Wrap Text
The Moonlight Project – Updated Mineral Resource estimate
FERRUM CRESCENT LIMITED
(Previously Washington Resources Limited)
(Incorporated and registered in Australia and registered as an external company in the Republic of
South Africa)
(Registration number A.C.N. 097 532 137)
(External company registration number 2011/116305/10)
Share code on the ASX: FCR
Share code on AIM: FCR
Share code on the JSE: FCR ISIN: AU000000FCR2
(“Ferrum Crescent” or “the company” or “the group”)
The Moonlight Project – Updated Mineral Resource estimate in terms of JORC (2012)
Highlights
- Mineral Resource estimate for the Moonlight Project, previously stated in terms of JORC
(2004), has been updated in terms of the requirements of JORC (2012);
- The updated Mineral Resource provides a firm foundation for the re-commencement of the
Bankable Feasibility Study for the Moonlight Project;
- The grade and tonnage estimates within each classification category remain unchanged, but
the assumptions used in the previous estimates have been updated and explicitly reported,
as required in JORC (2012);
- The Total Mineral Resource is estimated as 307Mt at 26.9% Fe, including:
o 172.1Mt Inferred at 25.3% Fe, 83.0Mt Indicated at 27.4% Fe and 52.6Mt Measured
at 31.3% Fe
- Geological losses of 5%, Fe cut-off of 16% and a variable depth constraint from surface to
100m and 250m, depending on the geometry of the mineralization.
Ferrum Crescent, the ASX, AIM and JSE quoted iron ore developer today announces the completion
of an update to the Mineral Resource estimate for the Moonlight Iron Ore Project (“Moonlight” or
“the Project”). The Mineral Resource estimate is now stated in terms of JORC (2012) and hence can
inform the re-commencement of the Project’s Bankable Feasibility Study (“BFS”).
Mineral Corporation Consultancy Pty Ltd (“The Mineral Corporation”) undertook the update of the
Mineral Resource estimate, which was previously stated in terms of JORC (2004). The Mineral
Corporation updated all of the assumptions used in determining the previous estimate, with respect
to the requirements of JORC (2012). It determined that the Mineral Resource classification criteria
imposed in the previous estimate was still valid. Furthermore, the additional reporting requirements
contained in JORC (2012) have been complied with in the updated Mineral Resource estimate
report.
Within a cut off grade of 16% Fe, geological losses of 5% and a depth constraint of between 100m
and 250m from surface, (depending upon dip and the number of zones present), The Mineral
Corporation has determined that there are reasonable prospects for eventual economic extraction,
and hence estimate the Mineral Resource as follows:
Category Gross Net (attributable to Ferrum Crescent at 97%)
Tonne Fe (%) SiO2 Al2O3 Contained Tonne Fe SiO2 Al2O3 Contained Fe
(Mt) (%) (%) Fe (Mt) (%) (%) (%) (Mt)
(Mt)
Inferred 172.1 25.3 51.2 4.8 43.5 166.9 25.3 51.2 4.8 42.2
Indicated 83.0 27.4 50.1 4.0 22.7 80.5 27.4 50.1 4.0 22.1
Measured 52.6 31.3 47.3 2.5 16.5 51.0 31.3 47.3 2.5 16.0
Total 307.7 26.9 50.3 4.2 82.8 298.5 26.9 50.3 4.2 80.3
*Tonnes are rounded
A summarised description of the Mineral Resource estimation criteria, as provided in JORC (2012), is
included as an appendix to this release.
Commenting today Tom Revy, Managing Director, said: “The updated JORC (2012) resource
announced today forms an important part of our plans to progress the Moonlight BFS in 2014. Not
only is the Mineral Resource stated in terms of JORC (2012), and hence suitable to inform the more
detailed Feasibility Study work to come, but the up to date assessment of ‘reasonable prospects for
eventual economic extraction’ give us further confidence in the Project’s potential. What is
interesting about Moonlight is that the Project is about a premium, high value product, with the
potential to be mined at a low stripping ratio”.
The information in this statement that relates to Exploration Targets, Exploration Results and Mineral
Resources has been compiled by Stewart Nupen, a Competent Person who is a Fellow of the Geological Society
of South Africa and a registered Professional Natural Scientist with the South African Council for Natural
Scientific Professionals. Stewart Nupen is employed by The Mineral Corporation, an independent consulting
firm to Ferrum Crescent Limited.
