Wrap Text
61.9 Mt Maiden Resources Estimate at Mofe Creek Project including indicated Resources of 16.2Mt
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
ISIN: AU000000TAW7
Share code on the Australian Stock Exchange Limited: TAW
ISIN: AU000000TAW7
(“Tawana” or “the Company”)
61.9Mt Maiden Resource Estimate at Mofe Creek
Project, including Indicated Resource of 16.2Mt
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS
PURPOSES. PLEASE REFER TO TAWANA WEBSITE FOR THE
COMPLETE ANNOUNCEMENT
- Maiden Mineral Resource estimate for the Mofe Creek Project of 61.9Mt at
33% Fe
- Includes an Indicated Mineral Resource of 16.2Mt at 35.4% Fe
- Only 8km of a potential 65km prospective strike drilled to date; potential exists
to significantly increase the current resource
- The resource is coarse-grained, friable itabirite mineralisation, readily
upgradable and outcropping from surface, leading to potentially low stripping
ratios for mine development
- Mineralisation upgradable to a potential 62-68% Fe premium product with
extremely low Silica and Alumina levels (3%)
- Scoping Study well advanced; completion targeted for July 2014
Tawana Resources NL (ASX: TAW) (“Tawana” or “the Company”) is very pleased
to announce its maiden estimated Mineral Resource for its 100% owned Mofe Creek
Iron Ore Project located in Grand Cape Mount County, Republic of Liberia, West
Africa (“Mofe Creek” or “Mofe Creek Project”).
A Maiden Mineral Resource of 61.9Mt with an in-situ iron grade of 33% (“Maiden
Mineral Resource”) has been calculated for the Mofe Creek Project and comprises
the Gofolo Main, Zaway and Koehnko deposits. The Maiden Mineral Resource
includes Indicated Mineral Resources of 16.2Mt at 35.4% Fe, with the balance of the
Mineral Resource classified as Inferred (45.7Mt at 32.1% Fe –refer summary Table 1
below).
Classification Tonnes Fe SiO2 Al2O3 P LOI MnO S TiO2
(Mt) (%) (%) (%) (%) (%) (%) (%) (%)
Total Indicated 6 33.4 43.3 4.4 0.03 1.7 0 0 0.2
Zaway
Total Indicated 10.2 36.5 38.8 3.4 0.05 2.9 0.1 0.1 0.1
Gofolo Main
Total Indicated 16.2 35.4 40.5 3.8 0.04 2.5 0.1 0.1 0.1
Total Inferred 16 31 42.5 7.9 0.04 3.4 0 0 0.2
Koehnko
Total Inferred 6.3 33.7 40.9 5.7 0.03 3.3 0 0 0.3
Zaway
Total Inferred 23.4 32.5 36.3 8.4 0.04 5.8 0.1 0.1 0.3
Gofolo Main
Total Inferred 45.7 32.1 39.1 7.9 0.04 4.6 0.1 0.1 0.3
TOTAL Indicated + 61.9 33.0 39.5 6.8 0.04 4.0 0.1 0.1 0.2
Inferred
Table 1 | Summary Grade-Tonnage for Mofe Creek (20 % Fe lower cut-off is applied)
Commenting on the Maiden Mineral Resource, Tawana’s Managing Director Mr Len
Kolff said: “The Maiden Mineral Resource is a major milestone for Tawana in the
transition from an explorer to a developer. Classification of 16.2Mt in the Indicated
category as part of the Maiden Resource provides additional confidence in the
geological robustness of the Mofe Creek Project and is a critical step in allowing the
Company to assess the technical and economic viability of a proposed 1 to 2 Million
tonne per annum (Mtpa) early start-up operation (Stage 1 scenario) and a later stage
(Stage 2 scenario), 5 to 10Mtpa project”.
“Considering Tawana has only drilled 8km of a total 65km of potential interpreted
prospective strike within its 100% owned Mofe Creek licence area, the potential
expansion of the resource remains extremely viable” he said.
“The Project’s proximity to existing infrastructure, recently commissioned mines and
an operational deep-water iron ore port in Monrovia, along with the confirmation that
the mineralisation is coarse-grained, high-grade friable itabirite with a 33.6% Fe
average grade and exceptionally low contaminants, sets the Mofe Creek Project
apart from other West African iron ore projects” he concluded.
“These dynamic attributes of the Resource and Project, coupled with the
mineralisation being at or near surface, with low strip-ratio potential for future mine
developments, places Tawana in an optimal position to fast-track the development of
its Mofe Creek Project, and provide reasonable prospects for eventual economic
extraction of the resources” Mr Kolff said. “Recent Metallurgical results also
confirmed the simple upgradability of the iron formation to a premium grade product
ranging from 62-68% Fe”.
Coffey Mining Pty Ltd (Coffey) was retained by Tawana Resource NL (Tawana) to
undertake the maiden resource estimates for three of the prospects (Gofolo Main,
Zaway and Koehnko) at their Mofe Creek Iron Ore Project in Liberia.
Technical Discussion
The Mofe Creek Project is located 80km northwest of the operating deep-water port
of Monrovia; the capital city of Liberia, West Africa. The project is well serviced by a
sealed bitumen road from Monrovia through the licence area that is located within 20
km of the Liberia coastline. The Company through its wholly owned Liberia
subsidiary Tawana Liberia Inc was granted mineral exploration licence MEL12029 in
December 2012 for a period of 3 years and renewable for an additional 2 years. The
Company has a 100% beneficial interest in the tenement.
The Mofe Creek deposits consist of a series of approximately 1 to 2km strike length
semi-contiguous hills with coincident magnetic anomalies within an approximate
65km strike length of prospective magnetic anomalies. The hills tested to date and
included within the Maiden Mineral Resource estimate are the Gofolo Main, Zaway
and Koehnko deposits, with additional hills yet to be tested.
Iron mineralisation is hosted within steeply to gently dipping, folded and faulted
coarse, partially recrystallised itabirite units of both oxide and minor silicate
composition of likely Archaean or Palaeoproterozic age. Three significant iron
formation units (IF) are recognized; a lower mixed oxide and silicate facies unit
(“IF1”), middle and most significant oxide dominant unit (“IF2”) and upper mixed
oxide and silicate facies unit (“IF3”). The iron formations occur within a mixed
bedded to massive metasedimentary sequence with cross-cutting intrusives, which
unconformably overlies granitic gneiss basement of the West African Archean
Craton.
Secondary recrystallisation of the itabirite units has caused recrystallisation,
coarsening and potential enrichment of the magnetite within the parent iron
formation. Deep, tropical weathering has caused surface enrichment of the iron
formation and oxidation of magnetite to hematite and variable hydration to goethite
and limonite.
Mineralogical work carried out as part of the early metallurgical test-work indicates
that the dominant iron oxides present are hematite (after oxidised magnetite) and
subordinate magnetite within the weathering profile, with goethite and limonite more
prevalent within weathered silicate iron facies units and towards the surface within a
ferruginous ‘hard-cap’, and magnetite dominant below base of oxidation.
Summary of Drilling
The deposits consist of a series of semi-contiguous hills with coincident magnetic
anomalies within an approximate 45km strike length magnetic anomaly corridor. The
iron formations appear to represent strike continuations of the Bomi Hills and Bong
Range iron ore mines, respectively 25km and 85km along strike to the east. The
main hills tested to date by RC and HQ3 diamond drilling on a nominal 200 x 60m
grid are the Gofolo Main (Figure 5), Zaway (Figure 6) and Koehnko (Figure 7)
deposits. A total of 97 RC drill holes were drilled for 7,781m during the 2012 and
2012-2013 programmes.
