and a Section 102, have been granted to
- The security of the tenure held at the time of reporting along with any Repli No. 27 (Pty) Ltd; an indirect subsidiary of Orion, in terms of section
known impediments to obtaining a licence to operate in the area. 17(1) of the Minerals and Petroleum Development Act No 28 of 2002, as
amended, for Copper, Zinc, Gold, Silver, Cobalt, Barytes, Limestone,
Pyrite, Sulphur in Pyrite, Molybdenum, Lead, Iron and Tungsten in respect
of the farm Vogelstruisbult No 104, portion RE25 and portion 26 and the
farm Slimes Dam 154, in the Prieska District, Northern Cape Province. The
date of expiry is 2 November 2019.
- Orion effectively holds a 73.3% interest in the project, with the remaining
26.7% as BEE ownership in compliance with existing legislation.
Vardocube:
- NC 30/5/1/1/2/11841PR: The South African Department of Mineral
Resources (DMR) has officially notified Vardocube (Pty) Ltd
(Vardocube), an indirect subsidiary of the Company, that is has been
awarded a prospecting right, in terms of section 17(1) of the Minerals
and Petroleum Development Act No 28 of 2002, as amended, for
Copper, Zinc, Gold, Cobalt, Barytes, Limestone, Pyrite, Sulphur in Pyrite,
Molybdenum, Lead and Tungsten in respect of the farm Vogelstruisbult
No 104, portion RE1 in the Prieska District, Northern Cape Province. The
date of grant is 9 March 2018.
- The grant is subject to notarial execution and registration of the right.
- Orion effectively holds a 70% interest in the Vardocube Prospecting
Right, with the remaining 30% as BEE ownership in compliance with
existing legislation.
Exploration done by - Acknowledgment and appraisal of exploration by other parties. - The Anglovaal exploration resulted in the delineation and development
other parties of a large mine.
Geology - Deposit type, geological setting and style of mineralisation. - The Prieska Zn-Cu deposit is a Volcanogenic Massive Sulphide (VMS)
deposit which is situated in the southernmost exposures of the north-
northwest trending Kakamas Terrain, which forms part of the Mid-
Proterozoic Namaqualand Metamorphic Complex.
- The deposit is hosted by the Copperton Formation of the Areachap
Group. The Areachap Group, also hosts several other but smaller VMS
deposits such as the Areachap, Boks Puts, Kantien Pan, Kielder, and
Annex Vogelstruisbult deposits.
- The structural sequence at the mine consists of a footwall Smouspan
Gneiss Member, Prieska Copper Mines Assemblage (PCMA), which hosts
the sulphide mineralisation, and the hangingwall Vogelstruisbult Gneiss
Member.
- The historically mined section of the deposit is confined to a tabular,
stratabound horizon in the northern limb of a refolded recumbent
synform, the axis of which plunges at approximately 5° to the south-east.
- The mineralised zone outcrop has a strike of 2,400m, was oxidised and /
or affected by leached and supergene enrichment to a depth of
approximately 100m and is exposed as a well-developed gossan. It has
a dip of between 55° and 80° to the northeast at surface and a strike of
130° to the north. Current drilling indicates a strike length of at least
2,860m.
- The thickness of the mineralised zone exceeds 30m in places but
averages between 7m and 9m. The mineralised zone persists to a depth
of 1,100m (as deep as 1,228m in one section) after which it is upturned
due to the folding.
- The Vardocube Massive Sulphide Target below the historical mined
area, comprises the steep down dip continuity ("steep limb and hinge
zone”) from where it upturns to its subsequent synformal structure
("trough zone").
- The morphology of the mineralised horizon in the eastern limb is well
mapped out by drilling and historic mining while the western limb up dip
extent is poorly tested and mapped.