Stewart Nupen has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken 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’.
Stewart Nupen consents to the inclusion in this statement of the matters based on his information in the form
and context in which it appears.
Appendix: Checklist of assessment and reporting criteria (from Table 1 in JORC (2012))
Criteria Explanation Observations
Section 1: Sampling techniques and Data
Sampling Nature and quality of sampling (eg cut channels, Limited information on the sampling techniques for the
techniques random chips, or specific specialised industry standard KIOL data is known.
measurement tools appropriate to the minerals under
investigation, such as down hole gamma sondes, or For the FCL exploration, sampling was limited to the
handheld XRF instruments, etc). These examples should sampling of RC chips and diamond core.
not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample Limited information on the sampling techniques for the
representivity and the appropriate calibration of any KIOL data is known.
measurement tools or systems used.
For the FCL exploration, representivity was ensured by
appropriate sub-sampling protocols.
Aspects of the determination of mineralisation that are Limited information on the sampling techniques for the
Material to the Public Report. In cases where „industry KIOL data is known.
standard? work has been done this would be relatively
simple (eg „reverse circulation drilling was used to obtain For the FCL exploration, industry standard sampling
1 m samples from which 3 kg was pulverised to produce techniques were adopted. RC samples (1m-2m) were
a 30 g charge for fire assay?). In other cases more riffle split on site and diamond core samples were
explanation may be required, such as where there is halved with a diamond saw.
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of detailed
information.
Criteria Explanation Observations
Drilling techniques Drill type (eg. core, reverse circulation, open-hole Drilling data from KIOL and three phases of FCL
hammer, rotary air blast, auger, Bangka etc.) and exploration inform the estimates.
details (eg. core diameter, triple or standard tube, depth
of diamond tails, face-sampling bit or other type, The drilling comprised open hole, RC and diamond core
whether core is oriented and if so, by what method, etc. drilling and was all vertical. A total of 122 RC holes and
89 diamond core holes were accepted for the estimates.
Drill sample Method of recording and assessing core and chip sample Limited information on the sample recovery for the KIOL
recovery recoveries and results assessed. data is known.
Measures taken to maximise sample recovery and With the exception of surficial rubble, the sample
ensure representative nature of the samples. recovery through the mineralised zones for the FCL
exploration was acceptable.
Whether a relationship exists between sample recovery No recovery information for the KIOL database is
and grade and whether sample bias may have occurred known. Due to the generally high sample recovery, this
due to preferential loss/gain of fine/coarse material. relationship was not investigated.
Logging Whether core and chip samples have been geologically The KIOL data included electronic codes for the main
and geotechnically logged to a level of detail to support lithological unit, certain sub-units, and the core bedding
appropriate Mineral Resource estimation, mining studies angles.
and metallurgical studies.
Whether logging is qualitative or quantitative in nature. All geological information during FCL exploration was
Core (or costean, channel, etc) photography. logged in acceptable detail, and stored in an MS Access
database. This included lithological, structural and
geotechnical information.
The total length and percentage of the relevant In both KIOL and FCL exploration, all drilling was
intersections logged. logged.
Sub-sampling If core, whether cut or sawn and whether quarter, half No information regarding sub-sampling is known for the
techniques and or all core taken. KIOL holes.
sample preparation
For the FCL data, core was cut.
If non-core, whether riffled, tube sampled, rotary split No information regarding sub-sampling is known for the
etc. and whether sampled wet or dry. KIOL holes.
For FCL data, RC samples were split by rotary or riffle
splitters.
For all sample types, the nature, quality and No information regarding sub-sampling is known for the
appropriateness of the sample preparation technique. KIOL holes.
For the FCL data, the protocols are considered
acceptable for the style of mineralisation
Quality control procedures adopted for all sub-sampling No information regarding sub-sampling is known for the
stages to maximise representivity of samples. KIOL holes.
For the FCL data, the protocols are considered
acceptable for the style of mineralisation
Measures taken to ensure that the sampling is No information regarding sub-sampling is known for the
representative of the in situ material collected. KIOL holes.
For the FCL data, the protocols are considered
acceptable for the style of mineralisation
Whether sample sizes are appropriate to the grain size No information regarding sub-sampling is known for the
of the material being sampled. KIOL holes.