A total of 17 DD drill holes were drilled for 1,229.7m during the 2012-2013
programme. All drilling was completed using an EDM-2000 multipurpose drill rig. The
diamond drilling was done for metallurgical sampling, geotechnical logging and for
twinning RC drill holes. The majority of RC samples were dry; drill sample moisture
content was recorded at 1m intervals to assess whether sample moisture could bias
sample recovery and assay. No significant bias was noted. Total recovered sample
weight was not recorded for the 2013 drill programme; total recovered RC sample
weight was recorded at 1m intervals for the 2013-2014 drill programme and used to
assess sample recovery. Recoveries in the top 20m of weathered material were less
favourable (30% to 40%) in much of the Phase 2 drilling, averaging 70% for below
this level. Diamond drilling recovery was recorded on site with a weighted average
88% for total hole and 85% for the main mineralized sections.
Summary of Sampling
Consecutive 1m RC drilling samples were riffle split to 1kg to 2.5kg samples and
combined to 2kg to 5kg 2m composites. Diamond holes were drilled at HQ3 core
diameter and sampled to geological contacts with a minimum sampling interval of
0.5m and a maximum of 2.0m. Drillhole logging was recorded in hardcopy format at
the drill site or the core shed as soon as practically possible and subsequently
entered into digital format spreadsheet. All drilling was done under a strict quality
control and assurance programme and the results of the QAQC programme provide
confidence on acceptable error limits. Drillhole collars were surveyed by a registered
surveyor using a differential global positioning system and tied into a UTM
WGS84_29N grid with survey control established within the prospect areas.
Downhole surveys on all drillholes for the 2013-2014 programme were completed
using a Reflex Gyrosmart survey system. The surface topography used in the
resource has been generated from a low accuracy survey derived from aerial
magnetic studies; the locations around the prospects were better defined using collar
positional data.
Summary of Analysis
All RC samples and diamond core halved using a diamond saw was dispatched for
sample preparation and analysis at the SGS Analytical Laboratory in Monrovia,
Liberia. Major elements were analysed through a lithium metaborate/tetraborate
mixture digest with XRF finish while LOI was measured by Thermo Gravimetric
Analysis at 1,000 degrees. The 2013 programme RC samples were sent to ALS
Liberia, for sample preparation and sent for assay at ALS Ireland of major and minor
elements by XRF fusion using method code ME-XRF21n. The 2013-2014
programme 2m RC composite samples and half diamond core were sent to SGS
Laboratory, Monrovia, Liberia, forpreparation and assay. Certified commercial
standards were sourced from Geostats, Perth with sample and particle sizes being
appropriate. Blank barren quartzite was sourced locally in Monrovia. Coffey also
visited the SH+GS laboratory in Monrovia to validate the sample prep and analytical
procedures; no material sample preparation and analytical issues were noted.
Summary of Estimation
Confidence in the geological model is based on a combination of detailed surface
geological mapping, sectional interpretation by Tawana Resources and West African
Geoservices (WAGS) and is adequate. The geology interpretation is supported by
comparison with downhole multi-element geochemistry and magnetic susceptibility.
A detailed review of diamond drillholes was completed utilising high-resolution core
photographs, magnetic susceptibility and down hole assays. The geological
interpretation based on surface geological mapping, sectional geological and
structural interpretation, down-hole multi-element geochemistry and magnetic
susceptibility is taken directly into the resource/volume model by wire-framing of the
relevant geological and stratigraphic units. Estimation is based on Ordinary Kriging
(OK), without grade capping, of the wire-frame domains. RC analytical data only was
used for the estimation, the results from the diamond drilling sampling not being
available at time of estimation. Vulcan and Isatis software were used for
interpretation/estimation and variography. Distance of extrapolation is generally in
the order of 50m or less. Fe is the primary commodity for the resource estimate and
a full suite of elements (SiO2, Al2O3, P, LOI, CaO, K2O, MgO, MnO, Na2O, S, TiO2) is
also estimated by OK with some of those elements considered to be deleterious (P,
SiO2 and Al2O3). The parent block size selected in relation to the nominal drillhole
spacing of 200m by 60m is 100m along strike, 30m down dip and 5m normal to the
plane of mineralisation for all deposits. Sub-celling to 2m x 2m x 1m was adopted to
adequately define the geometry of thinner geological units. Block estimates were
validated through a visual and statistical comparison of input sample versus
estimated block grades, number of samples used, average distance to informing
samples and other geostatistical parameters e.g. block kriging efficiency. Tonnage
estimates are based on in-situ dry bulk density measurements. Selective mining
units were not defined at this stage and the Maiden resource is considered to
represent a Global in situ resource model fit for conceptual mining studies.
Summary of Classification
No previous estimates or mine production estimates are in existence and the
currently published resource constitutes a Maiden Resource. A separate block model
check estimate was completed using a different parent cell discretisation system and
resulted in virtually the same resource. During resource classification, model blocks
extrapolated beyond the range of the variogram structures are not included. There
are therefore no Inferred Resources that are the result of extrapolation instead of
interpolation. The classified portion of the Gofolo Main resource has a strike extent of
approximately 2,000 m. A total strike length of 1,100m is indicated at Koehnko and of
1,400m at Zaway. At all prospects, vertical extents of mineralisation are restricted to
current drillhole depths in most cases. In general, drillholes extend to nominally less
than 100m below surface.
Summary of Cut-offs
Resources are reported above a nominal cut-off grade of 20% Fe; further work via
mining studies is required to define a series of economic mining cut-offs.
Summary of Mining Assumptions
Metallurgical test-work currently underway at ALS Perth utilising drill core will assess
both physical and chemical characteristics of the mineralisation and explore a range
of beneficiation products at various crush sizes. Current in-situ resources with
average grades of approximately 30% to 36% Fe extend to approximately 150m
below surface. Preliminary metallurgical test-work on representative RC samples
indicates that mineralisation is highly amenable to beneficiation through crushing and
gravity process. It is believed there are reasonable prospects of eventual economic
extraction with mining based on direct shipping material produced from standard
shallow open pit operations. The Mineral Resource for the Mofe Creek Project
categorised in accordance with the JORC Code 2012 is reported in Table 1 (for
Gofolo Main), Table 2 (for Zaway) and Table 3 (for Koehnko) deposits.
Scoping Study Update
With the announcement of the Maiden Resource, the Scoping Study is well
advanced and forecast to be released in July 2014. All consultant groups have
advanced their respective disciplines and the principles of the Scoping Study will be
to consider, design and potentially implement a two Stage development program for
the Mofe Creek Project. The proposed first stage will be for the production of 1 to 2
Mtpa of final product with Stage 2 being considered for the production of 5 to 10
Mtpa. Earth Systems in conjunction with EarthCons of Liberia have completed the
baseline scoping site visit in support of the Scoping Study and for the mapping of a
baseline monitoring programme for the Stage 1 development option and the Stage 2
Prefeasibility Study (PFS), scheduled to commence immediately after the release of
the Scoping Study Report. Coffey Mining of Perth are currently reviewing
geotechnical and hydrological mine design criteria, mine and tailing storage facility
design in support of the Scoping Study. PRDW of South Africa have completed a
desk top review of barging and transhipment options in support of the Stage 2 – 5 to
10Mtpa production scenario, and Tenova Bateman are advancing the processing
and engineering design for both production stages.