Drill hole Information - A summary of all information material to the understanding of the Anglovaal:
exploration results including a tabulation of the following information
for all Material drill holes: - A summary of the Anglovaal drill hole collar information related to the
o easting and northing of the drill hole collar current Vardocube Deep Sulphide Resource (Vardocube Prospecting
o elevation or RL (Reduced Level – elevation above sea level in Right) reporting (Section 3 of JORC tables) is included in Appendix 2,
metres) of the drill hole collar Table 1.
o dip and azimuth of the hole
o down hole length and interception depth Orion:
o hole length.
- If the exclusion of this information is justified on the basis that the - A summary of the Orion drill hole collar information related to the Deeps
information is not Material and this exclusion does not detract from the Resource reporting (Section 3 of JORC tables) was reported in ASX
understanding of the report, the Competent Person should clearly release 8 February 2018.
explain why this is the case.
Data aggregation - In reporting Exploration Results, weighting averaging techniques, Anglovaal:
methods maximum and/or minimum grade truncations (e.g. cutting of high
grades) and cut-off grades are usually Material and should be stated. - Individual intersections were weighted by sample width.
- Where aggregate intercepts incorporate short lengths of high grade - No truncations have been applied.
results and longer lengths of low grade results, the procedure used for - All grade and density information are incorporated in the Vardocube
such aggregation should be stated and some typical examples of database. Intersections related to the Vardocube Massive Sulphide
such aggregations should be shown in detail. Resource (Vardocube Prospecting Right) reporting (Section 3 of JORC
- The assumptions used for any reporting of metal equivalent values tables) is included in Appendix 2, Table 2.
should be clearly stated.
Orion:
- Significant Intersections for the Deep Sulphide Target reported to the
ASX are calculated by average of assays result > 0.3% copper or 0.5%
zinc and weighted by the sample width and specific gravity of each
sample.
- In general, the significant intersections correspond strongly to
geological boundaries (massive sulphides) and are clearly
distinguishable from country rock / surrounding samples.
- No truncations have been applied.
- The significant intersections made by Repli were reported in ASX
releases of 8 February 2018, 12 December 2017, 8 November 2017, 9
October 2017, 5 October 2017, 19 September 2017, 6 September 2017,
27 July 2017 and 17 July 2017.
Relationship between - These relationships are particularly important in the reporting of - All intersection widths quoted are down hole widths.
mineralisation widths Exploration Results. - Most holes intersected the mineralisation perpendicular or at high angle
and intercept lengths - If the geometry of the mineralisation with respect to the drill hole angle to the attitude of the mineralisation.
is known, its nature should be reported. - The geometry of the mineralisation is complex and true widths can be
- If it is not known and only the down hole lengths are reported, there obtained from the three-dimensional wireframe created of the
should be a clear statement to this effect (e.g. ‘down hole length, true mineralisation.
width not known’).
Diagrams - Appropriate maps and sections (with scales) and tabulations of - Appropriate diagrams (plan, cross section and long section) are shown
intercepts should be included for any significant discovery being in Appendix 2, Figures 1 to 3.
reported. These should include, but not be limited to a plan view of drill - A summary of the drill hole intersection information related to the current
hole collar locations and appropriate sectional views. Vardocube Massive Sulphide Resource reporting (Section 3 of JORC
tables) is given in Appendix 2, Table 2.
- A summary of the drill hole intersection information related to the Repli
Massive Sulphide Resource was reported in ASX release 8 February 2018.
Balanced reporting - Where comprehensive reporting of all Exploration Results is not - All drilling information is available and has been compiled digitally.
practicable, representative reporting of both low and high grades - Drill hole results which have been detailed in previous public
and/or widths should be practiced to avoid misleading reporting of announcements are not repeated here.
Exploration Results.
Other substantive - Other exploration data, if meaningful and material, should be reported - Hardcopy maps are available for a range of other exploration data. This
exploration data including (but not limited to): geological observations; geophysical includes mine survey plans, geological maps, airborne magnetic,
survey results; geochemical survey results; bulk samples – size and ground magnetic, electromagnetic, gravity and induced polarisation
method of treatment; metallurgical test results; bulk density, information. All available exploration data has been viewed by the
groundwater, geotechnical and rock characteristics; potential Competent Person.
deleterious or contaminating substances. - The mine operated from 1972 to 1991 and is reported to have milled a
total of 45.68 Mt of ore at a grade of 1.11% copper and 2.62% zinc,
recovering 0.43 Mt of copper and 1.01 Mt of zinc. Detailed production
and metallurgical results are available for the life of the mine.