For the FCL data, the protocols are considered
acceptable for the style of mineralisation
Quality of assay The nature, quality and appropriateness of the assaying No information on the quality of assay data for the KIOL
data and laboratory and laboratory procedures used and whether the data was obtained.
tests technique is considered partial or total.
Primary samples and quality control samples were
submitted for analysis to Genalysis Laboratory Services
(Johannesburg) for analysis by Intertek Utama Services
(Jakarta).
For geophysical tools, spectrometers, handheld XRF No non-laboratory techniques have been applied.
instruments, etc, the parameters used in determining
the analysis including instrument make and model,
reading times, calibrations factors applied and their
derivation, etc.
Nature of quality control procedures adopted (eg No information on the quality of assay data for the KIOL
standards, blanks, duplicates, external laboratory data was obtained.
checks) and whether acceptable levels of accuracy (ie
lack of bias) and precision have been established. The FCL samples were analysed at an accredited
laboratory (Genalysis / Intertek), and appropriate
standards, blanks and duplicates inserted in the sample
stream. The Mineral Corporation has reviewed the
results from these control samples and considers the
accuracy and reliability of the analyses to be acceptable.
Verification of The verification of significant intersections by either The KIOL data was verified by means of the
sampling and independent or alternative company personnel. identification and re-surveying of borehole collars in the
assaying field, and by means of twin-drilling.
Criteria Explanation Observations
The use of twinned holes On the basis of the twinning, the open-hole data from
KIOL (142 holes) was considered unacceptable for
Mineral Resource estimation. The remaining RC and
diamond core drilling showed reasonably good
correlation of mineralisation depth and abundance, and
was considered acceptable.
Documentation of primary data, data entry procedures, No access to the core, nor the raw geological logs for
data verification, data storage (physical and electronic) the KIOL data is possible and the accuracy of the input
protocols. of this data into the FCL database cannot be verified.
The procedures adopted by those executing FCL?s 2008
and 2009 exploration campaigns are well documented
and the data entry and validation for those phases of
exploration is considered to be acceptable. The Mineral
Corporation supervised the 2011 exploration and
considers that portion of the database to be acceptable.
Discuss any adjustment to assay data. No adjustments to assay data were made
Location of data Accuracy and quality of surveys used to locate drill holes All FCL boreholes were surveyed by a registered
points (collar and down-hole surveys), trenches, mine workings surveyor. Of the KIOL holes, 127 collars were re-
and other locations used in Mineral Resource estimation. surveyed by a registered surveyor, and good correlation
between the historical and FCL survey locations were
found.
Specification of the grid system used. The co-ordinate system applied for the survey was the
South African Local Grid (Lo29) using the
Hartebeeshoek 1994 datum.
Quality and adequacy of topographic control. The topographic control is derived from LiDAR data and
is considered adequate.
Data spacing and Data spacing for reporting of Exploration Results. The combination of Ferrum Crescent?s exploration and
distribution. the KIOL data has provided a drillhole spacing which
ranges from 100m x 100m to 200m x 300m.
Whether the data spacing and distribution is sufficient to The data spacing and distribution is sufficient to
establish the degree of geological and grade continuity establish the degree of continuity appropriate for the
appropriate for the Mineral Resource and Ore Reserve Mineral Resources, as classified.
estimation procedure(s) and classifications applied.
Whether sample compositing has been applied Sample compositing has been applied in the Mineral
Resource estimates.
Orientation of data Whether the orientation of sampling achieves unbiased Vertical intersections are not “true” thicknesses, normal
in relation to sampling of possible and the extent to which this is to the dip of the mineralised zones;
geological known, considering the deposit type.
structures
If the relationship between the drilling orientation and As the dip is relatively shallow, and the block model was
the orientation of key mineralised structures is built in 3-dimensions, the use of vertical composites did
considered to have introduced a sampling bias, this not bias the volumetric estimates.
should be assessed and reported if material.
Sample security The measures taken to ensure sample security. No information regarding sample security is known for
the KIOL holes. For the FCL data, samples were stored
in a locked core facility until being collected for delivery
to the laboratory by courier.
Audits or reviews The results of any audits or reviews of sampling No audits of the KIOL exploration results, with the
techniques and data. exception of the verification described above have been
undertaken.
The Mineral Corporation reviewed the results of the first
two phases of Ferrum Crescent?s drilling prior to
carrying out the estimates. Phase 3 of Ferrum
Crescent?s exploration was carried out by The Mineral
Corporation.