About Tawana (ASX & JSE: TAW)
Tawana Resources NL is an iron ore focused ASX and JSE-listed Company with its
principal project in Liberia, West Africa. Tawana’s 100% owned Mofe Creek Project
(“the Project”) is a new discovery in the heart of Liberia’s historic iron ore district,
located 20km from the coast and 80km from the country’s capital city and major port,
Monrovia.
Tawana is committed to becoming a mid-tier iron ore producer through the
development of the Mofe Creek Project, which covers 285km2 of highly prospective
tenements in Grand Cape Mount County. The Project hosts high-grade friable
itabirite mineralisation which can be easily upgraded to a superior quality iron ore
product in the 62-68% Fe grade range, for which there is consistent global demand,
attracting significant price premiums. The Company has concluded its maiden
resource drilling program and is well advanced in the completion of its Scoping Study
on the Mofe Creek Project. The Scoping Study will consider both an early start-up,
low capital cost project with a production rate of 1 to 2 Mtpa, as well as a longer-term
project capable of producing 5 to 10 Mtpa of premium iron ore product.
About Liberia
Liberia is a democratic West African country with a modern and transparent mining
code and a government proactively engaged with the mining industry to help unlock
the value of its potential mineral wealth. Her Excellency President Ellen Johnson
Sirleaf was Africa’s first elected female head of state in 2005 and was re-elected in
November 2011 for a second term. The country is hugely prospective for minerals
exploration and production, hosting several world-class iron ore deposits. Liberia has
historically been the largest exporter of iron ore in Africa and was the 5th largest iron
ore producer globally during the 1960’s to 1980’s.
For further information please contact:
Lennard Kolff
Managing Director
Tel: +61 7 3510 2115
Mob: +61 424 942 589
Detailed information on all aspects of Tawana’s projects can be found on the
Company’s website www.tawana.com.au.
31 March 2014
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Competent Persons Statement
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Len Kolff and Iain Macfarlane, who are members of the Australian Institute of
Geoscientists. Len Kolff is a full-time employee of the Company and has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Iain Macfarlane is a full-time employee of Coffey
Mining Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ Len
Kolff and Iain Macfarlane consent to the inclusion in the report of the matters based on his information in the form
and context in which it appears. Relevant CP initials are presented under the competent person column in the
attached JORC code 2012 Table 1.
Forward Looking Statement
This report may contain certain forward looking statements and projections regarding estimated, resources and
reserves; planned production and operating costs profiles; planned capital requirements; and planned strategies
and corporate objectives. Such forward looking statements/projections are estimates for discussion purposes
only and should not be relied upon. They are not guarantees of future performance and involve known and
unknown risks, uncertainties and other factors many of which are beyond the control of Tawana Resources NL.
The forward looking statements/projections are inherently uncertain and may therefore differ materially from
results ultimately achieved.
Tawana Resources NL does not make any representations and provides no warranties concerning the accuracy
of the projections, and disclaims any obligation to update or revise any forward looking statements/projects based
on new information, future events or otherwise except to the extent required by applicable laws. While the
information contained in this report has been prepared in good faith, neither TAW or any of its directors, officers,
agents, employees or advisors give any representation or warranty, express or implied, as to the fairness,
accuracy, completeness or correctness of the information, opinions and conclusions contained in this
presentation. Accordingly, to the maximum extent permitted by law, none of TAW, its directors, employees or
agents, advisers, nor any other person accepts any liability whether direct or indirect, express or limited,
contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the information or for
any of the opinions contained in this presentation or for any errors, omissions or misstatements or for any loss,
howsoever arising, from the use of this presentation.
Mofe Creek Iron Ore Deposit
Summary Table - Gofolo Main In situ Mineral Resource
March 2014 OK Model
Grade tonnage distributions subdivided by JORC Code 2012 Resource Categories
Using ROUNDED figures
20% Fe lower cutoff is applied
Classification Material Tonnes Fe SiO2 Al2O3 P LOI CaO K2O MgO MnO Na2O S TiO2
Type (Mt) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
Surface Enriched Mixed Material
Inferred Cap 6.3 32.4 27.8 13.6 0.04 10.0 0.0 0.0 0.1 0.1 0.0 0.1 0.5
Iron Formation (Itabirite)
Indicated Oxidised 4.7 36.0 36.0 5.4 0.05 4.8 0.5 0.1 1.2 0.1 0.0 0.1 0.2
Fresh 5.5 37.0 41.2 1.6 0.05 1.2 0.8 0.1 1.9 0.1 0.0 0.1 0.1
Inferred Oxidised 4.1 36.4 33.8 6.3 0.05 5.5 0.6 0.1 0.9 0.1 0.0 0.1 0.2
Fresh 7.9 34.8 41.9 3.0 0.05 1.7 1.0 0.2 1.8 0.1 0.1 0.1 0.1
Total Indicated + Inferred 22.3 35.9 35.9 3.8 0.05 2.9 0.8 0.1 1.5 0.1 0.0 0.1 0.1
Metasediments etc
Inferred Oxidised 5.0 25.8 40.2 12.0 0.04 6.3 1.2 0.4 2.0 0.2 0.1 0.1 0.4
Totals
Total Indicated 10.2 36.5 38.8 3.4 0.05 2.9 0.7 0.1 1.6 0.1 0.0 0.1 0.1
Total Inferred 23.4 32.5 36.3 8.4 0.04 5.8 0.7 0.2 1.2 0.1 0.1 0.1 0.3
Total Indicated + Inferred 33.6 33.7 37.1 6.9 0.05 4.9 0.7 0.1 1.3 1.0 0.0 0.1 0.2
Table 2| Summary Table Mineral Resources Gofolo Main
Mofe Creek Iron Ore Deposit
Summary Table - Zaway In situ Mineral Resource
March 2014 OK Model
Grade tonnage distributions subdivided by JORC Code 2012 Resource Categories)
Using ROUNDED figures
Classification Materia Tonnes Fe SiO2 Al2O3 P LOI CaO K2O MgO MnO Na2O S TiO2
l Type (Mt) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
Surface Enriched Mixed Material
Inferred Cap 1.3 33.6 31.7 10.7 0.04 8.5 0.1 0.1 0.1 0.0 0.0 0.0 0.5
Iron Formation (Itabirite)
Indicated Oxidised 2.3 33.3 42.4 5.1 0.03 2.8 0.5 0.1 0.8 0.0 0.0 0.0 0.3
Fresh 3.6 33.5 44.0 3.8 0.03 0.9 0.9 0.2 1.4 0 0.0 0.0 0.2
Inferred Oxidised 2.17 32.9 41.9 5.8 0.0 3.3 0.3 0.1 0.6 0.1 0.0 0.0 0.3
Fresh 2.91 34.4 44.2 3.4 0.03 1.12 0.5 0.2 0.9 0.0 0.0 0.0 0.2
Total Indicated + Inferred 11.1 33.6 43.3 4.4 0.03 1.8 0.6 0.1 1.0 0.0 0.0 0.0 0.2
Totals
Total Indicated 6.0 33.4 43.3 4.4 0.03 1.7 0.7 0.2 1.1 0.0 0.0 0.0 0.2
Total Inferred 6.3 33.7 40.9 5.7 0.03 3.3 0.4 0.1 0.6 0.0 0.0 0.0 0.3
Total Indicated + Inferred 12.3 33.6 42.1 5.1 0.03 2.5 0.5 0.1 0.9 0.0 0.0 0.0 0.2
Table 3| Summary Table Mineral Resources Zaway
Mofe Creek Iron Ore Deposit
Summary Table - Koehnko In situ Mineral Resource
March 2014 OK Model
Grade tonnage distributions subdivided by JORC Code 2012 Resource Categories)
Using ROUNDED figures
20% Fe lower cutoff is applied
Classification Material Tonnes Fe SiO2 Al2O3 P LOI CaO K2O MgO MnO Na2O S TiO2
Type (Mt) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
Surface Enriched Itabiritic Material
Inferred Cap 6.9 36.8 33.4 8.4 0.03 4.7 0.0 0.4 0.1 0.0 0.0 0.1 0.2
Iron Formation (Itabirite)
Inferred Oxidised 3.1 30.0 45.8 7.2 0.06 2.9 0.2 0.6 0.4 0.1 0.1 0.0 0.1
1.9 31.9 47.0 3.2 0.06 0.1 1.1 1.0 2.1 0.0 0.2 0.0 0.1
Fresh
Total Indicated + Inferred
Metasediments etc
Total Indicated Oxidised 4.1 21.6 53.0 9.7 0.05 3.0 0.4 1.5 1.0 0.0 0.2 0.0 0.2
Totals
Total Inferred 16.0 31.0 42.5 7.9 0.04 3.4 0.3 0.8 0.6 0.0 0.1 0.0 0.2
Table 4 | Summary Table Mineral Resources Koehnko
The following extract from the JORC Code 2012 Table 1 is provided for compliance with the Code
requirements for the reporting of Mineral Resources:
(CPs: LK Len Kolff; IM Iain Macfarlane)
SECTION 1 SAMPLING TECHNIQUES AND DATA (Criteria in this section apply to all succeeding
sections).