- In addition, 1.76 Mt of pyrite concentrates and 8,403 t of lead
concentrates as well as amounts of silver and gold were recovered.
- Copper and zinc recoveries averaged 84.9% and 84.3% respectively
during the life of the mine.
- Comprehensive geotechnical work as part of a Bankable Feasibility
Study (BFS) is in progress on the Deep and +105 Target areas and the
data is available.
- Metallurgical test work as part of a BFS is in progress. All data to date is
available.
Further work - The nature and scale of planned further work (e.g. tests for lateral - Drilling to test the extension of the Vardocube Deep Sulphide Target will
extensions or depth extensions or large-scale step-out drilling). start in April 2018.
- 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
(Criteria listed in Section 1, and where relevant in Section 2, also apply to this section.)
Criteria JORC Code explanation Commentary
Database integrity - Measures taken to ensure that data has not been corrupted by, for - Orion is in the process of compiling a robust GeobankTM database
example, transcription or keying errors, between its initial collection however, in the interim sample data is stored and managed on AccessTM
and its use for Mineral Resource estimation purposes. and ExcelTM spreadsheets.
- Data validation procedures used. - Validation includes the following;
o Ensuring that all drill holes have appropriate XYZ coordinates.
o Comparing the maximum depth of the hole against the final depth
indicated in the collar file.
o Comparing the final depth in the survey file against final depth in
the collar file.
o Comparing the final depths of all geology, assay, core recovery
against the final depth in the collar file.
o Checking for duplicate drill holes.
o Checking that each depth interval has a main lithology.
o Checking that all fields that were set up as mandatory fields contain
entries.
o The core recoveries were checked for unrealistic percentages.
o Density results are checked for unrealistic values.
- Procedures used are queries in the Access database. In addition, when
the drill hole data was imported into the Geovia SurpacTM (Surpac)
modelling software. The data was validated for duplicates, gaps,
overlaps, impossible intervals in down-hole sequence for assay, collar
coordinates, geology data and survey data. The drill holes were also
visually checked in plan and section in Surpac.
Site visits - Comment on any site visits undertaken by the Competent Person - A site visit was conducted by Z* Competent Person/s during the 4th
and the outcome of those visits. quarter of 2017. The visit included a review of the drilling and sampling
- If no site visits have been undertaken indicate why this is the case. operations, discussion on the geology and associated mineralisation,
review of the planned drill holes and examination of the assay data and
a high level spatial analysis.
Geological - Confidence in (or conversely, the uncertainty of) the geological - The Vardocube Massive Sulphide mineralisation is the depth extension of
interpretation interpretation of the mineral deposit. the strata-bound, stratiform VMS Prieska Zn-Cu deposit and is hosted by
- Nature of the data used and of any assumptions made. the 3km thick Copperton Formation of the Areachap Group. The massive
- The effect, if any, of alternative interpretations on Mineral Resource sulphide mineralisation is characterised by abundant rounded fragments
estimation. The use of geology in guiding and controlling Mineral of gangue material of various sizes contained in a matrix of sulphide
Resource estimation. minerals. The gangue includes fragments of both hanging- and footwall
- The factors affecting continuity both of grade and geology. material.
- No clear metal zonation is evident from the modelling. High Cu is
generally not in the same place as the high Zn (with a few exceptions).
- Geological data and conclusions reached were based on observations
made in drill core from recent drilling and sampling programmes.
- Like many other VMS deposits domaining for estimation is not possible
using the geology, and the best method is therefore to utilise the assay
data.