Section 2: Reporting of Exploration Results
Mineral tenement Type, reference name/number, location and ownership FCL has an effective 97% share, in Ferrum Iron Ore
and land tenure including agreements or material issues with third (Pty) Limited, the holder of Mining Right
status parties such as joint ventures, partnerships, overriding LP30/5/1/2/2/201. The Project?s Mineral Resources are
royalties, native title interests, historical sites, wilderness entirely contained within this Mining Right. A legal due
or national park and environmental settings. diligence on the mineral title has not been conducted by
The Mineral Corporation, but The Mineral Corporation is
not aware of any issues that may prejudice the Mining
Right and the title circumstances are understood to be
sound.
The security of the tenure held at the time of reporting The Project is covered by a Mining Right that was
along with any known impediments to obtaining a executed on 10 October 2012. The Mining Right is valid
licence to operate in the area. for 30 years commencing 10 October 2012 to 9 October
2042.
Exploration done by Acknowledgment and appraisal of exploration by other Previous exploration by KIOL has been documented and
other parties parties. integrated into the FCL database.
Geology. Deposit type, geological setting and style of Rocks of the Mount Dowe Group, within the Central
mineralisation. Zone of the Limpopo Mobile Belt, are interpreted to
have been tightly-folded, parallel to the east-northeast
to west-southwest orientation of the Limpopo Mobile
Belt.
Magnetite mineralisation is identified in five mineralised
Criteria Explanation Observations
zones, which are interpreted to be the result of the
duplication by folding of one or more magnetite-bearing
layers. The mineralised zones are cut by younger faults,
which have two dominant orientations, broadly parallel
to and orthogonal to, the trend of the Limpopo Mobile
Belt.
Magnetite concentrations within the mineralised zones
are interpreted to be parallel with the contacts with the
host rocks and zones of unmineralised material are
found within the mineralised zones.
Drill hole A summary of all information material to the A summary of all material intersections is provided in
Information understanding of the exploration results including a Appendix 3.
tabulation of the following information for all Material
drill holes:easting and northing of the drill hole collar
elevation or RL (Reduced Level – elevation above sea
level in metres) of the drill hole collar dip and azimuth of
the hole down hole length and interception depth
hole length.
If the exclusion of this information is justified on the This information has not been excluded.
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 aggregation In reporting Exploration Results, weighting averaging 5m vertical borehole composites were utilised, informed
methods. techniques, maximum and/or minimum grade by an assumed minimum mining height.
truncations (eg. cutting of high grades) and cut-off
grades are usually material and should be stated.
Where aggregate intercepts incorporate short lengths of Not applicable to this grade distribution
high grade results and longer lengths of low grade
results, the procedure used for such aggregation should
be stated and some typical examples of such
aggregations should be shown in detail.
The assumptions used for any reporting of metal No metal equivalent values were considered
equivalent values should be clearly stated.
Relationship These relationships are particularly important in the These composites were not at right angles to the
between reporting of Exploration Results. If the geometry of the mineralised zones,
mineralisation mineralisation with respect to the drill hole angle is
widths and intercept known, its nature should be reported.
lengths If it is not known and only the down-hole lengths are As the dips are shallow (7° to 30° and typically less than
reported, there should be a clear statement to this 20°) and a 3-dimensional block model was used, the
effect (eg. „downhole length, true width not known?). use of vertical composites is unlikely to introduce any
bias.
Diagrams. Appropriate maps and sections (with scales) and Plans and sections of the interpretive geological model
tabulations of intercepts should be included for any are provided.
significant discovery being reported These should
include, but not be limited to a plan view of drill hole
collar locations and appropriate sectional views.
Balanced reporting Where comprehensive reporting of all Exploration All material intercepts are reported Appendix 3
Results is not practicable, representative reporting of
both low and high grades and/or widths should be
practised to avoid misleading reporting of Exploration
Results.
Other substantive Other exploration data, if meaningful and material, All know material exploration data, or summaries
exploration data should be reported including (but not . limited to): thereof, have been provided.
geological observations; geophysical survey results;
geochemical survey results; bulk samples – size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or contaminating
substances.
Further work The nature and scale of planned further work (eg. tests Recommendations for further work are provided.
for lateral extensions or depth extensions or large-scale
step-out drilling).
Diagrams clearly highlighting the areas of possible A figure showing possible extensions is included
extensions, including the main geological interpretations
and future drilling areas, provided this information is not
commercially sensitive.