Criteria JORC Code Explanation Commentary Competent
Person
Sampling -Nature and quality of sampling (eg cut -The Mofe Creek deposits were sampled LK
techniques channels, random chips, or specific using Reverse Circulation (RC) and HQ3
specialised industry standard measurement diamond drill holes (DD) on a nominal 200 x
tools appropriate to the 60m grid spacing. A total of 97 RC drill
minerals under investigation, such as down holes were drilled for 7,781m during two
hole gamma sondes, or phases of drilling in 2013 and 2013-2014. A
handheld XRF instruments, etc). These total of 22 RC holes for 2,418m was drilled
examples should not be taken as during the 2013 programme and 33 RC
limiting the broad meaning of sampling. holes for 5,362m during the 2013-2014
-Include reference to measures taken to programme. Sampling techniques and logging
ensure sample representivity and the were common to both phases of RC whilst the
appropriate calibration of any easurement 2013 programme analyses were
tools or systems used. conducted by ALS Liberia/Ireland and the
- Aspects of the determination of 2013-2014 programme analyses by SGS
mineralisation that are Material to the Liberia.
Public Report. - The DD was used for metallurgical
- In cases where ‘industry standard’ work samples, geotechnical logging and to ‘twin’
has been done this would be the RC
relatively simple (eg ‘reverse circulation drill holes. A total of 17 DD drill holes were
drilling was used to obtain 1m samples drilled for 1,229.73m during the 2012-
from which 3kg was pulverised to produce 2013 programme.
a 30g charge for fire assay’). In other cases - RC samples were taken at consecutive 1m
more explanation may be required, such as intervals down hole and riffle split to 1-
where there is coarse gold that has 2.5kg. 2m intervals were then combined for a
inherent sampling problems. Unusual total sample mass of 2-5kg and then
commodities or mineralisation types (eg dispatched for sample preparation at ALS
submarine nodules) may warrant Liberia and analysis at ALS Ireland during
disclosure of detailed information. the 2013 programme, and SGS Monrovia,
Liberia, for preparation and analysis during
the 2013-2014 programme.
- The majority of RC samples were dry; wet
or moist RC samples were scooped from the
1m interval sample bag and then composited
to form a 2-5kg sample representative of
the 2m interval.
-?DD twin holes were drilled at HQ3 core
diameter and sampled to geological contacts
at
a minimum sampling interval of 50cm and
maximum sampling interval of 2m. Drill
core was halved normal to the dominant
fabric using a diamond core saw and
dispatched for sample preparation and
analysis at SGS Monrovia, Liberia.
- ?2013 programme RC samples were dried
at 105o C and matt rolled in their entirety to
3.35mm; an 800g sub-sample was riffle split,
pulverised through an LM2 ‘ring and
puck’ mill with at least 85% of the material
passing 75 micron (200 Mesh); a subsample
sachet was filled by scooping from the LM2
and sent to ALS Ireland for assay.
- 2013-2014 programme 2-5kg RC samples
were crushed in their entirety to 75%
passing 2mm from which a 1.5kg riffle split
was pulverised by ring & puck mill to 85%
passing 75?m and a 200g charge scooped for
analysis.
- 1-10kg DD samples were crushed in their
entirety to 85% passing 2mm from which a
1kg riffle split was pulverised by ring & puck
mill to 85% passing 75?m and a 200g
charge scooped for analysis at SGS Liberia for
the 2013-2014 programme.
Criteria JORC Code Explanation Commentary Competent
Person
Drilling - Drill type (eg core, reverse circulation, -50-60o angled RC drilling, normal to LK
techniques open-hole hammer, rotary air blast, formation dip, was completed using a 5.5 inch
auger, Bangka, sonic, etc) and details (eg face sampling hammer operating off a multi-
core diameter, triple or standard purpose EDM-2000 drill rig with a Sullair
tube, depth of diamond tails, face- 1350cfm compressor at 500psi linked to a
sampling bit or other type, whether core Hurricane 1800cfm at 900psi booster. 6 RC
is oriented and if so, by what method, holes were drilled vertically for geology and
etc). piezometer installation.
-50-60o angled DD holes were completed
using the same multi-purpose rig with HQ3
drill rods and HQ3 standard and triple tube
barrels sample recovery on a wire line
system. One DD tail was completed but all other
holes were cored from surface.
- DD core orientation was completed within
more competent zones where possible
using the pencil and spear method. Confidence
levels between oriented runs were
assigned on the basis of 1, 2, 3 or more
consecutive run orientation lines aligned.
- RC drillhole depths range from 36m to
162m from surface and DD hole depths range
from 20m to
Drill sample -?Method of recording and assessing - Total recovered sample weight was not LK
recovery core and chip sample recoveries and recorded for the 2013 drill programme. For
results assessed. the 2013-2014 drill programme the total
-?Measures taken to maximise sample recovered RC sample weight was recorded at
recovery and ensure representative 1m intervals and used to assess sample
nature of the samples. recovery during the second phase programme.
-?Whether a relationship exists between - For the 2013-2014 drill programme
sample recovery and grade and estimated RC recovery averaged 30-40% for
whether sample bias may have occurred the due to preferential loss/gain of
fine/coarse material. top 20m and averaged 70% for the below 20m
depth samples. RC sample recovery for
the 2013 programme was not assessed;
however given the same drilling contractor,
drill rig and sampling methodology it is
considered likely to be comparable to the
2013-2014 programme.
- RC drill sample moisture content was
recorded at 1m intervals to assess whether
sample moisture could bias sample recovery
and assay. No significant bias was noted.
- A twin hole assay review of 3 DD twins was
completed and no significant bias was
noted. A twin hole photo review of 9 DD holes
was completed and confirmed significant mineralised intervals and contacts.
- Recovery of diamond drilling was recorded
on site with a weighted average 88% (total
hole) and 85% for the main mineralised
sections. ?