- There is a sharp decrease in the Zn and Cu grades on the boundary of
the massive sulphide unit. For the construction of the wireframes a Zn
equivalent cut-off of 4% (Zn Eq = Zn% + (Cu%*2)) for the mineralised zones
was used.
Dimensions - The extent and variability of the Mineral Resource expressed as - Within the prospecting right area, the known strike length of the
length (along strike or otherwise), plan width, and depth below mineralisation is 600m, horizontal width varies from 2m to 40m and the
surface to the upper and lower limits of the Mineral Resource. down dip extent is 1,100m below shaft collar. True thickness of the
orebody varies between 1.5m to 25m with an average of 6m.
Estimation and - The nature and appropriateness of the estimation technique(s) - The estimation of the Vardocube Massive Sulphide included the
modelling techniques applied and key assumptions, including treatment of extreme grade following steps:
values, domaining, interpolation parameters, and maximum o The creation of a wireframe model for the Vardocube Massive
distance of extrapolation from data points. If a computer assisted Sulphide Target by Orion geologists using a 4% Zn equivalent cut-off;
estimation method was chosen include a description of computer o Data validation and selection of samples within the Vardocube
software and parameters used. Massive Sulphide Target and analysis of the variables to be
- The availability of check estimates, previous estimates and/or mine estimated, i.e. Cu%, Zn%, Ag g/t, Au g/t, Pb% and SG;
production records and whether the Mineral Resource estimate o Exploratory Data Analysis (EDA) that included:
takes appropriate account of such data. - Compositing the data to 1m;
- The assumptions made regarding recovery of by-products. - Capping two Cu% outliers and a single Pb% high value; and
- Estimation of deleterious elements or other non-grade variables of - Exclusion of two samples with extreme lengths.
economic significance (e.g. sulfur for acid mine drainage o Creation of a suitable block model with estimation blocks (40m x
characterisation). 40m x 5m) and Smallest Mining Units (SMU’s) of 2.5m x 2.5m x 2.5m;
- In the case of block model interpolation, the block size in relation to o A spatial analysis of estimation variables followed by a
the average sample spacing and the search employed. neighbourhood analysis taking cognisance of the folding;
- Any assumptions behind modelling of selective mining units. o Estimation using an appropriate method and modelled parameters,
- Any assumptions about correlation between variables. i.e. Ordinary Kriging for local block estimation supplemented by
- Description of how the geological interpretation was used to control zonal estimation;
the resource estimates. o Validation of block estimates including statistical and visual
- Discussion of basis for using or not using grade cutting or capping. methods as well as comparison with the results of a second method
- The process of validation, the checking process used, the (moving average);
comparison of model data to drill hole data, and use of o The software used for estimation was IsatisTM.
reconciliation data if available.
- There is no previous Mineral Resource declaration for the Vardocube
Massive Sulphide Target.
- There are no previous mine production plans for the Vardocube Massive
Sulphide Target.
- No assumptions have been made regarding the recovery of by-
products.
- No deleterious elements or non-grade variables were estimated.
Moisture - Whether the tonnages are estimated on a dry basis or with natural - No moisture content was calculated, and the core was naturally dried
moisture, and the method of determination of the moisture content. when logged and sampled. The estimated tonnages are therefore
based on a natural basis.
Cut-off parameters - The basis of the adopted cut-off grade(s) or quality parameters - A Zn equivalent cut-off of 4% was used for the Mineral Resource
applied. Statement that corresponds with the wireframe modelling.
- The cut-off was on the recommendation of the Orion Executive: Mining &
Development.
Mining factors or - Assumptions made regarding possible mining methods, minimum - Minimum mining thickness of 2m and cut-off of 4% Zn equivalent were
assumptions mining dimensions and internal (or, if applicable, external) mining proposed by the Orion Executive: Mining & Development, as based on
dilution. It is always necessary as part of the process of determining historical data from the Prieska Copper Mine and a dataset of
reasonable prospects for eventual economic extraction to consider parameters from similar operations in the region.
potential mining methods, but the assumptions made regarding - The minimum thickness is based on long hole open stope and drift and fill
mining methods and parameters when estimating Mineral mining methods.