Section 3: Reporting of Mineral Resources
Database integrity Measures taken to ensure that data has not been The compiled database for the estimates was housed in
corrupted by, for example, transcription or keying an MS Access database.
errors, between its initial collection and its use for
Mineral Resource estimation purposes.
Data validation procedures used. In addition to the verification and QA/QC already
described, validation of the sampling data for over-
lapping sampling intervals, duplicate samples and
spurious data was carried out.
Site visits Comment on any site visits undertaken by the Stewart Nupen has undertaken two site visits to the
Criteria Explanation Observations
Competent Person and the outcome of those visits. Project, to inspect outcrop, observe RC and diamond
If no site visits have been undertaken indicate why this drilling and sampling activities and view all of the
is the case. available diamond core. These site visits were
undertaken during the first quarter of 2012.
Geological Confidence in (or conversely, the uncertainty of) the The geological interpretation is considered appropriate
interpretation geological interpretation of the mineral deposit. for the level of estimates, and the Mineral Resource
classification takes the confidence in the interpretation
into account.
Nature of the data used and of any assumptions made. Borehole data was used for the geological
interpretation. The regional structural framework was
applied.
The effect, if any, of alternative interpretations on No alternative interpretation was considered.
Mineral Resource estimation.
The use of geology in guiding and controlling Mineral A thorough re-interpretation of the geological structure
Resource estimation. and correlation between mineralised zones was carried
out.
The factors affecting continuity both of grade and Grade continuity within zones is high. Continuity of
geology zones is affected by geological structures
Dimensions The extent and variability of the Mineral Resource D Zone is approximately 200m x 400m x 30m
expressed as length (along strike or otherwise), plan C Zone (West) is approximately 1400m x 250m x 35m
width, and depth below surface to the upper and lower C Zone (East) is approximately 1100m x 700m x 30m
limits of the Mineral Resource. B Zone is approximately 1500m x 800m x 25m
A Zone is approximately 1600m x 1200m x 17m
Estimation and The nature and appropriateness of the estimation Variograms parallel to the dip of the mineralised zones
modelling technique(s) applied and key assumptions, including were calculated and modelled. Vertical grade
techniques treatment of extreme grade values, domaining, distribution utilised downhole variograms. Variograms of
interpolation parameters, maximum distance of between 150m and 250m were obtained in the plane of
extrapolation from data points. If a computer assisted the mineralised zone and between 7m and 30m
estimation method was chosen include a description of downhole.
computer software and parameters used.
The availability of check estimates, previous estimates No check estimates or production records were available
and/or mine production records and whether the Mineral
Resource estimate takes appropriate account of such
data.
The assumptions made regarding recovery of by- No by-products are expected
products.
Estimation of deleterious elements or other non-grade All zones show low abundance of Mn, P and TiO2.
variables of economic significance (eg sulphur for acid Abundance of base metals, such as Cu, are insignificant
mine drainage characterisation).
In the case of block model interpolation, the block size Horizontal block dimensions were 50m x 50m and 5m in
in relation to the average sample spacing and the search the vertical, informed by borehole spacing and a. The
employed. block model was rotated to the average dip (12°).
Any assumptions behind modelling of selective mining Conceptual minimum mining unit had a minimum height
units. of 5m
Any assumptions about correlation between variables. No correlation between variables was assumed or
modeled
Description of how the geological interpretation was Wireframes representing the geological interpretation
used to control the resource estimates. were generated to constrain the block model. Ordinary
Kriging was employed for grade estimates. A three
stage search strategy was employed. A minimum of 5
and a maximum of 20 samples was used within the
range of the variogram for the first search. The second
search was twice the volume of the first, and the third
extended to the limits of the mineralised zones. The
search and variogram ellipse were oriented to local dip
and strike variations using “Dynamic Anisotropy” in
Datamine Studio v3.
Discussion of basis for using or not using grade cutting No cutting or capping was applied, as the composite
or capping. grades were normally distributed, and no outliers were
identified.
The process of validation, the checking process used, Plan and section plots were analysed to evaluate the
the comparison of model data to drillhole data, and use adherence of the estimation methodology to the
of reconciliation data if available. geological model. The methodology was found to
honour the grade continuity trends, which are assumed
to be parallel to the dip of the mineralised zones.