Crigteria JORC Code Explanation Commentary Competent
Person
- Whether core and chip samples have - All RC drill holes were geologically logged LM
been geologically and geotechnically on paper at 1m intervals for colour,
Logging logged to a level of detail to support weathering, grain size, fabric, relative hardness
appropriate Mineral Resource (based on rate of drill penetration),
estimation, mining studies and dominant mineralogy, lithology, magnetic
metallurgical studies. susceptibility, moisture content and general
- Whether logging is qualitative or observations in standard company template
quantitative in nature. Core (or costean, using a standard code library.
channel, etc) photography. - All DD drill holes were geologically logged
- The total length and percentage of the on geological intervals respectively for
relevant intersections logged.? colour, weathering, grain size, fabric,
mineralogy, lithology and general observations.
- All DD holes were geotechnically logged on
core run intervals for recovery, RQD,
lithology, weathering, strength, defects
(including number of defects, defect sets,
defect type, defect character, orientation line
reliability, defect roughness, infill type,
infill width and broken zones), structures
(including types of structures, alpha and
beta angles) and general comments.
- All DD holes were logged on 1m intervals for IM
magnetic susceptibility.
- Logging is both qualitative (e.g. colour and
lithology) and quantitative (e.g. measured
magnetic susceptibility, RQD, core structural
orientations).
- Logging is of sufficient quality and detail for
use in mineral resource studies.?
Sub- - If core, whether cut or sawn and Where dry, RC samples were riffle split during LM
sampling whether quarter, half or all core taken. drilling through a 2-tier riffle splitter at
techniques -?If non-core, whether riffled, tube 1m intervals, which were subsequently
and sampled, rotary split, etc and whether combined in their entirety to form 2m
sample sampled wet or dry. composites. The riffle splitter was cleaned
preparation - For all sample types, the nature, between each sample run.
quality and appropriateness of the - The majority of RC samples were dry,
sample however wet/moist samples were scooped
preparation technique. from
- Quality control procedures adopted the 1m interval sample bag and composited to
for all sub-sampling stages to maximise form a 2-5kg samples on 2m intervals.
representivity of samples. - 2013 programme RC samples were sent to
- Measures taken to ensure that the ALS Liberia, dried at <105oC, matt rolled to
sampling is representative of the in situ 3.35mm in their entirety, an 800g sub-sample
material collected, including for instance was riffle split, pulverised through an
results for field duplicate/secondhalf LM2 ‘ring and puck’ mill with at least 85% of
sampling. the material passing 75 micron (200
- Whether sample sizes are appropriate Mesh) and a final subsample scooped into a
to the grain size of the material being sample sachet and sent for assay at ALS
sampled.? Ireland of major and minor elements by XRF
fusion using method code ME-XRF21n.
- The 2013-2014 programme 2m RC
composite samples were bagged and sent to
SGS
Laboratory, Monrovia, Liberia for preparation
and assay. 2-5kg RC samples were dried
and crushed in their entirety to 75% passing
2mm from which a 1.5kg riffle split was
pulverised by ring & puck mill to 85% passing
75 m and a 200g charge scooped into a
sachet for analysis.
- DD core was sawn perpendicular to fabric
using a diamond core saw and the 1-10kg
DD samples were dried and crushed in their
entirety to 85% passing 2mm from which
a 1kg riffle split was pulverised by ring & puck IM
mill to 85% passing 75?m and a 200g
charge scooped into a sachet for analysis.
- Field standards, blanks and duplicates were
inserted at a ratio of approximately 1 in
16. Certified commercial standards (low,
medium and high-grade) were sourced from
Geostats Perth with sample and particle sizes
being appropriate for the target mineral.
Blank material (barren quartzite) was sourced
locally in Monrovia, Liberia.
- The sampling techniques are considered
appropriate and provide a representative
sample for assaying.?
Criteria JORC Code Explanation Commentary Competent
Person
Quality of - The nature, quality and - Assaying of RC samples conducted by ALS LK
assay appropriateness of the assaying and used industry standard techniques. A IM
data and laboratory prepared sample (0.66 g) is fused with a 12:22
laboratory procedures used and whether the lithium metaborate – lithium tetraborate
tests technique is considered partial or total. flux which also includes an oxidizing agent
-?For geophysical tools, spectrometers, (Lithium Nitrate), and then poured into a
handheld XRF instruments, etc, the platinum mould. The resultant disk is in turn
parameters used in determining the analysed by XRF spectrometry. The XRF
analysis including instrument make analysis is determined in conjunction with a
and model, reading times, calibrations loss-on-ignition at 1000°C. The resulting
factors applied and their data from both determinations are combined to
derivation, etc. produce a “total”. If the analysis is
- Nature of quality control procedures accurate, the pre-normalised total should
adopted (eg standards, blanks, approximate 100%. Once the data have been
duplicates, external laboratory checks) reviewed and considered acceptable, the data
and whether acceptable levels of may be normalised (except for the LOI) if
accuracy (ie lack of bias) and precision required, before the final results are reported.
have been established. ALS QC protocol requires that each batch
of 40 samples analysed include a reagent blank,
2 replicate determinations and 2
standard materials.
- Assaying of RC and DD samples conducted
by SGS used industry standard techniques. All
assaying conducted by lithium metaborate /
lithium tetraborate mixture digest and XRF
finish for major elements and Thermo
Gravimetric Analysis (TGA) for loss on ignition.
Certified standards, blanks and field duplicates
were inserted every 50th sample by
Tawana geologists in the field. SGS laboratory
conducts QA/QC on sample analysis; 1
reagent blank in 40, 1 preparation blank (prep
process blank) in 40, 1 weighed replicate
in 40, 1 preparation duplicate (re-split) in 40
and 1 Standard Reference Material in 40.
SGS laboratory conducts internal QA/QC on
sample preparation with every 50th sample
screened to confirm % passing 2 mm and 75
m; crusher and pulverizers are cleaned
with barren material at the start of every batch
and % dust loss is determined once per
week.
- The Tawana QAQC sample results are
assessed from the certificated laboratory
reports
and show acceptable levels of accuracy and
precision with respect to known values in
the case of standards and blanks, and the
correlated duplicate and prime samples.
- Coffey has completed an independent
review of the available QAQC data for both the
2013 and 2013-2014 drill programs and
determined that the data quality is fit for
purpose...
Verification - The verification of significant - Alternative company personnel have LK
of intersections by either independent or verified significant intersections by direct
sampling alternative company personnel. correlation with available drill core photos and
and - The use of twinned holes. geological logs.
assaying - Documentation of primary data, data - A twinhole and metallurgical programme of
entry procedures, data verification, 12 DD holes was completed; however only
data storage (physical and electronic) twin assay data for 3 pairs was available. Twin
protocols. hole DD assays are comparable with the
- Discuss any adjustment to assay data. - RC holes. Inspection of mineralised intervals
and geological contacts within DD hole core
photographs shows positive correlation with
RC hole intersections.
- No adjustments have been made to the
assay data.
- Coffey is satisfied that the verification
programme using twin holes, although limited,
is
relevant and does not indicate any possible
issues. IM
Location of -Accuracy and quality of surveys used - Drillhole collars were surveyed using DGPS LK
data to locate drillholes (collar and by a registered surveyor (Geosurvey
points down-hole surveys), trenches, mine Systems) and tied into a UTM WGS84_29N grid.
workings and other locations used in - Survey control stations have been
Mineral Resource estimation. established within the prospect areas.
-Specification of the grid system used. -Downhole surveys for the 2013-2014
-Quality and adequacy of topographic programme were completed on all drillholes
control. using
a Reflex Gyrosmart survey system installed
with Gyro Gimmit 5 software that
automatically carries out and checks QAQC
after each survey. If the QAQC fails, the
survey is re-run. No down-hole surveys were
carried during the 2013 programme.