Resources may not always be rigorous. Where this is the case, this - A preliminary mine design which will form the basis of a BFS is in progress.
should be reported with an explanation of the basis of the mining
assumptions made.
Metallurgical factors - The basis for assumptions or predictions regarding metallurgical - Preliminary metallurgical test work on the sulphide mineralisation
or assumptions amenability. It is always necessary as part of the process of revealed good concentrate recoveries. Additional metallurgical test
determining reasonable prospects for eventual economic work is planned as part of a BFS is in progress.
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 - Assumptions made regarding possible waste and process residue - The Vardocube Massive Sulphide Target is on the environmental footprint
or assumptions disposal options. It is always necessary as part of the process of of the now defunct Prieska Copper Mine site. Environmental impact
determining reasonable prospects for eventual economic assessment studies form part of the on-going BFS.
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 - No records are available on the method used to determine the relative
assumptions. If determined, the method used, whether wet or dry, densities. It is assumed that the water displacement method was used.
the frequency of the measurements, the nature, size and - Relative densities were obtained from Anglovaal geological log sheets
representativeness of the samples. and geological sections.
- The bulk density for bulk material must have been measured by - No moisture content was determined.
methods that adequately account for void spaces (vugs, porosity, - Local block estimates of SG t/m3 were produced using Ordinary Kriging in
etc.), moisture and differences between rock and alteration zones areas of close spaced sampling. A second pass with longer search radii
within the deposit. was utilised and the remaining blocks were populated using grid filling.
- Discuss assumptions for bulk density estimates used in the evaluation The tonnage per block was determined using the volume (as per the
process of the different materials. wireframe model) and the SG on a block by block basis.
Classification - The basis for the classification of the Mineral Resources into varying - The classification of the Vardocube Massive Sulphide Mineral Resource
confidence categories. takes cognisance of the uncertainty associated with the geology with
- Whether appropriate account has been taken of all relevant the focus being on the definition of the mineralised domain and
factors, i.e. relative confidence in tonnage/grade estimations, therefore the volume estimate. The classification also takes cognisance
reliability of input data, confidence in continuity of geology and of the fact that there is more than one drilling and sampling programme,
metal values, quality, quantity and distribution of the data. and the historical Anglovaal data has a lack of available supporting
- Whether the result appropriately reflects the Competent Person(s)’ documentation. A further important consideration is the methodology
view of the deposit. used to estimate Cu%, Zn%, Ag g/t, Au g/t, Pb% and SG t/m3 and an
assessment of the results (refer to discussion of relative accuracy and
confidence below).
- The Vardocube Massive Sulphide Mineral Resource is classified at an
Inferred level of confidence.
- The results conform to the view of the Competent Persons.
Audits or reviews - The results of any audits or reviews of Mineral Resource estimates. - No reviews or audits were done of the Mineral Resource estimate
however, numerous validation methods were utilised included a second
estimation method and the estimates were found to be well within the
requirement for an Inferred category.
Discussion of relative - Where appropriate a statement of the relative accuracy and - The Vardocube Massive Sulphide mineralisation was modelled together
accuracy/confidence confidence level in the Mineral Resource estimate using an with the Deep Sulphide mineralisation occurring along strike to the north-
approach or procedure deemed appropriate by the Competent west.
Person. For example, the application of statistical or geostatistical - The summary statistics of the Deep Sulphide mineralisation do not show
procedures to quantify the relative accuracy of the resource within any significant differences between Anglovaal and Orion data. There is
stated confidence limits, or, if such an approach is not deemed a reasonable compatibility between the histograms (despite a significant
appropriate, a qualitative discussion of the factors that could affect difference in the number of assays) but the Orion data shows a larger
the relative accuracy and confidence of the estimate. percentage of very low values for both Cu% and Zn%.