Moisture Whether the tonnages are estimated on a dry basis or Tonnage was calculated on a dry basis.
with natural moisture, and the method of determination
of the moisture content.
Cut-off parameters The basis of the adopted cut-off grade(s) or quality A cut-off of 16% Fe and a maximum depth of between
parameters applied 250m and 100m depending upon dip and the number of
mineralised zones was applied.
Mining factors or Assumptions made regarding possible mining methods, A minimum mining unit of 50m x 50m x 5m aided in the
assumptions minimum mining dimensions and internal (or, if selection of block size. Approximate stripping ratios
applicable, external) mining dilution. It is always were calculated to inform the maximum depth
necessary as part of the process of determining constraint for the Mineral Resources.
Criteria Explanation Observations
reasonable prospects for eventual economic extraction
to consider potential mining methods, but the
assumptions made regarding mining methods and
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 factors The basis for assumptions or predictions regarding On the basis of preliminary test work, The Mineral
or assumptions metallurgical amenability. It is always necessary as part Corporation has assumed that the Fe can be extracted
of the process of determining reasonable prospects for by means of comminution and magnetic separation to
eventual economic extraction to consider potential form a magnetite concentrate.
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 Assumptions made regarding possible waste and Environmental commitments made in the Mining Right
factors or process residue disposal options. It is always necessary do not materially change the economics of the Project,
assumptions as part of the process of determining reasonable and hence the reasonable prospects for eventual
prospects for eventual economic extraction to consider economic extraction.
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 The KIOL data included density measurements for all
for the assumptions. If determined, the method used, diamond core holes. No information was provided on
whether wet or dry, the frequency of the the methodology used to obtain these density data.
measurements, the nature, size and representativeness
of the samples. The diamond core data from FCL exploration included
density measurements obtained by the „water
immersion? method. A strong correlation between
density and Fe was observed, and used to estimate
block density after grade estimation.
The bulk density for bulk material must have been The density data from the FCL adequately accounted for
measured by methods that adequately account for void void spaces, and as the regression based on the KIOL
spaces (vugs, porosity, etc), moisture and differences data was almost identical to the regression based on the
between rock and alteration zones within the deposit. FCL data, it has been assumed that the KIOL method
also accounted for the same.
Discuss assumptions for bulk density estimates used in
the evaluation process of the different materials
Classification The basis for the classification of the Mineral Resources The borehole spacing, surface mapping, structural
into varying confidence categories. interpretation, variography and kriging error estimates
inform Mineral Resources which are classified as
Whether appropriate account has been taken of all Inferred, Indicated and Measured. In areas of well-
relevant factors (ie relative confidence in tonnage/grade defined geological structure and modest grade
estimations, reliability of input data, confidence in variability, the 100m x 100m grid is sufficient for
continuity of geology and metal values, quality, quantity Measured Mineral Resources.
and distribution of the data).
Whether the result appropriately reflects the Competent
Person?s view of the deposit.
Audits or reviews The results of any audits or reviews of Mineral Resource No audits have been undertaken as yet
estimates
Discussion of Where appropriate a statement of the relative accuracy Kriging Efficiency (KE) was used as a guide to Mineral
relative and/or confidence in the Mineral Resource estimate Resource classification. Regions of blocks where KE is
accuracy/confidence using an approach or procedure deemed appropriate by generally >0.5 are considered for the Measured
the Competent Person. For example, the application of category, while regions of blocks where KE >0.25 are
statistical or geostatistical procedures to quantify the considered for the Indicated category and regions with a
relative accuracy of the resource within stated KE<0.25 are considered for the Inferred category
confidence limits, or, if such an approach is not deemed (Mwasinga, 2001). The mean KE of classified as
appropriate, a qualitative discussion of the factors which Measured in this Mineral Resource estimate is 0.47 and
could affect the relative accuracy and confidence of the those classified as Indicated is 0.26.
estimate.
The statement should specify whether it relates to The estimates are local estimates. Blocks are
global or local estimates, and, if local, state the relevant categorized as Measured, Indicated or Inferred, and
tonnages or volumes, which should be relevant to their use in technical or economic evaluation should be
technical and economic evaluation. Documentation determined by the relevant code.
should include assumptions made and the procedures
used.
These statements of relative accuracy and confidence of No production data is available.
the estimate should be compared with production data,
where available
29 April 2014
Sponsor
Sasfin Capital
(a division of Sasfin Bank Limited)
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