- The surface topography used in the resource
has been generated from a low accuracy
survey derived from aerial magnetic studies;
the locations around the prospects were IM
better defined using collar positional data.
Coffey recommends that a DTM of the main
areas accurate to 1m is prepared in the future.
The topographic control is adequate for
the current phase of works.
Data Data spacing for reporting of - The drilling was conducted on an LK
spacing Exploration Results. approximate 200m x 60m NW-SE orientated
and - Whether the data spacing and grid for
distribution distribution is sufficient to establish the the Gofolo Main and Koehnko deposits and
degree of geological and grade continuity 200m x 50m E-W orientated grid for the
appropriate for the Mineral Zaway deposit. Some small areas of infill
Resource and Ore Reserve estimation drilling to 100x50m spacing were completed at
procedure(s) and classifications the Zaway deposit to close off mineralisation.
applied. -All RC drilling was sampled at 1m intervals.
-Whether sample compositing has been These samples were manually composited to
applied.? 2m intervals for assay. The 2m sample interval
is considered sufficient to define
geological and grade continuity for the mineral
resource definition.
-DD holes were drilled at 1.5m runs through
the overburden and at 3m runs to end of hole
in more competent materials. All DD drilling
was sampled to geological intervals with a
minimum 50cm and maximum 2m sample
interval.
- Whether the orientation of sampling - Drill orientations were perpendicular to LK
Orientation achieves unbiased sampling of structures at each individual prospect and the
of possible structures and the extent to majority of drillholes intersected true or near-
data in which this is known, considering the true mineralisation widths.
relation deposit type. -Good outcrop and surface structural
to - If the relationship between the drilling mapping provides confidence that drilling was
geological orientation and the orientation of completed perpendicular to structures.
structure key mineralised structures is considered -RC holes along the south-west flank of
to have introduced a sampling Zaway were recognised to have drilled partly
bias, this should be assessed and down-dip and accordingly DD holes were
reported if material.? drilled in the opposite orientation to assess
mineralised structures.
- Overall, the dominant drilling orientation is
considered to not have introduced a
sampling bias.
- Two geotechnical DD holes were completed
at each prospect in the opposite orientation
to all other RC and DD holes to check for any
possible geotechnical sampling bias. No
significant bias was recorded.?
Sample - The measures taken to ensure sample - All sample batches were bagged, packed and LK
security security. transported from the drill site to the
laboratory by dedicated Tawana personnel.
Audits or - The results of any audits or reviews of - Sampling techniques and data were LK
reviews sampling techniques and data.? regularly reviewed by internal company staff.
-Coffey has reviewed sampling, logging and
surveying protocols during the site visit and IM
has carried out a limited audit of the SGS
laboratory in Monrovia. Coffey is satisfied that
all sampling, logging?
SECTION 2 REPORTING OF EXPLORATION RESULTS (Criteria listed in the preceding section also
apply to this section).
Criteria JORC Code Explanation Commentary Competent
Person
Mineral Type, reference name/number, location - MEL12029 is located within the Grand Cape LK
tenement and ownership including Mount and Bomi counties of
and agreements or material issues with third Liberia and is 100% held by Tawana Liberia
land tenure parties such as joint Inc, a wholly owned subsidiary
status ventures, partnerships, overriding of Tawana Resources NL.
royalties, native title interests, - There are no known impediments or
historical sites, wilderness or national material issues related to security of
park and environmental tenure at the time of reporting.
settings.
- 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.
Exploration - Acknowledgment and appraisal of - The Mofe Creek project is a grassroots LK
done by exploration by other parties. discovery with no previous mineral
other exploration or other work completed.?
parties
Geology -Deposit type, geological setting and - The Mofe Creek project is characterised by a LK
style of mineralisation.? series of itabirite hosted iron
ore deposits of likely Archean or
Palaeproterozoic age as possible strike
continuations of the historic Bomi Hills and
Bong Range mines.
- Mineralisation is hosted within banded iron
formations (BIFs) that have
undergone regional metamorphism and
recrystallization to itabirite and
likely additional recrystallization to coarse
grained, coarsely banded
magnetite-hematite itabirite as seen today. A
minimum of one and up to
three major itabirite bands are recognised
stratigraphically of both silicate
and oxide iron formation facies and
interbedded with metasediments
(variably garnet overprinted), Fe rich mafics
and quartzites. Collectively the
iron units and interbedded metasediments can
be considered a ‘greenstone’
belt that unconformably overlies granite/gneiss
basement.
- The sequence has been folded and faulted
through at least two major
phases of deformation causing recrystallization,
increase in average grain
size and potential enrichment of the itabirite
units.
- The sequence has then been subject to
intense tropical weathering causing
oxidation of magnetite to hematite, and
variable hydration to goethite and
limonite within the upper 30-60m thick
weathering profile.
- Some minor faults are recognised in the
Gofolo Main prospect but are not
considered to have a major influence on the
currently established resource;
they will be incorporated into resource
modelling when further infill
drilling has become available.
Drillhole - A summary of all information material - All relevant information material to the LK
Information to the understanding of understanding of exploration
the exploration results including a results has been included within the body of
tabulation of the following the announcement or as rmation for all Material drillholes: appendices.
-easting and northing of the -No information has been excluded.
drillhole collar -No exploration drilling results are reported
-elevation or RL (Reduced Level – as part of this submission.
elevation above sea level in -Given the style and nature of mineralisation
metres) of the drillhole collar reported, extreme effects due
to volume variance (“nugget effect”) are
-dip and azimuth of the hole considered low and not significant
-down hole length and interception to the style of mineralisation being reported.
depth -No metal equivalent grades have been
-hole length reported.
-If the exclusion of this information is
justified on the basis that
the information is not Material and this
exclusion does not
detract from the understanding of the
report, the Competent
Person should clearly explain why this is
the case.
Data In reporting Exploration Results, No exploration drilling results are reported as LK
aggregation weighting averaging techniques, part of this submission.
methods maximum and/or minimum grade - Given the style and nature of mineralisation
truncations (eg cutting of high reported, extreme effects due
grades) and cut-off grades are usually to volume variance (“nugget effect”) are
Material and should be considered low and not significant
stated. to the style of mineralisation being reported.
- Where aggregate intercepts - No metal equivalent grades have been
incorporate short lengths of high reported.
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 should be clearly stated.
Relationship - These relationships are particularly - The majority of drilling intercepts are LK
between important in the reporting of broadly perpendicular to strike and
mineralisation Exploration Results. dip of structures and mineralised units;
widths and - If the geometry of the mineralisation drilling results are near-true to true
intercept with respect to the drillhole widths of mineralisation.
lengths 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 - All relevant plan maps and typical cross- LK
scales) and tabulations of sections have been included in the
intercepts should be included for any body of the announcement.
significant discovery being
reported These should include, but not
be limited to a plan view
of drillhole collar locations and
appropriate sectional views.
Balanced -?Where comprehensive reporting of - Where exploration drilling results have LK
reporting all Exploration Results is not been reported; all results are
practicable, representative reporting of reported with no exclusions.
both low and high grades - Where surface rock chip samples or hand
and/or widths should be practiced to auger results are reported, the
avoid misleading reporting total number of samples collected, the average
of Exploration Results. and a range of assay results
have been reported.