- The statement should specify whether it relates to global or local - In general, the variogram models for Cu% and Zn% for both Anglovaal
estimates, and, if local, state the relevant tonnages, which should and Orion data compare very favourably.
be relevant to technical and economic evaluation. - Ordinary Kriging was undertaken on all variables (Cu%, Zn%, Pb%, Ag g/t,
Documentation should include assumptions made and the Au g/t and SG t/m3) on a 40m x 40m x 5m block scale, utilising the
procedures used. capped 1m composite input datasets, the modelled variograms and the
- These statements of relative accuracy and confidence of the search neighbourhood parameters. The results from the first pass for Cu%,
estimate should be compared with production data, where Zn% and SG t/m3 populate between 28% and 40% of the blocks.
available. However, the same results for Ag g/t, Au g/t and Pb% populate very few
blocks (<17%), due to a lack of sampling. Consequently, a second kriging
pass was deemed appropriate for Cu%, Zn% and SG t/m3, this resulted in
between 59% and 71% of the blocks being populated. A decision was
taken to utilise the “grid filling” option in IsatisTM using a moving average
interpolator. The grid filling option is suited to filling grid nodes not
populated by the second kriging pass and was deemed to be a better
option than applying a zonal mean.
- Given the low number of blocks populated from the first pass for Ag g/t,
Au g/t and Pb%, it was decided that a second pass would produce
unsubstantiated estimates with high levels of uncertainty. Instead, a
zonal mean was applied to estimate the remaining blocks. This volume
weighted mean was calculated from the first pass local block estimates
and applied to each of these three variables.
- No production data is available.
Hole Number Easting Northing RL Hole length Dip Azimuth Drill type Company
D351 -67424.53 -3315682.51 440.46 608.00 -30.25 102.50 Underground diamond Anglovaal
D354 -67147.07 -3315720.71 102.43 138.45 -53.00 92.00 Underground diamond Anglovaal
D355 -67435.63 -3315685.96 440.26 475.71 -88.50 66.00 Underground diamond Anglovaal
D355A -67435.63 -3315685.96 440.26 436.41 -88.50 66.00 Underground diamond Anglovaal
D356 -67424.74 -3315689.07 440.41 570.30 -53.50 67.50 Underground diamond Anglovaal
D356A -67424.74 -3315689.07 440.41 531.11 -53.50 67.50 Underground diamond Anglovaal
D373 -67147.41 -3315929.86 362.97 444.86 -56.50 56.00 Underground diamond Anglovaal
D378 -67142.08 -3315933.99 363.00 508.00 -60.00 85.00 Underground diamond Anglovaal
D453 -67148.47 -3315930.08 362.98 436.25 -66.00 56.00 Underground diamond Anglovaal
D454 -67142.08 -3315933.99 363.00 505.57 -42.50 83.00 Underground diamond Anglovaal
D454A -67142.08 -3315933.99 363.00 499.15 -42.50 83.00 Underground diamond Anglovaal
D455 -67144.62 -3315933.63 363.30 465.20 -52.00 34.00 Underground diamond Anglovaal
D456 -67147.66 -3315929.88 362.97 559.65 -43.00 55.75 Underground diamond Anglovaal
D456A -67147.66 -3315929.88 362.97 571.00 -43.00 55.75 Underground diamond Anglovaal
D457 -67250.48 -3315586.94 361.30 424.00 -75.00 149.00 Underground diamond Anglovaal
D459 -67140.74 -3315926.93 363.80 497.00 -31.00 84.00 Underground diamond Anglovaal
D459A -67140.74 -3315926.93 363.80 472.00 -31.00 84.00 Underground diamond Anglovaal
F1830 -67249.22 -3315583.90 362.05 441.58 -57.00 87.00 Underground diamond Anglovaal
F1839 -67272.79 -3315518.81 241.82 330.18 -47.00 93.00 Underground diamond Anglovaal
F1840 -67260.35 -3315532.03 242.20 347.22 -31.25 105.00 Underground diamond Anglovaal
F2006 -67260.70 -3315532.60 242.41 275.86 -31.00 95.75 Underground diamond Anglovaal
F2016 -67223.85 -3315685.83 362.11 392.38 -49.00 76.00 Underground diamond Anglovaal
F2026 -67260.66 -3315531.22 241.86 283.20 -38.00 87.25 Underground diamond Anglovaal
OCOD072 -67299.21 -3315602.45 1,077.44 1,303.23 -89.80 242.90 Surface diamond Orion
Foot Note: Shaft collar is 1070.26 RL.