Other - Other exploration data, if meaningful - All relevant regional and prospect scale LK
substantive and material, should be geological observations and
exploration reported including (but not limited to): geophysical survey results are included in
data geological observations; relevant announcements
geophysical survey results; geochemical accordingly.
survey results; bulk - Reconnaissance metallurgical and follow-
samples – size and method of treatment; up test-work programmes
metallurgical test completed to date have utilised RC samples
results; bulk density, groundwater, completed during the 2013
geotechnical and rock programme. Sample size and method of
characteristics; potential deleterious or treatment is considered sufficient
contaminating for the reconnaissance phase test-work.
substances. - Geotechnical logging has been completed
by in-house trained staff using
industry recognised practices. Geotechnical
logging has been independently reviewed and
audited by Coffey with no significant issues
identified.
- Dry HQ3 whole core bulk density was
measured by ALS laboratories, Perth,
under stringent laboratory conditions. Sixty
(60) measurements of
representative core for each lithology and
degree of weathering were taken
from full HQ3 core metallurgical samples
utilising the wax immersion
method.
Further work - The nature and scale of planned - Further work has been defined for resource LK
further work (eg tests for lateral strike extensions, resource
extensions or depth extensions or large- infill drilling to increase levels of confidence
scale step-out drilling). and exploration drilling on
- Diagrams clearly highlighting the additional target footprints.
areas of possible extensions, -?Approximately 12,000m of infill and strike
including the main geological extension RC and 3,000m of DD
interpretations and future drilling is planned for the next drill phase in support of
areas, provided this information is not a pre-feasibility study.
commercially sensitive. - Metallurgical test-work will be carried out
on representative, full diamond
core samples for subsequent work.
Approximately 3,000kg of HQ3 drill
core from Gofolo Main and Zaway is currently
with ALS Perth for extensive
test-work in support of the Scoping Study.
- Additional diamond twinning and infill DD
holes will be completed to
increase confidence in geological
interpretations and RC sample
representivity to alleviate poor recovery
within the weathered horizon.
- Routine addition of density measurements
of all material types on site will
be ongoing.
Database - Measures taken to ensure that data - All logging was carried out at the drill rig LK
integrity has not been corrupted by, for RC drilling and at the core shed
for example, transcription or keying for DD. except recovery logging which was
errors, between its initial recorded during the DD drilling.
collection and its use for Mineral All logging was recorded in hard copy format
Resource estimation purposes. and then entered manually
-?Data validation procedures used. into spreadsheet format using company
standardised logging sheets and
codes. Copies of all hardcopy logs and assay
certificates are kept on site and
at the Monrovia office.
- Routine checks are conducted by a
dedicated company geologist. IM
- Coffey has conducted its own validation
process on the data, with checks
looking for missing/overlapping intervals,
missing data, extreme values. No
material issues were noted.
Site visits - Comment on any site visits - Iain Macfarlane of Coffey visited the site IM
undertaken by the Competent Person during December 2013. During the
and the outcome of those visits. visit, diamond drilling only was being carried
- If no site visits have been undertaken out and core logging
indicate why this is the procedures were observed. Core sampling was
case. not being undertaken at the
time since the diamond core saw was not yet
in place. Data from the RC
drilling undertaken at an earlier date was
reviewed. Operations and
processes observed were judged as
undertaken to industry standard.
Recorded RC recoveries were reviewed and
were found to be acceptable for
the deeper parts of the drillholes. Recoveries
in the top 20m of weathered
material were less favourable (30% to 40%) in
much of the Phase 2 drilling
(Phase 1 RC recoveries were not recorded).
- Iain Macfarlane of Coffey also visited the
SGS laboratory in Monrovia to
validate the sample prep and analytical
procedures. No material sample
prep and analytical issues were noted.
Geological - Confidence in (or conversely, the - Confidence in the geological model is LK
interpretation uncertainty of) the geological adequate and based on a combination
interpretation of the mineral deposit. of detailed surface geological mapping,
-Nature of the data used and of any sectional interpretation by Tawana
assumptions made. Resources and West African Geoservices
- The effect, if any, of alternative (WAGS), which is supported by
interpretations on Mineral comparison with down hole multi-element
Resource estimation. geochemistry and magnetic
- The use of geology in guiding and susceptibility and a detailed photo geology
controlling Mineral Resource review of DD holes.
estimation. - Lithology logging of RC drill chips is
- The factors affecting continuity both challenging due to the masking effects
of grade and geology. of deep weathering in a tropical environment.
A high degree of dependence
on multi-element geochemistry and magnetic
susceptibility was used to
interpret traceable units in conjunction with
logging and surface mapping.
- A detailed review of DD holes and
correlation between DD holes was
completed utilising high-resolution core
photographs, magnetic
susceptibility and down hole assays. Mappable
units and a stratigraphic
model compared favourably with the cross-
sectional interpretations and
provide additional confidence in the geological
interpretation. The
geological interpretation is taken directly into
the resource/volume model
by wireframing of the relevant geological and
stratigraphic units.
Dimensions - The extent and variability of the - The classified portion of the Gofolo Main IM
Mineral Resource expressed as resource has a strike extent of
length (along strike or otherwise), plan approximately 2,000 m. A total strike length of
width, and depth below 1,100m is indicated at
surface to the upper and lower limits of Koehnko and of 1,400m at Zaway. At all
the Mineral Resource. prospects, vertical extents of
mineralisation are restricted to current
drillhole depths in most cases. In
general, drillholes extend to nominally less
than 100m below surface.
Estimation - The nature and appropriateness of - Ordinary Kriging (OK) is the estimation IM
and the estimation technique(s) technique utilised for all estimated
modelling applied and key assumptions, including domains. No grade values were cut. Domaining
techniques treatment of extreme was carried out utilising
grade values, domaining, interpolation surface geological mapping, sectional
parameters and geological and structural
maximum distance of extrapolation from interpretation by Tawana Resources and West
data points. If a African Geoservices (WAGS),
computer assisted estimation method down hole multi-element geochemistry and
was chosen include a magnetic susceptibility and
description of computer software and detailed photo geology review of DD holes.
parameters used. Extrapolation distances were
- The availability of check estimates, generally in the order of 50m or less for all
previous estimates and/or resource estimates. No diamond
mine production records and whether drillhole analytical data was used for the
the Mineral Resource estimate, the results from their
estimate takes appropriate account of sampling not being available at time of
such data. estimation. During resource
- The assumptions made regarding classification, extrapolation beyond the range
recovery of by-products. of the variogram structures is
- Estimation of deleterious elements or not reported. Vulcan and Isatis software were
other non-grade variables used for
of economic significance (eg sulphur for interpretation/estimation and variography
acid mine drainage respectively.
characterisation). -No previous estimates or mine production
- In the case of block model estimates are in existence and the
interpolation, the block size in currently published resource constitutes a
relation to the average sample spacing Maiden resource. A separate
and the search employed. block model check estimate was completed
- Any assumptions behind modelling of sing a different parent cell
selective mining units. discretisation system and resulted in virtually
- Any assumptions about correlation the same resource.
between variables. -The primary commodity considered in the
-?Description of how the geological Mineral Resource estimate is Fe.
interpretation was used to A full suite of elements was also estimated
control the resource estimates. (SiO2, Al2O3, P, LOI, CaO, K2O,
- Discussion of basis for using or not MgO, MnO, Na2O, S, TiO2) by OK with some of
using grade cutting or those elements considered to
capping. be deleterious (P, SiO2 and Al2O3).
- The process of validation, the - A parent block size of 100m along strike,
checking process used, the 30m down dip and 5m normal to
comparison of model data to drillhole the plane of mineralisation were employed at
data, and use of all three deposits. These were
reconciliation data if available. selected to approximate half the drillhole
spacing which is a nominal 200m
by 60m.
-The resources are expected to be mined
using open pit technology. A
subcelling of 2m x 2m x 1m was adopted to
adequately define the geometry
of the thinner geological units. Selective
mining units were not defined at
this stage and the published Maiden resource
is considered to represent a
Global in situ resource model fit for conceptual
mining studies.
- No grade capping was employed; this was
not required for the major
elements and may be considered for some of
the minor elements in future
studies.
- The Mineral Resource estimates were
validated through comparison of
input sample and estimated block grades
visually and statistically. The
estimate was also validated by looking at
number of holes, number of
samples used, average distance to informing
samples and other
geostatistical parameters, eg. kriging
efficiency.
Moisture - Whether the tonnages are estimated - Tonnage estimates are based on insitu dry LK/IM
on a dry basis or with bulk density measurements.
natural moisture, and the method of
determination of the
moisture content.
Cut-off - The basis of the adopted cut-off - A nominal reporting cut-off grade of 20% IM
parameters grade(s) or quality parameters Fe has been chosen at this stage,
applied. based on initial financial considerations.
Further work via mining studies is
required to define a series of economic mining
cutoffs.
Mining - Assumptions made regarding Selective mining units were not defined, or IM
Factors possible mining methods, corrected for using a change-ofsupport
or minimum mining dimensions and method, in this resource estimate. No
assumptions internal (or, if applicable, assumptions have been made
external) mining dilution. It is always regarding recoverable resources other than
necessary as part of the that mining will be based on
process of determining reasonable direct shipping material produced not highly
prospects for eventual selectively from an open pit
economic extraction to consider operation as metallurgical results show that
potential mining methods, but the mineralisation is highly
the assumptions made regarding mining amenable to beneficiation through crushing
methods and and a gravity process.
parameters when estimating Mineral
Resources may not always
be rigorous. Where this is the case, this
should be reported with
an explanation of the basis of the mining
assumptions made.
Metallurgical - The basis for assumptions or Preliminary metallurgical test-work results on LK
factors or predictions regarding metallurgical representative RC samples
assumptions amenability. It is always necessary as including optical mineralogy studies to
part of the process of determine major iron and waste
determining reasonable prospects for mineralogy indicates that mineralisation is
eventual economic highly amenable to
extraction to consider potential beneficiation through crushing and gravity
metallurgical methods, but the process.
assumptions regarding metallurgical - Metallurgical test-work currently
treatment processes and underway at ALS Perth utilising 3,000kg
parameters made when reporting of full HQ3 drill core will assess both physical
Mineral Resources may not and chemical characteristics
always be rigorous. Where this is the of the mineralisation and explore a range of
case, this should be beneficiation products at
reported with an explanation of the basis various crush sizes.
of the metallurgical
assumptions made.
Environmental - Assumptions made regarding - Baseline environmental and social studies LK
factors or possible waste and process have been mapped out by an
assumptions residue disposal options. It is always independent consultant on the basis of
necessary as part of the detailed site visit and desk top
process of determining reasonable review of neighbouring projects.
prospects for eventual - No assumptions have been made in the
economic extraction to consider the announcement of the maiden
potential environmental resource estimate; however, the baseline
impacts of the mining and processing environmental and social studies
operation. While at this will assess waste and process residue disposal
stage the determination of potential options Detailed baseline
environmental impacts, monitoring in support of a pre-feasibility
particularly for a greenfields project, study will be commenced during
may not always be well 2014.
advanced, the status of early -?Coffey is of the opinion that there are
consideration of these potential reasonable prospects for eventual
environmental impacts should be economic extraction of the resource based on
reported. Where these aspects the following assumptions:
have not been considered this should be the majority of the resources is equivalent to
reported with an direct digging and shipping of
explanation of the environmental hematite-rich material, at depths of less than
assumptions made. 100m to 150m below surface,
with no apparent water table mining issues
other than wet conditions as
expected in a tropical environment, with no
apparent deleterious elements
prohibiting future exploitation using a
reasonable standard metallurgical
process, and sufficiently close to relevant
infrastructure and availability of
sufficiently skilled local staff.
Bulk density - Whether assumed or determined. If Dry HQ3 whole core bulk density was LK / IM
assumed, the basis for the measured by ALS laboratories, Perth,
assumptions. If determined, the method under stringent laboratory conditions. Sixty
used, whether wet or (60) measurements of
dry, the frequency of the measurements, representative core for each lithology and
the nature, size and degree of weathering were taken
representativeness of the samples. from full HQ3 core metallurgical samples
- The bulk density for bulk material utilising the wax immersion
must have been measured by method. Coffey is of the opinion that the
methods that adequately account for current dry rock density database
void spaces (vugs, porosity, needs to be augmented in future but that the
etc), moisture and differences between current
rock and alteration zones
within the deposit.
-?Discuss assumptions for bulk density
estimates used in the
evaluation process of the different
materials.
Classification - The basis for the classification of the - Mineral Resource classification was IM
Mineral Resources into developed from the confidence levels of
varying confidence categories. a number of key criteria including topography,
- Whether appropriate account has drilling methods, geological
been taken of all relevant understanding and surface/sectional
factors (ie relative confidence in interpretation, sampling, data density
tonnage/grade estimations, and location, grade estimation, quality of the
reliability of input data, confidence in block estimates and
continuity of geology and uncertainties to mineralogical recoveries.
metal values, quality, quantity and Geological continuity as observed
distribution of the data). from section to section and sample spacing in
- Whether the result appropriately relation to the selected parent
reflects the Competent block size were deemed to be the major
Person’s view of the deposit. resource classification indicators.
- The area of Indicated Mineral Resource and
Inferred Mineral Resource is
considered appropriately defined on drillhole
section and through a
wireframe volume. The Classification
wireframes have been used to flag the
block model for the final classification.
- In the opinion of the Competent Person the
resulting Mineral Resource
estimate provides an appropriate global
resource representation of the
deposits amenable to open pit mining methods
to average depths of 100m
To150m below the topographic surface.
Audits or - The results of any audits or reviews - No independent audit of the 2013 Mineral LK
reviews of Mineral Resource Resource has been completed at
estimates. this time. This will be carried out later in the
process.
Discussion of - Where appropriate a statement of the - The Mineral Resource has been classified as IM
relative relative accuracy and a combination of Indicated and
accuracy/ confidence level in the Mineral Resource Inferred Mineral Resource.
confidence estimate using an - The resource estimate of grade and
approach or procedure deemed tonnage is based on the assumption that
appropriate by the Competent standard open cut mining methods will be
Person. For example, the application of applied and that high confidence
statistical or grade control (e.g. dedicated RC grade control
geostatistical procedures to quantify the drilling) will be available for
relative accuracy of the final ore-waste delineation.
resource within stated confidence limits, - The Mineral Resource estimate is based on
or, if such an approach a realistic parent cell size and
is not deemed appropriate, a qualitative should be considered a global resource
discussion of the factors estimate and is not a recoverable
that could affect the relative accuracy resource estimate based on a final SMU block
and confidence of the estimate. size.
-The relative accuracy and confidence of the
- The statement should specify Mineral Resource estimate is
whether it relates to global or local inherent in the Mineral Resource Classification
estimates, and, if local, state the relevant as coded in the block model;
tonnages, which should no mine production data is available at this
be relevant to technical and economic stage for reconciliation and/or
evaluation. comparative purposes.
Documentation should include
assumptions made and the
procedures used.
- These statements of relative accuracy
and confidence of the
estimate should be compared with
production data, where
available.
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