Intersection
Cu % Zn % Pb % Au g/t Ag g/t SG WGS84 Wg23
DOWN HOLE DEPTH (m) width (m)
HOLE NUMBER
From To Northing Easting RL
D351 595.14 601.42 6.28 0.53 3.11 0.12 3.77 -3315765.95 -66891.74 187.97
D354 134.85 137.78 2.93 1.65 6.21 0.04 3.79 -3315729.96 -67067.19 -7.55
D355 422.18 423.15 0.97 0.52 1.75 0.04 3.14 -3315676.25 -67407.03 18.85
D355A 421.31 422.54 1.23 0.52 3.35 0.03 3.51 -3315676.66 -67407.48 19.55
D356 501.49 526.61 25.12 1.01 3.06 0.06 3.71 -3315539.87 -67075.22 105.74
D356A 500.35 522.00 21.65 0.92 3.09 0.14 3.72 -3315540.63 -67077.06 108.22
D373 429.95 431.46 1.51 0.53 6.67 0.04 3.65 -3315859.55 -66923.27 4.31
D378 431.05 456.08 25.03 1.38 4.26 0.15 3.61 -3315957.13 -66920.38 -19.57
D453 408.07 427.88 19.81 0.71 3.52 0.04 3.37 -3315862.14 -67001.38 -21.60
D454 477.75 480.20 2.45 1.83 2.02 0.15 3.31 -3315906.83 -66804.81 27.06
D454A 478.27 480.72 2.45 0.98 0.35 0.03 2.89 -3315906.19 -66803.41 27.66
D455 447.55 453.30 5.75 2.08 6.04 0.07 3.88 -3315717.68 -66980.97 4.38
D456 451.55 463.41 11.86 1.27 5.23 0.07 3.73 -3315746.01 -66878.15 43.03
D456A 439.47 447.67 8.20 1.54 7.04 0.08 3.72 -3315764.17 -66882.73 52.06
D457 400.98 406.78 5.80 1.36 5.76 0.03 3.66 -3315695.62 -67199.25 -24.06
D459 463.45 465.57 2.12 0.78 5.40 0.09 3.95 -3315892.52 -66748.82 118.95
D459 444.31 446.84 2.53 1.11 4.59 0.04 3.52 -3315894.20 -66764.79 128.99
D459A 468.08 470.95 2.87 0.61 5.22 0.07 3.72 -3315872.99 -66750.87 114.53
D459A 447.37 450.02 2.65 0.49 6.23 0.03 3.56 -3315880.46 -66766.43 126.17
F1830 395.60 398.24 2.64 1.21 5.47 0.07 3.70 -3315607.57 -67034.74 29.31
F1839 249.94 254.98 5.04 1.16 4.44 0.06 3.87 -3315528.22 -67099.13 58.96
F1840 296.54 335.83 39.29 1.29 7.36 0.07 3.64 -3315621.09 -67008.93 73.40
F2006 237.40 253.57 16.17 2.55 2.46 0.05 3.83 -3315537.05 -67051.37 114.47
F2016 348.78 385.05 36.27 1.68 6.44 0.07 3.74 -3315621.26 -66974.98 100.80
F2026 243.20 259.95 16.75 1.79 8.02 0.07 4.10 -3315546.88 -67064.02 86.33
OCOD072 1,101.70 1,107.05 5.35 0.72 5.14 0.05 0.22 6.28 3.29 -3315628.17 -67296.67 -26.22
Date: 09/04/2018 09:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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